Supreme Court to rule on 'fee for carriage' broadcast plan

Written By Unknown on Kamis, 13 Desember 2012 | 21.48

Canada's highest court is set to rule on whether cable companies must pay television stations to broadcast their signals, a decision that could lead to higher prices for consumers.

The Supreme Court of Canada will reveal its decision Thursday morning on the so-called fee for carriage system, which private TV networks are pushing.

Currently, cable companies are allowed to pick up private channels' broadcast signals and retransmit them on their networks without having to pay for them.

The networks have argued for years that the current system is unfair, and that they deserve compensation if the cable companies retransmit their signals. In 2010, they went to the CRTC and asked the broadcast regulator to implement a fee for carriage system.

Canada's broadcast regulator agreed, but first asked the Federal Court of Appeal if it had the right to do so. That court said it did, a decision now under appeal at the Supreme Court.

For their part, the cable companies say the proposed system amounts to a "TV tax," and that consumers should expect a fee hike of a few dollars per month on their cable bills if they're obligated to comply.


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