ARCHIVED -  Decision CRTC 94-772

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Decision

Ottawa, 28 September 1994
Decision CRTC 94-772
Décibel Inc.
Nicolet, Quebec - 932422900

Licence amendment

Pursuant to Public Notice CRTC 1994-56 dated 24 May 1994, the Commission approves the application to amend the licence for the cable distribution undertaking serving Nicolet by authorizing the licensee:
- to delete the local head end;
- to interconnect the undertaking with the head end of the Vidéotron Ltée (Vidéotron) cable undertaking serving Victoriaville and to add the three distant head ends at Pie IX/Rosemont, Villa Maria and Mont Saint-Grégoire, Quebec which are part of the Trans-Québec network; and
- to distribute, on the basic service, the following programming services which will be received via optical fibre from Victoriaville: CFTU-TV (IND) Montréal, the Videoway Channel, WVNY (ABC) and WCAX-TV (CBS) Burlington, Vermont, as well as WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York. The Commission is satisfied that the distribution of CFTU-TV is consistent with the guidelines on the cable distribution of distant Canadian television signals first set out in Public Notice CRTC 1985-61 and reiterated in Public Notice CRTC 1993-74.
The Commission approves, by condition of licence, the licensee's request to be relieved from the requirement of Section 4 of the Cable Television Regulations, 1986 (the regulations) that it own and operate its local head end.
The application outlines per subscriber costs of $2.48 associated with the interconnection, $0.48 of which is directly related to the provision of the optical fibre link; the remaining $2.00 is the amount to be paid to Vidéotron for the services received via optical fibre. A further cost of $0.16 related to the distribution of the programming services of YTV Canada, Inc. and MusiquePlus is added to this amount.
Having reviewed the financial projections provided by the licensee, the Commission considers the amount of $0.48 noted above to be related to capital expenditures and thus cannot be used for the purpose of comparing current costs to the costs associated with the interconnection and the replacement of signals; the projected costs for this purpose would therefore total $2.16. In view of the fact that the licensee is currently paying Canadian Satellite Communications Inc. (CANCOM) $2.76 for the delivery of signals, the interconnection with Vidéotron will result in a savings of $0.60 per subscriber for the licensee. The Commission is of the view that subscribers should benefit from these cost savings and strongly expects the licensee to ensure that the 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 interconnection.
The Commission acknowledges the intervention submitted by CANCOM in opposition to this application as well as the licensee's reply thereto.
Allan J. Darling
Secretary General
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