The CRTC has tweaked the linkage and distribution rules for BDUs. The revisions, which impact class 1 and 2 licensees and direct-to-home satellite operators, are designed to allow more flexibility in the packaging of Canadian specialty services with non-Canadian-originated services, including authorized U.S. superstations, to ensure that all BDUs are competing on a level playing field. The Commission's old regulations mandated that a Canadian pay television service be packaged in a given discretionary tier with no more than five channels containing any of the non-Canadian-originated services specified in either Section A or Section B of its list of Part 2 eligible satellite services, commonly referred to as the 1:5 rule. Further, each Canadian specialty service could be linked in a given discretionary tier with only one channel containing any of the non-Canadian-originated services specified in Section A of the Part 2 list (the 1:1 rule). The CRTC will eliminate the 1:5 and 1:1 packaging rules as of August 31, 2011 and has pledged to "simplify and consolidate" the lists of eligible satellite services into a single list of services authorized for analog or digital distribution by all BDUs.
Source: Cartt, 05/31/2010