satellite_dishes.jpgWhen the United States got its own satellite radio the Canadian Radio-Television and Telecommunications Commission (CRTC) also wanted to have one. They asked for applications for development of the Canada’s first satellite ratio broadcasting. They received many applications and lots of interest was generated. The three main applications were filed they were:

XM with the partnership with Canadian Satellite Radio, Sirius filed with Standard Broadcasting and CBC, CHUM Limited and Astral Media. The CHUM Limited was a surprise entry. That was due to their different approach than that of XM or Sirius. They wanted to provide service through the already existing terrestrial DAB transmitters. In other words, the transmitters would be the ones receiving the satellite transmission, from where they would continue the broadcast to consumer owned receivers.

While the CHUM Limited and Astral Media proposal offers an entirely Canadian approach, the first two bring in a blend of US based technology and Canadian broadcasting channels. XM Radio and Sirius had a advantage by the fact that the coverage area of their satellites already existed in parts of Canada, so a small audience was already using their services.

Three satellite radio services for Canada

The CRTC approved all three applications in June 2005 and they laid down conditions which are listed below:

1) A minimum of 8 channels must be produced in Canada and for each Canadian channel 9 foreign channels can be broadcast.2) At least 85% of the content on the Canadian-produced channels (whether musical or spoken word) must be Canadian.

3) At least 25% of the Canadian channels must be French-language stations.

4) At least 25% of the music aired on the Canadian channels must be new Canadian music.

5) At least 25% of the music played on the Canadian channels must be from up-and-coming Canadian artists.

All the three contenders had to accept these conditions and the US companies and their Canadian Partners tried to use the rules to their advantages. The XM Radio and Sirius decided to play 50% of French programs against the 25% required by the CRTC. As part of the negotiations XM received 5 channels of National Hockey League and the deal to cover the Canadian National Hockey.

The fact that the US satellite industry giants were both allowed to broadcast on Canadian territory determined CHUM to appeal the decision. They motivated their action by saying that the two US companies would simply “suffocate” CHUM with their presence in Canada, not allowing any room for development for the all-Canadian company. CHUM also complained about the deals that were cut with the two US companies. As a response, Canadian Satellite Radio and Sirius Canada said that CHUM is in fact trying to obtain monopoly over the Canadian satellite radio market.

Today’s Canadian satellite radio

The main complaint of the Canadian people was that CRTC was not too tough on players to supply French and Canadian content. This made the satellite radios to promise and increase the programs in French and Canadian. The XM satellite was launched on the 29th November 2005 and Sirius on Dec 1st. Here the monthly subscription rates were $12.99 for XM with a one time fee of $19.99 and $14.99 for Sirius without any additional cost.

Both companies are expecting rapid increases in the numbers o subscribers, although, in spite of the extra Canadian content they added to their air time, there are still quite a few voices protesting against the potential monopoly the two companies may get to in the near future.