ARCHIVED -  Decision CRTC 94-108

Decision

Ottawa, 25 March 1994

Decision CRTC 94-108

Les Média Acadiens Universitaires Inc.

Moncton, New Brunswick - 930055900

CKUM-FM licence amendments denied

Following a Public Hearing in Fredericton beginning on 7 December 1993, the Commission denies the application to amend the licence for the campus/community FM radio programming undertaking CKUM-FM Moncton by changing the station frequency from 105.7 MHz (channel 289LP) to 94.5 MHz (channel 233B), by increasing the transmitter power from 50 watts to an effective radiated power of 13,300 watts, and by relocating the transmitter at Lutes Mountain near Moncton.

The Commission notes that, under this proposal, the status of CKUM-FM would have changed from that of a station authorized to serve the metropolitan Moncton area to one whose regional service would have covered almost all of southeastern New Brunswick. Such a change would alter the balance between the radio services authorized to operate in this region.

In denying the application as filed, the Commission has taken into particular account the impact of the proposed technical modifications on the financial situation of the other radio services authorized to operate in the Moncton area. The Commission also considers that there are other technical solutions to CKUM-FM's coverage problems.

Several interventions were submitted in support of this application by individuals, organizations and businesses in the Moncton area.

The Commission also notes the intervention presented at the hearing by Radio Beauséjour Inc. (Radio Beauséjour), licensee of the French-language community radio station licensed to serve Shediac (Decision CRTC 93-171 dated 28 May 1993), and scheduled to commence broadcasting in 1994. The intervener stated that it would support proposed new technical facilities for the station and a power upgrade that would allow CKUM-FM to cover all of Greater Moncton. However, Radio Beauséjour opposed the proposed power increase as it would allow the campus station to cover all of southeastern New Brunswick, and also opposed the applicant's plan to solicit advertising outside Greater Moncton. The intervener was of the opinion that CKUM-FM should abide by its initial mandate and remain focused on serving the University of Moncton student community so as to ensure the long-term survival of Radio Beauséjour.

Written interventions expressing conditional support for the application were filed by the Alliance des radios communautaires du Canada Inc.; la Société des Acadiens et Acadiennes du Nouveau-Brunswick and its chapter council for Petitcodiac; l'Association des radios communautaires acadiennes du Nouveau-Brunswick; la Coopérative Radio Restigouche Ltée; la Fédération des Jeunes Francophones du Nouveau-Brunswick Inc.; and la Société Nationale de l'Acadie. These interveners asked the Commission to ensure that the applicant's proposals are compatible with the community radio service soon to be offered by Radio Beauséjour in the area, and that the Commission's decision take into account the concerns expressed by Radio Beauséjour.

The Commission also acknowledges the opposing interventions presented at the hearing by Atlantic Stereo Ltd., licensee of CJMO-FM, and Maritime Broadcasting System Ltd., licensee of CKCW and CFQM-FM. These are the three private English-language stations serving Moncton. Both of these licensees expressed concern regarding the magnitude of the power upgrade proposed by CKUM-FM and the increased fragmentation of the audience and advertising market that would result.

In its application, the licensee stated that it cannot adequately serve the entire Greater Moncton community at its current transmitter power, and that the proposed technical modifications were intended to extend coverage to a larger audience, generate more advertising revenue and, thereby, help the station to become financially self-sufficient. The licensee emphasized that no major programming changes are planned, that the orientation of the station would remain the same, that is, to serve the students and the immediate area around Moncton, and that the station would retain its urban focus.

CKUM-FM is currently licensed as a low-power station with an official contour approximately 10 kilometres in diameter. Under the applicant's proposal, CKUM-FM would become a Class B station with an official contour extending up to 65 kilometres from Moncton.

The applicant's proposal gives further cause for concern because of the Commission's approval of the application by Radio Beauséjour to carry on a French-language community radio station in Shediac less than one year ago. This station, which is scheduled to go on the air in the coming months, will have a specifically regional mandate to serve all the southeastern part of the province, including Moncton and the surrounding area.

The Commission also took into account the financial situation of one of Moncton's English-language stations, CJMO-FM. This station began broadcasting in 1987, but has not earned any profit before interest and income tax and has accumulated considerable debt in its five years of operation.

Regarding the applicant's proposal to make the station more financially self-supporting, the Commission notes that, in Decision CRTC 93-160 dated 17 May 1993, it approved an amendment to CKUM-FM's licence to permit it to broadcast unrestricted advertising. At the hearing the applicant acknowledged that this decision had contributed to the significant increase in its advertising revenue in recent years. The Commission notes that CKUM-FM's advertising revenue has more than tripled between 1992 to 1993, and that, based on the figures for the first quarter of the current year, the applicant forecasts a further increase of more than 25% in 1994.

The Commission acknowledges that the Moncton topography causes coverage problems for CKUM-FM in some parts of the city, including the Dieppe area. The applicant stated that a study it had conducted in 1992 indicated that signal reception was satisfactory for about 60% of metropolitan Moncton residents. However, it acknowledged at the hearing that coverage problems were not the primary motivation for this application, and that other technical solutions could be found.

The Commission encourages the applicant to consider other technical solutions for the coverage problems of CKUM-FM in the metropolitan Moncton area.

Secretary General
Allan J. Darling