OTTAWA PREPARING TO ASK CRTC TO RESCIND SATELLITE RADIO LICENCES: SOURCES Sylvain Larocque - Canadian Press The federal government is ready to ask the CRTC to rescind its decision to licence satellite radio, government sources have told The Canadian Press.
"Everything suggests that the cabinet will ask the CRTC to overturn its decision," an official close to the file said in an interview on Friday.
On June 16, the broadcast regulator granted the first satellite radio licences to Sirius - a consortium of Radio-Canada and Standard Radio - and a company called Canadian Satellite Radio (CSR).
The two companies plan to offer subscribers between 60 and 100 commercial-free music channels for $15 to $20 a month. The services will be transmitted by American satellites across North America.
The Canadian Radio-television and Telecommunications Commission also allowed CHUM and Astral to deliver pay radio. That programming would be distributed via a ground-based digital network. But the companies hope the service will migrate to satellite after 2010.
The decisions upset many in the Quebec artistic community, which complained that only 10 per cent of the future 200-channel satellite service will be Canadian, and just 2.5 per cent will be francophone.
Under the rules laid out by the CRTC, each group must provide at least eight Canadian channels, two of them in French. Both companies have decided, however, to offer three channels in French.
They could carry nine foreign channels for every Canadian one they deliver.
CHUM and Astral are also unhappy with the CRTC's initial decision. They fear the new competition from Sirius and CSR could harm their conventional radio stations.
As cabinet met in Winnipeg on Friday, Canadian Satellite Radio lobbyists tried to persuade ministers not to send the issue back to the CRTC for reconsideration.
The Canadian businessman who owns CSR, a partner of U.S.-based XM Satellite Radio, was upset by the apparent willingness of the cabinet to intervene.
"This is just absolutely shocking," John Bitove said.
If the decision is revoked, Bitove estimates it could cost the Canadian economy $2 billion over the next 10 years.
"I think if it's true, there will be huge repercussions."
Bitove said he believes the opposition stems mainly from discontent over the number of French-language stations.
"So far, from what I understand, that's really the only issue that's been brought up - that three French channels is not enough," he said.
If the ruling is rescinded, CSR will consider any legal options it may need to pursue the matter in federal court, Bitove said.
"There are hundreds of thousands of Canadian consumers who want to purchase this product - either at a retailer or in a new car - who are going to pay the price if this is the decision," he said.
Joining the voices in support of satellite radio is electronics chain store The Source - formerly Radio Shack - which purchased advertising in several newspapers. The chain hopes to sell many satellite radio receivers for Christmas, a plan that would be undermined if cabinet intervenes.
The government has until Sept. 14 to announce its decision whether it will ask that the licences be revoked.
In the weeks that followed the CRTC decision, federal observers feared the issue would prompt a battle between Quebec and Ontario. But several Liberal MPs from Quebec, Ontario and the Maritimes all pressured cabinet ministers to force the CRTC to rescind its decision.
The Quebec caucus won support for its position from several artistic groups, including the Society of Composers, Authors and Music Publishers of Canada and l'Union des artistes.
The groups argue that the CRTC decision contradicts the principles and objectives of Canadian broadcasting policy.
They also want the CRTC to be forced to hold a public hearing on the issue to establish "an appropriate regulatory framework." |