ARCHIVED -  Decision CRTC 95-21

Decision

Ottawa, 19 January 1995

Decision CRTC 95-21

Chamcook Communications Limited

Chamcook, New Brunswick and the Atlantic Provinces - 940788300 - 940994700 - 940995400- 940996200 - 940997000

Applications to deliver U.S. network signals to the Atlantic provinces via satellite - Denied

Following a Public Hearing held in Toronto beginning on 3 October 1994, the Commission denies the applications submitted by Chamcook Communications Limited (Chamcook) to amend the broadcasting licence of the relay distribution undertaking at Chamcook. The applicant is currently authorized to distribute U.S. television signals, via microwave or optical fibre, to affiliated cable television undertakings in the Atlantic region. Chamcook's proposal, hereby denied, was to replace its existing microwave and optical fibre delivery systems by a satellite delivery system for the distribution of U.S. television signals WMED-TV (PBS) Calais and WLBZ-TV (NBC) Bangor.

The Commission also denies the related application filed by Chamcook to amend its licence by adding the reception and distribution via satellite of WVII-TV (ABC) and WABI-TV (CBS) Bangor, Maine and by deleting rebroadcasting station W57AQ Calais, Maine.

Further, the Commission denies the applications filed by Chamcook, on behalf of the licensees of the Atlantic cable distribution undertakings listed in the appendix to this decision, to change their authorized distribution by adding the signals of WVII-TV (ABC), WABI-TV (CBS), WLBZ-TV (NBC) Bangor and WMED-TV (PBS) Calais, Maine, received via satellite from Chamcook. Had these applications been approved, these licensees would have deleted all of the U.S. television network signals that they currently receive via satellite from Canadian Satellite Communications Inc.'s (Cancom) network. As well, these licensees would have dropped some or all of the Canadian conventional television services that they currently receive via satellite from Cancom.

Finally, the Commission denies the applications filed by Chamcook, on behalf of the Atlantic licensees of the Part III cable distribution undertakings listed in the appendix to this decision, to amend their broadcasting licences by relieving the licensees from the requirement that they distribute at least four television programming services delivered to the local head end by a network operator licensed to extend television and radio services to remote and underserved communities, at least one of which must be a Canadian programming service, pursuant to section 23 of the Cable Television Regulations, 1986 (the regulations). The Commission has issued today Public Notice CRTC 1995-7 calling for public comments on its proposal to amend the regulations by specifying that the requirements of section 23 will no longer apply, effective 1 September 1997.

At the hearing, Chamcook explained that approval of these applications would enable itself and its affiliates to meet the expected competition from U.S. direct broadcast satellites as well as from Canadian telephone companies and direct-to-home broadcasting services.

According to Chamcook, its proposed package of services would save Atlantic cable operators approximately $8 million annually because it would charge a lower rate than that charged by Cancom for its services. Specifically, Chamcook stated that it would charge Part III cable distribution undertakings a flat rate of $1.30 per subscriber per month for all four of its U.S. signals. Chamcook also proposed to charge its Class 1 and 2 affiliates in Newfoundland $0.60 per subscriber per month for its four signals. In addition, Chamcook stated that it would provide four free receiver/decoders to each cable system serving less than 500 subscribers, provided that the system is owned by an operator serving less than an aggregate of 3,000 basic subscribers.

All of Newfoundland's cable systems, as well as all of the Part III cable systems in the Atlantic region are under short term contracts with Cancom. The remaining larger systems in the Atlantic provinces are under long term contracts with Cancom. The Commission notes that these ongoing contractural obligations with Cancom will reduce the savings which would have otherwise accrued to Chamcook's affiliates.

Cancom, the only licensee currently authorized to distribute a package of conventional Canadian and U.S. television network services via satellite to Canadian cable operators, submitted an intervention opposing Chamcook's applications. The intervener claimed that the licensing of an alternative provider of satellite television network signals in the Atlantic provinces would have a "very significant" impact on Cancom's operations. Cancom further stated that Atlantic Canada represents approximately 18% of its subscriber base, and revenues of about $11 million annually.

