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ARCHIVED -  Decision CRTC 99-404

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Decision

Ottawa, 31 August 1999
Decision CRTC 99-404
Haliburton Broadcasting Group Inc.
Sudbury, Timmins, Kapuskasing and Hearst, Ontario - 199807872 - 199807864 - 199807906 - 199807921 -199807880 - 199807898 - 199807913
16 August 1999 Public Hearing
National Capital Region
Summary
The Commission approves applications by Haliburton Broadcasting Group Inc. (Haliburton) to acquire the assets of the following radio stations:
·  CHNO and CHYC Sudbury
·  CKOY Timmins and its transmitters CHOH-FM Hearst and CHYK Kapuskasing
·  CKAP Kapuskasing
The Commission also approves Haliburton's applications to convert CHNO, CHYC and CKOY from the AM band to the FM band. CKAP will continue to operate on the AM band.
Acquisition of assets
2.  The Commission approves the applications for authority to acquire the assets of CHNO and CHYC Sudbury, CKOY Timmins and its transmitters CHOH-FM Hearst and CHYK Kapuskasing, and CKAP Kapuskasing from Pelmorex Radio Inc. (Pelmorex) and for licences to continue the operation of these undertakings.
3.  The price of the transaction is $250,000. Based on the evidence filed with the applications, the Commission has no concerns with respect to the availability or the adequacy of the required financing.
4.  The Commission notes that these stations have been unprofitable over the three years preceding filing of these applications. As reiterated in Public Notice CRTC 1998-41 Commercial Radio Policy 1998, specific proposals for tangible benefits are not required.
5.  The Commission notes, however, that the applicant will establish a five-year apprentice program at each station. Under this program, each station would have a least one apprentice for a 45 week period per year. The applicant will also introduce new programs for Natives and Franco-Ontarians as discussed later in this decision. Haliburton will also continue the "Battle of the Bands" project that was instituted by Pelmorex.
6.  For each of the stations noted below, the Commission has granted a licence term that is less than the maximum of seven years permitted by the Broadcasting Act. This will allow the renewal of these licences to be considered in accordance with the regional plan established by the Commission.
CKAP Kapuskasing
7.  The applicant proposed to continue operating CKAP Kapuskasing on the AM band. Haliburton noted that CKAP is a viable small market station that has recently undergone a complete technical upgrade and expected that the station would soon return to profitability. The Commission will issue a licence to Haliburton for CKAP Kapukasing, expiring 31 August 2005. The licence will be subject to the conditions specified in this decision and in the licence to be issued.
New English-language FM - Sudbury
8.  The Commission approves the application by Haliburton for an English-language FM radio programming undertaking at Sudbury, on the frequency 103.9 MHz (channel 280C1) with an effective radiated power of 100,000 watts. This new station will replace CHNO Sudbury. Subject to the requirements of this decision, the Commission will issue a licence to Haliburton expiring 31 August 2005. The licence will be subject to the conditions specified in this decision and in the licence to be issued.
9.  The new station will broadcast a "new and vibrant format" rather than the Oldies format now broadcast by CHNO. In addition, Haliburton will make available a minimum of one hour a week to broadcast a program called "Native Friends" that will serve and promote the aboriginal community. This program will consist of songs and stories that help promote first nations heritage and culture. "Native Friends" will also be broadcast on CKAP Kapuskasing.
New French-language FM - Sudbury
10.  The Commission approves the application by Haliburton for a French-language FM radio programming undertaking at Sudbury, on the frequency 98.9 MHz (channel 255A) with an effective radiated power of 1,000 watts. This new station will replace CHYC Sudbury. Subject to the requirements of this decision, the Commission will issue a licence to Haliburton expiring 31 August 2005. The licence will be subject to the conditions set out in this decision and in the licence to be issued.
11.  The new station will provide a new format called "Radio Rock-Relaxe". It will continue to develop network programming to link the francophone community in Northern Ontario and will make available a minimum of one hour each week for a program to promote Franco-Ontarian artists. The programming will be written, performed and produced by local residents assisted by station staff.
New French-language FM - Timmins
12.  The Commission approves the application by Haliburton for a French-language FM radio programming undertaking at Timmins on the frequency of 104.1 MHz (channel 281A) with an effective radiated power of 3,500 watts. This new station will replace CKOY Timmins. Subject to the requirements of this decision, the Commission will issue a licence to Haliburton expiring 31 August 2005. The licence will be subject to the conditions set out in this decision and in the licence to be issued.
13.  The Commission notes that the CBC, in its Revised Long-Range Radio Plan, identified the 104.1 MHz frequency for its French-language stereo service. CBC, however, did not oppose this application and the Commission notes that there are other suitable channels that have been allotted by the Department of Industry for Timmins.
14.  The new station will broadcast a format called "Radio Rock-Relaxe". Haliburton has indicated that the new station will benefit from significant investment and technical enhancements that will lead to improvements in local news coverage. The new station will also broadcast one hour each week in Aboriginal Canadian languages as station staff assist local aboriginal residents to produce "Native Friends." This program will include songs and stories and help preserve Ojibway heritage and culture.
Implementation of new stations
15.  The licences will only be issued and effective when the new stations are ready to begin operation. When the licensee has completed construction and is prepared to commence operation, it must advise the Commission in writing. If the stations are not constructed and ready to operate within 12 months of today's date, extensions to this time frame may be granted provided that the licensee applies in writing to the Commission before the 12-month period or any extension of that period expires.
16.  The Department of Industry has advised the Commission that these applications are conditionally technically acceptable. The Department will only issue a broadcasting certificate once it has determined that the proposed technical parameters of each station will not create any unacceptable interference with aeronautical NAV/COM services.
17.  In accordance with section 22(1) of the Broadcasting Act, the Commission will only issue the licences and grant the authority to operate when it receives notification from the Department of Industry that its technical requirements have been met, and that broadcasting certificates will be issued.
18.  The Commission further approves the applicant's proposal to simulcast, on the AM transmitters, all of the programming of the new FM stations for a period of no longer than three months from the implementation of the FM licences. A condition of licence to this effect is set out below.
Conditions of licence
19.  The licensee is authorized, by condition of each FM licence, to simulcast the programming of the FM station on the AM station for a period of three months following the date of implementation of the new FM station.
New French-language FM stations in Sudbury and Timmins
20.  It is a condition of each licence that the licensee shall, in any broadcast week, devote 65% or more of its musical selections from content category 2 to Canadian selections broadcast in their entirety.
Other matters
21.  The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996 (1996 EEA), and therefore files reports concerning employment equity with Human Resources Development Canada. As a result of a consequential amendment to the Broadcasting Act, the Commission no longer has the authority to apply its employment equity policy to any undertaking that is subject to the 1996 EEA.
22.  The Commission acknowledges the interventions received in support of these applications.
23.  In view of the approval granted herein, it would appear that no further action is required on the applications 199810445, 199810479, 199810487 and 199810495 submitted by Pelmorex for the renewal of these licences which were announced in Public Notice CRTC 1999-100, dated 21 June 1999.
Related CRTC document
·  Public Notice 1999-137 - New licence form for commercial radio stations
This decision is to be appended to each licence. It is available in alternative format upon request, and may also be viewed at the following Internet site:
www.crtc.gc.ca
Secretary General
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