Source : Canadian Press

OTTAWA (CP) -- The CRTC rules today on a trio of applications to bring subscription-based, digital radio -- in effect pay-radio -- to Canada.

The decision, however it goes, is almost certain to be appealed, by one or another of the applicants, or even by a group of Canadian cultural organizations leery about Canadian content rules in the decision.

Two satellite-delivered pay-radio companies have been broadcasting in the United States and have hooked up with Canadian partners to operate here. Canadian Satellite Radio (CSR) brings together John Bitove Jr., former owner of the Toronto Raptors, and Washington-based XM Satellite Radio Holdings.

The CBC and Standard Radio are tied in with Sirius Satellite Radio, XM's American rival.

CHUM Ltd. and Astral Media of Montreal propose pay-radio with a difference, passing on satellite delivery for the moment in favour of a series of broadcast towers. They would move to satellite later. Industry betting is that all three applications will win approval, but the guesswork is over what conditions the Canadian Radio-television and Telecommunications Commission will demand.

Canadian content is expected to be a key issue.

The three applicants would each offer 60 to 100 commercial-free channels of various music and spoken programming for a monthly fee of $10 to $15. The CHUM-Astral application, however, offers 20 to 30 per cent Canadian content, a better chunk than its rivals.

Canadian Satellite, however, says it will allow independent and lesser-known Canadian artists -- who don't get a lot of air time on commercial radio -- to be heard.

Current radio rules require music stations to broadcast 35 per cent Canadian songs.

Ian Morrison, spokesperson for Friends of Canadian Broadcasting, says the CRTC may be looking down a slippery slope if it cuts that requirement for these applications.

Conventional broadcasters will complain of unfairness, he predicts. "What would you do?"

He says the decision, however it is phrased, will end up before the federal cabinet or Federal Court. The Broadcasting Act offers unhappy applicants either route.

"I would say at least one side would appeal," said Morrison.

He said the commission faces a tough job, especially over the Canadian content rules.

"They will make a decision that will make nobody happy and they will do that, in a sense, on purpose because it is kind of a no-win situation."

He said his group, along with other organizations, may also appeal if the content regulations are watered down.

"Our concern was, don't allow a decision that will erode everything that's been done in Canadian content, so there's a possibility that a whole phalanx of Canadian cultural groups will intervene on this."

© Canadian Press