ARCHIVED -  Public Notice CRTC 1999-133

Public Notice

Ottawa, 12 August 1999

Public Notice CRTC 1999-133

Proposed revisions to certain exemption orders

Summary

The Commission is calling for comments on the proposed revisions to certain exemption orders that are set out in the Appendix to this notice. The deadline for interested parties to submit their comments is 27 September 1999. These proposed revisions are the result of a review of 15 exemption orders that was announced in Public Notice CRTC 1998-40.

Introduction

1.  In Public Notice CRTC 1998-40 Review of certain exemption orders, the Commission announced a review of 15 exemption orders that it had previously issued. The review implemented a provision of the Policy regarding the use of exemption orders (Public Notice CRTC 1996-59) indicating that the Commission would normally review exemption orders between five and seven years following the date that they were issued.

2.  The Commission uses exemption orders to implement Section 9 (4) of the Broadcasting Act (the Act). This section specifies that the Commission shall exempt from regulation or licensing any class of broadcasting undertaking where it is clear that licensing or regulation will not contribute in a material way to the implementation of the broadcasting policy for Canada set out in the Act.

3.  The process for the review included two stages of written comments. During the first stage, interested parties provided their views on whether or not the exemption orders should be extended for another five years, and whether the orders should be modified. During the second stage, interested parties were able to respond to issues raised during first stage.

4.  The Commission received 103 comments - 69 in stage 1 and 34 in stage 2. Most comments supported the Commission's approach to exemptions, but parties raised substantive issues related to 8 of the 15 orders covered by the review. Minor changes were suggested to other orders.

5.  The Commission appreciates the high quality of the submissions and wishes to thank all parties for their views and participation. The Commission considered all of the submissions in developing the proposed exemption orders. The full public record for this proceeding is available at CRTC offices.

6.  After examining these comments, the Commission is issuing the 12 proposed revised exemption orders set out in the appendix for public comment. Please note that, for the convenience of interested parties, the text in the proposed exemption orders that differs from the existing exemption orders has been underlined.

7.  The orders that the Commission proposes to revise, and wishes to receive comments on, are the following:

·  Exemption order respecting resource development installations (revises the order set out in Public Notice CRTC 1981-79)

·  Exemption order respecting low-power radio: Temporary resource development distribution undertakings (revises the order set out in Public Notice CRTC 1993-44)

·  Exemption order respecting low-power radio: Limited duration special event facilitating undertakings (revises the order set out in Public Notice CRTC 1993-45)

·  Exemption order respecting low-power radio: Ultra low power announcements service (LPAS) undertakings (revises the order set out in Public Notice CRTC 1993-46)

·  Exemption order respecting carrier current undertakings whose services are not carried on distribution undertakings (revises the order set out in Public Notice CRTC 1993-47)

·  Exemption order respecting radio and television temporary network special event type 1 undertakings (revises the order set out in Public Notice CRTC 1993-48)

·  Exemption order respecting distribution undertaking temporary network special event type 2 undertakings (revises the order set out in Public Notice CRTC 1993-49)

·  Exemption order respecting closed circuit video programming undertakings (revises the order set out in Public Notice CRTC 1993-50)

·  Exemption order respecting still image programming service undertakings (revises the order set out in Public Notice CRTC 1993-51)

·  Exemption order respecting community programming network undertakings (revises the order set out in Public Notice CRTC 1993-52)

·  Exemption order respecting terrestrial relay distribution network undertakings (revises the order set out in Public Notice CRTC 1993-53)

·  Exemption order respecting master antenna television systems (revises the order set out in Public Notice CRTC 1993-54, as amended by Public Notice CRTC 1994-133)

8.  The Commission wishes to emphasize that its primary interest is to receive comments on whether or not the proposed orders accurately reflect the determinations set out later in this notice.

9.  The Commission has decided not to change the remaining three exemption orders covered by this review:

·  CBC Radio Licence Partial Exemption Order (Public Notice CRTC 1991-93)

·  Order Exempting Certain Shortwave Broadcasting Undertakings (Public Notice CRTC 1991-105)

·  House of Commons and Provincial or Territorial Legislature Proceedings Exemption Order (Public Notice CRTC 1992-6)

10.  In order to provide a context for the proposed orders, the remainder of this notice discusses the substantive issues raised by parties. It sets out the Commission's determinations on whether changes are called for and summarizes the changes that it is proposing. Proposed changes to the orders not discussed in this section generally relate to matters of terminology. For example, references to the Cable Television Regulations, 1986 have been changed to the Broadcasting Distribution Regulations, which came into force on 1 January 1998.

Low power radio: Limited duration special event facilitating undertaking

11.  The current exemption order for limited duration special event facilitating undertakings is set out in PN 1993-45 dated 30 April 1993. It defines the purpose of these undertakings as follows:

 ... to allow those attending special, generally recognized events, a fuller appreciation of those events through the provision of locally originated programming related directly to these events.

12.  The Commission proposes to make it clear that an undertaking may broadcast up to 28 consecutive days for any specific event. If a party were to broadcast programming relating to another specific event in the same year, even if it were to use the same equipment, the Commission would consider it to be a second, separate undertaking. It would therefore qualify again under the exemption order.

13.  The Commission also proposes to amend the exemption order to include the definitions of the types of sponsorship advertising that such undertakings may broadcast. Formerly, the order did not include these definitions but provided a cross-reference to another Commission document where the definitions were set out.