In denying Chamcook's applications, the Commission has taken into consideration the foregoing, as well as the opposing interventions submitted by Canwest Global Communications Corp., the Atlantic Television System, the Canadian Broadcasting Corporation and Newfoundland Broadcasting Company Limited. These interveners expressed concern that, given the proximity of Bangor and Calais to Canadian cable systems operating in the Atlantic provinces, the cable distribution of U.S. signals originating in these communities would result in a significant threat to the advertising revenues available to Canadian broadcasters serving that area.

In response, the applicant stated that, should local broadcasters demonstrate the occurrence of "appreciable siphoning of advertising revenues to Bangor stations" as a result of distribution of any of the proposed Bangor or Calais signals, Chamcook would apply to the Commission to "cease carriage of the offending station and replace it with another signal of that network from another U.S. location that would be an acceptable alternative to Chamcook's subscribers."

The Commission, however, is not satisfied that Chamcook has provided adequate details regarding how it would monitor siphoning of Canadian advertising revenues to the Bangor and Calais stations. Moreover, the Commission considers that approval of carriage of these signals could have a significant negative impact on Canadian broadcasters operating in the Atlantic region.

Chamcook is currently authorized to serve the Atlantic provinces of Canada, whereas Cancom is licensed to serve all regions of the country. The Commission is of the opinion that approval of Chamcook's applications at this time could have a significant negative impact on Cancom's ability to continue to provide conventional Canadian and U.S. television services to remote and underserved communities across the country. Approval might also negatively affect Cancom's contributions to the Canadian broadcasting system. For these reasons, the Commission has denied Chamcook's applications.

In a related decision issued today, (Decision CRTC-20), the Commission renews Cancom's licence for a three-year term. As stated in that decision, the Commission has granted Cancom a three-year licence term to provide for an orderly transition period during which the Commission will assess Cancom's continued role within the Canadian broadcasting system. The Commission encourages cable operators in the Atlantic provinces to take this opportunity to explore with Cancom, in light of Cancom's short-term licence renewal, new arrangements for the distribution of satellite services.

The Commission has taken into consideration the comments contained in the numerous interventions submitted with respect to Chamcook's applications.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

A. Licensee/ Locality/ Exemption Section 23/
Titulaire Localité Article 23

Nova Scotia/(Nouvelle-Écosse)
(940995400)

- Able Cablevision Limited Greenfield *
Caledonia *
East Port Medway *
Liverpool

- Access Cable Television Dartmouth
Limited Digby
Freeport *
Sandy Cove *
Tiverton *
Wesport *

- Baddeck Cable T.V. Baddeck *
Company Limited

- Bass River Cable Services Bass River *
Limited Great Village *
Maitland/Selma *
Masstown *
Middle Stewiacke *
Upper North River *

- Bragg Communications Amherst
Incorporated Antigonish
Bridgewater
Kingston
Margaretsville *
New Germany *
Nictaux *
Port Bickerton *
Sherbrooke *
Springhill
Tidnish

- Bragg, John L. Collingwood *

- Colchester Cable Services Debert
Limited

- Cross Country T.V. Limited Canning *
North & South of Cambridge/
nord et sud de Cambridge

- Eastern Cablevision Limited Parrsboro *
Truro

- Halifax Cablevision Limited Halifax

- K-Right Communications Sydney
Limited Windsor

- Keddy, Donald P. New Ross *
West Dover *

- Kings Kable Limited Kentville
(Access Cable Television)

- North Nova Cable Limited Pugwash *
River John *
Tatamagouche *
Wallace *
Wentworth *
Westchester Station *

- Oxford Cable Services Oxford *
Limited

- Prospect Bay Cable Prospect-Terrence Bay *
Company Limited

- Rush Communications Arichat/Petit de Grat *
Limited Canso *
Eskasoni *
Inverness *
Louisdale *
Mabou *
Milford Station *
Port Hood *
West Arichat *
Whycocomagh *

- Scotia Cablevision Limited River Hebert *

- Seabreeze Cablevision Clark's Harbour *
Limited Lockeport *
Shelburne *
Thomasville *

- Seaside Cable T.V. Albert Bridge *
(1984) Limited Glace Bay
Louisbourg *
Main-à-Dieu *

- Shannon, Joseph P. Annapolis Royal *
Bridgetown *
D'Escousse *
Meteghan *

- Shaw Cablesystems (N.S.) Bedford
Limited Mount Uniacke *
New Glasgow

- Sheet Harbour Cable Sheet Harbour *
Limited

- St. Margaret's Bay Cable St. Margaret's Bay *
Co. Ltd.

- St. Peter's Cablevision St. Peter's *
Limited

- Strait of Canso Cable Port Hawkesbury
T.V. Limited

- Viking Cable T.V. Limited Yarmouth

New Brunswick/(Nouveau-Brunswick)
(940994700)

- Access Cable Television Sussex
Limited

- Bragg Communications Sackville
Incorporated

- Cable 2000 Inc. Bathurst
Dalhousie
Shédiac

- Fundy Cable Ltd./Ltée Albert Mines
Alma *
Back Bay *
Baie-Sainte-Anne *
Barnesville *
Baxters Corner *
Bayfield *
Beaver Brook Station *
Big Cove *
Black's Harbour *
Blackville *
Boiestown *
Bouctouche *
Browns Flat *
Burtts Corner *
Cap Lumière *
Caron Brook *
Centre-Acadie *
Chatham
Chipman *
Clair *
Colpitts Settlement
Davis Road *
Doaktown *
Edmundston
Elgin *
Fredericton
Gagetown *
Grand Falls
Grand Manan Island *
Harvey *
Hatfield Point *
Havelock *
Highway/Rte 505/Ste-Anne *
Hopewell Cape *
Hybernia Heights *
Keatings Corner *
Kingsley *
Kouchibouguac *
Lac Baker *
Leonardville *
Lepreau *
Lower Turtle Creek *
McAdam
Meductic *
Middlesex *
Millville *
Minto *
Moncton
Morrisdale *
Murray Corner *
Musquash Subdivision *
Nasonworth *
Noonan *
Notre-Dame-de-Lourdes *
Patterson/Hoyt *
Pennfield *
Petitcodiac *
Pointe-Sapin *
Richibucto *
Richibucto Village *
River Glade *
Riverside-Albert *
Rogersville *
Saint John
Saint-Joseph-de-Madawaska *
St. Andrews *
St. Antoine *
St. George *
St. Ignace *
St. Stephen
St-André-de-Shédiac *
St-Martins/West Quaco *
Ste-Anne-de-Kent *
Ste-Marie-de-Kent *
Stuart Town *
Taymouth *
Tracy *
Upper Gagetown *
Welsford *
Welshpool *
White Rapids *
Williamsburg *
Willowgrove *
Wilson's Beach *

- Scotia Cablevision Limited Port Elgin *

Prince Edward Island/(Ile-du-Prince-Édouard)
(940996200)

- Island Cablevision Ltd. Alberton *
Borden *
Charlottetown
Crapaud *
Georgetown *
Hunter River *
Miminegash *
Montague *
Morell *
Mount Stewart *
Murray River/Murray Harbour *
North Rustico *
O'Leary *
Souris *
Tignish *

- K-Right Communications Summerside
Limited

Newfoundland/(Terre-Neuve)
(940997000)

- A.J. Gale Limited Baie Verte *
Lewisporte *
Springdale *
Twillingate *

- Andromeda Cablevision Winterton *
Limited

- BMC Cablevision Company Musgravetown *
Limited

- Bonavista Cablevision Bonavista *
Limited Catalina *

- Burgeo Broadcasting System Burgeo *

- Cable Atlantic Inc. Botwood *
Carmanville *
Channel-Port aux Basques
Corner Brook
Deer Lake
Gander
Grand Falls
Isle aux Morts *
Musgrave Harbour *
Pasadena *
St. John's
Wesleyville *
Witless Bay *

- Clearview Cable Limited Bartletts Harbour *
L'Anse-au-Clair *
Plum Point *
Red Bay *
Reefs Harbour *
Sandy Cove *

- Community Cable Limited Conception Bay

- E.G. & E. Entreprises Englee *
Limited Roddickton *

- Garnish Frenchman's Cove Garnish/Frenchman's Cove *
Cablevision Ltd.

