ARCHIVED -  Decision CRTC 96-630

Decision

Ottawa, 11 September 1996

Decision CRTC 96-630

C.K.O. Cablevision Limited

St-Alphonse, Mavillette, Salmon River, Beaver River and Lake Doucette,Nova Scotia - 952409100

New cable distribution undertaking

Following a Public Hearing in the National Capital Region beginning on 15 April 1996, the Commission approves the application by C.K.O. Cablevision Limited (C.K.O.) for a licence to carry on a cable distribution undertaking to serve the above-noted localities. The operation of this undertaking will be regulated pursuant to Parts I, III and IV of the Cable Television Regulations, 1986 (the Regulations).

In an intervention opposing C.K.O.'s application, Viking Cable TV Limited (Viking), licensee of the cable distribution undertaking serving Yarmouth and surrounding area claimed that it had wanted to serve this area for many years but was precluded from applying to serve an already licensed area, in view of the previous licensing regime. Viking included with its intervention an application to change its licensed area by including Beaver River, Springdale, Lake Doucette, Salmon River, Cape St. Marys, Mavillette and St-Alphonse.

In Decision CRTC 96-631 also published today, the Commission has approved Viking's application, which means that C.K.O. and Viking will be competing for subscribers in essentially the same area.

In its 19 May 1995 report entitled "Competition and Culture on Canada's Information Highway" (Convergence Report), the Commission expressed the view that consumers should have increased choice among distributors of broadcasting and other services.

Subsequently, consistent with the principle of competition endorsed in its Convergence Report, the Commission announced, in Public Notice CRTC 1995-183 dated 26 October 1995, that it would no longer routinely impose conditions of licence restricting licensees of radiocommunication distribution undertakings from soliciting or accepting subscriptions within the authorized service areas of other subscription-based distribution undertakings unless a compelling case was made through the intervention process that the absence of such a condition would have an undue negative impact on the provision of service to the public.

After reviewing the particulars of both applications, including a comparison of the proposed services to be provided to the public by both licensees, as well as the intervener's arguments, the Commission is unable to conclude that approval of the two applications would have an undue negative impact on the provision of service to the public. The Commission is, therefore, satisfied that approval of both applications is in the public interest.

Subject to the requirements of this decision, the Commission will issue a licence to C.K.O. expiring 31 August 1999, which will be subject to the conditions specified in this decision and in the licence to be issued. This term is consistent with the Commission's practice regarding the licensing of new Part III cable distribution undertakings.

The Commission notes that C.K.O. is currently licensee of the radiocommu-nication distribution undertaking (RDU) serving Mavillette. In its application, C.K.O. indicated that it wished to retain its RDU licence in order to continue to serve residents located outside the area to be served by the new cable distribution undertaking.

The applicant is authorized, by condition of licence, 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.

Although the Commission does not regulate the rates of Part III cable distribution undertakings, it notes that the applicant has proposed a monthly subscriber fee of $23.36.

This authority will only be effective and the licence will only be issued at such time as the construction of the undertaking is completed and it is prepared to commence operation. If the construction is not completed 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 construction and commence operation 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, the licence will not be issued. The applicant is required to advise the Commission (before the expiry of the twelve-month period or any extension thereof) in writing, once it has completed construction and is prepared to commence operation.

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Imple-mentation 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 applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

The Commission acknowledges an opposing intervention signed by 76 individuals, and it is satisfied with the applicant's reply thereto.

This decision is to be appended to the licence.

Allan J. Darling
Secretary General