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Ottawa, 12 December 1984
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Public Notice CRTC 1984-305
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Proposed New Cable and Subscription Television Regulations
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Pursuant to subsection 16(2) of the Broadcasting Act, the Commission announces that it proposes to make new Regulations Respecting Cable and Subscription Television Broadcasting Receiving Undertakings, which are set out in the appendix to this Notice, for public comment. The existing Cable Television Regulations (C.R.C. 1978, c.374) will be revoked upon the enactment of the new Cable and Subscription Television Regulations.
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Cable systems in Canada have been licensed by the Commission as broadcasting receiving undertakings since June 1968 when the Broadcasting Act came into force. Until 1975, the principal means of cable regulation was through conditions of licence which established signal carriage requirements, maximum installation, monthly fees and other requirements particular to the circumstances of each cable licensee.
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Furthermore, cable operators were expected to follow the policies of the Commission as announced from time to time dealing with areas of cable operation not specifically regulated through conditions of licence. Most of the general rules governing the operation of cable systems were, in fact, set out in the form of policy statements, including the requirements pertaining to signal substitution and community programming.
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In 1975, the various cable policies were consolidated and formally enacted as the Cable Television Regulations. While a number of particular amendments have since been introduced, the Regulations have not, as a whole, undergone any substantial change or been the subject of a general review. As a result, the regulations have not fully kept pace with the development of new services such as the discretionary and specialty television services, as well as new technologies to deliver these new services to the public, including satellites and scrambled, over-the-air subscription television systems (STV) which have been licensed as substitutes for cable systems in more than 100 smaller and remote communities since 1982.
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All of these developments require substantial changes to the Cable Television Regulations. Rather than introduce a multitude of amendments to specific provisions of the existing Regulations, the Commission has determined that the better approach would be to enact new, comprehensive regulations which would deal with cable and STV and, potentially, new technologies for local distribution of programming services to the public, such as multi-point microwave distribution systems (MDS). Accordingly, the Commission now proposes to enact the Cable and Subscription Television Regulations, as set out in the appendix to this Notice.
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In developing these new Regulations, the Commission has attempted to achieve three fundamental objectives: to incorporate policies adopted by the Commission over the last few years, to lighten the burden of regulation with respect to the operation of cable and STV, and to clarify certain provisions of the existing Regulations.
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1. Recent Policies
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In the light of the evolving broadcasting environment, new regulatory provisions have been introduced which deal specifically with discretionary services and the recently implemented practice of cable service tiering. These provisions (sections 9 and 10) will give effect to the policies enunciated by the Commission in many of its Decisions and Public Notices relating to pay television and specialty programming services, including the requirements governing tier composition and linkage of Canadian and foreign discretionary services, and the further requirement of overall balance between Canadian and foreign programming service carriage on cable and STV systems.
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New provisions have also been added to expand the range of audio services on cable (section 16), in accordance with the terms of the Commission's recent Public Notice CRTC 1984-124 issued on 28 May 1984.
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In Public Notice CRTC 1984-204 dated 3 August 1984, the Commission called for comments on a proposal which would allow licensees of Class B cable systems to share the community channel with certain other compatible programming services of a non-commercial nature. Since the Commission has not completed its consideration of the submissions received, the proposed new regulations do not include any new provision in this regard.
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The Commission notes that the most significant changes to be introduced by the proposed new Regulations, particularly in terms of subscriber impact, would occur in the area of rate regulation. In June of this year, the Commission issued Public Notice CRTC 1984-143 which called for comment on, among other things, the possibility of permitting cable systems to implement adjustments to their monthly rates on an annual basis without the need for regulatory approval. Pursuant to its public consultation on this matter, the Commission now proposes (subsection 18(2)) to allow annual rate adjustments of up to 80% of the increase in the Consumer Price Index (CPI) for all cable and STV systems.
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The figure of 80% of the annual increase in the CPI approximates the average annual increases in basic monthly rates of cable licensees that the Commission has permitted over the last five years. As a result, the Commission expects that the indexing scheme set out in the proposed regulations will allow for a more timely implementation of rate increases at approximately the same level as would ordinarily be approved by the Commission, without the regulatory burden and delays that occur under the existing rate approval process.
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To safeguard subscriber interests, subsection 18(3) requires that advance notice of at least 40 days be given to all subscribers, with copy to the Commission, of any rate increase through indexing. This period of notice should allow subscribers sufficient time to decide to terminate their subscription without penalty in the event of inability or unwillingness to support the higher rates. Notwithstanding existing billing practices by licensees, subscribers should be permitted to terminate their subscription without penalty at any time during the period between notification and implementation of these rate adjustments. Furthermore, notification by all cable television licensees will be required to be done in a form established by the Commission to ensure that all subscribers are appropriately informed. These forms will be developed in consultation with licensees.