14.  Finally, the Commission proposes to add an exemption criterion indicating that exempt undertakings in this class must abide by the Canadian Association of Broadcasters (CAB) codes respecting sex-role portrayal and advertising to children. This criterion was included in the exemption order for certain native radio undertakings set out in Public Notice CRTC 1998-62. The Commission considers that it should also apply to other exempted low-power radio undertakings.

Carrier current undertakings

15.  Carrier current stations generally serve buildings on university and college campuses. They make use of very low-power AM transmitters that radiate a signal through the electrical system of one or more buildings. The signal can be received by AM radios in or near these buildings.

16.  The exemption order for carrier current undertakings that the Commission reviewed is set out in PN 1993-47. The order defines the purpose of these undertakings as follows:

 ... to provide a locally originated programming service for the benefit of residents of such institutions as colleges and universities.

17.  The Commission does not propose to amend the exemption order to include minimum requirements for Canadian and French-language music, as one party suggested. The Commission notes that no concern was raised regarding the level of Canadian and French-language vocal music that carrier current stations actually play. It further considers that, should significant concerns about carrier current stations' performance in these areas be revealed in the future, the appropriate response would be to license this class of undertakings rather than add such requirements to the exemption order.

18.  The Commission does, however, propose to add an exemption criterion indicating that exempted undertakings in this class must abide by the CAB codes respecting sex-role portrayal and advertising to children.

Temporary Network Special Event Undertakings

19.  There are two exemption orders related to temporary network special event undertakings. One applies only to radio and television; the other applies only to cable.

20.  The current exemption order relating to radio and television is set out in PN 1993-48 Exemption Order Respecting Radio and Television Temporary Network Special Event Type 1 Undertakings. It defines the purpose of these undertakings as follows:

 ... to supply radio and/or television stations licensed or exempted by the Commission with coverage of unexpected, non-recurring events, such as special concerts and commemorative programs, or of public emergencies such as natural disasters and major accidents.

21.  The current exemption order relating to cable is set out in PN 1993-49 Exemption Order Respecting Cable Temporary Network Special Event Type 2 Undertakings. It defines the purpose of these undertakings as follows:

 ... to supply cable systems with coverage of not-for-profit or charitable events such as the Special Olympics or telethons raising money for certain charities.

22.  These exemption orders permit broadcasting undertakings to supply coverage of certain types of events, on a network basis, without the need to apply for a licence.

23.  The Commission considers it appropriate to maintain two separate exemption orders for such undertakings. It is of the view that there is no compelling reason why cable systems need access to the same type of programming that is allowed under the exemption order relating to Type 1 undertakings. It also does not consider it appropriate to expand the order relating to Type 2 undertakings so that cable networks could provide feeds to radio and television undertakings, as some parties suggested.

24.  The Commission does, however, propose to add a criterion to the orders indicating that exempted undertakings in this class must abide by the CAB codes respecting gender portrayal and advertising to children.

Closed circuit video programming undertakings

25.  The current exemption order for closed circuit video programming undertakings is set out in PN 1993-50 as amended by PN 1996-151. The amended order defines the purpose of these undertakings as follows:

 ... to provide a programming service, whether for a separate fee or not, to temporary residents of hotels, motels and hospitals or to the inmates of prisons only, and not to residents of permanent dwelling places. The programming consists only of feature motion pictures intended for theatrical release, video games programming services, or information about the city or about the premises served by the undertakings, and does not contain any commercial messages.

26.  One party suggested that a new exemption criterion be added that would require these undertakings to make financial contributions to the production of Canadian programming. The Commission does not consider that closed circuit video programming undertakings should have such requirements when they are not subject to a licensing regime. It is not convinced that licensing is necessary or desirable considering their limited influence on the broadcasting system.

27.  Some parties made reference to the trapping or "notching out" of signals in hotels, motels, hospitals etc. and the substitution of closed circuit video services for these signals. In 1996, the Commission issued PN 1996-151 amending the exemption order set out in PN 1993-50. This amendment made it clear that these exempt programming services could not delete any channel provided as part of the basic service of a licensed cable undertaking serving the premises in question and replace it with closed circuit services. Some parties suggested operators of these exempt undertakings should not be allowed to "notch out" any channel provided by cable systems.

28.  The Commission considers that the provision of basic cable service to hotel and motel guests, in addition to exempt services, reaches an appropriate balance. After considering all comments concerning the "notching out" issue, the Commission does not consider that changes to criterion 5 as set out in PN 1996-151 are necessary.

29.  It was also suggested that the Commission should require closed circuit video undertakings to comply with the CAB codes relating to gender portrayal and violence. The Commission notes that these codes already apply to Canadian conventional and discretionary services. In addition, pay and pay-per-view services have their own codes with respect to violence and adult content that the Commission has approved. Adult films must be passed by provincial censor boards, and hotels and motels normally ensure that access to adult material is restricted through the use of blocking devices. Accordingly, the Commission does not consider that applying the CAB codes to these exempt undertakings is necessary.

Still image programming service undertakings

30.  The current exemption order for still image programming service undertakings is set out in PN 1993-51. The order defines the purpose of these undertakings as follows:

 ... to provide distribution undertakings with programming consisting of still images (including graphic images) with or without an audio component, and with or without a fee being charged to any distribution undertaking receiving the service.

