Research & Submissions > 1999 > April 8, 1999

April 8, 1999

Secretary General  
Central Building  
Les Terrasses de la Chaudière 
1 Promenade du Portage, Room 201  
Hull, Quebec  
K1A 0N2

Dear Secretary General:

RE:

Notice of Public Hearing CRTC 1999-2  
Applications (199901708, 199901690, 199901682, 199902268, 
199902276, 199902284) by CANCOM for Effective Control of Star 
Choice Television Network Inc.

The Canadian Association of Broadcasters (CAB), as representative of the vast majority of private broadcasters - including television and radio stations and networks, and specialty TV services - is pleased to respond to the applications by CANCOM for approval for changes in the effective control of both CANCOM and Star Choice pursuant to a proposed Reorganization and Share Exchange Agreement between CANCOM and Star Choice.

The CAB supports this application on the basis that the approval of these applications will result in the formation of an entity - Cancom/Star Choice - that will have the resources to engage in long term sustainable competition in the DTH and SRDU sectors.

The Commission has actively encouraged the development of competition within the BDU industry. The provision of greater consumer choice through the development of the Canadian DTH and MMDS sectors has been central to that strategy. Approval of these applications should strengthen the DTH sector's capacity to effectively compete with incumbent BDU's.

With respect to the SRDU sector, we would expect that the Commission will license the application currently pending by Bell Satellite Services Inc. (BSSI) for an SRDU licence if the Commission deems that the application is compliant with the SRDU licensing framework it established last Fall. In that eventuality, the consolidation of Cancom's and Star Choice's efforts in the SRDU sector seems appropriate.

Finally, the CAB would like to take this opportunity to briefly comment on a matter that is indirectly related to these applications.

As the Commission is aware, the CAB and Star Choice have been working toward a comprehensive DTH agreement on an alternative to program deletion (Decision CRTC 97-576 temporarily suspended Star Choice's conditions of licence relating to deletion ending December 31, 1998 and encouraged both parties to work together to conclude an agreement on an alternative to deletion) . Our goal from the outset has been to establish an agreement that provides rights protection for those broadcasters that are carried by DTH through simulcast and non-simulcast and those that are not through compensation rather than deletion. We are seeking an agreement with Star Choice that has parity with the agreement already struck with ExpressVu. While there are a few outstanding issues yet to be resolved, the process now appears to be drawing to a conclusion. We hope to be able to jointly report with Star Choice to the Commission the results of these negotiations and table an agreement in the next few weeks.

We raise this matter in the context of these applications because we believe approval of this transaction will strengthen Star Choice's position in the marketplace and, with it, its capacity to protect the program rights of Canadian broadcasters.

Sincerely,

Robert Scarth 
Vice President, Television