ARCHIVED -  Decision CRTC 97-684

Decision

Ottawa, 23 December 1997

Decision CRTC 97-684

Laurentien Câble TV inc.

Hull, Buckingham, Quebec and Rockland, Ontario - 199705100 - 199705092
-199705068

Licence amendments - denied

1. Following Public Notice CRTC 1997-112 dated 27 August 1997, the Commission denies the applications by Laurentien Câble TV inc. (Laurentien) to amend the licences for the cable distribution undertakings serving the above-mentioned localities, by adding the following condition of licence:

The licensee may designate one of the U.S. superstations specified in Section B of the list of Part 2 Eligible Satellite Services and distribute the signal of that superstation within a discretionary package that may include one or more Canadian specialty and/or pay television services.

2. In support of its applications, the licensee indicated that it wished to create a second high penetration tier in anticipation of the launch of new specialty services. It indicated that it wished to include in this tier, services for which there exists a high demand such as those of U.S. superstations, in order to attract a sufficient number of subscribers to ensure that the new services approved by the Commission are successful.

3. In Public Notice CRTC 1997-25, dated 11 March 1997, announcing the new regulatory framework for all broadcasting distribution undertakings, the Commission stated its intention to amend its Distribution and Linkage Requirements to permit all distribution undertakings, including cable, to distribute a U.S. superstation within a discretionary package that contains one or more Canadian specialty and/or pay services, provided that this superstation is distributed in a tier that is receivable by subscribers only by using an addressable digital decoder. Such flexibility serves as an added incentive to the cable industry to implement addressable digital technology as quickly as possible, thus providing subscribers with greater choice.

4. The Commission acknowledges the opposing intervention filed by The Specialty and Premium Television Association (SPTV). SPTV stated that the distribution and linkage requirements are essential to the viability of Canadian pay and specialty services. SPTV also argued that the application by Laurentien was contrary to the Commission's policy requiring that a cable distribution undertaking distribute only one superstation with a pay television service.

5. In reply to the intervention, Laurentien noted that the packaging of one superstation with specialty services has been approved by the Commission for licensees of DTH and MDS distribution undertakings and for one cable distribution undertaking (Regina Cablevision Co-operative). Laurentien also noted that the addition of one superstation to a discretionary tier of French-language Canadian specialty services would facilitate the penetration of these services in the Outaouais which is one of Canada's largest bilingual markets.

6. The Commission notes that the approval sought by Laurentien was permitted in the case of Regina Cablevision Co-operative because of the high level of addressability achieved by the undertaking in its authorized service area through the deployment of analog decoders and the licensee's commitment to provide universal addressability.

7. The Commission notes that Laurentien has achieved a very low level of addressability. In fact, Laurentien has confirmed that the deployment of addressable decoders has achieved a penetration level of approximately 5%. The deployment of universal digital addressability for the distribution of broadcasting services to Canadians is one of the key elements underlying the Commission's desire to broaden the selection of services that are currently available and that will soon be made available to subscribers. The Commission is therefore of the view that Laurentien has not provided sufficient reason to justify an exemption to the application of the distribution and linkage requirements with respect to the distribution of U.S. superstations outlined in Public Notice CRTC 1997-25.

This decision is to be appended to the licence.

Laura M. Talbot-Allan
Secretary General

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