31.  The Commission is not proposing substantive changes to this order.

32.  Broadcasters considered that a criterion should be added that would, in effect, require these exempt services to make contributions to Canadian programming. The Commission notes that issuing an exemption order means that the Commission has decided that licensing would not contribute materially to the realization of the Act's objectives. It does not consider that still image programming undertakings should have such requirements when they are not subject to a licensing regime. The Commission is not convinced that licensing is necessary or desirable considering their limited influence on the broadcasting system.

33.  One party considered that the order should be amended to permit insertion of certain full motion promotional material. Such material would be designed to enhance viewer awareness of Canadian broadcasting services and provide access for public service announcements. It was also suggested that the order should permit the use of computer-generated effects.

34.  The Commission notes that distributors can already promote Canadian services on their barker channels and during local availabilities on non-Canadian satellite services. It is concerned that allowing computer generated effects could result in still image operations effectively becoming full-motion services that would compete with licensed services. This would be well beyond the intention of the exemption order.

Combining exempt services on a single channel

35.  The Commission wishes to clarify that it will permit a broadcasting distribution undertaking (BDU) to distribute a still image service as well as one falling under the Exemption Order Respecting Teleshopping Programming Service Undertakings (Public Notice CRTC 1995-15) on a single channel.

36.  However, the Commission emphasizes that it is not giving blanket approval for other combinations of exempt services on one channel. Any other proposal involving the distribution of more than one exempt service on a single channel must be submitted for prior approval. The Commission is concerned that some combinations might result in a hybrid service that goes beyond what was intended by the exemption orders.

37.  The Commission notes that the exemption order related to teleshopping services is scheduled for review after the year 2000. The Commission will evaluate the impact of allowing the distribution of exempt still image and teleshopping services on the same channel as part of that review.

Terrestrial relay distribution network undertakings (TRDNUs)

38.  The current exemption order for TRDNUs is set out in PN 1993-53. The order defined the purpose of these undertakings as follows:

 ... to receive the programming services of radio or television stations, foreign or domestic, and distribute those programming services, unaltered, to affiliated distribution undertakings with or without a fee, on a local or regional basis.

39.  The Commission is not proposing substantive changes to the exemption order for TRNDUs.

40.  While acknowledging that TRNDUs may provide competition with satellite relay distribution undertakings (SRDU) for the delivery of some signals, it considers that the criteria set out in the exemption order limits the scope of their operations. For example, TRNDUs are limited to local or regional operation and may not make use of satellite technology. The Commission considers that it is appropriate to maintain these criteria given that TRNDUs are exempt from licensing. In light of this, it considers that it is not necessary to require further contributions to the broadcasting system by TRNDUs due to the more limited scope of their operations.

41.  One party suggested that, where Canadian television signals are received within their Grade "A" or Grade "B" official contours and are then distributed by a TRNDU to licensed distribution undertakings, the Canadian television station should be able to request simultaneous substitution over U.S. signals providing the same program. The Commission notes that implementing this suggestion would represent a fundamental change to the current simultaneous substitution policy since substitution privileges would be extended beyond a broadcaster's local market. The Commission considers that this issue goes well beyond the scope of the current proceeding.

Master antenna television systems (MATVs)

42.  The current exemption order for MATVs, set out in PN 1994-133, indicates that these undertakings have, as their general purpose,:

 ... the distribution to the temporary or permanent residents of multiple unit dwellings such as hotels, apartment buildings, condominiums and row houses, of services generally accessible by residents of single unit dwellings.

43.  MATVs were first established to provide adequate television reception for multiple unit dwellings (MUDs) where the inadequacy of reception by set-top antennas required the use of roof-top antennas. With the introduction of distribution of broadcast signals by satellite, many of these systems adopted this technology and became known as Satellite Master Antenna Television Systems (SMATVs). The MATV exemption order applies to SMATVs as well.

44.  The Commission has exempted MATVs from licensing since 1977. Its original rationale for exemption was set out in a Public Announcement dated 16 March 1977:

  To the extent that an MATV system is analogous to a homeowner's roof-top antenna in both its configuration and its range of services, it may, without adverse effect on its viewers or on the Canadian broadcasting system, be exempted from Commission licensing procedures. When a system goes beyond that point, however, in terms of territorial reach, extra programming services, operation for direct commercial gain, etc., then it must for the benefit of both viewers and the broadcasting system as a whole, be the subject of regulation and licensing by the Commission.

45.  Comments received during the current review fell into two broad categories. Those involved with the MATV industry and the buildings they serve generally considered that the exemption order should be more flexible. On the other hand, licensed undertakings, such as cable distribution undertakings, considered that MATVs should be subject to requirements that are similar to those imposed on other distributors, preferably through licensing.

46.  The issues raised can be discussed under three headings - whether or not to license MATVs, suggestions for new requirements, and possible revisions to the existing exemption criteria.

Licensing of MATVs

47.  The Commission considers that it is appropriate to continue to regulate MATVs through an exemption order. Further, it will not introduce a registration requirement for these undertakings.

48.  The Commission notes that, although MATVs do not have the same regulatory obligations as other distributors, the criteria set out in the exemption order place substantial restrictions on their operations. Specifically, MATVs are not allowed to cross public roadways and must confine their operations to property that the company operating them owns. Further, MATVs may not operate on a for-profit basis. As such, their ability to directly compete with licensed BDUs for subscribers is limited.

49.  A few parties submitted that the Commission should adopt a registration requirement for these undertakings to help ensure that they are aware of and are meeting the terms of the exemption order. The Commission has previously examined the question of registration and, in PN 1996-59, stated that "any registration or reporting request for exempt undertakings would be difficult and would, in practice, be tantamount to licensing."

