With respect to the applicant’s proposal for the provision of a package of free conventional television signals to ensure continuity of service in those markets where broadcasters elect not to construct digital transmitters, the Commission is supportive of initiatives intended to ensure that Canadians do not lose access to free conventional television services as a result of decisions it has been called upon to make in managing the digital transition. To this end, 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, as stated in Broadcasting Regulatory Policy 2009-406, 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 contributions.

For the same reasons, the Commission also considers it premature to grant the applicant’s request for authorization to provide two large English- and French-language basic packages.

Once the relevant policy determinations are issued, the Commission encourages the applicant to apply, in respect of both undertakings, for whatever specific authorizations and related relief would be appropriate in light of those determinations.

The licences will be subject to the conditions of licence generally applicable to such undertakings as well as conditions of licence pertaining to the migration of the services to a Canadian satellite and, in the case of the DTH satellite distribution undertaking, accessibility of services for persons with disabilities.

Further, the Commission requires the applicant to file an application to amend the licence for the SRDU, as may be required, to address any determinations arising out of the next licence renewal processes for the two incumbent SRDUs pertaining to (a) applicable dispute resolution processes, or (b) the transport of Canadian pay and specialty services.