ARCHIVED -  Decision CRTC 98-55

Decision CRTC 98-55

Ottawa, 20 February 1998

Applications by Teleglobe Inc. and others, on behalf of a company to be incorporated, for a licence to carry on a new MDS radiocommunication distribution undertaking to be known as "LOOK TÉLÉ" - Approved Competing applications - Denied

Following a public hearing in the National Capital Region beginning on 15 October 1997, the Commission approves the applications by Teleglobe Inc. through its division Téléglobe Entreprises Média (Teleglobe), Groupe Transcontinentale G.T.C. ltée, Société Financière Bourgie inc., Covington Wireless Communications (Ontario) Limited, Québec-Téléphone inc. (Québec-Téléphone), 9046-7200 Québec inc., Groupe Laurem inc. and Les Entreprises Microtec inc., on behalf of a company to be incorporated (hereinafter referred to as LOOK TÉLÉ or the applicant) for a licence to carry on a radiocommunication distribution undertaking to transmit broadcasting services in encrypted mode by means of a digital multipoint distribution system (MDS) to serve the areas of Quebec and Ontario listed above, following the applicant’s name. The approved effective radiated power (ERP) of each transmitter is listed in Appendix I to this decision. The Commission will issue a licence expiring 31  August 2003, subject to the conditions specified in Appendix II to this decision and in the licence to be issued.

The Commission denies the three other above-noted applications for the reasons set out below.

Background

In Public Notices CRTC 1997-44, 1997-45 and 1997-46 dated 25 April 1997, the Commission announced that it had received applications for broadcasting licences to carry on new MDS radiocommunication distribution undertakings to serve the areas of Montréal, the city of Québec, eastern Ontario and western Quebec, including the National Capital Region, as well as the areas surrounding these markets. Following its usual procedure in such cases, the Commission called for applications from other parties for licences to provide MDS service in these areas.

Among the three applicants proposing to serve the Montréal and Québec areas, one application included the Lower St. Lawrence and Saguenay/Lac St-Jean regions and the areas of Sherbrooke and Trois-Rivières. In a letter dated 25 July 1997, the Commission asked the two other applicants if they wished to include any of these areas in their proposals. Following that letter, LOOK TÉLÉ informed the Commission that it wished to include Saguenay/Lac St-Jean and surrounding areas in its proposal.

Subsequently, in Notice of Public Hearing CRTC 1997-8 dated 8 August 1997, announcing that the hearing would begin 15 October, the Commission informed the applicants that they could amend or add to their applications in the light of Decision CRTC 97-370 released two days before. In that decision, the Commission approved the broadcasting licence application filed by a company to be incorporated and to be controlled by Teleglobe (LOOK TV) to operate a new MDS undertaking serving several parts of southern Ontario.

The issue of determining the areas to be served was discussed at the public hearing with the applicants, notably DigiTVcom Inc. (DigiTVcom) and Selectview Cable Services Inc. (Selectview). The DigiTVcom applications were generally limited to the urban sections of the areas of Montréal, Québec and the National Capital Region. Responding to the Commission’s letter of 25 July 1997, DigiTVcom indicated it did not wish to amend its applications, adding that [TRANSLATION] "it would be unfair if the other applicants were penalized by one applicant’s failure to adhere to the service areas initially specified in the CRTC notices". Referring to this matter at the hearing, DigiTVcom indicated that it considered that it did not have enough time to amend its applications, in view of the revisions to its business plan that would be necessary if it modified its proposed service areas. DigiTVcom also stated that, if it were granted a licence, it would instead ensure that its technical facilities were functioning well in the large urban centres before considering serving the surrounding areas.

The Selectview application proposed to serve the National Capital Region and the areas of Kingston and Peterborough. In response to the invitation to applicants to amend their applications in the light of Decision CRTC 97-370, Selectview stated that it did not wish to do so. The company also indicated that, in its opinion, errors of procedure were made in connection with the release of Public Notices CRTC 1997-44 and 1997-45. At the public hearing, however, Selectview acknowledged that it could not be licensed to serve the Kingston and Peterborough areas following Decision CRTC 97-370, and stated that it would be prepared to accept a licence for the National Capital Region alone.

Having considered the foregoing, the Commission is of the view that the applications filed by AirComm Inc. (AirComm), DigiTVcom and LOOK TÉLÉ and the Selectview application for the National Capital Region fall within the scope of its calls for applications as modified by its letter of 25 July 1997. With regard to the procedure followed in this proceeding, the Commission considers that all applicants had sufficient opportunity to file amendments to their applications if they had wished to do so.

