CBC union will challenge plans for the privatization of tower network

Canada’s public broadcaster faces stiff opposition to the proposed sale of its vast and expansive over-the-air network, as unionized workers vow to block any sale of transmission towers. The Canadian Broadcasting Corp’s infrastructure workers oppose the sale of the more than 500 towers to private interests, warning that labour relations between the corporation and the Communications, Energy and Paperworkers Union of Canada (CEP) will become severely strained if the sale goes through. Union official Mike Sullivan described the plan as the "stupidest move they’ve ever made." CEP president Gail Lem says the sale would result in layoffs and "the downgrading of the workplace." The CBC is currently being courted by several parties which are interested in purchasing the vast tower network. Officials began meeting with potential buyers earlier this year, after CBC president Robert Rabinovitch revealed to the House of Commons Heritage Committee of his plan to sell transmitters and real estate and spend the proceeds on programming (CCR, March 30/00). Rabinovitch said the CBC should concentrate on its role as a public broadcaster, and divest itself of its huge network of hardware and some of its two million square metres of building space. The corporation has already subcontracted about 50 per cent of its distribution activities, but still owns most of the infrastructure. While the identities of the prospective buyers are still unclear, a likely candidate is the recently formed Canadian Tower LP, a joint venture between Boston-based American Tower Corp and the de Gaspé Beaubien family’s Telemedia Corp (RoW, May 1/00). It began operations earlier this year with more than 20 towers in five urban centres that were made available by Telemedia Radio Inc, a subsidiary of Telemedia. The new company plans to acquire and develop additional towers in major urban regions across the country, but hasn’t divulged how many towers it plans to acquire in the near future. The company did reveal, however, that it hopes to own several major clusters of towers by filling its national footprint through both large and small acquisitions. Ian Morrison, spokesperson for the Friends of Canadian Broadcasting, says his group also opposes the tower sale. "One reason, we think, that BCE was so interested in CTV that has never been published, is the towers. In the digital environment, towers are like lights that illuminate the populated parts of the country, and you can pump a whole lot of stuff through them, other than television signals," he says. Morrison says the deal won’t be a good one for Canadian taxpayers and the CBC unless the buyers are willing to accept several conditions, including a promise to keep the system intact. "It’s really a question of the price. If they can get enough money and sufficient safeguards to ensure that, five years later, some tower in northern Newfoundland won’t just be allowed to fall down, then maybe it will work. "We’re afraid, though, that they might be giving away the crown jewels. They’re sort of like program rights. They’re one of the legs of the stool, and we’re skeptical about it. We’re also skeptical about the delivery of CBC signals by new technologies such as satellite, because they leave out about 25 per cent of Canadians who can’t get them," Morrison says. It’s doubtful, however, that the critics will be able to scuttle an infrastructure sale, particularly if the savings go into programming. It’s a trend that has already taken hold in other countries. In Britain, ITV has contracted out its entire transmission system, and in the U.S., most broadcasters have sold off their towers and transmission systems.

CBC union will challenge plans for the privatization of tower network

News | 08/21/2000 4:00 am EDT

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