Canadian Heritage Committee on May 6th, 2009

[Mirko Bibic]

That is correct. We propose that we would do this on a cost-recovery basis. The cost of delivering freesat would be credited against some of these fees we're already paying, such as the local programming fund, and the consumer, under our model, would be asked to pay for the home's satellite dish and the receiving equipment, the set-top box that you hook up to your TV.

[Dean Del Mastro, Conservative, Peterborough, ON]

They would have to pay for a digital antenna anyhow. Is that correct?

[Mirko Bibic]

That's correct.

I'll put it in perspective, Mr. Del Mastro, if I may, in terms of the cost equation. For the sake of the broadcasters allowing Bell TV to offset against the local programming fund, a cost of about $5 million a year, we would be saving them hundreds of millions of dollars a year in upgrading their infrastructure to digital, and the consumer would continue to receive local signals with no monthly charge. It really is a win-win-win situation. All we're asking in return is that fee-for-carriage and LPIF increases not be imposed.

We're willing to step forward, come to the plate, and add value to the system.

[The Chair, Conservative, Gary Schellenberger]

Mr. Bibic and Mr. Frank, thank you for your patience in waiting for us. I think you have come forward with some good concrete suggestions, and we appreciate that a great deal. I'll see that they're included in our report.

[Christopher Frank]

Could I just make a couple of comments on your question, sir?

First of all, I'd like to say for the record that we carry the Peterborough station on our DTH service. Presently we carry all three Pattison stations as well, in addition to the Corus station from Kingston.

The main point I'd like to make is that as our costs go up for something like fee-for-carriage or LPIF, we'll obviously have to raise our prices, with no seeming value added to the consumer. Most consumers have a fixed wallet for entertainment, and what will happen, especially to specialty services and pay-TV services, is that as the price goes up, people will churn out of the discretionary packages they buy and in fact will buy less from the Canadian broadcasting system, not more. So I think you'll see consumers with less choice and less variety in programming. Ultimately, they'll be disillusioned.

[The Chair, Conservative, Gary Schellenberger]

Thank you very much.

Again I apologize for the inconvenience we put you through with our votes. Your presentation was fantastic and your answers were great. I know Mr. Angus would have liked to ask you some questions, but he had another engagement and had to leave.

I thank all the people who came back after the vote to make sure our witnesses did get heard today. Thank you very much.

This meeting is adjourned.