CBC/Radio-Canada proposes solution to affordability of cable and satellite television services
In a submission filed with the Canadian Radio-television and Telecommunications Commission (CRTC) yesterday, CBC/Radio-Canada offers a solution to the issue of the affordability should a compensation regime for the value of local television signals be implemented.
The Corporation recommends the introduction of a pared-down basic cable package, the content and maximum price of which would be limited by the CRTC. The all-Canadian package would include only the “essentials”: local television stations and a very limited number of other licensed programming services.
“We think it’s critical that all Canadians – regardless of demographic or location – have access to an inexpensive package of essential Canadian television services,” said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada. “That’s what our solution offers.”
“The hope was that competition would protect consumers. That hope was misplaced,” said Steven Guiton, Chief Regulatory Officer for CBC/Radio-Canada. “There appears to be very little keeping Canadian cable rates in check except the fear of a consumer revolt if the abuse becomes too blatantly obvious. And even then, the cable and satellite companies have devised an effective shield – blame it on the CRTC. It’s time things change.”
In its submission, CBC/Radio-Canada details a straightforward approach to establishing a new framework that could easily be implemented in time for the digital transition scheduled for August 2011.