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Broadcasting Public Notice CRTC 2006-41
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See also: 2006-41-1 |
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Ottawa, 31 March 2006 |
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Call for comments on the marketing and billing practice known
as "account stacking" in the context of the Commission’s
regulatory framework for broadcasting distribution undertakings
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The Commission calls for comments on
the marketing and billing practice by which a broadcasting distribution
undertaking treats the provision of service to two separate residences
owned by the same person as a single subscription, referred to as
"account stacking." Once the process initiated by this notice
concludes, the Commission intends to issue its determination on a
complaint filed by Videotron Ltd. against Star Choice Communications
Inc. in which this issue is raised. |
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Background
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1. |
In a complaint dated 2 December 2005, Videotron
Ltd. (Videotron) alleged that Star Choice Communications Inc. (SCI)
had violated section 9 of the Broadcasting Distribution Regulations
(the Regulations) by giving itself an undue preference and subjecting
Videotron to an undue disadvantage by allowing the sale of several
decoders and antennas to a single individual who may then install
them in two separate residences while paying for only one subscription.
In the view of Videotron, this practice by SCI is anti-competitive
and deprives Videotron of subscribers, thereby subjecting Videotron
to an undue disadvantage. Videotron further alleged that this practice
deprives programming undertakings, particularly specialty programming
services and pay television services, of revenue that they would otherwise
collect if SCI complied with the Regulations. |
2. |
In its response to Videotron’s complaint
dated 20 December 2005, SCI acknowledged that it was allowing its
subscribers to receive its service at two different residences while
paying for only one subscription, provided both residences were owned
by the same subscriber. SCI considered that this constitutes a reasonable
and rational use of its technology, which allows it to serve its customers
at both their main place of residence and their second residence.
SCI was of the view that the manner in which it has chosen to serve
some of its customers complies with the Regulations and with the policy
objectives set out in the Broadcasting Act. |
3. |
In its reply dated 22 December 2005, Videotron
submitted that, if the Commission were to endorse the theory advanced
by SCI, Videotron would be free to stop making duplicate payments
to programming undertakings and to market its product by proposing
to households with more than one residence that they pay for only
one subscription to cover those residences, thereby enabling Videotron
to recoup some of the former Videotron subscribers who are now SCI
subscribers. |
4. |
Subsequently, in a letter dated 3 February
2006, the Canadian Association of Broadcasters (CAB) submitted comments
and requested that the Commission consider those comments prior to
making a final determination on the Videotron complaint. The CAB expressed
no view on the merits of the Videotron complaint. Instead, the CAB
took issue with what it called the "underlying matter that has
led to the complaint, namely SCI’s marketing and billing practice
of treating the provision of service to two separate residences owned
by the same person as a single subscription." |
5. |
On 10 February 2006, Bell ExpressVu Limited
Partnership1 (ExpressVu)
also filed an unsolicited submission. ExpressVu advised that it reserved
the right to make a substantive submission if the Commission were
to take the CAB’s submissions into account in the bilateral complaint
proceeding concerning Videotron and SCI, or to otherwise consider
any CAB requests for action relating to the appropriateness of serving
primary and secondary residences from a single account, or the commercial
treatment of such arrangements in affiliation agreements. |
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Call for comments
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6. |
The Commission notes the positions of the
parties and finds it appropriate to provide an opportunity for interested
parties to comment on the issue of "account stacking" as
described above. Accordingly, the Commission calls for comments on
the marketing and billing practice by which a broadcasting distribution
undertaking treats the provision of service to two separate residences
owned by the same person as a single subscription, referred to as
"account stacking." |
7. |
The Commission emphasizes that it is not
seeking comments on the complaint filed by Videotron but rather invites
comments solely on the issue of "account stacking" as described
in this notice. The Commission will accept comments that it receives
on or before 18 April 2006. |
8. |
The Commission will make a determination
regarding the complaint filed by Videotron after it has issued its
policy regarding "account stacking." |
9. |
The Commission will not formally acknowledge
comments. It will, however, fully consider all comments and they will
form part of the public record of the proceeding, provided that the
procedures for filing set out below have been followed. |
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Procedures for filing comments
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10. |
Interested parties can file
their comments to the Secretary General of the Commission: |
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- by using the
Broadcasting Intervention/Comments Form
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OR
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- by mail to
CRTC, Ottawa, Ontario K1A 0N2
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OR
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11. |
Submissions longer than five
pages should include a summary. |
12. |
Please number each paragraph
of your submission. In addition, please enter the line ***End of document***
following the last paragraph. This will help the Commission verify
that the document has not been damaged during transmission. |
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Important notice |
13. |
Note that all information that
you provide as part of this public process, except information granted
confidentiality, whether sent by postal mail, facsimile, e-mail or
through the Commission’s web site at
www.crtc.gc.ca, becomes part of a publicly accessible file and
will be posted on the Commission’s web site. This information includes
your personal information, such as your full name, e-mail address,
postal/street address, telephone and facsimile number(s), and any
other personal information you provide. |
14. |
Documents received electronically
or otherwise will be put on the Commission’s web site in their entirety
exactly as you send them, including any personal information contained
therein, in the official language and format in which they are received.
Documents not received electronically will be available in PDF format.
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15. |
The personal information you
provide will be used and may be disclosed for the purpose for which
the information was obtained or compiled by the Commission, or for
a use consistent with that purpose. |
16. |
The Commission encourages interested
parties to monitor the public examination file and the Commission’s
web site for additional information that they may find useful when
preparing their comments. |
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Examination of public
comments and related documents at the following Commission offices
during normal business hours |
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Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room 206
Gatineau, Quebec K1A 0N2
Tel: (819) 997-2429 - TDD: 994-0423
Fax: (819) 994-0218 |
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Metropolitan Place
99 Wyse Road
Suite 1410
Dartmouth, Nova Scotia B3A 4S5
Tel: (902) 426-7997 - TDD: 426-6997
Fax: (902) 426-2721 |
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205 Viger Avenue West
Suite 504
Montréal, Quebec H2Z 1G2
Tel: (514) 283-6607 |
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55 St. Clair Avenue East
Suite 624
Toronto, Ontario M4T 1M2
Tel: (416) 952-9096 |
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Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
Fax: (204) 983-6317 |
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Cornwall Professional Building
2125 - 11th Avenue
Room 103
Regina, Saskatchewan S4P 3X3
Tel: (306) 780-3422 |
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10405 Jasper Avenue
Suite 520
Edmonton, Alberta T5J 3N4
Tel: (780) 495-3224 |
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530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
Fax: (604) 666-8322 |
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Secretary General |
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This document is available
in alternative format upon request, and may also be examined in PDF
format or in HTML at the following Internet site: http://www.crtc.gc.ca |
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Footnote:
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