50.  Parties made various suggestions concerning the type of information that MATVs should provide during the registration process. The Commission, however, considers that it is unnecessary to request much of the information suggested in these comments. For example, it is not necessary to have rate information since these undertakings are not rate regulated. It also considers that it is not necessary to obtain a statement that the system will comply with the exemption order since, consistent with the Commission's current practice, any compliance and enforcement actions will be initiated through the complaints process.

51.  While there may be certain advantages to a registration process, the Commission, on balance, considers that its current practice of not requiring registration of exempt MATVs remains appropriate.

Imposing additional requirements

52.  The Commission has decided not to introduce any new requirement for MATVs.

53.  A number of parties recommended that the Commission place additional requirements on MATVs, similar to those that it places on licensed BDUs. The Commission considers that the restrictions under which MATVs operate mean that they can never become full competitors with licensed BDUs.

54.  Further, MATVs differ from new entrants in the distribution market, such as direct-to-home satellite services (DTH) and multi-point distribution systems (MDS), in that their operations are confined to the property owned by the person operating the MATV. Unlike other new entrants, who may serve anyone within their authorized service areas, the current restriction on MATVs effectively limits the total number of residential units that any one MATV can serve.

55.  The Commission also notes that it may not be practical to require a small MATV system to fulfil complex requirements such as simultaneous substitution. The current exemption order requires MATVs to distribute all local Canadian television stations and to ensure that most of the video channels on the undertaking are devoted to the distribution of Canadian programming services. The Commission considers that these distribution requirements are sufficient for MATV systems, given the restrictions under which they operate.

56.  The Commission does not propose to require MATVs to make financial contributions to Canadian programming, as some suggested. It considers that, given the small size of most MATVs and the relatively small amounts that they would contribute to the production funds, the practical difficulties in administering a contribution scheme for MATVs outweigh the potential benefits.

Amendments to existing exemption criteria

Criterion 1

57.  Criterion 1 of the MATV exemption order currently requires the person carrying on the undertaking to own or lease the land upon which the undertaking is situated. The Commission does not propose to amend this criterion to allow third parties to operate exempt MATV undertakings. This means that the building owners (or landlord or condominium corporation) must control the MATV undertaking.

58.  The Commission considers that the restriction on third-party ownership is consistent with the general principle that MATVs should provide a service similar to that in single family residences where the homeowners are responsible for controlling their antenna or dish. It also considers that a third party operating an MATV would be acting in a manner that is not appreciably different from an existing licensed cable system. The appropriate approach for a third party wanting to control an MATV would therefore be to apply to the Commission for a licence to operate a BDU.

59.  As one means to demonstrate compliance with this criterion, the Commission will expect that any contract between the building owner (or landlord or building owner, where appropriate) and a third-party service company include provisions to ensure that effective and real control remains with the building owner.

60.  The Commission also wishes to clarify that it interprets the term "condominium corporation" to also include any other type of housing cooperative.

Criterion 2

61.  Criterion 2 prohibits an MATV from being connected to land not owned by the MATV operator identified in criterion 1. The only connections permitted are those that:

a ) permit an MATV to receive conventional off-air television signals and to use a satellite dish to receive signals, and

b ) permit an MATV to use either microwave or optical fibre technology to connect the distribution plant of the MATV with its remote head end.

62.  The Commission does not propose to amend criterion 2 to permit an MATV to serve separate buildings on adjacent properties or to permit the territories served by such undertakings to cross over or under a public street or roadway.

63.  While recognizing that permitting MATVs to serve separate properties could increase their efficiency, the Commission considers that such an operation would be virtually identical to that of a licensed distribution undertaking. It therefore considers that any MATV wanting to serve separate properties should apply to the Commission for a BDU licence.

64.  The Commission does, however, propose to amend criterion 2 to make it clear that MATVs, while still restricted from connecting with other MATVs using optical fibre, may use optical fibre to receive and distribute signals that are received from licensed programming undertakings.

65.  In response to requests, the Commission also wishes to clarify that criterion 2 does not restrict the reception of signals in digital format, prohibit the use of wireless control devices by subscribers, or limit or prohibit the use of a fibre distribution system.

Criterion 3

66.  Criterion 3, in part, prohibits a person carrying on an MATV undertaking from realizing any commercial gain or profit from the MATV. The Commission does not propose to amend this criterion to allow MATVs to operate on a for-profit basis, as one party suggested.

67.  The Commission notes that the not-for-profit nature of MATVs has been a fundamental principle of the exemption order from its inception. It does not consider that an MATV should be allowed to operate on a for-profit basis and compete with licensed distributors without assuming the same obligations as those licensed distributors. It therefore considers that MATVs wanting to operate on a for-profit basis should apply to the Commission for a BDU licence.

68.  In response to another concern raised in the submissions, the Commission wishes to clarify that an MUD receiving all of its signals from a wireless distribution undertaking would represent a bulk billing account for the wireless operator. An owner receiving signals exclusively from such a source would thus not be carrying on a broadcasting distribution undertaking and need not be licensed or bring itself under the MATV exemption order. It should also be noted, however, that an owner who receives some signals from such a source would contravene criterion 2.

Criterion 4

69.  Under criterion 4, MATVs are required to distribute all local off-air television stations, as are cable licensees. The Commission proposes to replace therein the reference to the Cable Television Regulations, 1986 with a reference to the Broadcasting Distribution Regulations.

