ARCHIVED -  Decision CRTC 95-266

Decision

Ottawa, 31 May 1995

Decision CRTC 95-266

Vidéotron Ltée

Victoriaville, Quebec - 940801400

Licence renewal

Following a Public Hearing in Montréal beginning on 11 October 1994, the Commission renews the Class 1 licence issued to Vidéotron Ltée (Vidéotron) for the cable distribution undertaking serving Victoriaville, from 1 September 1995 to 31 August 1999.

This period will enable the Commission to monitor more closely the outcome of the licensee's in-depth review of its support for the community channel and to assess the manner in which the licensee meets the objectives set in the Community Channel Policy (Public Notice CRTC 1991-59).

The operation of this undertaking is regulated pursuant to Parts I and II of the Cable Television Regulations, 1986 (the regulations) and 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.

Community Programming

At the time of Vidéotron's last licence renewal (Decision CRTC 90-486), the Commission noted the budget allocations that the licensee proposed to make for community programming, and expected the licensee to increase these allocations during the current licence term. In particular, the Commission stated the expectation that the percentage of revenues devoted to community programming be maintained at a level at least equal to that of the undertaking operated by Vidéotron in Cap-de-la-Madeleine, given the similarities between these two undertakings. Based on the figures provided by the licensee, however, the Commission notes that the budgets of the two undertakings have not been maintained at the same level, and that under the budgets proposed by the licensee in its licence renewal application, the discrepancies would increase rather than decrease in the coming years.

In the Community Channel Policy, the Commission indicated that it would assess funding levels for the community channel based on a benchmark of 5% of the revenues from the base portion of basic monthly fees, capital expenditures excluded. The Commission also stated that most of these expenditures must be direct. However, the Commission notes that, since 1993, direct expenditures have been slightly less than indirect expenditures; moreover, according to figures provided in the renewal application, this pattern will continue in the years to come.

La Télévision communautaire des Bois-Francs Inc., which is the independent volunteer organization in charge of community production at Victoriaville, intervened at the public hearing to voice its concerns regarding the two shortcomings mentioned above. It criticized Vidéotron for the low level of support it provides to the community channel, particularly as regards funding, but also with respect to the training of volunteers and the promotion of the community channel, two areas where they said Vidéotron provided no support at all.

The Commission reiterates the particular importance it places on the development of community programming, and it intends to monitor closely the licensee's efforts in this area during the new licence term. In view of the foregoing, the Commission restates the expectation contained in Decision CRTC 90-486, that Vidéotron increase its funding of the community channel beyond the annual amounts now provided and those proposed in its licence renewal application, to levels equal to those allocated for its undertaking in Cap-de-la-Madeleine.

In addition, the Commission notes that Vidéotron made a commitment to comply with the requirement of the Community Channel Policy that the greatest portion of the expenditures allocated by a licensee to the community channel be direct expenditures. The Commission reminds the licensee that direct expenditures are those that are wholly and exclusively incurred in the acquisition or production of programming. The licensee is further reminded that capital expenditures, depreciation and lease payments are not eligible expenditures for the purposes of calculating this funding.

The Commission also expects Vidéotron to increase its training activities by establishing a professional training program for volunteer workers and specialist employees, thereby to expand the pool of trained volunteers and provide a better operational structure for them. The Commission also requests the licensee to encourage the public to use its community facilities, in fulfilment of its existing access policy.

The Commission notes the licensee's intention to conduct a thorough reassessment of all activities related to the community channel in conjunction with community representatives, including the intervener in this proceeding and other members of the community. The Commission expects the resulting plan of action and proposed initiatives to be submitted to it by 30 June 1995, as proposed by the licensee at the hearing.

Other Conditions and Expectations

The licensee is authorized, by condition of licence, to continue to distribute, at its option, CFCF-TV Montréal, received via microwave, on the basic service. It is also authorized to continue to distribute, at its option, WVNY (ABC) and WCAX-TV (CBS) Burlington, Vermont, and WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, received via microwave, on the basic service.

The licensee is relieved, by condition of licence, of the requirement under paragraph 9(1)(f) of the regulations to distribute on the basic band of the basic service, if channels are available, the programming service of an English-language television station owned and operated by the CBC and distributed via satellite or microwave relay. Instead, the licensee distributes CBMT Montréal, received over-the-air. Pursuant to Decision CRTC 94-883, the licensee is also relieved, by condition of licence, of the requirement under paragraph 9(6)(b) of the regulations to distribute the regional signal of CHEM-TV Trois-Rivières on the basic service. The licensee distributes CHLT-TV Sherbrooke instead.

The licensee is also authorized, by condition of licence, to continue to distribute, at its option, the special programming services known as "Arts et Spectacles" and "Événement"; these services, by definition, must contain no advertising messages. The Commission reminds the licensee that programs on the "Arts et Spectacles" service are generally to draw from categories 7, 8 and 9, as well as category 6 for some sports programs, as defined in Schedule I to the Television Broadcasting Regulations, 1987.

The Commission notes that, since 1990, Vidéotron has been distributing interactive programming on an experimental basis, as a supplement to selected programs distributed on regular channels. The Commission, in correspondence following the 11 October 1994 hearing, asked the licensee to describe the nature of its interactive programming; this was for the purpose of assisting the Commission in developing regulatory requirements for programming distributed in interactive mode.

Based on the information gathered in this process, the licensee is authorized to continue to distribute accessory programming in interactive mode, on an experimental basis, to subscribers equipped with a Videoway terminal. The interactive programming, and the programming on the regular service that it is intended to complement, must be distributed at the same time and have the same theme; any advertising material contained in the accessory programming shall be distributed at the same time as that contained in the programming on the regular service; and the accessory programming shall comply with the same requirements for Canadian content and advertising material as programming on the regular service. The Commission reminds the licensee that services consisting of such accessory programming do not have priority over other programming services. In addition, the Commission expects the licensee to submit an application if it wishes to distribute any interactive programming that does not conform to the type of programming described above.

The Commission further notes the statements by the licensee at the hearing regarding its practices designed to ensure that basic service subscribers are not penalized by the company's proposed substantial investments in new technologies and the implementation of new discretionary multimedia services.

With regard to television violence, Vidéotron stated that it had taken measures to give parents some control over the channels their children can watch using the Videoway terminal. The licensee stated that it would continue working with other industry members to incorporate an electronic device that would allow parents to control program access based on a program classification system. The Commission encourages the licensee to continue its work in this area.

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. In this regard, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Allan J. Darling
Secretary General