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Decision
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Ottawa, 28 September 1990
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Decision CRTC 90-1037
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Vidéotron Ltée, Québec, Lévis and surrounding areas, Quebec - 893592600
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Following a Public Hearing in Montréal beginning on 13 March 1990, the Commission renews the Class 1 licence for the broadcasting receiving undertaking serving Québec, Lévis and surrounding areas, held by Vidéotron Ltée (Vidéotron), from 1 October 1990 to 31 August 1995. The operation of the undertaking is regulated pursuant to Parts I and II of the Cable Television Regulations, 1986 (the regulations), and the licence will be subject to the conditions specified in this decision and in the licence to be issued.
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In addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations, the licensee is authorized, by condition of licence, to continue to distribute, at its option, CFTM-TV and CFCF-TV Montréal, received via microwave, as part of the basic service. The licensee is also authorized to continue to distribute, at its option, WVNY (ABC) and WCAX-TV (CBS) Burlington, Vermont and WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, received via microwave, as part of the basic service. The Commission further authorizes the licensee to continue to distribute, at its option, the following special programming services, provided they contain no advertising messages: "Tele-teaching" courses (courses provided on television) which may include institutional advertising as allowed in Decision CRTC 88-533, as well as the "Télé-Plus" channel for members of the public service.
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In addition, pursuant to the authority granted recently in its letter dated 21 August 1990, the Commission authorizes the licensee to continue to distribute, at its option, an "arts and entertainment" specialty programming service which, by definition, must not carry any advertising messages. Pursuant to the authority granted, the licensee is also authorized to use its "arts and entertainment" channel for the distribution of its interactive television programming, exclusive of other interactive programs by authorized broadcasters, for the purpose of familiarizing subscribers with the use of the "Videoway" terminal. The Commission reminds the licensee that programs on the "arts and entertainment" service should generally be drawn from categories 7, 8 and 9, and from category 6 for some sports programs as defined in Schedule I of the Television Broadcasting Regulations, 1987.
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In this regard, the Commission reiterates its concerns that the additional costs incurred by broadcasting licensees in producing interactive programs must not diminish their commitment in terms of the expenditures that must be devoted to the production of Canadian programs. The Commission also expects Vidéotron to offer equal access to all other broadcasters interested in participating in research and development on new sources of interactive programming. Vidéotron must also ensure that the development and marketing of its "Videoway" terminal and interactive television service in the Québec region are not subsidized by basic service subscribers.
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The Commission denies the licensee's request to be relieved of the requirement, pursuant to subsection 16(2) of the regulations, that it distribute the priority audio programming service of CIGB-FM Trois-Rivières. The Commission is of the view that this request is not justified.
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At the last licence renewal in 1986 (Decision CRTC 86-969), the Commission approved the licensee's application to consolidate the currently authorized service areas of Québec, Lévis and the surrounding communities under the same licence. At that time, the licensee committed itself to ensuring that the quality of service would not be compromised as a result of this change. It had no intention of changing the existing local orientation of community programming and subscriber services. Accordingly, the Commission had set out its expectation that the consolidation not lead to a reduction in community programming services as a result, for instance, of the amalgamation of production centres, and that the licensee ensure that sufficient resources are allocated to allow the production of quality community programs which are based on the principle of public access. In this context, the Commission notes the explanation provided by Vidéotron regarding the circumstances leading to the closing of the community production studio in Québec in the spring of 1988. The licensee indicated at the hearing that the studio, while relocated in February 1990, was not expected to open until the end of May 1990. It also stated that in the absence of the Québec studio, the Lévis studio was still available for the residents of Québec; furthermore, it had made considerable use of a production vehicle during that period, and a substantial portion of the community television needs in Québec were fulfilled by the special programming channel "Télé-Fonctionnaires" (now known as "Télé-Plus").
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Given the fact that this undertaking serves over 150,000 subscribers and that, in 1988, it distributed some 22 hours of community programs each week, the Commission is of the view that Vidéotron's performance in this area is grossly inadequate. In its 1975 policy statement on cable television, the Commission said "the community channel must become a primary social commitment of the cable television licensee". In view of the considerable resources available to the licensee, its leadership role, and the commitments made in this area in 1986, the Commission considers that Vidéotron has not honoured its responsibilities with regard to the operation of the community channel during the current licence term. At the hearing, the licensee outlined the steps it has taken to revive the community channel in Québec. It indicated that a corporation has been established to operate the channel, and that a board of directors was elected at a public meeting in January 1990. As of the date of the hearing, twenty program proposals were being evaluated and three series of 13 half-hour programs were already produced. Vidéotron also committed itself to purchasing a second community production vehicle.
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The Commission expects Vidéotron to honour in full the commitment it made in its current licence renewal application to produce at least 40 hours each week of original Québec-Lévis area community programming during the new licence term. The licensee is required to submit a report to the Commission, within three months of the date of this decision, describing the program proposals it has approved, the proposed programming schedule for the community channel, the source of the programs (the studio in Québec, Lévis or Saint-Damien-de-Buckland), and indicating the proposed purchase date of the second community production vehicle.
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The Commission notes the philosophy described by Vidéotron at the hearing concerning the operation of the community channel and the important contribution of volunteers, as well as its commitment to increase its annual community programming budget from $546,660 in the first year of the new licence term to $758,236 in the fifth year. The Commission further notes that, following the issuance of Public Notice CRTC 1990-57 dated 5 June 1990, it initiated a review of its community channel policy and, notably, the level of financial support for community programs. It encourages the licensee to increase its annual budgetary commitments to the community channel in proportion to the revenue derived from its basic service.
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The Commission acknowledges the written intervention filed by TVOntario opposing the licensee's distribution of its French-language service, ("La Chaîne française"). The Commission notes that TVOntario does not appear on the distribution list proposed by the licensee.
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Alain-F. Desfossés
Secretary General
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