ARCHIVED -  Decision CRTC 96-8

Decision

Ottawa, 16 January 1996

Decision CRTC 96-8

Access Cable Television Bedford/Sackville Limited

Bedford/Sackville and Mount Uniacke/Lakelands, Nova Scotia- 951546100 - 951547900

Acquisition of assets

Following a Public Hearing in the National Capital Region beginning on 30 October 1995, the Commission approves the applications for authority to acquire the assets of the cable distribution undertakings serving the above-mentioned localities from Shaw Cablesystems (N.S.) Limited, and for broadcasting licences to continue the operation of these undertakings.

The Commission will issue licences to Access Cable Television Bedford/Sackville Limited, expiring 31 August 2002, the current expiry date, upon surrender of the current licences. The operation of the Bedford/Sackville undertaking will be regulated pursuant to Parts I, II and IV of the Cable Television Regulations, 1986 (the regulations), while the operation of the Mount Uniacke/Lakelands undertaking will be regulated pursuant to Parts I, III and IV of the regulations. The authority granted herein is subject to the same conditions as those in effect under the current licences, as well as to any other condition that may be specified in the licences to be issued.

The total purchase price relating to this transaction is $28,352,000. Based on the evidence filed with the applications, 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 has assessed the benefits package identified by the applicant as flowing from this transaction and, in general, is satisfied that it is significant and unequivocal, and that approval of the transaction is in the public interest.

The Commission notes that the proposed tangible benefits include various technical and community programming initiatives, amounting to a total of $2,872,450.

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 considers the applicant's undertaking that the costs associated with the commitments outlined in this decision will not form part of any fee filing under subsections 18(6) and 18(8) of the regulations to be an important element of these applications.

The licensee is authorized, by condition of licence, to continue to distribute the Atlantic Satellite Network (ASN), received via satellite, provided that it is distributed on an unrestricted channel of the basic service of each undertaking.

With respect to the Bedford/Sackville undertaking, in addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations, the applicant is authorized, by condition of licence, to continue to distribute WTOL-TV (CBS) Toledo, Ohio and WXYZ-TV (ABC) Detroit, Michigan, received via satellite from CANCOM, as part of the basic service. The applicant is also authorized to continue to distribute, at its option, the programming services of WLBZ-TV (NBC) Bangor and WMED-TV (PBS) Calais, Maine, received via microwave, as part of the basic service, and, without advertising material, the special programming service Distance University Educational Television (DUET).

In Decision CRTC 95-468 dated 20 July 1995, which renewed the licence for the Bedford/Sackville undertaking, the Commission noted that the licensee, in its reply to an intervention, stated that the Réseau de l'information (RDI) was being added on the discretionary tier. The Commission notes that RDI has now been added.

With respect to the Mount Uniacke/Lakelands undertaking, in addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations, the licensee is authorized to continue to distribute WLBZ-TV (NBC) Bangor and WMED-TV (PBS) Calais, Maine, received via microwave, as part of the basic service, and, without advertising material, the special programming service Distance University Educational Television (DUET).

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. The Commission recognizes the licensee's involvement in various employment equity initiatives including its support of women in broadcasting. The Commission also notes that the licensee has established contacts and made arrangements with groups and associations such as the MicMac Native Friendship Centre, Women's Employment Outreach, the Black Cultural Centre and the Disabled Persons' Commission for the use of their newsletters and bulletin boards to advertise job openings. The Commission encourages the applicant to continue this practice and to develop and implement other plans in support of employment equity.

The Commission acknowledges an intervention received in support of these applications. It has also noted the comments expressed in another intervention as well as the applicant's reply thereto.

Allan J. Darling
Secretary General