Canada's full transition to digital television "must remain on track" to keep up with technological advances, Heritage Minister James Moore said Tuesday.

Minister of Heritage James Moore speaks during Question Period in the House of Commons on Parliament Hill in Ottawa in this November file photo. (Sean Kilpatrick/Canadian Press)Canada's broadcasting industry must make the change to avoid being left in the dust by the United States, which is readying for an imminent digital switch, Moore said in a speech at the annual conference of the International Institute of Communications in Ottawa.

"If better picture-quality signals are available from our neighbours, Canadians will turn increasingly to American stations," he said.

"This will have an impact on Canadian broadcasters who rely on American programming and regulatory benefits, such as simultaneous substitution, to generate revenues and create Canadian programming.

"The transition to digital is inevitable."

The United States will switch over to digital transmission in February.

Analog transmissions will stop in Canada by Aug. 31, 2011, and will be replaced by digital TV, the Canadian Radio-television and Telecommunications Commission announced in May 2007.

That means people picking up free channels such as the CBC through the air with conventional "rabbit ear'' antennas will no longer be able to do so.

To properly receive the new digital programming, consumers with those aerials will have to buy converter boxes, which now cost about $200. Another option is to purchase a new TV set that is compatible with the new signals.

But industry experts have said that by the time the changes take effect, the cost of the converter boxes could be much more affordable, and the need for these boxes could be completely eliminated by TV manufacturers, which would build them into the new sets.

The U.S. has tried to ease the transition for its citizens by providing $40 coupons that reduce the cost of many of the boxes available at retailers to around $20 US. Canada has yet to announce such a program.

10% use rabbit ears

About 10 per cent of Canadian households still use rabbit-ear aerials, according to the CRTC.

Moore acknowledged the new changes will not be easy.

"That being said, the transition to digital must remain on track."

The benefits of digital television for Canada's broadcasters, he said, will lead to "new profit-generating services, such as interactivity, web-based programming and even video gaming."

"Canadians like me want [high-definition] content. We want interactivity and we want mobility," said Moore.

"My computer, my BlackBerry, my iPod, my PVR? They are an integral part of my life. I am a multi-platform, multi-tasking guy who wants information in real time."

Interactive features

Digital TV will provide higher picture quality and allows for two-way transmission, enabling interactive features such as video-on-demand.

European countries are leading the charge to digital transmission. Luxembourg and the Netherlands have already made the switch, while Austria, Germany, Sweden and Switzerland have begun the transition.

The Federal Communications Commission, the U.S. broadcast regulator, auctioned off some soon-to-be-vacated airwave frequencies in January, with mobile phone companies Verizon and AT&T dominating the bidding.

The U.S. will retain some of its airwaves for emergency transmission purposes.

There has been no such auction of Canadian airwaves, but one is expected to occur ahead of the changes. The auction could prove lucrative for the federal government — the auction of wireless airwaves earlier this year fetched $4.25 billion.

Neither the CRTC nor its U.S. counterpart, the FCC, have mandated a shutoff date for the transmission of analog signals over cable. Both regulators favour a market-driven approach, where providers and consumers phase out the analog technology.