ARCHIVED -  Decision CRTC 96-704

Decision

Ottawa, 24 October 1996

Decision CRTC 96-704

9033-4111 Québec inc.

Grand-Remous, Bois-Franc and Montcerf, Quebec - 199606927

Acquisition of assets and licence amendment

Following a Public Hearing in the National Capital Region held on 26 August 1996, the Commission approves the application for authority to acquire the assets of the cable distribution undertaking serving Grand-Remous from 2849-0514 Québec inc., and for a broadcasting licence to continue the operation of this undertaking.

The price of the transaction is $176,500. 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. Moreover, the Commission is of the view that approval of this application is in the public interest.

The Commission notes that the applicant has also proposed to include the municipalities of Bois-Franc and Montcerf which are located southwest of Grand-Remous, for a total of 123 and 72 additional households respectively, and to add a separate head end in the municipality of Bois-Franc in order to provide service to these areas.

However, in accordance with its licensing policy, the Commission would normally issue a licence in respect of each head end established. Accordingly, the Commission approves the licensee's application to serve the communities of Bois-Franc and Montcerf but will issue a separate licence for the Bois-Franc/Montcerf undertaking.

Therefore, subject to the requirements of this decision and upon surrender of the current licence issued to 2849-0514 Québec inc., the Commission will issue to 9033-4411 Québec inc., a licence for the undertaking serving Grand-Remous and a licence for an undertaking to serve Bois-Franc/Montcerf. These licences will expire 31 August 1998, the expiry date of the current licence issued with respect to the undertaking serving Grand-Remous.

The operation of these undertakings will be regulated pursuant to Parts I, III and IV of the Cable Television Regulations, 1986, and the licences will be subject to the conditions specified in the licences to be issued. The licence in respect of the Grand-Remous undertaking will be subject to the same conditions as those in effect under the current licence.

The authority for Bois-Franc/Montcerf 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.

The Commission further approves the application to change the licensed area for the Grand-Remous undertaking as follows:

-  by adding an area south of Grand-Remous, along Highway 105 (Phase 1), including Chute-du-Grand-Remous, and an area southeast of Grand-Remous, along Highway 117, representing a total of 24 and 20 additional households respectively;

-  by adding an area south of Grand-Remous, including an area along Highway 105 (Phase 2), representing a total of 37 additional households.

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 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.

The Commission reminds the applicant of its longstanding policy that subscribers should not be required to pay higher fees merely because the ownership or control of a cable system has changed hands. Although the Commission does not regulate the rates of Part III cable distribution undertakings, it notes that the applicant has proposed for all areas the current monthly subscriber fee of $19.96. The Commission also notes that all subscribers will be offered the same programming services.

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 each licence.

Allan J. Darling
Secretary General