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Public Notice
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Public Notice CRTC 1986-136
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Direct-to-Home Satellite Services
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In Public Notice CRTC 1984-195, the Commission outlined certain regulatory guidelines regarding the direct-to-home (DTH) delivery of satellite broadcasting services by existing network licensees. Since that date there has been increased interest in satellite-delivered services evidenced, in part, by the discussion that ensued at the recent hearing initiated by Telesat Canada, Construction Program Review (CRTC Telecom Public Notice CRTC 1985-71), during which several important regulatory policy issues regarding DTH services were raised.
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In order to assist interested parties who may be developing plans for DTH services, this notice outlines the general regulatory approach the Commission intends to use with regard to DTH satellite services to be delivered solely to individual homes and invites comments on the specific terms of the regulatory treatment to be accorded to such services.
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It is apparent that the use of satellite distribution technology for the purpose of providing DTH services to the individual home market will fall into two distinct categories. The first will involve transmissions which will be scrambled, and the second transmissions which will be broadcast in unscrambled form. Either one could involve programming originated, packaged or distributed by the satellite user or could involve the re-distribution of conventional broadcast signals and of domestic or foreign specialty services.
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Scrambled Direct-to-Home Services
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Scrambled DTH services, which generally will rely upon the redistribution of programming services originated by others, will generate their revenue primarily through subscriber fees. These services will have characteristics similar to broadcasting receiving undertakings, both cable and subscription television (STV), and potentially may compete for the same subscribers. Consequently, the Commission intends to regulate these broadcasting undertakings in a manner similar to that used with regard to cable systems and STV operations.
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Unscrambled Direct-to-Home Services
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These services, where they are operated on a commercial basis, will generally have as their primary source of revenue the sale of advertising time rather than a direct charge to each subscriber. The programming services offered by these undertakings could originate from, or be packaged or distributed by, these unscrambled DTH undertakings. Consequently, they may potentially be competing for advertising revenue with conventional broadcasters. The Commission intends to regulate these broadcasting undertakings in a manner similar to that used with regard to existing broadcasting transmitting undertakings.
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Development of the Regulatory Framework
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In view of the fact that the use of satellites for DTH broadcasting is still at an early stage of development, it may be that certain proposals for DTH services will not fit easily into the regulatory framework outlined in this notice.
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Even though specific proposals have not been received, the Commission would welcome comments on this issue. Without wishing to limit the scope of the submissions, interested parties should comment on the specific regulatory treatment which should be accorded to DTH services, including proposals for a new regulatory approach; whether, and to what degree, existing regulations should be applied or modified; and any other relevant matters relating to licensing policy.
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The Commission will continue to follow developments of DTH services closely and, in the meantime, will retain the current regulatory framework set out in Public Notice CRTC 1984-195 when dealing with existing satellite network operations.
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Those satellite services that have been authorized for distribution pursuant to a network broadcasting licence would thus not require further licensing authority to permit direct-to-home reception of their services, provided they adhere to the following provision: licensees may not extend their network services to direct-to-home markets located beyond the territory covered by their network licence as set out in the conditions of their licence and further stipulated in the decisions related to their network services. Any proposal that does not conform to these licensing parameters would require the prior approval of the Commission.
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Comments should be received by the Commission by 29 August 1986 and addressed in writing to the Secretary General, CRTC, Ottawa, Ontario, K1A 0N2.
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Fernand Bélisle
Secretary General
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