Source : Globe & Mail

Rapid technological change in the delivery of television services means the country's communications regulator may undertake a policy review in the next couple of years.This would follow a review of commercial radio policy, announced last week, as well as licensing renewals for the country's three biggest TV networks, Canadian Radio-television and Telecommunications Commission chairman Charles Dalfen said Tuesday in an interview.

He reckons a TV policy review won't happen before late 2007, although it could be moved up if the pace of change in the industry makes it a more urgent issue.

New, unregulated entrants are quickly moving into the television business. Wireless carriers now offer TV service on cellphones via the Internet. South of the border, Apple Computer Inc. has started selling TV shows and music videos for its enormously popular iPod devices, while Internet giant Google Inc. recently entered the game with the launch of an on-line video store that sells episodes of shows such as CSI and Survivor Guatemala, along with movies and basketball games. And for years, some consumers have been tuning into TV by unauthorized downloading of shows from the Internet.

Moreover, Canadian telephone companies are applying for licences to offer TV over their phone lines using Internet protocol (IP) technology.

“The orderly windows of distribution are sort of eroding at the edges,” Mr. Dalfen said in a telephone interview. “Unlike radio and TV ... where the location of transmitters is physically in your country or the cable wires are physically within your country ... with the Internet it spills indiscriminately over the border,” he later explained.

Mr. Dalfen said the regulator is discussing the priorities for the latest version of its three-year work plan, which will be released in the coming months, and a TV policy review may find its way on the schedule.

The CRTC took a pass on regulating broadcasting services over the Internet in 1999, saying it was not yet affecting conventional broadcasting. But it did leave the door open to address the regulation of traditional media if there was a significant effect.

Since 1999, TV viewing patterns haven't shifted significantly, Mr. Dalfen said.

“With all the talk about iPods and downloads over the Internet, the truth is that, with the exception of teenagers, TV viewing is still pretty stable.”

He said later that “the impact that would trigger some kind of more top-down [TV] review so far hasn't happened. It doesn't mean it won't happen.”

For Mr. Dalfen, the main issue continues to be ensuring a place for Canadian content, which the radio and TV networks in this country are obliged to carry.

“The question remains the same, the answers differ,” Mr. Dalfen said. “How do we, in this universe of choice ... ensure we have a means of communicating with each other ... our stories, news, sports and ensure that Canadians are going to find it interesting and worthwhile to tune into?”

It's far from simple, he concedes. While drama is the most popular genre, the audience for Canadian drama shows is already far smaller than that for U.S. programs, Mr. Dalfen said. “When Desperate Housewives is marketed through iPods, it doesn't make our task easy.”

One key upcoming decision in the TV area is whether the new services offered by the country's wireless carriers are covered by the new-media exemption order of 1999, or if they should be regulated. A ruling is expected this month, according to Mr. Dalfen.

“What we're trying to do is ensure we don't provide a regulatory signal that deflects entrepreneurs and creative minds from exploring what these media can do, and ensure that there isn't an impact on the others,” he said.

“It's a very important balance we continue to draw.”

© The Globe and Mail