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The Commission wishes to emphasize that, while the rate indexing will not be subject to the usual regulatory processes of application and approval, including the possibility of intervention, it should not be used as a means of obtaining interim partial increases on an automatic basis. Licensees of Class A systems are advised that the Commission will be inclined not to approve applications for further increases in the same year where a licensee has implemented a rate adjustment pursuant to subsections 18(2) and (3), unless exceptional economic need or substantially higher costs can be clearly demonstrated.
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The Commission is proposing to implement this indexing scheme initially on an experimental basis for a period of three years. It will closely monitor the rate practices of its licensees during this experimental period, and will take the necessary steps to remove the indexing approach in the event of abuse.
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Subsections 18(4) and (5) will implement the passive disallowance procedure for rate increases beyond indexing for all Class B and C cable or STV systems (serving less than 6,000 subscribers). The majority of the members of the Commission propose this new regulatory approach which was first announced for STV and Class B cable systems in Public Notice CRTC 1984-125 issued on 28 May 1984 and which is now extended to Class C cable systems. Those licensees who will benefit from this new passive regulatory approach, however, should expect that the Commission will scrutinize carefully any proposed additional increases under these provisions in the same year where increases have already been implemented without Commission approval through indexing.
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As noted in its tiering policy statement (Public Notice CRTC 1983-245 dated 26 October 1983), of particular concern to the Commission will be the practices of licensees who remove optional foreign services from their primary basic tier to discretionary tiers, as will be permitted after 1 November 1985 by subsection 10(4). In these circumstances, the Commission will wish "to ensure that ... if optional services are removed from the basic tier, this should be reflected in its price."
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Furthermore, as indicated in Public Notices CRTC 1983-245 and 1984-143:
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The Commission will not at this time regulate the retail rate for the discretionary tiers ...... and will also be concerned that the basic tier rate not subsidize, either directly or indirectly, the discretionary tier services.
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With the introduction of new pay television and specialty and other services on discretionary tiers, the Commission now wishes to ensure that it continues to have a proper accounting of the financial results of the rate-regulated basic tier services.
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The Commission is currently reviewing the difficulties and complexities related to a cost separation process and expects to issue shortly, for public comment, a separate Public Notice on this matter.
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Further requirements have also been added in the proposed Regulation pertaining to the distribution of House of Commons or provincial legislative proceedings and non-broadcast educational programming on non-impaired cable channels. These requirements will implement the policy that the Commission explicitely announced it would adopt in this regard (Public Notice CRTC 1983-245 dated 26 October 1983).
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2. Lightening of Regulatory Burden
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The proposed Regulations include provisions which, when implemented, will either totally or partially remove the regulation of particular areas of operation of cable and STV systems. To date, each optional service must be approved by the Commission before it may be distributed by a cable or STV licensee, thus requiring an application and disposition by the Commission. Section 7 of the proposed Regulations would itself become the source of authority for the distribution of specified optional signals thereby allowing their immediate addition to a cable or STV system without the need for any further procedure. This same provision would be introduced in relation to various optional audio services (subsection 16(6)).
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With regard to rates, no authorization will be required for installation rates for all classes of cable as well as for STV licensees. Thus Section 17 of the proposed Regulations will drop the words "as authorized by the Commission" which are currently included in the provision of the existing Regulations dealing with installation rates.
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3. Clarification
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The proposed Regulations continue to recognize the role of cable (and now of STV) as local distributors of broadcasting, and thus do not change the fundamental requirements of signal carriage priorities and simultaneous signal substitution, both of which have been central features of cable regulation since 1971. Slight textual changes to the language of the signal carriage priorities, set out in Section 6 of the proposed Regulations, have been introduced for purposes of clarification and an attenuation of the requirement of advance notice for substitution has been introduced in circumstances where a local broadcaster performs a substitution on behalf of a cable operator. In addition, Class B cable systems will now be authorized by the Regulations to perform signal substitution on a voluntary basis.
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The signal substitution rule will be further modified under the new Regulations (subsection 20(5)) to allow for discontinuance of a substitution where the signals in fact, are, or become, non-identical. The Commission believes that such a regulatory measure is necessary in view of the large number of complaints that it has received in circumstances where non-identical programs have been substituted. In addition, the prohibition against alteration or curtailment of signals by cable and STV licensees has been slightly changed to allow for the provision of services on a scrambled basis and for alteration or curtailment as provided for in affiliation agreements. The existing exemptions from substitution where financial hardship would result or where subsidiary carriers are present, such as closed captioning which is currently under review, are, at the moment, maintained without change.
