|
Public Notice
|
|
Ottawa, 23 August 1990
|
|
Public Notice CRTC 1990-83
|
|
PROPOSED AMENDMENTS TO THE CABLE TELEVISION REGULATIONS, 1986
|
RELATED DOCUMENT: Public Notice CRTC 1990-53 dated 15 May 1990.
|
At a public hearing commencing 5 February 1990 in Hull, Quebec the Commission considered among various related matters, proposals to change the regulation of cable television subscriber fees. The Commission set out its position with respect to these proposals in Public Notice CRTC 1990-53 dated 15 May 1990.
|
|
In line with the views presented in that Public Notice, the Commission now proposes the attached amendments to the Cable Television Regulations, 1986 (the regulations). These amendments would, among other things: revise the definition of pass-through charges; deregulate the rates for Class 2 systems with fewer than 2000 subscribers; establish a new formula for calculating partial indexing increases of basic monthly rates; limit the fee increases for capital expenditures (capex) to 3% of the monthly basic service rate; establish a sunset mechanism for capex increases; and extend the periods for prior notification by licensees of proposed rate increases and for comment thereon by subscribers.
|
|
Comments on these proposed amendments, which are set out in the Appendix, should be sent to the Secretary General, CRTC, Ottawa, Ontario, K1A 0N2 by 8 October 1990.
|
|
Alain-F. DesFossés
Secretary General
|
|
90-491-02 (SOR/DORS)
|
|
SCHEDULE
|
|
1. The definition "pass-through portion" in Section 2 of the Cable Television Regulations, 1986 is revoked and the following substituted therefor:
|
|
""pass-through portion" means that part of the basic monthly fee that reflects the amount payable by a licensee to a third party for the transmission of programming services, where
|
|
(a) the amount varies in proportion to the number of subscribers to whom the licensee distributes the programming services,
|
|
(b) the third party is licensed to operate a broadcasting undertaking, and
|
|
(c) the Commission has authorized the amount as a condition imposed pursuant to subsection 7(1) of the Broadcasting Act; (frais imputables)"
|
|
2. (1) All that portion of section 17 of the said Regulations preceding paragraph (a) thereof is revoked and the following substituted therefor:
|
|
"16. (1) Subject to subsection (2), except as otherwise provided pursuant to a condition of its licence, a licensee shall"
|
|
(2) Subparagraph 17(1)(b)(i) of the said Regulations is revoked and the following substituted therefor:
|
|
"(i) an amount not exceeding the amount of the nonrecurring costs to be reasonably incurred by the licensee for the installation or reconnection of the subscriber drop, determined in accordance with Circular No. 354 to All Class 1 & 2 Cable Licensees, published by the Commission on November 29, 1988,"
|
|
(3) Section 17 of the said Regulations is further amended by adding thereto the following subsection:
|
|
"(2) Where a licensee has less than 2000 subscribers on August 31 of any year, subsection (1) shall not apply to the licensee during the twelve month period beginning on January 1 of the following year."
|
|
3. (1) Subsections 18(1) and (2) of the said Regulations are revoked and the following substituted therefor:
|
|
"18. (1) Subject to subsection (1.1), a licensee shall not increase its basic monthly fee except in accordance with this section.
|
|
(1.1) Except as otherwise provided pursuant to a condition of its licence, a licensee that has less than 2000 subscribers on August 31 of any year may, during the twelve month period beginning on January 1 of the following year, increase its basic monthly fee by a reasonable amount.
|
|
(2) A licensee may increase its base portion during the twelve month period beginning on January 1, 1992, where the difference between the increased base portion and the amount of the base portion charged on December 31, 1991, expressed as a percentage of that amount, is less than or equal to the lesser of
|
|
(a) 80 per cent of the percentage increase in the All-items Consumer Price Index for Canada, published by Statistics Canada for the fifteen-month period ending on July 31, 1991 and
|
|
(b) the percentage increase in the All-items Consumer Price Index for Canada, published by Statistics Canada, for the fifteen month period ending on July 31, 1991, less 2 percentage points.
|
|
(2.01) A licensee may increase its base portion during the twelve month period beginning on January 1, 1993 and on January 1 of any year thereafter, where the difference between the increased base portion and the amount of the base portion charged on the preceding December 31, expressed as a percentage of that amount, is less than or equal to the lesser of
|
|
(a) 80 per cent of the percentage increase in the All-items Consumer Price Index for Canada, published by Statistics Canada, for the twelve month period ending on the July 31 of the preceding year, and
|
|
(b) the percentage increase in the All-items Consumer Price Index for Canada, published by Statistics Canada, for the twelve month period ending on the July 31 of the preceding year, less 2 percentage points."
|
|
(2) Subsection 18(3) of the said Regulations is revoked and the following substituted therefor:
|
|
"(3) A licensee may increase its pass-through portion where the increase is less than or equal to the amount of an increase that is, after September 1, 1986, authorized by the Commission to be payable to a third party and that is contained in the pass-through portion".
