ARCHIVED -  Decision CRTC 97-668

Decision

See also: 97-668-1

Ottawa, 10 December 1997

Decision CRTC 97-668

Star Choice Television Network Incorporated

Across Canada - 199705597

Shaw Cablesystems Ltd.
Fort McMurray, Mildred Lake Camp, Fort Hills Camp, Tar Island Camp and Saprae Creek, Alberta - 199705323

Satellite delivery of CFRN-TV and CITV-TV to Fort McMurray cable head end for an interim period - Approved

1. Following Public Notice CRTC 1997-79 dated 18 June 1997, the Commission approves the application by Star Choice Television Network Incorporated (STNI) to amend the broadcasting licence of its national direct-to-home (DTH) satellite distribution undertaking, by adding a condition of licence authorizing the licensee to deliver CFRN-TV Edmonton, via satellite, to the Fort McMurray cable head end of Shaw Cablesystems Ltd. (Shaw), for an interim period ending 31 August 1998.

2. The Commission also approves the application by Shaw to amend the broadcasting licence of the cable distribution undertaking serving Fort McMurray, Mildred Lake Camp, Fort Hills Camp, Tar Island Camp and Saprae Creek, as follows:

by deleting the condition of licence authorizing the distribution of CFRN-TV and CITV-TV Edmonton, via microwave; and

by adding a condition of licence authorizing the licensee to deliver CFRN-TV and CITV-TV Edmonton, via satellite, for an interim period ending 31 August 1998.

The applications

3. In Decision CRTC 96-529 dated 27 August 1996, the Commission licensed STNI to carry on a DTH satellite distribution undertaking and, by condition of licence, authorized STNI to deliver programming services exclusively to individual subscribers. In its current application, STNI has requested an amendment to this condition to allow it to deliver CFRN-TV to Shaw's head end at Fort McMurray for an interim period.

4. In support of its related application, Shaw noted that CFRN-TV and CITV-TV are both currently delivered to the Fort McMurray head end via terrestrial facilities provided by TELUS Cable Holdings Inc. (TELUS). TELUS recently discontinued its microwave relay to Fort McMurray and replaced it with a fibre optic network. Shaw stated that, while the cost of microwave delivery was $0.51 per subscriber per month, the cost of fibre facilities is $4.60 per subscriber per month.

5. Because of this substantial increase in the cost of services delivered by TELUS, Shaw requested authorization to change the method of reception of CFRN-TV and CITV-TV from microwave to satellite delivery. Shaw proposed to receive CITV-TV from Canadian Satellite Communications Inc. (Cancom). Since CFRN-TV is not available from Cancom, Shaw requested authorization to receive CFRN-TV from STNI.

Interventions

6. The Commission received 15 interventions concerning these applications, most of which supported the proposed amendments. In other interventions, ExpressVu Inc. opposed the applications, while Cancom expressed conditional support.

7. ExpressVu Inc., like STNI, is a licensee of a national DTH satellite distribution undertaking. This intervener supported the concept of licensed DTH companies offering headend-in-the-sky (HITS) services to terrestrial broadcasting distribution undertakings, but opposed the proposed distribution of CFRN-TV at Fort McMurray, as received from STNI. In its intervention, ExpressVu Inc. claimed that STNI had proceeded with a change in control before receiving approval from the Commission to do so. ExpressVu Inc. argued that, at the time STNI filed its application, the company was effectively controlled by Shaw Communications Inc., the parent company of Shaw Cablesystems Ltd.

8. ExpressVu Inc. asked the Commission to consider the current applications at the same time as it considered another application by STNI seeking authorization for such a change in control, itself to result from a merger between STNI and Homestar Services Inc. (Homestar), a wholly-owned subsidiary of Shaw Communications Inc. Alternatively, ExpressVu Inc. suggested that the Commission evaluate all of these applications as part of a public hearing at which the Commission could consider the possibility of licensing DTH undertakings to provide programming services to terrestrial broadcasting distribution undertakings.

9. Both STNI and Shaw responded that ExpressVu Inc.'s intervention is based on the false and unsubstantiated assumption that Shaw Communications Inc. exercised effective control of STNI at the time the current applications were filed. STNI stated that the shares of its parent company, Star Choice Communications Inc., which were to be transferred to Shaw Communications Inc., under the separate application referred to above, had been placed in a voting trust controlled by an independent trustee. STNI added that the Commission had approved the trust agreement by Letter of Authority dated 25 April 1997. The Commission is currently considering the above-noted application for a change of control of STNI.

10. Cancom stated that it does not object, in principle, to the proposed distribution of CFRN-TV received from STNI, but that it does oppose authorizing DTH licensees to provide a HITS service to terrestrial distribution undertakings. Cancom, nevertheless, indicated that it could support HITS services in cases where the distribution undertaking has been authorized to receive the identical signals by terrestrial means; and where the Commission has not authorized any other non-DTH licensee to distribute, via satellite, the identical signal, or a signal of the same network affiliation originating from the same time zone, to distribution undertakings.

11. In response, both STNI and Shaw stated that the present applications meet Cancom's conditions. They noted that Cancom currently does not carry CFRN-TV and has declared that it does not intend to offer this signal as part of its service package. STNI stated that it already offers CFRN-TV to individual subscribers and is able to ensure that subscribers at Fort McMurray continue to receive this service.

12. In Public Notice CRTC 1997-92 dated 16 July 1997, the Commission announced that, at a public hearing to be held in February 1998, it would consider Cancom's licence renewal, and invited applications from other parties seeking authority to provide a package of programming services to cable operators, via satellite, whether on a national or regional basis. Shaw stated that approval of the current requests for authorization for an interim period ending 31 August 1998, the expiry date of Cancom's current licence, would ensure that any other applicant seeking a satellite relay distribution licence in response to Public Notice CRTC 1997-92 would be treated equitably with STNI.

13. Neither ExpressVu Inc. nor Cancom objected to the proposed distribution of CITV-TV received, on an interim basis, from Cancom at the Fort McMurray head end. Cancom, however, stated that Shaw must enter into the necessary contractual arrangements with Cancom for the delivery of CITV-TV to Fort McMurray.

14. In response, Shaw stated that it will comply fully with the contractual arrangements with Cancom for carriage of its signals, as set out in the Commission's Lists of Eligible Satellite Services.

The Commission's findings

15. The Commission considers that approval of both applications, for an interim period ending 31 August 1998, will maintain service to Fort McMurray subscribers, while allowing Shaw to make alternative arrangements to receive these signals on a permanent basis. The Commission is satisfied that the proposed distribution of CITV-TV raises no concerns. With regard to the delivery of CFRN-TV to the Fort McMurray head end using the facilities of STNI, the Commission has taken into consideration the fact that the applicants are seeking authorization to deliver one signal to a single cable head end for an interim time period, in order to maintain continuity of service to subscribers. Accordingly, the Commission is satisfied that the approvals granted herein will not have any impact on the February 1998 hearing to consider the granting of licences for satellite relay distribution undertakings.

This decision is to be appended to each licence.

Laura M. Talbot-Allan
Secretary General

This document is available in alternative format upon request.