Cabl- Canada adopts competition policy By Noel Meyer distributors. companies must establish separate Telephone companies setting up companies for cable, with a board of The Canadian government issued cable distribution services must estab- directors made up of Canadians, sub- its convergence policy for com- lish separate corporate entities to do so mit yearly affidavits that no interfer- petition between the cable and to ensure no cross -subsidy takes place. ence has taken place in the manage- telephone industries Aug. 6. The policy The Canadian Radio -television and ment of the company and establish states that competition could begin as Telecommunications Commission, annual production funds of C$10 mil- early as 1997. which is responsible for issuing the lion for BC Tel and C$l million for "It ensures the level playing field we new rules, is holding hearings on num- Quebec- Telephone to fund Canadian were looking for. It gives us the safe- ber portability, interconnection, co- programing as well as contribute to guards we were hoping to find." said location, unbundling and rate rebalanc- established production funds. Sylvia Morin, director of public affairs ing, which are slated to finish during Morin believes the new policy may for Videotron, Canada's third largest November. The CRTC must then draft open the doors to international compe- cable company with 1.2 million subs. new regulations and submit them to tition. "One thing we have to keep in Under the new policy, telephone parliament. mind is that international markets will companies will be able to apply for The new policy exempts BC Tel and be opening up in 1998.... The govern- cable licenses as soon as the regulato- Quebec -Telephone, both owned by ment has no choice when it comes to ry framework and the rates for local GTE of Connecticut, from foreign opening up the markets because many telephony are set. Existing Canadian ownership regulations, which stipulate of the Canadian players want to look at content and broadcasting distribution that broadcast distribution undertak- entering foreign markets and it's a regulations will apply to all signal ings must be Canadian om. ned. The question of reciprocity."

T FCN to join BSkyB? The Warner Channel will premiere Nov. 1, BSkyB is strongly hinting that Fox Children's while seven new channels from Granada Sky Network will launch as part of its DTH bou- Broadcasting, a joint venture of BSkyB and quet this year. Speaking at the launch of ITV franchisee Granada Television, will entertainment channel Sky 2, Sky's head join Sky Multichannels package on Oct. 1. of programing, David Elstein, when asked about FCN, said journalists "may have to Nickelodeon goes Nordic attend another channel launch this month Viacom's Nickelodeon has secured or next." Although he admitted he was not transponder 27 on SES's satel- involved in the talks, he said it was ' just a lite so that it can beam into Germany and matter of closing a deal." recently the Nordic countries. In early August, cut back on its kids program production, Nickelodeon plans to begin transmission of which led to rumors that Sky was preparing to a six -hour programing service initially tar- bring FCN on board. geted at the Nordic countries. A I4 -hour Ger- man language feed will be added later this year. Deutsche Telekom eyes UK cable Insiders speculate that German telco Deutsche Telekom Further losses at TeleWest is preparing to acquire up to 30% of the UK's third - UK cable operator, TeleWest, posted a 205% increase in largest cable operator, Bell Cablemedia. In turn, Bell net losses to 61 17.7 million ($181.5 million) for the six Cablemedia is reportedly preparing a bid for another UK months ended June 30, compared to the same period a cable group, Videotron. There had been reports earlier year earlier. Revenue rose 14% to úl33.5 million. The that Deutsche Telekom was mounting a separate bid for company expects a positive cash flow later this year. Canada's Videotron. The poor results came just as CEO Alan Michels resigned reportedly due to differences with the board. BSkyB bulks up Financial officer Stephen Davidson has been named to News Corp. -backed UK pay -TV operator BSkyB will succeed him. launch 11 new channels on its analog package on Aug. 16. The services include a second entertainment channel, Sky BBC World to launch in Latin America 2, beginning Sept. 1, which will feature shows such as The UK's BBC has confirmed it will launch news service MCA's Xena: Warrior Princess. Melrose Place and Late BBC World in Latin America in September. The service Night with David Letterman. A third dedicated sports will initially be available in Venezuela, Brazil and Mexi- channel, 3, will launch Aug. 16 and will offer a co but will be available in the rest of Latin America and "wider choice of events and greater depth of sports cover- the Caribbean region in the second quarter of 1997. age," featuring UK Nationwide Football League, Coca - The service will be carried on Galaxy Latin America's Cola Cup and U.S. PGA Tour golf. Landmark Communi- DirecTv package. cations' The Weather Channel will bow Sept. I, WBTV: -By Debra Johnson and Nicloe McCormick

70 August 12 1996 Broadcasting 8 Cable