ARCHIVED -  Public Notice CRTC 1995-131

Public Notice

Ottawa, 3 August 1995

Public Notice CRTC 1995-131

PROVISION OF CABLE SERVICES TO THE ROOMS OF TEMPORARY RESIDENTS OF PREMISES ALSO SERVED BY A CLOSED CIRCUIT VIDEO PROGRAMMING UNDERTAKING

Background

On 6 April 1995, the Commission issued Public Notice CRTC 1995-54, seeking comments on an issue of public concern arising from complaints that the Commission had received from five parties, namely: Hospitality Network Canada Inc. (Hospitality), Chelton Inn, Super 8 Motel - Regina, Landmark Inn and Seven Oaks Motor Inn, against the Regina Cablevision Co-operative (Cable Regina).

Hospitality describes itself as a corporation providing pay-per-view movie services to the guest rooms of hotels and motels in Saskatchewan in accordance with the Exemption Order Respecting Closed Circuit Video Programming Undertakings (Public Notice CRTC 1993-50 of 30 April 1993, as corrected by Public Notice CRTC 1993-50-1 of 14 January 1994). The complainants alleged that Cable Regina threatened to disconnect the cable service of the hotels unless they co-operated in the disconnection of Hospitality's service from the wire by which Cable Regina's programming services are delivered to the guest rooms in the hotels.

Cable Regina did not deny these allegations, but stated that the operation of the Hospitality service "notched out" three cable channels so as to prevent the distribution to hotel guests of the CBC French-language television service, Saskatchewan Legislature/Home Shopping and Vision TV. Hospitality's pay-per-view movie services were distributed in their place. Cable Regina stated that pay-per-view movies have also displaced the CBC English-language television service from a basic band channel to a higher channel without Cable Regina's consent. Cable Regina submitted that these changes to the distribution of its authorized cable service in the hotels put it in jeopardy of operating in contravention of its licence and thereby warranted its actions.

The Commission invited public comment regarding these complaints and the Commission's role with respect to the deletion of cable services provided to temporary residents of hotels and motels, hospital patients and to the inmates of prisons. In particular, the Commission requested comment on the extent to which the deletion of cable programming services that are required or authorized for distribution pursuant to a cable undertaking's licence or the Cable Television Regulations, 1986 (the regulations) is consistent with those regulations.

Ten comments were filed by the deadline date of 9 May 1995. Issues raised in the comments are set out below.

"Notching Out"

There was general agreement amongst the parties submitting comments that an exempt closed circuit video programming undertaking making use of the facilities of a licensed cable distribution undertaking should operate in a manner that does not cause the "notching out" of certain authorized services of the cable undertaking. Three parties, Hospitality, SpectraVision of Canada Inc. (SpectraVision), a company that also provides movies and information services to hotels, and the Canadian Broadcasting Corporation (CBC) proposed that the Commission add a criterion to the Exemption Order Respecting Closed Circuit Video Programming Undertakings to ensure the distribution of certain cable-delivered Canadian services within hotels, motels, hospitals and prisons. However, there were differences as to which authorized cable services should be protected by any such criterion. The criterion proposed by Hospitality would protect the distribution of those priority Canadian services required to be distributed by cable licensees pursuant to section 9 of the regulations, while SpectraVision's proposal would protect the distribution only of local television stations. The CBC, on the other hand, proposed that all licensed Canadian television and specialty programming services distributed as part of the cable basic service, whether or not they are priority services, should be protected from "notching out" by an exempt closed circuit video programming undertaking.

The Canadian Cable Television Association (CCTA) did not comment on the "notching out" issue, but rather focused on the definition of subscriber drop. It argued that the "notching out" that occured in the case of the Saskatchewan hotels took place after termination of the drop and thus did not raise regulatory issues. The CCTA also took the position that, if Cable Regina owned the inside wiring, issues of property use were raised which were properly the subject of the terms of the contracts between Cable Regina and the hotels as subscribers. The CCTA submitted that these contracts could give Cable Regina grounds for termination of service in the circumstances of these complaints.

The Commission has carefully reviewed the complaints and the comments received in response to Public Notice CRTC 1995-54 and considers that it would be appropriate to add a criterion to the Exemption Order Respecting Closed Circuit Video Programming Undertakings that would ensure the continued distribution of an appropriate level of Canadian services in those hotels, motels, hospitals and prisons in which a closed circuit video programming service is distributed on the same facilities as the authorized service of a licensed cable distribution undertaking.

Accordingly, the Commission is issuing today for comment a proposed new criterion for the Exemption Order Respecting Closed Circuit Video Programming Undertakings that would ensure that an exempt closed circuit video programming undertaking does not operate in a manner that prevents a hotel or motel guest, hospital patient or prison inmate from receiving any programming service listed in section 9 or section 22 (as applicable) of the regulations, when that service is provided to the owner or operator of a hotel, motel, hospital or prison as part of the basic service of a licensed cable distribution undertaking (Public Notice CRTC 1995-132). In the Commission's view, this proposed criterion will help to ensure that key priority Canadian services are available to hotel or motel guests, hospital patients and prison inmantes. It is also consistent with the proposal made by Hospitality, and reflects the business realities of the undertakings involved.

Manipulation of Cable Channel Line-ups

A secondary issue raised in some comments relates to the extent to which an exempt closed circuit video programming undertaking should be permitted to rearrange or manipulate the channel line-up of the authorized service provided by a licensed cable distribution undertaking.

Hospitality requested express permission to manipulate cable channel line-ups to allow for delivery of its exempt services. On the other hand, the CBC proposed that licensed Canadian services, when distributed as part of a cable operator's basic service, should not be relocated to other channels.

The Commission notes that its proposed amendment to the Exemption Order Respecting Closed Circuit Video Programming Undertakings would ensure that all priority services are made available to the temporary residents of hotels and motels, hospital patients and inmates of prisons, and considers that it thus need not impose any restrictions with respect to the rearrangement of channel line-ups caused by the operations of exempt closed circuit video programming undertakings.

Disconnection of service

Cable Regina submitted that the "notching out" of services put it in jeopardy of operating in contravention of its licence and thereby warranted its warnings to the hotels that it would disconnect service unless the Hospitality service was removed.

The Commission notes that section 17 of the regulations requires a cable licensee to "provide the basic service to a subscriber as long as the subscriber pays in advance the fee for each month of the basic service". Accordingly, the Commission is of the view that there are no grounds for disconnection of cable service as long as the closed circuit video programming undertaking is operating in compliance with the Exemption Order Respecting Closed Circuit Video Programming Undertakings, including the proposed new criterion set out in Public Notice CRTC 1995-132.

Allan J. Darling
Secretary General