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Broadcasting Decision CRTC 2006-610
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Ottawa, 26 October 2006 |
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Bell ExpressVu Inc. (the general
partner), and BCE Inc. and 4119649 Canada Inc. (partners in BCE Holdings
G.P., a general partnership that is the limited partner), carrying on
business as Bell ExpressVu Limited Partnership
Across Canada |
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Application 2006-0718-7
Broadcasting Public Notice CRTC 2006-80
28 June 2006 |
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Licence amendment to replace the condition of licence relating to
the use of local availabilities in non-Canadian satellite services
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In this decision, the Commission
approves an application by Bell ExpressVu Limited Partnership to
amend the broadcasting licence for its national direct-to-home satellite
distribution undertaking in order to replace the existing condition of
licence relating to the use of local availabilities. |
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The application
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1. |
The Commission received an application by
Bell ExpressVu Inc. (the general partner), and BCE Inc. and 4119649
Canada Inc. (partners in BCE Holdings G.P., a general partnership that
is the limited partner), carrying on business as Bell ExpressVu Limited
Partnership (Bell ExpressVu), to amend the broadcasting licence
for the national direct-to-home (DTH) satellite distribution undertaking
in order to replace the existing condition of licence relating to the
use of local availabilities, which reads: |
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The licensee may, at its option, insert certain promotional
material as a substitute for the "local availabilities" (i.e.,
non-Canadian advertising material) of non-Canadian satellite
services. At least 75% of these local availabilities must be made
available for use by licensed Canadian programming services for the
promotion of their respective services, for the promotion of the
community channel and for unpaid Canadian public service
announcements. A maximum of 25% of the commercial availabilities may
be made available for the promotion of discretionary programming
services and packages, customer service information, and channel
realignments.
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with the following condition of licence:
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The licensee may, at its option, insert certain promotional
material as a substitute for the "local availabilities" (i.e.,
non-Canadian advertising material) of non-Canadian satellite
services. At least 75% of these local availabilities must be made
available for use by licensed Canadian programming services for the
promotion of their respective services, for the promotion of the
community channel and for unpaid Canadian public service
announcements. A maximum of 25% of the local availabilities
may be made available for the promotion of discretionary programming
services and packages, customer service information, channel
realignments and non-programming services, including Internet and
telephone services. [emphasis added]
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2. |
Bell ExpressVu submitted that this proposal
is consistent with the Commission’s new policy for the use of local
availabilities as set out in Promotion of non-programming services
using local availabilities, Broadcasting Public Notice CRTC 2006-69,
2 June 2006 (Public Notice 2006-69).
Bell ExpressVu noted that the Commission’s approval would provide
parity with the incumbent Class 1 cable broadcasting distribution
undertakings (BDUs). It also noted that the use of local availabilities
by Bell ExpressVu to promote cross-platform packages including both
programming and non-programming services could lead to higher penetration
of licensed broadcasting services, which is consistent with the objectives
of the Broadcasting Act. |
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Intervention
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3. |
The Commission received an intervention in
opposition to this application by the Canadian Cable Systems Alliance
Inc. (CCSA). |
4. |
The CCSA stated that while it supported the
right of all BDUs to use the local availabilities on U.S. Specialty
services to promote the full range of their services to their own
customers, it had concerns with this particular application since Bell
ExpressVu also holds a satellite relay distribution undertaking (SRDU)
licence. |
5. |
The CCSA noted that, since Bell ExpressVu
provides the same feeds to the cable affiliates served under its SRDU
licence as it provides to its DTH subscribers, the advertising contained
in the local availabilities from its DTH services is also included in
the SRDU signals transported to cable head-ends. SRDU services have,
however, never been authorized to insert advertising in the signals they
provide to cable BDUs. |
6. |
The CCSA argued further that larger cable
BDUs that use SRDU services can insert their own advertising over that
in the SRDU signals, but that smaller cable BDUs cannot afford
advertising insertion equipment for all of the U.S. Specialty services
they carry. Consequently, the CCSA was of the view that it is unfair
that smaller cable BDUs be forced to pay for SRDU signals that promote
the services of their DTH competitors. The CCSA submitted that Bell
ExpressVu should either a) be required to offer separate feeds of
non-Canadian programming services containing local availabilities to
SRDU customers, or b) be prohibited from using the local availabilities
on the U.S. Specialty services to promote affiliated services that
compete directly with those of the cable BDUs that purchase services
from the SRDU. |
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Bell ExpressVu’s reply
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7. |
In reply to the CCSA, Bell ExpressVu noted
that the CCSA’s intervention focused on issues related to its SRDU
licence, while the current application relates to its DTH licence.
