|
Broadcasting Public Notice CRTC 2002-31
|
|
Ottawa, 12 June 2002
|
|
A licensing policy to oversee the transition from analog to
digital, over-the-air television broadcasting
|
|
In Call for comments on a proposed policy to oversee the
transition from analog to digital over-the-air television
broadcasting, Public Notice CRTC 2001-62, 5 June 2001 (Public
Notice 2001-62), the Commission invited submissions on its proposals
concerning the policy objectives and principles that would govern
the transition from analog to digital television (DTV) broadcasting. |
|
In Public Notice 2001-62, the Commission also asked various
questions about what would constitute an appropriate regulatory
framework for the carriage of over-the-air DTV signals by
broadcasting distribution undertakings (BDUs). In Call for
comments on a proposed policy framework for the distribution of
digital television services, Public Notice CRTC 2002–32, which
is also issued today, the Commission examines these views and
suggestions, and sets out for further public comment its preliminary
conclusions regarding the policy and related regulatory amendments
that should govern the distribution of DTV services. |
|
The present notice announces the Commission’s policy framework
for the broadcast of digital, over-the-air television services. The
Commission is satisfied that this framework and its underlying
principles will serve the objectives of the Broadcasting Act.
The Commission is now prepared to give fast-track consideration to
applications for broadcasting licences to carry on what will be
known as transitional digital television undertakings, provided that
the applications accord with the policy objectives and principles
set out below, and are based on the Department of Industry’s
allotment plan for digital television. |
|
General policy objectives
|
1. |
Digital television (DTV) is a new technology based on the
Advanced Television Systems Committee transmission standard (A/53).
The new standard has been adopted for use in Canada, as well as in
the United States, and is designed to replace the current analog
NTSC broadcast system that has been in use now in North America for
over half a century. The superior video and audio characteristics of
digital television technology using the new A/53 standard will
overcome many of the shortcomings of today's analog system which
have become increasingly apparent as consumer TV sets have become
more technologically advanced. The standard defines a number of
digital television formats ranging from narrow screen to wide
screen, and from "low definition" to "high
definition" television, or HDTV. The standard provides for the
capacity to transmit either one HDTV signal or up to five signals of
lower definition programming, as well as some supplementary data in
one 6 MHz television channel. |
2. |
In Call for comments on a proposed policy to oversee the
transition from analog to digital over-the-air broadcasting,
Public Notice CRTC 2001-62, 5 June 2001 (Public Notice
2001-62), the
Commission announced that, in developing its policy to oversee the
transition from analog to digital television, it would be guided by
the following objectives: |
|
- The transition policy should provide guidance to
broadcasters, distributors and producers in their adoption of the
new digital television technology.
|
|
- The continued strength and growth of the Canadian
broadcasting industry should be fostered and its cultural
objectives maintained.
|
|
- The production, broadcast and distribution of high quality
A/53 Canadian programs across the country should be encouraged.
|
|
- Canadian viewers should benefit from these technological
advances to the fullest possible extent.
|
|
- The orderly and timely migration to advanced digital
television services should not be impeded by unnecessary
regulation.
|
3. |
The Commission reaffirms each of these five policy objectives. |
4. |
In Public Notice 2001-62, the Commission also advanced for public
comment a number of general policy principles, including its
preliminary view that digital technology should be treated as a
replacement for analog technology. Further, it suggested that a
voluntary model that would develop at a pace set by the marketplace,
rather than a transition model based on mandated deadlines, would be
the more appropriate approach for the Canadian broadcasting system. |
5. |
The Commission also expressed the view that issuing a new,
transitional digital television licence to a television broadcaster
would be preferable to amending its existing licence. One reason
given by the Commission for this view was that a new licence would
enable it to authorize the broadcaster to offer a certain amount of
digital programming that differs from its analog program offering.
