Quebecor Media has hit a snag in an effort to have its new 24-hour news network designated as a must-carry channel on cable and satellite TV systems, The Canadian Press has learned.

The broadcasting regulator has told Quebecor its proposed Sun TV news channel, dubbed "Fox News North" by rivals, won't be considered for a must-carry Category 1 licence.

The Canadian Radio-television and Telecommunications Commission says in a letter obtained by The Canadian Press that it announced back in March it won't consider new Category 1 licences until October 2011, after the switchover of all TV signals to digital.

Instead, the CRTC says Quebecor could apply for a licence to operate as a competitive news service, which could be considered immediately.

That means the new station would have to negotiate with cable and satellite carriers for a place in their lineup.

Currently, distributors must offer customers both the CBC News Network and CTV's News Channel, but that preferred status is due to expire sometime next year.