ARCHIVED -  Decision CRTC 88-213

Decision

Ottawa, 31 March 1988

Decision CRTC 88-213

N1 Cable TV Ltd. One hundred and forty-six communities in New Brunswick (see list appended to this decision) - 872619200

Fundy Cable Ltd. (formerly Fundy Cablevision Ltd.) Thirty-two communities (phase one) and fifty-two communities (phase two) in New Brunswick (see lists appended to this decision) - 870449600 - 872583000

Cable Service Ltd. Twenty communities in New Brunswick (see list appended to this decision) - 872606900

North East Cablevision Ltd. Allardville, Allardville East and St-Sauveur, New Brunswick - 872564000

Kings County Cable Ltd. Havelock, St. Martins and surrounding areas; Sussex and Sussex Corner, New Brunswick - 872604400 - 873278600

Sackville Cable TV Limited Sackville, New Brunswick - 871481800

La Société des Câbles de la Péninsule Ltée Caraquet and surrounding area; Shippagan, Legoulet, Lameque and surrounding area; and Tracadie, Neguac and surrounding area, New Brunswick - 872591300 - 872589700 - 872590500

K. D. Pedersen, on behalf of a company to be incorporated Williamsburg, Maple Grove, Centreville, Cross Creek, Giants Glen, Stanley and Limekiln, New Brunswick - 872592100

At a Public Hearing in Moncton on 25 January 1988, the Commission considered competing applications for licences to carry on broadcasting receiving undertakings to serve approximately 180 communities in New Brunswick. In some instances, the applications were for licences to operate new broadcasting receiving undertakings or for authority to extend presently authorized service areas to serve communities adjacent to existing cable systems. In the case of N1 Cable TV Ltd. (N1), the application was for licences to operate a total of seventy-nine cable systems, organized in three regional service clusters, following the model developed by the applicant for the extension of cable service in the province of Newfoundland. Similarly, Fundy Cable Ltd. (Fundy) and Cable Service Ltd. (Cable Service) proposed to operate fifty-five and eleven cable systems respectively.

Background

At a previous Public Hearing in Halifax in March 1987, the Commission considered five competing applications for licences to carry on broadcasting receiving undertakings to serve some 70 small communities in New Brunswick and Nova Scotia.

In its assessment of the five proposals, the Commission denied an application by N1 for 27 cable systems in Nova Scotia and for 35 cable systems in New Brunswick, stating that it was not convinced that the N1 proposal represented the most effective means of extending service to the communities applied for, whether by reason of the proposed programming services, monthly subscriber fee or the degree to which the proposed service would cover any given area (Decision CRTC 87-382). The Commission approved competing applications from local cable operators for seven cable systems in New Brunswick and Nova Scotia and, in conjunction with the release of the decision, issued a call for applications to serve those areas denied to N1, excluding the communities already licensed to other parties and those licensed to the competing applicants.

Stating its disappointment that a number of communities in Atlantic Canada would remain unserved as a result of the above-noted decision, the Commission noted that the denial of the N1 proposal did not preclude N1 from submitting a new application to serve the unlicensed communities, and that the call for new applications would also give other interested parties an opportunity to apply.

The applications presently before the Commission were submitted in response to that call and, in total, propose to provide cable service to some 18,500 households in the province of New Brunswick. N1 is presently the licensee of approximately 200 small cable systems in Newfoundland and the other applicants are all New Brunswick cable operators, with the exception of K.D. Pedersen, on behalf of a company to be incorporated (Mr. Pedersen).

The Applications

The N1 application proposed to provide service to a total of 146 communities in New Brunswick with an average household count of 194, comprising a total of 14,930 potential subscribers. It is competing with other applicants for sixty-two of the seventy-nine cable systems for which it has applied.

Based on the success of its regional model in Newfoundland, N1 described a "minimum licensing scenario" at the public hearing, proposing to divide New Brunswick into three regional "clusters" with 9,031 of the potential subscribers located in the northeastern region, 4,498 in the southern region and a further 1,401 households in the central region.

At the hearing, N1 identified the systems it required in each region if it is to maintain the integrity of the average cost per system. Prefaced by an indication that it would prefer to receive licences for all of the systems for which it had applied, N1 noted that since some would be negative contributors requiring counterbalancing by the more viable undertakings, the loss of up to 36 of the 79 systems applied for would still permit the generation of sufficient revenue to ensure the proposal's viability. N1 further indicated that only 25 of the 79 systems for which it had applied were large enough to be economically viable by providing a positive contribution and that the remaining 54 smaller systems would only be viable as a result of certain economies of scale that could be achieved if they were to be licensed in conjunction with the larger communities.

