The CEO of Bermuda Broadcasting Company (BBC) claims Bermuda CableVision cannot drop channels 7 and 9 from their cable packages because they do not have permission from the Broadcast Commission.

Bill Craig, new CEO of the company, called what CableVision is trying to do "sneaky" and said it had the money to pay a fee for rights to air the local channels.

Mr. Craig explained that, according to the Telecommunications Act 1986, a cable carrier cannot drop or change a channel unless approved by the commission and it must maintain existing services unless permitted by the commission.

Late last night it was announced the commission was meeting as a matter of urgency following complaints from the public about the proposed changes.

CableVision announced on Sunday it will be dropping the local broadcasts as a result of demands by the BBC.

General manager, Terry Roberson, had said in a press release: "Bermuda CableVision has for many years been carrying channels 7 and 9 under the must-carry rule, which obliged us to carry local broadcast channels for free.

"Under the new legislation, the BBC can either require CableVision to carry channels 7 and 9 for free on the old basis or charge CableVision a fee to carry local channels. BBC has now informed us that they will require fees to carry channels 7 and 9."

He continued: "While we have always been happy to carry channels 7 and 9 over our cable network free of charge, we simply do not believe cable customers should pay for something which non-cable viewers receive for free through an off-air antenna."

But Mr. Craig said in order for CableVision to get permission to drop the channels, it would have to go to the Broadcast Commission and go through a public hearing process by filling out applications and present its case. He said the BBC will be at that hearing whenever the date is set.

Darlene Ming, Television Programming Director for BBC, said there will be a hearing today which will most likely set the date for the public hearing.

As far as the fee to air the channels, Mr. Craig said they had discussed imposing a fee but had not come to an agreement because the month of November had been left open for negotiations and CableVision had refused to discuss prices.

He also said the BBC told CableVision it had to decide whether or not it would carry the channels before a fee was decided on and it disagreed.

"It's really outrageous what they are doing", he added.

Mr. Craig said: "It's OK for you to record a movie at home from HBO, but it's not OK to sell the tape. You could argue that because you pay the $12 a month for HBO it's yours. Our right is a communication exploitation right", he said.

"If it comes into your home off the transmitter, OK. But if someone brings it into your home as part of a package, we're entitled to that."

Mr. Craig continued: "Our argument is that here is the value in us being carried on cable. It allows us to continue broadcasting, allows us to get to people who don't want to pay."

He said there are about 8,000 homes who do not subscribe to cable while CableVision has approximately 17,500 customers compared to the other cable company, WOW's 2,500.

The CEO said the channels should be carried on CableVision because it can afford it.

"It's outrageous for them to say we're going to pass the fee on to our customers. It's a way of them protecting their hoards of cash", he said.

"Their notion that they just pass cost on to subscribers is not relevant because they are making so much money."

He added he was unable to say what the BBC would charge CableVision because they did not know the exact number of subscribers.

Mr. Craig said the BBC had reached an agreement with WOW who were OK with being charged to air channels 7 and 9.

Ms Ming said because of CableVision's stance, it has "imposed our ability to make money and clashed with the confidence with our clients".

As far as CableVision encouraging customers to view ABC and CBS from a link on its website, Mr. Craig said that is illegal because the BBC has all rights for those networks.

"We have all our agreements in paper. They're not papered", he added.

Mr. Craig also said he thinks CableVision is trying to damage their relationship with advertisers since the Christmas season has arrived.

"I don't think this is sincere. I think it's positioning. We look forward to the public hearing.

"We have a good story to tell. We want to improve the news and local programming. If we stay quiet, they're going to get away with it. But we're not going to stay quiet."

According to a statement from CableVision, local broadcasters are allowed to choose between a must-carry status, meaning their network be carried over to the cable system as it is today, or retransmission consent status, meaning the broadcast network charges the cable company to carry the programming which would increase the cost of cable.

CableVision also said it had conducted research and found that 83 per cent of their subscribers said the programming should be free.

Last night a Minister of Energy, Telecommunications and E-Commerce said: "We have received complaints as a result of Bermuda Cablevision's notice...due to the heightened public interest in this matter, the Telecommunications Commission is meeting today to review these complaints."