ARCHIVED - Decision CRTC 95-476
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Ottawa, 24 July 1995
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Decision CRTC 95-476
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K-Right Communications Limited
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Wellington, Abrams Village and Urbainville, Prince Edward Island - 942042300 - 942043100- 942044900
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Acquisition of assets
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Deletion of local head end and interconnection to the Summerside undertaking
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Change to authorized service area
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Following a Public Hearing in the National Capital Region beginning on 15 May 1995, the Commission approves the application for authority to acquire the assets of the cable distribution undertaking serving the above-noted communities from La Coopérative des Communications Communautaire Limitée (La Coopérative), and for a broadcasting licence to continue the operation of this undertaking.
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The Commission will issue a licence to K-Right Communications Limited (K-Right), expiring 31 August 2002, upon surrender of the current licence. The operation of this undertaking will be regulated pursuant to Parts I and III of the Cable Television Regulations, 1986 (the regulations). The authority granted herein is subject to the same conditions as those in effect under the current licence, as well as to any other condition specified in this decision and in the licence to be issued.
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The price of the transaction is $237,923. However, the Commission notes that the Purchase and Sale Agreement stipulates: "Should the CRTC not issue a license to the Purchaser permitting the construction of the System Extension or should the Purchaser not construct the System Extension before the earlier of the first anniversary of the Closing Date and April 30, 1996, the Purchase Price shall be increased by $63,000."
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Based on the evidence filed with the application, the Commission has no concerns with respect to the availability or the adequacy of the required financing and is satisfied with the benefits flowing from this transaction.
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In view of the approval granted herein, it would appear that no further action is required on the application (941086100) submitted by La Coopérative for the renewal of its licence which was announced in Public Notice CRTC 1995-10 dated 20 January 1995.
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Nevertheless, in Decision CRTC 95-477 dated 1995, the Commission renewed La Coopérative's licence until 31 December 1995, in order to allow sufficient time for completion of the acquisition of assets approved herein.
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Interconnection
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The Commission also approves the application for authority to delete the local head end at Wellington and to interconnect that undertaking, via optical fibre, to the undertaking serving Summerside. The Commission notes that the Summerside undertaking is a Class 2 system and that the Wellington system is regulated pursuant to Parts I and III of the regulations. The Commission also notes that the number of programming services provided to the Wellington undertaking as part of the basic service would increase from 12 to 23.
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The Commission also notes that the applicant will cease distribution of CBMT Montréal. The Commission also notes that the distribution of CHCH-TV Hamilton and CITV-TV Edmonton which are now available to Wellington subscribers as part of the basic service, will only be available on a discretionary basis.
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In addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations, the licensee is authorized to continue to distribute, at its option, CFJP-TV Montréal, received via satellite, as part of the basic service.
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The applicant is also authorized, by condition of licence, to continue to distribute the programming service of the Atlantic Satellite Network (ASN), received via satellite, provided that it is distributed on an unrestricted channel of the basic service.
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Change to authorized service area
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The Commission also approves the application to change the licensed area for the Wellington undertaking by including the communities of St. Chrysostome, Cape Egmont and St. Timothy.
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The Commission notes that the subscribers in the extended area will be offered the same programming services and will be charged fees identical to those in the current licensed service area.
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This approval is subject to the requirement that construction in the extended area be completed and the extended system 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 the construction and commence operations throughout the extended system before the expiry of this period and that an extension of time is in the public interest, within such further periods of time as are approved in writing by the Commission.
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Should construction not be completed within the twelve-month period stipulated in this decision or, should the Commission refuse to approve an extension of time requested by the applicant, the authority granted to change the service area shall lapse and become null and void upon expiry of the period of time granted herein or upon the termination of the last approved extension of time period.
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In Public Notice CRTC 1992-59 the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment. In keeping with the Commission's policy, it encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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The Commission acknowledges the intervention submitted by the Canadian Broadcasting Corporation, expressing its wish that the applicant consider the distribution of the Réseau de l'information (RDI). A similar intervention was submitted by the Société Saint-Thomas-d'Aquin.
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In reply, the applicant stated that this fall it will address the carriage of RDI as well as other services to be added 1 January 1996.
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While the Commission notes that RDI is not a priority programming service, it reiterates the importance of Canadian programming services being given the widest possible distribution. The Commission encourages the applicant to take into consideration the Canadian Cable Television Association (CCTA) Access Commitment with respect to the carriage of licensed Canadian specialty, pay television and pay-per-view services in minority official language markets.
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Allan J. Darling
Secretary General |
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- Date modified: