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The CRTC will hold steady on a distanced approach to the fee-for-carriage debate between local television stations and cable and satellite companies, according to high-level commissioner for the regulator.
"I want to emphasize that we are not about to go back to the question of a set fee imposed by the commission for the carriage of local conventional television stations' what's known as 'fee-for-carriage,' " says Rita Cugini, Ontario's regional commissioner. She adds, "our main reason for doing so is that broadcasters did not give us solid commitments on how the fees would be used to improve the Canadian broadcasting system."
Conventional TV providers are asking the CRTC to allow them to pursue negotiations with cable and satellite companies regarding a fee for carriage to help offset this loss of revenues. The broadcasters say it's unfair that the cable providers profit from their programming while they don't see a cent.
The cable companies, meanwhile, claim the traditional broadcasters already get enough money from the providers through government funds and are just asking for more handouts. The two sides have been engaged in a high-profile PR and advertising war to promote their causes for several weeks.
Cugini said the regulator will focus on whether local TV broadcasters should be allowed to negotiate fees with cable and satellite providers for payment for their signals. The CRTC has already turned down the request from broadcasters to impose a set fee on two separate occasions, most recently in late 2008.
The CRTC has two hearings scheduled to deal with the proposed charges. The first one on November 16 is aimed at determining the value of broadcasters' signals, while another on December 7 gives the public a chance to comment on the proposed fees.
Cugini also said the regulator is concerned that some broadcasters aren't planning to convert all of their over-the-air analog transmitters to digital in 2011, which would leave some rural parts of the country without local TV signals.
Source: Marketing Daily, 10/29/2009
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