N1 proposed to distribute all local programming services as well as CITV-TV Edmonton, CHCH-TV Hamilton, WJBK-TV (CBS), WDIV (NBC), WXYZ-TV (ABC) and WTVS (PBS) Detroit, Michigan, received via satellite from the CANCOM network, as well as the CBC Parliamentary Television Network, the Atlantic Satellite Network (ASN), The Sports Network (TSN) and the MuchMusic Network. In the francophone communities identified with an asterisk in the appendix to this decision, N1 proposed to provide the additional services of TCTV, CFJP-TV (TQS) and CIVM-TV (SRTQ) Montreal, as well as French Television Programming (TVFQ-99) and MusiquePlus, all to be received via satellite.

With respect to community programming, the applicant indicated that it had made provision for a community channel for each system and for a mobile programming unit to cover special events in the various areas to be served. The applicant further stated that it would employ a full-time bilingual community programming co-ordinator to assist in training and equipping organizations within communities wishing to produce programming for distribution on the community channel and that both co-ordinative support and the mobile facilities would be available for use by the beginning of the second year of operation.

N1 proposed to charge a maximum monthly fee of $20.95. In terms of technical and managerial support, N1 stated its intention of establishing a service office in the central region with sub-offices in the other two regions. Each sub-office would employ one technician, providing service for 2,500 subscribers each, with the central office employing an office manager, a technical supervisor and four bilingual customer service representatives. Computer billing would be administrated from N1's office in St. John's, Newfoundland.

The ownership structure of N1 will continue to consist of Eastern Cable Ltd. (37%), a cable operator licensed to serve a number of communities in Newfoundland, and CANCOM (15%), with the remaining 48% being held by C1 Cablesystems Inc., a financing vehicle designed to raise about $3.3 million of the approximate $6.5 million projected establishment cost, through sales of additional shares to private investors. The financing proposal provides for a bank loan to cover the balance of the projected establishment costs, subject to certain conditions, including the raising of shareholders' equity noted above.

Seven other applicants submitted proposals that were partially competing with N1's application. Applicants for new cable systems and for extensions to existing Part III cable systems on balance proposed very similar services and monthly fees. Those proposing extensions to existing Class 1 and 2 cable systems, while applying to distribute a somewhat different range of services than the applicants for Part III cable systems, all applied for basic monthly fees generally in the same range, with one exception.

Fundy, a licenced New Brunswick cable operator since 1973, serving over 73,000 subscribers in 64 communities throughout the province, applied to establish 21 broadcasting receiving undertakings to serve some 32 communities in its Phase I proposal and a further 34 broadcasting receiving undertakings to serve some 52 communities in Phase II. Fundy proposed to implement Phase I within 12 months of the Commission's decision and Phase II during the following 12-month period. The systems applied for are located in all three of the regions applied for by N1 with a small number of non-competing systems situated outside of the three regions. In total, Fundy proposed to serve 8,400 households with these applications.

The Commission notes that the monthly subscriber fee of $20.25 proposed by Fundy is $0.70 less than that proposed by N1. In terms of the service package proposed, Fundy will provide basically the same services as N1; however, it is not proposing to provide the CBC Parliamentary Television Network nor, in francophone communities, the service of Le Réseau de télévision Quatre Saisons (CFJP-TV).

Fundy submitted that it has the infrastructure in place to serve the proposed cable systems promptly and efficiently and indicated that it would hire one technician for each additional 1,700 subscribers. The Commission notes Fundy's plans to establish community channels in those areas where there is an interest and where a 70% penetration level is reached. Submitting that most of the small communities it presently serves have very active community channels, Fundy indicated that its staff currently provides training and assistance to 25 volunteers involved in providing this type of programming.

Cable Service, a licensed cable operator now serving over 25,000 subscribers in Moncton and surrounding areas, applied for licences to establish 11 broadcasting receiving undertakings to serve 20 communities, all within one hour's drive of Moncton. The systems proposed are all located in the southern region proposed by N1 and would provide service to a total of 1,615 households.

Cable Service proposed a monthly subscriber fee that was $0.80 more than that proposed by N1 for a similar service package, except that in francophone communities, instead of providing CITV-TV and CHCH-TV, it is proposing to distribute CIVM-TV (Radio-Québec) via satellite and TCTV received from CANCOM.

If licensed for these communities, the applicant plans to hire one technician and one customer service representative as well as purchase an additional service vehicle. In terms of community programming, the Commission notes Cable Service's plans to provide camera and play-back equipment, as well as access to its Moncton community programming facilities and mobile unit.

La Société des Câbles de la Péninsule Ltée (Cablo Péninsule), presently serving some 4,500 subscribers out of a potential of 7,500 households, applied to extend its authorized service areas at Caraquet, Shippegan and Tracadie to include approximately 40 additional communities. These proposed extensions are all located in the northeastern region proposed by N1 and would provide service to approximately 5,000 households.

The Commission notes that although Cablo Péninsule's proposed monthly subscriber fee is $1.95 less than that proposed by N1, it is not proposing to distribute CHCH-TV, WTVS (PBS), the Réseau de télévision Quatre-Saisons (CFJP-TV), TVFQ-99, the CBC Parliamentary Television Network or community programming.

