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Ottawa, 29 November 1991
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Decision CRTC 91-859
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Mountain Cablevision Limited
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Hamilton (Part of), Caledonia, Cayuga, Dunnville, Hagersville, Mount Hope and Binbrook, Ontario - 910599000
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Pursuant to Public Notice CRTC 1991-77 dated 6 August 1991, the Commission approves the application by Mountain Cablevision Limited (Mountain) for authority to distribute, at its option, the programming service of WNEQ-TV (PBS) Buffalo, New York, received over the air, as part of the basic service of the Hamilton portion of its cable system, so long as it does not distribute the signal of WQLN (PBS) Erie, Pennyslvania.
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Mountain currently distributes WQLN, together with the signal of a second PBS station, namely that of WNED-TV Buffalo, New York, as part of the basic service throughout the whole system. The licensee proposes to substitute WNEQ-TV for WQLN on the Hamilton portion of its cable system.
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According to the applicant, the reception quality of the Buffalo signal will be significantly better than that of WQLN. Mountain also stated that a survey of its subscribers indicates that a majority prefer to receive WNEQ-TV Buffalo rather than WQLN Erie because the Erie station duplicates 70% of WNED-TV Buffalo's programming. At the most recent renewal of this licence (Decision CRTC 91-709 dated 4 September 1991), the Commission authorized Mountain to continue to distribute the signal of a second PBS service, received over the air, at the licensee's local head end even though such distribution is contrary to the Commission's policy with respect to the carriage of U.S. network signals. The Commission noted in that decision that Mountain has been distributing a second PBS service on its system for many years.
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WNEQ-TV began operation in May 1987. In Public Notice CRTC 1986-182 dated 1 August 1986 announcing the enactment of the Cable Television Regulations, 1986 (the regulations), the Commission noted that the carriage of non-Canadian television stations that commenced operation later than 1 January 1985 would not be authorized through the regulations. Instead, licensees wishing to carry such stations were directed to apply to the Commission for specific authorization on a case-by-case basis.
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In Decision CRTC 90-794 dated 23 August 1990, the Commission denied an application by Mountain, as well as similar requests by 13 other cable operators in southern Ontario, to add the distribution of WNEQ-TV as part of the basic service, on the grounds that the "addition of WNEQ-TV could have a negative impact on Canadian broadcasters". Moreover, the Commission was concerned that WNEQ-TV would compete with Ontario's public educational broadcaster, TVOntario (TVO), for contributions from viewers.
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TVO submitted an opposing intervention to the present application, claiming, among other things, that distribution of WNEQ-TV would indeed have a negative impact on the intervener's ability to attract donations from viewers. TVO stated that, while WNEQ-TV currently does not conduct membership drives, there is no guarantee that, in future, it will not solicit contributions directly or through its sister station WNED-TV.
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The Commission also received an intervention from the Ministry of Culture and Communications on behalf of the Government of Ontario (Ontario). While neither opposing nor supporting the application, Ontario stated that disallowing the carriage of WNEQ-TV would reduce the perceived value of cable subscriptions as opposed to over-the-air antennae and/or satellite reception. Ontario also noted that, to date, WNEQ-TV has not solicited funds from viewers.
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For its part, Mountain stated that because only 5% of TVO's budget is derived from public donations, the current or potential impact of WNEQ-TV's fundraising activities would have a minimal effect on TVO's overall budget.
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The Commission has considered all of the evidence before it, including the views advanced by the applicant and the interveners. It is satisfied that, since this proposal involves the replacement of one PBS signal for another PBS signal and thus does not represent any increase in the number of U.S. signals distributed on the undertaking, an approval should not result in any undue impact on Canadian broadcasters. Accordingly, the Commission considers that an exception to its policy on the carriage of such stations is warranted in this particular case.
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Allan J. Darling
Secretary General
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