GRANT ROBERTSON

Globe and Mail Update

Satellite television providers won't be able to offer satellite radio on their service without first applying for changes to their broadcast licences, which puts a cloud of uncertainty over the strategy.

Bell ExpressVu sought to add satellite radio to its lineup this year, a move that was backed by subscription radio companies Sirius Canada and Canadian Satellite Radio (CSR), which operates the XM Canada franchise.

Sirius and XM, want to expand their audience by putting their signals on new platforms, including cell phones and TV.

However, the Canadian Broadcasting Corp. protested the idea, arguing that satellite radio constitutes a new broadcast operation, not merely a change in programming for the satellite TV carriers.

The Canadian Radio-television and Telecommunications Commission (CRTC) agreed. In a ruling Friday, the regulator said it will require satellite TV companies to argue for licence amendments if they want to carry the radio feeds.

Satellite TV providers "do not have the authority . . . to distribute the CSR and Sirius programming in the absence of a specific condition of licence allowing such distribution," the regulator said in its ruling.

The decision impacts Canada's two satellite TV companies, Bell ExpressVu and Star Choice, but also hinges on an application by cable carrier Rogers Communications.

Rogers has applied for a licence amendment to carry satellite radio on its digital cable TV service. A decision is expected in the coming weeks.

If Rogers is successful, it would likely mean StarChoice and Bell ExpressVu could secure new licences for themselves. However, if the cable company is blocked in its bid, it would also make the addition of XM and Sirius to satellite TV unlikely.

In a similar move to expand its market, XM signed a deal with Telus this year to offer select channels on specially equipped cell phones for a monthly fee.

CBC is a part-owner of Sirius Canada, but also operates the Galaxie pay music channels on digital cable and satellite TV, which would compete with the proposed service on satellite television.

Bell ExpressVu said Friday it was disappointed in the decision.

"In our view it would seem incongruous of the Commission to allow these services to reach Canadians in their vehicles and their homes using one form of satellite receiver, but not using an ExpressVu satellite receiver," Bell ExpressVu said in a statement.

"The Commission did not close the door, however. We are currently looking at other approaches to gaining the CRTC's authority to carry these services. The large cable operators are seeking similar authorization."

It's gonna come down to who has the deepest pockets to fight the CRTC ruling...Rogers has VERY deep pockets, so there is a good chance it will happen.

Rogers likes to push there way around wont be the firsttime they have taken on the CRTC.