At Caraquet and Tracadie, it currently provides five French-language and ten English-language programming services on the basic service as well as one discretionary television service and five radio services. Noting that it has already installed some 239 kilometres of cable, Cablo Péninsule stated at the public hearing that of the areas licensed to it in June 1982, there remain some 22 kilometres yet to be cabled.

North East Cablevision Ltd. (North East), an established cable operator currently serving over 7,800 subscribers with its Bathurst cable system, applied to establish a cable system to serve Allardville, Allardville East and St-Sauveur. Because North East proposes to provide, via microwave, the services available on its Class 1 cable system at Bathurst, which does not presently distribute four CANCOM signals, it is also requesting to be exempted, by condition of licence, from the carriage requirements of Section 23 of the Cable Television Regulations, 1986 (the regulations), which is applicable to Part III licensees. The new system would serve an estimated 815 subscribers and is competing with N1, as the proposed communities are located in the northeastern service region proposed by N1.

North East proposes to provide the same signal package as its existing subscribers receive, consisting of 7 French-language and 11 English-language services on the basic service, as well as 7 discretionary services and 10 radio services on the FM band. North East presently has two active community channels, one in each official language, with one studio and three portable units. These facilities, as well as the 15 hours of programming per week that the community channels provide, would also be made available to the communities contained in the application.

The monthly subscriber fee proposed by North East is $1.30 less than that proposed by N1; however North East is not proposing to distribute CITV-TV or CHCH-TV. The Commission notes North East's contention that the communities for which it has applied are not severable and that it would not be economically viable to serve only part of the area proposed.

The applications submitted by Kings County Cable Limited (KCC) proposed to establish broadcasting receiving undertakings at Havelock and St. Martins, as well as to extend its authorized service area at Sussex to serve 474 households at Norton, Apohaqui, Millstream and Peekaboo Corner. The Commission notes that the applicant withdrew its application to establish the cable systems at Havelock and St. Martins at the public hearing. The remaining application to extend the authorized service area at Sussex is competing with the N1 application in its southern service region.

The basic monthly fee proposed by KCC is $0.95 less than that of N1 and $0.25 less than that of Fundy, which is also applying to serve Norton and Apohaqui. However, consistent with its program offering on the existing Class 2 system in Sussex, in which it distributes eleven television programming services on the basic service, KCC does not propose to provide CITV-TV or CHCH-TV. KCC outlined the activities of its productive community channel and indicated that this service would also be provided to the extended areas. The Commission notes the applicant's contention that the proposed extension is not severable and that if it were to be licensed for only part of the area applied for, it is likely that the basic monthly fee would have to be increased.

Sackville Cable TV Limited (Sackville), currently serves 1,017 subscribers from its Class 2 broadcasting receiving undertaking in Sackville and, with the application currently before the Commission, proposes to serve an additional 215 households, by extending its authorized service area to include a number of adjacent areas, three of which are competing with N1 and Cable Service in N1's proposed southern service region.

Sackville proposed a basic monthly fee that is $6.24 less than that proposed by N1 and $7.04 less than that of Cable Service. As is the case in Sackville, where the applicant provides ten television programming services on the basic service, the proposed signal package does not include the CBC Parliamentary Television Network, CITV-TV, CHCH-TV, TSN or MuchMusic on the basic service. The applicant noted that it has an active community channel that provides a weekly average of 16 hours of taped programming, 20 hours of repeats and 2 hours of live programming.

Mr. Pedersen applied to the Commission for a licence to operate a broadcasting receiving undertaking (subscription television) to serve Stanley and six surrounding communities and his application is competing with both N1 and Fundy, the communities in question being situated in N1's proposed central service region.

Submitting that cable service would not be economically feasible in some of the areas proposed, Mr. Pedersen intended to provide 9 signals for $19.95 per month. The proposed monthly subscriber fee is $1.00 less than that of N1 and $0.30 less than that of Fundy and although Mr. Pedersen is proposing to distribute CHAN-TV, he would not be providing WTVS (PBS) Detroit, MuchMusic, the CBC Parliamentary Television Network or community programming.

Interventions

The Commission acknowledges the numerous interventions, both supportive and opposing, that were submitted in response to most of the applications, indicating a high degree of interest in the provision of quality cable service for the areas in question.

Appearing at the hearing, Mr. Gary Pellerin of Grand Lake TV Ltd. (Grand Lake), licensee of an STV system serving Jenseg, Mill Cove and Cumberland Point, requested that the Commission defer its decision on the applications by both N1 and Fundy for the community of Gagetown. Mr. Pellerin contended that although Gagetown was situated outside of Grand Lake's authorized contours, tests conducted by the licensee have shown that it provides a good quality service to the residents of this community. Mr. Pellerin requested the opportunity to submit a detailed study demonstrating that the Grand Lake STV undertaking is already serving 60 to 80 more subscribers than either N1 or Fundy propose to serve in the community of Gagetown.

