CCR Update

Standing Committee hearings on broadcasting to resumeThe Standing Committee on Canadian Heritage examining the broadcasting system is set to resume hearings on January 31. The Canadian Association of Internet Providers (CAIP), Digital Radio Roll-out, U8TV, and AOL Canada are scheduled to appear before the committee on that date (CCR, Nov. 22/01 and CCR, Nov. 9/01). A more detailed review of the committee's progress will be covered in the upcoming issue of CCR. 492 cablecos qualify for exemption: CCTAThe Canadian Cable Television Association (CCTA) on January 15 submitted to the CRTC a list of 492 small cable systems that it says qualify for exemption under the commission's exemption ruling announced last year - Public Notice 2001-59 (CCR, June 7/01). The list includes 63 small cable systems owned by Rogers Cable Inc., 62 owned by Shaw Cablesystems, and 53 owned by Cogeco Cable Inc. The CCTA compiled the list of its member companies that qualify at the request of the CRTC. Regional Cablesystems is not a member of the CCTA. Look expects to move forward with restructuring plan next monthLook Communications Inc. announced that it was moving ahead with its new business plan on February 11. "Although our target was to emerge from CCAA towards the end of January, we have decided to take the extra time to ensure a smooth implementation. Our new services initiatives are all proceeding according to our critical path and we look forward to re-launching our sales and marketing activities," says Paul Lamontagne, president and COO of Look, in a news release. More details Digital subs increase marginally at CogecoCogeco Cable Inc.'s digital cable customer base rose to 109,217 at Nov. 30, 2001 from 96,249 at Aug. 31, 2001, according to Q1 2002 financial results released by the cable operator on January 14. Some 75,323 of the digital customers were in Ontario and 33,894 were in Quebec. Cogeco states that it's on track to reach its target of adding 25,000 digital terminals and 40,000 high-speed Internet users by the end of fiscal 2002 (Aug. 31, 2002). More details BCE registering strong subscriber growth: MontyChair and CEO Jean Monty attributes growth at BCE Inc. to strong subscriber additions as the company on January 23 reported EBITDA for the 2001 fourth quarter of $1.9 billion. BCE's satellite TV unit, Bell ExpressVu LP, had a record-breaking quarter for net subscriber activations, adding 139,000 subscribers. It ended the year with 1,069,000 subscribers. "The company's growth was led by strong subscriber additions in our key drivers - wireless, high-speed Internet and satellite television. More than 2 million customer connections were added last year - a 10% growth overall," Monty states in a news release. Telesat Canada, a wholly owned subsidiary of BCE, announced unconsolidated net earnings of $10.6 million in the fourth quarter, down $4.8 million from the previous fourth quarter due to higher tax expense. BCE Inc. Consolidated Financial Statements BCE Reports Fourth Quarter Results Telesat reports year end results for 2001 Astral announces stock split in strong quarterAstral Media Inc. realized a one-time pre-tax gain in the first quarter ended Nov. 30, 2001 of $17 million from the sale of its 14.95% stake in The Comedy Network to Corus Entertainment Inc., according to financials released January 23. Net earnings for the quarter increased to $22.8 million from $4.2 million in the same quarter a year earlier. Its television division pulled in the most revenue - about $78.98 million - compared with $12.58 million from radio and $8.89 million from outdoor advertising. The company announced its first stock split. Subject to regulatory and shareholders' approvals, the stock split could be completed in April 2002. More details CanWest reports cost and revenue benefits from convergenceLeonard Asper, CanWest Global Communications Corp.'s president and CEO, said the company was negatively affected by a weaker economy and the events of September 11 in reporting financials for the three months ended Nov. 30, 2001. Nonetheless, the company announced January 22 that combined television operating profits were up 7% compared to the pro forma result last year. Operating profit at Global Television was flat, but profit at its Australian-based Network TEN increased by 12% to $28 million. "At the same time the tremendous progress we have achieved in capturing cost and revenue benefits from convergence and cross-media integration have helped to mitigate the adverse effects of the economic downturn on the company," Asper said in a media release. More details CHUM's Learning and Skills Television of Alberta acquires the Learning AnnexLearning and Skills Television of Alberta, which is majority-owned by CHUM Ltd., has acquired The Learning Annex of Canada, a continuing education school offering courses ranging from personal growth to real estate. Learning and Skills Television of Alberta owns ACCESS: The Education Station and Canadian Learning Television. More details CHUM inks China dealCHUM Television International announced January 18 that it is working with Singapore-based RTV Broadband Services to develop a multimedia broadband channel for China. CHUM will supply format and content that its produces to the partnership. More details SaskTel to deliver interactive digital TV with iMagicTV softwareSaskTel will deploy interactive digital television services to customers this year, following a successful trial of its digital TV service involving 80 of its employees in Regina (CCR, Dec. 19/01). The telco will use iMagicTV's DTV Manager software platform. SaskTel to use iMagicTV's Platform INTERNATIONAL NEWS Supreme Court rules FCC can set rates for Internet linesThe U.S. Supreme Court on January 16 ruled that the Federal Communications Commission (FCC) has the authority to set the rate cablecos pay to string lines on utility poles to provide high-speed Internet. The Supreme Court reversed a federal appeals panel in deciding that high-speed Internet access lines are subject to federal regulations. The ruling also applies to cellular telephone companies. The FCC already has the power to regulate rates for pole access for cable lines. In Canada, the cable industry is seeking permission from the Supreme Court of Canada to appeal a Federal Court of Appeal decision that ruled the CRTC did not have the authority to regulate rates for cable access to poles controlled by provincial or municipal authorities (CCR, Oct. 26/01). A decision is not expected from the Supreme Court for at least two months. Supreme Court ruling FCC reports satellite TV expanding faster than cableThe Federal Communications Commission's annual report on the status of competition in the U.S. broadcast distribution industry reveals that satellite television is growing faster than cable. SkyReport reports that in its eighth annual report sent to Congress, the FCC notes that satellite TV grew from almost 13 million households to 16 million households in the period between June 2000 and June 2001. The number of people subscribing to cable rose from 67.7 million to 69 million during the same period. According to the report, which has yet to be publicly released, cablecos are increasing their prices at rates higher than inflation. The FCC also notes that the competition is forcing cablecos to respond by adding channels without raising monthly rates and to reconsider their pricing options. More details FCC reorganizes in bid for greater efficiencyMedia, Wireline Competition, and Consumer and Government Affairs bureaus are being created at the Federal Communications Commission (FCC) as part of a reorganization. The new Media bureau will be responsible for policy and licensing programs for media, including cable television, broadcast television, and radio. As well, the FCC's international bureau was realigned. The reorganization is aimed at making the regulator "more effective, efficient and responsive." The labour union has approved the reorganization, but the changes are subject to Congressional notification before coming into effect. More details U.K. leads Europe's transition to digital: Strategy AnalyticsAbout 37% of households in the United Kingdom had digital TV at the end of last year, compared to a European average of 16.3%, according to recent research by Strategy Analytics. The U.K. success in converting to digital is attributed to intense competition between operators in the territory. The firm predicts that Germany, with only 8.2% of households currently watching digital TV, will be a laggard in advanced television services. More details Broadcasters want to revive talks on digital carriageA group of U.S. broadcasters is attempting to get the Federal Communications Commission to revisit the dual carriage issue. The broadcasters want the regulator to take another look at the industry's attempt to win carriage rights for both analog and digital during the transition to digital television, according to Multichannel News. The broadcasters argue that last year's FCC decision that only a station's primary signal, either analog or digital, was entitled to carriage is based on out-of-date information. More details

CCR Update

Broadcast | January 23, 2002

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