Higher cable bills loom
Higher cable TV bills could result from proposed changes to the way Bermuda?s news and home-grown programmes are broadcast to the Island. And there is a possibility viewers might need to erect an antenna on their home to watch local news and other Bermudian content programmes in the event of talks completely breaking down over cable TV broadcasting fees.
The Government is seeking to alter the rules and open the door for Bermuda-based TV stations to reap some income from having their programmes shown on cable TV. Cable TV operators are already under a ?must carry? obligation to show local TV channel broadcasts, but now they face being charged for doing so as well. Bermuda CableVision general manager Jeremy Elmas said the Government was seeking to alter the current ?must carry? regulation to a ?must carry & must pay? deal.
He argues that Bermudian broadcasters already benefit from having their programmes carried into homes on cable networks, particularly as there are places on the Island where free-to-air terrestrial TV signals cannot be picked up clearly by antenna.
This gives a wider potential audience and therefore stronger appeal for advertisers to pay for airtime during the commercial breaks, according to Mr Elmas.
But the Government is concerned local broadcasters are missing out on potential revenue while the cable operators are benefiting from having additional viewers turning in for the local shows.
To address this apparent imbalance the Department of Telecommunications has come up with a near watertight plan that would ensure uninterrupted cable broadcasting of the Island?s channels VSB, ZBM and ZFM, even in the event of a stalemate in negotiations on fees to be paid by cable TV companies for the privilege of showing local shows.
If Parliament gives the green light to the proposed amendment then cable TV operators CableVision and WOW might have to start paying local TV channels for showing their programmes.
The ?antennas? scenario would only become reality if the Telecommunications Minister gives ?express permission? to cable TV companies to pull the plug on local broadcasts.
A more likely outcome is that cable customers will have to pick up any extra cost resulting from cable networks paying for local programmes.
The Department of Telecommunications has safeguarded its right to step in and ensure there is no interruption to the broadcasting of Bermudian channels on cable should any negotiations on fees become protracted.
But Mr. Elmas forecasts viewers will ultimately be the ones to lose out by being made to pay more for a service they already receive.
?If the Ministry proceeds down this path the costs would have to be passed to the consumer,? he said.
His company is investigating the legality of the proposed amendments to the Cable Television Service Regulations 1987 and he believes viewers themselves should be consulted on the idea before it becomes law.
?We are looking to see if they are allowed to just change the legislation at the Minister?s whim. I?m not saying it?s a done deal, but it did not seem that they wanted to consult with anyone,? said Mr. Elmas. ?We would like to know what our customers think.?
He believes cable viewers should be consulted to find out how much they would be willing to pay extra to be able to watch the local channels. was yesterday unable to reach Telecommunications Minister Michael Scott.
But in a letter to TV companies and cable operators his department explained that, in its view, the cable companies were making money by being allowed to show the Bermudian shows without charge and there should be a mechanism that allows the local TV channels to ask, if they wish, for some payment from the cable companies carrying their programming.
It said any disputes about the level of payment would be referred to the Telecommunications Commission and at no time, even during a payment dispute, will the local broadcasts be taken off cable TV without the ?express permission? of the Minister.
In a second letter, dated November 15, Director of Telecommunications William Francis said: ?The Minister has concluded that the proposed amendments are in the public interest and that he shall begin the legislative process to bring the revised regulations into effect.?