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Broadcasting Decision CRTC 2006-462
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Ottawa, 31 August 2006
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Cogeco Cable Québec Inc.
Alma, Baie-Comeau, Drummondville, Louiseville, Magog, Rimouski, Sainte-Adèle, Saint-Georges-de-Beauce, Saint-Hyacinthe, Sept-Îles, Thetford Mines, Trois-Rivières, Valleyfield, and surrounding areas, Quebec
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Application 2005-1579-4
Public Hearing at Edmonton, Alberta
19 June 2006
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Class 1 regional licence for broadcasting distribution undertakings in Quebec
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The Commission approves the application by Cogeco Cable Québec Inc. for a Class 1 regional broadcasting licence to operate cable distribution undertakings serving the above-noted locations.
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The application
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1.
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The Commission received an application by Cogeco Cable Québec Inc. (Cogeco)for a Class 1 regional broadcasting licence to operate the cable broadcasting distribution undertakings (BDUs) serving the above-noted locations. Cogeco currently operates these BDUs under separate Class 1 licences, with the exception of the Louiseville BDU, which it operates under a Class 3 licence. The licences for these undertakings expire 31 August 2006. The applicant requested that its Louiseville BDU be included under the Class 1 regional licence because the undertaking now has over 6,000 subscribers.
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2.
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In its application, Cogeco proposed to add a condition of licence permitting it to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal on the basic service of all the Class 1 undertakings that it operates, with the exception of its undertakings in Sainte-Adèle, Saint-Hyacinthe and Valleyfield, for which CFTU-TV is an extra-regional signal and must be distributed in accordance with section 17(1) of the Broadcasting Distribution Regulations (the Regulations).
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3.
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Cogeco proposed to amend the condition of licence relating to the use of 25% of its local availabilities for the promotion of its discretionary programming services to allow the promotion of non-programming services, such as Internet access and local telephone service.1
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4.
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The applicant also requested a condition of licence permitting it to distribute, on a digital discretionary basis, a second set of signals that provides the programming of the four U.S. commercial networks (CBS, NBC, ABC and FOX) and of the non-commercial PBS network, as well as the Canadian television services whose distribution is provided for in the List of Part 3 Eligible Satellite Services.2
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5.
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For its BDU serving Drummondville, Cogeco requested that it be relieved, by condition of licence, of the requirement under section 17(2) of theRegulations to distribute the local signal of CKTM-TV (CBC) Trois-Rivières on the basic band. In its place, the licensee would distribute, on channel 13, the local signal of CKSH-TV (CBC) Sherbrooke.
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6.
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For its BDU serving Louiseville, Cogeco proposed to add a condition of licence permitting it to distribute, on a discretionary basis, the programming service of the extra-regional station CKMI-TV (Global) Québec.
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Interventions
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7.
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The Commission received interventions concerning Cogeco's application. Some expressed concerns, but did not oppose the application. The issues raised in these interventions are addressed below.
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Local programming
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8.
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The Fédération des télévisions communautaires autonomes du Québec (FTCAQ) explained that it does not oppose issuing a regional licence to Cogeco as long as the applicant demonstrates to the Commission that it will make every effort with respect to the development of local programming and access, in compliance with Policy framework for community-based media,Broadcasting Public Notice CRTC 2002-61, 10 October 2002 (Public Notice 2002-61), and the Regulations. The FTCAQ added that its members would like the Commission to reaffirm that local programming takes precedence over programming produced outside the service area.
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9.
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In its response to the FTCAQ, Cogeco explained that if it had to satisfy the Commission's local and access programming requirements separately in each of its service areas, it would have no choice but to abandon TVCogeco and withdraw its community channel in the Class 2 or Class 3 service areas. Cogeco then requested the Commission's permission to amend its application in order to include new conditions of licence dividing the authorized service areas into 12 zones for community programming purposes.
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10.
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In a letter dated 8 June 2006, the Commission denied the request to include in this application the amendment requested by Cogeco in its reply, and informed Cogeco that paragraphs 17 to 27 and 45, as well as Appendix 1, of its reply would not be considered by the Commission in its deliberations. The Commission advised Cogeco that it could submit a separate application seeking amendments to its conditions of licence. Cogeco's new application for amendment was the subject of Broadcasting Public Notice CRTC 2006-83, 7 July 2006 (Public Notice 2006-83). The Commission's decision on that public proceeding will be issued shortly.