The Commission stated that it would be prepared to allow up to 14
hours per week of such programming. The Commission added that, while
it would encourage existing broadcasters to apply for transitional
DTV licences, it might be willing to consider applications by
prospective new entrants, should incumbent broadcasters fail to take
advantage of the available spectrum allotments, or should channel
capacity exceed that allotted to existing broadcasters. |
6. |
The comments received by the Commission dealt with a range of
issues. Although parties raised questions with respect to certain
specific policy proposals and how they should be implemented, there
was general support for the overall thrust of the proposed policy
principles. In the following sections of the present notice, the
Commission examines the views of parties on the various issues and
sets forth its determinations on each. |
|
The Commission’s determinations on a licensing policy to
oversee the transition from analog to digital, over-the-air
broadcasting
|
|
DTV as a replacement technology
|
7. |
As noted earlier, the Commission’s preliminary view expressed
in Public Notice 2001-62 was that DTV should be introduced in Canada
as a replacement technology, rather than as a new technology that
would simply take its place alongside the existing analog system.
Although there was some discussion about the particulars, there was
overall support for this approach. Accordingly, it is the Commission’s
determination that: |
|
· Digital technology will be treated as a replacement for
analog technology.
|
|
No mandated transition deadline
|
8. |
There was also broad acknowledgement that the Commission’s
preliminary proposal for a voluntary, market-driven transition
model, without mandated deadlines, would be the most realistic and
appropriate approach for Canada to adopt. The Canadian Association
of Broadcasters (CAB) emphasized that "the DTV rollout should
take place in stages, moving from the largest primary markets to
secondary markets over a period of years". It added that,
"the pace and degree of market acceptance in larger markets
will determine when the DTV rollout can be extended to smaller
markets." The Canadian Cable Television Association (CCTA)
agreed with the CAB’s view that the market-driven model proposed
by the CRTC would be the most appropriate approach, and would be far
preferable to "…earlier approaches in North America that
assumed the abandonment of the analog spectrum".
|
9. |
Some concern was expressed about the difficult business decisions
that confront small market broadcasters in their efforts to weigh
accurately the benefits and costs of converting to DTV. Télé
Inter-Rives Ltée, the licensee of CIMT-TV Rivière-du-Loup and
owner of three other television stations in the Gaspé region of
Quebec, proposed a delay in the DTV roll-out of between five and ten
years in small markets. |
10. |
The Canadian Broadcasting Corporation (CBC) acknowledged that the
"delivery of the CBC’s programming will need to become
digital in the future". It noted, however, that "the
availability of additional funding is not subject to the Corporation’s
control". It added that it will be obliged to seek additional
funding for this activity because its "current programming
priorities and limited resources do not permit the Corporation to
pursue digital television programming activities in any substantive
manner at this time". |
11. |
A joint submission by CTV Television Inc. and Bell ExpressVu
Limited Partnership (CTV/Bell) suggested an approach that would
incorporate an implementation plan, albeit a voluntary one. In
CTV/Bell’s view, such a plan would give the industries most
directly concerned – the broadcasting, production and distribution
industries - a timeframe within which they could plan their
transition strategies. CTV/Bell also argued that an implementation
plan would reduce the "first mover" risk, whereby a
broadcaster might find itself as the unsupported lead in the rollout
of DTV in its marketplace. |
12. |
There were two comments received by the Commission that were more
clearly opposed to the voluntary, market-driven approach proposed by
the Commission for the introduction of DTV in Canada. Mr. Brian
Olmsted expressed concern that such an approach would see the
Canadian broadcasting industry fall behind U.S. television
broadcasters in the rollout of DTV. Motorola Canada Limited, a
wireless equipment manufacturer, also considered that the Commission
should take a more pro-active role in hastening the introduction of
DTV. |
13. |
On balance, the Commission believes that reliance on an
implementation plan with a specified deadline for the rollout of DTV
would lead to more problems than it would resolve. It agrees that
such a plan could produce potential benefits. It is also aware that
unnecessary delay in the roll out of DTV could result in the loss of
Canadian audiences to the DTV signals of non-Canadian broadcasters,
and limit the broadcasting and sales opportunities available to the
producers of digital programming. At the same time, it considers
that developing and adhering to an implementation plan would be
difficult, given the very rapid rate of technological change and the
uncertainty as to how the digital transition will unfold. DTV is a
technology whose success is dependent on consumer acceptance, and
the pace at which that acceptance will grow is difficult to predict.
