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File No.: 8622-A124-201304907
Kevin Goldstein
Vice-President ‒ Regulatory Law
BCE Inc.
299 Queen Street West
Toronto, Ontario M5V 2Z5
Louma Haffar
Senior Advisor, Regulatory Affairs - Broadcasting
Québecor Média inc.
612 St-Jacques Street,
Montreal, Quebec H3C 4M8
Dear Madam/Sir:
Re: Final offer arbitration (FOA) between Astral Media Inc. (Astral) and Vidéotron s.e.n.c. (Vidéotron)
On 5 July 2013, the Commission received a letter from BCE Inc. (BCE) stating that it was withdrawing Astral’s request for dispute resolution as well as the final offer submitted in this proceeding.
In its letter, BCE noted that it had only acquired the control of the specialty television services in question on 5 July 2013. BCE had thus not taken part in any previous commercial negotiations with Vidéotron nor had it initiated the dispute resolution process. Accordingly, BCE submitted that it would be unfair for it to be bound by a process that it did not initiate or have the opportunity to participate in. BCE also expressed its intention to begin negotiations immediately with Vidéotron, and that it was optimistic that an agreement could be concluded this summer.
In a letter dated 5 July 2013, Québecor Media inc. (Québecor), on behalf of Vidéotron, opposed BCE’s unilateral withdrawal of the request for FOA. According to Québecor, BCE’s arguments not valid since BCE acquired the shares of Astral, and it therefore takes the file as is, since the applicant’s legal personality remains the same. Further, Québecor submitted that the FOA process is public, and that BCE was informed of the potential impact that the process could have on the value of said services. According to Québecor, BCE could have informed the Commission that it had concerns about the process or indicated to the Commission its interest in making representations in the proceeding. Québecor noted that the dispute must be settled as quickly as possible to end the corporate uncertainty that Vidéotron has been experiencing. It encouraged BCE to resume negotiations and make a new offer so that the parties can settle the dispute before the Commission issues its final determination.
In its reply of 9 July 2013, BCE submitted that a negotiated settlement is preferable, and reiterated that the unique circumstances, public interest and the fundamental principles of procedural fairness favour the withdrawal of the request for dispute resolution and of the final offer.
Further, in a letter dated 5 July 2013, Pierre Boivin, the trustee responsible for four services that are subject to the dispute and which will be divested by BCE (Historia, Séries+, MusiquePlus and MusiMax), asked the Commission to suspend the process for a period of time that would allow him to study and gain an understanding of the current situation and of the measures that must be taken in his capacity as trustee. On 9 July 2013, Québecor opposed Mr. Boivin's request. Québecor submitted that any intervention by the trustee, Mr. Boivin, will not have an impact on the present proceeding, since it is a bilateral proceeding, the outcome of which is imminent.
The Commission notes that to date the parties and the Commission have invested significantly in resolving this dispute. The Commission also notes that the affiliation agreements for the services at issue have been expired since December 2012, and that it is important for this dispute be resolved quickly. The Commission notes, however, that both BCE and Vidéotron have expressed a willingness to negotiate.
In light of the foregoing, the Commission considers that the public interest would best be served if the FOA process were suspended until 30 July 2013 to allow the negotiations to take place. If the parties have not come to an agreement by the expiry of this deadline, the Commission will issue a determination relating to the BCE’s request to withdraw the application for FOA.
Original signed by Jim Stefanik for
John Traversy
Secretary General
c.c. Pierre Boivin, Claridge Inc., PBoivin@claridgeinc.com
Johanne Saint Laurent, Les Chaînes Télé Astral, jsaint-laurent@astral.com
Dany Meloul, Les Chaînes Télé Astral, dmeloul@astral.com
Manon Brouillette, Vidéotron, manon.brouillette@videotron.com
Laurence J.E. Dunbar, Fasken Martineau, ldunbar@fasken.com
Peggy Tabet, Québecor, Tabet.Peggy@Quebecor.com
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