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Keeping broadcast opportunities and time slots available
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11.
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In their interventions, the FTCAQ, Télévision communautaire de la région de l'Amiante (TVCRA) and Télévision communautaire de la Vallée de la Matapédia asked the Commission to direct Cogeco to continue offering the local broadcast opportunities that have previously been made available to them. The interveners also asked that Cogeco provide appropriate time slots, particularly during peak viewing time, so that they can broadcast the programs they produce.
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12.
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In response to the interveners, Cogeco stated that it had no regulatory obligation to provide broadcast opportunities, but that it was in favour of doing so. Cogeco also confirmed that it would continue to offer these broadcast opportunities in order to allow local community television corporations to manage programming locally.
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13.
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Cogeco also stated that it will continue setting aside attractive and regular time slots for programming produced by local community television corporations, as long as the programming is of high quality and relevant.
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Commission's determination
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14.
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The Commission notes that in Cable television community channel standards, Public Notice CRTC 1992-39, 1 June 1992, it accepted a set of standards submitted by the Canadian Cable Television Association. These standards were reiterated in Public Notice 2002-61 and specifically stipulate that interested groups or individuals within the community served must, wherever possible, have access to the community channel and to the cable undertaking's facilities. It is up to the cable undertaking to determine who will have access in order to ensure balanced programming and satisfy the regulatory requirements concerning local and access programming in community television.
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15.
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With respect to time slots, the Commission notes that, according to Public Notice 2002-61, access programming should be scheduled in a reasonable manner throughout the broadcast day, including the peak viewing period (7:00 p.m. to 11:00 p.m.).
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16.
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Accordingly, the Commission is satisfied with the applicant's commitments to keep broadcast opportunities available for local community television corporations so that they can manage programming locally, and to provide attractive and regular time slots for the programming they produce.
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Community television funding
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17.
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TVCRA, Télévision communautaire de la Vallée de la Matapédia and Télévision communautaire de la Mitis (TVM), supported by the FTCAQ, asked the Commission to direct Cogeco to assist in funding the local and access programming they produce. TVCRA, TVM and the FTCAQ also wished to see the applicant's funding allocated more equitably because, in their view, there appears to be an imbalance between the funding allocated to them and the programming they produce and broadcast, on the TVCogeco Thetford Mines and Saint-Georges-de-Beauce community channel in TVCRA's case, and on the Rimouski community channel in TVM's case.
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18.
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In response to the issues raised by these interveners, Cogeco stated that, when a local community television corporation has access to the TVCogeco channel to broadcast its programming, there cannot be a direct relationship between the percentage of air time given to the corporation and the amount of funding provided by Cogeco. TVCogeco agrees to air the local corporation's programming, but it must also set aside airtime and funding for other groups entitled to access. TVCogeco also produces a high percentage of local programming, programs that are often more expensive for it to produce (such as major local shows, live municipal debates, Christmas charity drives, and telethons for local agencies).
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19.
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Cogeco noted that the amounts paid directly to local community television corporations generally range from $5,000 to $20,000. According to Cogeco, the corporations have many more lucrative sources of funding, such as government grants and advertising, membership drives, bingo, benefits events, and the employment assistance program.
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20.
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Finally, Cogeco indicated that it will provide local community television corporations operating in its territory with free technical support representing several thousand dollars per year, whether for updating broadcast opportunities, production control room wiring, equipment loans, loans from the television archives, camera calibration, training or technical expertise.
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21.
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Consequently, the applicant was of the view that it had found a fair balance between funding and support for access programming produced by local community television corporations and funding for programming produced by Cogeco and broadcast on TVCogeco.
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Commission's determination
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22.
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As stipulated in section 29 of the Regulations, except as otherwise provided by a condition of its licence, a Class 1 BDU with fewer than 20,000 subscribers distributing its own community programming on the community channel must make, in each broadcast year, a contribution of not less than 5% of its gross revenues derived from broadcasting activities in the year to Canadian programming, less any contribution to local expression made by the licensee in that year. Consequently, because Cogeco operates a community channel, in order to reflect its contribution to local expression, it may deduct an amount equal to no more than 5% of its gross revenues derived from broadcasting activities, for each undertaking serving a licensed area with fewer than 20,000 subscribers. Pursuant to section 29(2) of the Regulations, any portion of that 5% not devoted to local expression must be paid into a production fund.
