Don’t regulate mobile broadcasting undertakings: CWTA

Canada's wireless industry lobby group says the CRTC shouldn't regulate mobile TV broadcasting undertakings because the services are still evolving and it's only been two years since the commission exempted them from regulation.The Canadian Wireless Telecommunications Association tells the CRTC in its comments to the new media proceeding that there is no evidence to suggest that mobile broadcasting services have or will become substitutes for conventional broadcasting. "Nor is there evidence that these services impede the ability of traditional broadcasters to fulfill their obligations under the Act. CWTA submits that new regulations could be potentially harmful to a fragile industry that is in its infancy," writes the wireless association.Mobile TV services have only been offered in Canada for about three years after the big three cellcos debuted their services in 2005. CWTA says imposing any regulations on this early-stage product will only serve to stunt its potential growth."Mobile new media services represent a new and developing market that continues to evolve and adapt to a host of variables including handset availability and features; network capabilities; and consumer demands and their willingness to pay," the wireless lobby writes. "Regulatory flexibility is required to ensure that development can continue and that wireless carriers can justify their ongoing investment in these nascent services."Some content rights groups have argued that ISPs, and hence wireless providers, are essentially broadcast distribution undertakings (BDUs) and therefore should have to pay to support the development of Canadian content.For example, in its comments to the CRTC, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) says the exemption orders governing streaming programs from Canada through the Internet or to mobile devices should be rescinded and replaced with licensing requirements and rules equivalent to other programming undertakings.ACTRA also wants wireless ervice providers to pay a levy of 0.6% on their gross revenues - or about $8 million annually to an arms-length new media fund. This would be in addition to a 3% levy generating about $99 million a year from ISPs.The service providers have widely panned such proposals."At this early stage many services are operated at a loss and it is still too early to understand how this market will evolve," CWTA writes. "Some services will flourish while others will fail to survive. Imposing any sort of levy on these services or regulating this market at this time will serve only to increase the risk and act as a disincentive for investment rather than an encouragement."Concerns about mobile TV were raised by the Canadian Association of Broadcasters in 2005 when the broadcast lobby asked the CRTC to determine whether mobile TV services that were being introduced at the time fell under the 1999 New Media Exemption Order (NMEO). After soliciting comments from the carriers and other interested stakeholders, the commission ruled on April 12, 2006 that mobile TV services did in fact fall under the NMEO because the services were delivered over the Internet. The commission initiated a secondary proceeding to study those services not delivered over the Internet, namely those offered by Look Communications. In February 2007, the CRTC exempted the mobile TV services offered by Look and created the exemption for mobile television broadcasting undertakings.

Don’t regulate mobile broadcasting undertakings: CWTA

News | December 8, 2008

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