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The traditional wireline cable monopolies now face competition from several reasonably close substitutes: (1) DTH satellite broadcasting services (up to 100 channels, but not local ones). The first licences were awarded in 1995, but for a number of reasons, service did not begin until April 1997. (2) LMCS or Local Multi-point Communication Services, i.e., a form of "wireless cable TV" delivered somewhat along the lines of cellular telephone to small receiving dishes and set-top descrambler units. Three licences were awarded in October 1996. (3) MDS or Multi-channel, Multi-point Distribution System is another form of digital, "wireless cable" distribution which can supply over 100 channels. It is easy to build and install and less expensive than wireline cable infrastructure-and it can offer local TV stations and Internet access. It uses tall microwave towers about 100 kilometres apart sending signals to small "flat plate" antennas. A set-top box unscrambles the signals. The cost of the customer's equipment is about the same as for DTH. The CRTC first licensed MDS in December 1995. (4) On December 4, 1996, the CRTC (in Decision 96-775) granted a license to Image Wireless Communications Inc. for MDS radio communications services. Image will offer encrypted digital signals for about 50 services including basic TV signals plus discretionary and pay TV services. Later it could offer 100 to 150 channels. Wireless cable service began in Toronto in August 1998. (5) In 1998, telephone companies could be licensed by the CRTC to offer cable TV services. NBTel received the first such licence in June 1998, but it will not offer service until 1999.

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Last Modified: Wednesday, October 20, 1999.