In a "precedent-setting ruling," the Canadian Radio-television and Telecommunications Commission (CRTC) has ordered Bell Mobility "to provide exclusive NHL and NFL mobile content to its wireless rival Telus," according to Vanessa Lu of the TORONTO STAR. CRTC Chair Konrad von Finckenstein said, “Consumers should have choice.” But Bell said that it "doesn't have the right to sublicense or resell this content," and the NHL said that it "would object to being compelled to share its programming outside the exclusive contract it has with Bell." Telus in January "filed a formal complaint" with the CRTC over "what it called 'undue preference' for Bell." The CRTC "has made it pretty clear that it believes all wireless carriers must have access to programming broadcast on television, including hockey games and other live events, for a fair price." It noted that while Telus "had access to certain sports programming, it was not comparable, given the popularity" of the NFL and NHL. Bell in a statement said that it "was studying the CRTC’s decision and was considering an appeal." NHL VP/Media Relations Frank Brown said that the hockey content is "not Bell's to sell and the league would object to such a move" (TORONTO STAR, 12/13). Telus in its complaint said it has had "numerous meetings" with NHL and NFL officials, and both "have indicated that they would consider assigning sublicensing rights to Bell at its request." The GLOBE & MAIL's Susan Krashinsky notes Bell has until Jan. 30 to file a report to the CRTC on "how it will ensure that Telus has access to its NHL and NFL content at reasonable terms." If it "fails to offer that content to other wireless providers by that date, the CRTC would most likely call a hearing into the matter." The ruling "does not affect last week’s deal" for Bell and Rogers Communications to buy a majority stake in MLSE because the CRTC "had already released new rules in September, banning such exclusive content" (GLOBE & MAIL, 12/13).
BEHIND THE SCENES OF MLSE DEAL: The GLOBE & MAIL's McNish, Perkins & Robertson report the Ontario Teachers' Pension Plan "was preparing to shake up the board" of MLSE and replace Chair Larry Tanenbaum after the "apparent failure of takeover talks in late November" with Bell and Rogers. Sources said that the plan was an attempt to remove Tanenbaum and "recruit new independent directors with sports and media experience." Sources said that the threat "was never made directly" to Tanenbaum. But the OTPP "let it be known through various channels that it was going to be making a number of changes at the top of Canada’s largest sports and media company." Within days of its "extraordinary manoeuvre," Tanenbaum "made an overture to a BCE executive shortly after Nov. 25 that pushed the takeover deal to the finish line last week." Sources said that Tanenbaum "removed a costly demand for broadcast rights at MLSE that had stalled talks for weeks" (GLOBE & MAIL, 12/13).