Accordingly the Commission’s determination is that: |
|
- A voluntary, market-driven transition model, without
mandated deadlines, is the most appropriate approach in Canada.
|
|
New licences will be required for DTV undertakings
|
14. |
Some broadcasters indicated that they would prefer to enter
digital television broadcasting by means of amendments to their
existing licences. They noted that it has been through such
amendments that some radio licensees have been authorized to
establish digital radio transmitters. The Commission acknowledges
that certain radio station licensees have received licence
amendments authorizing them to provide digital programming. These
amendments, however, only permit a licensee to simulcast on its
digital transmitter the programming aired on its analog transmitter.
They also constitute exceptions to the transitional digital radio
policy, which specifically calls for the licensing of digital radio
undertakings separately from their analog version. |
15. |
As discussed further below, a transitional digital television
licence, like a transitional digital radio licence, will authorize
the holder to broadcast each week a maximum of 14 hours of
digital programming that does not duplicate the programming
broadcast on the analog signal. This unduplicated programming is a
distinction that, even in a purely analog environment, would require
that a separate licence be issued. Further, digital television
undertakings raise substantial issues, including those that surround
the carriage of DTV signals by distribution undertakings, that are
best addressed through a separate licensing regime. Accordingly, the
Commission’s determination is that, consistent with parallel
provisions contained in the Commission’s policy for digital radio: |
|
- A new transitional digital television licence will be issued
for each digital television undertaking. Licensees who wish to use
digital television facilities to provide programming consisting
essentially of a simulcast of their existing analog services will
qualify for licensing, subject to specific terms and conditions.
The duration of a licence term will be considered as part of the
application process.
|
|
Fast track consideration of licence applications
|
16. |
Unlike the conversion from black and white to colour television,
the new DTV technology is not backward compatible. This means that
digital transmissions can only be viewed using digital TV sets or,
with some sacrifice in quality, using analog TV sets equipped with
set top boxes that can convert the digital signals to analog. For
this reason, the Department of Industry has developed an allotment
plan for the transition period that identifies an
"equivalent" digital channel for each channel used by an
existing over-the-air television broadcaster. Thus:
|
|
- The Commission will give fast track consideration to
applications by existing over-the-air broadcasters that accord
with the Commission’s transitional digital policy and are based
on the Department of Industry’s allotment plan for DTV.
|
|
Licensing of new entrants
|
17. |
Some parties raised the question of whether new entrants should
be licensed during the transition period. The CAB stated that "…it
is premature now, and will continue to be so for the foreseeable
future, to define a firm cut-off for the expiration of the right to
use a DTV spectrum allotment". Individual broadcasters also
questioned whether it would be advisable to issue DTV licences to
new entrants during the transition. They argued that this would
weaken the business case of existing broadcasters for converting to
DTV. In the view of these parties, new entrants would fragment
audiences, increase the cost of programming, and drive down
advertising rates at a time when incumbent broadcasters are under
considerable financial stress. They suggested that, if new entrants
are to be licensed, the market entry criteria must be amended to
reflect the obligations of the digital transition faced by
incumbents. |
18. |
The Commission notes the concerns expressed about the possible
licensing of new entrants during the transition period. The
Commission emphasizes in this regard that incumbent television
broadcasters are encouraged to apply early for transitional DTV
licences. In the Commission’s view, if a market-driven transition
to DTV is to succeed, then market forces, including those brought to
bear by prospective new entrants, should not be discouraged, and
innovation should be promoted. This is particularly the case in
locations where there is available spectrum, or where existing
broadcasters are not prepared to offer digital services on a timely
basis. The concerns voiced on the matter, most notably by incumbent
television broadcasters, will be addressed when applications by
prospective new entrants for new digital television undertakings are
heard. |
19. |
Accordingly, the Commission determines that: |
|
- The Commission will follow its normal licensing processes.