Assessment of the applications

In its evaluation of these applications, the Commission has taken into consideration, among other factors, the range of signals provided in each service offering and the proposed subscriber fees, the breadth of the coverage that would be provided by the respective undertakings, the viability of each applicant's business and marketing plans, and the subscriber penetration levels projected by each, including the projected ratios of subscribers to be drawn from cabled versus non-cabled markets.

As stated in Public Notice CRTC 1995-183 dated 26 October 1995, and reiterated in Decision CRTC 95-910 dated 20 December 1995 which licensed Canada's first regional MDS undertaking in Manitoba, the Commission considers that an important role of MDS undertakings should be to provide competition to established cable undertakings. Accordingly, in reaching its decision, the Commission gave particular consideration to which applicant would be most able to compete with cable undertakings, as well as with new direct-to-home (DTH) licensees operating in the same market.

After a careful assessment of the four applications, the Commission determined that the AirComm and Selectview proposals were not sufficiently developed to merit licensing.

According to the most recent change in the proposed shareholder structure of AirComm on the day before the public hearing opened, 70% of AirComm shares are held by Fernand Gilbert ltée, a company specializing in road construction, excavation and transportation, with the balance held in equal parts by two minority shareholders. This third change since the original applications were filed was necessitated by the withdrawal of the only proposed shareholder who had hands-on experience in the broadcasting distribution industry. Further, according to statements made at the hearing, other changes in ownership might yet occur following discussions with potential investors. The Commission considers that this ownership instability raises some doubt as to the credibility of AirComm’s business plan. The Commission is also concerned about AirComm’s ability to carry on the proposed MDS undertaking in a highly competitive market, and the fact that financing for the company’s operations in rural areas is dependent on the success of its implementation in the more heavily populated areas. Discussions at the hearing also gave rise to concerns regarding the soundness of AirComm’s business plan in terms of its ability to secure additional financing if required, its plans for the rental and financing of decoders, and the financial impact if the undertaking were to be implemented within a much shorter timeframe than the 40 months proposed.

Selectview’s shares are 80% held by Canadians and 20% by a non-Canadian shareholder, Hong Ho Precision Textile Co. Ltd. Selectview projects total monthly revenues per subscriber exceeding those predicted by the other applicants as well as those currently realized by the cable television industry. These projections may be difficult to achieve in a competitive market place. Selectview also planned to target, on a priority basis, uncabled rural areas and non-subscribing households, even in cabled areas. However, it provided little evidence of its ability to attract those subscribers. If Selectview’s projections failed to materialize, the Commission considers that the proposed undertaking would have been in financial difficulty. The Commission also notes that the proposed National Capital Region and western Quebec/eastern Ontario service area is smaller than those proposed in the competing applications.

For these reasons, the Commission is not satisfied that either AirComm or Selectview demonstrated the ability to meet the Commission’s criterion that applicants not only serve non-cabled households, but also be able to compete on a sustainable basis in the same market with cable undertakings and DTH undertakings. The Commission, therefore, has denied their applications.

Rationale for approval

The successful applicant, LOOK TÉLÉ, is effectively controlled by Teleglobe, which holds 50% of the voting shares of the proposed licensee and a majority on the board of directors. Groupe Transcontinental G.T.C. ltée, Société Financière Bourgie inc., Covington Wireless Communications (Ontario) Limited, and Québec-Téléphone each hold 9.1% of the shares, and the remaining 13.5% are divided equally among three other shareholders.

DigiTVcom is 60% owned by Câble Satisfaction International inc. (CSII) and 40% by the Fonds de solidarité des travailleurs du Québec (FTQ). CSII is controlled by Guy Laflamme, who has extensive experience in the cable industry in Quebec. CSII is active internationally, being involved in the operation of cable undertakings in Portugal and Guadeloupe.

In licensing an MDS undertaking, the Commission considers that the proposed service should provide coverage to a large area, including uncabled communities, and should be competitive with cable and DTH undertakings in the markets served. For the reasons set out below, the Commission is satisfied that LOOK TÉLÉ has demonstrated a strong commitment to provide coverage to the Quebec and Ontario markets identified in the calls and to compete aggressively with cable and DTH undertakings. Moreover, the Commission is satisfied that LOOK TÉLÉ has the financial resources to fulfil its commitment.

