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ARCHIVED - Public Notice CRTC 2001-26

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Public Notice CRTC 2001-26

  Ottawa, 12 February 2001
 

A policy to increase the availability to cable subscribers of specialty services in the minority official language

  This public notice provides further details and discusses certain amendments that the Commission must make to the Broadcasting Distribution Regulations in order to implement certain of the measures and recommendations related to distribution issues and put forward in the report to the Governor in Council released today (Public Notice CRTC 2001-25). This notice also concludes the process initiated in Public Notice CRTC 2000-38.
 

Introduction

  Following the publication of a proposed policy by the Commission to increase the availability of specialty services in the minority official language for cable subscribers (Public Notice CRTC 2000-38, 10 March 2000), the Governor in Council, on 5 April 2000, issued Order in Council P.C. 2000-511. The Order requested that the Commission, pursuant to the Broadcasting Act (the Act), take its initiative further.
  In Public Notice CRTC 2001-25 released today, the Commission announces the results of its consultations on the issues raised by the Governor in Council and on the proposed policy set out in PN CRTC 2000-38. PN CRTC 2001-25 also sets out the reasons underlying the Commission's determinations. The purpose of this public notice is to describe the steps that the Commission intends to follow to put these measures in place, and to provide the technical details and other information that the licensees of distribution undertakings will require in order to prepare for implementation of these measures.
  Several of the measures adopted by the Commission will require amendments to the Broadcasting Distribution Regulations (the regulations). Proposed amendments will be issued soon for public comment.
 

The way of the future: digital distribution

  As stated in its report, the Commission has adopted an approach that takes advantage of the implementation of digital distribution to ensure increased distribution of Canadian English- and French-language specialty services.
  The Commission notes that a bandwidth of 750 MHz nominal can accommodate 110 analog channels. In digital mode, with the current average compression ratio of 1:8, the same transmission capacity allows a distributor to provide about 77 analog channels and 200 to 250 digital video channels. This is in addition to digital audio channels and Internet service. A bandwidth of 550 MHz nominal can accommodate 77 analog channels. On average, distributors use 70 of these channels to distribute analog signals, which leaves enough bandwidth for them to provide about 30 to 50 digital video channels, plus digital audio channels and Internet service.
  The Commission's approach recognizes the difference between analog technology and the various levels of digital technology, and adjusts distribution requirements to suit the technology employed by the distributor.
 

Requirements of the new policy

 

Class 1 and Class 2 distribution undertakings

  The following requirements will apply to licensees of Class 1 and Class 2 undertakings that distribute programming services to their subscribers in digital mode.
  All Class 1 and Class 2 cable distributors using high-capacity digital technology (750 MHz nominal or more) will be required to offer all Canadian English- and French-language specialty services and at least one pay television service except Category 2 digital specialty services and pay-per-view television services. Individual services need only be offered once. If a service is offered on analog, it need not also be offered on digital.
  All Class 1 and Class 2 cable distributors using lower-capacity digital technology (less than 750 MHz nominal) will be required to offer at least one Canadian specialty service in the minority official language in either analog or digital mode for every 10 (Canadian or non-Canadian) programming services distributed in the majority official language.
  To determine the minimum number of Canadian specialty services in the minority official language that a licensee would be required to distribute, one service will be credited for each licensed programming service in the minority official language that the licensee distributes. These services will include all minority official language specialty services, discretionary services, educational services distributed outside their province of origin, and optional conventional television services. The services will exclude any minority official language programming services that are required to be distributed pursuant to section 17 of the regulations or section 9.(1)(h) of the Act.
  For purposes of determining the total number of programming services distributed, all special programming services and exempted services will be excluded. Pay television, pay-per-view and video-on-demand services operating in either official language will be credited as individual services, as will any other English- or French-language programming services that may be distributed by the licensee more than once on either analog or digital channels.
 

