ARCHIVED -  Decision CRTC 94-629

Decision

Ottawa, 16 August 1994

Decision CRTC 94-629

Golden West Broadcasting Ltd.

Calgary, Alberta - 932346000Calgary, Alberta - 932347800 - 932348600

Conversion of an AM station to FM and acquisition of assets

Following a Public Hearing in Saskatoon beginning on 6 June 1994, the Commission approves the application by Golden West Broadcasting Ltd. (Golden West) for a broadcasting licence for an English-language Group I (Pop, Rock and Dance) FM radio programming undertaking at Calgary, on the frequency 96.9 MHz, channel 245C, with an effective radiated power of 100,000 watts.

The Commission notes that Notice of Public Hearing CRTC 1994-4, dated 8 April 1994 incorrectly stated that the frequency 96.5 MHz would be used.

The Commission will issue a licence to Golden West expiring 31 August 1999, subject to the conditions specified in this decision and in the licence to be issued, upon surrender of Golden West's current licence for CFXL Calgary.

The Commission is of the view that approval of this application should have little impact on existing undertakings in the Calgary market, since the new FM will replace an existing AM station, and therefore no increase in the number of stations will result. In approving this application, the Commission has also taken into account the technical and financial difficulties experienced by the licensee. It notes that the quality of service to the audience, in particular the night-time reception, will be enhanced as a result of this approval.

The Commission notes the intervention to this application by Redmond Broadcasting Inc., licensee of CKRY-FM Calgary, and is satisfied with the licensee's response to the concerns raised.

Acquisition of assets

The Commission also approves the applications by 566656 Alberta Ltd. (566656) for authority to acquire the assets of CFFR Calgary from Rawlco Communications Ltd. (Rawlco), and the new Calgary FM herein approved from Golden West, and for broadcasting licences to continue the operation of these undertakings.

The company that will acquire the new FM from Golden West and the AM from Rawlco, namely 566656, is jointly owned by Rawlco (82.5%) and Golden West (17.5%).

The Commission will issue licences to 566656, expiring 31 August 1999, upon surrender of the current licences. The licences will be subject to the same conditions as those in effect under the current licences, as well as to any other condition specified in this decision and in the licences to be issued.

Based on the evidence filed with the application, the Commission has no concerns with respect to the availability or the adequacy of the required financing.

Because the Commission does not solicit competing applications for authority to transfer effective control of broadcasting undertakings, the onus is on the applicant to demonstrate to the Commission that the application filed is the best possible proposal under the circumstances, taking into account the Commission's general concerns with respect to transactions of this nature. As a first test, the applicant must demonstrate that the proposed transfer will yield significant and unequivocal benefits to the community served by the broadcasting undertaking and to the Canadian broadcasting system as a whole, and that it is in the public interest.

The Commission has assessed the benefits package identified by the applicant as flowing from this transaction and, in general, is satisfied that it is significant and unequivocal, and that approval of the transaction is in the public interest.

The Commission notes that, as a part of the benefits package to this transaction, 566656 proposed annual spending of $50,000, made up of yearly contributions of $35,000 to FACTOR, $10,000 to Digital Radio Research Inc., and $5,000 to Canadian Women in Radio and Television. The Commission has determined that the incremental value of this benefits package is $29,000 per year. In reaching this figure, the Commission noted the applicant's statement that the annual $50,000 commitment includes the existing $6,000 annual commitment of Golden West for CFXL, approved in Decision CRTC 92-604. The Commission has, however, also taken into consideration the notation in that decision that the annual direct cost contributions towards Canadian talent development of $15,000, committed to by the former owner of CFXL was also assumed by Golden West at the time of its purchase of CFXL.

The Commission reaffirms the particular importance it attaches to the development of Canadian talent and is satisfied with the annual budgets and the initiatives proposed by the applicant in this respect. It encourages the licensee, during the new licence term, to continue its efforts towards the support, development and on-air exposure of local and regional talent.

In Public Notice CRTC 1992-59 the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment. In keeping with the Commission's policy, it encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

It is a condition of each licence that the licensee adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and approved by the Commission.

It is also a condition of each licence that the licensee adhere to the provisions of the CAB's "Broadcast Code for Advertising to Children", as amended from time to time and approved by the Commission.

The Department of Industry Science and Technology (DIST) has advised the Commission that this application is conditionally technically acceptable, and that a Broadcasting Certificate will only be issued once it has been determined that the proposed technical parameters will not create any unacceptable interference with aeronautical NAV/COM services.

In accordance with subsection 22(1) of the Broadcasting Act, the Commission will only issue the licence and the authority granted herein may only be implemented, at such time as written notification is received from DIST that its technical requirements have been met, and that a Broadcasting Certificate will be issued.

It is a condition of licence that the authority granted herein be implemented within twelve months of the date of receipt of the DIST notification referred to in the preceding paragraph or, where the licensee applies to the Commission within this period and satisfies the Commission that it cannot complete implementation before the expiry of this period and that an extension is in the public interest, within such further periods of time as are approved in writing by the Commission.

Allan J. Darling
Secretary General