Although DigiTVcom’s proposal would have been licenseable, the LOOK TÉLÉ submission was superior, particularly with regards to coverage and marketing. As mentioned earlier, DigiTVcom’s proposal was limited to the large population centres of Montréal, Québec and the National Capital Region. The applications as filed indicated that DigiTVcom was not prepared to consider serving the surrounding rural areas nor the Trois-Rivières Sherbrooke and Saguenay/Lac St-Jean regions when implementing its undertaking in the urban areas proposed. Although DigiTVcom stated at the hearing that it was prepared to report to the Commission on this matter after one year, the applicant provided no specific target date and no firm commitment to extend its MDS service to the surrounding areas described above.

LOOK TÉLÉ, on the other hand, indicated that its goal is to deploy its MDS service rapidly and provide broad coverage. The applicant stated that the infrastructure it will put in place will enable it to serve the areas of Montréal, Québec, Sherbrooke, Trois-Rivières, Drummondville, Victoriaville, Saguenay/Lac St-Jean, and the National Capital Region and surrounding areas of western Quebec and eastern Ontario. According to the applicant, LOOK TÉLÉ will be capable of serving 90% of the households in the province of Quebec, virtually all households in eastern Ontario, including over 240,000 households which currently have no access to cable.

In addition, the Commission placed significant weight on LOOK TÉLÉ’s business plan and marketing strategy designed to implement the new service. The company intends to construct a high-quality, high capacity MDS system with backup facilities to rapidly and completely cover the large area proposed. To do this, LOOK TÉLÉ will invest $38.5 million over seven years in technical facilities and $3.25 million in start-up costs. LOOK TÉLÉ also plans to launch an aggressive marketing campaign in both urban and rural areas. It will spend $28 million over seven years to promote its MDS service. LOOK TÉLÉ pointed to its partners’ extensive experience around the globe in the deployment of large wireless networks.

As discussed at the public hearing, the Commission examined the possibility of splitting the proposed service areas between the applicants. One option the Commission considered was to license DigiTVcom in the urban areas proposed in Montréal and Québec. LOOK TÉLÉ could have been licensed in the National Capital Region, with the assumption that it could enjoy economies of scale by sharing resources with LOOK TV in Ontario.

The Commission considers, however, that that scenario would have been detrimental to the Quebec market because the best applicant would have been excluded from it and MDS service would have been restricted to the urban markets of Montréal and Québec, which are already well served by cable. In addition, being awarded more limited markets than they had proposed in their applications, both LOOK TÉLÉ and DigiTVcom would have been deprived of their anticipated economies of scale, which would have weakened their competitive position in their respective markets. Furthermore, in order for DigiTVcom to offer a service equivalent to the coverage areas proposed by LOOK TÉLÉ (which it had not proposed to do), DigiTVcom would have had to undertake a complete revision of its business plan and financial projections. DigiTVcom would have had to deploy about 20 additional distribution sites at an added cost of some $15 million. The Commission further notes that the amount budgeted by DigiTVcom to market its MDS service was only half as much as the amount allocated by LOOK TÉLÉ. After considering all the relevant factors, the Commission has dismissed the divided-area scenario, as it considered the disadvantages to outweigh the potential benefits.

The Commission has also inquired into some competition issues raised by approval of the LOOK TÉLÉ applications. As a result of this approval, two separate companies controlled by Teleglobe will hold licences for regional MDS undertakings serving the two largest markets in Canada, namely, Ontario and Quebec. These two markets together have over 50% of all potential MDS subscribers in Canada. In addition, some interveners expressed concerns regarding the involvement, either direct or indirect, of telephone companies in LOOK TÉLÉ.

Competitive advantages can be derived from potential synergies between the two operations and the economies of scale they generate. At the public hearing, LOOK TÉLÉ stated that it wanted to [TRANSLATION] "maximize technological and operational synergies between Quebec and Ontario". It listed the benefits of having an integrated technological platform in the two provinces and developing new Canadian expertise in MDS that could be utilized in other parts of the country and eventually exported around the world. Economies of scale are also possible in the areas of management, billing and program packaging.

