ARCHIVED -  Decision CRTC 97-41

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Decision

Ottawa, 31 January 1997
Decision CRTC 97-41
Câblo Distribution G. inc.
Chandler, Pabos, Pabos Mills, Newport and surrounding areas, Quebec- 199609500
Acquisition of assets and licence amendments
Following a Public Hearing in the National Capital Region held on 15 January 1997, the Commission approves the application for authority to acquire the assets of the cable distribution undertaking serving the above-noted localities from Sirois Câble inc., and for a broadcasting licence to continue the operation of this undertaking.
Upon surrender of the current licence, the Commission will issue a licence to Câblo Distribution G. inc., expiring 31 August 2003, the current expiry date. The operation of this undertaking will be regulated pursuant to Parts I, III and IV of the Cable Television Regulations, 1986 (the regulations). The authority granted herein is subject to the same conditions as those in effect under the current licence, as well as to any other condition specified in this decision and in the licence to be issued.
The price of the transaction is $2,400,000. 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.
Interconnection and application for licence amendments
The Commission approves the application for authority to delete the local head end at Chandler and to interconnect the undertaking to the cable distribution undertaking serving Gaspé and surrounding area, also owned by Câblo Distribution G. inc.
In cases of interconnection, it has been the Commission's general practice to expect the licensee to reduce monthly fees for the basic service by an amount equivalent to the direct cost savings related to the interconnection.
In this regard, the Commission notes that the licensee has proposed a monthly subscriber fee of $23.96 for Chandler. After analysis of the information provided by the licensee, the Commission is satisfied that no fee reduction is expected as a result of the interconnection approved herein.
In view of the approval granted herein, the Commission also approves the licensee's application to distribute CFTU-TV (IND) and CFCF-TV (CTV) Montréal, as well as WCFE-TV (PBS) Plattsburgh, New York, and WVNY (ABC) Burlington, Vermont, received via optical fibre or microwave, as part of the basic service.
The Commission further approves the licensee's application to distribute WUTV (FOX) Buffalo, WPTZ (NBC) Plattsburgh, New York, and WCAX-TV (CBS) Burlington, Vermont, received via optical fibre or microwave, on a discretionary tier. This approval is consistent with the amendment to the Commission's policy governing the cable carriage of U.S. network signals announced in Public Notice CRTC 1994-107 dated 29 August 1994.
As part of the current application, the licensee had requested authority to distribute U.S. radio services, received via satellite, as part of the basic service.
The Commission notes that in reply to interventions by the Canadian Independent Record Production Association (CIRPA) and the Association québécoise de l'industrie du disque, du spectacle et de la vidéo (ADISQ), which opposed the distribution of the signals of non-Canadian radio stations which are not received over the air at an undertaking's local head end, the licensee stated that it will not be distributing these signals.
The Commission also acknowledges an opposing intervention from CANAL (CFTU-TV) with respect to the proposed distribution of its signal. The Commission is satisfied with the licensee's reply to this intervention.
The Commission approves the licensee's request with respect to section 22 of the regulations. Accordingly, the licensee is relieved, by condition of licence, of the requirement of paragraphs 22(1)(a) and (b) of the regulations that it distribute the priority local services of CBGAT-15 (SRC), CHAU-TV-4 (TVA), CBVB-TV (CBC) Chandler and CIVK-TV-1 (STQ) Gascons, as well as the priority regional services of CBGAT-20 (SRC), CBVP-TV (CBC) and CHAU-TV-5 (TVA) Percé. The licensee will distribute instead CBGAT-TV 17 (SRC) and CHAU-TV-6 (TVA) Gaspé, received over the air, as well as CBMT-TV (CBC) and CIVM-TV (STQ) Montréal, received via satellite.
Consistent with Decision CRTC 96-231, the licensee is relieved, by condition of licence, of the requirement that it distribute at least four television programming services as provided for in section 23 of the regulations, so long as it distributes only those U.S. television services listed in the current application or as may be authorized by the Commission.
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

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