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Ottawa, 26 November 1986
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Decision CRTC 86-1127
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The Rimouski Broadcasting Company Limited Rimouski, Quebec - 852485200
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Radio Côte-Nord Inc. Baie-Comeau, Quebec - 853344000
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Les Communications Matane Inc. Matane, Quebec - 841495500
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La Radio communautaire du Comté Mont-Joli, Quebec - 852202100
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Jean-Hugues Guénette, representing a company to be incorporated Mont-Joli, Quebec - 851275800
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Radio communautaire du Bas St-Laurent Inc. Rimouski, Quebec - 853380400
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CJMF-FM Ltée Rimouski, Quebec - 853366300
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Introduction
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At a Public Hearing in Sainte-Foy, Quebec on 16 June 1986, the Commission examined the proposals presented by the seven applicants noted above for broadcasting licences for new French-language radio stations to serve the Rimouski, Mont-Joli, Matane and Baie-Comeau regions. The Commission had issued a call for applications on 16 October 1985 (Public Notice CRTC 1985-229), after receiving applications to provide an FM radio service to serve Matane and Rimouski and AM and FM radio services to serve Mont-Joli.
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Except for Jean-Hugues Guénette, who proposed to operate an AM station to serve Mont-Joli, all the applicants proposed to operate new FM stations. Although most of the proposals were for regional stations limited to their immediate markets, The Rimouski Broadcasting Company Limited and CJMF-FM Ltée proposed to operate relatively powerful stations whose signals could be picked up in the Rimouski/Mont-Joli, Baie-Comeau and possibly Matane markets. The Commission also notes that these two applicants proposed to establish a new FM station in Rimouski on the frequency 104.5 MHz. The applications, therefore, were competing with respect to the proposed markets, and two were technically mutually exclusive.
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The markets
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In total the applicants' target markets have a population of approximately 100,000, of which more than half live in the urban community of Rimouski, Mont-Joli and Bic. The Baie-Comeau market has a population of about 30,000 and Matane 17,000. More than 40% of this population is in the 15 to 34 age group.
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No private commercial FM station serves these markets at the present time. The Rimouski/Mont-Joli market is served by a private AM station, CFLP Rimouski; a community FM station, CKLE-FM Rimouski, which is a party to this proceeding and has applied to become a commercial independent station; and two CBC stations, CJBR and CJBR-FM Rimouski. The Matane market is served by a private AM station, CHRM Matane, and a CBC station, CBGA Matane, while the Baie-Comeau market is served by a private AM station, CHLC Baie-Comeau.
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In its deliberations following the hearing, the Commission considered whether the markets could support new private radio stations and whether the proposed services responded to a real demand.
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The three private AM stations, CFLP Rimouski, CHRM Matane and CHLC Baie-Comeau, which are also party to this proceeding and propose to operate joint FM stations, hold clearly dominant positions in their respective core markets with regard to ratings, and their financial positions vary from good to very good. CHLC, however, went through a difficult period between 1979 and 1982, and in 1982 CKBH Baie-Comeau closed down after only two years of operation.
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Furthermore, the indicators examined by the Commission, in particular the radio advertising sales index as compared to overall retail sales and the total advertising revenue of the existing stations show that, in general, regional radio stations currently garner a fair portion of the revenue available for radio and that part of their present revenue could be affected by the entry of a new radio station in these markets.
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Based on a review of the material submitted at the hearing, the Commission considers that the Rimouski and Baie-Comeau markets, while in all probability not able to support a new, totally independent radio station, could accommodate an FM station operated on a joint basis with an established AM station without posing a threat to existing stations. The Commission is of the opinion, however, that the Mont-Joli market, with a population of approximately 8,000, could not on its own support a commercial station, and that the Rimouski/Mont-Joli market could not absorb two new stations, one in Mont-Joli and the other in Rimouski. The Commission also notes that advertising revenue in Matane is very limited.
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On the basis of all the evidence at its disposal, the Commission has concluded that there is a real need for new radio services in this region and that the establishment of new FM stations will help to improve the services available, especially for the important sector of younger listeners who are not very well served by the existing stations. Under the circumstances, the Commission regards the operation of new FM stations on a joint basis with AM stations that are already established in the same market as the solution that offers the best chance of success. Mindful of the cost of setting up a new FM service, the Commission considers that this would have the least economic impact on existing stations, by maintaining market balance while offering the widest possible choice of radio services.
