ARCHIVED -  Decision CRTC 97-122

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Decision

Ottawa, 27 March 1997
Decision CRTC 97-122
Halton Cable Systems Inc.
Rockwood, Ontario - 199611075 - 199611307
Licence renewal and amendments
Following Public Notice CRTC 1997-21 dated 21 February 1997, the Commission renews the broadcasting licence held by Halton Cable Systems Inc., for the cable distribution undertaking serving Rockwood, from 1 April 1997 to 31 August 2003.
The operation of this undertaking is regulated pursuant to Parts I, III and IV of the Cable Television Regulations, 1986 (the regulations) and the licence will be subject to the conditions in effect under the current licence, as well as to those conditions specified in this decision and in the licence to be issued.
Interconnection
The Commission approves the application to amend the broadcasting licence of the cable distribution serving Rockwood by authorizing the licensee to delete the local head end at Rockwood and to interconnect its undertaking, via optical fibre, with the cable distribution undertaking serving Georgetown, Acton, Milton and surrounding area, also owned by the licensee.
In approving this interconnection, the Commission has taken into consideration the fact that subscribers of both undertakings will receive the same number, variety and quality of signals as those delivered to all subscribers of Western Co-Axial Limited.
The Commission notes that, as approved in Decision CRTC 96-182 dated 31 May 1996, the Georgetown undertaking is interconnected, via optical fibre, to the cable distribution undertaking serving part of Hamilton, Dundas, part of Ancaster and surrounding area, owned by Western Co-Axial Limited, which controls the licensee.
The Commission approves the licensee's application for authority to distribute WNEQ-TV Buffalo, New York, a duplicate PBS signal, received via optical fibre, as part of the basic service.
In Public Notice CRTC 1996-120 dated 4 September 1996 which introduced decisions licensing new specialty and pay television services, the Commission stated that programming services distributed as of 6 May 1996 are protected from possible removal to accommodate new Canadian specialty services on analog channels. The Commission also stated that the Access Rules will apply to the services that form the second group of new English-language specialty services licensed in September 1996, by the earlier of: the deployment of digital technology by the distributor, or by 1 September 1999. Distributors that have not implemented digital technology by 1 September 1999 must provide, at that time, access to analog channels to these services, subject to the definition of "available channel capacity", as set out in Public Notice CRTC 1996-60 dated 26 April 1996.
The Commission notes that WNEQ-TV will not have been distributed on this cable system before 6 May 1996 and will, therefore, not be protected from removal to free up channel capacity. The channel that WNEQ-TV will occupy will still be considered as "available channel capacity", as defined in Public Notice CRTC 1996-60. Unlike the 13 new Canadian specialty services noted above, if there is a lack of channel capacity, WNEQ-TV will not be guaranteed carriage on this cable undertaking as of 1 September 1999.
Application to insert certain promotional material in the local availabilities of U.S. satellite services
The Commission approves the application for authority to alter the signal of U.S. satellite services for the insertion of promotional material in the local availabilities of those services, by adding the following condition of licence:
The licensee may, at its option, insert certain promotional material as a substitute for the "local availabilities" (i.e. non-Canadian advertising material) of non-Canadian satellite services. At least 75% of these local availabilities must be made available for use by licensed Canadian programming services for the promotion of their respective services, for the promotion of the community channel and for unpaid Canadian public service announcements. A maximum of 25% of the commercial availabilities may be made available for the promotion of discretionary programming services and packages, customer service information, channel realignments, cable FM service and additional cable outlets.
This approval is consistent with the approach taken by the Commission in Decision CRTC 95-12 dated 18 January 1995.
The Commission reminds the licensee that it is not prepared to consider applications to use such availabilities for the broadcast of commercial advertising.
Video games service
The Commission approves the application for authority to originate a video games service as a special programming service, offered on a discretionary basis.
The Commission stresses that all programming for the proposed interactive video games service is the responsibility of the authorized cable licensee. The Commission notes that the video games will be provided by Sega Canada Inc. (Sega, the video games supplier).
Based upon indicators of control outlined in Public Notice CRTC 1995-5 dated 13 January 1995 entitled "Policy Governing the Distribution of Video Games Programming Services" and on information provided by the applicant, the Commission is satisfied that the licensee will be, in fact, the operator of the service, and that this approval is appropriate. Accordingly, the following conditions of licence will apply :
1.  The video games service (the service) shall not include programming that is religious or political in nature.
2. The service shall consist only of:
a)  software and related information which will enable a person to select and play video games using broadcasting receiving apparatus located at the subscriber's premises; and
b)  ancillary programming consisting of promotional information concerning only the programming service and video games offered by the video games supplier, except for such games that are rated or found to be unsuitable for the cable service, provided such programming is broadcast in conjunction with programming set out in a) above and not on a separate channel.
3.  The service shall make the greatest practicable use of Canadian creative and other resources in the creation and presentation of programming.
4.  At least 10% of the total number of video games offered on the monthly menu shall be Canadian. Where fewer than 10% of the video games on the monthly menu are Canadian, the service shall be distributed on a channel that would otherwise be available, under the current linkage rules, for the distribution of a non-Canadian eligible satellite service as part of a discretionary tier.
5.  The service shall be in compliance with the CAB's "Sex-Role Portrayal Code for Television and Radio Programming", "Voluntary Code Regarding Violence in Television Programming" and "Broadcast Code for Advertising to Children", as amended from time to time and approved by the Commission.
6.  The video games offered shall be categorized, and information shall be provided to subscribers indicating, at a minimum, the suitability of individual games for use by children and adolescents.
7.  The licensee shall provide to the Commission, upon request, the monthly menu of the games offered during any month within the previous twelve months of the date of the request and indicate which games are Canadian.
In Public Notice CRTC 1995-5, the Commission had noted Sega's commitment to establish an Interactive Entertainment Development Fund to provide financial assistance to Canadians developing and producing new Canadian multimedia products. More specifically, Sega committed to contribute to such Fund on a monthly basis, depending upon the total number of paying subscribers obtained in Canada, an amount ranging from 3% to 5% of the gross revenues in the previous month attributable to the video games service.
The Commission has considered it central to its approval of this application that the licensee commit to ensuring that the terms of this commitment are met. Accordingly, and consistent with the approach taken by the Commission in Decision CRTC 95-591 dated 24 August 1995, the Commission requires that the licensee ensure that the terms of the above-noted commitment form part of any contractual agreement entered into with Sega for the provision of video games programming services and will consider the licensee accountable to the Commission for its fulfilment.
Employment equity
In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. In this regard, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
This decision is to be appended to the licence.
Allan J. Darling
Secretary General

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