|
|
(3) All that portion of subsection 18(4) (Note 1) preceding paragraph (b) thereof is revoked and the following substituted therefor:
|
|
"(4) Where a licensee intends to increase its basic monthly fee pursuant to subsection (2), (2.01) (2.2), (2.3), (2.4) or (3), it shall not implement the increase unless
|
|
(a) it sends to each of its subscribers a written notice of the increase, setting out separately the increase, expressed in dollars, in each part of the basic monthly fee increased pursuant to subsection (2), (2.01), (2.2) (2.3), (2.4) or (3), as applicable;"
|
|
(4) Subparagraphs 18(4)(b)(ii) to (iii) (Note 1) of the said Regulations are revoked and the following substituted therefor:
|
|
"(ii) a declaration that the notice has been or will be sent at least 60 days prior to the proposed effective date of the increase,
|
|
(iii) in the case of an increase referred to in subsection (2.2) or (2.3), a list of all the specialty services for which the increase is sought, and (iv) in the case of an increase referred to in subsection (2.4), a list of all the specialty services distributed; and"
|
|
(5) Paragraph 18(4)(c) of the said Regulations is revoked and the following substituted therefor:
|
|
"(c) 60 days have elapsed following the receipt by the Commission of the copy of the notice and declaration referred to in paragraph (b)".
|
|
(6) All that portion of subsection 18(5) (Note 2) of the said Regulations preceding the definition "head end" is revoked and the following substituted therefor:
|
|
"(5) For the purpose of subsection (6),
|
|
"capital expenditure" means the capital expenditures that a licensee has incurred in respect of an activity or transaction during the twelve month period beginning on September 1, 1990 and on September 1 in any year thereafter that would not have been incurred if the activity or transaction had not been undertaken where the activity or transaction is
|
|
(a) the purchase of Capital lease of the licensee's head end, to the extent that the purchase of capital lease relates to the reception or processing of the basic service,
|
|
(b) the replacement or rebuilding of the licensee's distribution system or subscriber drops to upgrade the quality of service provided, to the extent that the replacement or rebuilding relates to the distribution of the basic service, or
|
|
(c) the purchase or capital lease of equipment used exclusively for community programming to enhance the quality or increase the quantity of community programming; (dépenses en immobilisations)"
|
|
(7) Subsection 18(6) (Note 2) of the said Regulations is revoked and the following substituted therefor:
|
|
"(6) Subject to subsections (7) and (9), a licensee may increase its basic monthly fee, during the twelve month period beginning on January 1 in any year, by the amount that is
|
|
(a) not greater than the result obtained by dividing 10 per cent of its capital expenditure for the period ending on August 31 of the preceding year by 12 times the number of subscribers to whom it sends a notice under paragraph 7(a); and
|
|
(b) not greater than three per cent of the base portion authorized as of August 31 of the preceding year.
|
|
(6.1) Where 60 months have elapsed following an increase pursuant to subsection (6) or that subsection as it read immediately prior to the coming into force of this subsection, which took effect on May 15, 1990 or later, a licensee shall decrease its basic monthly fee by an amount equal to that increase.
|
|
(6.2) On or before January 1, 1995, a licensee shall decrease its basic monthly fee by an amount equal to the total of all increase pursuant to subsection (6) as it read immediately prior to the coming into force of this subsection which took effect during the period beginning on August 1, 1986 and ending on may 14, 1990."
|
|
(8) Subparagraph 18(7)(b)(ii) of the said Regulations is revoked and the following substituted therefor:
|
|
(ii) a declaration that the notice has been or will be sent to each of its subscribers at least 60 days prior to the proposed effective date of the increase, and"
|
|
(9) Paragraph 18(7)(c) of the said Regulations is revoked and the following substituted therefor:
|
|
"(c) 60 days have elapsed following the receipt by the Commission of a copy of the notice, declaration and documentation referred to in paragraph (b)."
|
|
(10) Section 18 (Note 3) of the said Regulations is further amended by adding thereto the following subsection:
|
|
"(11) Where a licensee charges a fee for the provision of the basic service that is greater than the basic monthly fee, the licensee shall, on receipt of a notice from the Commission that the licensee's fee is greater than the basic monthly fee, provide to each subscriber who is so overcharged a refund or credit that is equal to the unauthorized amounts paid by the subscriber."
|
|
4. The third paragraph to the schedule to the said Regulations is revoked and the following substituted therefor:
|
|
"The detail of (name of licensee)'s justification for the proposed increase are set out in documentation filed with the Commission, which is available for public inspection during normal business hours at (address of licensee) and at the office of the CRTC, 1 Promenade du Portage, Hull, Quebec, and (address of the nearest regional office). You may express your comments on the proposed increase by writing to:
|
|
Secretary General
Canadian Radio-television
and Telecommunications Commission
Ottawa, Ontario
K1A 0N2
|
|
before (30 days after the date of mailing of the notice). a copy of your letter must be sent to (name of the licensee's representative, title, address)."
|
|
Note 1 - SOR/88-227, 1988 Canada Gazette Part II, p. 2237 Note 2 - SOR/87-424, 1987 Canada Gazette Part II, p. 2820 Note 3 - SOR/88-251, 1988 Canada Gazette Part II, p. 2424
|
|
|
|