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Decision
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Ottawa, 10 March 1987
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Decision CRTC 87-166
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Telemedia Communications Inc. and Muskoka-Parry Sound Broadcasting Limited, on behalf of a company to be incorporated
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Bracebridge, Ontario - 861381200
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Muskoka-Parry Sound Broadcasting Limited
Huntsville and Bracebridge, Ontario - 861383800
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Hugh and Michael Mackenzie, representing a company to be incorporated
Bracebridge, Ontario - 861249100
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Rogers Broadcasting Limited
Toronto and Bracebridge, Ontario - 861248300
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At a Public Hearing held in the National Capital Region on 1 December1986, the Commission considered competing applications by Telemedia Communications Inc. and Muskoka-Parry Sound Broadcasting Limited, on behalf of a company to be incorporated (Telemedia-Muskoka Broadcasting) and by Hugh and Michael Mackenzie, representing a company to be incorporated (the Mackenzies) for an FM licence to serve Bracebridge.
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Telemedia-Muskoka Broadcasting proposed the use of the 107.7 MHz frequency (channel 299B) with an effective radiated power of 5,000 watts while the Mackenzies proposed to use the 97.7 MHZ frequency (channel 249C) with an effective radiated power of 50,000 watts.
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In view of the limited ability of this market to support a fully independent undertaking, both applicants proposed to provide a certain amount of locally-originated programming supplemented by programming originating from other stations via proposed network operations. Accordingly, the Commission received related applications, also considered at this public hearing, for English-language FM radio network licences.
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Muskoka-Parry Sound Broadcasting Limited (Muskoka Broadcasting) proposed a network consisting of its FM station in Huntsville, recently approved in Decision CRTC 87-150 dated 2 March 1987, and the Bracebridge FM station it has proposed in conjunction with Telemedia Communications Inc. (Telemedia). In the case of Rogers Broadcasting Limited (Rogers), the network would link CHFI-FM Toronto with the new Bracebridge FM station proposed by the Mackenzies.
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Background
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On 25 February 1986, the Commission denied similar applications by the Mackenzies and Rogers Radio Broadcasting Limited for a new English-language FM station at Bracebridge and for a radio network operation (Decision CKTC 86-136). In the same decision, it also denied a competing application by Joseph F. Duchesne, representing a company to be incorporated, for an FM licence to serve Bracebridge.
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Despite the denials, the Commission acknowledged a demand and a need for a radio station to serve the South Muskoka market. Subsequently, in Public Notice CRTC 1986-88 dated 18 April 1986, it issued a call for applications for an FM licence to serve South Muskoka (Bracebridge and Gravenhurst). In response to the call, it received new applications from the Mackenzies and from Telemedia, currently the licensee of CFOR Orillia, in association with Muskoka Broadcasting, which is indirectly controlled by Mr. Duchesne. Each applicant proposed to operate its new FM station in the Group I music format.
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The Decision
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In arriving at its decision, the Commission has taken into account the submissions of the parties involved, as well as all the interventions received in response to these applications. In particular, it has considered the many expressions of support for a South Muskoka radio service as well as the concerns expressed by Playland Broadcasting Limited, licensee of CKLP-FM Parry Sound, and CHAY Limited, licensee of CHAY-FM Barrie, about the potential negative effect of such a service on existing area broadcasters.
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The Commission has also taken into account the limited capacity of this market to support a stand-alone operation, the relative similarity in the Telemedia-Muskoka Broadcasting and the Mackenzies' applications with respect to locally-originated programming and the substantial differences in their proposals for programming in non-local time periods, as well as the technical parameters.
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Based on all the information available, the Commission considers that the Telemedia-Muskoka Broadcasting proposal to provide complementary regionally-oriented programming from Huntsville has greater merit than the competing proposal to provide Toronto-originated programming. It is also of the view that the FM operation proposed by this applicant should have less of an impact on existing broadcasters, including Muskoka Broadcasting at Huntsville. In this regard, the Commission has taken into consideration the fact that the Mackenzies' new FM station would reach both Huntsville and Parry Sound, as well as Muskoka Broadcasting's statement at the hearing that it would lose some national advertising revenues in Huntsville if the competing applications were approved.
