ARCHIVED -  Decision CRTC 95-648

Decision

Ottawa, 29 August 1995

Decision CRTC 95-648

Câblo Distribution G. Inc.

New Carlisle, Paspébiac, Hope Town, Saint-Godefroi, Shigawake, Port-Daniel, Sainte-Germaine-de-L'Anse-aux-Gascons, Gascons-Ouest and Newport-Ouest, Quebec - 950234500

Acquisition of assets

Following a Public Hearing held in the National Capital Region on 17 July 1995, the Commission approves the application for authority to acquire the assets of the cable distribution undertaking serving the above-mentioned communities from Câblovision Baie-des-Chaleurs Inc., and for a broadcasting licence to continue the operation of this undertaking.

The Commission will issue a licence to Câblo Distribution G. Inc., expiring 31 August 1996, the current expiry date, 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 that may be specified in the licence to be issued.

The purchase price relating to this transaction is $2,800,000. 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.

Because the Commission does not solicit competing applications for authority to transfer effective control of broadcasting undertakings, the onus is on the applicant to demonstrate to the Commission that the application filed is the best possible proposal under the circumstances, taking into account the Commission's general concerns with respect to transactions of this nature. As a first test, the applicant must demonstrate that the proposed transfer will yield significant and unequivocal benefits to the community served by the broadcasting undertaking and to the Canadian broadcasting system as a whole, and that it is in the public interest.

The Commission notes that there are no tangible benefits associated with this transaction. However, the Commission is satisfied with the intangible benefits flowing from it. In this regard, the applicant indicated that acquisition of the undertaking will enable it to offer services that become available on the electronic highway. The applicant also proposed to implement a regional television service linking all of the cable distribution undertakings in the Gaspé region.

The applicant operates eight networks in the Gaspé reaching approximately 11,300 subscribers. The short term benefits of the transaction will result from the economies of scale that will allow any rate increases to subscribers over the next few years to be limited. The applicant also indicated that it might be in a position to provide improved programming over the next year, on the basis of a survey of the region's population that it proposed to carry out.

The Commission reminds the purchaser of its longstanding policy that subscribers should not be required to pay higher fees merely because the ownership or control of a cable television system has changed hands.

The Commission expects the applicant to comply at all times with section 23 of the regulations which stipulates that a Part III licensee who elects to distribute a Part III eligible non-Canadian satellite, or a pay television service or specialty service delivered by satellite "shall, until 1 September 1997, distribute at least four television programming services, at least one of which is a Canadian programming service, delivered to the licensee's local head end by a relay distribution undertaking or by a network operator that or who is licensed to extend television and radio services to remote and underserved communities."

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 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