Criterion 5

70.  Criterion 5 permits MATVs to distribute only those signals that the Commission has authorized the local cable operator to distribute. The Commission proposes to replace the reference to "cable distribution undertaking" with a reference to "terrestrial distribution undertaking" to coincide with the terminology used in the current regulations.

71.  This change allows MATVs to distribute signals carried by local licensees of distribution undertakings that use alternate technologies. However, the change precludes MATVs from distributing signals not available from local distribution undertakings, even if they are available from DTH undertakings.

72.  The Commission also wishes to clarify that the current wording of this criterion permits MATVs to distribute all services, including audio services, authorized for cable distribution. Thus, no amendment to the criterion is necessary to permit MATVs to distribute digital audio services included on the appropriate list of eligible satellite services or radio stations receivable over the air, as some parties suggested. The Commission notes that the criterion does not prevent MATVs from distributing the signals of affiliates of networks distributed by local cable operators that originate in different time zones.

Criterion 6

73.  Criterion 6 requires that the majority of video services distributed by an MATV be Canadian. In order to make this criterion coincide with the regulations, the Commission proposes to amend it so that the operator must ensure that the majority of video and audio signals received in each individual dwelling unit be Canadian.

Criteria 7 and 8

74.  Criterion 7 prevents most MATVs from distributing feature films. Criterion 8 permits certain types of MATVs to distribute feature films, video games or information about the city or premises served by the undertaking. The Commission does not propose to amend these criteria to allow MATVs that serve permanent residences to distribute locally originated feature films, as some parties suggested.

75.  The Commission is concerned that this would allow MATVs to enter the pay-per-view and video-on-demand industry without holding a licence. In the event that an MATV wishes to provide such a service, the Commission considers that it should apply for a licence.

76.  The Commission wishes to clarify that, since criterion 5 provides that MATVs may distribute any service authorized for the local cable operator, MATVs are permitted to distribute licensed video-on-demand services.

Other Matters - Inside Wire

77.  The Commission considers that the issue of the transfer of inside wire in MUDs is outside the scope of this review. The Commission remains of the opinion that many aspects of this issue are appropriately addressed by the CRTC Interconnection Steering Committee established in Public Notice CRTC 1998-12.

Call for comments

78.  The Commission invites written comments on the draft exemption orders set out in the appendix to this notice. The Commission will accept comments that it receives on or before 27 September 1999.

79.  The Commission will not formally acknowledge written comments. It will, however, fully consider all comments and they will form part of the public record of the proceeding, provided that the procedures for filing set out below have been followed.

Procedures for filing comments

80.  Interested parties should send their comments on the proposed exemption orders to the Secretary General, CRTC, Ottawa, KIA 0N2

·  Parties must file all submissions in "hard copy format" (i.e. on paper).

·  Comments longer than five pages should include a summary.

81.  The Commission also encourages parties to file electronic versions of their comments by e-mail or on diskette. The Commission's e-mail address for electronically filed documents is procedure@crtc.gc.ca

·  Electronic submissions should be in the HTML format. As an alternative, those making submissions may use "Microsoft Word" for text and "Microsoft Excel" for spreadsheets.

·  Please number each paragraph of the comment. In addition, please enter the line ***End of Document*** following the last paragraph. This will help the Commission verify that the document has not been damaged during transmission.

82.  The Commission will make comments filed in electronic form available on its web site at www.crtc.gc.ca in the official language and format in which they are submitted. This will make it easier for members of the public to consult the documents.

Examination of public comments and related documents at the following Commission offices during normal business hours

Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room G-5
Hull, Quebec K1A ON2
Tel: (819) 997-2429 - TDD: 994-0423
Telecopier: (819) 994-0218

Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia B3J 3K8
Tel: (902) 426-7997 - TDD: 426-6997
Telecopier: (902) 426-2721

Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec H3A 3J6
Tel: (514) 283-6607 - TDD: 283-8316
Telecopier: (514) 283-3689

Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
Telecopier: (204) 983-6317

530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
Telecopier: (604) 666-8322

CRTC Documentation Centre
55 St. Clair Avenue East
Suite 624
Toronto, Ontario
M4T 1M2
Telephone: (416) 952-9096
Telecopier: (416) 954-6343

CRTC Documentation Centre
Cornwall Professional Building
2125 - 11th Avenue
Room 103
Regina, Saskatchewan
S4P 3X3
Telephone: (306) 780-3422
Telecopier: (306) 780-3319

Secretary General

This notice is available in alternative format upon request, and may also be viewed at the following Internet site: http://www.crtc.gc.ca

Appendix to Public Notice CRTC 1999-133: Proposed Exemption Orders

Please note that, for the convenience of interested parties, the text in the proposed orders that differs from that in the existing orders has been underlined.

Exemption order respecting resource development installations

(This proposed exemption order would replace that set out in Public Notice CRTC 1981-79)

1. The Commission hereby prescribes a class of cable distribution undertaking to be known as "Resource Development Installation Distribution Undertakings."

2. Distribution undertakings in Canada which meet all of the following criteria shall constitute that class:

(a) The entire cable distribution undertaking is operated by or on behalf of the person who owns or leases all of the property on which the undertaking is located and that operator also supplies to the population of the installation served by the undertaking such common amenities as food and shelter.

(b) The cable distribution undertaking is not connected by any form or means of transmission of signals to any land now owned or leased by the owner or lessee described above and such transmissions do not cross any public street or highway.

