Regulator Says Canada Cable Firms May Negotiate Fee
Canadian cable and satellite companies such as Rogers Communications Inc. may have to negotiate a carriage fee with television networks like CTVglobemedia Inc. whose signal has historically been free to distribute, the country's broadcasting regulator said.
The Canadian Radio-Television and Telecommunications Commission, known as the CRTC, also said it wouldn't implement the new regulatory system until a federal court ruled on its authority to implement it. The announcement raises the chances that Canada's cable and satellite firms, which have seen their profits increase in recent years, will have to pay hundreds of millions of dollars to operators of conventional television stations, which lost money in the past year. "It is a TV tax," said Mirko Bibic, senior vice president for regulatory and government affairs at BCE Inc.'s Bell Canada unit, told reporters. "At the end of the day, it's the consumer who pays."