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A further clarification introduced in the Regulations (subsection 17(4)) is the requirement for a licensee to continue to provide service upon receipt of payment in advance of one month's fees. This provision is intended to implement, in an unambiguous fashion, the Commission's statement on this matter enunciated in Public Notice CRTC 1982-37 of 18 May 1982.
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Written comments on the proposed Regulations set out in the appendix to this Notice should be submitted not later than 15 February 1985. All comments should be addressed to the Secretary-General, CRTC, Ottawa, Ontario, K1A 0N2.
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Fernand Bélisle Secretary General
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REGULATIONS RESPECTING CABLE AND SUBSCRIPTION TELEVISION BROADCASTING RECEIVING UNDERTAKINGS
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Short Title
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1. These Regulations may be cited as the Cable and Subscription Television Regulations.
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Interpretation
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2. In these Regulations,
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"audio channel" means a channel of a cable undertaking on which is distributed a frequency-modulated transmission capable of being received by subscribers by means of a conventional F.M. radio receiver; (canal sonore)
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"basic band" means the frequencies pertaining to a cable undertaking comprising standard VHF television channels 2 through 13; (bande de base)
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"cable licence" means a licence to carry on a cable undertaking; (licence de télédistribution)
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"cable undertaking" means an undertaking that distributes all its signals and programming services, or all signals and programming services comprising its primary service tier, directly to subscribers thereof by means of cable; (entreprise de télédistribution)
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"Canadian programming service" means a programming service consisting of
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(a) community programming or any other programming originated by a licensee,
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(b) the signals of a licensed television station received at a local headend of the licensee's undertaking, either directly or by means of a satellite or microwave relay, or
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(c) signals that carry programming originating otherwise than in the form of signals of a television station and that are
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(i) transmitted from a point on the earth within Canada to a satellite space station and relayed therefrom to a local headend of the undertaking, either directly or by means of a microwave relay, or
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(ii) first transmitted as microwave signals from a point in Canada and received at a local headend of the undertaking in that form; (service de programmation canadien) "commercial message" means a commercial announcement that mentions or displays the name of an advertiser or the product, service or activity of, or promoted by, an advertiser, including any such mention or display in a list of prizes, but does not include announcements that mention or display the name, product or service of an advertiser in the course of and incidental to the production of community programming; (message commercial)
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"Commission" means the Canadian Radio-television and Telecommunications Commission; (Conseil)
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"community channel" means
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(a) the channel of a licensee's undertaking designated as such in its licence, or
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(b) in the case of an STV licensee that is not required under its licence to distribute community programming exclusively on one channel, the channel of the licensee's undertaking on which and at such times as community programming is distributed; (canal communautaire)
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"community programming" means programming that is distributed on the community channel of an undertaking and
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(a) is produced by the licensee of the undertaking or by members of the community served by that undertaking; or
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(b) is produced by the licensee of another undertaking or by the members of the community served by that undertaking, and is relevant and of particular interest to the community referred to in paragraph (a); (programmation communautaire)
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"Corporation" means the Canadian Broadcasting Corporation; (Société)
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"discretionary service tier" means a signal or programming service, or any combination of signals and programming services, that is not included in the primary service tier of an undertaking and is distributed on the undertaking on an indivisible basis for a fee separate from and in addition to the fee for the primary service tier; (volet de service optionnel)
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"educational authority" means a body that is
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(a) an independent corporation, as defined in the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences),
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(b) a provincial authority, as defined in the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences); (autorité éducative)
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"educational programming" means the programming described in the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences); (programmation éducative)
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"extra-regional television station" means, in relation to a cable undertaking, a licensed television broadcasting station, other than an STV undertaking, having
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(a) a Grade A or Grade B official contour that does not include any part of the licensed area of the undertaking, and
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(b) a Grade B official contour that includes any point located 20 miles or less from a local headend of the undertaking; (station de télévision éloignée)
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"foreign programming service" means a programming service other than a Canadian programming service; (service de programmation étranger)
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"licence" means a licence issued by the Commission to carry on a cable undertaking or an STV undertaking; (licence) "licensed" means licensed by the Commission; (autorisé)
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"licensed area" means, in relation to
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(a) a cable undertaking, the area in which the licensee thereof has been licensed to provide service, or
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(b) an STV undertaking, the area within which any signal emitted by that undertaking is receivable directly but does not include
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(i) any area, or part thereof, outside Canada, or
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(ii) any area within which a cable licensee is licensed to provide service; (zone de desserte autorisée)
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"licensee" means a person who holds a cable licence or an STV licence; (titulaire d'une licence ou titulaire)
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"local A.M. station" means, in relation to a cable undertaking, a licensed A.M. broadcasting station having