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The decision
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In light of the above, a majority of the members of the Commission has decided to approve two of the applications: the proposal by The Rimouski Broadcasting Company Limited for a new Group IV FM station in Rimouski, to be operated on a joint basis with CFLP Rimouski, and that presented by Radio Côte-Nord Inc. for a new Group I FM station in Baie-Comeau, to be operated on a joint basis with CHLC Baie-Comeau.
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The five other competing applications noted above are denied.
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The Commission has also taken into consideration the many interventions received regarding all the applications noted above. In particular, interveners emphasized the importance of providing a quality FM service that truly meets the needs of its listeners and provides news and information services covering each of the regions to be served. The Commission will follow closely the new licensees' efforts in this regard.
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It is a condition of licence that construction of the stations be completed and that they be in operation within twelve 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 twelve months, deem appropriate under the circumstances.
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In view of the fact that the Commission has denied the application by Radio Communautaire du Bas St-Laurent Inc. to become a commercial independent station, it renews today in a separate decision (Decision CRTC 86-1128) the licence for the community station, CKLE-FM Rimouski.
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The Rimouski Broadcasting Company Limited
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The Commission approves the application by The Rimouski Broadcasting Company Limited to operate a French-language FM radio station at Rimouski on the frequency 104.5 MHz (channel 283C), with an effective radiated power of 58,700 watts. The Commission will issue a licence expiring 30 September 1991, subject to the conditions specified in this decision and in the licence to be issued.
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The Commission notes that the new FM station's technical parameters will enable it to cover a vast area on both the south and north shores of the St. Lawrence River. At the hearing, the applicant stated that it intended to serve the greatest possible area, including the Rimouski/Mont-Joli region, the city of Matane, the Matapédia valley and much of the Côte-Nord.
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In its presentation at the hearing and in its intervention, Radio Côte-Nord Inc. asked that any licence issued to an applicant from the south shore of the St. Lawrence River be subject to the condition that no advertising be solicited in the market of CHLC Baie-Comeau. In return, Radio Côte-Nord Inc. would not solicit advertising on the south shore. The applicant, for its part, stated at the public hearing that it would not object to such a condition.
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Therefore, because the Commission is also granting a new FM licence for Baie-Comeau where geographical and socio-economic factors make it an entirely distinct market from the south shore, and in order to promote the establishment of the new station while maintaining a certain balance for the markets affected, it is a condition of this licence that the licensee not solicit local advertising in the Baie-Comeau market and the surrounding areas served by local stations.
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At the hearing, the applicant also pointed out the advantages of operating the new FM station on a joint basis with CFLP, insofar as savings in the areas of management, technical operations and studio facilities will make it possible for more to be allocated to programming. The applicant stated that, as a licensee of both an AM and an FM station, it will ensure that it is offering two really distinct services, and that CFLP will therefore emphasize community services, news, public affairs and political, social and sports events.
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Furthermore, the new FM station will benefit from CFLP's modern newsroom and trained staff, as well as being affiliated to the Nouvelles TéléRadio agency. A full-time reporter and a supplementary employee will be added and assigned exclusively to the FM station's newscasts. According to the applicant's statements at the hearing [TRANSLATION]: "the approach will certainly be different on the FM station," and newscasts will be in-depth and well-researched. The Commission will follow closely the licensee's efforts in this regard and encourages it to ensure that an adequate news and information service is provided for the entire region to be served.
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In its application, the applicant made a commitment to broadcast a level of 20% foreground format programming and a level of 50% combined foreground/mosaic programming. Most of the foreground programming will be produced locally, and the rest is to be purchased from CKMF-FM Montreal and independent production houses. The applicant stated that it will be particularly attentive to the production or purchase of foreground format programming oriented mainly towards music and musicians.
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As noted above, the new station will be operated in the Group IV music format, with a commitment to draw 50% of its category 5 commitment from subcategory 51 (Pop and Rock-Softer) and 50% from subcategory 52 (Pop and Rock-Harder). In view of the limited choice on the FM band in Rimouski and area, the Commission is of the opinion that the proposed musical sound is the best compromise for attaining the widest musical diversity in the market and for serving the largest possible audience.
