ARCHIVED -  Decision CRTC 96-209

Decision

Ottawa, 12 June 1996

Decision CRTC 96-209

3145069 Canada inc.

Saint-Hyacinthe, Quebec - 199604708

Amendments to CFEI-FM's power and coverage area as well as relocation of its transmitter - Approved

Following a Public Hearing in the National Capital Region beginning on 15 April 1996, the Commission approves the application to amend the licence of the radio programming undertaking CFEI-FM Saint-Hyacinthe by decreasing the effective radiated power from 3,000 watts to 640 watts. The applicant also proposed to relocate its transmitter in Saint-Hyacinthe to the summit of Mont Rougemont and to modify its authorized coverage area. The Commission authorizes the applicant to carry on its undertaking with the coverage area and other particulars resulting from the above-mentioned amendments.

The applicant indicated that this application is intended essentially to provide better service to the communities of Beloeil and Saint-Hilaire, which are located within a few dozen kilometres of Saint-Hyacinthe and are already within CFEI-FM's authorized service area. According to the applicant, it has difficulty serving these two communities now because Mont Saint-Hilaire, which is about 450 metres in height, obstructs CFEI-FM's signal. In view of the station's precarious financial situation and the losses it has accumulated over several years, the applicant claimed that the technical modifications proposed are necessary to expand the station's advertising base and enable it to become profitable.

The Commission considers that the objective of providing better service to the population of Beloeil and Saint-Hilaire is legitimate in the circumstances. The Commission notes that the initial licence application filed in 1986 identified the Beloeil area as one of the proposed station's main target areas. Furthermore, the Commission notes that, in Decision CRTC 88-406 authorizing the transfer of CFEI-FM's assets, the Commission had accepted as a benefit of that transaction the hiring of a stringer to cover news in the Beloeil/Saint-Hilaire area.

The application, however, raised some concerns regarding the technical solution proposed by the applicant to provide better coverage for this area and the possible consequences for neighbouring markets if it were approved. These kinds of concerns were also raised in opposing interventions filed by CFZZ-FM Saint-Jean-sur-Richelieu, by Radio communautaire de la Rive-Sud inc., licensee of CHAA-FM Longueuil, and by two groups that are planning to operate a new FM station at Granby and that were represented by the former employees of CHEF Granby which ceased operations on 19 January 1996, as well as by Radio Concept inc.

The technical modifications proposed would significantly expand CFEI-FM's primary (3 mV/m) and secondary (0.5 mV/m) official contours shifting them to the southwest. The interveners argued that CFEI-FM's signal would also be received better in the markets that they currently serve or areplanning to serve, and alleged that the applicant's proposal could be a threat to their undertakings.

Regarding its proposed technical solution, the applicant claimed that its decision to relocate its transmitter facility to an existing tower, on which the operator rents space, is the most economical and advantageous option for CFEI-FM in view of its financial situation. By elevating its transmitter antenna from a height of about 40 metres to over 400 metres on Mont Rougemont, the applicant considers that CFEI-FM will, in large part, be able to clear the obstacle created by Mont Saint-Hilaire and deliver an excellent quality signal to 90% of the population in the Beloeil/Saint-Hilaire area, while continuing to cover the greater Saint-Hyacinthe area with a 3 mV/m signal. Other benefits mentioned by the applicant were the savings resulting from the substantial reduction of the station's transmission power and the proceeds of the disposal of the property occupied by its existing antenna, which would offset almost two-thirds of the cost of the proposed amendments.

The applicant also indicated that it had examined the other technical solutions available, including increasing the station's power at the existing transmitter site, or adding a retransmitter near Beloeil. Its analyses showed that increasing power sufficiently to overcome the obstacle of Mont Saint-Hilaire would have created spill-over coverage to the southeast which would be unacceptable to CIMO-FM Magog. The applicant also considered installing a retransmitter on other mountains in the area, including Mont Saint-Hilaire, which is a wildlife preserve where electrical installations are prohibited, and Mont Saint-Bruno and Mont Yamaska, which would not provide the desired coverage. The applicant also estimated that the cost of purchasing or leasing a lot in the rich farmland of the Beloeil/Saint-Hilaire area as well as purchasing the necessary transmission facilities would be prohibitive.

With regard to the interveners' concerns relating to expanded coverage resulting from the proposed technical amendments, the applicant pointed out that CFEI-FM's primary market is very clearly described in the application as Saint-Hyacinthe, Beloeil and Saint-Hilaire. The applicant added that it considers it essential to preserve the station's local and regional character, particularly with respect to news programming. While acknowledging that CFEI-FM already has a small advertising clientele on the south shore of Montréal and in Granby, which it hopes to keep, the applicant noted that those communities have few interests in common with its primary market. In this regard, the applicant reiterated its commitment not to develop marketing or sales strategies for the markets of Montréal, Longueuil, Iberville or Saint-Jean-sur-Richelieu. In addition, of the forecast increase in station revenues to be realized from the proposed technical amendments, the applicant estimates that 59% will come from development of the untapped market in Beloeil/Saint-Hilaire, 36% from greater revenues in the existing Saint-Hyacinthe market, and 5% from higher national advertising sales. This indicates that none of the forecast revenue increase will come from neighbouring markets.

Having carefully examined the complete application filed and considered the arguments of the applicant and the interveners, the Commission finds that approval of this application, as submitted, represents the best solution, under the circumstances, to enable CFEI-FM to deliver a quality signal to both Saint-Hyacinthe and the Beloeil/Saint-Hilaire area. The Commission further considers that this approval should not have an undue impact on radio stations operating in neighbouring markets.

The Department of Industry 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 amendment, and the authority will only be granted, at such time as written notification is received from the Department of Industry that its technical requirements have been met, and that a Broadcasting Certificate will be issued.

This decision is to be appended to the licence.

Allan J. Darling
Secretary General