In examining the concerns relating to competition, the Commission considered the fact that MDS technology will not be in a dominant position in the broadcasting distribution market. According to the projections provided in its applications, LOOK TÉLÉ forecasts that it will hold a 9.6% market share after seven years. The Commission also considers that this approval will allow a critical mass to be put in place in order to more effectively meet the challenges of working with a new technology and successfully implementing it in a market that will become increasingly competitive. Furthermore, the Commission notes that LOOK TÉLÉ and LOOK TV are different companies with different shareholders, even though Teleglobe is the majority shareholder of both.

One aspect of the LOOK TÉLÉ applications that received particular attention at the hearing is the fact that BCE Inc. (BCE) holds a 24.3% voting interest in the applicant’s controlling shareholder, Teleglobe, and that Québec-Téléphone will hold 9.1% of the LOOK TÉLÉ shares. BCE owns Bell Canada, holds a 58.5% interest in Telesat Canada Inc., and controls the DTH undertaking ExpressVu. In addition, BCE is conducting cable distribution trials in Repentigny, Quebec and London, Ontario (Broadcasting Decision CRTC 97-192 and Telecom Decision CRTC 97-11 dated 8 May 1997). For its part, Québec-Téléphone serves all of eastern Quebec and is the second-largest telephone company in that province. It also holds an indirect interest in Câble-Axion Québec inc., which was recently authorized to operate several new cable distribution undertakings in eastern Quebec (Decision CRTC 97-635 dated 14 November 1997). In their interventions, the Canadian Cable Television Association, the Association des câblodistributeurs du Québec inc. and Le Groupe Vidéotron ltée expressed concern regarding the possibility that a telephone company might acquire control of an MDS undertaking soon after its licensing.

Responding to these interventions, LOOK TÉLÉ indicated that Teleglobe shares are held by several parties and that neither BCE nor any other shareholder controls a majority of voting rights for the purposes of electing members to Teleglobe’s board of directors. Also, Teleglobe clearly indicated at the hearing that it intends to maintain at least a 40% interest in LOOK TÉLÉ and [TRANSLATION] "have a majority on the board of directors" so it can exercise the role of controlling shareholder.

In considering the licensing of LOOK TÉLÉ in this competitive process, the Commission has given particular consideration to the applicant's present ownership structure, specifically the fact that BCE and Québec-Téléphone have no more than an indirect or direct minority interest in the proposed licensee. The Commission has concluded that the present ownership does not raise concerns that would warrant denial of LOOK TÉLÉ's applications. It should be noted in this regard that, when the Commission awards a licence following a competitive process, it expects the licensee to implement and operate its undertaking as proposed.

Pursuant to section 4 of the Broadcasting Distribution Regulations (the regulations) (which will apply to LOOK TÉLÉ), parties must apply to obtain the Commission's approval of any agreement or transaction that directly or indirectly effects a change in the effective control of the licensee, or results in a shareholder in the licensee, or in its controlling shareholder, increasing its shares to more than 30% of the voting interests. Given the broad participation of companies related to BCE or Québec-Téléphone in various competitive distribution undertakings, the Commission will not be favourably disposed towards such an application by BCE or Québec-Téléphone, absent a compelling case to the contrary. Upon receipt of such an application, the Commission would examine the impact of the proposed changes upon the competitive environment.

Accordingly, for all the reasons noted above, the Commission has approved the applications by LOOK TÉLÉ and has denied the applications by DigiTVcom.

LOOK TÉLÉ's service

The MDS undertaking will consist of 28 transmitters located across the region with a master head end situated in Montréal and seven secondary head ends. The applicant will offer its subscribers a mix of local, regional, extra-regional and distant television services, as well as a range of pay, specialty and other services.

The Commission notes that LOOK TÉLÉ's rates will be competitive with those offered by cable. Its digital service will provide an alternative to cable in terms of quality and choice of service. Furthermore, LOOK TÉLÉ will offer local programming services which should make it competitive with DTH undertakings.

The Commission will issue a Class 1 licence to LOOK TÉLÉ. The operation of the undertaking will be regulated pursuant to Parts 1 and 2 of the regulations, with the exception of the sections specified in the relevant condition of licence set out in Appendix II to this decision. The application of section 22 of the regulations to the new MDS undertaking will be suspended pursuant to the provisions of the condition of licence set out in Appendix II to this decision.

This authority will only be effective and the licence shall only be issued at such time as the Commission receives documentation establishing that an eligible Canadian corporation has been incorporated in accordance with the applications in all material respects and that it may be issued a licence.