(c) No separate charge is levied or direct commercial gain obtained for any signal or service provided through the distribution system used by the undertaking or for the use of any part of the distribution system.

(d) The operator of the undertaking distributes through its system the signals of all local Canadian television stations, in each case with no degradation of received signal.

(e) Where satellite signals are received, the person carrying on the distribution undertaking has executed a contract for the provision of such signals with the licensed provider of such satellite signals.

(f) The only satellite signals received and distributed are from a licensed Canadian satellite operator.

3. For the purposes of this order:

(1)  "licensed" means licensed by the CRTC

(b) "local television station" means a licensed television station that

 (i) has a Grade A official contour that includes any part of the service area of the undertaking; or

 (ii) has, if there is no Grade A official contour, a transmitting antenna that is located within 15 kilometres of the service area of the undertaking

(c) "signal" means any sign, writing, image, sound or intelligence of any nature transmitted or emitted as a radiocommunication

Accordingly, persons meeting allof the foregoing criteria need not apply for a licence to operate a cable television undertaking

Exemption order respecting low-power radio: Temporary resource development distribution undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-44)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these radio programming undertakings is to make available to employees of temporary mining, logging and other such temporary installations, rebroadcasts of Canadian radio stations, for the duration of the use of the installations.

Description

1. The undertaking operates between 525 and 1705 kHz in the AM frequency band, or between 88 and 108 MHz in the FM frequency band.

2. The undertaking broadcasts at a power of less than 100 watts transmitter power for AM, or with an effective radiated power (ERP) of 50 watts or less for FM.

3. The undertaking operates in an area that is not within the 0.5 millivolt per metre (mV/m) daytime contour of a protected AM station licensed by the Commission, or the 0.5 mV/m realistic contour of a protected FM station licensed by the Commission, broadcasting in the same language as the undertaking.

4. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

5. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

6. The undertaking is operated by or on behalf of the person who owns or leases all of the property on which the undertaking is situated and who supplies the population of the installation served by the undertaking with such common amenities as food and shelter.

7. The undertaking discontinues operation upon completion of the work project.

8. The undertaking originates no programming itself.

9. The undertaking distributes, without curtailment or alteration, the signal of a Canadian station licensed or exempted by the Commission.

Exemption order respecting low-power radio: Limited duration special event facilitating undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1994-45)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these radio programming undertakings is to allow those attending special, generally recognized events a fuller appreciation of those events through the provision of locally originated informational programming related directly to these events.

Description

1. The undertaking operates between 525 and 1705 kHz in the AM frequency band, or between 88 and 108 MHz in the FM frequency band.

2. The undertaking broadcasts at a power of less than 100 watts transmitter power for AM, or with an effective radiated power (ERP) of
50 watts or less for FM.

3. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

4. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

5. The undertaking originates all of its programming from the property upon which the event takes place.

6. The undertaking does not rebroadcast the programming of any other undertaking.

7. The undertaking operates as ancillary to and for the purpose of facilitating a special event.

8. The undertaking restricts its programming to the specific recognized (sports, cultural or touristic) event and does not duplicate the programming service of any licensed or exempted radio undertaking or the audio portion of a licensed or exempted television undertaking.

9. The undertaking does not broadcast programming that is religious or political in nature.

10. The undertaking is operated for a single period, in respect of any special event, consisting of no more than 28 consecutive days in any calendar year.

11. The undertaking's programming complies with the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-role Portrayal Code for Television and Radio Programming and the provisions of the CAB's Broadcast Code for Advertising to Children as may be amended from time to time and approved by the Commission.

12. In this section:

"commercial message" means an advertisement intended to sell or promote goods, services, natural resources or activities and includes an advertisement that mentions or displays in a list of prizes the names of the person selling or promoting those goods, services, natural resources or activities;

"sponsor identification" means the identification of a sponsor of a program or program segment other than a commercial message or a promotion with sponsor mention; and

"promotion with sponsor mention" means verbal or musical material promoting increased listening to the station or to specific announcers, programs or programming elements, when accompanied by the identification of a sponsor.

The undertaking limits on-air commercial activity to sponsor identification or promotion with sponsor mention.

Exemption order respecting low-power radio: Ultra low power announcement service (LPAS) undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-46)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these radio programming undertakings is to allow those such as real estate agents, store owners and local authorities to communicate to the public messages of an informative, sometimes commercial nature, regarding their activities by means of ultra low-power transmitters, e.g., "talking signs."

Description

1. The undertaking operates between 525 and 1705 kHz in the AM frequency band, or between 88 and 107.5 MHz in the FM frequency band.

2. In the case of an undertaking using the AM broadcasting band, the maximum power output of the transmitter into its antenna, without modulation, does not produce a field strength, as measured at a distance of 30 metres, of more than 0.25 millivolts per metre (mV/m) and, in the case of an undertaking using the FM broadcasting band, the maximum power output of the transmitter into its antenna, without modulation, does not produce a field strength, as measured at a distance of 30 metres, of more than 0.1 mV/m.

3. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

4. The undertaking meets all technical requirement of the Department of Industry and has acquired all authorizations or certifications prescribed by the Department.

5. The undertaking originates all of its programming.

6. The undertaking does not rebroadcast the programming of another undertaking.

7. The undertaking does not broadcast programming that is religious or political in nature.

8. The undertaking, if it promotes commercial activity, e.g., "talking signs," or is commercially oriented, does not broadcast the same message on more than one transmitter.

