Star Choice files licence amendment on out-of-market television signals

Faced with a slew of recent requests by broadcasters for signal deletion, satellite TV operator Star Choice Television Network Inc. has filed a licence amendment with the CRTC that would allow it to distribute out-of-market television signals without having to perform simultaneous substitution – Broadcasting Public Notice 2002-71. In its application made public November 19, Star Choice agrees to all of the concessions made by satellite TV competitor Bell ExpressVu LP in a proposed agreement with the Canadian Association of Broadcasters (CAB) currently under consideration by the commission, with one major exception (CCR, Oct. 10/02). Star Choice tells the CRTC that it’s unwilling to stop distributing existing same network signals to subscribers in communities where it has agreed to add small market channels. The satellite TV operator argues that the removal of channels from subscribers as proposed would deny direct-to-home (DTH) subscribers in small communities the same breadth of television services available to viewers in urban areas. It also says that it would "create the perceptions that Canadian DTH services carries with it uncertainties about the scope and quality of service – undermining public confidence in Canadian DTH and further encouraging the development of black and grey market DTH." As well, it points out that the removal of signals in small markets would end up wasting national transponder space, undermining the policy objective of efficient delivery of programming using the most effective technologies available at reasonable cost. Star Choice contends that the CAB, in asking for the removal of some existing channels, is supporting the provision of a different scope of service for small communities than in larger ones. That’s inconsistent, Star Choice argues, with the policy and regulatory objectives spelled out in the 1995 Report on the Policy Review Panel: Direct-to-Home Satellite Broadcasting. Star Choice tells the CRTC that compensation and carriage negotiations with the CAB have resolved almost all issues, but that it has been forced to file its licence amendment application prior to getting the stamp of approval of the broadcast association. It states that it cannot continue negotiations as the CAB is attempting to force signal removal by having its members request program deletions. "Last month, the CAB unilaterally repudiated the agreement and instructed members to begin making deletion requests pursuant, in part, to a memorandum of understanding (MOU) between the CAB and Bell ExpressVu," Star Choice writes in its October 28 reply to questions from the CRTC. "This action was taken in order to bring pressure to bear on Star Choice to sign an MOU identical to that reached between the CAB and Bell. Until these proceedings (an examination of the MOU, and the process initiated by Public Notice 2002-57) are concluded, Star Choice takes the position that it is premature and inappropriate for the CAB to initiate requests from its members for country-wide voluminous program deletions which would be extremely disruptive and damaging to Star Choice’s service." The CAB filed a complaint on October 11 with the CRTC over Star Choice’s refusal to remove the requested signals. Star Choice tells the CRTC that it is committed to new carriage obligations that would cost it more than $100 million over 10 years. It has agreed to assume all costs of adding 12 additional small market services to their respective markets, including four on an "emergency basis." Star Choice also says it would accept as a commitment of licence the requirement that it grant "equitable carriage" to the signals of larger broadcast groups, and would devote the use of two transponders to the distribution of local and regional broadcasters not previously distributed. It has also agreed to the same financial compensation terms that Bell ExpressVu has reached with the CAB. Comments on Star Choice’s application are due by December 20. Star Choice has until January 17, 2003 to respond.

Star Choice files licence amendment on out-of-market television signals

News | 11/22/2002 5:00 am EST

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