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Telecommunications industry

CRTC Rejects NorthwesTel's Cable Television Bid

Strategic Insights

— 1 min read

The Canadian Radio-television and Telecommunications Commission has rejected NorthwesTel Inc.'s bid to enter the cable-television business, citing a lack of public consultation and insufficient commitment to extend its proposed cable service to 33 northern communities. The decision is a setback for the Whitehorse-based unit of BCE Inc., which had sought to purchase two cable-television systems in Yellowknife and Watson Lake, and obtain licenses to build new stations in nine other communities. The ruling maintains the commission's long-standing policy against allowing telephone companies to hold broadcasting licenses, although it leaves open the possibility for NorthwesTel to reapply under different circumstances.

Key Takeaways:

  • The Canadian Radio-television and Telecommunications Commission (CRTC) rejected NorthwesTel Inc.'s bid to enter the cable-television business due to lack of public consultation and insufficient commitment to extend cable service to 33 northern communities.
  • The decision was opposed by some northern communities and native leaders who feared increased southern influence over the North.
  • NorthwesTel's year-old proposal was considered a test case for "convergence" - the term for telephone company entry into cable television.
  • The CRTC noted that the company could, under the right circumstances, qualify to hold a cable-television distribution licence.
  • The decision maintains the CRTC's long-standing policy against allowing telephone companies to hold broadcasting licenses.
  • The company's bid was to purchase two cable-television systems in Yellowknife and Watson Lake, and obtain licenses to build new stations in nine other communities.
  • The CRTC stated that it recognizes unique circumstances in bringing cable television to the North that may warrant an exception to its policy.

Statistics:

  • 33 northern communities that would have benefited from NorthwesTel's proposed cable service.
  • 2 northern cable-television systems in Yellowknife and Watson Lake that NorthwesTel sought to purchase.
  • 9 additional communities that would have received new cable-television stations under NorthwesTel's proposal.
  • 1 year: the length of time NorthwesTel has been pursuing its cable-television proposal.

Sources:

  • [The Globe and Mail, "CRTC rejects NorthwesTel's bid for cable TV," (no date mentioned)]

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