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Ottawa, 30 September 1986
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Decision CRTC 86-968
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Vidéotron Ltée
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Part of Montreal, part of Laval, La Prairie, Beloeil, Saint-Jean-sur- Richelieu, Châteauguay, Sainte- Thérèse, Saint-Jérôme and adjacent communities, Quebec - 860386200 - 860387000 - 860388800 - 860389600 - 861042000 - 861058600 - 861059400
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Following public hearings in Sainte-Foy, Quebec on 16 June 1986 and in Hull, Quebec on 17 June 1986, the Commission renews the licence for the broadcasting receiving undertaking serving part of Metropolitan Montreal. It also approves the application to amend this licence by changing the authorized service area by consolidating under the same licence the currently authorized service areas of Montreal; Laval; La Prairie, including Boucherville and Varennes, which were previously licensed to Transvision Rive-Sud Inc. (see Decision CRTC 86-802); Beloeil; Saint-Jean-sur-Richelieu; Châteauguay; Sainte-Thérèse; Saint-Jérôme and adjacent communities.
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The Commission will issue a Class 1 licence to Vidéotron Ltée (Vidéotron) for the period of 1 October 1986 to 30 September 1990. The operation of this undertaking will be regulated pursuant to Parts I and II of the Cable Television Regulations, 1986 (the regulations) (SOR/86-831 dated 1 August 1986) and the licence will be subject to the conditions specified in this decision and in the licence to be issued.
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The Department of Communications (DOC) has advised the Commission that it is prepared to renew the Technical Construction and Operating Certificate for a period of only three years, until 30 September 1989. Accordingly, approval of the renewal granted herein beyond that date, to 30 September 1990, is subject to the receipt of further technical certification from the DOC.
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The Commission points out that, as a result of the approval of the proposed consolidation, no further action is necessary on the following Vidéotron renewal applications, which were scheduled for consideration at the above-noted public hearings. The licences covering these areas and their adjacent communities will, therefore, expire on 30 September 1986: part of Laval (860383900), La Prairie (860381300), Beloeil (860384700), Saint-Jean-sur-Richelieu (860393800), Châteauguay (860390400), Sainte-Thérèse (860395300) and Saint-Jérôme (860394600). Nor is further action required with respect to the renewal application for the licence of Transvision Rive-Sud Inc. (860289800), which was included in Public Notice CRTC 1986-98 dated 30 April 1986.
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With respect to the proposed amalgamation of licences, the licensee indicated at the hearing in Hull that its purpose was mainly: [TRANSLATION] "to reduce the volume of administrative procedures, as much for the Commission as for us at Vidéotron, without compromising the quality of service - on the contrary". The licensee pointed out, among other things, that the programming services offered subscribers were almost identical in all of the areas to be amalgamated since they originate with Intervision Montréal and also that the monthly fee charged its subscribers was the same. Further, the licensee said that it has no intention of changing its present policy of decentralization with respect to community programming and subscriber services in the 14 local community programming centres already in place. It also stated that the [TRANSLATION] "ten regional offices currently in place will be maintained or even expanded, as a means of bettering customer relations ...".
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The Comission notes that, as a result of the amalgamation, certain stations such as CFNJ-FM Saint-Gabriel-de-Brandon and CKRK-FM Kanawaké, which to date have been designated for priority carriage in only some areas, would have to be distributed according to the regulations throughout the entire new service area authorized by this decision. With respect to audio programming services, the licensee is reminded that, pursuant to section 16 of the regulations, it must distribute all the mandatory audio programming services, including local AM stations.
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The licensee stated at the hearing that the large number of radio stations in the Montreal area has created difficulties in terms of spectrum availability, but that it was prepared to look for solutions in order that more listeners may have access to these stations. The Commission notes, in this regard, that in Public Notice CRTC 1986-182 dated 1 August 1986 which announced the regulations, it stated:
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The Commission recognizes that the mandatory carriage of all local stations will create problems of spectrum availability in some major urban areas ... in those instances where major problems relating to spectrum availability do arise, licensees may apply for a condition of licence to modify the priority carriage requirements.
