Canada Tells TV Viewers To Pull Plug Government Clamps Down On U.S. Satellite Transmissions

Trying to stamp out a high-tech “gray market,” the government is threatening criminal charges against the estimated 200,000 Canadians using satellite dishes to receive U.S. television programs that aren’t supposed to cross the border.

In a brochure issued Wednesday, the industry ministry makes clear for the first time that purchasers as well as sellers of unauthorized satellite services could be fined or even jailed.

“Retailers cannot legally sell such equipment, and everyone involved - pirate, retailer and purchaser - could be charged with a criminal offense,” says the pamphlet, which is being distributed to retailers and importers of U.S. satellite equipment.

Despite the warning, it is unlikely viewers watching U.S. satellite TV in their homes will be raided by police. But there could be a deterrent effect on dealers, who are instructed in the pamphlet to inform customers which services are legal and which are not.

Because of technical hurdles and regulatory delays, Canada has no satellite TV of its own. U.S. programming is widely available close to U.S. border cities and through cable-TV services, but many consumers still feel short-changed.

Worried that viewers will turn increasingly to unauthorized American suppliers for direct-to-home (DTH) television, the government last week asked Canadian firms to bid for a coveted satellite slot in space.

Industry Minister John Manley issued that call Nov. 7, a week after the Federal Communications Commission in the United States rejected a proposal that would have enabled Telesat Canada to share Canadian satellite capacity with American partners.

“I’m very concerned about the growth of the ‘gray market’ in DTH satellite TV,” Manley said. “We need to get our own industry going so that Canadians have a legitimate way to obtain these services.”

Estimates suggest about 200,000 Canadians have tired of waiting for satellite TV to arrive and have purchased equipment and services through the United States. They need an American address for billing purposes.

The new pamphlet warns that a decoder authorized to catch satellite signals in the United States might be illegal to use in Canada.

“Viewers - who might believe, or be told that such subscriptions are legitimate - may be asked to provide a U.S. address, or have one provided for them,” the brochure says. “This is a sure tipoff the service is not legal.”

The pamphlet warns that Canadians using the “gray market” could suddenly find their programming cut off, and would have no legal recourse.

The industry ministry hopes to get a Canadian satellite service started by spring. At least four firms have expressed interest.

Manley was openly bitter at the FCC’s decision to reject the application by Telesat Canada and Colorado-based TeleCommunications Inc. to share satellites. The FCC, he said, spurned the bid as part of a broader U.S. government effort to weaken Canadian culture.

“We don’t intend to be pushed around in that way,” Manley said.