ARCHIVED - Broadcasting - Commission Letter - Quebecor Media Inc.

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Ottawa, 19 September 2003

Mr. Edouard G. Trépanier
Vice-President, Regulatory Affairs
Quebecor Media Inc.
Champ de Mars Building
300 Viger Avenue East
Montreal, Quebec
H2X 3W4
Fax: (514) 380-4664

Dear Mr. Trépanier:

Re: Deregulation applications - Lifting of Suspension
CF Câble TV inc. - Montréal
Vidéotron ltée - Saguenay (formerly, Chicoutimi) and Sherbrooke

On 22 April 2002, Vidéotron ltée and affiliates (Vidéotron) filed proposals to deregulate basic rates for the above-noted cable systems, pursuant to section 47 of the Broadcasting Distribution Regulations (the Regulations). On 28 June 2002, Vidéotron provided the Commission with the required declaration attesting to the fact that it had notified subscribers of its proposals.

By letter dated 16 August 2002, the Commission suspended Vidéotron's proposals, pursuant to section 47(3) of the Regulations, pending the receipt of additional information as set out in the Appendix to that letter. The additional information requested by the Commission included details of a special offer made by Vidéotron under the corporate name of CF Câble and an opinion from its auditor regarding the method of counting subscribers living in multiple-unit dwellings and multiple-resident dwellings.

By letter dated 6 September 2002, Vidéotron provided further information, including an opinion from its auditors regarding the method of counting subscribers living in multiple-unit dwellings and

multiple-resident dwellings. In their opinion, the auditors stated, among other things, that the definition of "subscriber" used in calculating the relevant subscriber numbers was that set out in the Regulations.

On 14 March 2003, the Commission addressed a further letter to Vidéotron, requesting that Vidéotron provide further information as follows:

a) directives given by Vidéotron to its auditors with respect to the preparation of the report on subscriber numbers;

b) the audit plan or other documents explaining the procedure followed by the auditors in developing their opinion on subscriber numbers; and

c) an assurance from the auditors that none of the subscribers who accepted the CF Câble offer were treated as lost subscribers simply by virtue of having accepted that offer.

Vidéotron responded to the Commission's letter on 2 May 2003, providing further information and a letter from its auditors stating, among other things, that none of the subscribers who had accepted the CF Câble offer had been considered in the subscriber count calculations.

Based on the information filed by Vidéotron, and in particular, on the auditors' report filed by Vidéotron with its application of 22 April 2002 and on subsequent assurances provided by the auditors, the Commission is satisfied that the deregulation proposals at issue meet the requirements set out in section 47 of the Regulations. Accordingly, the Commission lifts the suspension of the applications in question, with the result that the proposed rate deregulation of basic service for the three systems in question is allowed.


Diane Rhéaume
Secretary General

c.c. Les chaînes Télé Astral

Date Modified: 2003-09-19

Date modified: