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by Catherine McLean
The Globe and Mail
April 3, 2006
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Cellphone TV services started with hockey
clips and news but now the broadcasting regulator has given wireless
carriers carte blanche to move beyond traditional television.
Mobile TV services from Telus Corp., Bell Mobility Inc. and Rogers Wireless
Communications Inc. are delivered over the Internet and aren't subject
to the same rules as those provided by cable operators and broadcasters,
the Canadian Radio-television and Telecommunications Commission said
yesterday.
Cellphone carriers should be able to experiment in the TV sector without
immediately dealing with regulatory restrictions, CRTC chairman Charles
Dalfen said. Unlike other TV distributors, for example, mobile TV services
won't be required to carry specific channels.
It's early days for this emerging technology as Canadian wireless carriers
only launched their TV services last year. Observers say only a fraction
of cellphone customers subscribe to such services.
"It's too early stage to want to clamp a regulatory regime on it,"
Mr. Dalfen said in an interview, adding that's a possibility in the
future if it has a big impact on the TV sector. "At this stage,
it's not even clear what a mobile program is."
Wireless companies welcomed the decision. "It's going to continue
to allow the very experimentation around content delivery that the commission
was trying to accomplish in its new-media exemption order" said
Janet Yale, executive vice-president of government and regulatory affairs
at Vancouver-based Telus.
In effect, the CRTC reaffirmed a position it took in 1999 with its new-media
exemption order in which it would not set rules for broadcasting services
over the Net.
Other TV industry participants, however, had sought another outcome.
The Canadian Association of Broadcasters (CAB) submitted several proposals
to the CRTC, including one that would have required that mobile TV services
to be owned by Canadians and another that would have required them to
contribute to Canadian talent development funds.
The CAB did not immediately comment yesterday.
"It is likely that the commission will catch some flak on this
from the old-school contingent," said Kaan Yigit, president of
Solutions Research Group. "That's unavoidable to the extent that
every new technology is threatening one established order or the other."
However, networks have no choice but to adapt as TV starts to take off
on wireless phones, computers and other devices. This week, Walt Disney
Co.'s ABC network unveiled a two-month trial to offer U.S. viewers four
of its most popular shows on the Internet.
Wireless TV offers opportunities for major networks, such as Global,
CTV or CBC, Mr. Yigit believes. "In fact, there could be very interesting
cross-platform possibilities, whether in the form of short bits promoting
main TV properties or highlights packages or even testing new ideas
in short-form first."
Mobile TV is a "niche" for customers who want sports or news
updates on the run and it won't replace cable, said Ken Engelhart, vice-president
of regulatory affairs at Rogers Communications Inc., which owns Rogers
Wireless.
"People who are worried this is going to affect the Canadian broadcasting
business, they're like Chicken Little," Mr. Engelhart said.
The selection of channels on wireless TV -- 20 at most -- is much smaller
than that offeredon cable. Depending on the carrier, subscribers can
watch The Shopping Channel, CBC Newsworld, MuchMusic or YTV.
New content will likely develop for wireless TV because people won't
want to watch 30-minute sitcoms on the small screen, observers say.
Clips of sporting events or stories that last a few minutes will be
popular, predicts Yankee Group analyst Jeff Leiper.
But others have concerns about the content on wireless TV.
In a statement yesterday, the Alliance of Canadian Cinema, Television
and Radio Artists said it's concerned about more U.S. programming, and
argued that wireless TV broadcasters should contribute to the production
of Canadian programs.
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