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(a) its principal studio located within 20 miles of any part of the licensed area of the undertaking, and
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(b) a night-time interference free official contour that includes any part of that licensed area; (station M.A. locale)
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"local F.M. station" means, in relation to a cable undertaking, a licensed F.M. broadcasting station having a 3,000 microvolt per metre official contour that includes any part of the licensed area of the undertaking; (station M.F. locale)
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"local headend" means, in relation to an undertaking, the combination of apparatus that
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(a) is located immediately adjacent to where signals are inserted into the distribution system of the undertaking, and
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(b) is used for the processing of signals that are transmitted by local television stations or, in their absence, by regional television stations, and are distributed on the undertaking; (tête de ligne locale)
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"local television station" means, in relation to a cable undertaking, a licensed television broadcasting station, other than an STV undertaking, having a Grade A official contour that includes any part of the licensed area of the undertaking; (station de télévision locale)
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"official contour" means a service contour described for a licensed television broadcasting station, A.M. station or F.M. station in the map most recently published by the Department of Communications pertaining to the station; (périmètre de rayonnement officiel)
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"optional programming service" means a programming service that a licensee is not required by these Regulations or as a condition of its licence to distribute on its undertaking; (service de programmation facultatif)
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"optional television station" means a television broadcasting station the signals of which a cable licensee is not required by these Regulations or as a condition of its licence to distribute on its undertaking; (station de télévision facultative)
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"pay television service" means a programming service provided pursuant to an agreement between a licensee and a person licensed to carry on a pay television network; (service de télévision payante)
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"primary service tier" means the combination of signals and programming services distributed to all subscribers of an undertaking on an indivisible basis for a single monthly subscription fee and is composed of
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(a) the signals and programming services required by section 6 or as a condition of licence to be distributed on the undertaking, and
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(b) any optional programming services included therein; (volet de service de base)
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"programming" or "program" means any presentation of sounds, images or sounds and images designed to inform, enlighten or entertain, but does not include any commercial message; (programmation ou émission)
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"programming service" means a television service by which programming is distributed to subscribers by a licensee; (service de programmation)
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"regional A.M. station" means, in relation to a cable undertaking, a licensed A.M. broadcasting station, other than a local A.M. station, having a night time interference-free official contour that includes any part of the licensed area of the undertaking; (station M.A. régionale)
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"regional F.M. station" means, in relation to a cable undertaking, a licensed F.M. broadcasting station, other than a local F.M. station, having a 500 microvolt per metre official contour that includes any part of the licensed area of the undertaking; (station M.F. régionale)
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"regional television station" means, in relation to a cable undertaking, a licensed television broadcasting station, other than a local television station or an STV undertaking, having a Grade B official contour that includes any part of the licensed area of the undertaking; (station de télévision régionale)
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"restricted channel" means any channel of a cable undertaking that is the same as a channel on which signals are transmitted by
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(a) a local television station or a local F.M. station, or
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(b) a television station or F.M. radio station having a transmitter site that is located outside of Canada within 20 miles of any part of the licensed area of the cable undertaking; (canal à usage limité)
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"STV licence" means a licence to carry on an STV undertaking; (licence TPA)
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"STV undertaking" means a subscription television undertaking;
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"scrambled radiocommunication" means a radiocommunication the technical properties of which have been altered for the purpose of rendering the content thereof incapable of being received in intelligible form other than by means of a decoding apparatus specifically designed for that radiocommunication; (radio communication brouillée)
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"signal" means a radiocommunication that is transmitted by a television station, radio station, satellite or microwave system; (signal)
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"specialty service" means a programming service provided pursuant to an agreement between a licensee and a person licensed to carry on a specialty service network; (service spécialisé)
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"subscriber" means
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(a) a household of persons to whom service is provided directly or indirectly by an undertaking, or
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(b) the owner or operator of a hotel, hospital, nursing home or other commercial or institutional premises to which service is provided by an undertaking; (abonné) "subscription television broadcasting undertaking" means an undertaking that distributes signals directly to subscribers
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(a) as scrambled radiocommunications transmitted on VHF or UHF television frequencies,
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(b) as multi-point microwave transmissions, whether scrambled or unscrambled, or
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(c) as any combination of the radiocommunications and transmissions referred to in paragraphs (a) and (b); (entreprise de télévision par abonnement)
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"undertaking" means a broadcasting receiving undertaking used by a licensee to provide service to subscribers thereof; (entreprise)
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"unrestricted channel" means a channel of a cable undertaking that is not a restricted channel. (canal à usage illimité)
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Classes of Licences
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3. (1) A licence to carry on a cable undertaking having
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(a) six thousand or more subscribers is a Class A cable licence;
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(b) three thousand or more subscribers but less than six thousand subscribers is a Class C cable licence; and
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(c) less than three thousand subscribers is a Class B cable licence.