Should an existing broadcaster fail to apply for a transitional
digital television licence within a reasonable period, or
otherwise demonstrate that it is not prepared, on a timely basis,
to make use of the Department of Industry’s spectrum allotment,
the Commission is willing to consider applications by prospective
new entrants predicated on use of that spectrum.
|
|
- Existing broadcasters are encouraged to apply early for new
transitional digital television licences and to implement the
digital transmitters necessary to make the transition.
|
20. |
The Commission emphasizes that any application for a new
television licence filed by prospective new entrants during the
transition period, whether predicated on the use of digital or
analog spectrum or both, will be considered by the Commission on a
case-by-case basis and in accordance with its existing policies.
These existing policies include those set out in Building on
success – a policy framework for Canadian television, Public
Notice CRTC 1999-97, 11 June 1999, and others related to such
matters as market entry and the issuance of calls, where
appropriate, for competing applications. |
|
Canadian content obligations and the 14 hour program allowance
|
21. |
Under the Commission’s policy proposal set out in Public Notice
2001-62, a transitional digital television licensee would be
permitted to broadcast a maximum of 14 hours per week of programming
that is not duplicated on the analog version of the service. It
would be required, however, to ensure that a minimum of 50% of this
unduplicated programming be Canadian. The purpose of this proposal
was to encourage innovation and experimentation in the development
of DTV broadcasting in Canada, promote the production of Canadian
high definition digital programming, and attract viewers to the
digital transmissions.
|
22. |
Although parties did not oppose the proposed 14-hour per week
allowance, some parties noted that it exceeded the amount of local
and acquired programming that many smaller broadcasters currently
provide in their analog schedules. The CAB supported the broadcast
of a certain amount of digital programming that differs from the
analog service, including multicast and data services, provided that
a majority of the program content broadcast on a licensee’s
existing analog television service is duplicated on the main DTV
signal. The CAB also requested "…content flexibility with
respect to the specific obligations and conditions of licence that
will be imposed on the unduplicated digital programming broadcast
under a transitional DTV licence". The CAB expressed the view
that such an approach would enable broadcasters to determine what
mix of services best meets the needs of the public and to develop
appropriate business cases. |
23. |
The CCTA also supported the policy proposal that the broadcast of
up to 14 hours per week of unduplicated programming be permitted,
"provided that such programming is high definition, wide screen
[16:9 aspect ratio], quality digital programming". The CCTA
added that "…mandatory carriage will not drive penetration;
HDTV content and competition for early adopters will".
According to the CCTA, to restrict the availability of HDTV
programming would only delay the introduction of HDTV in Canada. |
24. |
The Commission notes that the amount of HDTV programming
currently available, including Canadian digital programming, is
quite limited. It is concerned that, in the absence of a requirement
that 50% of the unduplicated programming on a digital transmitter be
Canadian, broadcasters might fill their digital schedules with
foreign material, and that the amount of Canadian digital program
production would remain limited. The Commission emphasizes that 14
hours per week would be the maximum amount of digital programming
that would be permitted to differ from the programming contained in
a broadcaster’s analog program schedule. |
25. |
Over the years, one of the approaches taken by the Commission to
ensure the production of Canadian television programming has been to
impose regulatory requirements on licensees for the exhibition of
minimum levels of Canadian content. The Commission is satisfied that
this approach has been successful in the past, and considers that it
remains appropriate, given the hurdles that broadcasters must
overcome during the digital transition. Accordingly, the Commission
concludes the following: |
|
- The Commission’s existing policies and regulations, as
well as the conditions of licence currently applicable to a
broadcaster in respect of its analog television service will also
apply to any transitional digital programming service the
broadcaster may be licensed to provide. These include requirements
for the provision of 60% Canadian content during the broadcast
year and 50% during the evening broadcast period, and for the
exhibition of a minimum of 8 hours per week of priority
programming where required by condition of licence.
