The CRTC this month shot down controversial proposals put forth by the cable companies and advertising upstart 49th Media, coming down on the side of broadcasters who had vigorously argued that both plans stood to undermine the Canuck TV trade. At the same time, the reg left the door open for 49th Media to reapply.

In a Nov. 7 open letter to Canadian Cable Television Association head Michael Hennessy, the feds turned down the CCTA application to allow cable companies to import premium U.S. channels, including HBO, Showtime and ESPN – arguing that it would cut into the sale of programming rights to other broadcasters. CCTA wanted to bypass existing broadcasters and sell the channels ‘as is’ on the digital tier.

The commission also dismissed arguments that the cabler plan might curb piracy. CCTA had suggested that lack of choice on the Canuck dial is driving viewers to steal U.S. signals, but the feds say they failed ‘to give adequate consideration to other incentives for the theft of signals’ such as avoiding subscription fees.

That same day, 49th Media, which had applied for the right to sell Canuck ads on U.S. channels such as CNN and A&E, was told its paperwork is incomplete and that it needs to prove that the American channels are onside.

‘The application cannot be considered complete,’ wrote CRTC general secretary Diane Rheaume, but added that the commission made ‘no decision on its merits or on any related policy issues.’

Glenn O’Farrell, president and CEO of the Canadian Association of Broadcasters, applauds both decisions. ‘The commission has done the right thing,’ he says. ‘We’re very pleased with their firm resolve to uphold the policy framework.’ CAB has been the most vocal opponent of both proposals.

Kevin Shea, head of 49th Media, admits he is discouraged. ‘The commission wanted to see signed evidence and we thought we provided that,’ says Shea. But 49th will reapply, he says, and may soon seek stronger commitment from its U.S. partners.

‘I think the commission has clearly stated that this is a significant policy issue that needs to be addressed,’ he says, quoting word for word from a dissenting opinion filed by CRTC commissioner Stuart Langford.

Langford disagreed with the ruling of his fellow feds and in his own three-page letter argued that Shea’s proposal should proceed to the public hearing phase, an encouraging sign for the future of 49th Media.

Returning the application on the ‘questionable’ grounds that it is incomplete denies ‘the applicant the process to which I believe he is entitled’ and prevents the public from becoming better informed on the topic, says Langford.