CableVision has dropped Channels 7 and 9, placing a question mark over the future of local television stations.

As from 5 p.m. yesterday the company switched off the Bermuda Broadcasting Corporation (BBC)'s ZBM and ZFB channels.

BBC CEO Bill Craig said last night: "I am speechless. I'm stunned and flabbergasted that a company would have such complete disregard for its customers to inconvenience them in this way.

"The time they have chosen to do this, 5 p.m., people are driving home to watch Oprah (Winfrey) and ZBM news.

"Why couldn't they have done this in the morning? This is designed to cause the most discomfort to their customers."

The switch-off has taken the dispute between BBC and CableVision to another level, and is something Mr. Craig now says is of "public interest" as it could affect the survival of local broadcasters.

Announcing the switch-off yesterday, a CableVision spokeswoman said: "Bermuda CableVision today announces that, in light of Bermuda Broadcasting Corporation's continued demand for payment to carry its channels over CableVision's network, CableVision must remove local broadcast channels 7 and 9 from its system, effective today at 5 p.m."

The following message was found on the television channels instead: 'CableVision regrets to inform you that for legal reasons we have ceased transmission of this channel effective January 21, 2009.

"We apologise for any inconvenience this may cause you and invite you to visit our website (sic) for more information: www.cablevision.bm.'

The dispute began on November 30 when CableVision announced plans to drop Channels 7 and 9 because BBC wanted a fee. In August, the Cable Television Service Regulations 1987 were amended to allow broadcasters to choose between a 'must carry' service i.e. free, or to become a 'retransmission consent' service.

In the US the latter enables broadcasters to negotiate a deal whereby cable companies must pay for permission to re-transmit their signal.

BBC opted for 'retransmission consent' status and on November 30 entered into a 60-day negotiation period with CableVision, which Mr. Craig says the company has now reneged on.

Mr. Craig said: "We're still in this negotiation period until February 1, and under the Telecommunications Act, CableVision is obliged to negotiate. And if we can't come to a settlement then either one of us can go to the Telecommunications Commission and ask them to take a determination.

"That's the process we're in, but CableVision is now involved in this piece of theatre and total disregard for their customers."

CableVision has said it does not want to pay for ZBM and ZFB. On January 9, Chief Justice Richard Ground ruled the company did not need the Telecommunications Commission's consent prior to dropping the channels. The company switched them off yesterday.

"They just aren't playing fair," said Mr. Craig last night.

He said a fee was agreed with WOW two months ago. "We've had no problems with them," he said. "But CableVision is a monopoly they have around 20,000 customers compared to WOW's 3,000. It means there are consequences from all of this.

"How we survive will depend on what support we get from our advertisers and the public.

"We think both of them will realise there are some bigger issues at play here, such as the sanity of the broadcasting system. You need multiple voices, and if that goes, if you start killing off the TV stations, you won't have those voices. This is important in a democracy."

The BBC head said: "We don't get money from Government, we rely on advertising fees and retransmission consent fees. So something like this today makes a tough business even more trying. If we go off the air and VSB goes, then the cable companies are smiling because they will have no over-the-air free competition."

Mr. Craig said about 4,000 homes pick up Bermuda's television stations free with antennae.

"This is an economic issue and there's a whole public interest in it."

Referring to CableVision already charging a $30 fee to its customers for its 'economy' package, a basic tier which includes local broadcasters, Mr. Craig said: "Our argument is you've been charging for our signal and we just want a fair piece of it.

"CableVision is a private enterprise picking up a freely available signal and charging people to do it. They are acting like a reformed thief in that all of a sudden they're being asked to pay for a product which they got for free and then sold to other people."

He said he was still hopeful a deal could be brokered, but that CableVision "has been ignoring our e-mails and calls".

"The Minister (of Telecommunications) does have the power to step in," said Mr. Craig. "I'm also optimistic people will wake up and go over to WOW. That might make CableVision reconsider."

One CableVision customer told The Royal Gazette last night that was exactly what she was going to do. "I'm extremely annoyed to come home and find I have no Channel 7 and 9," said Angel Nottingham.

"I watch these channels frequently, and so I'm now going to switch to WOW. I think CableVision should have given people more notice, especially older customers. My grandmother stays up for the news, so some notice would have been good."

Terry Roberson, CableVision's general manager, said last night: "Bermuda Broadcasting has chosen 'retransmission consent' status under the new law, and is not willing to let us carry these channels for free. Under these circumstances, since we are not willing to pay for them, as that would mean increasing our subscriber rates, we must remove them from our system immediately. To keep these channels on any longer would place us in violation of the law."

He said: "We sincerely regret the inconvenience this causes for our customers, to whom we gave notice back in early December that we would drop these channels from our system since 1) payment was being demanded and; 2) keeping them on would mean increasing our fees to subscribers.

"Our position remains the same: we simply do not believe our customers should have to pay for a service that is free to others by using an off-air antenna. All our efforts with respect to this issue have been designed to protect the interests of our customers, and that means not raising rates needlessly. We are sorry for the inconvenience, and hope our customers will understand our position and our ongoing commitment to defending their interests."

Attorney General and Justice Minister Kim Wilson was unavailable for comment on the issue last night. The Ministry of Energy, Telecommunications and E-Commerce issued the following statement: "We are disappointed in the decision made by CableVision. However this is a commercial matter between CableVision and the BBC as was reinforced by the court's ruling on January 9.

"We recognise the impact on the public and the Ministry is hopeful the two parties can come to a swift resolution."

What do you think? Email: news@royalgazette.bm.