ARCHIVED - Decision CRTC 96-697
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Ottawa, 21 October 1996
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Decision CRTC 96-697
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Vidéo Déry ltée
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La Baie (Ville de), Quebec - 952300200
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Licence amendment
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Following Public Notice CRTC 1995-223 dated 21 December 1995, the Commission approves the application by Vidéo Déry ltée for authority to add a distant head end in order to interconnect, via microwave, the cable distribution undertaking serving La Baie with the undertaking serving Chicoutimi, owned by Vidéotron ltée.
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The Commission notes that the Chicoutimi undertaking is a Class 1 system (6,000 or more subscribers), while the undertaking serving La Baie is regulated pursuant to Parts I and III of the Cable Television Regulations, 1986 (the regulations). The licensee has indicated that the proposed changes will increase the number of programming services available as part of the basic service of the smaller undertaking.
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In addition to the services required or authorized to be distributed pursuant to the applicable sections of the regulations, the licensee is authorized to distribute, as part of the basic service, CFCF-TV (CTV) and CFTU-TV (IND) Montréal, WVNY (ABC) and WCAX-TV (CBS) Burlington (Vermont), WPTZ (NBC) and WCFE-TV (PBS) Plattsburgh (New York), received via microwave.
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Further, the Commission approves the licensee's request with respect to section 23 of the regulations. Accordingly, the licensee is relieved, by condition of licence, of the requirement that it distribute at least four television programming services as provided for in section 23 of the regulations.
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The Commission received an intervention from Canadian Satellite Communications inc. (Cancom) submitting that the total savings in Cancom fees resulting from this interconnection should be passed on to the subscribers.
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The licensee indicated in its application that it will achieve savings of $0.77 per subscriber per month by receiving some of its signals by microwave ($0.98) rather than via satellite from Cancom ($1.75).
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In addition, the Commission notes that the licensee estimated the cost of the interconnection to be approximately $100,000. If its undertaking were rate-regulated and thus subject to subsection 18(6) of the regulations, the licensee could be allowed to increase its basic monthly fee by an amount based on those capital expenditures. The Commission has determined that, in the circumstances, the appropriate amount by which the licensee may offset its savings so as to compensate it for the interconnection costs is $0.10 per subscriber per month.
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After reviewing the information submitted by the licensee, the Commission considers that the licensee's savings, with respect to signal delivery, amount to $0.67 per subscriber per month.
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As a further offset to the cost savings related to the interconnection, the licensee also noted that, while it could charge $0.29 per subscriber per month, it currently distributes the signal of The Nashville Network (TNN) free of charge.
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Consequently, the Commission expects the licensee to reduce its basic monthly fee by an amount of $0.38 per subscriber per month. The Commission requires that the licensee submit, within three months following completion of the interconnection project, a report outlining how it has met the Commission's expectation.
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This decision is to be appended to the licence.
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Allan J. Darling
Secretary General |
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