ARCHIVED -  Decision CRTC 98-504

Decision

Ottawa, 24 November 1998

Decision CRTC 98-504

Regina Cablevision Co-operative

Public Hearing held on 8 October 1998
National Capital Region

Purchase of the assets of cable systems

1. The Commission approves the applications for authority to acquire the assets of the cable distribution undertakings serving Estevan and Weyburn from Cogeco Cable Systems Inc., and for broadcasting licences to continue the operation of these undertakings under similar terms and conditions as those in effect under the current licences.

2. Regina Cablevision Co-operative (Regina Cablevision) is the licensee of a Class 1 cable distribution undertaking serving Regina and a Class 3 undertaking serving Regina Beach, Buena Vista and Kinookimaw. The operations to be acquired in Estevan and Weyburn are Class 2 undertakings, and will be regulated pursuant to Parts 1 and 2 of the Broadcasting Distribution Regulations (the regulations).

3. The Commission will issue licences to Regina Cablevision for the undertakings serving Estevan and Weyburn, expiring 31 August 2001, the current expiry date, upon surrender of the current licences. The licences will be subject to the conditions set out in this decision as well as to any other conditions that may be specified in the licences to be issued.

4. In making these applications, Regina Cablevision noted that the Commission's approval would allow for an increase to its subscriber base in Saskatchewan, resulting in economies of scope and scale. The licensee also stated in its applications that, over time, the Estevan and Weyburn subscribers could expect system upgrades, the addition of services to the basic and discretionary tiers, and the opening of a business office in each community to provide enhanced customer service.

5. The purchase price relating to this transaction is $10.7 million, subject to adjustments. 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.

6. 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.

7. 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.

8. The licensee is authorized to originate a video games service as a special programming service, offered on a discretionary basis of each undertaking, subject to the conditions listed in Decision CRTC 95-591 dated 24 August 1995.

9. As part of these applications, Regina Cablevision requested approval of amendments to each of the affected licences, in order that the currently-authorized source for the CBS network be changed from WTOL-TV Toledo to WCCO-TV Minneapolis. These amendments are approved, and the changes are reflected below.

Conditions of licence

10. By condition of licence, the licensee:

· is authorized to distribute, at its option, WTVS (PBS), WDIV (NBC), WXYZ-TV (ABC) Detroit, Michigan, and WCCO-TV (CBS) Minneapolis, Minnesota, as part of the basic service of each undertaking, in addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations. The Commission notes that the licensee receives these signals via satellite;

· is relieved of the requirement of section 17 of the regulations that it distribute the programming service of a French-language television service owned and operated by the Canadian Broadcasting Corporation and distributed to the licensee via satellite or microwave relay. The Commission notes that the licensee distributes instead the extra-regional station CBKFT Regina;

· is authorized 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;

· must, for community programming and any other programming of a service that it originates, 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.

11. 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. In this regard, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Secretary General

This decision is to be appended to each licence.
This document is available in alternative format upon request, and may also be viewed at the following Internet site:www.crtc.gc.ca