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The Commission recognizes that the problem of spectrum availability may arise in the Metropolitan Montreal area, particularly if all of the local AM stations are distributed throughout the territory amalgamated under the new licence. If such is the case, the licensee should submit to the Commission as soon as possible an application for exemption from section 16 of the regulations, specifying which stations it would not be able to distribute in all or part of its authorized service area.
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With respect to television services, the Commission approves, by condition of licence, the licensee's application for exemption from paragraph 9(1)(c) of the regulations with regard to the priority designation of CJOH-TV-8 Cornwall, Ontario. The licensee is therefore authorized to distribute the signal of this station on a basic service channel available by means of a converter rather than a channel on the basic band (channels 2 to 13).
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The Commission received a written intervention from Bushnell Communications Limited, licensee of CJOH-TV Ottawa and its rebroadcaster CJOH-TV-8 Cornwall, which expressed opposition to Vidéotron's request for exemption. In support of its application, Vidéotron pointed out that the current situation has existed for years and that none of its subscribers has ever complained. It also said that there is a great similarity between the programming of CJOH-TV and CFCF-TV Montreal especially during prime time, and that the latter station is already carried on the licensee's basic band. It added that CJOH-TV-8 essentially rebroadcasts the programming of the CTV network for the residents of Cornwall and Eastern Ontario.
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Consistent with Decision CRTC 85-1310 dated 27 December 1985, the Commission relieves the licensee, by condition of licence, from the application of paragraph 9(1)(c) of the regulations with respect to the priority designation of the educational television station CFTU-TV (C.A.N.A.L.) Montreal. The licensee is therefore authorized to distribute this programming service on a channel of the basic service available by converter.
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Consistent with Decisions CRTC 82-921 dated 30 September 1982 and CRTC 85-632 dated 1 August 1985, the Commission relieves the licensee, by condition of licence, from the requirement of paragraph 9(1)(c) to distribute the programming service of local television station CHOY-TV Saint-Jérôme. The Commission also relieves the licensee, by condition of licence, from the requirement of subsection 13(1) of the regulations that the licensee not distribute on its community channel any programming service other than those listed in that subsection, and authorizes the licensee to distribute on the community channel serving Saint-Jérôme and neighboring communities the programming service of CHOY-TV Saint-Jérôme. It is a condition of licence that the programs of CFTU-TV Montreal which are rebroadcast by CHOY-TV not be distributed on this community channel.
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The Commission notes that the licensee has proposed to continue the distribution of more than one affiliate of a U.S. television network, which is contrary to the Commission's policy with respect to the distribution of U.S. networks. However, since such distribution has been in place in some parts of the service area for nearly fifteen years, the Commission considers that an exception is justified in this case. It therefore authorizes the licensee to continue the distribution of the signals of WMTW-TV (ABC) Poland Spring, Maine, and WVNY (ABC) Burlington, Vermont, on the basic service of this undertaking.
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The licensee has also proposed to continue the distribution of a number of alpha-numeric and special programming services. The Commission notes that, as a result of the promulgation of the regulations, the licensee may distribute any alpha-numeric service without further Commission authorization.
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The licensee is authorized to continue the distribution of the following special programming services, without advertising material: Loto-Québec lottery results, television listings, Arts and Entertainment, Sports and Leisure and Télé des Jeunes.
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It is authorized to distribute French Television Programming (TVFQ-99) on the basic service.
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With regard to the distribution of the ethnic programming service, the Commission authorizes the licensee, by condition of licence, to include video and/or audio sponsorship mention, including logo, name, address and type of business undertaking in program credits on the ethnic channel of this undertaking. In this particular instance, the licensee is also authorized to add French- or English-language subtitles to feature films distributed on the multicultural special programming service where these are an integral part of the original production.
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The Commission notes that the distribution of Greek radio is in conformity with paragraph 16(3)(d) of the regulations.
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Because of its special programming and alpha-numeric services, Vidéotron offers a wide range of very diversified, quality services. The licensee stated at the hearing that these play a strategic role in the development of this undertaking and that it proposes to increase both the quantity and quality of these services. The Commission has noted, among other things, the licensee's plans to reserve a channel exclusively for ethnic programming beginning in September 1986, and its proposals to improve the Arts and Entertainment service through enhanced coverage of local artistic and cultural events. It also plans to increase both the quantity and the quality of the "Télé des Jeunes" service.