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(2) For the purposes of subsection (1), the number of subscribers in respect of service to a hotel, hospital, nursing home or other commercial or institutional premises equals the number of rooms or spaces to which service is provided in the hotel, hospital, nursing home or other commercial or institutional premises.
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Use of Undertaking
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4. A licensee shall not use, or permit the use of, its undertaking or any channel of its undertaking except as required or authorized by its licence or these Regulations.
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Application
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5. Except as otherwise provided as a condition of licence, sections 6, 7, 8, 11, 16, subsection 17(1) and section 20 apply only in respect of that part of a cable undertaking on which signals or programming services are distributed directly to subscribers thereof by means of cable.
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Television Service Priorities
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6. (1) Except as otherwise provided in this section or as a condition of its licence, a cable licensee shall distribute on the basic band of its undertaking, in the following order of priority and to the extent of available channels thereon,
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(a) the signals of all local television stations owned and operated by the Corporation;
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(b) the signals of all local television stations that broadcast educational programming and are owned and operated by an educational authority of the province in which the licensed area of the undertaking is located;
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(c) the signals of all local television stations other than those described in paragraphs (a) and (b);
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(d) the signals of
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(i) a regional television station that is either owned and operated by, or affiliated with, the Corporation, where there is no such local television station broadcasting in the same language as the regional television station, or
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(ii) an English language regional television station and a French language regional television station that are either owned and operated by, or affiliated with the Corporation, where there is no such local television station broadcasting in either the English or French language;
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(e) the signals of a regional television station owned and operated by the educational authority referred to in paragraph (b) unless there is a local television station so owned and operated;
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(f) the signals of all regional television stations other than affiliates or members of a network of which a station described in paragraph (c) is an affiliate or member;
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(g) community programming on a community channel;
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(h) the signals of
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(i) an extra-regional television station that is either owned and operated by, or affiliated with the Corporation, where there is no such local or regional television station, or
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(ii) an English language extra-regional television station and a French language extra-regional television station that are either owned and operated by, or affiliated with the Corporation, where there is no such local or regional television station broadcasting in either the English or French language;
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(i) the signals of an extra-regional television station owned and operated by the educational authority referred to in paragraph (b), unless there is a local or regional television station so owned and operated; and
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(j) the signals of an extra-regional television station, other than a station affiliated with or a member of a network of which a station described in any preceding paragraph is an affiliate or member.
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(2) With the consent of an educational authority of a province other than the province in which the licensed area of a cable licensee's undertaking is located, the licensee may distribute, as part of the primary service tier of the undertaking, the signals of
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(a) any local television station that broadcasts educational programming and is owned and operated by that educational authority;
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(b) the signals of a regional television station that broadcasts educational programming and is owned and operated by that educational authority, where there is no television station described in paragraph (a); or
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(c) the signals of an extra-regional television station that broadcasts educational programming and is owned and operated by that educational authority, where there is no television station described in paragraph (a) or (b).
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(3) Where no signals described in paragraph (1)(b), (e) or (i) are available to a cable licensee from a television station owned and operated by an educational authority of the province in which the licensee carries on its undertaking, the licensee shall distribute, as part of its primary service tier, a programming service consisting of educational programming received from the educational authority by the licensee otherwise than by broadcasting.
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(4) Where a cable licensee distributes a programming service comprised of the proceedings of the House of Commons or the proceedings of the legislature of the province in which the undertaking is located, the licensee shall include such programming service as part of the primary service tier of its undertaking.
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(5) Where a signal or a programming service required by subsection (l) cannot be distributed on the basic band of a cable undertaking by reason of limited capacity of the undertaking, the licensee thereof shall include the signal or programming service as part of the primary service tier of its undertaking according to the order of priority established by subsections (1), (6) and (7).
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(6) Where the signals of two or more local television stations rank equally in the order of priority established by paragraphs (1)(a) to (c) in respect of a cable undertaking, priority shall be given
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(a) to the signals of the station having a studio located in the same province as the undertaking; and
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(b) where the studios of two or more such stations are located in the same province as the undertaking, to the signals of the stations in order of the proximity of their studios to a local headend of the undertaking.
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(7) Where the signals of two or more regional television stations or extra-regional television stations that are affiliates or members of the same network rank equally in the order of priority established by subsection (1), priority shall be given
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(a) to the signals of the station having a studio located in the same province as the undertaking and the other station or stations shall be optional television stations; and
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(b) where the studios of two or more of those stations are located in the same province as the undertaking, to the signals of the station having a studio located closest to a local headend of the undertaking and the other station or stations shall be optional television stations.
