CRTC rules that mobile TV is an Internet service, falls under NMEO

A ruling from the CRTC that mobile TV services fall under the auspices of the 1999 New Media Exemption Order should constitute a boon to the provision of mobile television programming and other wireless data services to consumers. The head of the Canadian Wireless Telecommunications Association (CWTA) agrees that the decision (Broadcasting Decision 2006-47) should allow for the continued innovation of mobile wireless services for consumers. "I think it’s a good move ," he tells Report on Wireless, adding that without the regulatory shackles, mobile carriers will be able to offer innovative services to wireless subscribers. "We’re glad they recognized that their previous exemption for Internet-based services was appropriate," Barnes says. "I think it recognizes the competitive nature of the market and the fact that regulation here wouldn’t have helped." The issue rose to the foreground of broadcast regulations last year when the Canadian Association of Broadcasters (CAB) filed a letter with the CRTC asking for clarification as to whether or not mobile TV was a broadcasting service that requires wireless carriers to seek broadcast distribution undertaking (BDU) licences. Broadcasters were concerned that mobile TV would represent a competitive service to traditional TV. The CWTA, along with the mobile operators, maintained that mobile TV service was delivered over the Internet, meaning it falls under the guidelines set out in the New Media Exemption Order. The CAB and other broadcasting industry stakeholders responded noting that the use of the mobile carriers’ networks couldn’t be considered the same as using the Internet because their networks were "closed." The CRTC disagreed with this assessment, ruling that in fact mobile TV services are delivered over the Internet. In its decision, it notes that MobiTV sends TV signals via the Internet to each of the carriers and then users access a TV channel using an Internet browser on the handset. "In the commission’s view, this would not differ from how an ISP would usually provide its subscribers with Internet access," reads the decision. "The commission considers that the carriers’ wireless networks function only to establish a connection to the Internet, just as any ISP, be it a cable or digital subscriber line ISP, would connect subscribers to the Internet." Responding to concerns that mobile TV might compete directly with traditional broadcasting services, the CRTC says other factors will need to be considered before such a determination can be made. "Such factors include the cost of exhibition devices, the general appeal of the service offerings, customers’ willingness to pay, as well as PC and Internet access penetration rates," reads the decision. As well, the commission is convinced that mobile broadcasting services "are unlikely to compete significantly with traditional broadcasting services due to the limitations of the wireless technology deployed, the battery life and screen size of the handset, the poor image and audio quality and the type and range of programming choices offered by mobile broadcasters." In addition, the CRTC believes the markets for traditional and mobile TV services will differ for the time being. Barnes notes that broadcasters’ concerns over the competitive nature of mobile TV were exaggerated; broadcasters have nothing to worry about, he says. "From a business and market perspective, what we were really pointing out is that these services will actually be helpful to broadcasters because they will basically get another opportunity to attract viewers. People will be snacking on the mobile device for a minute or two, or three, but if they want to look at TV for a half-hour or 90 minutes, they’re going to go to a TV," he says. Look gets pass on mobile multimediaLook Communications Inc. was also successful in convincing the CRTC that its proposed mobile multimedia network carrying TV signals to devices in moving vehicles should be allowed. The commission noted in its decision that the company can offer this type of mobile TV service to subscribers under its existing BDU licence. "The commission considers that a service such as that proposed by Look would be authorized under Look’s existing licence as long as the service is in fact distributed using MDS technology and in the manner described by Look, and that all necessary certifications from the Department of Industry have been obtained," reads the decision. In a news release, Look highlighted its satisfaction with the CRTC’s decision. "Mobile multimedia is fast becoming a reality around the world. A number of services and trials are available or underway in Korea, Japan, England and the United States, all of which point to the growing consumer interest in this type of service," Look chair and CEO Gerald McGoey said in the release. "The CRTC framework provides the necessary tools to allow these services to be implemented in Canada."

CRTC rules that mobile TV is an Internet service, falls under NMEO

News | April 19, 2006

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