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Satellite Radio In Canada Back To Square One?
August 29, 2005

Reports from Canada say that the decision to allow satellite radio into the Great White North could be sent back to the Canadian Radio-Television And Telecommunications Commission (CRTC), stalling XM and Sirius' efforts. The Toronto Globe And Mail reports that Heritage Minister Liza Frulla will ask the cabinet to be reviewed further. Lobbyists have complained that the CRTC decision does not require enough Canadian content from the broadcasters.

The satcasters have said that if the decision is sent back, their companies will need to start over from scratch, thus wasting millions of dollars. Kevin Shea of Sirius Canada told the paper it could take two more years, in which time the "gray market" could grow. This "gray market" is made up of Canadians who subscribe to U.S. satellite radio, which Sirius estimates is already at 100,000 and is technically against the law.

John Bitove Jr. of Canadian Satellite Radio (XM's Canadian partner) was not surprised by the potential review. He told the Globe And Mail, "We had been forewarned that the minister would be the toughest part of this.” He also told the Canadian Press that he believes that French-speaking residents are the ones primarily raising the issue. Bitove said, "So far, from what I understand, that's really the only issue that's been brought up - that three French channels is not enough." Car companies are also poised to take a loss if satellite radio's debut is pushed back further.

The government has until September 14 to make a decision on satellite radio and if the broadcasters' licenses will be revoked. "There are hundreds of thousands of Canadian consumers who want to purchase this product - either at a retailer or in a new car - who are going to pay the price if this is the decision," Bitove told the CP.




 
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