ARCHIVED -  Decision CRTC 94-431

Decision

Ottawa, 21 July 1994

Decision CRTC 94-431

La Coopérative de Câblodistribution de l'Est du Québec

Saint-Valérien, Québec - 931154900Saint-Valérien, Québec - 932227200

Competing applications for a new cable distribution undertaking

Following a Public Hearing in the National Capital Region beginning on 25 April 1994, the Commission approves the application by La Coopérative de Câblodistribution de l'Est du Québec (the Coopérative) for a licence to carry on a cable distribution undertaking to serve Saint-Valérien. The operation of this undertaking will be regulated pursuant to Parts I and III of the Cable Television Regulations, 1986 (the regulations).

The Commission will issue a licence to the Coopérative, expiring 31 August 1997, subject to the conditions specified in this decision and in the licence to be issued. This term is consistent with the Commission's practice regarding the licensing of new cable distribution undertakings of this type.

The Commission denies the competing application by Cogenar Inc. (Cogenar).

In Decision CRTC 94-430 issued today, the Commission also approved the application by the Coopérative to serve Saint-Eugène-de-Ladrière. The Commission notes that the Coopérative's membership includes several residents of Saint-Valérien and Saint-Eugène-de-Ladrière who formed their own cable company because they where no longer
prepared to wait for cable service.

In authorizing the Coopérative to serve Saint-Valérien as well, the Commission has taken into account a number of factors, notably the applicant's access to technical expertise and its access to the financial resources required to implement service, the fact that it will serve a greater number of households than that proposed by the competing applicant, that it will deliver a signal package that reflects the preferences of a significant number of residents and that the timetable for implementation is reasonable.

The Commission also notes the support for this proposal expressed by local residents, as demonstrated by the fact that 90 individuals have provided their written commitments to contribute $200 each to the Coopérative's capitalization, and that each has already deposited $20 of this amount. According to the applicant, this represents 55% of the target it has set in this regard. The Commission notes further that approval of this application will permit the applicant to proceed with its plans to serve both Saint-Valérien and Saint-Eugène-de-Ladrière in an economically viable manner.

Although the Commission does not regulate the rates of Part III cable distribution undertakings, it notes that the Coopérative has proposed a monthly subscriber fee that would be fixed at $25.95 for the first ten years of operation.

In light of the foregoing, the Commission is of the view that the application by the Coopérative represents the better proposal under the circumstances and that the public interest will be best served by its approval.

In addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations, the applicant is authorized to distribute CFJP-TV Montréal, received via satellite, as part of the basic service.

The Commission approves the applicant's request with respect to section 23 of the regulations. Accordingly, it is a condition of licence that the applicant 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 does not distribute any U.S. television service or only those which may subsequently be authorized by the Commission. In deciding to approve this request, the Commission took into consideration the applicant's arguments that it is a small undertaking with limited financial resources and that distribution of additional English-language CANCOM services is unwarranted because Francophones will constitute a majority of its future subscribers.

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 Coopérative to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

It is a condition of this licence that construction of this undertaking be completed and that it be in operation within twelve months of the date of this decision or, where the applicant applies to the Commission within this period and satisfies the Commission that it cannot complete implementation before the expiry of this period and that an extension is in the public interest, within such further period of time as is approved in writing by the Commission.

The Commission acknowledges the written intervention filed by Télé-Câble St-Eugène de Ladrière Inc. in support of Cogenar's application.

Allan J. Darling
Secretary General