ARCHIVED -  Decision CRTC 97-622

Decision

Ottawa, 30 October 1997

Decision CRTC 97-622

Fundy Cable Ltd./Ltée

Change to licensed service area

1. Following Public Notice CRTC 1997-37 dated 16 April 1997, the Commission approves the application by Fundy Cable Ltd./Ltée (Fundy) to change the licensed area for the cable distribution undertaking serving the above-noted localities by extending service to the Keswick and Kingsclear areas, including the Kingsclear Indian Reserve, representing a total of 340 additional households.

2. This approval is subject to the requirement that construction in the extended area be completed and the extended system be in operation within twelve months of the date of this decision or, where the licensee applies to the Commission within this period, and satisfies the Commission that it cannot complete the construction and commence operations throughout the extended system before the expiry of this period and that an extension of time is in the public interest, within such further periods of time as are approved in writing by the Commission.

3. Should construction not be completed within the twelve-month period stipulated in this decision or, should the Commission refuse to approve an extension of time requested by the licensee, the authority granted shall lapse and become null and void upon expiry of the period of time granted herein or upon the termination of the last approved extension period.

4. The Commission notes that the area in question is included in the authorized service area of the radiocommunication distribution undertaking licensed to York Satellite T.V. Ltd. (York). In this regard, the Commission notes that it received a number of interventions opposing this application, including one from York.

5. York contended that if it were to lose part of its grade B area, it would have to cease its operations which would leave some subscribers who are not part of the extension proposed by Fundy without service. York also indicated that it had invested thousands of dollars to relocate its tower in order to deliver a better quality signal to the residents of the Kingsclear Indian Reserve. York further claimed that its basic package is superior and cheaper than that of the applicant. Finally, York requested that if this application were approved, guarantees should be required of Fundy to ensure that York customers continue to receive the same service at no additional cost, should York be forced to close.

6. In its response to York's intervention, Fundy indicated that it submitted its application following numerous requests from residents of the Keswick and Kingsclear areas. Fundy stated that these residents have also commented on the limited choice of programming services available from York, as well as on the poor quality of reception and lack of prompt service. Moreover, Fundy claimed that in submitting such an application, it was responding to the Government's policy on convergence and competition, and that even if its own application were denied, the fact remained that competition is inevitable, with the licensing of direct-to-home satellite distribution undertakings and the stated intention of telephone companies to offer broadcast distribution services.

7. After reviewing York's arguments and the applicant's response thereto, the Commission is satisfied that overall service to the public would not be adversely affected as a result of the approval of this application, and that approval is in the public interest. Moreover, such an approval is consistent with the approach taken by the Commission in similar circumstances in the past, based on its view that consumers should have increased choice among distributors of broadcasting and other services as expressed in its 19 May 1995 report entitled Competition and Culture on Canada's Information Highway. It is also consistent with the statement contained in Public Notice CRTC 1997-25 that overall service to the public should have a higher priority than the economic viability of any incumbents against whom the new entrant would compete.

8. The Commission notes that Fundy responded to other opposing interventions to the Commission's satisfaction. The Commission also acknowledges the numerous interventions received in support of the application.

This decision is to be appended to the licence.

Laura M. Talbot-Allan
Secretary General

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