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7. (1) Except as provided in subsection (2), a licensee shall not distribute on its undertaking any optional programming service not authorized under the terms of its licence by the Commission.
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(2) Where a licensee satisfies the requirements of section 6 and any signal distribution conditions of its licence, the licensee may distribute on its undertaking
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(a) an optional programming service authorized for distribution on that undertaking at the date these Regulations come into force; and
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(b) an optional programming service the originator of which is licensed to provide the service to all or any part of the licensed area of that undertaking.
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8. Except as otherwise provided as a condition of its licence, a cable licensee shall devote to the distribution of Canadian programming services a number of channels on its undertaking equal to or greater than the number of channels devoted to the distribution of foreign programming services.
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Service Tiers
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9. (1) Where a discretionary service tier of a licensee's undertaking contains a pay television service the licensee shall not include in that tier more than five channels on which foreign programming services are distributed.
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(2) Where a discretionary service tier of a licensee's undertaking does not contain a pay television service, the licensee shall not include in that tier
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(a) for each specialty service included in the tier, more than two channels on which foreign programming services are distributed; and (b) a total of more than five channels on which foreign programming services are distributed.
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10. (1) A cable licensee shall not provide a discretionary service tier to a subscriber who does not subscribe to the licensee's primary service tier.
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(2) A licensee shall not require a subscriber to subscribe to one discretionary service tier in order to subscribe to another.
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(3) Except as otherwise provided as a condition of its licence, a licensee shall not include in the primary service tier of its undertaking
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(a) a pay television service;
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(b) a specialty service; or
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(c) a programming service included in one of its discretionary service tiers at the date these Regulations come into force.
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(4) Except as otherwise provided as a condition of its licence, a licensee shall not include in a discretionary service tier of its undertaking
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(a) a signal or programming service described in section 6; or
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(b) prior to November 1, 1985, an optional programming service included in its primary service tier at the date these Regulations come into force.
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Restricted Channels
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11. Except as otherwise provided as a condition of its licence, a cable licensee shall not distribute on a restricted channel of its undertaking a signal or programming service referred to in subsection 6(1), (3) or (4).
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Community Channel
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12. (1) Except as provided in subsections (2) and (3) or as a condition of its licence, a licensee shall not distribute on the community channel of its undertaking any commercial message or any programming other than
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(a) community programming;
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(b) public service announcements;
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(c) channel identification announcements; and
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(d) information as to the programming to be distributed on the community channel.
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(2) When a Class B cable licensee is not distributing community programming, or is distributing community programming having no audio component on the community channel of its undertaking, the licensee may distribute on that channel
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(a) the signals of an A.M. or F.M. station described in paragraphs 16(3)(a) to (c); or
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(b) where no A.M. or F.M. station referred to in paragraph (a) is available, the signals of a station described in paragraph 16 (3) (d).
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(3) Where the signals of more than one A.M. or F.M. station are available for distribution by a Class B licensee, the distribution of the signals on the licensee's community channel shall be in accordance with an arrangement between the licensee and all the A.M. and F.M. stations to which subsection (2) refers.
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(4) A Class B cable licensee shall (a) notify the Commission before distributing the signals of an A.M. or F.M. station on the community channel of its undertaking; and
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(b) advise the Commission of the terms of any arrangement referred to in subsection (3).
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(5) A Class B cable licensee shall not curtail, cancel or pre-empt any community programming for the purpose of distributing the signal of a radio station.
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13. (1) A licensee shall, in a form acceptable to the Commission, maintain a program log for programs distributed on the community channel of its undertaking and shall enter therein, on a daily basis, the following information:
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(a) the date;
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(b) the designation of the frequency or channel used as the community channel;
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(c) for each program,
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(i) its title,
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(ii) the name of the undertaking at which it was produced,
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(iii) a brief description of it including an indication whether it was produced by employees of the undertaking or by volunteers, and
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(iv) its duration; and
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d) the time and duration of each announcement made as permitted under paragraphs 12(1)(b), (c) and (d).
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(2) A licensee shall retain a program entry required under subsection (1), together with a clearly intelligible audio recording of the program, for a period of
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(a) four weeks from the date of the program; or
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(b) eight weeks from the date of the program, where the Commission receives a complaint regarding the program, or for any other reason wishes to investigate it, and so notifies the licensee before the expiration of four weeks from the date of the program.
