OTTAWA – If the CRTC allowed BDUs such as Telus to carry the Canadian satellite radio services, it could “fundamentally” change the sat rad business plans, the Canadian Association of Broadcasters says in a submission.
In commenting on Telus’ proposal to air either or both of XM and Sirius Canada on its digital cable services in British Columbia, Alberta, and Quebec, the CAB noted that the commission had originally licensed the satellite radio services to be carried via satellite directly to consumers. “BDU distribution was not contemplated in the applications and the Commission, in licensing these services, imposed obligations on the licensees of the satellite radio services that were based on the nature of the delivery technology and the detailed business plans proposed by the applicants,” the submission stated. As such, the sat rad services were given different conditions of licence than over-the-air radio stations.
If Telus and other BDUs are allowed to carry satellite radio, these services “could access hundreds of thousands if not millions of new subscribers,” which “could have a significant impact on their respective business plans,” the CAB said.
While it stated it does not oppose the Telus proposal, the CAB does want to ensure that the carriage would meet the Broadcasting Act, which calls for a preponderance of Canadian services. Since it could carry up to 90 non-Canadian and 10 Canadian satellite services, Telus should be required to add more Canadian audio services, including commercial radio stations, Canadian pay audio services, and Canadian specialty radio services, the association argued.
BDUs can’t argue there’s a lack of capacity to carry more Canadian audio services, the CAB states. “The Commission recently lifted the regulation requiring the analog carriage of commercial radio stations, giving cable companies a large capacity windfall.”
The commission should increase regulatory obligations on sat rad services as their distribution increases, the CAB recommended in its submission.
The CAB used the Telus proposal as another example of growing competition to traditional radio, and repeated its call made at this spring’s CRTC radio review to be given greater regulatory flexibility to compete with other audio services.
The CAB has made the same comments about similar proposals from other BDUs to carry satellite radio networks.
