|
Decision
|
|
Ottawa, 20 November 1984
|
|
Decision CRTC 84-957
|
|
Cablenet Limited
|
|
Weyburn and Estevan, Saskatchewan - 831501200 - 831500400
|
|
For related documents, see Decisions CRTC 83-126 dated 8 March 1983, CRTC 83-957 dated 15 November 1983 and CRTC 84-915 dated 23 October 1984.
|
|
Following a Public Hearing in Regina on 19 June 1984, the Commission approves the applications by Cablenet Limited ("Cablenet" or "the licensee") to change the authorized television services of the broadcasting receiving undertakings serving Weyburn and Estevan as follows:
|
|
Weyburn
|
|
By deleting the carriage of the signals of K70C1 (CBS-ABC) Columbus, KUMV-TV (NBC) and KWSE-TV (PBS) Williston, North Dakota, received over-the-air; and the signals of KTHI-TV (NBC) Fargo and WDAZ-TV (ABC) Devils Lake, North Dakota, received via microwave; and by adding the carriage of the signals of KOMO-TV (ABC) Seattle, Washington, WDIV (NBC), WJBK-TV (CBS) and WTVS (PBS) Detroit, Michigan, received via satellite from the Canadian Satellite Communications Inc. (CANCOM) network.
|
|
Estevan
|
|
By deleting the carriage of the signals of KUMV-TV (NBC), KXMD-TV (CBS-ABC) and KWSE-TV (PBS) Williston, received over-the-air, and the signals of KTHI-TV (NBC) Fargo and WDAZ-TV (ABC) Devils Lake, received via microwave; and by adding the carriage of the signals of KOMO-TV (ABC) Seattle, Washington, WJBK-TV (CBS), WDIV (NBC) and WTVS (PBS) Detroit, via satellite from CANCOM.
|
|
For both undertakings, the Commission also approves the proposed deletion of the distant head-end at Tolstoi, Manitoba and the back-up head-end at Drayton, North Dakota. The Commission notes that the authority to utilize these head-ends and to distribute the signals of the Fargo and Devils Lake stations received via microwave was never implemented, due to the fact that the Saskatchewan Telecommunications (SaskTel) fibre-optics network has not been extended to Estevan and Weyburn.
|
|
The licensee based its applications for a change in the source of the U.S. signals on the poor quality of the over-the-air North Dakota signals currently being carried and a desire on the part of subscribers to receive the higher quality signals available by satellite from CANCOM. The licensee stated it had surveyed subscribers in the two communities with regard to the proposed changes and, in support of its arguments, submitted two petitions which indicated that 97% of the signatories wished to receive the CANCOM signals. The petitions were signed by approximately 840 subscribers which represents slightly more than 10% of the total number of subscribers. During the hearing, the licensee also showed a short video presentation illustrating the problems experienced with the North Dakota signals.
|
In Decisions CRTC 84-915 and 84-916, dated 23 October 1984, the Commission approved applications by Sascable Services Inc., on behalf of the licensees of 41 broadcasting receiving undertakings in Saskatchewan, and by The Battlefords Community Cablevision Co-operative, licensee of 9 other cable systems in Saskatchewan, to make changes and amendments to their licences essentially similar to those proposed by Cablenet.
|
|
In approving the Sascable applications, the Commission stated in part that, based on all the evidence presented, it "is convinced that there is a serious problem with the quality and reliability of the North Dakota signals" and went on to say that it "has further determined that the unreliable quality ....is due, in large part, to the long distances the signals have to travel from the Williston and Devils Lake transmitters to the head-ends at Outram and Tolstoi respectively."
|
In this regard, the Commission notes that the distance between the head-ends of the Estevan and Weyburn systems and the Williston transmitters is even further than the distance between these transmitters and the Outram head-end utilized by the Sascable group. Furthermore, based on all the evidence presented by the licensee and other parties in the context of the Regina hearing, and the considerations outlined in Decision CRTC 84-915, the Commission has determined that the proposed change in signal source is warranted.
|
|
The licensee also applied to amend its licences by increasing the maximum monthly subscriber fees from $8.35 to $12.11. This $3.76 increase was based on $0.76 to cover the costs of providing the U. S. signals from CANCOM and $3.00 to cover the full-lease charges related to the proposed sale of the Estevan and Weyburn distribution plants to SaskTel. At the hearing, Cablenet informed the Commission that, due to a reduction in the charge to be paid to CANCOM, the portion of the fee increase related to the addition of the CANCOM signals would be reduced by $0.12, to $0.64.
|
|
The above-noted rate proposals are approved in part. The Commission approves a $0.64 increase in the maximum monthly fees based on the charge to be paid by the licensee to CANCOM for the new services and to cover direct incremental costs related to the exhibition of the CANCOM signals. Accordingly, the licensee may only implement this $0.64 increase on a pro rata basis, at $0.16 per signal as each of the signals is provided to subscribers.
|
|
The Commission approves a further $0.91 increase in the monthly fees, to $9.90. which it considers justified based on financial grounds, taking into account the SaskTel lease charges. This latter ninety-one cent ($0.91) increase may only be charged to subscribers when the proposed sale of the Estevan and Weyburn cable distribution plants to SaskTel is completed.
|
|
With respect to the SaskTel lease charges, the Commission has taken into consideration the fact that SaskTel will pay the licensee $730,000 for the cable distribution plants, and that the licensee may expect significant savings in operating expenses as a result of SaskTel assuming the operation and maintenance of the distribution systems.
|
|
The Commission has also taken into account the monthly fees, including the basic rates and SaskTel pass-through costs, charged to subscribers by other cable undertakings in Saskatchewan serving 1000 or more subscribers.
|
|
In addition, the Commission approves an increase in the maximum installation fees from $27.83 to $35.00. In approving this increase, the Commission has taken into consideration the fact that this increase only covers a portion of the actual costs of installation, and has determined that such an increase is justified on economic grounds.
|
The Commission acknowledges the interventions submitted with regard to these applications by the Canadian Broadcasting Corporation, the Canadian Association of Broadcasters, Meyer Broadcasting Company, Williston Enterprises Inc. and Prairie Public Broadcasting and considers that the concerns raised by these interveners have been dealt with in the context of Decision CRTC 84-915.
|
|
Fernand Bélisle Secretary General
|
|
|