- Glovertown Cable T.V. Glovertown *
Limited

- Oar Cablevision Limited Fogo *
Joe Batt's Arm *

- Regional Cable TV Adeytown *
(Atlantic) Inc. Admiral's Beach *
Alderburn *
Anchor Point *
Arnold's Cove *
Aspen Cove *
Badger *
Baine Harbour *
Barachois Brook *
Bay de Verde *
Bay L'Argent *
Bayview *
Beachside *
Belleoram *
Bellevue *
Birchy Bay *
Birchy Bay North *
Blaketown *
Boat Harbour *
Boyd's Cove *
Branch *
Brent's Cove *
Bridgeport *
Brighton *
Brigus *
Brown's Arm *
Burlington *
Burnt Cove *
Calvert *
Campbellton *
Cape Broyle *
Cape Ray *
Centreville *
Chance Cove *
Change Islands *
Charlottetown *
Clarenville *
Clarke's Head *
Codroy *
Colinet *
Comfort Cove *
Conception Harbour *
Conche *
Cook's Harbour *
Cormack *
Cottlesville *
Cottrell's Cove *
Cow Head *
Cox's Cove *
Daniel's Harbour *
Deadman's Bay *
Eastport *
English Harbour *
English Harbour East *
English Harbour West *
Epworth *
Fairbank *
Fermeuse *
Flat Bay *
Fleur de Lys *
Flower's Cove *
Forresters Point *
Forteau *
Fox Harbour *
François *
Frederickton *
Gambo *
Gander Bay *
Gaskiers *
Gaultois *
Glenburnie *
Goose Cove East *
Gooseberry Cove *
Grand Bank *
Grand Le Pierre *
Grates Cove *
Great Harbour Deep *
Green Island Brook *
Green Island Cove *
Green's Harbour *
Greenspond *
Halfway Point *
Hampden *
Hant's Harbour *
Harbour Breton *
Harbour Main *
Harbour Mille *
Harcourt *
Hare Bay *
Harry's Harbour *
Hawkes Bay *
Heart's Delight *
Heart's Desire *
Hickman's Harbour *
Hillview *
Holyrood *
Horwood *
Horwood North *
Howley *
Irishtown *
Island Harbour *
Jackson's Arm *
Jean de Baie *
Jeffrey's *
King's Point *
Kings Cove *
L'Anse-au-Loup *
La Scie *
Ladle Cove *
Lady Cove *
Lamaline *
Laurenceton *
Lawn *
Leading Tickles South *
Little Bay East *
Little Bay Islands *
Little Burnt Bay *
Little Harbour East *
Little St. Lawrence *
Long Harbour *
Lord's Cove *
Lower Island Cove *
Lumsden *
Main Brook *
Mainland *
Mann Point *
Marches Point *
Margaree *
Marystown *
Masons Cove *
Middle Arm *
Millertown *
Milltown *
Ming's Bight *
Mount Carmel *
New Burnt Cove *
New Melbourne *
Newmans Cove *
Nippers Harbour *
Norman's Cove *
Norris Arm *
Norris Point *
North Harbour *
Northern Arm *
O'Donnells *
Old Bonaventure *
Old Perlican *
Pacquet *
Parkers Cove *
Parson's Pond *
Petley *
Phillips Head *
Piccadilly *
Pilley's Island *
Placentia *
Plate Cove East *
Point Leamington *
Point May *
Pollards Point *
Pool's Cove *
Port au Choix *
Port Blandford *
Port de Grave *
Portugal Cove South *
Raleigh *
Red Harbour *
Reidville *
Rencontre East *
Renews *
River of Ponds *
Riverhead *
Robert's Arm *
Rocky Harbour *
Salvage *
Seal Cove (Fortune Bay) *
Seal Cove (White Bay) *
Seldom *
Ship Harbour *
Shoe Cove *
Smooth Cove *
Sop's Arm *
South Branch *
South Brook *
Southern Harbour *
St. Alban's *
St. Anthony *
St. Anthony Bight *
St. Bernard's *
St. Bride's *
St. David's *
St. Joseph's *
St. Lunaire *
St. Pauls *
St. Shotts *
St. Vincent's *
Stag Harbour *
Stanhope *
Steady Brook *
Stephenville
Summerford *
Summerville *
Sunnyside *
Swift Current *
Terrenceville *
Traytown *
Trepassey *
Trinity *
Trinity East *
Triton West *
Trout River *
West Bay *
West Port *
Whitbourne *
Whiteway *
Winterland *
York Harbour *