Access drops request for exemption for Regina system; will negotiate with CAB

Canadian broadcasters have remained surprisingly quiet on Access Communications Co-operative Ltd.’s request for an exemption from having to perform simultaneous substitution on U.S. superstations. The Saskatchewan cable co-operative has applied for exemption for its Class 2 systems in Estevan, Weyburn, and Yorkton SK. It had initially also applied for an exemption for its Class 1 system in Regina, but has since dropped that request (CCR, Aug. 30/01). Rather than seek regulatory relief for the Regina system, Access appears poised to offer compensation to Canadian broadcasters – via the Canadian Association of Broadcasters (CAB) – in lieu of having to comply with the simultaneous substitution rules. Only one submission was filed in the PN 2001-94 process – that by the Canadian Cable Television Association (CCTA). The CAB may have decided not to file comments in favour of a negotiated agreement, but also because the CRTC is likely to rubber stamp Access’ request on the Class 2 systems. The official word from the broadcasters’ association is that it does not intervene in all processes, although individual members are free to respond. But Peter Miller, VP of planning and regulatory affairs at Chum Television Ltd., believes it’s important for the CAB as an industry association to represent broadcasters on such matters. "We didn’t file (comments) because we don’t have any local services that were affected," Miller explains. "…It’s an issue of principle and if an exception is made there, I’m sure that Rogers and others will apply for an exemption. Quite honestly, we look to the industry association to file on matters of principle like that. It’s unfortunate there wasn’t a broadcasters’ response." In letters to the CRTC last year, it was the CAB that asked for formal clarification on whether section 30 of the Broadcasting Distribution Regulations required Class 1 systems to carry out simultaneous substitution requests relating to programming on U.S. superstations. At that time, the CCTA contended that simultaneous substitution rules did not apply to U.S. superstations, because they did not fall under the definition of "station" since their signals were encrypted and a fee was paid by distributors to a third party for the right to distribute those services. In September 2000, the CRTC ruled that Class 1s and 2s had to carry out requests for simultaneous substitution related to programming on U.S. superstations, but that it was prepared to consider favorably applications for exemptions for Class 2s – PN 2000-132. Access notes in a Sept. 10 letter to the CRTC that it continues to believe that the cost of performing substitution is too high for its Class 2 systems. The cableco indicates in the letter that it dropped its request for exemption for its Regina system in favour of negotiating with the CAB. "Our objective in those negotiations will be to reach an agreement with the CAB’s members that would allow our Regina system to avoid the simultaneous substitution requirements set out in section 30 of the regulations," the letter states. In it submission to the CRTC, the CCTA concentrates on Access’ Yorkton system. In that market, Access distributes the signals of four U.S. superstations on a digital basis and two local stations in analog. The CCTA argues that if substitution were requested, it would cost Access $150,000 to substitute the signals, plus about another $25,000 for additional software and cherrypicker hardware. The equipment would be needed to digitize, compress and substitute the Canadian programs into the digital multiplex against the U.S. digital programs. The CCTA also notes that the digital subscriber base in Yorkton had reached only 338 by September 2001, representing just 7 per cent of the system’s total subscriber base. Moreover, the cable association adds that an examination of a week of programming revealed that there was not a single program offered by local broadcasters in the market that matched the programming on the superstations.

Access drops request for exemption for Regina system; will negotiate with CAB

News | 10/26/2001 4:00 am EDT

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