Exemption order respecting carrier current undertakings whose services are not carried on distribution undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-47)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these carrier current undertakings is to provide a locally originated programming service for the benefit of residents of such institutions as colleges and universities.

Description

1. The undertaking operates between 525 and 1705 kHz in the AM frequency band, using a transmitter that radiates a signal solely through the electrical system of a building or adjacent buildings.

2. The undertaking operates so that the maximum power output of the transmitter into the electrical system of the building(s) does not produce a field strength exceeding 15 microvolts-per-metre (V/m) at a distance from the property served given by the equation: d = 48,000 f where d is the distance in metres, and f is the frequency in kHz.

3. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

4. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

5. The programming of the undertaking is not distributed by any distribution undertaking.

6. The undertaking's programming complies with the guidelines on gender portray set out in the Canadian Association of Broadcasters' (CAB) Sex-role Portrayal Code for Television and Radio Programming and the provisions of the CAB's Broadcast Code for Advertising to Children as may be amended from time to time and approved by the Commission.

Exemption order respecting radio and television temporary network special event type 1 undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-48)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these radio and/or television network undertakings is to supply radio and/or television stations licensed or exempted by the Commission with coverage of unexpected, non-recurring events, such as special concerts and commemorative programs, or of public emergencies such as natural disasters and major accidents.

Description

1. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

2. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

3. The undertaking is a network operation and, in Canada, distributes programming to licensed or exempted radio or television undertakings only.

4. The undertaking

a) distributes its programming for a period of less than 24 consecutive hours, where the broadcast is of a one-time, non-recurring event, or

b) distributes its programming over a period of not more than seven consecutive days, where the broadcast is of a public emergency.

5. The programming is distributed live or on a tape-delay basis and, if taped, is distributed within 24 hours of the time of the original recording.

6. The undertaking does not broadcast programming that is religious or political in nature.

7. The undertaking's programming complies with the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-role Portrayal Code for Television and Radio Programming and the provisions of the CAB's Broadcast Code for Advertising to Children as may be amended from time to time and approved by the Commission.

Exemption order respecting distribution undertaking temporary network special event type 2 undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-49)

The Commission, pursuant to subsection 9 (4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these distribution network undertakings is to supply distribution undertakings with coverage of not-for-profit or charitable events such as the Special Olympics or telethons raising money for certain charities.

Description

1. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

2. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

3. The undertaking is a network operation and, in Canada, distributes its programming to distribution undertakings only.

4. The undertaking provides coverage of a Canadian event that is not-for-profit in nature.

5. The programming distributed by the undertaking does not contain any conventional commercial activity. Sponsorship and contra messages are allowed provided that such messages meet all the restrictions applicable to the community channel as found in the Broadcasting Distribution Regulations, as amended from time to time by the Commission.

6. The undertaking does not operate outside of a single period consisting of a maximum of 28 consecutive days per year.

7. The undertaking distributes programming to distribution undertakings that carry it only on their community programming channel or on a special programming channel.

8. The programming is distributed live or on a tape-delayed basis and, if taped, is distributed within 24 hours of the time of the original recording.

9. The undertaking does not broadcast programming that is religious or political in nature.

10. The undertaking's programming complies with the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-role Portrayal Code for Television and Radio Programming and the provisions of the CAB's Broadcast Code for Advertising to Childrenas may be amended from time to time and approved by the Commission.

Exemption order respecting closed circuit video programming undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-50)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these television programming undertakings is to provide a programming service, whether for a separate fee or not, to temporary residents of hotels, motels and hospitals or the inmates of prisons only, and not to residents of permanent dwelling places. The programming consists only of feature motion pictures intended for theatrical release, or information about the city or about the premises served by the undertaking, and does not contain any commercial messages.

Description

1. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

2. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

3. The undertaking does not broadcast programming that is religious or political in nature, excepting feature motion picture films intended for theatrical release.

4. The undertaking provides a programming service consisting only of feature motion picture films intended for theatrical release or promotions for such films, and information about the city and the facilities for the guests of hotels or motels, the patients of hospitals and the inmates of prisons.

5. The undertaking does not operate in a manner that prevents a hotel or motel guest, hospital patient or prison inmate from receiving any programming service listed in section 17 or section 32 of the Broadcasting Distribution Regulations when that service is provided to the owner or operator of a hotel, motel, hospital or prison as part of the basic service of a licensed cable distribution undertaking, or from receiving any signal of a local television station when that signal is provided by a master antenna television system operating in accordance with the Exemption Order Respecting Master Antenna Television Systems.

Exemption order respecting still image programming service undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-51)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these television undertakings is to provide distribution undertakings with programming consisting of still images, (including graphic images) with or without an audio component, and with or without a fee being charged to any distribution undertaking receiving the service.

Description

1. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

2. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

3. The undertaking does not broadcast programming that is religious or political in nature.

4. The undertaking's programming is provided exclusively to distribution undertakings, and consists entirely of still images with or without alpha-numeric text, and with or without an audio component consisting of:

a)  background music;
b)  the programming service of any licensed or exempted AM station or FM station other than an educational radio or programming service, the operation of which is the responsibility of an educational authority;
c)  the service of Weather Radio Canada;
d)  the programming service of a licensed or exempted national audio programming undertaking; or
e)  spoken words that relate to what is represented by the still images.

