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CABINET UPHOLDS SATELLITE RADIO LICENCES

Canadian Satellite and Sirius can start service by year-end – CRTC vows to get public's input on controversial decision

Canadian Press

Cabinet has upheld a decision by the CRTC to issue two new satellite radio licences after the applicants agreed to increased Canadian content and French-language service.

 

The Canadian Radio-television and Telecommunications Commission will hold hearings to get public input on the new commitments, which will be included as conditions of the licences, a senior government official said on condition of anonymity.

 

The government's decision means Sirius Canada and Canadian Satellite, affiliated with Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. respectively, can start service before year-end as planned.

 

"Our hope is to be in market before Christmas," Sirius Canada chief executive Kevin Shea said in an interview yesterday.

 

"The most important thing was to be there before Christmas, because it becomes such a novelty item in the buying season."

 

The issue has sparked fierce controversy because of the potential impact on existing radio broadcasters, and on the Canadian entertainment business.

 

The licences were first approved in June, but have been in limbo as cabinet debates whether to uphold the approvals.

 

Broadcasters such as CHUM Ltd. had lobbied to have the ruling reversed, saying satellite providers would have an unfair advantage because they don't have to offer as much Canadian programming as traditional companies.

 

Sirius and Canadian Satellite will have to provide 10 per cent Canadian content, compared with as much as 35 per cent for conventional broadcasters.

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