Authorized programming services and distribution requirements

The Commission authorizes LOOK TÉLÉ to distribute the broadcasting services listed for each transmitter site in the appendices to the applicant’s letter dated 15 October 1997, with the exception of the requirements stipulated in the conditions of licence. LOOK TÉLÉ is also authorized to offer its subscribers pay-per-view programming services without requiring them to subscribe to the basic service.

LOOK TÉLÉ indicated that it intends to restrict its marketing area in the Québec market by excluding the territory east of Montmagny, since that area will not in fact be served by the proposed MDS undertaking. It explained that, for technical and financial reasons, it would not have been able to distribute, in the Québec market, CKRT-TV and CIMT-TV Rivière-du-Loup, CBSPT-TV Saint-Pamphile, and CKRS-TV Jonquière. The Commission notes that, following the proposed reduction, distribution of the above-noted signals is no longer required.

The Commission notes that another applicant proposed to serve part of the Lower St. Lawrence region. Since one of the criteria of this approval is that MDS service be provided to the largest possible area, the Commission expects LOOK TÉLÉ to file an application before the end of this licence term to extend its service to the Lower St. Lawrence region.

LOOK TÉLÉ proposed to distribute several distant Canadian television stations on the basic service in each of its markets. However, the applicant did not fully comply with the relevant requirements set out in Public Notice CRTC 1993-74, issued following the 1993 structural public hearing, particularly the requirements that each originating station must agree not to accept local advertising from the distant market and must continue to honour its commitments with respect to local programming. Accordingly, the Commission authorizes LOOK TÉLÉ to distribute the signals of the distant Canadian television stations listed in Appendix III to this decision on condition that it provide proof to the Commission that each of those stations will comply with the above-noted requirements of Public Notice CRTC 1993-74. A condition of licence to this effect is set out in Appendix II to this decision. These stations may be distributed on the basic service, with the exception of the ethnic station CJNT-TV (IND) Montréal, whose signal must be distributed on a discretionary tier as proposed in the applications. The Commission notes that, as requested in the intervention by Radio Saguenay ltée, LOOK TÉLÉ will distribute the local signal of CKRS-TV (SRC) Jonquière in the Saguenay/Lac St-Jean region instead of the distant station CBFT (SRC) Montréal. The Commission also notes that the applicant will distribute the priority signal of CKMI-TV (Global) Québec in the Trois-Rivières market.

As licensed, LOOK TÉLÉ will distribute 90 video services in all its markets except in the western Quebec and eastern Ontario markets, where it will provide 105 video services. LOOK TÉLÉ indicated that it intends to upgrade the system’s channel capacity later to accommodate 150 video services. Beginning with the launch, LOOK TÉLÉ may offer pay-audio services. As for over-the-air radio services, the applicant requested an exemption from the requirement under section 22 of the regulations to carry all mandatory audio programming services on launch. It stated, however, that it would distribute all mandatory audio services when its channel capacity permits.

The Commission approves this request by LOOK TÉLÉ. Accordingly, as discussed at the public hearing, the Commission will apply the requirement under section 22 of the regulations to distribute all mandatory audio programming services once LOOK TÉLÉ has upgraded its channel capacity; this shall be the case in all areas served except western Quebec and eastern Ontario, where that requirement will apply two years from the date of this decision. A condition of licence relating to this requirement is set out in Appendix II to this decision.

LOOK TÉLÉ is authorized to distribute, at its option, without advertizing material, the content included with its electronic programming guide as a special programming channel. This channel will offer promotional programming and will enable the subscriber to preview the various programming services available on LOOK TÉLÉ.

In accordance with the conditions of licence specified in Appendix II to this decision, LOOK TÉLÉ is authorized to insert promotional material as a substitute for the local availabilities on certain non-Canadian services. LOOK TÉLÉ is also authorized to carry the signals of four commercial U.S. networks and one PBS signal as part of the basic service.

Access

The regulations contain detailed rules with respect to the provision of access to Canadian programming services by distribution undertakings, including MDS undertakings. Consistent with those requirements, the Commission expects LOOK TÉLÉ to distribute the signals of all licensed pay television and specialty programming undertakings, including Talk-TV, which inadvertently was omitted from the applications, subject to the availability of MDS channel capacity and other considerations discussed in Public Notice CRTC 1996-60. The Commission notes that, once the applicant has expanded the system’s capacity to 150 channels, it will be able to distribute all licensed pay, pay-per-view and specialty television services, including those that are not available when the service is launched. The Commission also considers that LOOK TÉLÉ must give priority to the carriage of programming services over non-programming services.

