Reliant on service, member association may seek help from government or CRTC
By Ahmad Hathout
TELEVISION SERVICE PROVIDERS in remote parts of the country may see a disruption in television services at the end of the year due to an American company’s decision to end support for technology that distributes satellite TV signals.
U.S.-based network technology provider CommScope said late last year it is ending support for the Quick Take Plus (QT+) system used by Shaw Communications, which relays satellite TV signals to Canadian customers living in certain areas of the country that may lack traditional wired infrastructure.
Jay Thomson, CEO of the Canadian Communication Systems Alliance, which represents smaller broadcast companies, told Cartt.ca Shaw notified its member companies of the situation last Friday. He said the organization is working with its members to figure out which of them are affected, in which communities and how many customers will be impacted.
“We understand that QT+ is a legacy platform with software and hardware components that are reaching the end of their serviceable life,” Chethan Lakshman, Shaw’s vice-president of external affairs, told Cartt.ca, adding the company was told about termination late last year*. “We explored whether any replacement solutions were available for our customers and considered options. Unfortunately, we have since determined that there are no viable technology replacements, and we are reaching out to cable companies to help them consider and explore options.
“While this was not the result of any decision by Shaw, our team has been in touch with impacted cable providers to work with them on a case-by-case basis and to explore potential options,” Lakshman added.
Television service can be delivered using satellites or fibre. But fibre builds are expensive and not always available in remote and rural parts of the country. The only other alternative, according to Thomson, is Bell’s own satellite service delivery, but he said the cost of transitioning to Bell “would be significant and likely therefore prohibitive for companies with perhaps only hundreds (or even fewer) subscribers over which to spread such costs.”
What’s more, Thomson said, is some companies reliant on the QT service have plowed “substantial amounts” to upgrade their services to deliver the signals to their customers, costs he said they are still trying to recover.
Right now, Thomson said he hopes to find a solution with Shaw, but he does not think his member companies should settle for Shaw’s direct-to-home service, also a satellite TV product, but one which Thomson said is inferior to the current set-up.
“Absent that, we may have to turn to the government and the CRTC for help,” he said.
In a statement to Cartt.ca, the CRTC said it is aware and is encouraging a resolution to the issue. The regulator “is monitoring the situation and encourages the parties involved to find a solution in order to ensure continued service for Canadians that may be affected,” the Thursday statement said.
Thomson also pointed to concern about the proposed deal by Rogers to acquire Shaw. Thomson has raised concern about the $26-billion purchase proposal, which was announced in March 2021, in front of the CRTC, which is examining the broadcasting competition component of the deal.
Thomson told Cartt.ca he is concerned about cost-cutting measures that may arise out of the consolidation, including Rogers potentially cutting Shaw’s satellite service and the QT service.
“This is not just an important business issue for our HITS-QT-reliant members (and their customers), but a fundamental broadcasting policy issue too,” Thomson said. “It is long-standing government and CRTC policy that Canadians should have equivalent access to broadcasting services wherever they live.
“So, if Shaw won’t fix this, it is incumbent on the government and CRTC to do so.”
*Correction: A previous version of this article included, in error, a specific date for when Shaw was told of the termination.
