ARCHIVED - Order CRTC 2001-298

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Order CRTC 2001-298

 

Ottawa, 12 April 2001

 

CRTC approves in part Bell Canada's application to increase service charges for channels for program transmission and broadcast-quality television channels for occasional use

 

Reference: Bell Canada Tariff Notice 6493

1.

On 4 July 2000, Bell Canada filed Tariff Notice 6493 proposing to increase the service charge rates for voice channels for program transmission and for television channels for occasional use. In the case of channels for program transmission, Bell Canada proposed to bundle the existing one-time charge for the optional equalization for 8 kHz and 15 kHz operation with the service charge payable for all installations. The company also proposed to eliminate some service options for which there are no customers.

2.

Bell Canada submitted that service charges do not recover the associated costs and therefore proposed to increase them. Bell Canada indicated that the costs for installation of these local program services exceeded $300 per service point. Bell Canada also noted that alternative services are available both from the company and its competitors.

3.

Interventions were received from Canadian Association of Broadcasters, Association des radiodiffuseurs communautaires du Québec, Mouvement des Intervenants (es) en Communications Radio de l'Ontario, Alliance des radios communautaires du Canada, Métromédia, Radio-Fredericton, CFXM-FM 104,9, Corus Entertainment, La Radio de l'Épinette Noire, CHRL AM 910, Astral Media, and Télémédia Radio.

4.

The interveners submitted that the proposed service charges are too high. The industry would be unable to absorb the additional cost and would therefore be required to severely reduce the use of remote broadcasting. They also stated that remote broadcasting is a substantial source of advertising revenue and provides an important community service. The reduced revenue would seriously impact the financial viability of their operations.

5.

Interveners also submitted that the alternate services listed by Bell Canada were not suitable for their needs.

6.

Community radio stations and their association also submitted that, if the Commission were to approve this proposal, the community radio stations should be exempt from the rate increase for at least two years.

7.

The Commission considers that exempting the community radio stations from rate increases would constitute unjust discrimination.

8.

The Commission notes that there were no specific interventions on the proposed increases to the service charges for broadcast-quality television channels for occasional use, or on Bell Canada's proposal to eliminate some service options.

9.

The Commission notes that under Bell Canada's proposal the one-time charge for the optional equalization feature (currently at $205) would be bundled with the proposed new service charge. For customers who do not use the optional equalization, this bundling would raise the service charge from the current $50 to the proposed $350 without any corresponding benefits.

10.

Accordingly, the Commission denies the proposed restructuring of the service charge for channels for program transmission (Tariff Items 4600.7, 4600.8 and 4600.9). However, the Commission considers that rates should move closer to costs and accordingly, in place of the proposed restructuring, approves rate increases for the service charge for full-time and occasional-use local channels to $60 per service point from the existing $50, and to the one-time charge for equalization to $240 from the existing $205.

11.

The other proposals in TN 6493 are approved.

12.

Bell Canada is to issue revised tariff pages forthwith.

 

Secretary General

 

This document is available in alternative format upon request and may also be examined at the following Internet site: www.crtc.gc.ca 

Date Modified: 2001-04-12

Date modified: