Lobbying from broadcast operators is intensifying amid reports the federal government is ready to ask the CRTC to revoke its decision to licence satellite radio.

"Everything suggests that the cabinet will ask the CRTC to overturn its decision," an official close to the file said in an interview with The Canadian Press on Friday.

In June, the federal broadcast regulator granted the first satellite radio licences to Sirius -- a consortium of Radio-Canada and Standard Radio -- and a company called Canadian Satellite Radio (CSR).

The two companies plan to beam between 60 to 100 commercial-free music channels for $15 to $20 a month, from U.S.-owned satellites to Canadian customers.

The Canadian Radio-television and Telecommunications Commission also allowed CHUM and Astral to deliver pay radio, which would be distributed via land-based transmitters. The companies hope the programming will become satellite after 2010.

But business and cultural groups appealed the decision of the CRTC to the cabinet, mainly on the basis that the services will not carry enough Canadian content.

Under the strict content guidelines laid out by the CRTC, each group must provide at least eight Canadian channels, and one francophone channel for every three English-language stations.

Both firms have decided to offer three channels in French.

As the federal cabinet met in Winnipeg on Friday, Canadian Satellite Radio lobbyists tried to persuade ministers not to refer the decision back to CRTC for reassessment.

John Bitove, the Canadian businessman who owns CSR, a partner of U.S.-based XM Satellite Radio, flew to Regina to press his case.

"This is just absolutely shocking," Bitove told CP.

Bitove has support from electronics retailer The Source by Circuit City (formerly Radio Shack), which ran full-page newspaper ads on Friday, asking the cabinet to allow the CRTC decision to stand.

The loudest voices in opposition stem from Quebec, where the artistic community contends there would only be a small number of French-language channels.

"So far, from what I understand, that's really the only issue that's been brought up -- that three French channels is not enough," Bitove said.

Bitove told The Globe and Mail that he promised to expand French content. "We don't intend to stay at three French channels forever," he said.

Pressure also came from Liberal MPs in the Quebec caucus who called for cabinet to rescind the licences.

"It looks like cultural dumping," Montreal MP Denis Coderre told The Globe on Friday. "We're not asking just to revisit it. We truly need to have it stopped and redo the homework."

Heritage Minister Liza Frulla told The Globe that she is examining the implications of the CRTC decision.

Frulla and Industry Minister David Emerson are consulting with stakeholders and preparing a proposal that will go to cabinet committees, and later, the full cabinet.

"Our mind is pretty much made up, but right now I am obligated to say it is among the three options," Frulla said.

Meanwhile, Prime Minister Paul Martin refused to reveal his decision. "It's a discussion that we will have in cabinet, and when we have it in cabinet, we'll tell you the result."

The government has until Sept. 14 to announce its decision. The cabinet can let the CRTC decision stand, cancel the licences, or refer the issue back to the commission for further consideration.

If the ruling is rescinded, Bitove has said his company will consider its legal options to pursue the matter in federal court.