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The Commission therefore has decided to allow two broadcasters with experience in adjacent small markets and a strong interest in minimizing the impact on the existing stations to provide FM radio service to the underserved Bracebridge-Gravenhurst area. In this regard, it has noted Telemedia-Muskoka Broadcasting's intention not to solicit advertising in Parry Sound as well as Telemedia's undertaking that CFOR Orillia will discontinue soliciting advertising in Gravenhurst. It has also taken into account Telemedia's experience in markets of similar size in Ontario and Quebec and its expressed interest in enhancing regional news programming through the exchange of material among its radio stations in the area.
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Accordingly, the Commission approves the application by Telemedia-Muskoka Broadcasting to operate an English-language FM station in Bracebridge but, as discussed at the hearing, on a Class A frequency to be agreed upon by the new licensee and the Department of Communications. The Commission also approves Muskoka Broadcasting's application for an English-language FM radio network operation consisting of the new Bracebridge FM station and its FM undertaking in Huntsville.
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The competing applications by the Mackenzies and Rogers are therefore denied.
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The Commission will issue licences expiring 31 August 1991, to the company to be incorporated and to Muskoka-Parry Sound Broadcasting Limited, subject to the conditions specified in this decision, including those related to the FM frequency, and those which will be contained in the licences 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. Telemedia-Muskoka Broadcasting had proposed to use the Class B frequency 107.7 MHz, with an effective radiated power of 5,000 watts. The Commission notes that this proposal represents an underutilization of this Class B frequency and that the proposed coverage can be achieved by using a Class A frequency.
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In accordance with paragraph 22(1)(b) of the Broadcasting Act, the Commission will issue an FM licence to the applicant if it is in receipt of written notification from the Department of Communications, within four months of the date of this decision, that a Class A frequency has been found for this FM undertaking and that it will issue a Technical Construction and Operating Certificate. No licence will be issued if the Commission does not receive this notification within said period, or such further period as the Commission may, upon receipt of a request for extension before the expiry of the said four months, deem appropriate under the circumstances.
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The Commission notes that the coverage areas of the two FM stations at Huntsville and Bracebridge will overlap and considers this overlap acceptable so long as locally-originated programming constitutes a significant part of the Bracebridge FM's program- ming schedule. It notes also Tele media's statement at the hearing that it would reduce the power of CFOR Orillia, if necessary, to avoid overlap with the new Bracebridge station.
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As proposed, the Bracebridge FM station will provide 491/2 hours of locally-originated programming per week, of which 47 hours will be broadcast during the broadcast week, as defined in the Radio Regulations, 1986, and in peak listening hours. The Commission notes that Telemedia-Muskoka Broadcasting indicated at the hearing that this is a minimum commitment which would be increased as the station's revenues permit.
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The remaining programming, to be provided by the Huntsville FM station, will include a certain amount of CBC AM network programming. During network programming periods, South Muskoka listeners will have access to the Huntsville studios via a toll-free phone line for participation in buy-and-sell programs and contests, and for local news and public affairs information.
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With respect to the CBC programming and as discussed at the hearing, it is a condition of the FM licence that the Bracebridge station be operated as an affiliate of the CBC and that a copy of the affiliation agreement be filed with the Commission.
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The Commission notes that the company to be incorporated will be effectively controlled by Telemedia. As described at the hearing, Telemedia will provide the financial resources and stability necessary for a successful FM operation, while Muskoka Broadcasting will provide local management and network programming. According to the terms of their current one-year agreement, Telemedia agrees not to alter the signal of Muskoka Broadcasting's Huntsville FM station or to cancel any network programming without Muskoka Broadcasting's prior approval.
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The Commission expects these stipulations to be included in the new agreement to be concluded between the licensee of the Bracebridge FM station and Muskoka Broadcasting and filed with the Commission, once the new licensee company has been incorporated.
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In the area of Canadian talent, Telemedia-Muskoka Broadcasting has allocated an annual budget of $3,500 to a local and regional talent search, culminating in a half-hour program featuring winning recordings by finalists from each of Gravenhurst, Bracebridge and Huntsville. The winner will receive $500 worth of recording studio time, as well as air-play on the Bracebridge and Huntsville FM stations and all Telemedia radio stations in Ontario. The licensee will also contribute $1,000 annually to FACTOR/CTL.
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It is a condition of the FM licence that construction of the station be completed and that it be in operation within twelve months of the date of receipt of written notification from the Department of Communications that it will issue a Technical Construction and Operating Certificate 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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It is a further condition of the FM licence that the new licensee adhere to the CAB self-regulatory guidelines on sex-role stereotyping, as amended from time to time and accepted by the Commission.
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Fernand Bélisle
Secretary General
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