This will be an encrypted system so they will use either NDS or Kudelski. Either way they will be able to buy receivers in bulk at around $100 each.
Why does it have to be either of those two, there are a number of other security systems out there for pay TV.
Of course, partnering with DirecTV or Echostar for hardware will provide the scale of users to make receiver relaistically affordable.
I don't thing the wholesale price for a a quality HD non-DVR DVB-S2 receiver would be that low. Maybe $199 at the lowest, which makes the $300 price realistic. You have to keep in mind most pay providers sell their receivers at cost or lower, on the hopes to pull in subscribers.
Bell and SD could offer this same service level tomorrow by offering the same deal with receivers and dish install at real - not subsidized - cost.
But as long as nobody else is giving away free locals, they won't.
Remember Primestar, USSB and Voom. If the US with 10X the population of Canada cannot support 3 satellite companies, how can Canada?
You might be right with Primestar, but I think their downfall was their inability to grow and innovate.
Voom was a niche HD service before HD became popular enough to support it.
USSB is a different case entirely, in that it wasn't competitive with DirecTV exactly, so they cannot be called a separate provider. Rather it was a co-provider alongside DirecTV, which carried one suite of channels, while DirecTV carried another, both on the same satellite and receiver platform, and one could subscribe to both with the one receiver.