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Public Notice
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Ottawa, 28 May 1984
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Public Notice CRTC 1984-125
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Class "B" Cable Television Licensees
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New Procedure for Fee Applications
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In a Public Announcement dated 19 June 1980, the Commission introduced revised procedures, on an experimental basis, for determining the maximum fee structure authorized for all cable television systems serving less than 3,000 subscribers ("Class B").
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The Commission now proposes to revise its licensing procedures to further streamline the processing of applications involving changes to the authorized maximum fees of "Class B" licensees. These proposed revised procedures, which would be enacted through revisions to the Cable Television Regulations, would enable the implementation of non-contentious subscriber fee increases without the need for either a public notice by the Commission or public hearing and would allow licensees to charge installation fees without obtaining the prior authority of the Commission.
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All cable television systems currently have maximum installation and monthly subscriber fees authorized as conditions of licence. Consequently, a change in fees constitutes an amendment of licence and requires an application for amendment under the Broadcasting Act. Under the proposed revisions, and subject to the appropriate amendments to the Cable Television Regulations, the Commission would invite applications from "Class B" cable television licensees to delete the conditions of licence which specify their authorized maximum installation and monthly subscriber fees.
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A) Maximum Monthly Subscriber Fees
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These fees would no longer constitute conditions of licence. Authority for the implementation of any increase in the maximum monthly subscriber fee for the provision of the basic service tier would only require the following:
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1) The licensee would provide the Commission with the minimum essential details of any such proposed fee increase;
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2) At least 40 days prior to the implementation of the proposed fee change, the licensee would publish, in a form established by the Commission, a notice of the fee change in a newspaper having general circulation within the licensed area;
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3) At least 30 days prior to the implementation of the proposed fee change, the licensee would notify each subscriber, in a form established by the Commission, of the fee change, and
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4) 30 days following receipt by the Commission of:
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(i) the notice of the proposed fee change described in paragraph (1), and
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(ii) proof of publication of the notices described in paragraphs (2) and (3),
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the proposed change in the maximum monthly subscriber fee may be implemented unless the Commission notifies the licensee to the contrary.
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5) Ordinarily, the Commission would not delay or deny implementation if the fee increase were not contentious. For example, the Commission may deem as non-contentious any proposed fee increase where there are no outstanding subscriber complaints and there are no interventions opposing the increase.
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The new procedure with respect to increases in maximum monthly subscriber fees would allow the Commission, prior to the date on which the proposed fee increase is to take effect, to:
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(a) suspend, until further notice, the implementation of all or part of such fee increase until any requirement for additional information that may be imposed by the Commission has been satisfied;
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(b) disallow all or any part of such fee increase; or
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(c) disallow all or part of such fee increase and set down the matter of such disallowed fee for consideration at a public hearing.
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B) Maximum installation fees
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Furthermore, the Commission has taken into consideration the following arguments which have been made by various members of the cable industry:
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a) installation fee revenues currently represent only a very small portion of the total revenues of an established cable television system;
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b) installation fees are traditionally priced at less than cost in order to reduce any disincentive to subscribe to the service, and it is expected that this will continue to be a factor in the future.
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Accordingly, the Commission proposes to amend its Cable Television Regulations to make it unnecessary for cable television licensees to obtain Commission authorization prior to the charging of any installation fee.
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The Commission expects to issue shortly for public comment a comprehensive proposal for new Cable Television Regulations incorporating the proposed revisions to the Commission's licensing procedures in connection with the maximum installation and monthly fees charged to subscribers by "Class B" licensees. However, pursuant to the requirements of the Statutory Instruments Act, the proposed regulations will first be sent for examination to the Privy Council Office and the Department of Justice.
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Fernand Bélisle Secretary General
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