Cable industry, SRDUs seek clarification on sourcing of U.S. signals for small cablecos

The cable industry and satellite relay distribution undertakings (SRDUs) are asking the CRTC to clarify whether small cable operators have won the right to source U.S. television signals from American satellite providers. In doing so, the two sides have apparently reopened a longstanding and controversial policy issue that has divided the commission and pitted cablecos against their satellite signal providers. The requests for clarity are contained in comments filed late last month with the CRTC on the proposed exemption order for Class 3 cable systems – PN 2001-59. The exemption order does not explicitly state whether exempt Class 3 cable systems can source U.S. network signals from U.S. satellite providers. Canada’s SRDU licensees – Bell ExpressVu LP and Canadian Satellite Communications Inc. (Cancom) – want the CRTC to explicitly state in a public notice accompanying the final exemption order that "the order does not permit licence exempt BDUs to receive U.S. 4 + 1 signals via satellite from SRDUs that are neither licensed nor exempted from the requirement to hold a licence under the Broadcasting Act." But the Canadian Cable Television Association (CCTA) is asking the CRTC to amend the lists of eligible satellite services "to reflect the fact that exempt cable systems will no longer be required to obtain certain signals from licensed ." Representatives from both the CCTA and the Canadian Cable Systems Alliance (CCSA) have told CCR that they interpret the CRTC order as giving exempt systems the right to access the U.S. signals from American companies (CCR, June 21/01). "An exemption order exempts you from regulation and then sets out conditions for the exemption. And the commission when it issued the exemption order ," says Bill Allen, the CCTA’s director of communications. "(The CRTC) briefed us and confirmed that the small systems under the exemption order can go directly to the U.S. suppliers. So, I would think anyone who says something different is trying to rewrite . They are trying to introduce something new." In its comments on the proposed exemption order, Cancom states that "if the exemption order were published without further clarification by the CRTC, Cancom is very concerned that licence exempt cable operators could act on the basis of incorrect information and enter into arrangements to obtain U.S. 4+1 signals from unlicensed, illegal SRDUs." If that were to occur, the integrity of the commission’s regulatory process would be eroded and there would be a detrimental impact on important broadcasting policy objectives, Cancom adds. Bell ExpressVu argues that a delay in clarifying the position will lead to the potential for "increased disruption and expense for some small cable operators, who will be forced to cancel agreements with foreign distribution undertakings and realign their signal sourcing." Both Cancom and Bell ExpressVu submit that the interpretation that U.S. signals can be accessed via U.S. satellite providers is "clearly incorrect and is contrary to law and sound public policy." The SRDUs argue that the only exemption order that has been issued on the matter is PN 2000-10, which explicitly states that it applies only to technology other than satellite. They also note that the part 2 and part 3 lists of eligible satellite services contain explicit statements to the effect that satellite-delivered conventional television and radio signals must be received from licensed SRDUs. They also argue that if there is a change in policy, SRDUs may have a tougher time financing signal delivery to remote and underserved areas of the country, which is partly subsidized by revenue from the provision of U.S. 4 + 1 signals. In its submission, Cancom notes that since Bell ExpressVu was licensed as a competing SRDU, the rates for SRDU signals have dropped substantially. Cancom says its rates are below 10 cents per channel per subscriber.

Cable industry, SRDUs seek clarification on sourcing of U.S. signals for small cablecos

Broadcast | September 13, 2001

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