Diversity is frequently preached as a wise philosophy for forward-looking Canadian TV enterprises - and it is also the mandate of a proposed digital service with a licence application that is - controversially - being considered by the CRTC.

Canada One TV plans to produce and commission mainstream, high-quality English-language drama that reflects Canada's racial and cultural diversity. The channel's backers tell the CRTC they will spend more than $2 million on script and concept development over a seven-year licence term, and air two hours of original Canadian drama between 7 p.m. and 10 p.m. weekly by year five, and three hours between 7 p.m. and 11 p.m. by year seven.

"Factoring together the low presence of visible minorities and Aboriginal persons in English-language Canadian drama, and the lack of viewing by Canadians to Canadian drama programming on Canadian services, the need for Canada One TV becomes even more apparent," writes majority shareholder Diversity Television in its CRTC application.

Former VisionTV VP Paul de Silva, a partner in Diversity Television with Amos Adetuyi and Alfons Adetuyi of Toronto prodco Inner City Films, says the channel would fill a gap in reflecting Canada's diverse cultural communities and by finding a place in the rapidly expanding ethnic market.

Also on board is Halifax's DHX Media, headed by Michael Donovan, which would invest $5 million to launch Canada One, along with $2.5 million from the Royal Bank of Canada. CBC has provided research support, and could possibly provide technical facilities and collaborate on programming, says de Silva.

A sample programming grid submitted with the application includes entries such as Epitome Pictures' Degrassi franchise and Protocol Entertainment's Saddle Club, and includes ethnic-based programming from around the world. DHX will also provide programming from its catalog.

The channel would be financed primarily through subscriber fees, de Silva explains, and wouldn't be expected to turn a profit until the end of its first licence term, with subscriber fees projected to increase from $29.3 million in year one to $47.2 million in year seven as the digital universe expands, while national advertising is estimated to grow from $735,000 to $3.5 million over the period. The channel is proposing a monthly fee of $0.50 per subscriber.

Canada One also pledges to annually allocate at least 65% of the previous year's gross revenue, or about $26 million, to Canadian programming - 80% of which would be earmarked for drama. Nearly $5 million would be spent over the licence term on drama pilots, and about $4 million on training minorities to work in front of and behind the camera. Original programming would require at least two members of a visible minority in key roles of producer, writer, director or actor. No sports, news, religion or game shows would be included.

The catch - and the source of the controversy - is that Canada One has applied for digital basic coverage. That means the channel would be a must-carry for distributors, and would have to be taken by all digital TV subscribers. By contrast, Category 1 digis can be carried in discretionary subscriber tiers.