ARCHIVED -  Decision CRTC 96-51

Decision

Ottawa, 13 February 1996

Decision CRTC 96-51

Radio Nord inc.

Rouyn-Noranda and Val d'Or, Quebec - 950769000 - 951283100

 Licence amendment and new FM radio programming undertaking in Val d'Or - Applications denied

Following a Public Hearing held in the National Capital Region on 30 November 1995, the Commission denies the applications submitted by Radio Nord inc. (Radio Nord) to amend the broadcasting licence of CHOA-FM Rouyn-Noranda by eliminating the CHOA-FM-1 Val d'Or transmitter, and for a broad-cast-ing licence to operate a new French-language FM radio programming undertaking at Val d'Or on the 103.5 MHz frequency (channel 278C) with an effective radiated power of 100,000 watts.

 Radio Nord explained that its proposal involved setting up studios in Val d'Or to offer the population of eastern Abitibi local programming distinct from that provided by CHOA-FM Rouyn-Noranda. To that end, the applicant proposed to broadcast a minimum of 50 hours of local programs each week, including approximately three hours of news, with the remainder of the programming consisting of music interspersed with cultural and community news items. The applicant further indicated that, if its application to operate a new FM station was denied, it wanted to maintain its CHOA-FM-1 Val d'Or transmitter authorized under the licence of CHOA-FM Rouyn-Noranda.

 In Public Notice CRTC 1991-74 dated 23 July 1991 and entitled "Radio Market Policy", the Commission set out the procedures and criteria that it generally uses in the processing of applications for new conventional commercial AM and FM stations. Further, the Commission established as the basic criterion that the introduction of an additional commercial station must not unduly affect the ability of existing commercial stations to discharge their programming responsibilities.

 In addition to its CHOA-FM-1 transmitter, Radio Nord operates CKVD, an AM station in Val d'Or which broadcasts 20 hours and 15 minutes a week of local programs. The Val d'Or market also includes another commercial station, CJMV-FM, which is operated by Radiomutuel inc. (Radiomutuel). This station broadcasts 57 hours of local programs a week.

 Radiomutuel intervened at the hearing opposing Radio Nord's application to operate a new FM station in Val d'Or. Radiomutuel declared that approval of Radio Nord's application would destabilize the market and that, as a result, the existing radio stations would no longer be able to honour their commitments to the community and to their Promises of Performance. The intervenor added that CJMV-FM had never been profitable since it went on air in 1988, and that, from a strictly financial point of view, the Val d'Or market did not meet any of the criteria set by the Commission to establish entry to a market.

 In assessing the potential impact of Radio Nord's proposal on the Val d'Or market, the Commission relied mainly on the test of advertising revenue growth. To measure this indicator, the Commission examines the growth of total advertising revenues within the market. If advertising revenues have exhibited no positive real growth (i.e. after inflation) over the preceding five years, the Commission considers the market to have failed the test.

 Based on the financial data compiled by the Commission in its most recent radio market report and on the new data filed by Radio Nord at the public hearing, the Commission found that, over the period 1990-1994, total advertis-ing revenues from the Val d'Or market exhibited an average decline of some 3%. The Commission considers failure by a market to meet one or more of the criteria of its policy to be an indication that existing stations are encountering difficulties in fulfilling their responsibilities.

 In the circumstances, the Commission concluded that approval of the application in question might worsen the situation of the other commercial radio stations in the market and make it harder for them to honour their local programming commitments. As a result, the supply of local programs would not necessarily have improved, especially as Radio Nord admitted at the hearing that the proposed 50 hours of local programs would consist, for the most part, of music in a format similar to that currently broadcast, and that the some three hours of local news proposed, while offering additional news, would result in duplication and overlapping of news with that broadcast by the applicant's AM station, CKVD Val d'Or.

 Taking into consideration all the available financial data, the opposing intervention submitted by Radiomutuel as well as the arguments presented by Radio Nord in its application and at the public hearing, the Commission considers an exception to its Radio Market Policy is not justified in this case. Accordingly, the Commission has denied these applications.

 Allan J. Darling
 Secretary General