ARCHIVED -  Decision CRTC 95-131

Decision

Ottawa, 4 April 1995

Decision CRTC 95-131

Four Seasons Radio Ltd.

Kelowna, British Columbia - 930451000

New FM Radio Licence

Following a Public Hearing in Vancouver beginning on 1 November 1994, the Commission, by majority vote, approves the application for a broadcasting licence for an English-language (Group II-Country) FM radio programming undertaking at Kelowna on the frequency 99.9 MHz, channel 260B, with an effective radiated power of 11,000 watts.

The Commission will issue a licence expiring 31 August 1997, subject to the conditions specified in this decision and in the licence to be issued.

This term will enable the Commission to consider the renewal of this licence at the same time as that of other radio stations in the area.

Four Seasons Radio Ltd. (Four Seasons) is the licensee of AM radio station CKIQ, serving Kelowna. Other Kelowna radio stations include CKOV and CKLZ-FM, both owned by Seacoast Communications Group Incorporated, and CILK-FM, owned by Silk FM Broadcasting Ltd. (Silk FM).

An intervention in opposition to this application was submitted by Silk FM. The intervener argued that Kelowna could not support a fifth radio station, and that if one were to be licensed, existing stations would experience serious financial difficulty, leading to a reduction in service to the public.

In response to this concern, Four Seasons stated that Kelowna was a very strong radio market, as demonstrated by the record revenues and healthy profits enjoyed by existing stations as a group over the last five years. Four Seasons also expressed confidence that continued strong growth in the Kelowna population and economy would support a growth in radio revenues that would in turn, enable the market to support the introduction of a new commercial radio service. The licensee further noted that these expectations were consistent with the findings of an independent study of the Kelowna market. Four Seasons also expressed the opinion that, in a more competitive environment, existing stations would be more likely to increase, rather than decrease, community service.

The Commission has carefully considered the arguments put forward by the applicant and the intervener and is satisfied that the Kelowna market meets all three of the criteria set out by the Commission in Public Notice CRTC 1991-74 dated 23 July 1991 and entitled "Radio Market Policy". These criteria assess in part, the ability of a market to withstand the entry of an additional radio station, by measuring the combined profitability of all stations in the market, the individual stations' profitability and the advertising revenue growth (after inflation) of the market, all calculated over the five years preceding the application. The Commission also accepts the general findings of the above-noted study, performed by an independent consulting firm.

Based upon all of the available evidence, the Commission is of the opinion that existing stations should not experience undue financial hardship from the introduction of a new FM station. It is also satisfied that the licensing of an additional local radio station programming country music will con-
tribute to the diversity of service available to listeners in the growing Kelowna market. The application has accordingly been approved.

It is a condition of 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 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.

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. In this regard, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

This approval is subject to the requirement that construction of the undertaking be completed and that it be in operation within twelve months of the date of this decision, or where the applicant applies to the Commission within this period and satisfies the Commission that it cannot complete construction and commence operations 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.

Should construction not be completed within the period stipulated in this decision or, should the Commission refuse to approve an extension of time requested by the applicant, the authority granted shall lapse and become null and void upon expiry of the period of time granted herein or upon the termination of the last approved extension period.

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 the DIST that its technical requirements have been met, and that a Broadcasting Certificate will be issued.

The Commission acknowledges and has considered the many interventions submitted in support of this application.

Allan J. Darling
Secretary General