|
|
- Where the licensee of an analog television undertaking is
also the licensee of a transitional digital television
undertaking, it will be authorized to broadcast a maximum of 14
hours per week of programming on the digital service that is not
duplicated on the analog service. Broadcasters will be free to
provide lesser amounts of unduplicated digital programming, and
may choose to offer none. A minimum of 50% of the unduplicated
digital programming must be Canadian.
|
|
Program formats
|
|
Wide screen programming
|
26. |
The Commission notes that the 16:9 aspect ratio is used for
screening most films in movie theatres. It is also a feature of
digital, high definition television that is becoming increasingly
familiar to television viewers. The Commission believes that a
policy that digital programming aired on transitional DTV
undertakings adhere to the 16:9 aspect ratio would ensure that even
low definition digital telecasts offer some technical improvement
over NTSC analog broadcasts. It would also encourage Canadian
producers to make use of the wide screen as they move into the
production of high definition programming. Accordingly, the
Commission’s determination is that: |
|
- All programming produced in the 16:9 aspect ratio must be
broadcast in that ratio on transitional DTV undertakings. Further,
the Commission encourages broadcasters to produce 16:9 format
programming or to acquire such programming whenever possible.
However, programming originally produced in the 4:3 aspect ratio
will not have to be re-formatted.
|
|
High definition television programming
|
27. |
DTV technology offers the capacity for a broadcaster to air one
HDTV program stream per DTV signal. Alternatively, a DTV signal may
be used to transmit two or three medium definition, or up to five
low definition program streams plus some supplementary data.
Although the Commission is mindful of DTV’s capacity to deliver a
multiple of program and data streams, it considers that the policy
for the transition from analog to digital television should favour
the broadcast of HDTV programming, and of Canadian HDTV programming
in particular. |
28. |
Such emphasis would be consistent with the recommendations of the
Task Force on the Implementation of Digital Television (the Task
Force). The Task Force was established by the government in October
1995, and included participation from a broad cross-section of
stakeholders in the broadcasting industry. In its consensus report,
which was submitted to the Minister of Canadian Heritage in October
1997, the Task Force stated that Canada must strive for the highest
possible quality of digital television service in a timely manner.
It therefore recommended that, by the end of 2007, two thirds of
each broadcaster’s schedule, and two thirds of new Canadian
content productions, should be available in the HDTV format. This
target date of 31 December 2007 follows by three years the 2004 date
projected by the Task Force for the launch of digital television
broadcasting in Canada. |
29. |
The Commission considers that Canadian viewers must be provided
programming of the highest quality that fully exploits the spectrum
made available for digital broadcasting. The Commission will
therefore require that all of the unduplicated programming broadcast
by a transitional digital television station, whether it is Canadian
or non-Canadian, be in the HDTV format. With respect to Canadian
content, the Commission’s policies have focused on the evening
broadcast period, when television audiences are the largest.