The service of the undertaking may be combined with the service of an undertaking exempted under the Exemption Order Respecting Teleshopping Programming Service Undertakings on a single channel of a distribution undertaking.

Exemption order respecting community programming network undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-52)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these network undertakings is to distribute portions of one licensee's community programming to the licensees of other distribution undertakings serving a common urban area.

Description

1. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

2. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

3. The undertaking only distributes community programming, as defined in the Broadcasting Distribution Regulations, as amended from time to time by the Commission, to the licensees of cable distribution undertakings serving a common urban area, and all of the programming distributed by the undertaking is produced by the operator of the undertaking or by members of the community served by the undertaking.

4. The operator of the undertaking is licensed by the Commission to carry on a cable distribution undertaking in the common urban area in which it distributes its programming.

Exemption order respecting terrestrial relay distribution network undertakings

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-53)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

The purpose of these terrestrial relay distribution network undertakings is to receive the programming services of programming undertakings, foreign or domestic, and distribute those programming services, unaltered, to affiliated distribution undertakings, with or without a fee, on a local or regional basis.

Description

1. The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

2. The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

3. The undertaking makes use of any technology other than satellite to distribute programming to distribution undertakings licensed or exempted from licensing by the Commission.

4. The undertaking does not originate any programming, nor does it curtail any programming that it receives and distributes.

5. The undertaking is local or regional in nature and not national.

Exemption order respecting Master antenna television systems (MATV)

(This proposed exemption order would replace that set out in Public Notice CRTC 1993-54, as amended by Public Notice CRTC 1994-133)

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following criteria:

Purpose

These radiocommunication distribution undertakings, commonly known as Satellite Master Antenna Television (SMATV) systems, or more simply as Master Antenna Television (MATV) systems, have as their general purpose the distribution to the temporary or permanent residents of multiple unit dwellings such as hotels, apartment buildings, condominiums and row houses, of services generally accessible by residents of single unit dwellings.

Description

1. The entire undertaking:

a) is situated exclusively on land owned or leased by the person carrying on the undertaking, or, in the case of an undertaking carried on by a condominium corporation, by such corporation or any of its members; or

b) is effectively controlled by and provides service only to an educational institution, including residential buildings owned by and forming part of such institution.

2. The undertaking is not connected by any form or means of transmission, apart from i) the direct over-the-air reception of conventional broadcast signals, ii) the direct satellite reception of services, or iii) the use of microwave or optical fibre to connect the building portion* of an MATV undertaking to its remote head end portion, which is solely and exclusively owned or leased by the person carrying on the undertakings, and which serves that building portion only,

a) to any land not owned or leased by the person or persons described above, or

b) crossing over or under any public street or highway (or in the case of any MATV system fully built before 2 March 1994, over any public street or highway), except in the case of an undertaking carried on by a condominium corporation, or by a registered cooperative society, all of whose members reside on the land on which the undertaking is situated, or by an educational institution described in 1 b).

* Where the building portion consists of more than one building, these buildings may not be connected by crossing over or under any public street or highway (or in the case of any MATV system fully built before 2 March 1994, over any public street or highway), except in the case of an undertaking carried on by a condominium corporation, or by a registered cooperative society, all of whose members reside on the land on which the undertaking is situated, or by an educational institution described in 1 b).

3. a) No separate charge is levied, or direct commercial gain obtained, for the use of any part of the undertaking or for any service provided thereover, except for a charge levied in proportionate amount on subscribers to recover:

i) interest on money borrowed and depreciation, maintenance and administration expenses as reasonably incurred by the operator of the undertaking in connection with the establishment and maintenance of the undertaking, and

ii) the reasonable charge or fee payable by the operator of the undertaking to the distributor of a service or to an agent appointed by the operator of the undertaking to act on its behalf in arranging and administering agreements with service distributors.

b) No operator of an undertaking shall have any legal or beneficial ownership interest in any third party providing to the operator, for that undertaking, any services for which separate charges are levied with respect to the matters authorized under paragraphs 3(a) (i) and (ii), unless a contract was entered into on or before 18 May 1989, in which case the application of this subsection to that relationship will only become effective upon the expiration of the term of the said contract.

4. All signals of local Canadian television stations are distributed over the undertaking, in each case with no degradation of received signal.

"Signals of local Canadian television stations" means the signals of all television broadcasting stations licensed by the Commission having Grade A "official contours" (as defined in the Broadcasting Distribution Regulations, as amended) enclosing the area in which the undertaking in question is carried on.

5. No service received over-the-air or by satellite or microwave or by optical fibre transmission is distributed over the undertaking, other than a service that the Commission by regulation, condition of licence, or otherwise has authorized the licensee of a cable distribution undertaking serving the area within which the undertaking is situated to distribute on its undertaking, whether or not the licensee is actually distributing the service.

Subject to paragraph 4 above, the signals distributed by the exempt undertaking need not be identical to those signals distributed by the licensed terrestrial distribution undertaking serving the area, so long as they are signals of affiliates of the same network.

6. A majority of the video channels and a majority of the audio channels received by each permanent or temporary residence are devoted to the distribution of Canadian programming services.

7. No locally originated feature motion picture is distributed over the undertaking.

8. Notwithstanding paragraphs 5 and 7 above, an undertaking serving the temporary residents of hotels, motels and hospitals or the inmates of prisons may distribute the programming authorized for distribution by Closed Circuit Video Programming Undertakings as set out in Public Notice (insert the number of the notice setting out the final revised exemption order)