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Pelmorex Communications, operator of The Weather Network and MétéoMédia, is trying for a third time for must-carry status and also wants CRTC approval for its emergency alert system.
The CRTC asked the broadcaster to submit a detailed plan showing that its system could be operating by 2010 and to provide more details on the governance of the system. It was also told to provide information on outside factors that may prevent the system from being introduced within a year.
The proposal for the alert system, which broadcasters would opt into on a voluntary basis, was the focus of last week's public hearing. Pelmorex's plan is to pass through alerts generated by emergency planning, weather agencies, and other organizations dealing with disasters to be displayed on TVs in the region where the emergency has occurred or is expected to happen.
If Pelmorex is allowed to launch this service, the CRTC will likely do so for a limited time, possibly five years. After that, a government-run national alert system could take over or run in parallel of the service.
The federal and provincial ministers responsible for emergency management announced the creation of a national public alert system in January 2008. It plans to issue a single request for proposals (RFP) to operate the system. Public Safety Canada is leading the government initiative.
Much to the opposition of distributors, Pelmorex has tied its emergency alert warning system to mandatory carriage on digital basic under the 9(1)(h) provision. It stipulates that if a TV service is deemed to be of " 'exceptional importance,' " it would qualify for the preferred carriage status. Being mandatory on digital basic will ensure The Weather Network"s current monthly wholesale rate of 23 cents and appropriate funding for the alerts.
Bell TV director of regulatory affairs Paul Armstrong, in a joint presentation with Rogers Communications, noted Friday that Pelmorex "has offered no new evidence" that its specialty TV channels are of "exceptional importance" since the last two denials. The only difference, he noted, is that this time the weather broadcaster has linked its application for mandatory carriage to a commitment to operate the alert service.
CRTC chair Konrad von Finckenstein also questioned Pelmorex on what had changed since its last denial of mandatory carriage. Pelmorex senior vice-president of regulatory and strategic affairs Paul Temple responded that its weather channels were "exceptional" because they were committed to providing and enhancing distinctly local content (when other broadcasters were cutting it) amid a weakening economy, and were reaching more communities.
The CRTC chair asked Pelmorex to file details about what has changed since its last application and to indicate where it had expanded its reach.
Nothing has changed to warrant mandatory carriage, countered Armstrong, who pointed out that all specialty TV channels are affected by the economy.
Being a popular service doesn"t qualify it as being critically important to achieving the objectives of the Broadcasting Act. Popular services, such as YTV, Newsworld and RDI, were denied mandatory status in 2007, and the CRTC regarded them as having " 'the ability to negotiate reasonable carriage arrangements,' " he stated.
Von Finckenstein asked Pelmorex why carriers would take its weather channels off basic when they could risk alienating TV subscribers who value the services. Temple pointed out that distributors have tried to remove the services twice already from basic package, even though they currently have dual carriage status.
If the leverage (the preferred carriage status) is taken away, then the wholesale rate discussions do not start at 23 cents, and that"s a huge risk because Pelmorex needs stability, Temple said.
A group of about 40 MPs represented by Liberal MP Bryon Wilfert, some emergency agencies, such as Emergency Management Ontario and the Red Cross, along with many individuals supported Pelmorex"s proposal.
Others such as weather forecasting company AMEC, meanwhile, opposed it. AMEC representatives said their company planned to bid in the government"s RFP process. The Nova Scotia Emergency Management Office requested more technical details because it sensed there were " 'gaps between what Pelmorex can do and what is needed.' "
Rogers Communications senior vice-president of regulatory Ken Engelhart referred to Pelmorex"s system as simply " 'a computer service,' " and stated that many of the functions Pelmorex would perform could be done through Common Alert Protocol (CAP).
Von Finckenstein though appeared unhappy with the government"s progress in implementing an alert system. In turning down Pelmorex in past decisions on its alert proposals, the CRTC has urged the industry to work with government to move forward on the alert initiative.
The CRTC chair, who appeared leery that the government system would be in place quickly even if an RFP went out next week, asked whether it was preferable to have a system like Pelmorex"s, even if not perfect, in place earlier as a gap measure until a national system actually develops.
What is the damage to getting the Pelmorex system up and running by 2010 under CRTC regulation for a limited time, and then the government system can kick in once it"s available, inquired the chair.
Engelhart objected that Public Safety Canada would be getting a contractor, but it wouldn"t be hiring it " the CRTC would. Moreover, he said, Public Safety Canada would be unable to do anything if Pelmorex failed to sort out software problems with the alerts.
Source: Cartt, 04/04/2009
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