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The Commission notes that, in its application, the applicant proposed to allocate an annual budget of $500 for the development of Canadian talent, as remuneration for performers at community events. The Commission has examined the revenues projected for the new station and has taken into account the fact that the new station will be operated on a joint basis with CFLP, which has a good financial position, as well as the significant resources available to the licensee through its holding company, Prades Inc. The Commission considers that the level of direct costs proposed by the licensee for the development of Canadian talent is clearly inadequate. In Public Notice CRTC 1986-67 dated 19 March 1986 entitled "French-language Popular Music", the Commission encouraged "the radio industry to develop and participate in joint initiatives such as MUSICACTION" so as to stimulate the production of French-language recordings. In light of the foregoing, the Commission has decided to require the licensee, by condition of licence, to allo-cate a sum of $8,000 annually to MUSICACTION.
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At the hearing, the Commission expressed concern about the applicant's plans to use an automated broadcasting system for nearly 50% of its weekly air-time between 6:00 a.m. and midnight. In response, the applicant explained that this was a new computer-assisted broadcasting system that could relieve staff members of less important and repetitive tasks and encourage their creativity. The applicant also pointed out that the system allows the announcer or operator to interrupt at any time. accordingly, it is a condition of licence that the licensee may use automated broadcasting between 6:00 a.m. and 8:00 p.m. daily, as long as this computerized broadcasting system is used to assist the work of the announcer actually on-air.
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Radio Côte-Nord Inc.
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The Commission approves the application by Radio Côte-Nord Inc. to operate a French-language FM radio station at Baie-Comeau on the frequency 92.5 MHz (channel 223B), with an effective radiated power of 3610 watts. The Commission will issue a licence expiring on 30 September 1989, subject to the conditions specified in this decision and in the licence to be issued. This term will allow the Commission to consider the renwal of this licence at the same time as that of other radio stations in the area.
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This new station will offer the first local FM service in Baie-Comeau and immediate area. The Commission notes that the proposal is modest but realistic in view of the market to be served. Furthermore, considering the fact that Baie-Comeau has a relatively stable and diversified economy, with a higher per capita income than the Canadian average, the Commission is of the opinion that a new FM station, operated on a joint basis with CHLC, offers the applicant the best chance of success.
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The applicant made a commitment to broadcast a level of 20% foreground format programming and 50% combined foreground/mosaic programming. At the hearing, the applicant mentioned the Société historique de la CôteNord, the Société touristique de Manicouagan and the Regional County Municipality as sources of foreground programming. In view of the applicant's limited resources, however, the Commission is concerned about the applicant's intention to produce all of its own foreground format programming, and it will expect the applicant to take the necessary steps to present high quality foreground programming consistent with the FM radio policy.
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The Commission notes that the new station will share CHLC's newsroom and will be affiliated to the Nouvelles Télé-Radio agency. An additional full-time reporter will be assigned exclusively to the FM station [TRANSLATION]: "The newscasts on the two stations will be completely distinct," and will have a high concentration of local and regional content.
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The applicant indicated in its application that the new station's programming will be in the Group I format, drawing a minimum of 70% of its category 5 minimum commitment from subcategory 51 (Pop and Rock-Softer). The applicant also stated that it would broadcast classical, jazz, country and rock music and made a commitment to broadcast a minimum level of 65% French-language vocal music.
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With respect to the promotion of Canadian talent, the applicant outlined its plans to broadcast a weekly program featuring the activities of "Jeunesses musicales" and an introduction to music, as well as reports on cultural activities. The station will also broadcast concerts and public recitals, including the annual recital of the École de musique de Baie-Comeau, for which the applicant will allocate an annual budget of $2,000.
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The Commission pointed out to the applicant that the operation of the FM station within the proposed technical parameters would constitute an under-utilization of a Class B channel. The applicant explained that, with its experience in the region, it should be able to increase the FM station's power very soon in order to provide all listeners in the region with quality service. It added that it expected to better utilize the potential of the channel as soon as possible depending on its financial capacity. The Commission also notes the applicant's commitment during the hearing not to solicit advertising on the south shore of the St. Lawrence River.
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Dissenting opinion by Commissioner Monique Coupal
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In my opinion there is no additional revenue available in these markets to support a new FM radio service.
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Fernand Bélisle
Secretary General
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