Also appearing at the hearing was Mr. Daniel Harrigan of the Local Service District Westfield West Advisory Committee representing residents of Brittain Road, Campbell Road, Woodman's Point, Morrisdale and Public Landing. Mr. Harrigan maintained that the Westfield district needed a quality cable service since the off-air reception of signals is poor and, as such, requested that the entire area noted above be served by an applicant approved to provide cable service.

Brunswick Cable Ltd. (Brunswick), licensee of the broadcasting receiving undertaking at Shediac, opposed the applications by both N1 and Cable Service for the community of St-André-de-Shediac. Claiming that this community is a natural extension of its authorized service area, Brunswick requested that the Commission deny these applications.

The Commission acknowledges the intervention submitted by Television de la Baie des Chaleurs Inc., licensee of CHAU-TV, an affiliate of the TVA network. It requested that should N1 be licensed for the communities it has applied for in the Baie des Chaleurs area, it should be required to substitute the signal of TCTV with that of CHAU-TV, which is receivable over-the-air.

The Commission also notes the intervention from Allarcom Limited, licensee of CITV-TV Edmonton opposing the proposed distribution of CITV-TV in the communities applied for by Mr. Pedersen and KCC.

The Commission's Decision

As noted by the Commission in the decision denying N1's previous application to provide a regional cable service in the province of New Brunswick, the Commission has been guided by a number of principles in assessing proposals of this sort, to arrive at a licensing approach that will ensure the establishment of viable operations for the provision of an attractive package of broadcasting services to the greatest number of underserved communities, at an affordable cost and at the earliest possible date.

In this respect, the Commission recognizes the fact that the installation of cable in the province of New Brunswick is undertaken by New Brunswick Telephone Company Limited (NB Tel) and that any successful applicant must collaborate closely with NB Tel and its construction schedule in order to implement cable service.

Concerning the viability of the proposed systems, the Commission required that all of the applicants demonstrate the viability of their proposals, be it through the proven track record of an existing system, experienced management and administration and/or the availability of sufficient back-up financing. From all of the available evidence, the Commission is not convinced that the application by Mr. Pedersen for a licence to operate a broadcasting receiving undertaking (subscription television) to serve Stanley and six surrounding communities would be a viable operation. The Commission considers that Mr. Pedersen may have seriously underestimated the establishment costs required for the proposed operation and notes, with concern, that no assurances for the provision of additional funds were made to meet any shortfalls that might occur as a result of underestimating the costs. Further, the Commission is not convinced that subscription television is the most effective means of providing the best service to the Stanley area. In light of all of the above, the application by Mr. Pedersen is denied.

In evaluating the remaining applications in light of the principles noted above, the Commission has assessed, on a comparative basis, the package of broadcasting services to be offered, the number of potential subscribers to be served and the basic monthly fee proposed by the respective applicants. The Commission notes that the licensing of any undertakings to N1 must take into consideration whether a particular system would be a positive or negative contributor to the aggregate capital cost of the proposal. Further, the Commission notes that such contributions have been calculated by N1 on a regional basis.

In the NORTHEASTERN REGION, N1 proposed to serve 9,031 households with 530.32 kilometres of cable, whereas the three competing applicants proposed to serve a total of 7,894 subscribers with 368.8 kilometres of cable. While some of the systems applied for by N1 and Fundy in this region were not competing with any other proposals, in the competing areas, N1 proposed to serve more households than Cablo Péninsule but fewer than either North East or Fundy.

North East's application proposed to serve more subscribers at a basic monthly fee that is $1.30 less than that proposed by N1. The Commission therefore approves the application by North East to carry on a broadcasting receiving undertaking to serve Allardville, Allardville East and St-Sauveur. In a separate decision issued today, (Decision CRTC 88-216), the Commission has also authorized North East to provide cable service to the non-competing community of Belledune. Accordingly, the Commission denies that part of the application by N1 for broadcasting receiving undertaking licences to serve the above-noted competing communities.

As requested by North East and pursuant to section 23 of the regulations, it is a condition of licence that the licensee need not distribute at least four television programming services delivered to its local head end by a network operator licensed to extend television and radio services to remote and underserved communities, at least one of which must be a Canadian programming service. Further, pursuant to section 4 of the regulations, it is a condition of this licence that the licensee not be required to own and operate amplifiers and the outside wiring portion of the subscriber drops.

Fundy's application proposed to serve more households than N1 in each community in this region, with the exception of the communities of Ste-Marie-de-Kent and Kouchibouguac, both of which contribute negatively to N1's overall proposal. For this reason, and based on the fact that, for essentially the same service package, Fundy's basic monthly rate is lower than N1's, the Commission approves that part of the applications by Fundy for licences to carry on broadcasting receiving undertakings in the competing communities of Big Cove, Richibucto Village, Cap Lumière, Pointe-Sapin, Ste-Marie-de-Kent, White Rapids/Gray Rapids/ Coughan (The Rapids), Centre-Acadie/ Acadieville, Kouchibouguac and Ste-Anne-de-Kent and in the non-competing communities of St-Ignace and Route 505 (Buctouche Baie, Village-Ste-Croix, and St-Edouard-de-Kent). Accordingly, the Commission denies that part of the application by N1 for licences to operate broadcasting receiving undertakings to serve the competing communities noted above.

