Canada diverges from US in transition to digital television

Canada will not follow the US lead in converting all over-the-air television stations to digital. The CRTC stated Monday that only major markets, including capital cities, will be mandated to do the switch by August 31, 2011, leaving smaller markets to consider alternative delivery mechanisms. Broadcasters have long complained that the cost of converting analog transmitters to digital is unwarranted given the small number of Canadians who receive their television signals on OTA. Only one in 10 Canadians get access to TV via OTA. A recent CRTC-commissioned report put the cost of digitizing analog transmitters at slightly more than $424 million. The commission appears to share that concern, saying it will only require the national capital and all provincial and territorial capital cities, as well as markets served by at least two stations (including CBC stations) or with populations greater than 300,000 to switch to digital. (see list below) “The Commission encourages broadcasters to convert all of their full-power analog transmitters to digital in all markets and to take advantage of multiplexing opportunities — multiple broadcasters sharing one digital transmitter to deliver programming services — as a means of reducing or delaying the infrastructure investments related to the digital transition,” the CRTC writes in Broadcasting Notice of Consultation 2009-411. CRTC chair Konrad von Finckenstein first suggested in May that a hybrid solution could be a cost-effective alternative to converting every analog transmitter to digital. “A hybrid solution which would entail over-the-air digital signals in standard definition in major centres and access by way of cable and satellite in non-metropolitan centres, appears to be the answer. However, certain details still need to be worked out, including access, cost and entitlement,” he told the Standing Committee on Canadian Heritage. Those details will be worked out as part of a public hearing to begin Sept. 29. The deadline for written interventions is Aug. 10. Among the questions the CRTC is posing: a) Is the commission’s preliminary list of markets mandated to convert to digital complete or should further stations be added to this list? b) What system should be put in place to allow existing OTA viewers with analog television sets to receive the new digital television signals? c) Where a conventional television station does not implement a digital OTA transmitter but provides its signal to BDUs via direct feed, how should its regulatory obligations and privileges, such as simultaneous substitution and mandatory carriage, be determined? d) Under what circumstances might some conventional television services not be required to convert to digital OTA transmission? For smaller stations that can’t afford converting to digital, the CRTC says there are other options, including multiplexing standard definition OTA signals to extend coverage and direct feeds to cable and satellite distributors. Bell Canada and Shaw Communications Inc. have also proposed a free satellite-delivered tier, which would provide viewers in small markets with at least five local and regionally relevant standard definition signals – at no monthly charge. This option could become even more widely available if Telus, which this month began reselling Bell TV under the Telus brand in BC and Alberta, followed suit with a similar free offering. Who pays for the cost to digital could become a sticking point in future consultations with the regulator. The CRTC says consumers shouldn’t be on the hook for digital broadcasts, but considering the fragile financial state of Canadian broadcasters these days, it’s doubtful even larger broadcasters will be able to foot the whole bill without some funding assistance. Markets required to convert to digital broadcasting British Columbia: Vancouver, Victoria Alberta: Calgary, Edmonton, Lethbridge Saskatchewan: Regina, Saskatoon Manitoba: Winnipeg Ontario: Toronto*, London, Windsor, Kitchener Quebec: Montréal, Québec, Trois-Rivières, Sherbrooke, Rivière-du-Loup, Saguenay New Brunswick: Saint John, Moncton, Fredericton Nova Scotia: Halifax Prince Edward Island: Charlottetown Newfoundland and Labrador: St. John’s Yukon: Whitehorse Northwest Territories: Yellowknife Nunavut: Iqaluit National Capital Region (Ottawa-Gatineau) *Barrie and Hamilton are included in the Toronto market since their stations compete in the Toronto market.

Canada diverges from US in transition to digital television

Broadcast | July 8, 2009

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