Maintaining this focus for the broadcast of HDTV programming during
the transition period will allow broadcasters the necessary
flexibility to use their digital facilities to experiment with
multicast, data and other services of lower definition, delivered
during other periods of the day when television audiences are
generally smaller. Accordingly: |
|
- All of the programming on the digital service that is not
duplicated on the analog service must be in the HDTV format.
|
|
- All Canadian programs aired during the evening broadcast
period by the licensee of a transitional DTV undertaking, whether
duplicated or not, are to be broadcast in the HDTV version, where
such a version exists.
|
|
- Consistent with the Task Force recommendation, the
Commission encourages transitional DTV broadcasters to ensure
that, by 31 December 2007, two thirds of each broadcaster’s
schedule is available in the HDTV format.
|
|
Program rights
|
30. |
In its submission, the CAB expressed a view similar to that
contained in the joint submission by CTV/Bell view concerning
program rights. According to the CAB: |
|
The creation of a de facto North American rights regime at the
expense of Canadian broadcasters is a crucial issue for the entire
Canadian broadcasting system and must be addressed in a digital
environment. In fact, this has already begun to take place as the
result of U.S. satellite services acquiring exclusive North
American rights for specific programs offered on their services.
|
31. |
The Commission, in overseeing the Canadian broadcasting system,
does not become involved in negotiations between producers and
broadcasters concerning program rights. For the broadcasting
distribution industry, however, the Commission, in its call for
comments set out in Public Notice 2002-32, has proposed that
authority to distribute the digital version of foreign services
contained in the Lists of Eligible Satellite Services be made
subject to the same stipulations regarding the purchase of program
rights as are currently applicable to analog services. |
|
Supplementary services
|
32. |
The Commission considers that the use of DTV capacity for the
delivery of multicast programming and data transmission services
could be of potential benefit to consumers and to the broadcasting
system as a whole. These might include new, innovative forms of
multicast programming. They might also include data transmission
services. Both could provide commercial opportunities for the
broadcasting industry. At the very least, such services could
generate revenues to offset a portion of the costs incurred by a
broadcaster in making the transition to digital. The Commission
notes in this regard that DTV technology provides the means to
encrypt signals, thereby ensuring payment and addressing copyright
issues. |
|
Data transmission
|
33. |
The Commission considers that the various business models for
data transmission remain somewhat speculative, since there is no
experience in Canada with the use of A/53 technology to deliver
data. Most, if not all applications will require some form of return
path, either through local cable plant or telephone lines. This
means that broadcasters and common carriers will have to co-operate
in developing service applications. More importantly, the Commission
does not consider that the primary motivation for making the
transition to DTV should be to exploit its ability to transmit data.
Rather, it is the Commission’s belief that DTV should be used to
promote the development of new Canadian programming of high quality,
and to make this available to viewers in a picture format that is
superior to the current analog NTSC format. To this end,
broadcasters should ensure that the high definition programming they
purchase or produce is transmitted to viewers without loss of signal
quality. |
34. |
The Commission foresees no significant broadcasting policy
concerns with respect to data transmission, since it appears likely
that it will remain a minor adjunct relating directly to the main
programming stream or its commercial content. Accordingly, the
Commission makes the following determinations: |
|
- The Commission will expect broadcasters to ensure that the
transmission of data does not affect the quality or quantity of
DTV programming broadcast to viewers, and more specifically, that
it does not supplant or impair the delivery of HDTV programming
when it is available.
|
|
- The Commission will monitor the development of any data
services offered to ensure that the policy objectives set out in
the Broadcasting Act are met.
|
|
- Any issues that may emerge with respect to the provision of
data services by broadcasters will be examined as necessary.
|
|
Multicast programming services
|
35. |
Multicast programming services give rise to potential concerns.
These relate to the impact that multicast services might have in the
current broadcasting marketplace, whether the new multicast services
are advertiser supported, subscription based, or both. The
Commission notes in this regard the following concerns raised by
Pelmorex Communications Inc. (Pelmorex): |
|
…a policy decision that would authorize each over-the-air
station to transmit what would amount to four new programming
services along with its main over-the-air television service
[would] have a catastrophic impact on Canadian pay television and
specialty services, particularly if the only limit on those
multicast services was that they would have to "add to,
supplement or be related to" the over-the-air television
station, as suggested by the CAB.