Of the twenty-four remaining systems in this region, N1 was competing with Cablo Péninsule for fifteen. Although the Commission recognizes that Cablo Péninsule is proposing a lower monthly fee than N1, it would offer service to over 500 fewer subscribers in the competing communities, is proposing fewer signals than N1 in its service package and would not offer community programming. In light of the above, and following the principles noted previously in this decision, the Commission denies the applications by Cablo Péninsule to extend its authorized service areas at Caraquet, Shippegan and Tracadie.

Accordingly, in the northeastern service region proposed by N1, the Commission approves that part of the application by N1 for licences to carry on broadcasting receiving undertakings in the communities of Ste-Marie-sur-Mer/St-Raphaël-sur-Mer/ Cap Bateau/Coteau Road/Pigeon Hill, Grande-Anse/St-Léolin/Village-St-Paul, Pointe Alexandre/Petite-Lameque/Pointe-Canot/Ste-Cécile/ Petite-Rivière-de-L'Ile, Bois-Blanc/ Duguayville/ Hacheyville/St-Isidore/ Boishebert, Rang-St-George/Paquetville/Haut-Paquetville/Petit-Paquetville/ Notre-Dame-des-Érables, Haut-Ste-Rose/Ste-Rose-Gloucester/Six Roads/Four Roads/South River/Losier Settlement/Little Gaspereau/Pont-Landry/Gaspereau, Maisonnette, Blanchard Settlement/Upper Pokemouche/ Evangeline, Centre St-Simon/Haut-St-Simon, Lavillette/Drisdelle Settlement/St-Wilfred/Lagaceville, Inkerman/Inkerman Ferry, Burnt Church, Big River/Blue Mountain Settlement/Pabineau, St-Irénée, Anse Bleue, Miscou Centre, Salmon Beach, Pokesudie, Maltampec, Burnsville/ St-Amateur/Trudel, St-Paul/Val-Richard, Val Doucet and Centre Napan/ Lower Napan/Napan.

Further, the Commission denies that part of the application by N1 for a licence to carry on a broadcasting receiving undertaking in Fairisle inasmuch as this community falls within the authorized service area of the Neguac undertaking licensed to Cablo Péninsule in Decision CRTC 82-580 dated 30 June 1982.

In the SOUTHERN REGION, four local cable operators were competing with N1. N1 proposed to serve 4,498 households with 217.77 kilometres of cable while the local operators proposed to serve 6,058 households with 329.87 kilometres of cable. The Commission notes that for the communities of Norton, Apohaqui and Westcock, three applicants are competing to provide cable service.

With respect to the community of Westcock, where N1, Sackville and Cable Service are competing, the Commission notes that Sackville's proposed extension of its existing Class 2 cable system would serve more households at a basic monthly fee that is $6.24 less than that proposed by N1 and $7.04 less than that of Cable Service. The Commission therefore approves the application by Sackville to change the authorized service area of the broadcasting receiving undertaking serving Sackville to include West Sackville, British Settlement, Westcock and Wood Point south on Highway 935, Harrison Street extension, Fairfield and King and Walker areas. Accordingly, the Commission denies those parts of the applications by N1 and Cable Service for licences to carry on broadcasting receiving undertakings to serve Westcock. The Commission notes that Sackville's notification, pursuant to section 18(6) of the regulations, for a fee increase of $0.68 to cover the costs of the proposed extension was suspended on 9 September 1987, pending the approval of this application.

With respect to the communities of Norton and Apohaqui, where N1, KCC and Fundy are competing, the Commission notes that KCC is proposing to serve more households with the extension of its existing Class 2 system, at a basic monthly fee $0.95 less than that of N1 and $0.25 less than that of Fundy. The Commission therefore approves the application by KCC to change the authorized service area of the broadcasting receiving undertaking serving Sussex and Sussex Corner to include Norton, Apohaqui, Millstream and Peekaboo Corner. The Commission also approves KCC's proposal to charge a basic monthly fee of $20.00 for the authorized services to the proposed extension area only. Accordingly, the Commission denies those parts of the applications by N1 and Fundy for licences to carry on broadcasting receiving undertakings to serve Norton, Apohaqui and Peekaboo Corner.

