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Legislation will be 'tax on cable viewers' claims CableVision

Terry Roberson

Cable customers will have to pay for a service free to non-cable customers because of new legislation, according to CableVision boss Terry Roberson.

Mr. Roberson says under the proposed new law CableVision will be forced to start charging subscribers for local broadcasters' programming, channels 7, 9 and 11.

However, non-cable viewers will continue to receive those channels for free by using a set-top antenna.

Under the old law, local broadcasters had to allow their network to be carried over the cable system. The new legislation, announced by the Ministry of Energy, Telecommunications and E-Commerce, gives local broadcasters the option of charging cable companies to carry their programming, which CableVision says in turn will force a charge on cable viewers.

While CableVision is unhappy with change, the Bermuda Broadcasting Corproration (BBC) welcomed it.

Last night the BBC claimed CableVision had been broadcasting copyrighted material without its consent for years.

Mr. Roberson said in a statement: "In essence, the new legislation will create the equivalent of a cable broadcast tax for cable customers.

"To date, we have seen little discussion of this matter in the public arena, and we feel it is important that consumers understand the implications of these changes to the legislation.

"For many years now, CableVision has been providing free coverage for the entire Island to the local broadcast channels by carrying their signal over our cable system free of charge, as the 'must carry' regulations required.

"Moreover, we have never charged our customers for this service, which clearly has benefited the broadcasters since without CableVision their signals cannot reach all Island residents. We saw no reason to change this situation. However, today, under the new law, cable customers will ultimately be forced to pay."

In a statement issued last night, the BBC said: "Cablevision have been charging the Bermudian consumer for copyrighted work that they do not own and the Bermudian Consumer has been paying this fee without knowing for years.

"The proposed legislation just puts an end to the injustices that the Bermudian consumer and the Bermuda Broadcasting Company has been forced to endure for years."

The BBC pointed out that the contracts it hold with ABC and CBS did not allow other television providers to broadcast the US networks' programmes. The BBC said it had struck a deal with WoW (World on Wireless) to broadcast its material, but "CableVision has so far refused to enter such an agreement".

After years of lobbying the Government, the BBC welcomed the proposed change in the law.

"It is the view of the BBC that it is highly unfortunate that CableVision has charged its customers for a service for which CableVision has not paid royalties for," the BBC's statement added.