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23.
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Class 1 BDUs serving licensed areas with over 20,000 subscribers and distributing their own community programming on the community channel must make, in each broadcast year, contributions to Canadian programming not less than the greater of: a) 5% of the gross revenues derived from broadcasting activities in each licensed area in the year, less any contribution to local expression made by the licensee in that year; and b) 3% of the gross revenues derived from broadcasting activities in each licensed area in that year. The contributions to Canadian programming must be paid to a production fund pursuant to subsection 29(2) of the Regulations.
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24.
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As set out in paragraph 9 of this decision, Cogeco proposed a new approach to community programming and requested an amendment to its licences permitting it to establish 12 community programming zones that would be considered licensed areas for the purposes of sections 27, 27.1, 28, 29 and 35 of the Regulations. This application was the subject of Public Notice 2006-83. The Commission's decision pursuant to that public proceeding will be issued shortly.
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Other Commission decisions
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Request by the applicant to include its Louiseville cable distribution undertaking in its Class 1 regional licence
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25.
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The Commission notes that this undertaking is currently operated under a Class 3 licence. Given that the undertaking is currently serving over 6,000 subscribers (6,402 as at 31 August 2005), the Commission approves Cogeco's request to include the Louiseville undertaking in the Class 1 regional licence.
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Distribution of CFTU-TV Montréal
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26.
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The Commission approves, by condition of licence, the applicant's request to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal on the basic service of all the Class 1 undertakings that it operates, with the exception of its undertakings in Sainte-Adèle, Saint-Hyacinthe and Valleyfield, for which CFTU-TV is an extra-regional signal and must be distributed in accordance with section 17(1) of the Regulations.
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27.
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The Commission considers that the distribution of CFTU-TV on the basic service will expand the range of French-language programming services offered to subscribers.
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Request to be relieved of the requirement under section 17(2) of the Regulations
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28.
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The Commission notes that section 17(1) of the Regulations sets out the order of priority in which television programming services are to be distributed as part of the basic service of Class 1 and Class 2 BDUs. Subsection 17(2) of the Regulations stipulates that these services are to be distributed beginning with the basic band.
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29.
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The Commission approves, by condition of licence, the applicant's request to be relieved of the requirement under subsection 17(2) of the Regulations to distribute the local signal of CKTM-TV (CBC) Trois-Rivières on the basic band of its Drummondville BDU. The Commission notes that the licensee will continue to distribute the signal of CKSH-TV (CBC) Sherbrooke on channel 13.
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Distribution of CKMI-TV (Global) Québec
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30.
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The Commission approves Cogeco's request to distribute CKMI-TV (Global) Québec on a discretionary basis on the BDU serving Louiseville.
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Other conditions of licence
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31.
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The Commission notes that the applicant also proposed to add other conditions of licence for its Class 1 BDUs. The Commission did not receive any interventions concerning these proposals. A complete list of the conditions of licence imposed by the Commission is appended to this decision.
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New regional licence
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32.
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The Commission approves the application by Cogeco Cable Québec Inc. for a Class 1 regional broadcasting licence to operate the BDUs serving the locations noted below. Subject to the requirements of this decision, the Commission will issue a regional broadcasting licence to operate the Class 1 cable BDUs to serve the following licensed areas: Alma, Baie-Comeau, Drummondville, Louiseville, Magog, Rimouski, Sainte-Adèle, Saint-Georges-de-Beauce, Saint-Hyacinthe, Sept-Îles, Thetford Mines, Trois-Rivières and Valleyfield. These undertakings will be regulated pursuant to the Broadcasting Distribution Regulations. The licence will come into effect on 1 September 2006 and will expire on 31 August 2013. The licence will be subject to the conditions specified therein, as well as to the conditions set out in the appendix to this decision.
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Employment equity
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33.
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Because this applicant is subject to the Employment Equity Act and files reports concerning employment equity with the Department of Human Resources and Skills Development, its employment equity practices are not examined by the Commission.