In assessing the remaining systems in this region, the Commission notes that in the competing communities both Fundy and Cable Service are proposing to serve more subscribers than N1. The Commission also notes that the entire southern region contributes negatively to N1's overall application and that N1 would require most of the communities in this region to make its proposal viable. In this region, the Commission considers that the competing applications by Fundy and Cable Service will best meet the needs of the subscribers, in accordance with the principles noted earlier in this decision. The Commission therefore approves that part of the applications by Fundy for licences to carry on broadcasting receiving undertakings to serve the competing communities of St. Martins/ West Quaco, Willow Grove/Garnett Settlement, Morrisdale, Public Landing, Back Bay, Keatings Corner, Beaver Harbour, Nasonworth/Charters Settlement/Rusagonis/Waasis, Patterson/Hoyt, Gagetown, Stuart Town/Lambertville/Lords Cove/ Richardson (Deer Island), Baxters Corner, Browns Flat, Hybernia Heights, Welsford, Barnesville and the non-competing communities of Hatfield Point, Upper Gagetown, Noonan, Musquash Subdivision, Lepreau and Pennfield/Justasons Corner/ Utopia. Accordingly, the Commission denies that part of the application by N1 for licences to carry on broadcasting receiving undertakings to serve the aforementioned competing communities licensed to Fundy.

With respect to the licensing of the community of Gagetown to Fundy and the intervention submitted by Grand Lake T.V. Ltd. acknowledged earlier in this decision, the Commission notes that Gagetown is located outside the authorized contours of the subscription television service licensed to Grand Lake T.V. Ltd.

For the remaining communities in this region, the Commission approves the application by Cable Service for licences to carry on broadcasting receiving undertakings to serve the competing communities of Alma, Havelock, Riverside-Albert/Hopewell Hill/ Shepody, Bayfield/Cape Tormentine, Elgin, River Glade/Kay Settlement/The Glades, St-André-de-Shediac/Leblanc/ Cormier Village and Middlesex/Grub Road and the non-competing communities of Hopewell Cape and Lower Turtle Creek. Accordingly, the Commission denies that part of the application by N1 for licences to carry on broadcasting receiving undertakings to serve the aforementioned competing communities licensed to Cable Service.

The Commission notes that, according to the information submitted by N1 at the public hearing, the provision of service by N1 to the proposed non-competing communities of Wilsons Beach, Leonardville, Welshpool and Fairhaven, would, as a result of the denials noted above, not be economically feasible and that N1 would be unable to implement service. The Commission denies that part of the application by N1 to provide service to these areas. In the interest of providing cable service to these areas without further undue delay, the Commission is today issuing a call for applications to serve Wilsons Beach, Leonardville, Welshpool and Fairhaven. The Commission notes the intervention submitted by Fundy to the effect that it intended to apply to serve any areas denied to N1 and to that end further notes that this decision does not preclude N1 or any other interested parties from submitting applications to serve the unlicensed communities.

In the CENTRAL region, only Fundy is competing with N1, the other applicant, Mr. Pedersen, having been denied for the reasons set out earlier in this decision. N1 proposed to serve 1,401 households with 74.75 kilometres of cable and Fundy proposed to serve 1,287 subscribers with 67.87 kilometres of cable.

The Commission notes that favourable decisions on N1's applications seeking approval to acquire control of Woodstock Community Cable T.V. Ltd. and J. & K. Enterprises Ltd. have been released in Decision CRTC 88-214 of today's date and that both of these undertakings are located in N1's proposed central region. At the hearing, N1 indicated that if the Commission were to approve those applications, the Woodstock undertaking would be the location of the province's central service office and that the acquisition of these two systems would add another 3,665 potential subscribers to this region.

In assessing the competing applications by N1 and Fundy for this area, given the similarity of service packages and fees to be charged, the Commission placed particular emphasis on the number of subscribers to be served in each community and their geographical locations in relation to the existing or proposed systems of these applicants.

Accordingly, the Commission approves that part of the application by Fundy for broadcasting receiving undertaking licences to serve Stanley, Williamsburg/Cross Creek, Millville, Boiestown, Astle, Nashwaak Bridge, Taymouth, Kingsley Road and Meductic.

The Commission also approves that part of the application by N1 for licences to carry on broadcasting receiving undertakings to serve Juniper, Ludford Subdivision/Kingsclear/Mazerolle Settlement, Holtville, Ludlow/New Bandon, Lakeville, Durham Bridge and Temperance Vale/ Pinder.

As noted previously, Fundy applied to serve a number of non-competing communities which are situated outside N1's three designated regions. Accordingly, the Commission approves that part of the applications by Fundy for licences to carry on broadcasting receiving undertakings to serve Caron Brook, Davis Mill, Lac Baker, Moulin Morneault, Notre-Dame-de-Lourdes, Rang-des-Couturiers and St-Joseph-de-Madawaska.

The operation of all of the undertakings licensed to N1, Fundy, Cable Service and North East will be regulated pursuant to Parts I and III of the regulations. The Commission will issue licences, all expiring 31 August 1990, subject to the conditions specified in this decision and in the licences to be issued. This term will enable the Commission to consider the renewal of these licences at the same time as that of other cable systems in the area.

