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Ottawa, 9 December 1993
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Decision CRTC 93-738
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Norcom Telecommunications Limited
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Kenora, Keewatin and Jaffray Mellick, Ontario - 921202800 - 921827200 - 931027700
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Licence renewal and amendment
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Following a Public Hearing in the National Capital Region beginning on 6 July 1993, the Commission renews the Class 2 licence held by Norcom Telecommunications Limited (Norcom) for the cable distribution undertaking serving Kenora, Keewatin and Jaffray Mellick, from 1 January 1994 to 31 August 1997. The licence will be subject to the conditions in effect under the current licence, as well as to those conditions specified in this decision and in the licence to be issued. This term will enable the Commission to assess at an early date the licensee's compliance with the Cable Television Regulations, 1986 (the regulations).
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In Decision CRTC 89-386 dated 27 June 1989 which last renewed Norcom's licence for this undertaking, the Commission reminded the licensee that it must distribute all mandatory programming services, including CJRL Kenora. Prior to the current hearing, it was brought to the Commission's attention that the signal of CJRL was still not being distributed on the undertaking. At the hearing, the licensee stated that the failure to distribute this priority signal had been an oversight on its part, and that the service would be available on an audio channel of the basic service as soon as the necessary equipment was delivered. The licensee has since advised the Commission that the signal of CJRL was added to the basic service on 13 July 1993.
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At the 6 July 1993 hearing, the Commission also discussed with the licensee its unauthorized distribution of WTBS Atlanta on a discretionary tier, unlinked with a Canadian pay television service.
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The licensee argued that neither of the two courses of action that would bring it into compliance with the regulations is desirable. The first option, that of dropping the WTBS service entirely, would deprive subscribers of a very popular service and would have a very negative impact on customer relations. The second option, that of offering WTBS as part of a discretionary tier with a Canadian pay service, would oblige subscribers to pay an additional $10 per month, again leading to customer dissatisfaction.
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The licensee requested, therefore, that the Commission approve its application for a licence amendment, which was on the agenda of the 6 July hearing, by adding a condition of licence relieving it of the requirements of Public Notice CRTC 1987-261 entitled "Distribution and Linkage Requirements". Under these requirements, as licensee of a Class 2 undertaking, Norcom would normally be obliged to offer WTBS to subscribers in a package containing a Canadian pay television service. The requested exemption would allow Norcom to distribute WTBS on a discretionary tier without linking it with a Canadian pay service.
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Interventions in opposition to this request were submitted by the Canadian Association of Broadcasters, The Family Channel Inc. and First Choice Canadian Communications Corporation (The Movie Network). The interveners argued that the distribution and linkage requirements are in place to protect Canadian services and strengthen the Canadian broadcasting system. The Family Channel and The Movie Network further stated that the precedent of granting exemptions to the linkage requirements could represent a significant threat to the continued growth of all Canadian pay services.
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Interventions in support of the renewal and amendment applications were submitted by the Towns of Kenora, Keewatin and Jaffray Mellick.
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The Commission views with grave concern Norcom's extended period of apparent non-compliance with the regulations noted above, and reminds the licensee that it must ensure that it is in compliance at all times with all regulations. In view of the non-compliance, the licensee's request for an exemption from the requirements of Public Notice CRTC 1987-261 is denied.
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Licence amendment
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At the hearing, the Class 2 status of this undertaking was explored. In 1991, the licensee applied to the Commission for authorization to operate the cable system as a Part III undertaking, to which the requirements of Public Notice CRTC 1987-261 would not apply. In Decision CRTC 92-211, the Commission denied that application, noting that a non-Canadian microwave signal continued to be available to Norcom.
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Norcom stated at the hearing that this signal was no longer being distributed on the undertaking, and that an application to operate as a Part III licensee would shortly be filed with the Commission. An application (931027700) by Norcom to that effect was received after the hearing, and was announced in Public Notice CRTC 1993-130 dated 8 September 1993.
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Canadian Satellite Communications Inc. submitted an intervention in support of this application by Norcom to act as a Part III licensee. In interventions opposing the application, The Movie Network and The Family Channel reiterated the concerns expressed in their interventions to Norcom's licence renewal application. In reply to these interventions, Norcom stated that the microwave signal was no longer available to it, hence its request for authority to act as a Part III licensee.
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The Commission is satisfied that the factors that resulted in the denial of Norcom's 1991 application for Part III status no longer apply. Specifically, the Commission notes that the licensee's head end is located within the Grade B official contour of only two licensed television stations, in accordance with the definition of a Part III licensee set out in section 2 of the regulations, and that the licensee is no longer distributing a non-Canadian television signal received via microwave. The Commission has therefore determined that the operation of the undertaking may be regulated pursuant to Parts I and III of the regulations.
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Accordingly, pursuant to Public Notice CRTC 1993-130, the Commission approves the application to amend the licence for this Class 2 cable distribution undertaking by adding a condition of licence authorizing the licensee to act as a Part III licensee under applicable sections of the regulations.
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The Commission also notes that, because the requirements of Public Notice CRTC 1987-261 do not apply to licensees having Part III status, Norcom may distribute WTBS on the undertaking, without linking it with a Canadian pay television service.
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The licence is also amended by deleting certain conditions of licence normally applicable to Class 2 cable licensees. Specifically, the condition of licence pertaining to Distribution and Service Area is deleted and the following conditions of licence, which are applicable to Part III licensees, are substituted therefor:
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2. SERVICE AREA
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The written approval of the Commission is required prior to any changes to the authorized service area.
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3. DISTRIBUTION
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The written approval of the Commission is required prior to the distribution of any service not authorized in the Cable Television Regulations, 1986 or in the last renewal decision or, if there has been no renewal, in the initial licensing decision.
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Further, the Commission amends the licence by deleting the condition of licence regarding Maximum Fees, as the Commission does not regulate the fees charged to subscribers by Part III licensees.
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In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. It encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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Allan J. Darling
Secretary General
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