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(3) Where, before the expiry of the period referred to in subsection (2), the Commission requests from a licensee a program entry or a clearly intelligible audio recording of a program, the licensee shall furnish the entry or recording to the Commission.
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14. Where a licensee provides time on the community channel of its undertaking for the distribution of programming of a partisan political character, it shall allocate such time
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(a) on a equitable basis to all political parties and rival candidates as they and the licensee may agree; or
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(b) as determined by the Commission where no such agreement is reached and the licensee or one of the political parties or rival candidates refers the matter to the Commission.
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15. Where a licensee provides an opportunity on the community channel of its undertaking for the expression of views on matters of public concern, it shall provide a reasonable and balanced opportunity for the expression of differing views on such matters.
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Audio Services 16. (1) This section applies to all Class A and Class C cable licensees and to any Class B cable licensee that elects to distribute a service described in this section.
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(2) Except as otherwise provided in subsection (3), (4), (6) or (7) or as a condition of its licence, a licensee shall not distribute on an audio channel of its undertaking the signal of any A.M. or F.M. station or the audio portion of any programming service.
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(3) Except as otherwise provided as a condition of its licence, a licensee shall distribute on the audio channels of its undertaking, in the following order of priority,
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(a) the signals of all local A.M. stations and local F.M. stations owned and operated by the Corporation;
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(b) the signals of all local A.M. stations and local F.M. stations owned and operated by an educational authority;
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(c) the signals of all local A.M. stations and local F.M. stations broadcast as stereo signals; and
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(d) the signals of
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(i) a regional A.M. station owned and operated by the Corporation, where there is no such local A.M. station,
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(ii) regional F.M. station owned and operated by the Corporation, where there is no such local F.M. station,
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(iii) a regional A.M. station owned and operated by an educational authority, where there is no such local A.M. station, and
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(iv) a regional F .M. station owned and operated by an educational authority, where there is no such local F.M. station.
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(4) A licensee shall distribute on the audio channels of its undertaking, at the request of the broadcaster or network operator licensed to provide the programming service distributed by the licensee, the audio portion of
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(a) the signal of a television station described in paragraphs 6(1)(a), (b) or (c) that broadcasts its signal as a stereo signal;
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(b) a licensed pay television service that is transmitted to the licensee by means of a stereo signal; and
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(c) a licensed music speciality service transmitted to the licensee by means of a stereo signal.
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(5) Except as otherwise provided as a condition of its licence, a licensee shall not distribute on a restricted channel signals described in subsections (3) and (4).
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(6) Where a licensee satisfies the requirements set out in subsections (3) and (4), the licensee may distribute on the audio channels of its undertaking
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(a) the signals of other licensed radio stations received directly at a local headend of the undertaking;
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(b) the audio portion of other licensed programming services;
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(c) the audio portion of its community channel or any special programming channel;
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(d) closed circuit audio services; (e) the signals of any licensed student carrier current radio stations that do not carry commercial messages; and
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(f) the signal of a licensed A.M. station or licensed F.M. station that is distributed to the headend of the undertaking by means of satellite transmission and does not duplicate the format of any local A.M. station or local F.M. station.
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(7) Except as otherwise provided as a condition of its licence, a licensee may distribute the following signals and services on the audio portion of Its undertaking where such distribution does not result in the termination of any service described in subsection (6) or cause the distribution of any such service to be moved from an unrestricted channel to a restricted channel:
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(a) the signal of any foreign F.M. station distributed on the undertaking at the date these Regulations come into force;
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(b) the signal of any foreign F.M. station not described in paragraph (a) having a broadcast signal that is receivable directly at a local headend of the undertaking;
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(c) the audio portion of a foreign programming service having a primarily musical content similar to a licensed music specialty service;
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(d) an international radio service operated or funded by a national government or its agent.
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(8) Subject to subsection (9), a licensee shall not terminate, or move from an unrestricted channel to a restricted channel, a service described in subsection (6) unless prior to doing so the licensee terminates or so moves a service described in subsection (7).
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(9) A licensee shall not terminate or move from an unrestricted channel to a restricted channel the distribution on an audio channel of its undertaking of the signal of a radio station unless prior to doing so the licensee terminates or so moves the distribution on an audio channel of the audio portion of a programming service.
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Installation of Service
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17. (1) Except as otherwise provided as a condition of its licence, a cable licensee shall install the cable equipment necessary for reception in a household of the primary service tier distributed on the licensee's undertaking where
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(a) the household is located within the licensed area of the undertaking;
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(b) a cable line runs through or adjacent to the property on which the household is located;
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(c) water or sewer services are provided to the household by municipal or other public authority and the household is not located in a predominantly agricultural, commercial or industrial area to which cable service cannot reasonably be provided by the licensee; and
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(d) an amount equalling the charges for the installation plus the fee for the provision of the primary service tier for one month is presented to the licensee.
