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Ottawa, 8 November 1993
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Decision CRTC 93-669
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Cable 2000 Inc.
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Centreville, Florenceville, Lakeville, Nackawic, Perth-Andover, Plaster Rock, Temperance Vale and Woodstock, New Brunswick (Saint John River Valley Systems); and
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Allardville, Bathurst, Big River, Campbellton, Caraquet, Dalhousie, Jacquet River, Miscou Centre, Salmon Beach, Shippegan, South Tetagouche, Tracadie/Neguac, New Brunswick and Carleton, Quebec (Northern New Brunswick and Acadian Peninsula Systems)
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- 920871100 - 920872900 - 920873700 - 920874500 - 921954400 - 921953600 - 920876000 - 920877800 - 920878600 - 920879400 - 920880200 - 920881000 - 920882800 - 920883600 - 920884400 - 920885100 - 920886900 - 920887700 - 920888500 - 920889300 - 920890100 - 920891900 - 920892700 - 920893500 - 920894300 - 920896800 - 920897600 - 920898400 - 920899200 - 920900800 - 920901600 - 920902400 - 920903200 - 920904000 - 920905700 - 920906500 - 920907300 - 920908100 - 920909900 - 920895000
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Deletion of local head ends and interconnection of systems, redefinition of authorized service areas, distribution of new signals and other licence amendments
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Pursuant to Public Notice CRTC 1993-42 dated 29 April 1993, the Commission approves the applications by Cable 2000 Inc. as described below.
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In its applications, the licensee proposed to link its cable distribution undertakings primarily through the use of optical fibre so that the undertakings in Northern New Brunswick and on the Acadian Peninsula, and the undertakings in the Saint John River Valley, each receive signals from one head end. New optical fibre facilities will be provided by The New Brunswick Telephone Company, Limited (NBTel) and will deliver television programming services originating from Bangor/ Calais, Maine.
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The Commission notes that the proposed changes will increase the number of programming services provided to the smaller cable systems, and will also increase the number of households having access to cable service.
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Interconnection of cable distribution undertakings
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The Commission approves the applications by Cable 2000 Inc. for authority to delete the local head ends and to interconnect its cable distribution undertakings in the Saint John River Valley with the Woodstock undertaking; and similarly, to delete the local head ends and to interconnect all its cable distribution undertakings in Northern New Brunswick and the Acadian Peninsula with the Bathurst undertaking.
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The Commission notes that the Bathurst undertaking is a Class 1 system (more than 6,000 subscribers), that the undertakings at Woodstock, Campbellton and Dalhousie are Class 2 systems (fewer than 6,000 subscribers) and that the Nackawic undertaking is a Class 2 system (fewer than 2,000 subscribers). These undertakings are regulated pursuant to Parts I and II of the Cable Television Regulations, 1986 (the regulations). The remaining undertakings are regulated pursuant to Parts I and III of the regulations (Part III systems).
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Redefinition and extension of authorized service areas
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The Commission approves the applications to change, as follows, the authorized service areas of the undertakings noted below:
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Allardville - by extending to the northwest of Allardville to join with the Bathurst service area;
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Bathurst - by extending to the west of Bathurst to include areas known as South Tetagouche, Val-Michaud, Sormany, Alcida and Belledune Station;
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Big River - by extending to the south of Blue Mountain Settlement to an area as far as Pabineau Island;
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Campbellton - by including areas known, to the east, as Lac-des-Lys and to the north, as Broadlands;
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Caraquet - by redefining the presently authorized service area;
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Centreville - by extending to the east of Centreville to include an area known as Hunters Corner and, to the south of Highway 560, following Highway 560 approximately 1500 metres;
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Dalhousie - by redefining the presently authorized service area;
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Florenceville - by extending to the west along Highway 110 to join with the boundaries of Centreville;
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by extending to the east of Bristol to include areas known as Fielding and Gordonsville;
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by extending to the northeast of an area called Bath to include areas known as Haley Corner and Gibberson Settlement;
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by extending to the north to include an area known as Tarrtown; and
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by extending to the northwest along Highway 105 approximately 2000 metres;
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Jacquet River - by extending to the south of Jacquet River to include areas known as Becketville, Mitchell Settlement, Archibald Settlement and Sunnyside; and to the west of Highway 134 to Benjamin River;
