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ARCHIVED - Decision CRTC 2000-213

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Decision CRTC 2000-213
Ottawa, 30 June 2000
Shaw Communications Inc.
Across Canada – 200002585
25 April 2000 Public Hearing
in Vancouver
Summary
The Commission approves an application by Shaw Communications Inc. (Shaw) that will result in Shaw acquiring effective control of Cancom. All existing conditions of licence remain in effect, including those requiring structural separation of Shaw and Cancom.

1.

The Commission approves the application by Shaw to acquire a 21.18% voting interest in its satellite holding Canadian Satellite Communications Inc. (Cancom). The shares acquired by Shaw were previously held by WIC Television Ltd.

2.

The completion of this transaction results in the ownership by Shaw of more than 50% of the voting interest in Cancom, representing effective control of the businesses carried on by Cancom and its subsidiaries.

3.

Cancom is the licensee of a national satellite relay distribution undertaking (SRDU). SRDUs provide signals, via satellite, to broadcast distribution undertakings (BDUs) such as cable systems which, in turn, distribute these signals to their customers.

4.

Cancom’s subsidiary, Star Choice Television Network Inc. (Star Choice) is also licensed to operate an SRDU. As well, Star Choice offers broadcasting services directly to individual Canadian subscribers through a licensed direct-to-home (DTH) satellite service.

5.

The Commission considers that approval of this application is in the public interest as it will improve the competitive balance in the broadcasting system between satellite service providers. In particular, Shaw's financial support will strengthen the development of sustainable competition between integrated providers of satellite services, including SRDU, DTH and other, non-regulated services. Approval will therefore serve to ensure that retail customers have the widest possible choice of distribution alternatives.
Structural separation

6.

In Decision CRTC 97-38, the Commission licensed Shaw to operate a DTH service known as Homestar. The decision noted that Shaw was the second largest operator of cable systems in Canada. It also noted Shaw’s ownership interests in specialty services, the DMX pay audio service and radio stations. The Commission therefore imposed conditions of licence requiring that the Homestar DTH service remain structurally separate from its parent company, Shaw, to ensure that competitive incentives remained for Homestar to compete with Shaw’s cable undertakings for subscribers.

7.

When the Commission approved the merger between Star Choice and Homestar in Decision CRTC 97-677, it again imposed conditions of licence related to structural separation. Amended conditions of licence relating to structural separation were also imposed in Decision CRTC 99-162 on Star Choice's SRDU and DTH services and on Cancom's SRDU service when Cancom was authorized to assume effective control of Star Choice.

8.

The objective of these conditions is to prevent the possibility of undue preference or disadvantage that Shaw could confer. In approving this application, the Commission considers that, due to the influence that Shaw could have on the merged entity, the conditions of licence requiring structural separation continue to be necessary.

9.

The conditions of licence regarding structural separation attached to the SRDU licence of Cancom, and to the SRDU and DTH licences of Star Choice as established in Decision CRTC 99-162, will therefore continue to apply. All other existing conditions of licence and commitments will also remain in force.
Interventions

10.

The Commission notes the interventions it received concerning this application, and has considered all of them in reaching its decision.
Other matters
The Commission notes that the application (199917118) by Shaw for a change in control of Cancom through the acquisition of WIC Television Ltd.'s 21.18% voting interest in Cancom, which was initially scheduled at the 25 April 2000 Vancouver hearing, has been superceded by completion of the intercorporate transaction approved in Decision CRTC 2000-70, and the application approved in this decision.
Related CRTC decisions
• Decision 97-38 – licensing of Homestar
• Decision 97-677 – merger of Homestar and Star Choice
• Decision 98-171 – Cancom licence renewal
• Decision 98-172 – Star Choice: new SRDU approved
• Decision 98-482 – Cancom licence amendment (signal carriage)
• Decision 99-132 – Star Choice SRDU licence amendment (signal carriage)
• Decision 99-162 – merger of Cancom and Star Choice
• Decision 99-455 – Star Choice SRDU licence amendment (signal carriage)
• Decision 99-456 – Cancom licence amendment (signal carriage)
• Decision 2000-49 – Cancom licence amendment (signal carriage)
• Decision 2000-70 – WIC intercorporate reorganization
• Decision 2000-165 – administrative renewals for Cancom and Star Choice
Secretary General
This decision is to be appended to the licence.  It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca
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