Canadian Government Backs Regulator In Satellite/Cable TV Dispute

Canada’s Governor in Council has upheld a Canadian Radio-television and Telecommunications Commission (CRTC) rejection of a Quebecor call to investigate Bell Canada Enterprises [NYSE: BCE] for cross-subsidizing the entry of its satellite TV unit, Bell ExpressVu, into the broadcast distribution market. Montreal-based Quebecor provides telecom and cable TV services in Canada.

In denying Quebecor’s appeal of the decision, the government concurred with the regulator, noting that the CRTC monitors and analyzes the state of competition in the broadcast distribution and telecommunications industries on an ongoing basis. “After a thorough review, no sufficient grounds were found to justify countering the CRTC’s initial assessment of regulatory costing issues,” said Minister of Industry Allan Rock.