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The Syndicat des employés de Vidéotron SCFP, local 2815, representing the staff of the Montreal community television operation, appeared at the Hull hearing to complain about the lack of human, financial and technical resources allocated by the licensee to community programming in Montreal.
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In reply, the licensee explained that unlike the situation that existed before it acquired the undertaking in 1980, when all local programming was concentrated on the community channel, local programming is now divided among a number of channels offering special programming services, with community programming being allocated to one particular channel. The licensee also pointed out that its overall effort with respect to programming has remained constant, accounting for approximately 10% of its revenue.
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The licensee has demonstrated initiative and dynamism with regard to community programming, particularly through the establishment of models for community participation which appear to meet the needs of the communities that it serves. The Commission also recognizes the licensee's efforts in making more French-language services available, not only at the local level but also, with its Télé des Jeunes service, on a provincial basis.
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The Commission nevertheless asks the licensee to examine the allocation of its programming expenditures to ensure that the resources it allocates to community programming and to special programming services are so divided as to permit the production of quality community programming based on the principle of public access. The Commission also expects that the amalgamation of licences herein authorized will not lead to a reduction in the community programming services currently available, particularly through the merger of adjacent production centres. In this regard, Vidéotron is expected to file annual reports with the Commission describing in general terms the programming and the human, financial and technical resources that it has allocated at each production centre.
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The Commission notes that an analysis of the programming broadcast on the community channel and on the Sports and Leisure special programming channel revealed that both of these channels were mentioning sponsorship credits. In a letter to the Commission dated 25 April 1986, the licensee acknowledged that some of these sponsorship credits have caused problems and promised to correct the situation. The Commission reminds the licensee that under the regulations, contra, credit and sponsorship messages now are permitted on the community channel, although regular commercial type "spot" advertising continues to be prohibited. No form of advertising, however, either direct or indirect, is permitted on the special programming channels.
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Vidéotron stated at the Hull hearing that over the past few years it has continued its expansion work within the areas it is licensed to serve, and that effective 31 August 1986 its objectives will have been achieved on schedule. The Commission notes, however, that at the time of the hearing, some areas had not yet received service, particularly in municipalities where underground wiring is required by municipal by-law. In this regard, the licensee confirmed at the hearing that agreements have been reached with the municipalities of Saint-Lambert and the Magdeleine area of La Prairie and that it would also be able to proceed in a similar manner in Brossard, where the burying of Bell Canada lines was to begin in the summer or fall of 1986. With respect to Ville de Lorraine, which intervened at the hearing on this matter, the licensee stated that a technical study had been completed and that a meeting had been planned with representatives of this municipality. It explained that the prohibitive cost of leasing public utility lines had prevented progress previously but that it was now in a position to proceed with the installation of its service jointly with the public utilities. The Commission expects the licensee to undertake this work immediately in new residential developments and to offer service as soon as possible in all of its licensed areas.
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The Commission also received interventions from the City of Farnham and from Temsat Télédistribution Inc. concerning Vidéotron's delay in providing service to the communities of Farnham and Saint-Rémi. At the Hull hearing, Vidéotron promised to complete all of the work and to offer service in these two communities before the end of 1986. The Commission expects the licensee to begin this work immediately.
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The Commission reminds the licensee that, in accordance with section 17 of the new regulations, it must make the necessary arrangements to offer service upon request from any resident of its licensed area, unless otherwise provided for pursuant to a condition of licence. A complete progress report must be filed with the Commission every four months until each of the cases noted above has been completely resolved.
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The licensee is authorized to charge its subscribers a maximum basic monthly fee of $13.66 for the delivery of programming services on its basic service. This amount forms the base portion of the basic monthly fee for the purpose of section 18 of the regulations.
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It is a condition of licence that the licensee delete commercial messages from television signals received from broadcasting stations not licensed to serve Canada and substitute suitable replacement material in place of such messages upon receipt of notice in writing from the Commission.
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Fernand Bélisle
Secretary General
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