Consequently, Bell ExpressVu submitted that it would be inappropriate
for the Commission to place conditions of licence on an SRDU within the
context of the present application. |
8. |
Bell ExpressVu also stated that the
economics of the CCSA proposal make it impractical. On the one hand, if
Bell ExpressVu was required to offer separate feeds of U.S. Specialty
services that are free of advertising, these feeds would occupy the
equivalent of an entire satellite transponder or more, which would be
prohibitively expensive to operate. On the other hand, Bell ExpressVu’s
DTH undertaking might have to drop discretionary revenue-producing
services in order to make room for duplicate signals. |
9. |
In addition, Bell ExpressVu argued that
very few CCSA members use its SRDU services, and that the services Bell
ExpressVu would promote using local availabilities are, in many cases,
not competitive with those offered by CCSA members. Bell ExpressVu also
noted that CCSA members have alternate means of receiving these
services: many receive the U.S. Specialty services directly from a U.S.
satellite in the same way that Bell ExpressVu receives them, with only a
modest capital outlay required. |
10. |
Finally, Bell ExpressVu noted that its
application would affect only 25% of the local availabilities, and that
only a portion of these would be used to promote non-programming
services. Furthermore, Bell ExpressVu stated that some of the
non-programming services that it would promote are not even available in
the licensed service areas of the CCSA members. |
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Commission’s analysis and determinations
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11. |
The use of local availabilities, as proposed
by Bell ExpressVu, was addressed in detail in Public Notice 2006-69.
In that notice, the Commission set out its conclusion that it is appropriate
to update its policy with respect to the use of local availabilities
to permit BDUs to use these availabilities to promote non-programming
services, subject to certain conditions. |
12. |
With respect to the issues raised by the
CCSA, the Commission notes Bell ExpressVu’s arguments in reply that: (a)
CCSA members have alternate means of receiving these services, with many
of them receiving the signals directly from a U.S. satellite; (b) very
few CCSA members obtain these signals from Bell ExpressVu; (c) the
application relates to only 25% of the local availabilities, with only a
part of that 25% used to promote non-programming services; and (d) the
services Bell ExpressVu would promote using local availabilities are, in
many cases, not available in the licensed territories of CCSA members
and would therefore not be competitive with services offered by CCSA
members. |
13. |
In light of the above, the Commission concludes
that approval of the application would not have a significant impact
on CCSA members. The Commission is therefore not persuaded that denial
of the application is warranted, or that the circumstances are such
that it should impose a requirement that separate feeds of U.S. Specialty
services be provided. Accordingly, and consistent with the policy
established in Public Notice 2006-69,
the Commission approves the application by Bell ExpressVu Inc.
(the general partner), and BCE Inc. and 4119649 Canada Inc. (partners
in BCE Holdings G.P., a general partnership that is the limited partner),
carrying on business as Bell ExpressVu Limited Partnership, and
amends the broadcasting licence for the national direct-to-home satellite
distribution undertaking, by replacing the existing condition of licence
relating to the use of local availabilities with the following condition
of licence: |
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The licensee may, at its option, insert certain promotional
material as a substitute for the "local availabilities" (i.e.,
non-Canadian advertising material) of non-Canadian satellite
services. At least 75% of these local availabilities must be made
available for use by licensed Canadian programming services for the
promotion of their respective services, for the promotion of the
community channel and for unpaid Canadian public service
announcements. A maximum of 25% of the local availabilities may be
used to provide subscribers with information regarding customer
service and channel realignments, and for the promotion of
discretionary programming services and packages and non-programming
services, including Internet and telephone services.
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Secretary General |
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This decision is to be appended to the
licence. It 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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