The Commission reminds N1 that the communities of Big River and Salmon Beach, for which it has been licensed in the northeastern region, are situated within the Grade A official contour of CHAU-TV Carleton, Quebec and as a Part III licensee N1 is required to carry CHAU-TV pursuant to paragraph 22(1)(a) of the regulations. Accordingly, in these communities under paragraph 24(1)(g) of the regulations the proposed carriage of the TCTV signal is subject to the requirement set out in the list of Part III eligible Canadian satellite services and the footnotes to that list (Public Notice CRTC 1986-183 dated 1 August 1986). With respect to those systems where CHAU-TV is a regional television station by virtue of any part of such systems being situated within the Grade B official contours of CHAU-TV, licensees must carry CHAU-TV under paragraph 22(1)(b) of the regulations and the Commission would expect such licensees to make the appropriate signal deletion or substitution, as the case may be.

With respect to the intervention from Allarcom Limited, licensee of CITV-TV Edmonton opposing the proposed distribution of CITV-TV in communities applied for by Mr. Pedersen and KCC, the Commission notes the denial of Mr. Pedersen's application and the withdrawal of that portion of the application by KCC, in which it was proposing to distribute CITV-TV.

The Commission notes that a number of areas licensed to N1, particularly in the Acadian Peninsula, consist largely of francophone communities. In this respect, the Commission notes N1's commitment to hire bilingual technical and office staff, to ensure that services are provided in both official languages of the Province of New Brunswick.

As noted previously, the Commission recognizes the extent to which the construction schedule of NB Tel would have an impact on the implementation of these cable systems. In light of the high priority that the Commission places on the provision of cable service in New Brunswick, it considers of paramount importance, NB Tel's co-operation in realizing this goal as expeditiously as possible. Consistent with undertakings and commitments made by all of the applicants at the public hearing, it is a condition of each licence that the authority granted herein be implemented within fifteen months of the date of this decision or such further period as the Commission may, upon receipt of a request for extension before the expiry of the said fifteen months, deem appropriate under the circumstances.

Further, the Commission requires each licensee to submit quarterly reports on its progress in implementing the authorities herein granted. The Commission acknowledges the plans of N1 and Fundy with respect to the development of community channels and, in the case of North East, Cable Service, KCC and Sackville, the provision of access to and expansion of existing community channels and their facilities. The Commission encourages the licensees to promote community interest in, and access to these services for the production of local programming that reflects the needs of the respective communities.

Fernand Bélisle
Secretary General

APPENDIX

N1 Cable TV Ltd.

1.ALLARDVILLE/DAULNAY* 2.ALLARDVILLE EAST/ST-SAUVEUR* 3.ALMA 4.ANSE BLEUE* 5.APOHAQUI/FOX HILL 6.BACK BAY/LETANG 7.BARNESVILLE/PRIMROSE 8.BAXTERS CORNER 9.BEAVER HARBOUR 10.BIG COVE* 11.BIG RIVER/BLUE MOUNTAIN SETTLEMENT/PABINEAU* 12.BLANCHARD SETTLEMENT/UPPER POKEMOUCHE/EVANGELINE* 13.BOIESTOWN 14.BOIS BLANC/DUGUAYVILLE/HACHEYVILLE/ST-ISIDORE/ BOISHBERT* 15.BROWNS FLAT 16.BURNSVILLE/ST-AMATEUR/TRUDEL* 17.BURNT CHURCH 18.CAPE TORMENTINE/BAYFIELD 19.CENTRE-ACADIE/ACADIEVILLE* 20.CENTRE-ST-SIMON/HAUT-ST-SIMON* 21.CENTRE NAPAN/LOWER NAPAN/NAPAN* 22.CHARTERS SETTLEMENT 23.CROSS CREEK 24.DURHAM BRIDGE 25.ELGIN 26.FAIRHAVEN 27.FAIRISLE* 28.GAGETOWN 29.GARNETT SETTLEMENT 30.GRANDE ANSE/ ST-LEOLIN/VILLAGE ST-PAUL* 31.GRAY RAPIDS/COUGHLAN 32.HAUT-STE-ROSE/ STE-ROSE-GLOUCESTER/SIX ROADS/FOUR ROADS/SOUTH RIVER/LOSIER SETTLEMENT/ LITTLE GASPEREAU/PONT-LANDRY/GASPEREAU* 33.HAVELOCK 34.HIBERNI A HEIGHTS 35.HOLTVILLE 36.HOWARTH ACRES 37.INKERMAN/INKERMAN FERRY* 38.JUNIPER 39.KOUCHIBOUGUAC* 40.LAKEVILLE 41.LAVILLETTE/DRISDELLE SETTLEMENT/ ST-WILFRED/LAGACEVILLE* 42.LEONARDVILLE* 43.LUDFORD SUBDIVISION/ KINGSCLEAR/MAZEROLLE SETTLEMENT 44.LUDLOW/NEW BANDON 45.MAISONNETTE* 46.MALTAMPEC* 47.MIDDLESEX 48.MILLVILLE 49.MISCOU CENTRE* 50.MORRISDALE/PUBLIC LANDING 51.NEREPIS (BRITTAIN ROAD/KEATINGS CORNER) 52.NORTON/ PEEKABOO CORNER 53.PATTERSON/HOYT 54.POINTE ALEXANDRE/PETITE-LAMEQUE/ POINTE-CANOT/STE-CECILE/PETITE- RIVIERE-DE-L'ILE* 55.POINTE-SAPIN/ POINTE-SAPIN-CENTRE/RIVIERE-AU- PORTAGE* 56.POKESUDIE* 57.RANG ST-GEORGE/PAQUETVILLE/HAUT-PAQUETVILLE/PETIT-PAQUETVILLE/NOTRE-DAME- DES-ERABLES* 58.RICHIBUCTO-VILLAGE, CAP-LUMIERE* 59.RIVER GLADE/THE GLADES* 60.RIVERSIDE-ALBERT 61.RUSAGONIS 62.SALMON BEACH 63.ST-IRENEE* 64.ST. MARTINS/WEST QUACO/ORANGE HILL 65.SAINT-ANDRE-DE-SHEDIAC/LEBLANC* 66.STE-ANNE-DE-KENT* 67.STE-MARIE-DE- KENT* 68.ST-PAUL/VAL-RICHARD* 69.STANLEY 70.STE-MARIE-SUR-MER/ ST-RAPHAEL-SUR-MER/CAP BATEAU/COTEAU ROAD/PIGEON HILL* 71.STUART TOWN/ LAMBERTVILLE/LORDS COVE/RICHARDSON 72.TEMPERANCE VALE/PINDER 73.VAL DOUCET* 74.WELSFORD 75.WELSHPOOL 76.WESTCOCK/WOOD POINT 77.WILLIAMSBURG 78.WILLOW GROVE 79.WILSONS BEACH/OTTER COVE, New Brunswick