|
36. |
Use of DTV technology to deliver multicast services, potentially
in preference to the broadcast of HDTV programming, might also have
the effect of discouraging the introduction of HDTV, thereby
diminishing the motivation that consumers might otherwise have for
purchasing a digital television set. |
37. |
The Commission has weighed the possible advantages of multicast
programming services against these potential concerns. On balance,
it has concluded that such services can contribute in a positive
manner to the Canadian broadcasting system. Their positive
contribution can only be maximized, however, if the services are
truly innovative and non-duplicative of existing services. The
Commission shares the concerns of Pelmorex and others in this
regard, and will therefore be predisposed to license new and
innovative services, in preference to those that would merely
duplicate the services of existing off-air, specialty or pay
television undertakings. To address concerns that multicast services
might slow the introduction of HDTV, the Commission will expect
broadcasters to ensure that the delivery of multicast programming
does not affect adherence to their qualitative and quantitative
commitments concerning the amount and the quality of the high
definition programming that they broadcast on the main digital
programming service. |
38. |
In order to ensure that the introduction of multicast program
services does not negatively affect the current structure of the
broadcasting industry, applications to provide multicast services
will be considered on a case-by-case basis, and will be licensed
separately from the main DTV service. Although additional, more
specific licensing criteria for multicast services may evolve
through the public hearing process, the particulars of each
proposal, including Canadian content levels, market entry criteria,
allocation of revenues, carriage and substitution arrangements will
be examined against the background of the Commission’s existing
television policy framework. A discussion of the associated
distribution and substitution issues for multicast and data services
is contained in Public Notice 2002-32. |
39. |
The Commission concludes that its transition policy will allow
for the licensing of multicast programming services on the following
basis: |
|
- Multicast services should make a positive contribution to
the Canadian broadcasting system during the transition period.
|
|
- Each multicast programming service will be considered on a
case-by-case basis and will be licensed by the Commission
separately from the main DTV service. A multicast service will
generally be subject to the same Canadian content, logging and
other regulatory requirements that apply to existing television
services.
|
|
- The Commission’s predisposition will be to license new and
innovative multicast services, in preference to those that
duplicate existing over-the-air services, pay or specialty
services.
|
|
- The delivery of a multicast service may not take precedence
over the broadcast of the HDTV version of a program whenever such
a version is available.
|
|
Interactivity
|
40. |
In its submission, the CCTA raised its concerns regarding the
fact that "a significant portion of both the CAB and the Global
submissions deals with proposed rules, restrictions and standards
for interactivity". According to the CCTA, these matters are
unrelated to the issues before the Commission in this public
process, namely the development of policies to deal with the
introduction of digital television. The Commission notes in this
connection that it initiated a separate public process concerning
interactivity issues in Fact finding inquiry on interactivity,
Public Notice CRTC 2001-113, 2 November 2001.
Interested parties were to have filed comments by 15 February 2002. |
|
Provision of over-the-air television service
|
|
Over-the-air coverage
|
41. |
According to the CAB, across the regions of Canada, over-the-air
reception accounts for amounts varying from 18% to 44% of all
viewing of programming broadcast by conventional television networks
(Canadian and non-Canadian). Overall, 25% of viewing of Canadian
stations is by over-the-air reception. In Public Notice 2001-62, the
Commission underscored the importance it places on the continued
availability to all Canadians of conventional, unencrypted,
advertiser supported, over-the-air broadcast television services.
The Commission stated that viewers must not be disenfranchised by
the replacement of today’s analog telecasts by DTV. It also
endorsed the following recommendation contained in the Task Force
report on the implementation of digital television: |
|
Basic broadcast television services that are freely and
universally available over the air are central to achieving the
objectives of the Canadian broadcasting system. This must continue
in future digital terrestrial distribution packages.
|
42. |
Accordingly, in Public Notice 2001-62, the Commission strongly
encouraged broadcasters to provide digital coverage that matches
their current analog coverage, within the constraints of the
Department of Industry’s allotment plan, and to maintain their
existing analog coverage in full during the transition period. The
Commission reiterates the importance it places on the preservation
of free, universal access to broadcast services. Thus: |
|
- Broadcasters are encouraged to maintain their existing
analog coverage in full during the transition.
