Internal CBC report reveals strategy for ending over-the-air transmissions

The Canadian Broadcasting Corp is considering satellite distribution as an alternative to over-the-air transmission, according to an internal task force studying the sell-off of the company's broadcast infrastructure. A document prepared by the task force, and obtained by CCR, reveals that the CBC's cost-cutting options include partnering with other broadcasters and maintaining analog transmission while distributing digital signals without any over-the-air transmission. It says the public broadcaster is also working with information technology companies on "convergence" at the distribution level. Appearing last month before a Parliamentary committee, CBC president Robert Rabinovitch confirmed that privatizing the corporation's massive transmission system is being seriously considered as a way to cut costs, and minimize the costly transition to digital television (CCR, May 25/00). Written in late April, the task force document outlines some critical steps the CBC is contemplating to swap out its over the air transmission of TV and radio signals. It notes that the task force has already been briefed by cableco and DBS company representatives. It has signed a non-disclosure agreement with at least one DBS company after receiving a broad service proposal. The CBC has held discussions with both StarChoice Communications Inc and Bell ExpressVu on the possibility of using direct broadcast satellites (DBS) to replace broadcast towers, particularly in more remote and northern areas. None of the parties involved in the discussions would comment on the negotiations, but the CBC document says the corporation is considering ending all free over-the-air transmissions. The task force's members were out of the country last week and unavailable for comment. However, Rabinovitch assured the House of Commons Standing Committee on Canadian Heritage May 16 that Canadians who currently rely on antennas to receive CBC's signal will not be cut off. A new company that may be interested in purchasing the CBC's tower system is Canadian Tower Ltd, which is minority-owned by American Tower Ltd, Boston MA. The Canadian affiliate is majority-owned by Montreal-based Telemedia Inc. When contacted, Telemedia had no comment on its possible role in the future of the CBC's transmission system. Owning CBC's network would mean bolstering Canadian Tower holdings from a current 20 towers to 550. According to the report, briefings have been held on the restructuring of the transmission and distribution system. The task force also reached a decision to "start preparing the DBS RFP immediately." The RFP was to have been issued in May. The value of the existing transmitting facilities has been assessed, and the CBC is exploring the possibilities of selling, leasing or outsourcing transmission facilities. The task force plans more discussions with satellite operators. Four sub-groups have been created to study: Service/system requirements Technical parameters and options Business considerations Non-technical issues. The task force will also consider the implications of partnering with other broadcasters, and of "not transmitting free (over-the-air); (and) not making digital available free." Rabinovitch has said that the future of the CBC's transmission system could be decided by the fall.

Internal CBC report reveals strategy for ending over-the-air transmissions

Broadcast | June 8, 2000

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