*Francophone Communities

Fundy Cablevision Ltd. Phase I

1.APOHAQUI 2.BACK BAY 3.BARNSVILLE 4.BEAVER HARBOUR 5.BIG COVE 6.BOIESTOWN 7.BROWNS FLAT 8.GAGETOWN 9.JUNIPER 10.KEATINGS CORNER 11.LAC BAKER* 12.MOULIN MORNEAULT* 13.NORTON 14.PUBLIC LANDING 15.RICHIBUCTO VILLAGE* 16.ST. MARTINS/WEST QUACO 17.ST-IGNACE* 18.STE-MARIE-DE-KENT* 19.STANLEY 20.STUART TOWN/LAMBERTVILLE/LORDS COVE/RICHARDSON (DEER ISLAND) 21.WHITE RAPIDS/GRAY RAPIDS/ COUGHLAN (THE RAPIDS), New Brunswick

*Francophone Communities

Fundy Cablevision Ltd. Phase II

1.ASTLE 2.BAXTERS CORNER 3.BLOOMFIELD RIDGE 4.CAP LUMIERE* 5.CARON BROOK* 6.CENTRE-ACADIE/ACADIEVILLE* 7.DAVIS MILL* 8.HATFIELD POINT 9.HOLTVILLE 10.HYBERNIA HEIGHTS 11.KINGLSLEY 12.KOUCHIBOUGUAC 13.LEPREAU 14.MEDUCTIC 15.MILLVILLE 16.MORRISDALE 17.MUSQUASH SUBDIVISION 18.NASHWAAK BRIDGE 19.NASONWORTH/CHARTERS SETTLEMENT/RUSAGONIS/WAASIS 20.NEW BANDON 21.NOONAN 22.NOTRE-DAME-DE-LOURDES* 23.PATTERSON/HOYT 24.PENNFIELD/ JUSTASONS CORNER/UTOPIA 25.POINTE- SAPIN* 26.RANG-DES-COUTURIER* 27.ROUTE 505 TO STE-ANNE-DE-KENT (BUCTOUCHE BAIE/VILLAGE STE-CROIX/ ST-EDOUARD-DE-KENT)* 28.STE-ANNE-DE- KENT* 29.SAINT-JOSEPH-DE-MADAWASKA* 30.TAYMOUTH 31.UPPER GAGETOWN 32.WELSFORD 33.WILLIAMSBURG/CROSS CREEK 34.WILLOWGROVE/GARNETT SETTLEMENT, New Brunswick

*Francophone Communities

Cable Service Ltd.

1.ALMA 2.BAYFIELD, CAPE TORMENTINE 3.BRITISH SETTLEMENT, WESTCOCK 4.ELGIN 5.HAVELOCK 6.HOPEWELL CAPE 7.LOWER TURTLE CREEK 8.MIDDLESEX, GRUB ROAD 9.RIVER GLADE, KAY SETTLEMENT, THE GLADES 10.RIVERSIDE-ALBERT, HOPEWELL HILL, SHEPODY 11.ST-ANDRE- DE-SHEDIAC, LEBLANC, CORMIER VILLAGE*, New Brunswick

*Francophone Communities