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Cogeco Cable Systems Inc.
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Windsor, Chatham, Leamington and Dutton, Ontario - 199712394 - 199712402 - 199712419 - 199712427
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1. Following a Public Hearing in the National Capital Region beginning 16 February 1998, the Commission approves the applications by Cogeco Cable Systems Inc. (Cogeco) for authority to acquire the assets of of the cable distribution undertakings serving the above-mentioned localities, from a newly incorporated wholly-owned subsidiary of Shaw Cablesystems Ltd. (Shaw) that acquires the assets of these undertakings as a result of the approval granted in Decision CRTC 98-165 of today's date. The Commission also approves the applications for broadcasting licences to continue the operation of these undertakings.
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2. The Commission will issue licences to Cogeco, expiring 31 August 2004, upon surrender of the current licences. The operation of the Windsor, Chatham and Leamington undertakings will be regulated pursuant to Parts 1 and 2 of the Broadcasting Distribution Regulations (the regulations) and the operation of the Dutton undertaking, pursuant to Parts 1 and 3 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 those conditions specified in this decision or that may be specified in the licences to be issued.
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3. In Decisions CRTC 98-165 to 98-169 of today's date, the Commission approved applications requesting authority for a change in control and the transfer of assets of cable distribution undertakings between Cogeco and Shaw through subsidiary companies. In total, the Shaw systems to be acquired by Cogeco serve approximately 90,000 subscribers, whereas the Cogeco systems to be acquired by Shaw serve approximately 72,000 subscribers, resulting in a net payment of $50 million to Shaw from Cogeco at the closing of the transaction. This approval also forms part of the series of transactions between Cogeco and Shaw.
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4. The Commission notes that Shaw and Cogeco intend to exchange certain cable distribution undertakings in order to cluster their respective cable properties. As a result, Cogeco will concentrate its subscriber base in Southern Ontario from Oakville to Windsor and the Smiths Falls systems (Decision CRTC 98-167 of today's date) will enhance Cogeco's presence in the Ottawa Valley. Approval of these applications will allow both Shaw and Cogeco to implement improvements in customer service and permit upgrades to their technical infrastructures to facilitate system interconnections and the deployment of new programming services.
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5. The Commission notes that the cable undertakings to be transferred to Cogeco were acquired by Shaw when it purchased CUC Broadcasting Limited in 1995. There remain outstanding tangible benefits to be provided in respect to these systems. Consistent with Public Notice CRTC 1996-69, Cogeco will assume responsibility for the fulfilment of all outstanding benefits relating to capital expenditures, to a maximum of $2 million, in respect of the systems it will acquire from Shaw. Shaw will continue to be responsible for the fulfilment of all other tangible benefit commitments made in respect of these systems as part of its acquisition of CUC Broadcasting Limited.
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6. The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996 (1996 EEA), and therefore files reports concerning employment equity with Human Resources Development Canada. As a result of a consequential amendment to the Broadcasting Act, the Commission no longer has the authority to apply its employment equity policy to any undertaking that is subject to the 1996 EEA.
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Conditions of licence for the Class 1 cable distribution undertaking serving Windsor
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7. It is a condition of licence that the distribution of WXON-TV (IND) Detroit, Michigan be deleted during those time periods when pay television programming is distributed and that, during those time periods, the licensee shall substitute appropriate non-advertising material, that is, material promoting the licensee's authorized services, promoting programs transmitted by Canadian stations, identifying the channel or consisting of public service announcements.
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8. The licensee may receive any authorized signals over the air, or from any licensed or exempted Canadian broadcasting distribution undertaking authorized to provide signals to other broadcasting distribution undertakings.
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9. The licensee is authorized, by condition of licence, to insert, at its option, certain promotional material as a substitute for the "local availabilities" (i.e. non-Canadian advertising material) of non-Canadian satellite services. At least 75% of these local availabilities must be made available for use by licensed Canadian programming services for the promotion of their respective services, for the promotion of the community channel and for unpaid Canadian public service announcements. A maximum of 25% of the local availabilities may be made available for the promotion of discretionary programming services and packages, customer service information, channel realignments, cable FM service and additional cable outlets.
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10. The licensee is relieved, by condition of licence, of the requirement of section 17 of the regulations that it distribute TFO, the French-language educational television programming service operated by TVOntario, on the basic band (channels 2 to 13), so long as the service is distributed as part of the basic service.
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11. It is a condition of licence that, for community programming and any other programming of a service that it originates, the licensee adhere to the guidelines on the depiction of violence in television programming set out in the Canadian Association of Broadcasters' Voluntary Code Regarding Violence in Television Programming, as amended from time to time and approved by the Commission.
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Conditions of licence for the Class 1 cable distribution undertaking serving Chatham
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12. The licensee is authorized to continue to distribute, at its option WJW-TV (FOX) Cleveland, Ohio, as part of the basic service.
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13. The licensee may receive any authorized signals over the air, or from any licensed or exempted Canadian broadcasting distribution undertaking authorized to provide signals to other broadcasting distribution undertakings. The Commission notes that the licensee will receive the signal noted above by microwave.
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14. The licensee is relieved, by condition of licence, of the requirement of section 17 of the regulations that it distribute TFO, the French-language educational television programming service operated by TVOntario, on the basic band (channels 2 to 13), so long as the service is distributed as part of the basic service.
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15. It is a condition of licence that, for community programming and any other programming of a service that it originates, the licensee adhere to the guidelines on the depiction of violence in television programming set out in the Canadian Association of Broadcasters' Voluntary Code Regarding Violence in Television Programming, as amended from time to time and approved by the Commission.
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Conditions of licence for the Class 1 cable distribution undertaking serving Leamington
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16. The licensee is authorized to continue to distribute, at its option, WJW-TV (FOX) Cleveland, Ohio, as part of the basic service.
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17. The licensee may receive any authorized signals over the air, or from any licensed or exempted Canadian broadcasting distribution undertaking authorized to provide signals to other broadcasting distribution undertakings. The Commission notes that the licensee will receive the signal noted above by microwave.
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18. The licensee is relieved, by condition of licence, of the requirement of section 17 of the regulations that it distribute TFO, the French-language educational television programming service operated by TVOntario, on the basic band (channels 2 to 13), so long as the service is distributed as part of the basic service.
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19. It is a condition of licence that, for community programming and any other programming of a service that it originates, the licensee adhere to the guidelines on the depiction of violence in television programming set out in the Canadian Association of Broadcasters' Voluntary Code Regarding Violence in Television Programming, as amended from time to time and approved by the Commission.
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Conditions of licence for the Class 3 cable distribution undertaking serving Dutton
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20. The licensee may receive any authorized signals over the air, or from any licensed or exempted Canadian broadcasting distribution undertaking authorized to provide signals to other broadcasting distribution undertakings.
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21. It is a condition of licence that, for community programming and any other programming of a service that it originates, the licensee adhere to the guidelines on the depiction of violence in television programming set out in the Canadian Association of Broadcasters' Voluntary Code Regarding Violence in Television Programming, as amended from time to time and approved by the Commission.
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This decision is to be appended to each licence.
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Laura M. Talbot-Allan
Secretary General
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This document is available in alternative format upon request.
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