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(3) Except as otherwise provided as a condition of its licence, a licensee shall make available to a household, or to the owner or operator of a hotel, hospital, nursing home or other commercial or institutional premises, the apparatus necessary for reception of the programming services provided by its STV undertaking or by the STV component of its cable undertaking where
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(a) the household or premises is located within the licensed area of the undertaking; and (b) an amount equalling the charges for the apparatus plus the fee for the provision of the services for one month is presented to the licensee.
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(4) A licensee shall provide service to a subscriber so long as the subscriber pays the fee for each month of service before the month commences.
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Fees for Service
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18. (1) In this section, "basic monthly fee" means the maximum amount charged on a monthly basis for provision of the primary service tier of an undertaking, or for the use of the equipment by means of which the primary service tier is provided.
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(2) Except as otherwise provided in subsection (4), or as a condition of its licence in the case of a Class A cable licensee, a licensee shall not increase its basic monthly fee during a twelve month period commencing on September 1 in any year unless the difference between the increased fee and the basic monthly fee charged on the last preceding August 31 is, as a percentage of the last mentioned fee, not greater than 80 per cent of the percentage increase in the Consumer Price Index published by Statistics Canada for the twelve month period ending on the last preceding June 30.
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(3) Where a licensee increases its basic monthly fee, it shall not implement the increase prior to the expiration of
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(a) 40 days following the date on which a notice of the increase in the form established by the Commission is sent to each subscriber; and
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(b) 30 days following receipt by the Commission of the notice of the increase.
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(4) Subject to subsection (5), a Class B or C cable licensee or an STV licensee may increase its basic monthly fee in excess of the difference prescribed by subsection (2) if it does not implement the increase prior to the expiration of
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(a) 40 days following publication of a notice of the increase in a newspaper having general circulation within its licensed area; and
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(b) 30 days following receipt by the Commission of
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(i) a notice of the increase in the form established by the Commission, and
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(ii) proof that notice was given as required by paragraphs (a) and (3)(a).
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(5) The Commission may, prior to the date on which a basic monthly fee increase referred to in subsection (4) is to take effect,
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(a) suspend the implementation of all or part of that portion of the increase in excess of the difference prescribed by subsection (2) pending further consideration of the increase and
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(i) the receipt of additional information pertaining thereto,
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(ii) the completion of a public hearing into the increase, or
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(iii) both the receipt of additional information and the completion of a public hearing; and
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(b) disallow all or part of the said portion of the increase either without any suspension under paragraph (a) or after such a suspension.
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(6) This section comes into force on September 1, 1985.
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Alteration or Curtailment of Service
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19. (1) A licensee shall not alter or curtail any signal in the course of its distribution except as required or authorized by its licence or these Regulations, or except in accordance with an affiliation agreement entered into with a network operator.
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(2) For the purposes of subsection (1), the scrambling or unscrambling of a signal by a licensee in the course of providing a service to a subscriber does not constitute an alteration of the signal.
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Substitution of Identical Signals
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20. (1) For the purposes of this section, signals are identical where 95% of both the visual and the audio components of their programming are identical.
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(2) Except as otherwise provided in subsection (4), a licensee holding a Class A cable licence shall curtail its distribution of the signals of a television station and substitute the identical signals of another television station where the other television station has higher priority under section 6 and
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(a) the licensee has, at least seven days prior to the date on which the signals are broadcast, received from the broadcaster operating the other television station a written request for the curtailment and substitution; or
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(b) the broadcaster operating the other television station effects the curtailment and substitution by means of a switching device located in the station.
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(3) Except as otherwise provided in subsection (4) or as as a condition of its licence, a licensee holding a Class B or Class C cable licence may curtail and substitute the signals of television stations as described and in the circumstances described in subsection (2).
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(4) A licensee shall not curtail the signals of a television station and substitute those of another where the Commission
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(a) after holding a public hearing decides that the substitution is not in the public interest because undue financial hardship would result for the operator of the television station; or
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(b) decides that the substitution is not in the public interest because the signals contain subsidiary signals designed to inform, enlighten or entertain and the signals to be substituted do not contain the same or similar subsidiary signals.
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(5) A licensee shall discontinue a curtailment and substitution made in accordance with subsection (2) or (3) where the licensee verifies that the signals in a specific time period in respect of which such substitution is made are not, or are no longer, identical.
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(6) Where, in the circumstances and in respect of the signals described in subsection (2), a substition is requested by more than one broadcaster, the licensee shall substitute the signals of the television station having the higher or highest priority under section 6.
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