The CRTC has held fast to its position on Part III cablecos, and not changed its original conditions for the exemption of cable systems of between 2,000 and 6,000 subscribers (Broadcasting Public Notice 2004-39). In its decision the CRTC notes that the larger Part III cablecos "operate under considerably different financial circumstances" than smaller Class 3 cablecos exempted under the small cable exemption order, many of which serve only a few hundred subscribers or fewer. "In fact, larger (Part III) cable BDU (broadcast distribution undertakings), on average, had lower expenses, including programming-related expenses, and greater revenues and profitability than Class 2 cable BDUs and, in certain cases, even than Class 1 BDUs," notes the CRTC. "Accordingly, the commission found no financial reason to warrant the exemption of these larger Class 3 cable BDUs under relatively lighter conditions than those under which Class 2 cable BDUs would be exempted. Accordingly, the commission has not made any changes to the proposed exemption order with respect to this issue."

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