The Canadian Radio-Television and Telecommunications Commission (CRTC) has approved in part the application by DTH start-up FreeHD Canada to launch a free-to-air satellite television service across the country.
Founded by former president of Ciel…
The Canadian Radio-Television and Telecommunications Commission (CRTC) has approved in part the application by DTH start-up FreeHD Canada to launch a free-to-air satellite television service across the country.
Founded by former president of Ciel Satellite David Lewis, FreeHD is seeking to provide nationwide free and pay-TV DTH services. In its August 2009 application, the company proposed to offer two types of programming package. The first would be in the form of two large national packages of around 150 pay and speciality channels split between Anglophone and Francophone offerings, with each consisting of at least 90% Canadian-made programming. The second is a free local program package of 15-20 Canadian television channels to consumers who acquire the necessary reception equipment.
FreeHD points to the fact that in some areas, existing Canadian broadcasters are struggling to be ready in time for the August 2011 digital transition deadline. In its submission, FreeHD claims that its platform would solve distribution issues and capacity bottlenecks for the Canadian broadcast industry by providing much needed satellite capacity, adding that it would save conventional broadcasters the costs of upgrading their transmission facilities to digital and of maintaining transmitters in small market.
In its ruling, the CRTC agreed to FreeHD’s proposal for providing free conventional television signals to ensure continuity of service in those markets where broadcasters elect not to construct digital transmitters, but stopped short of backing FreeHD’s application outright.
It stated: “The Commission clearly supports, in principle, the offering of a package of local conventional television signals at no monthly charge to the viewers, and is predisposed to take the necessary steps to permit this to occur. Further, the Commission recognizes the merits of satellite delivery models as mechanisms for the provision of such packages.
“However, the Commission notes that specific issues related to the digital transition, and, in particular, possible alternatives to free conventional television signals in those markets where broadcasters do not construct digital facilities, are under consideration in the policy proceeding announced in Broadcasting Notice of Consultation 2009-411. Accordingly, the Commission considers it premature to grant the applicant’s specific requests pertaining to the provision of a free local program package, including its related request for relief from Local Programming Improvement Fund (LPIF) contributions.
“For the same reasons, the Commission also considers it premature to grant the applicant’s request for authorisation to provide two large English- and French-language basic packages.”
FreeHD had requested that it be exempt from the requirement to contribute to the LPIF for the first five years of its licence term in order to recover a part of the costs of providing the free local program
The CRTC’s decision means that FreeHD is authorised to offer DTH services, but must do so on the same terms as the incumbents, Bell Canada Enterprises and Shaw Communications. To that end, FreeHD must offer certain national channels, such as at least one CBC station, as well as a number of local ones. CRTC has also encouraged FreeHD to reapply for it planned programming packages when digital transition policy has been finalised.
FreeHD, which is 91%-owned by Ciel with his wife Krista owning the remaining 9%, now has two years from February 8 to commence operations. The licence will expire August 31, 2016.
