Lack of opposition from Shaw surprises TBayTel in bid to enter cable TV market

It's taken over three years, an amendment to the Broadcasting Act and an 11th hour change to their distribution system, but it finally looks as though the City of Thunder Bay will be getting into the cable TV business. Even TBayTel's nemesis, Shaw Communications Inc., isn't throwing up any major roadblocks.TBayTel regulatory analyst Robert Olenick says they were fully expecting Shaw to oppose its application, which is among the items being considered at a CRTC hearing today in Gatineau PQ.The two companies have been locked in heated battles on the telecom side for years, from Shaw gaining access to run wires on Thunder Bay Hydro poles to TBayTel's unsuccessful attempt to prevent Shaw from using its coaxial cable to compete with the telco in the local telephony market."I thought them being Shaw and us being TBayTel, we would see something," says Olenick. "Even in the context of our regulatory framework, when it was ruled out in the proceeding a few years ago, Shaw had put in their submission that they should be offering local telecom competition before we should be allowed into their area (cable TV)".TBayTel lost another important battle in April when the CRTC ruled the telco cannot reclaim some of its coaxial cable - currently used by Shaw to provide video and Internet services to customers in Thunder Bay - for its proposed cable TV service. Instead, Olenick says TBayTel will use "a bit more costly" DSL-based infrastructure.Canada's largest independent telco had originally applied for a BDU licence in 2005. It petitioned the Heritage and Industry ministers at the same time to change the Broadcasting Act so that municipally owned telcos could hold a BDU licence. It was finally amended in April 2007, clearing the way for TBayTel to apply.With everything now calm on the Shaw battlefront, TBayTel is hopeful the CRTC will rule in favour of its BDU licence, as well as a separate application for a video-on-demand service. If that happens, the company is prepared to offer service to residents in Thunder Bay and 21 surrounding communities by the end of the year, providing it with its first opportunity to bundle phone, Internet and TV services.Partnering with SaskTelTBayTel's BDU service will rely on SaskTel to transport video signals from its head end in Regina to Thunder Bay. The two companies are also developing a Digital Interactive Video (DIV)service that will offer full-motion NTSC and HD video signals. As well, customers will be able to use their television set to browse the Internet, and to send and receive email.

Lack of opposition from Shaw surprises TBayTel in bid to enter cable TV market

Broadcast | July 7, 2008

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