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Ottawa, 3 December 1986
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Decision CRTC 86-1174
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Mervyn Russell, representing a company to be incorporated Saint John, New Brunswick - 860859800
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New Brunswick Broadcasting Co. Limited Saint John, New Brunswick - 853322600
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At a Public Hearing in Saint John commencing 9 September 1986, the Commission considered applications by the parties noted above for broadcasting licences to operate English-language FM radio stations at Saint John. The proposal by Mervyn Russell, representing a company to be incorporated, (Russell) is for an independent Group I station, while New Brunswick Broadcasting Co. Limited (N.B. Broadcasting) is seeking a joint FM licence to operate a Group II station.
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The Commission notes that although Saint John is the largest community in the province, it is underserved in comparison with other New Brunswick centres in terms of the number of existing radio stations in relation to population. There has been no new radio service in this community since 1965 and, at present, there are just a CBC station, CBD Saint John, and three commercial radio stations: CFBC (Contemporary) and CJYC-FM (Group I), owned by Fundy Broadcasting Co. Ltd., and CHSJ (Country), licensed to N.B. Broadcasting.
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From its assessment of the market and of the applications, the Commission is satisfied that there are both a demand and need for a new radio service. In this regard, it has taken into account the numerous interventions submitted by the local community in support of the establishment of a new FM radio station. It has also considered the broadcasting experience of each of the applicants, as well as the financial resources at their disposal.
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Based on all the evidence available, the Commission considers that the Russell proposal better meets the needs of the Saint John community at this time.
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In making its determination, the Commission has taken into account the results of a market study commissioned by Russell in which a significant number of respondents indicated a desire for middle-of-the-road and soft rock music, and adults between the ages of 25 and 44 in particular favoured an improvement in local radio service and an adult approach to information.
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Furthermore, in terms of diversity of service, the Commission has compared the Beautiful Music MOR sound proposed by this applicant to the Contemporary MOR sound of CJYC-FM and it is satisfied that the new station will enhance the choice of radio services in this market, given the wide variety of distinctive sounds encompassed by the Group I format.
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Accordingly, the Commission approves the Russell application for a broadcasting licence for an independent English-language FM radio station at Saint John on the frequency 100.5 MHz, channel 263, with an effective radiated power of 100,000 watts. The application by N.B. Broadcasting is denied.
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The Commission will issue a licence to the company to be incorporated expiring 30 September 1990, subject to the conditions specified in this decision and in the licence to be issued.
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This authority will only be effective at such time as the Commission receives documentation establishing that the company has been incorporated in accordance with the application in all material respects.
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The Commission notes that Eastern Broadcasting Co. Ltd. (Eastern) will hold effective control of the company to be incorporated as the principal shareholder with 70% of the issued voting shares, and that Mervyn Russell will hold the remaining 30%. It notes further that Eastern currently holds effective control of the licensees of seven other radio stations in the Maritimes.
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In a related decision issued today (Decision CRTC 86-1173), the Commission has approved a transfer of 90% of Eastern's issued voting shares to Maritime Broadcasting Company Limited, a wholly-owned subsidiary of Maclean-Hunter Limited and currently the licensee of two Halifax radio stations. In light of the significant benefits, including enhanced financial stability, to be realized from this transaction, the Commission has imposed a condition of licence requiring the new licensee to expend $30,000 annually in direct costs in support of Canadian talent. This requirement is addressed later in this document.
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At the hearing, Russell described the programming service to be provided by the new station. In terms of sound, the music programming will be "older, slower paced, less rock-oriented and generally more appealing to adults 35 and older." The Commission notes also that 10% of all music broadcast will be new, untried material.
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Spoken word programming will be geared to the adult interests identified by respondents to the market study, including family and childrearing, the two-income family, city living and urban social problems. In this regard, the applicant will hire an enrichment editor who will have "the resources and the abilities to make these issues the thrust of the station's enrichment."
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In the area of news, the applicant has proposed to broadcast half-hour news magazine presentations featuring 90% local, provincial and regional news, each weekday at 7:30 a.m., 12:30 p.m. and 5:30 p.m. The midday edition, "The Provincial", will place particular emphasis on reports from Fredericton, where a full-time reporter will cover proceedings of the provincial legislature and other activities in the capital. The Fredericton bureau reporter will also host a Sunday public affairs magazine program, entitled "The Capital Connection", which will provide a weekly review of events in Maritime capital cities in co-operation with CHFX-FM Halifax and CHLQ-FM Charlottetown.
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Notwithstanding the public affairs magazine presentations, the applicant depends heavily on musical themes in its proposed foreground presentations. The Commission expects the applicant to develop other types of foreground programming in order to expand the diversity of service provided by the new station.
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The Commission notes that Russell's plans in the area of Canadian talent development include the allocation of a total of $18,000 in direct and indirect costs. The applicant proposes to establish a New Brunswick Songwriters' competition, offering a professional recording session to the winner and $5,000 in awards, and to produce a one-hour program featuring contest highlights and interviews with the finalists. A further $10,000 worth of air-time will be made available for highlights of the annual New Brunswick Music Festival, the promotion of Canadian record releases and the exposure of New Brunswick talent and visiting Canadian artists. The applicant has also allocated an annual budget of $3,000 for Canadian syndicated programs.
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As noted in a number of recent decisions, the Commission attaches particular importance to the support and development of Canadian talent. In this case, it requires the applicant, as a condition of licence, to increase its proposed annual contributions in this area to $30,000 in direct expenses.
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The Commission has noted the opposing interventions by Radio One Ltd., licensee of CKHJ and CIHI-FM Fredericton, and by Atlantic Stereo Limited, licensee of CJMO-FM Moncton which was approved in Decision CRTC 86-702 dated 5 August 1986 and is currently under construction. Both interveners expressed concern with the potential detrimental effects of a new service on broadcasters in Fredericton and Moncton. At the hearing, the Commission discussed with the applicant the matter of accepting advertisements from these markets. Consistent with the applicant's undertaking, the Commission expects Russell not to solicit advertising from the Fredericton and Moncton areas.
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It is a condition of this licence that construction of the station be completed and that it 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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Fernand Bélisle
Secretary General
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