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Secretary General
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This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined in PDF format or in HTML at the following Internet site: www.crtc.gc.ca
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Appendix to Broadcasting Decision CRTC 2006-462
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Conditions of licence applicable to all licensed areas
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1. The licensee may, at its option, insert certain promotional material as a substitute for the "local availabilities" (i.e., non-Canadian advertising material) of non-Canadian satellite services. At least 75% of these local availabilities must be made available for use by licensed Canadian programming services for the promotion of their respective services, for the promotion of the community channel and for unpaid Canadian public service announcements. A maximum of 25% of the local availabilities may be used to provide subscribers with information regarding customer service and channel realignments, and for the promotion of discretionary programming services and packages, cable FM service, additional cable outlets and non-programming services, including Internet and telephone services.
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2. The licensee is authorized to distribute the following signals on a digital discretionary basis:
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- any of the distant Canadian television signals set out in the List of Part 3 eligible satellite services; and
- a second set of signals that provides the programming of the four U.S. commercial networks (CBS, NBC, ABC, FOX) and the non-commercial PBS network (hereafter referred to as the U.S. 4+1 signals).
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The distribution on a discretionary basis on the licensee's digital service of a second set of U.S. 4+1 signals and distant Canadian signals is subject to the provision that, with respect to such signals, the licensee adhere to the requirements regarding non-simultaneous program deletion set out in section 43 of the Broadcasting Distribution Regulations. The Commission may suspend the application of this provision, with respect to the signals to be distributed, upon its approval of an executed agreement between the licensee and broadcasters. Such an agreement must deal with issues related to the protection of program rights arising in connection with the discretionary carriage of a second set of U.S. 4+1 signals and distant Canadian signals solely on the licensee's digital service.
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The Commission reminds the licensee that the requirements set out in section 30 of the Broadcasting Distribution Regulations regarding simultaneous substitution apply also in the case of U.S. 4+1 signals and distant Canadian signals.
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Conditions of licence applicable to specific licensed areas
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Alma
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3. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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4. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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5. The licensee is authorized to distribute, at its option, the programming service of the distant station CFCF-TV (CTV) Montréal, as part of the basic service.
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Baie-Comeau
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6. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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7. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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8. The licensee is authorized to distribute, at its option, the programming service of the distant station CFCF-TV (CTV) Montréal, as part of the basic service.
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Drummondville
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9. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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10. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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11. The licensee is relieved from the requirement set out in section 17(2) of the Broadcasting Distribution Regulations to distribute the regional signal of CBFT (CBC) Montréal on the basic band. The licensee will distribute this signal on channel 15.
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12. The licensee is relieved from the requirement set out in section 17(2) of the Broadcasting Distribution Regulations to distribute the local signal of CKTM-TV (CBC) Trois-Rivières on the basic band. The licensee will instead distribute the local signal of CKSH-TV (CBC) Sherbrooke on channel 13.
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13. The licensee is relieved from the requirement set out in section 25(b) of the Broadcasting Distribution Regulations to distribute the signal of CKSH-TV (CBC) Sherbrooke on an unrestricted channel. Should the quality of the signal deteriorate significantly, the licensee shall immediately undertake any necessary corrective action, including the distribution of the service on another channel.
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Louiseville
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14. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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15. The licensee is authorized to distribute, at its option, WCFE-TV (PBS) Plattsburgh, New York and WETK-TV (PBS) Burlington, Vermont. One service is to be distributed as part of the basic service and the other on a discretionary tier.
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16. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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17. The licensee is authorized to distribute the programming service of the extra-regional station CKMI-TV (Global) Québec on a discretionary tier.
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Magog
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18. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) Plattsburgh, New York, WETK-TV (PBS), WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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19. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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20. The licensee is relieved from the requirement set out in section 17(2) of the Broadcasting Distribution Regulations to distribute the extra-regional signal of CBFT (CBC) Montréal on the basic band. The licensee will distribute this signal on channel 16.
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Rimouski
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21. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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22. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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23. The licensee is authorized to distribute, at its option, the programming service of the distant station CFCF-TV (CTV) Montréal, as part of the basic service.
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24. The licensee is relieved from the requirement set out in section 17(1) of the Broadcasting Distribution Regulations to distribute CJPC-TV (TQS) Rimouski in service areas 2 (Matane) and 5 (Sainte-Anne-des-Monts). The licensee will instead distribute CFJP-TV (TQS) Montréal received via satellite.