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Lakeville - by extending to the north along Highway 560 to interconnect with the Centreville system which will include areas known as Williamstown and Bradley Corner;
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Miscou Centre - by extending to the south along Highway 113 to include Miscou Harbour;
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Nackawic - by extending to the southwest of Nackawic along Highway 105 past Southampton approximately 1900 metres; and
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by extending to the southeast along Highway 105 past Upper Queensbury approximately 2250 metres;
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Perth-Andover - by extending service along Highway 2 approximately 3000 metres;
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Plaster Rock - by extending to the south to include an area known as Three Brooks Station; and
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by extending to the south along Highway 108 to include areas known as Linton Corner and Three Brooks; and
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by extending to the west to include areas known as Sisson and Sisson Ridge;
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Salmon Beach - by extending to the northeast along Highway 11 to include areas known as Janeville, Clifton, Stonehaven, New Bandon and Pokeshaw;
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Shippegan - by extending the service area on the "Île-Lamèque";
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Temperance Vale - by extending to the south to join with the Nackawic service area and to include an area known as Rossville; and
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by extending to the south along Highway 605 to the Saint John River; and
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by extending to the north along Highway 605 approximately 500 metres;
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Tracadie/Neguac - by extending to the west of Haut-St-Isidore along Highway 360 to Bois-Gagnon; and
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by extending to the west of Covedel along Highway 445 to Fairisle (and part of Stymiest Road); and
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by extending to the northwest of Lower Neguac along Highway 460 to Highway 445;
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Woodstock - by extending to the south of Woodstock to include areas known as Lower Woodstock, Indian Village, Bulls Creek, Dibblee and Teeds Mills; and
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by extending to the north of Woodstock along Highway 2 approximately 4500 metres.
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In each case, the approval is subject to the requirement that construction in the extended areas be completed and the extended system be in operation within twelve months of the date of this decision or, where the licensee applies to the Commission and satisfies the Commission that it cannot complete the construction and begin the operation of the extended system before the expiry of this period and that an extension is in the public interest, within such further periods of time as are approved in writing from time to time by the Commission. Should the Commission refuse to approve an extension of time requested by the licensee, the authority granted shall lapse and become null and void upon the termination of the last approved extension period.
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Revocation
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In view of the approval granted herein and pursuant to paragraph 9(1)(e) and subsection 24(1) of the Broadcasting Act, the Commission hereby revokes the licence issued to Cable 2000 Inc. with respect to South Tetagouche (Decision CRTC 90-14 dated 15 January 1990). The Commission notes, therefore, that no further action is required concerning applications 920906500 and 920907300 gazetted under Public Notice CRTC 1993-42 with respect to South Tetagouche.
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Distribution of signals
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The licensee is authorized to distribute WVII-TV (ABC), WABI-TV (CBS) Bangor, WLBZ-TV (NBC) Calais and WMEM-TV (PBS) Presque Isle, Maine, as part of the basic service of the cable distribution undertakings serving Allardville, Bathurst, Big River, Campbellton, Caraquet, Centreville, Dalhousie, Florenceville, Jacquet River, Lakeville, Miscou Centre, Nackawic, Perth-Andover, Plaster Rock, Salmon Beach, Shippegan, South Tetagouche, Temperance Vale, Tracadie/Neguac, New Brunswick and Carleton, Quebec.
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The Commission notes that the licensee will cease distribution of the signals of WDIV (NBC), WXYZ-TV (ABC), WJBK-TV (CBS) and WTVS (PBS) Detroit, Michigan, received via satellite from the Canadian Satellite Communications Inc. (CANCOM) network.
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Exemption from the requirement of Section 23
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The Commission approves the licensee's request with respect to section 23 of the regulations, for the undertakings serving Allardville, Big River, Caraquet, Centreville, Florenceville, Jacquet River, Lakeville, Miscou Centre, Perth-Andover, Plaster Rock, Salmon Beach, Shippegan, South Tetagouche,
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Temperance Vale, Tracadie/Neguac, New Brunswick and Carleton, Quebec. Accordingly, it is a condition of licence that the licensee be relieved of the requirement that it distribute at least four television programming services as provided for in section 23 of the regulations, so long as it distributes only those U.S. television services listed in the current applications, or as may be authorized by the Commission.
