CRTC says cable companies not offering fair $25 basic TV deals risk licence renewal

If their $25 basic TV packages fail to meetCRTCexpectations, cable companies could face trouble as they try to renew their broadcast licences.

Canada's broadcast regulator recentlydemandeddetailed reports on providers' new basic TV packages as part of their licence renewal process, CBC News has learned.

Within weeks, the commission will make those reports public. And Canadians will then be invited to wade in and tell theCRTCwhat theythink.

"We'll takeall those comments into consideration as we come up with a decision to renew [TV providers']licences," saidCRTCspokesman EricRancourt.

He addedtheCRTCcould impose conditions on companies not offering the type of TV deals mandated by the commission.

CRTCinvestigates

The CRTC has received hundreds of complaints about the $25 basic TV packages being offered.

• Consumer groups demandCRTCaddress complaints over 'so lame' $25 basic TV packages
• CRTCflooded with complaints about new $25 skinny basic TV package

One big customer beef is that when extra fees are added, the deals can become pricey.

Although it hasnow demandeddetails from the cable companies, theCRTCsays it's not yet passing judgment.

"It's premature to say at this point whether or not we're concerned,"Rancourtsaid.

"Once we have the facts in front of us and once we've given the public an opportunity to comment, then we'll be in a better position to assess that."

TheCRTCasked cable companies about extra costs such as mandatory equipment fees, pricing for added pick-and-pay channels, plus how the basic package compares to other TV deals they offer.

The commission also requesteda precise tally of how many customers signed up for the packages and the number of complaints companies have received about them.

Why theCRTCwants answers

The commissionintroducedregulationslast year that requiredservice providers offer a "skinny" basic TV package for $25 or less by March 1. They also had to let customers top up the plan with individual pick-and-pay or small channel bundles.

TheCRTChad billed the new deals as a way to "maximize choice and affordability for Canadian TV viewers."

But many Canadians who were hoping to sign up for the packages have since reported they feel let down.

• New $25 basic TV package: A deal many consumers simply won't want

Some have found that once extra fees or channels are tacked on, an "affordable" basic package can become more costly than their current, larger TV package.

That's because the new basic plans rarely come with any of the deals typically offered, such as discounts for added equipment.

So customers get stuck paying full price for extra necessities like a digital TV box and installation costs.

Bell's pricey basic package

For example, customers purchasing Bell Canada's basicFibeStarter pack also have to shell outfor the telecom'sinternetservice plus PVR rental.

A Bell customer service representative pricing the option said aFibeStarterpack plus unlimitedinternetand PVR would total $119.90 a month.

It's a far cry from the original $24.95 price tag for Bell'sbasic TV plan.

• Bell tells staff to downplay new $25 basic TV package ordered byCRTC

"All Bell's TV packages meet all CRTC requirements," spokesman Jason Laszlo told CBC News.

Customers have also complained that added pick-and-pay channels and theme-pack prices are too high.

For example, Rogers only offersadded small-channel packages at this point, which can run as high as $18 each.

"It is still aripoff,"commented one reader to CBC News shortly after providers started offering the new deals.

"Thanks for nothingCRTC," wroteanother.

Industry analysts have speculated that some TV providers purposely made the basic deals unattractive so customers wouldn'tpare down their more lucrative TV plans.

"They're putting every obstacle they can into people's way," said BruceCranwith the Consumers' Association of Canada.

He claims his association, like theCRTC, has been flooded with hundreds of complaints about the $25 TV packages.

He adds that they're still pouring in and complaints now include people who got the basic package and are unhappy with it.

"Some people who got the skinny package want to go back,"Cransaid.

• CRTCreports 66,000 Canadians have new $25 basic TV, but complaints persist

He added that his association has tried repeatedly to meet with theCRTCto address the complaints but has been shut out.

The commissiontold CBC News it can't discuss an ongoing matter with anygroup.

"Because of the way our process is structured, it would be inappropriate," theCRTC'sRancour said.

But that position has now been reversed, according toCran.

Will it all matter?

Late yesterday he said theCRTCfinally agreed to meet with his association this coming Monday.

There are no guarantees theCRTC'sdemand for cable companies to hand over informationand the invitation for public input will lead to change.

But what is clear is that the $25 basic TV offerings have struck a nerve and theCRTCfeels pressure to do something about it.