CRTC releases regulatory framework for iTV services, but grey areas still remain

The CRTC has adopted a modified version of the United States’ WGN criteria to define what interactive television (iTV) content is program-related, but an executive at Pelmorex says there are still many grey areas. Paul Temple, senior VP of corporate development at Pelmorex – which started the CRTC process by applying for a licence amendment in 2001 that would make interactivity an integral part of it’s The Weather Network and MétéoMédia channels (CCR, July 4/01) – says the uncertainty centres not around the definition of what is program-related but rather defining what iTV content distributors must carry. In its November 4 decision, the CRTC ruled that it would not require the carriage of interactive services "that exceed the bandwidth normally assigned to programming services. Rather, broadcasters will be able to negotiate with BDUs (broadcast distribution undertakings) for the distribution of iTV content that would exceed such bandwidth." The commission notes that "it would be unreasonable to expose BDUs to potentially open-ended demands for capacity. Such demands could have the effect of stifling the development of iTV rather than encouraging experimentation and cooperation between BDUs and broadcasters." (Broadcasting Public Notice 2004-82). The regulator took this approach due to concerns "about the impact of imposing broad carriage obligations for iTV content on BDUs." The CRTC also determined that distributors will not have to provide return paths for iTV services, since parties other than BDUs can provide them. The commission says that return path access should be negotiated. Technologies used to incorporate iTV content in a broadcast can be either broadcast-based or transport-based. The main difference is the point at which the iTV content is introduced into the broadcast signal. With broadcast-based technologies, the iTV content is added into the broadcast signal, and with transport-based it is introduced at the head-end. The commission has determined that program-related iTV content that is broadcast-based cannot be altered or deleted by distributors provided that it "remains within the normal bandwidth or data rate for the signal, i.e. 6 MHz or its digital equivalent standard definition analog and digital signals, respectively, or a maximum data rate of 19.4 MBs for high-definition digital signals. "My understanding is it’s (the iTV content) not taking up more, then the distributor has to pass it through, but how do you measure what more is? The distributor could compress it a little more and use up less bandwidth," says Temple. "It’s not an easy thing to sort out. If I send you a digital signal, it’s a certain number of bits per second. So if I add data and you’re a distributor and you compress it and do all sorts of things to it, you match it up with other channels, and put it up on a transponder. So who knows whether it took more? It’s going through so many different processes and manipulations and compressions and uncompressions. I might say it didn’t take any more, but the distributor might say it took more. He adds, "In analog, it’s a little more straightforward…When you go to digital, it’s more complicated because, first of all, you are talking about speed. It’s a different measurement." The CRTC is also requiring distributors with installed platforms for iTV to provide a copy of all specifications of the set-top box, middleware, and any other equipment or facilities necessary to any programmers requesting it. If a distributor decides to change its technological requirements, then it must provide at least six months notice of the change. The commission also modified the WGN test in defining what iTV content is program-related (CCR, Nov. 7/02; March 13/03). To be program-related, first, the iTV content must be intended for viewing by those watching the main program, and not just by a general audience. An example would be biographic information about principal actors of the background to a story in the case of a drama. Second, the iTV content must be available during the same interval time as the video signal. In the case of programming that is not long-form, such as a news or weather service, the interval of time will be considered a typical wheel. "This interpretation would allow Pelmorex, for example, to make available (interactive) weather reports on the main video signal," notes the commission. Third, the iTV information must have a substantial connection to the main program being broadcast. Interactive advertising can only be offered during the commercial to which it is related, and not during the main program. Pelmorex has been involved in a long struggle with Bell ExpressVu over carriage of interactive weather enhancements. Pelmorex argues that the direct-to-home satellite TV distributor will not provide it with the means to offer an interactive weather service to complement its TV channels. Pelmorex complains that Bell ExpressVu is giving its own iTV weather application undue preference. Bell ExpressVu maintains that it needs to partner with Pelmorex because it needs some way to recoup the costs of building its iTV infrastructure. Following Pelmorex’s complaint, the CRTC ruled that Bell ExpressVu could not acquire any new customers to its interactive weather service until the CRTC’s iTV proceeding had been completed (CCR, April 8/04). Temple is unsure if this ruling will resolve the stalemate between Pelmorex and ExpressVu. "We’re talking but again it’s difficult until you really understand these rules. I guess the commission issuing a decision is going to help because there are principles. But it’s not crystal clear. It’s not like everyone is going to say, ‘I understand now. We just do this and that, and you get on with things.’ " Temple says the tough part will be figuring out how to interpret and implement the CRTC rules.

CRTC releases regulatory framework for iTV services, but grey areas still remain

News | 11/22/2004 5:00 am EST

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