ARCHIVED -  Decision CRTC 96-263

Decision

Ottawa, 2 July 1996

Decision CRTC 96-263

Emtel inc.

Saint-Anicet, Sainte-Barbe and Saint-Stanislas-de-Kostka, Quebec- 199602545

Acquisition of assets

Following a Public Hearing in the National Capital Region held on 5 June 1996, the Commission approves the application for authority to acquire the assets of the cable distribution undertaking serving the above-noted localities from Regional Cable TV (Central) Inc., and for a broadcasting licence to continue the operation of this undertaking.

Upon surrender of the current licence, the Commission will issue a Class 2 (fewer than 2,000 subscribers) licence to Emtel inc., expiring 31 August 2001, the current expiry date. With the exception of the requirements stipulated in section 23 of the Cable Television Regulations, 1986 (the regulations), the operation of this undertaking will be regulated pursuant to Parts I, III and IV of the regulations. The authority granted herein is subject to the conditions specified in this decision and in the licence to be issued.

The price of the transaction is $603,750. 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. The Commission notes that the new licensee controls Valleyfield Transvision inc., the cable distribution undertaking which serves Valleyfield.

The Commission approves the licensee's request with respect to section 4 of the regulations. Therefore, it is a condition of licence that the licensee be relieved of the requirement to own and operate its own local head end. The licensee is reminded that in accordance with section 4 of the regulations, it must own and operate the amplifiers and the subscriber service drops.

The Commission also approves the licensee's request to add a distant head end at Valleyfield. The licensee has indicated that this will allow it to offer a wider selection of services to the subscribers of the undertaking serving Saint-Anicet, Sainte-Barbe and Saint-Stanislas-de-Kostka. The Commission notes that the majority of signals to be distributed to subscribers of this undertaking will be received, via microwave, from the distant head end located at Valleyfield.

Therefore, in addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations, the licensee is authorized to distribute, at its option, CFTU-TV (IND) Montréal, as well as WCFE-TV (PBS) and WPTZ (NBC) Plattsburgh, New York and WCAX-TV (CBS) and WVNY (ABC) Burlington, Vermont, received via microwave, as part of the basic service.

The licensee is also authorized to distribute, as part of the basic service, the programming service of WETK Burlington, Vermont, a duplicate PBS signal, received via microwave.

In approving the licensee's request, the Commission has taken into consideration the licensee's argument that both PBS services, WCFE-TV and WETK, are received over the air at the Valleyfield undertaking, and that it is less costly to deliver to subscribers in Saint-Anicet, Sainte-Barbe and Saint-Stanislas-de-Kostka the same package of services as is delivered to subscribers in Valleyfield, than to add or remove individual signals.

In view of the foregoing, the Commission considers that an exception to its general policy with respect to the distribution of U.S. network signals is justified in this case.

The Commission further approves the application to change the licensed area by including an area located west of Saint-Anicet, an area located north and east of Sainte-Barbe and an area located north and west of Saint-Stanislas-de-Kostka, representing a total of 105 additional households.

The approval of the application to extend the licensed area of the undertaking 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 licensee 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.

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 licensee, the authority granted 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 period.

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.

This decision is to be appended to the licence.

Allan J. Darling
Secretary General