Bell TV puts FreeStat back on the table
August 06, 2009
GATINEAU – After receiving clarification from the CRTC, Bell TV is willing to put its satellite platform FreeStat back on the table as a possible solution to transitioning smaller over-the-air television stations to digital by August 31, 2011. Bell made the about-face after the CRTC told it that it would not necessarily be excluding FreeSat contributions in determining the market value of over-the-air TV signals.
In a July 21 letter to the CRTC, Bell TV noted “implementation of the proposal would remain dependent on acceptable outcomes in the local/distant signal negotiations and the [Local Program Improvement Fund] LPIF.
Further details will be spelled out by Bell TV in response to the Commission’s July 6 Broadcasting Notice of Consultation 2009-411, which called for broadcasters and distributors to negotiate a fair price for each OTA television signal.
It was Bell TV’s initial interpretation of that notice that led it to conclude the Regulator was denying the TV distributor the “ability to use our contributions to FreeSat as a consideration, in whole or in part, for financial transfers to the broadcasters that we simply cannot afford,” as reported by Cartt.ca.
“In light of the Commission’s findings (released in this notice), Bell TV will not be in a position to offer a FreeSat service, and we are advising you that we are withdrawing our proposal,” Bell TV stated in its July 16 letter to the CRTC.
In response, Peter Foster, director general of TV Policy and Applications at the CRTC, told Bell TV in a July 21 letter: “Please be advised that we do not share that interpretation. As you know, paragraph 39 addresses the framework for negotiating the value of conventional signals being distributed (be they local or distant). Employing your terminology, we would point out that we see nothing in paragraph 39 that excludes taking into consideration, in whole or in part, your contributions to FreeSat when setting that value.”
Section 39 of the Commission’s Broadcasting Notice of Consultation 2009-411, issued on July 6, states the CRTC is seeking what mechanisms should be used for establishing a negotiated, fair value for conventional signals. Specifically, it asked for industry comments on the following questions: What regulatory measures are needed to facilitate fair negotiations? What methodology and criteria should be used for determining the fair market value of a conventional signal? Are there any other considerations that the Commission should take into account? What safeguards need to be established so that the negotiations are successful and are restricted to the issue of a negotiated fair market value for the conventional signal being distributed? and What is the appropriate method, if required, to achieve resolution through binding arbitration?