|
|
- Broadcasters are encouraged to construct their own digital
facilities to provide coverage that matches their current analog
coverage, within the constraints of the Department of Industry’s
allotment plan.
|
|
- The service area of a DTV station will be defined by its
digital service area contour.
|
43. |
Notwithstanding the above, and as noted below, there was an
awareness among parties of the particular challenges that the DTV
transition would represent for broadcasters serving smaller markets
and for the CBC. |
|
Small market broadcasters
|
44. |
Public Notice 2001-62 raised the matter of how best to ensure
that the smaller, secondary and rural markets continue to be well
served. The Commission acknowledged that, in such markets, it might
be too costly for broadcasters to construct new digital facilities
and to operate them for any length of time in tandem with their
existing analog stations. It indicated that a direct switchover to
digital transmission might be the only affordable course of action.
As the Commission also noted, however, the switch to DTV off-air
broadcasting in smaller markets is generally expected to occur only
after the transition has taken place in the larger markets. This
could well be at a time when the penetration of digital television
sets and the availability of affordable set top converters have
significantly reduced the reliance of viewers on over-the-air analog
reception. |
45. |
Further, the Commission considers that, with advance planning,
all broadcasters, including those serving small markets, can take
advantage of the normal equipment depreciation and replacement
cycle. This would allow the transition to DTV to proceed throughout
Canada, spurred by declining equipment prices and by an increasing
use of digital television sets in the home.
|
|
The CBC
|
46. |
The Commission notes that, given the size of the CBC’s
infrastructure and the scope of its coverage and program production,
the digital transition will represent a considerable financial
challenge for the public broadcaster. According to the CBC,
implementing DTV will require supplementary government funding. Such
funding was provided years ago to allow the CBC to implement its
Accelerated Coverage Plan, which extended the CBC’s television and
radio services to all Canadian communities having a population of
500 or more.
|
47. |
The CBC stated that a "realistic approach" to ensuring
that its television network services remain available in small and
remote communities would be to use over-the-air digital transmission
to serve residents of the ten largest markets, representing 70% of
Canada’s population. The remaining 30% would be served via
satellite. |
48. |
It is clear to the Commission that converting the CBC’s
infrastructure – studios and transmitters – will be an expensive
undertaking. Even the limited plan advanced by the CBC, and
described above, raises certain questions. If all existing regional
services are maintained and delivered via satellite, unless sharing
arrangements can be devised, 23 satellite feeds would be
required to distribute the CBC’s programming throughout the
country. In assessing any savings that the CBC’s plan might
represent to the taxpayers who support its operations, the
Commission believes that it would be appropriate to take into
account the cost of the satellite reception dishes that individual
homeowners would have to purchase, as well as any fees they would
have to pay, in order to receive the CBC’s services via satellite. |
49. |
The Commission reiterates that the digital transition will be a
voluntary transition driven by the market, and not by the regulator.
The determination as to when to apply for a transitional digital
television licence will remain entirely with individual
broadcasters, taking into account their particular circumstances. |
|
Other issues
|
50. |
The Commission notes that certain, long-term aspects of digital
broadcasting discussed in Public Notice 2001-62 have not been
revisited or canvassed in the current notice. The Commission intends
to address these at a later date, as part of a separate public
process, following the implementation of the transitional DTV regime
and after some operational experience has been gained. |
51. |
The Commission thanks all those who filed comments in this
proceeding. The Commission is also grateful to the Task Force on the
Implementation of Digital Television, whose recommendations have
greatly assisted the Commission in developing its policy.
|
|
Secretary General
|
|
This document is available in alternate format upon request and
may also be examined at the following Internet site: http://www.crtc.gc.ca
|