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Order CRTC 2001-298
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Ottawa, 12 April 2001 |
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CRTC approves in part Bell Canada's application to increase
service charges for channels for program transmission and
broadcast-quality television channels for occasional use
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Reference: Bell Canada Tariff Notice 6493 |
1. |
On 4 July 2000, Bell Canada filed Tariff Notice 6493
proposing to increase the service charge rates for voice channels for
program transmission and for television channels for occasional use. In
the case of channels for program transmission, Bell Canada proposed to
bundle the existing one-time charge for the optional equalization for 8
kHz and 15 kHz operation with the service charge payable for all
installations. The company also proposed to eliminate some service
options for which there are no customers.
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2. |
Bell Canada submitted that service charges do not recover the
associated costs and therefore proposed to increase them. Bell Canada
indicated that the costs for installation of these local program services
exceeded $300 per service point. Bell Canada also noted that alternative
services are available both from the company and its competitors.
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3. |
Interventions were received from Canadian Association of Broadcasters,
Association des radiodiffuseurs communautaires du Québec, Mouvement des
Intervenants (es) en Communications Radio de l'Ontario, Alliance des
radios communautaires du Canada, Métromédia, Radio-Fredericton, CFXM-FM
104,9, Corus Entertainment, La Radio de l'Épinette Noire, CHRL AM 910,
Astral Media, and Télémédia Radio.
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4. |
The interveners submitted that the proposed service charges are too
high. The industry would be unable to absorb the additional cost and
would therefore be required to severely reduce the use of remote
broadcasting. They also stated that remote broadcasting is a substantial
source of advertising revenue and provides an important community
service. The reduced revenue would seriously impact the financial
viability of their operations.
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5. |
Interveners also submitted that the alternate services listed by Bell
Canada were not suitable for their needs.
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6. |
Community radio stations and their association also submitted that, if
the Commission were to approve this proposal, the community radio
stations should be exempt from the rate increase for at least two years.
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7. |
The Commission considers that exempting the community radio stations
from rate increases would constitute unjust discrimination.
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8. |
The Commission notes that there were no specific interventions on the
proposed increases to the service charges for broadcast-quality
television channels for occasional use, or on Bell Canada's proposal to
eliminate some service options.
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9. |
The Commission notes that under Bell Canada's proposal the one-time
charge for the optional equalization feature (currently at $205) would be
bundled with the proposed new service charge. For customers who do not
use the optional equalization, this bundling would raise the service
charge from the current $50 to the proposed $350 without any
corresponding benefits.
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10. |
Accordingly, the Commission denies the proposed restructuring of the
service charge for channels for program transmission (Tariff Items
4600.7, 4600.8 and 4600.9). However, the Commission considers that rates
should move closer to costs and accordingly, in place of the proposed
restructuring, approves rate increases for the service charge for
full-time and occasional-use local channels to $60 per service point from
the existing $50, and to the one-time charge for equalization to $240
from the existing $205.
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11. |
The other proposals in TN 6493
are approved.
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12. |
Bell Canada is to issue revised tariff pages forthwith.
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Secretary General
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This document is available in alternative format upon request and
may also be examined at the following Internet site: http://www.crtc.gc.ca |