CRTC takes first step in developing a new licensing regime for high-definition TV

One of the biggest broadcasting battles to hit the United States in recent memory will arrive in Canada this fall as the CRTC wades into the contentious and complex issue of deciding how over-the-air digital television should be licensed. Early this week, the commission released a proposed policy framework for the transition to digital broadcasting – or HDTV. It has given interested parties a lengthy period of 90 days to reply, which suggests the review will be broad. If the rollout of digital cable is any indication, the introduction of digital broadcasting that is received via an antenna will take several years before it becomes a reality. A 1997 task force examining the implementation of HDTV recommended that all markets should have access to the technology by the end of 2004 (CCR, Oct. 29/97). The CRTC doesn’t suggest a timeline, instead recommending "a voluntary transition model, i.e. one that would develop at a pace set by the marketplace rather than mandated, is the most appropriate approach for the Canadian broadcasting system." Analog transmissions would continue during the transitional phase. In contrast, U.S. law is allowing for a phase in of digital TV, but only until 2006. At that time, broadcasters will have to give back their analog channels to be auctioned off by the Federal Communications Commission. Even 2006 may be ambitious for Canada, although broadcasters here are preparing for the day. Several experimental DTV transmitters are up and running, and a Toronto lab is working with broadcasters to develop new interactive applications for this new form of broadcasting. In Public Notice 2001-62, the CRTC attempts to determine what policies and regulations will govern in the transition to this new digital era. One of the more contentious issues will be whether the must-carry rules will apply during the transitional phase. The commission doesn’t go so far as to say that mandatory carriage will be necessary, but it does suggest that broadcasters will likely need cable carriage and its large subscriber base to help pay for the high costs of migrating to digital. At the same time, the regulator recognizes that "not all distributors will have the necessary bandwidth in place in time to comply with equivalent priority carriage requirements for digital and analog signals." In such cases, exceptions may be granted. Extending simultaneous substitution rules – the bread and butter of the Canadian broadcasting industry – to digital TV services will be another difficult issue to resolve. The CRTC points out in its notice that there could be as many as three categories of digital programming signals for which substitution rights might be sought: the main digital signal, multicast digital signals carrying conventional program services, and multicast digital signals carrying services that were originally licensed as specialty services. On the programming side, the CRTC appears willing to offer some flexibility, but not at the expense of producers. Under the proposed new rules, broadcasters would be allowed to offer viewers up to 14 hours each week of programming that differs from that offered on their analog services. Of those 14 hours, 50 per cent must be Canadian, "to help the Canadian production industry switch to digital broadcast technology and compete in the global marketplace," the commission writes. The new regime could also open up opportunities for new players. The regulator suggests that if broadcasters don’t apply for the transitional licences, or if there is excess spectrum available, it may consider awarding licences to new entrants. Digital broadcasting offers better picture and sound quality than analog, but one of the big attractions for broadcasters is its ability to provide bandwidth for new revenue-generating services. The CRTC acknowledges that during times when an HDTV program isn’t being shown, broadcasters may be able to use the extra capacity for multicast program streams and data services. The deadline for the first stage of comments is Sept. 7 and reply comments are due Oct. 26.

CRTC takes first step in developing a new licensing regime for high-definition TV

News | 06/07/2001 4:00 am EDT

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