News release

June 12^th, 2002

CRTC ANNOUNCES ITS REGULATORY FRAMEWORK FOR THE TRANSITION TO OVER-THE-AIR DIGITAL TELEVISION SERVICES

OTTAWA-GATINEAU - The Canadian Radio-television Telecommunications Commission (CRTC) is announcing its regulatory framework for the transition to digital over-the-air television.

The Commission is confident that this regulatory framework will ensure that the transition to digital television happens smoothly and efficiently. By combining market forces and the proper incentives for steady progress, this framework will lead Canada into the future of digital television broadcasting.

Along with this new framework for digital over-the-air services, the CRTC announced today a request for public feedback on proposed policies to govern how digital broadcast services should be distributed by cable, satellite and wireless undertakings.

Principles

Digital Television or DTV is a broadcast transmission technology, which will eventually replace the current analog over-the-air broadcasting system. DTV will improve television viewing by providing wide-screen, high definition images with better colour and picture quality.

The policy framework will guide broadcasters, distributors and producers through the transition to digital with the aim of ensuring that:

• Canadians will benefit from these technological advances to the fullest possible extent.
• The Canadian broadcasting industry will be encouraged to grow and strengthen.
• The transition will not be slowed by unnecessary regulation.
• The Broadcasting Act's cultural objectives will be maintained.

Framework highlights

This framework will allow broadcasters to make the transition to digital voluntarily, without imposed deadlines. Viewers will continue to have access to all of their over-the-air analog services throughout the transition period. Consumers will be able to upgrade their equipment at their own pace and convenience. Here are the framework's highlights:

Market-driven

The transition will be market-driven. The CRTC will not impose deadlines for the transition. Instead, broadcaster investment and consumer demand will dictate the rate at which the upgrade to digital broadcasting will occur.

Universal access

Broadcasters will be encouraged to construct new digital transmitters that will provide full off-air coverage to match their existing analog coverage. Broadcasters will also be expected to maintain their existing analog coverage in full throughout the transition period. Canadians will continue to have free universal access to over-the-air television during the transition.

Existing broadcasters protected

Existing broadcasters will be given the first opportunity to apply for licences to broadcast digitally, but if they fail to do so in a reasonable amount of time, the CRTC will consider other applicants for the relevant frequencies.

Canadian content

Transitional digital licences will authorize broadcasters to offer a certain amount of programming not offered on their analog transmitters - up to 14 hours per week - on their digital transmitters, provided that it is high definition and that at least half of it is Canadian.

High definition

The CRTC is confident that requiring all of the separate programming to be in high definition will help create consumer demand for the new digital services. And stipulating that at least half of it must be Canadian will assist the country's production industry during the transition to digital.

As further encouragement, all Canadian digital programs aired by licensees between 6 p.m. and 12 p.m. will have to be high-definition where such a version exists. Broadcasters should also ensure that, by the end of December 2007, two thirds of their schedules are available in the high definition format.

The Canadian Radio-television and Telecommunications Commission is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

Reference documents: Broadcasting Public Notice CRTC 2002-31, CRTC Public Notice 2001-62

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Media Inquiries:
   Denis Carmel, Tel: (819) 997-9403, eMail: denis.carmel@crtc.gc.ca

General Inquiries:
   Ottawa, Ontario K1A 0N2
   Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
   Toll-free # 1-877-249-CRTC (2782), eMail: info@crtc.gc.ca
   TDD - Toll-free # 1-877-909-2782

Copies of today's documents are available through our Internet site (http://www.crtc.gc.ca) or by contacting the public examination room of any CRTC office. These documents are available in alternative format upon request.

Date Modified: 2002-06-12

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