ARCHIVED - Broadcasting Notice of Public Hearing CRTC 2002-3

Broadcasting Notice of Public Hearing CRTC 2002-3

Ottawa, 19 March 2002

The Commission will hold a public hearing commencing on 23 April 2002 at 9:30 a.m., at the Conference Centre, Portage IV, 140 Promenade du Portage, Gatineau, Quebec, to consider the matter described below.

Background

On 14 February 2002, the Commission received a complaint from Cable VDN Inc. (Cable VDN) alleging, inter alia, that Vidéotron ltée and its subsidiaries, CF Cable TV Inc., Videotron (Regional) Ltd., Vidéotron (RDL) ltée and Télé-Câble Charlevoix (1977) inc. (together referred to as "Vidéotron and its subsidiaries") have breached Sections 9 and 10 of the Broadcasting Distribution Regulations (the Regulations).

Cable VDN attached a letter that it had received from Câblage QMI inc. (CQMI), dated 12 February 2002. This letter informed Cable VDN that Vidéotron and its subsidiaries had sold all of their inside wire in multiple unit dwellings with more than 20 residential units to CQMI. CQMI advised Cable VDN that, as of 8 February 2002, Cable VDN would not be permitted to connect customers to CQMI's inside wire until it signed an agreement with CQMI. Under this agreement, among other things, Cable VDN would be required to pay CQMI a lease fee of $5.00 per unit per month in addition to a $35 transaction fee for each request.

Cable VDN reported that it could no longer obtain access to the inside wire that was formerly owned by Vidéotron. Although Vidéotron was still disconnecting customers within 24 hours of a request by Cable VDN, CQMI was refusing to allow Cable VDN to reconnect customers to the inside wire.

Bell ExpressVu Limited Partnership (ExpressVu) and Look Communications Inc. (Look) received identical letters from CQMI and filed complaints with the Commission on 18 and 19 February, respectively, also alleging, inter alia, a breach by Vidéotron of sections 9 and 10 of the Regulations.

Section 9 of the Regulations requires a licensee not to give an undue preference to any person, including itself, or subject any person to an undue disadvantage.

Section 10 imposes certain obligations on a licensee that owns an inside wire, and requires the licensee to permit the inside wire to be used by, amongst others, a subscriber and another licensee.

Section 10 also provides that the licensee that owns an inside wire may charge a just and reasonable fee for the use of the wire.

The Commission also notes that broadcasting distribution undertakings, such as Vidéotron and its subsidiaries, are subject to the following condition of licence:

1. Except as authorized by the Commission, the broadcasting undertaking licensed hereby shall be operated in fact by the licensee itself. The licence cannot be transferred or assigned.

Further information concerning the exchange of correspondence may be found in the public record of this proceeding, which also includes the file of the CRTC Interconnection Steering Committee (CISC) working group responsible for inside wire. Interested parties should note that additional documents may be added to the public file.

Issues

The Commission hereby advises that it will wish to explore the following issues:

1. The matters raised in the complaints filed with the Commission by Cable VDN, ExpressVu and Look;

2. Whether, by selling the inside wire in the manner that they did, Vidéotron and its subsidiaries have avoided their regulatory responsibilities as licensees;

3. Whether in the circumstances of the sale of the inside wire by Vidéotron and its subsidiaries, companies ultimately controlled by Quebecor Media Inc., to CQMI, a company that is also ultimately controlled by Quebecor Media Inc., Vidéotron and its subsidiaries have:

a) Given themselves an undue preference or caused an undue disadvantage to the complaining parties, contrary to section 9 of the Regulations;

b) Breached section 10 of the Regulations by not permitting other licensees to use the inside wire for a just and reasonable fee;

) Breached the condition of licence referred to above requiring the broadcasting distribution undertaking to be operated by a licensee itself.

Mandatory Order

Therefore, pursuant to section 12 of the Broadcasting Act, the Commission calls the following persons, namely:

· Vidéotron ltée
· CF Cable TV Inc.
· Videotron (Regional) Ltd.
· Vidéotron (RDL) ltée
· Télé-Câble Charlevoix (1977) inc.

to the public hearing to inquire into, hear and determine whether a mandatory order should be issued requiring the persons noted above, or any of them, to comply with sections 9 and 10 of the Regulations, as well as the condition of licence requiring the broadcasting distribution undertaking to be operated by the licensee itself.

The Commission expects representatives from companies that control the persons noted above, or are affiliated with them, including Câblage QMI Inc., to attend the hearing.

The persons noted above are expected to show cause at this hearing why a mandatory order requiring them to comply with sections 9 and 10 of the Regulations, as well as the condition of licence requiring the broadcasting undertaking to be operated by the licensee itself, should not be issued.

PUBLIC PARTICIPATION

DEADLINE FOR SUBMISSIONS

05 April 2002

The submissions must be received by the CRTC and by Vidéotron and its subsidiaries, at the address noted below, ON OR BEFORE the above-mentioned date. The Commission cannot be held responsible for postal delays.

Your submission will be considered by the Commission, and will form part of the public record of the proceeding without further notification to you, provided the procedure set out below has been followed. You will be contacted only if your submission raises procedural questions.

Submit your written submission to the Secretary General of the Commission in ONLY ONE of the following formats:

BY ELECTRONIC MAIL TO
procedure@crtc.gc.ca

OR

BY MAIL AT
CRTC, Ottawa, Ontario, K1A 0N2

OR

BY FAX TO THE
Secretary General - (819) 994-0218

A true copy MUST be sent to Vidéotron and its subsidiaries and proof that this has been done must accompany the submission sent to the Commission.

Where the submission is filed by electronic means, the line ***End of document*** should be entered following the last paragraph of the document, as an indication that the document has not been damaged during electronic transmission.

Please note, that only the documents electronically filed will be available on the Commission's web site. You will be able to access these documents by indicating the public notice or the notice of public hearing number.

Each paragraph of the document should be numbered.

If you wish to appear, you must provide reasons why your written comments are not sufficient and why an appearance is necessary.

In exceptional circumstances, the Commission may allow a party to present its submission by teleconference. At the time of filing its submission, the party must clearly indicate why the Commission should grant such a request.

Persons requiring communications support such as assistive listening devices and sign language interpretation are requested to inform the commission at least twenty (20) days before the commencement of the public hearing so that the necessary arrangements can be made.

EXAMINATION OF DOCUMENTS DURING NORMAL OFFICE HOURS

Documents are available at the local address provided in this notice and at the Commission offices and documentation centres directly involved with these complaints or, upon request, within 48 hours, at any other CRTC offices and documentation centres.

Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room G-5
Hull, Quebec K1A 0N2
Tel: (819) 997-2429 - TDD: 994-0423
FAX: (819) 994-0218

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

405 de Maisonneuve Blvd. East
2^nd Floor, Suite B2300
Montréal, Quebec H2L 4J5
Tel: (514) 283-6607 - TDD: 283-8316
FAX: (514) 283-3689

55 St. Clair Avenue East, Suite 624
Toronto, Ontario M4T 1M2
Tel: (416) 952-9096
FAX: (416) 954-6343

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

Cornwall Professional Building
2125 - 11^th Avenue, Room 103
Regina, Saskatchewan S4P 3X3
Tel: (306) 780-3422
FAX: (306) 780-3319

10405 Jasper Avenue, Suite 520
Edmonton, Alberta T5J 3N4
Tel: (780) 495-3224
FAX: (780) 495-3214

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

Address for service of documents upon Vidéotron

Vidéotron ltée.
300, Avenue Viger Est
Montreal, Quebec H2X 3W4
FAX: (514) 380-4664

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

Secretary General