ARCHIVED - Decision CRTC 2001-777

Decision CRTC 2001-777

Ottawa, 21 December 2001

Ms. Pamela Dinsmore
Vice-President, Regulatory
333 Bloor Street East
Toronto, Ontario
M4W 1G9

Dear Ms. Dinsmore:

Re: Application No. 2001-1421-5- Suspension of Provision of Approval as Outlined in Decision CRTC 2000-437 Upon Agreement between Rogers Cable Inc. and the Canadian Association of Broadcasters

The Commission acknowledges receipt of a letter by Rogers Cable Inc. (Rogers) filed on December 12, 2001 indicating that on December 11, 2001, the company reached a comprehensive agreement with the Canadian Association of Broadcasters (CAB). Rogers provided a copy of the agreement with its letter. The CAB also filed a letter with the Commission dated December 13, 2001 acknowledging that an agreement had been reached with Rogers. Rogers asked that the Commission suspend the provision of approval as provided for in Decision 2000-437.

Prior to Receipt of the Rogers-CAB Agreement:

In Decision CRTC 2000-437, the Commission approved applications by Rogers Cable Inc. and certain other cable distribution undertakings to distribute the following services on a digital basis:

• Any of the Canadian signals listed on the Commission's list of Part 3 eligible satellite services. This list included a wide range of Canadian television stations;
  
• A second set of signals affiliated to each of the four U.S. commercial networks and to the non-commercial PBS network (these systems carry a first set of such signals on an analog basis.)

Paragraph 22 of the above decision includes a provision of approval designed to protect the program rights acquired by local broadcasters. The provision of approval is as follows:

The distribution on a discretionary basis on the licensee's digital service of a second set of U.S. 4+1 signals (that is, a set of U.S. 4+1 signals in addition to the set of such signals already carried by the system) and Canadian distant 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 regulations).

The same paragraph from the decision states that the Commission may suspend the application of this provision upon its approval of an executed agreement between the licensee and broadcaster. 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 Canadian distant signals solely on the applicant's digital service, as approved in Decision CRTC 2000-437.

Summary of the Agreement:

According to the information provided by Rogers, the agreement between Rogers and the CAB offers opportunities for simultaneous substitution that are additional to those that exist in any event under section 30 of the regulations and two streams of compensation in lieu of program deletion. The agreement contains interim terms and conditions with respect to:

• monthly fees payable by Rogers to the CAB for Rogers' carriage of the Distant Canadian signals and the U.S. 4+1 signals; and
  
• the list of the Distant Canadian signals Rogers may carry.

In addition, the agreement contemplates the negotiation of final monthly fees retroactive to the date digital customers subscribe to the signals. It also contemplates the possibility of future amendment(s) to the list of Distant Canadian signals.

Both Rogers and the CAB acknowledge that the current agreement contains interim rates and contemplates possible amendments following the Commission's review of the applicable policy on the carriage of distant signals by both DTH and cable BDUs (Public Notice CRTC 2001-103).

Suspension of Provision of Approval:

In view of the executed agreement between the two parties, the Commission agrees to suspend the application of the provision of approval as outlined in paragraph 22 of Decision CRTC 2000-437.

The Commission notes that in the event that the agreement between Rogers and the CAB is terminated at any time or if it is not renewed upon expiry of the agreement, the provision of approval will no longer be suspended upon termination or expiry of the agreement. For example, without the agreement in place, Rogers would once again be required, in accordance with the provision of approval, to adhere to the requirements regarding non-simultaneous program deletion set out in section 43 of the regulations.

Further, as noted above, this suspension may be affected or modified as a result of the Commission's determination in the process commenced by Public Notice 2001-103.

As confirmed by Rogers, the letter from Rogers and the agreement executed between Rogers and the CAB will be placed on the public file.

Ursula Menke
Secretary General

Date Modified: 2001-12-21