CCR Update

Rogers Cable unveils plans for VODRogers Cable Inc. unveiled plans for a video-on-demand (VOD) service that it anticipates rolling out commercially this June. In the meantime, it is testing the service with 50 households in Toronto, and plans to expand the trial to 1,000 employees and customers. At a news conference Feb. 19, Rogers Cable president and chief executive John Tory said VOD should help drive digital television in Canada. Shaw Cablesystems is also testing VOD in Calgary, and is targeting a commercial rollout by year-end. Cogeco Cable Inc. is believed to have begun field trials of its VOD service, run in conjunction with solutions provider Atlanta-based Concurrent Computer Corp. Cogeco is targeting the summer of 2002 to have the service available on a wider basis. For more information, see the upcoming edition of CCR. More details. CAB appearance before Heritage committee delayedThe Canadian Association of Broadcasters' (CAB) appearance before the House of Commons Standing Committee on Canadian Heritage, originally set for Feb. 21, has been delayed. The CAB appearance is expected to be rescheduled to March 21. More details. Star Choice to charge for extra receiversStar Choice Communications Inc. has told customers that effective March 1, it will begin charging $4.99/month for additional receivers in a household. In a letter mailed to subscribers dated Feb. 5, the company says: "The nominal fee is intended to reflect the real costs of providing service to multiple receivers." Some upset customers are calling the move negative-option marketing because they will be charged for extra receivers they have already paid for. It is estimated that the extra receiver fee will generate $12 million a year for Star Choice from its existing 700,000-plus customers. Star Choice says its new Multi-Receiver Plan will give customers a lifetime receiver warranty and a special discount of $1 off the first 12 pay-per-view movies or special events purchased before Sept. 1, 2002. But receivers already come with a manufacturer's warranty of a year or two. Star Choice states that customers can avoid the $4.99 charge for additional receivers if they subscribe to the Ultimate Choice Plus programming package, which costs $74.99 a month. Star Choice's rival, Bell ExpressVu LP, is requiring all new customers to pay at least $20 a month on programming, excluding pay-per-view channels and administration fees, according to sources. That amount is double what existing basic customers are paying. Newspaper guild calls on CanWest to stop national editorialsThe Newspaper Guild/CWA is calling on CanWest Global Communications Corp. to halt its national editorial policy, and to provide "full and accurate news coverage". The organization says 200 delegates representing more than 36,000 newspaper and other media workers voted unanimously last weekend to demand that CanWest ensure that each of the newspapers it owns retain full autonomy in choice and formulation of its editorial opinions. More details. Telesat honoured at CSUA conferenceTelesat Canada was presented with the Canadian Satellite Users Association's Outstanding Service Award at the organization's conference on Feb. 18 in Toronto. For more coverage from the conference, see the upcoming edition of CCR. More details. Rogers, Shaw chase dial-up customers with Internet Lite… Rogers Cable Inc. and Shaw Communications Inc. have each unveiled an "Internet Lite" product, which offers speeds between its current rate and dial-up. The companies are looking at gaining subscribers who have been using dial-up. This is a different program than the two-tier system the cablecos are considering (CCR, Feb. 15/02). Rogers Cable launches new Internet Lite product Shaw Launches Lite-Speed Internet service …MTS goes after dial-up customers tooLike Rogers and Shaw, Manitoba Telecom Services Inc. is going after dial-up Internet customers. On Feb. 20, MTS launched a $24.94 monthly plan that gives dial-up customers unlimited access to DSL Internet under a plan called the DSL Starter plan. It employs the same technology as DSL high-speed and is five times faster than dial-up, according to MTS. More details. BCE, Telesystem announce increased stakes in LookBCE Inc. now holds 34 per cent of the shares in wireless cable company Look Communications Inc. Telesystem Ltd. now holds directly and through its subsidiary, Telesystem Financial Corporation, shares representing approximately 39 per cent of the issued and outstanding common equity of Look. The wireless cableco has been undergoing reorganization for several months, and last week relaunched its sales and marketing activities (CCR, Feb. 15/02). As part of an August 2001 arrangement between Telesystem, BCE, and Look, BCE and Telesystem agreed to vote, or refrain from voting, their shares in Look in accordance with the recommendations of Look's management and that for a period of two years, neither they nor their affiliates would grant any further financial assistance to Look nor acquire any additional equity interest in or assets of Look. BCE Announces Revised Position in Look Telesystem announces revised interest increase in Look INTERNATIONAL NEWS Federal court strikes down FCC rule on cross-ownershipA U.S. federal appeals court has struck down long-standing Federal Communications Commission rules that prohibit one company from owning television stations and cable franchises in the same market. Experts believe the ruling could pave the way for more mergers in the communications and broadcast field. U.S. DC Circuit Court of Appeals Limits on Media Ownership Voided DOJ Vows to Police Cable Competition NAB, NCTA Agree on Ownership Issue MGM goes online with its video-on-demand serviceMetro-Goldwyn-Mayer on Feb. 20 became the first major Hollywood studio to launch a video-on-demand service over the Internet. In conjunction with CinemaNow, MGM will offer downloadable movies online. It will test the service with the films "The Man in the Iron Mask" and "What's the Worst that Could Happen?" On a PC Near You--Downloadable Films MGM movies, straight to your PC or TV FCC proposes new rules for filing informal complaintsThe Federal Communications Commission has proposed new rules that will make it easier for consumers to file informal complaints. Uniform system for filing informal complaints proposed Separate Statement of Commissioner Kathleen Abernathy Separate Statement of Commissioner Michael J. Copps FCC proposes DSL be considered an information serviceThe Federal Communications Commission has proposed that DSL be considered an information service. Classifying DSL in such a manner would mean that DSL providers would not have to open up their networks to competing ISP providers. How the U.S. regulator should classify Internet access remains a contentious, unresolved issue (CCR Update, Feb. 6/02). FCC might limit DSL-provider access FCC broadband plan meets resistanceThe Federal Communications Commission has said it will change rules to encourage private companies to invest in the rollout of broadband. Some consumer groups, such as the Center for Digital Democracy, say the government should not let monopolistic companies control the rollout of high-speed Internet. FCC Launches proceeding to promote widespread deployment of high-speed broadband Internet access services Consumer advocates blast broadband plan

CCR Update

Broadcast | February 20, 2002

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