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Exemption from the requirement of Section 25
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Section 20 of the regulations requires that, in certain circumstances, Class 1 systems curtail their distribution of a programming service and substitute the identical programming service of a local or regional television station, whereas Part III systems are subject to the requirement, pursuant to Section 25 of the regulations, that they not curtail or alter any programming service in the course of its distribution.
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As a result of the interconnection of Part III systems with a Class 1 system approved herein, the Commission approves the licensee's request to be relieved of the requirement of Section 25 of the regulations with respect to the Part III undertakings serving Allardville, Big River, Caraquet, Jacquet River, Lakeville, Miscou Centre, Salmon Beach, Shippegan, South Tetagouche, Tracadie/ Neguac, New Brunswick and Carleton, Quebec. Accordingly, the licensee is relieved, by condition of licence, of the requirement that it not alter or curtail any programming service or radiocommunication in the course of its distribution.Considerations
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In assessing these applications, the Commission has taken into consideration the fact that, as a result of the interconnection of the Saint John River Valley systems with the Woodstock (Class 2) system and of the Northern New Brunswick and Acadian Peninsula systems with the Bathurst (Class 1) system, subscribers of the Part III systems will receive, at no additional cost, the same programming services as do subscribers of the Woodstock and Bathurst systems.
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The Commission has also taken into consideration Cable 2000 Inc.'s statement that it did not intend to request any future increase in basic monthly subscriber fees under subsections 18(6) or 18(8) of the regulations as a result of the interconnection contemplated in these applications other than autorized signal fee pass-throughs.
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According to the applications, the total costs associated with the proposed interconnection of systems were approximately equivalent to the costs currently paid to CANCOM for signal delivery. However, after reviewing the financial projections provided by the licensee, the Commission has determined that only those direct annual costs payable to NBTel for transport of signals should be used for the purpose of comparing, to current costs, the costs associated with the proposed interconnection of systems and replacement of signals.
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The Commission considers, moreover, that the on-going fees payable to CANCOM after the replacement of signals has commenced, according to the contractual arrangements for the affected systems, and the interest and depreciation on the capital costs of the interconnection should be borne by the licensee, not by subscribers. Consequently, the Commission has determined that subscribers should receive the benefit of the considerable difference between the amount the licensee currently pays CANCOM for the delivery of the signals being replaced and the annual costs payable to NBTel, in accordance with the approved tariff.
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In this regard, the Commission notes that, in its applications, Cable 2000 Inc. made the commitment to decrease the basic monthly subscriber fee of the Bathurst and Dalhousie systems by $0.20 per month, and by $0.26 per month in Campbellton, in accordance with Section 18 of the regulations. In view of the above-noted cost savings, the Commission strongly expects the licensee to ensure that the remaining reduction in its costs as a result of the approval granted herein is reflected by an appropriate reduction in the basic monthly fee for affected subscribers, upon implementation of the amalgation. The Commission notes that, in accordance with the financial information provided as part of the applications, the cost savings should be approximately $300,000.
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Accordingly, the Commission requests that the licensee submit, within sixty days following completion of the interconnection project, a report outlining how it has met the Commission's expectations.
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Interventions
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The Commission notes the interventions in support of these applications submitted by several public bodies, private corporations and individuals from the communities affected by these changes. The Commission also notes the comments submitted by TVOntario and the City of Campbellton, as well as the intervention opposing this application submitted by James Blanchard, and it is satisfied with Cable 2000 Inc.'s replies thereto.
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The Commission further acknowledges the intervention submitted by CANCOM in opposition to these applications. The Commission has carefully examined CANCOM's intervention and has weighed the impact of Cable 2000 Inc.'s proposal on small cable systems throughout Canada generally and on Cable 2000 Inc.'s subscribers in particular, as well as on CANCOM itself and on the Canadian broadcasting system. On balance, the Commission is satisfied that approval of these applications, subject to the considerations outlined in this decision, is in the public interest.
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Allan J. Darling
Secretary General
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