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Sainte-Adèle
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25. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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26. The licensee is authorized to distribute, at its option, WCFE-TV (PBS) Plattsburgh, New York and WETK-TV (PBS) Burlington, Vermont. One service is to be distributed as part of the basic service and the other on a discretionary tier.
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27. The licensee is relieved from the requirement set out in section 25(b) of the Broadcasting Distribution Regulations to distribute the signals of CFTM-TV (TVA) and CFCF-TV (CTV) Montréal on unrestricted channels. Should the quality of the signals deteriorate significantly, the licensee shall immediately undertake any necessary corrective action, including the distribution of the services on other channels.
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Saint-Georges-de-Beauce
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28. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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29. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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30. The licensee is authorized to distribute, at its option, the programming service of the distant station CFCF-TV (CTV) Montréal, as part of the basic service.
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Saint-Hyacinthe
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31. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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32. The licensee is relieved from the requirement set out in section 25(b) of the Broadcasting Distribution Regulations to distribute the signals of CFTM-TV (TVA), CFCF-TV (CTV) and CBFT (CBC) Montréal on unrestricted channels. Should the quality of the signals deteriorate significantly, the licensee shall immediately undertake any necessary corrective action, including the distribution of the services on other channels.
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Sept-Îles
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33. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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34. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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35. The licensee is authorized to distribute, at its option, the programming service of the distant station CFCF-TV (CTV) Montréal, as part of the basic service.
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Thetford Mines
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36. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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37. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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38. The licensee is authorized to distribute, at its option, the programming service of the distant station CFCF-TV (CTV) Montréal, as part of the basic service.
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39. The licensee is relieved from the requirement set out in section 22(1)a) of the Broadcasting Distribution Regulations to distribute the local audio programming services of CKLD-FM, CBMC-FM and CBV-8-FM Thetford Mines and CJLP Disraëli.
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Trois-Rivières
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40. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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41. The licensee is authorized to distribute, at its option, the programming service of the distant station CFTU-TV (Canal Savoir) Montréal, as part of the basic service.
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42. The licensee is authorized to distribute the programming service of the extra-regional station CKMI-TV (Global) Québec on a discretionary tier.
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Valleyfield
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43. The licensee is authorized to distribute, at its option, WVNY (ABC) Burlington, Vermont, WPTZ (NBC) Plattsburgh, New York, and WCAX-TV (CBS) and WFFF-TV (FOX) Burlington, Vermont, as part of the basic service.
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44. The licensee is authorized to distribute, at its option, WCFE-TV (PBS) Plattsburgh, New York and WETK-TV (PBS) Burlington, Vermont, as part of the basic service.
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45. The licensee is relieved from the requirement set out in section 25(b) of the Broadcasting Distribution Regulations to distribute the signals of CFTM-TV (TVA), CBFT (CBC), CBMT (CBC) and CFCF-TV (CTV) Montréal and CJOH-TV-8 (CTV) Ottawa on unrestricted channels. Should the quality of the signals deteriorate significantly, the licensee shall immediately undertake any necessary corrective action, including the distribution of the services on other channels.
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Footnotes:
[] The Commission notes that the applicant requested the same licence amendment relating to the use of local availabilities for its Quebec and Ontario BDUs. In Licence amendment to replace condition of licence relating to the use of local availabilities in non-Canadian satellite services,Broadcasting Decision CRTC 2006-364, 14 August 2006, the Commission approved Cogeco's application and amended the condition of licence for its Quebec and Ontario Class 1, Class 2 and Class 3 BDUs accordingly. The Commission further notes that this decision took into account the comments made by the Canadian Association of Broadcasters. This new condition of licence is set out in the appendix to this decision.
[] The Commission notes that in a separate application pertaining to its Quebec BDUs, the applicant also requested permission to add a second set of U.S. 4+1 and distant Canadian signals. In Distribution of additional signals on a discretionary digital basis,Broadcasting Decision CRTC 2006-386, 22 August 2006, the Commission approved Cogeco's request to distribute, on a discretionary basis, a second set of U.S. 4+1 signals and any distant Canadian signals appearing on the List of Part 3 Eligible Satellite Services. This condition of licence is set out in the appendix to this decision.
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Date Modified: 2006-08-31
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