Canadian Satellite Radio

As expected, CRTC received numerous applications extending interest in offering the service. Three companies were short listed and filed; XM in partnership with Canadian Satellite Radio, Sirius in partnership with Standard Broadcasting and the CBC, and finally CHUM limited in partnership with Astral Media.

CHUM limited together with Astral Media surprised a lot of people because they came up with a different proposal than their competitors. The proposal was simply a radio service that was to be transmitted through the already existing global DAB transmitters. This meant that the transmitters would first receive the satellite transmission, and then distribute the broadcast to end user receivers.

Whereas XM Radio and Sirius offered a Canadian and a US technology approach to the service, CHUM and Astral Media's proposal was typically Canadian. That not withstanding, XM radio and Sirius stood in a better chance because the area their satellites intended to cover was already in existence in some parts of Canada and even some target audience had already started using the service.

Nonetheless, all the three applications were approved in 2005 by CRTC under the following conditions which the three companies had to adhere to since they are part of Canada's broadcasting regulations.

85% of all content produced in the Canadian channels must be Canadian
25% of music aired on any Canadian channel should be new Canadian music
25% of Canadian channels should be in the French language
25% of music aired on the Canadian channels should be for up-coming artists
A minimum of 8 channels had to be produced in Canada and for each channel, 9 foreign channels could broadcast.

Negotiations were underway to alter the rules in favor of the three companies. For instance, both XM radio and Sirius offered to play 50% French related content instead of the 25% as required. As a result, XM radio garnered 5 more channels in addition to covering the national hockey league games.

As expected, CHUM petitioned the decision posing that the presence of the US based companies would 'throttle' the all Canadian company by not allowing room for improvement. XM radio and Sirius viewed it as a way of CHUM wanting to attain domination over the Canadian satellite radio market.

Today, the people of Canada feel that the decision by CRTC didn't need adequate Canadian content. As a result, broadcasters promised to add more French and Canadian content. The decision by CRTC was approved by the Canadian Federal Cabinet on September 10, 2005 hence XM Radio and Sirius were launched on November 29, 2005 and December 1, 2005 respectively. XM radio's monthly subscription fee was $12.99 and a one off activation fee of $19.99 while Sirius monthly fee was $14.99 with no activation fee.

Although competitors are voicing concerns that the two companies may dominate the Canadian Satellite Radio, the two companies are projecting swift increases in the number of subscribers.

Source: www.xmradio.ca/about/index.cfm