By Denis Carmel
GATINEAU –Toronto-based internet, TV, home phone, and home security service company VMedia is also an IPTV technology company.
As such, it recently launched new applications which are capable of distributing VMedia TV services on Roku, Apple TV and iOS, Amazon Fire TV Stick and Android TV devices, under its BDU licence, as Cartt.ca has reported.
In preparation to launch their new apps, which are also wholesaled to other ISPs, VMedia sought approval from programmers, whose channels would be delivered by the new apps. “All of those programmers, with the exception of Bell, approved the apps for launch within two weeks of the submission to them of the completed questionnaires, without imposing any conditions,” reads a VMedia Part 1 application to the CRTC which says Bell Media has breached “s.15(1) of the Television Broadcasting Regulations, s.11(1) of the Discretionary Services Regulations, and ss.5.e and .f of the Wholesale Code.” It originally asked for approval from Bell Media on April 29, 2020.
“Similar apps have been developed by incumbent BDUs, including Bell TV itself, and deployed to distribute licensed content to Canadians under the broadcasting framework,” reminds the VMedia application.
VMedia’s submission tells a story of delay by Bell Media, which first gave an oral approval but then rescinded that, adding new conditions, all of which hurt VMedia’s business as it had plans in place to launch and market these new apps earlier than it did. It eventually had to launch without Bell Media’s approval, carrying Bell Media channels.
Bell Media, reads the application, objected to the fact VMedia wholesaled the its IPTV platform to other ISPs so they can offer TV services. However, “Bell has been familiar with those arrangements throughout. This business accounts for approximately 5% of VMedia’s subscriber base,” says the VMedia document.
On a call with Bell executives in June, 51 days after initially asking for app approval, “Bell advised VMedia that it had completed the review of the app specifications, and that it was satisfied with them. However, Bell expressed its concern about the services VMedia provides through ISPs, specifically that their transmission platforms are not closed, managed networks, and therefore the Wholesale Distribution Model did not fall within VMedia’s BDU license.
“Bell said it would have further comments about those relationships, and that these concerns would be communicated at a later time by letter. In the meantime, Bell stated it was not approving the provision of VMediaTV services on the VMedia TV Apps to the Wholesale Customers,” reads the application.
The independent ISP and tech company, however, could wait no longer and believes it is on side of the regulations with this, especially since every other broadcaster approved the apps.
“VMedia has made strenuous efforts to comply with the requirements of its vertically integrated suppliers of telecom and programming services, and so it does not take the step of moving forward with the app launch lightly. However, VMedia is of the view that Bell has been acting in bad faith throughout the approval process, and seeks to forestall, or otherwise impair, VMedia’s ability to launch apps that are highly competitive in quality and cost to those offered by Bell, including its recently launched Virgin Mobile TV app,” reads the application.
It felt it had no other recourse but to seek the intervention of the CRTC, asking the Commission to tell Bell it has no reason to withhold approval while asking the Commission to protect it from Bell Media refusing to distribute its channels to be carried over the VMedia apps.
“VMedia is prepared to deal with a legal process, or with an adverse determination by the Commission in the course of this process, but it does fear being put out of business by a unilateral and arbitrary act by Bell. That is why VMedia is relying on Bell to strictly comply with s.15 (1) of the DSR and continue to provide services pending the resolution of the dispute set out in this application.”
Interested parties have until September 14 to intervene, including Bell who could accuse VMedia of distributing its signals without content.
It’s worth noting this complaint does not include VMedia’s RiverTV, which was launched in the spring and is an online platform operating under the Digital Media Exemption Order, which carries a number of Canadian TV channels from Corus Entertainment, Blue Ant Media, Wildbrain, Channel Zero, and a few foreign channels.