Class 3 distribution undertakings

  In its original policy proposal (PN 2000-38), the Commission acknowledged that there are some Class 3 cable licensees who are in the process of deploying digital capacity, and whose licensed areas include significant numbers of people who have a knowledge of the minority official language. It nonetheless proposed to exempt those undertakings from its general policy concerning the distribution of broadcasting services in minority communities.
  After weighing the above considerations and noting the pressing demands of many Francophone and Francophile interveners at the public consultations, the Commission has amended its original proposal for Class 3 undertakings. The new approach reflects the principles set out in the report. Although the Commission expects these undertakings to meet certain requirements, the approach makes allowance for their limited size.
  The following requirements will apply to licensees of Class 3 undertakings that distribute programming services to their subscribers in digital mode. The Commission intends to amend the regulations and the exemption order for small cable systems proposed in Public Notice CRTC 2000-162 so that they reflect these requirements.
  All Class 3 cable distributors using medium-capacity or high-capacity digital technology (550 MHz or more) will be required to distribute at least one Canadian specialty service in the minority official language for every 10 (Canadian or non-Canadian) programming services distributed in the majority official language.
  The same approach as that described in paragraph 10 above will be used to determine the minimum number of Canadian specialty services in the minority official language that a Class 3 licensee would be required to distribute.
  Furthermore, a Class 3 system which is fully interconnected to another system will be required to provide the same number of Canadian services in the minority official language as the system to which it is interconnected, unless it does not have the technical capacity to do so in spite of the interconnection.
  The same approach as that described in paragraph 11 above will be used for purposes of determining the total number of programming services distributed on a Class 3 undertaking.
 

Exemption from requirements

  Where circumstances warrant, for instance where a system's digital conversion lags behind that of other systems, the Commission would be prepared, on receipt of an application and following a public process, to grant the licensee a partial exemption from the above requirements. In such cases, the Commission would expect the licensee's application to indicate how it intends to otherwise serve its subscribers who have a knowledge of the minority official language. The Commission will consider requests for partial exemptions from all cable distributors regardless of the class of undertaking concerned.
 

Analog distribution

  The Commission considers that, in the short term, the majority of cable subscribers will continue to receive their programming services in analog mode. Given this fact, the Commission has decided not to permit any reduction in the number of Canadian French-language services distributed on analog channels in Anglophone markets.
  The Commission considers that it would be inconsistent with the goals of its policy if cable distributors serving communities where English is the majority official language could shift, to digital channels, Canadian French-language services that they currently carry on analog channels, thereby reserving their analog capacity for other purposes.
  Accordingly, the Commission will require the licensees of all Class 1 and Class 2 cable distribution undertakings operating in Anglophone markets, as that term is described in section 18 of the regulations, to ensure that the number of French-language services distributed on analog channels as of 10 March 2000 (PN 2000-38) is not reduced. The Commission emphasizes that this requirement applies only to the number of French-language services, and not to the nature of the services. This requirement applies whether or not the licensees have commenced the transition from analog to digital distribution.
 

Distribution of public television

  In its report the Commission determined that all distribution undertakings should be required to distribute at least one signal of each of the CBC's English- and French-language conventional television services. The Commission notes that Class 1 and 2 distribution undertakings and DTH distribution undertakings are already required to do so under the regulations.
  To implement the Commission's policy regarding the conventional television signals of the CBC, the Commission intends to amend section 32 of the regulations. This section prescribes the television programming services that Class 3 distribution undertakings are required to distribute on their basic service. A similar amendment will also be made to the exemption order for small cable systems proposed in PN CRTC 2000-162.
 

Multipoint distribution systems

  As noted in the report, the Commission does not intend to impose additional requirements on multipoint distribution systems (MDS). The Commission still considers that their limited capacity warrants special treatment. The Commission notes that its practice is to license MDS undertakings as Class 1 cable distribution undertakings. Accordingly, an amendment to the regulations will be required to reflect this policy approach for MDS.
  However, the Commission reiterates the expectation contained in its report to the Governor in Council that, as technology evolves and channel capacity increases, the licensees of MDS undertakings should offer more services. Moreover, when licensing or renewing the licences of MDS undertakings, the Commission intends to address issues related to the number of specialty services distributed in the minority official language.
 

Implementation

  As mentioned above, the Commission intends to implement its policy through amendments to the regulations. It expects to announce proposed amendments in the near future. It further expects the public proceeding pertaining to the proposed amendments to be completed in time for them to come into effect on 1 September 2001.
  Secretary General
  This document is available in alternate format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca
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