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Canadian Learning Television Limited
Across Canada - 199800678
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CHUM Limited (MuchMoreMusic)
Across Canada - 199800686
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Star Entertainment Inc. (Star TV)
Across Canada - 199800694
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The Partners of the "Report on Business Television" (ROBTv)
Across Canada - 199713532
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Applications by new Canadian specialty channels desiring earlier carriage on cable systems - Denied
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1. Following Public Notice CRTC 1998-37 dated 21 April 1998, the Commission denies the applications by the licensees of four English-language specialty programming undertakings. These applications requested the amendment of the broadcasting licences for Canadian Learning Television (CLT), MuchMoreMusic, Star TV and ROBTv, by deleting (in the case of ROBTv) or amending (in the case of the remaining three), the condition of licence which suspends the applicability of the Access Rules set out in the Broadcasting Distribution Regulations (the regulations).
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2. Under those regulations, the Commission requires that all Class 1 cable distribution undertakings distribute all licensed English- and French-language specialty and pay television programming services appropriate to their market, to the extent of available channel capacity. An exception to this requirement is made if a programming service licensed by the Commission has a condition of licence which suspends the implementation of the Access Rules. In these circumstances, an undertaking is not required to distribute that service until the earliest date specified in the condition of licence.
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3. In Public Notice CRTC 1996-120, dated 4 September 1996, entitled Introductory Statement - Licensing of New Specialty and Pay Television Undertakings, the Commission announced its licensing framework for 17 new English-language specialty programming undertakings. Of the 17 new services, the Commission chose four to which the Access Rules would have immediate application, thereby requiring Class 1 cable undertakings to carry them as soon as the services were ready to begin operation.
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4. In the case of the remaining 13 services, including ROBTv, Star TV, MuchMoreMusic and CLT, the Access Rules were suspended, by condition of licence, until the earlier of: the deployment of digital technology by individual distributors, or 1 September 1999. (The regulations specify that a licensee will be deemed to make use of digital technology when at least 15% of the licensee's subscribers received one or more programming services on a digital basis.) Class 1 cable undertakings that have not implemented digital technology by 1 September 1999 must provide, at that time, carriage of the remaining services on analog channels, subject to the definition of "available channel capacity", as set out in the regulations.
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5. Several of the remaining 13 services were launched on available channels in the fall of 1997, although the four services that are the subject of this decision were not among them.
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6. The stated purpose of the amendments requested is to require earlier, or immediate implementation of the Access Rules for the four services involved. The applicants all believe that there is sufficient capacity for carriage of additional channels by many cable systems. They also expressed the common concern that waiting until September 1999 for access will jeopardize the opportunity to make new Canadian voices available to viewers.
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7. The Canadian Cable Television Association (CCTA), Rogers Cablesystems Limited (Rogers), Torstar Corporation (Torstar) and Shaw Communications Inc. (Shaw) submitted interventions in opposition to these applications. Rogers and Shaw are the two largest distributors of cable programming in Canada, and Torstar is the parent company of Torstar Electronic Publishing Limited, which operates an exempt programming service known as Toronto Star Television.
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8. According to the interveners, such an accelerated launch would ultimately be to the detriment of existing Canadian services, since it could alter both the composition and the pricing structure of cable services currently offered, and be highly disruptive to subscribers. The interveners expressed the concern that several services currently carried could be displaced if the amendments were granted.
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9. The Commission has considered carefully the views of the applicants and of the interveners. It is not convinced that a compelling case has been made that would lead it to change the timing of the application of the Access Rules with respect to these four services, given the need for some regulatory certainty in the circumstances. The requests by the four applicants are therefore denied.
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10. The Commission acknowledges all of the supporting and opposing interventions submitted with respect to these four applications, as well as the applicants' replies thereto.
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Laura M. Talbot-Allan
Secretary General
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This document is available in alternative format upon request.
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