CRTC Will Reopen Network Carriage Fee Debate

Less than a year after rejecting the proposition, the Canadian Radio-television and Telecommunications Commission (CRTC) has decided to revisit a subscriber fee proposed by over-the-air television stations (OTAs) for the carriage of their signals by broadcaster distribution undertakings, such as cable and satellite. The OTAs, which include Global, CTV and City-TV, claimed that they need the subscriber fees to compete with specialty cable channels and the Internet which are able to charge monthly fees for access. In the original debate, cable and satellite carriers claimed it was unfair to bill customers for services which can be received freely over the air without charge, and raised concerns about the effect of a rate increase on subscriber retention. The opposition was apparently effective, and the CRTC rejected the OTA proposition on the basis that the broadcasters had not made a strong enough argument that they needed the additional money from the fees. However, following numerous requests to reopen the debate, the CRTC has agreed to reconsider the issue in April when fees charged by specialty channels will also be reviewed. For more information, visit: http://www.crtc.gc.ca/archive/ENG/Hearings/2007/n2007-10-3.htm Summary by: Sue Diaz