Contribution to the development of Canadian programming

LOOK TÉLÉ proposed to contribute 7% of its gross annual revenues to support the development of Canadian programming. According to LOOK TÉLÉ's proposal, 4% would be allocated to the Canada Television and Cable Production Fund (CTCPF) and 3% to local programming projects.

Consistent with the above commitments and the policy framework set out in Public Notices CRTC 1997-25 dated 11 March 1997 and 1997-98 dated 22 July 1997, the Commission requires that LOOK TÉLÉ contribute a minimum of 7% of its gross annual revenues from broadcasting activities (hereinafter referred to as "gross annual revenues") to support the development of Canadian programming. This annual contribution shall be made in accordance with the condition of licence set out in Appendix II to this decision, as summarized below.

Of the 7% mentioned above, the licensee must contribute a minimum of 4% of its gross annual revenues to independently-administered Canadian production funds. Of this amount, 80% must be directed to the CTCPF, while up to 20% may be directed to one or more independently-administered production funds other than the CTCPF, provided that these other funds meet the criteria set out in Public Notice CRTC 1997-98.

With respect to the remainder, the licensee may elect to contribute up to 3% of its gross annual revenues to local expression. Should the licensee choose to contribute less than 3% of its gross annual revenues to local programming initiatives, the balance shall be directed to independently-administered production funds in accordance with the provisions set out above.

Consistent with its commitment, LOOK TÉLÉ is authorized to operate a commu-nity programming channel in accordance with the provisions of sections 27 and 28 of the regulations. At the hearing, the applicant stated that its plans for community programming are not primarily educational in nature, as the applications seemed to indicate, but instead are designed to provide support that is more community-oriented and representative of the regions and markets served.

If LOOK TÉLÉ decide to use "push" and "pull" technologies on its community channel, the Commission would expect the licensee to provide an appropriate screening system that will allow individual subscribers a choice of options with respect to content and delivery.

For community programming and any other programming of a service that it originates, the licensee shall adhere to the Cable Community Channel Standards, and 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. A condition of licence to this effect is set out in Appendix II to this decision.

Employment equity

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.

Other matters

This authority will only be effective and the licence will only be issued at such time as construction of the transmitting facilities is completed and they are prepared to commence operation. If the construction is not completed within twelve months of the date of this decision or, where the appli-cant applies to the Commission within this period and satisfies the Commission that it cannot complete construction and commence operation before the expiry of this period, and that an extension of time is in the public interest, within such further periods of time as are approved in writing by the Commission, the licence will not be issued. The applicant is required to advise the Commission (before the expiry of the twelve-month period or any extension thereof) in writing, once it has completed construction and is prepared to commence operation.

The Department of Industry has advised the Commission that the proposed transmitters are conditionally technically acceptable as special cases, subject to successful co-ordination with the U.S. Federal Communications Commission, and that Broadcasting Certificates will only be issued once it has been determined that this co-ordination has been achieved.

In accordance with section 22(1) of the Broadcasting Act, the Commission will only issue the licence and the authority will only be granted at such time as written notification is received from the Depart-ment of Industry that its technical requirements have been met, and that Broadcasting Certificates will be issued.

Câblevision HSL-SDM inc., licensee of an MDS undertaking serving Covey Hill, Quebec, and surrounding areas, filed an intervention opposing the applications by the three applicants that proposed to serve the Montréal area because of possible interference to the signals transmitted by its undertaking. The Commission notes in this regard that the Department of Industry regulations require new holders of broadcasting licences to protect the signals of other existing licensees. Accordingly, the Commission encourages LOOK TÉLÉ and Câblevision HSL-SDM inc. to work together to develop a mutually acceptable arrangement whereby the best possible service will be provided to the greater Montréal area and Covey Hill and vicinity.

The Commission acknowledges the many interventions submitted in support of these applications. The Commission also acknowledges the concerns expressed in the opposing interventions to the LOOK TÉLÉ applications, and is satisfied with the applicant's response thereto.

This decision and the licensee’s letter mentioned in Appendix II to this decision are to be appended to the licence.

Laura M. Talbot-Allan
Secretary General

This document is available in alternative format upon request

Appendix I to Decision CRTC 98-55

Effective radiated power (ERP) of each transmitter of the MDS radiocommunication distribution undertaking to be known as LOOK TÉLÉ