CRTC approves new IPTV service from VMedia

The CRTC on Friday approved a new IPTV service from VMedia Inc., despite arguments from some interveners that the proposed service would be transmitted over the public Internet and should therefore not be licensed as a broadcast distributor. The commission said 2251723 Ontario Inc., which is wholly owned by VMedia, was approved for licences to provide TV service in several markets across the country, including St. John's, N.L., Halifax, Quebec City, Montreal, Winnipeg, Regina, Saskatoon, Edmonton, Calgary, Vancouver, Victoria, as well as several other locations in the Atlantic, Quebec, Saskatchewan, Alberta and British Columbia. In its decision, the CRTC noted that interventions from fibre-network operator Beanfield Technologies Inc. and media company Ethnic Channels Group Ltd. argued that VMedia's proposal would see its TV service delivered over the public Internet and should therefore fall under the digital-media exemption order. The CRTC said VMedia argued that it would be using "a private managed network in accordance with its own technology and network design parameters, which include the implementation of hard-coded IP access lists and virtual private networks." The commission added that the set-top boxes used for the service "are not nomadic and cannot connect to any point on the Internet," adding that it has granted broadcast licences to more than 20 other operators using similar technology. An article by The Wire Report last year outlined how some companies seek to be licenced broadcast distributors rather than over-the-top Internet operators because being regulated provides some guarantees in terms of accessing content. For example, Leiacomm was denied in its attempt to force BCE Inc. to provide content for its proposed OTT video service, as the CRTC said its rules do “not guarantee that such content will be made available to all online content providers.” VMedia director George Burger said in an email Friday that subscribers to his company's TV service will have to subscribe to VMedia's Internet service or that of another independent ISP that it has partnered with. He said VMedia offers unlimited Internet usage, so its subscribers will not be subject to additional data charges for the TV service. He added that he expects partner ISPs to "provide plans large enough to accommodate TV use." However, Burger said VMedia has to pay incumbent Internet providers for access based on usage to provide the TV service, "which puts upward pressure on our Internet costs." In a Part 1 application last week, the Canadian Networks Operators Consortium (CNOC) told the CRTC that those wholesale rates have reached extreme levels, and are keeping small telecoms from competing in the IPTV space. Burger categorized the CRTC's decision on Friday as "a mini-policy decision that provides a roadmap for how independent ISPs can conduct themselves as licensed broadcasting distribution undertakings." In a separate decision, the CRTC approved a licence for an IPTV service from 9149-2819 Québec Inc., which the CRTC said is also known as Electronic Box, a company that provides Internet service in Quebec and Ontario, according to its website. It received broadcast licences to operate in the Quebec markets of Montreal, Quebec City, Sherbrooke, Gatineau, Trois-Rivières, Saguenay and their surrounding areas. Both VMedia and Electronic Box were ordered to make their new services operational within two years, unless subsequently approved for an extension. Their licences expire Aug. 31, 2021. — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC approves new IPTV service from VMedia

Broadcast | May 8, 2015

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CRTC approves new IPTV service from VMedia

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