Thank you, Mr. Chairman.
I'll skip our introductions.
On August 31, 2011, Canada will join the growing list of countries around the world that have made the transition from analog to digital television. The commission established this deadline in 2007 after consulting widely with the broadcasting industry and the public.
At the time, the Federal Communications Commission had already announced a date for the transition south of the border. There was a consensus that Canada should take the opportunity to learn from our neighbour's experience and follow relatively quickly in its footsteps.
The industry also urged us to provide regulatory certainty by setting a firm date. This afternoon, we will review the progress we have made over the last four years to facilitate an orderly transition for Canadians. We will also provide an update on the industry's preparations.
Let me begin by addressing the following question: Why should broadcasters make the transition from analog to digital television?
First and foremost, spectrum is a scarce public resource that must be managed as effectively as possible for the benefit of Canadians. Since the 1950s, analog broadcasting was seen as the most effective way to provide televised information and culture to viewers. With digital technologies, however, the same number of television stations can operate using much less spectrum, and even broadcast multiple services on a single channel. Another important consideration is that we share spectrum with the United States, which went digital nearly two years ago. In order to harmonize spectrum uses, Canadian broadcasters will be required to vacate channels 52 to 69. Some of these channels have been reserved, on both sides of the border, for public safety services. The government has set aside another portion of the spectrum for advanced wireless services.
Canadians have been enthusiastic adopters of smartphones, tablets and other mobile devices. These devices are being used to run more bandwidth-intensive applications, whether it's to make a video phone call, stream a TV show from the Internet or keep in touch with the office while travelling abroad. As we move forward in the digital economy, innovative applications will place increasing demands on mobile broadband networks. A wireless spectrum auction is planned for next year, which will help ensure Canada stays at the forefront of this fast-moving environment.
Finally, the transition will provide Canadian producers and broadcasters with the infrastructure they need to reach viewers with crystal-clear programming in high-definition. This is a key competitive advantage for our broadcasting system, particularly in an age where content from around the globe can be watched on different platforms.
The digital transition poses an interesting challenge for a country the size of Canada. While the majority of our population is clustered along the U.S. border, many Canadians live in rural or remote areas.
The industry expressed concern that forcing every local station to convert to digital would not be a desirable or practical scenario. As I explained a moment ago, we have no choice regarding the spectrum that needs to be vacated for harmonization purposes; the transition is therefore mandatory for all television stations operating on channels 52 to 69.
The commission also identified 31 large markets where stations will be required to stop broadcasting in analog regardless of which channel they occupy. They include provincial and territorial capital cities, markets with a population over 300,000, and markets where there is more than one local television station.
That being said, we are not insensitive to the fact that it may be more difficult for broadcasters in smaller markets to upgrade their transmission equipment. Stations that are on channels 2 to 51 outside the mandatory markets will have the flexibility to continue broadcasting in analog. Likewise, stations operating on channels 52 to 69 in these markets will be able to hold off on converting their transmitters as long as they move their analog signal to one of the lower channels and there are no interference issues.
Through the establishment of mandatory and non-mandatory markets, the transition has become a manageable task. Rather than having to convert over 700 transmitters, broadcasters need only worry about the 193 transmitters operating on channels 52 to 69 and located in mandatory markets.
In the past few months, we have approved over 100 applications, making it possible for broadcasters to put up digital transmitters or move their signal down on the dial.
We are confident that broadcasters were given enough time to prepare and will be ready by August 31 at the latest. The operation of full-power analog transmitters in analog markets will not be authorized after that date.
I would like to make it clear that the transition will not cause any local television stations to close. These stations will continue to produce local programming for their home communities. However, transmitters that rebroadcast a station's signal into other communities may no longer be in operation after the transition.
Namir.
