Decision
|
Ottawa, 17 January 1984 |
Decision CRTC 84-28 |
Rideau Broadcasting Limited |
Smiths Falls, Ontario - 831436100 - 831437900 - 832543300 |
At a Public Hearing in Hull, Quebec on 18 October 1983, the Canadian Radio-television and Telecommunications Commission considered an application for authority to transfer effective control of Rideau Broadcasting Limited ("Rideau"), licensee of CJET and CKUE-FM Smiths Falls, through the transfer of all issued and outstanding common shares from the existing shareholders to CHEZ-FM Inc., licensee of CHEZ-FM Ottawa, which company is controlled by Mr. Harvey Glatt of Ottawa. |
Rideau also applied to amend the broadcasting licence of CKUE-FM by moving the transmitter site from Jasper Highway, two miles south of Smiths Falls to Highway 29 and Concession Road 7, Blacks' Corners, Ontario, and by increasing the effective radiated power from 47,300 watts to 100,000 watts. |
In presenting its arguments to move the antenna site to Blacks' Corners and, thus, eliminate technical overload and interference problems which CKUE-FM has experienced, CHEZ-FM Inc. stated, in part, that: |
"The topography of the region gives one a better height as you move toward the north or the west, which is naturally desirable for FM transmitters. To the south, the height above sea level decreases all the way to the Seaway Valley. Where the transmitter is located now, it is extremely low height above sea level and gives the effect for the tower to be literally facing out, as if it was in a bowl, to higher land surrounding half of its coverage area, which is not a desirable position for a FM transmitter to be." With respect to the increase in power, CHEZ-FM Inc. indicated that it was necessary to provide a better quality signal to this region and to ensure optimum utilization of CKUE-FM's frequency. In addition, it stated, "reception will be improved for a significant number of listeners, much to the satisfaction of these listeners and local advertisers in the "Golden Triangle" who wish to effectively reach these listeners." The Golden Triangle was described as the region surrounding Smiths Falls, Perth and Carleton Place, "the three towns principally served by Rideau Broadcasting." |
The Commission notes that the power increase would virtually double the area served by CKUE-FM, and provide a strong signal into the Ottawa area whereas, at the present time, this signal can only be received reliably via cable. As a result, the service contours of CKUE-FM will overlap those of CHEZ-FM considerably, thus raising implications with respect to the Commission's long-standing policy which generally prohibits the common ownership of two undertakings of the same class serving the same market in the same language. CHEZ-FM Inc. indicated that there is no appropriate transmitter site in the vicinity of Smiths Falls where the operation of CKUE-FM at full power would not result in the extension of the signal into Ottawa. |
The primary area that CJET and CKUE-FM are licensed to serve has always been the Ottawa Valley region surrounding Smiths Falls. This area encompasses the communities of Perth, Carleton Place, Kemptville and Almonte, Ontario. In previous decisions pertaining to the operation of these stations (Decisions CRTC 78-403 and 79-403), the Commission emphasized the need to maintain local service and noted that their primary and major obligation was "to provide an ever-improving service to their local coverage area." |
The Commission considers it vital that the distinct local and regional service provided by CJET and CKUE-FM to this region of the Ottawa Valley not be jeopardized and that this orientation be maintained. In this regard, CHEZ-FM Inc. described the area served by the stations "as something that we would intend to serve as a distinct market place, adjacent to, but intrinsically part of the Ottawa Valley, and the programming would set it apart from Ottawa-based stations." It also stated that "we feel that we have a positive contribution to make to the Golden Triangle in the Ottawa Valley, and that this contribution is certainly within our capabilities." |
In addressing the concerns of the Commission and various interveners that these stations might become Ottawa-oriented stations to the potential detriment of the Smiths Falls area, CHEZ-FM Inc. stated: |
..., we offer the following guarantees to the Commission, in addition to our plain good faith, to be enforced by conditions of licence: |
First, the studios of CJET and CKUE-FM shall remain in Smiths Falls; |
Second, CJET and CKUE-FM shall continue to be operated out of Smiths Falls with a local management team and sales force; |
Third, CJET and CKUE-FM shall offer predominantly local and regional news, information backgrounding and community services; |
There shall be no shared personnel and facilities between CHEZ-FM and CJET and/or CKUE-FM; There shall be no joint rate card and sales packaging between CHEZ-FM and CJET and/or CKUE-FM. |
The Commission further notes that CHEZ-FM Inc. has allocated a substantial budget for the provision of new studio facilities and technical equipment both for CJET and CKUE-FM in Smiths Falls. |
In addition to the commitments noted above concerning the operation and management of the stations, CHEZ-FM Inc. made the following specific programming commitments. With respect to CJET programming oriented to the Smiths Falls region, CHEZ-FM Inc. undertook that: |
- approximately 70% of all news and information programming will be of direct and immediate interest to residents of this region of the Ottawa Valley; |
- a daily agricultural program will be specifically designed for the rural communities in the Smiths Falls region; |
- a daily public affairs program will cover local and regional activities; |
- local sports and outdoor events will be reported; and |
- the station will contribute directly to Canadian talent through a minimum of four live broadcasts yearly. |
With respect to CKUE-FM programming oriented to the Smiths Falls region: |
- approximately 60% of all newscasts will consist of local and regional material, with an equal emphasis on each; |
- a daily public affairs program will cover human interest topics of direct relevance to this region; |
- a creative spoken word program will be broadcast devoted to the expression of Ottawa Valley poetry, prose and drama; |
- the music policy will remain unchanged but will include foreground format features such as a weekly program on the Ottawa Valley's folk music heritage; and |
- a minimum of four live music concerts will be broadcast each year, financed from a budget separate from that of CJET. |
In assessing the proposed transaction, the Commission also considered Rideau's deteriorating financial position which has affected its ability to make the necessary improvements to the services offered by its radio stations. The Commission is satisfied that the proposed transfer of effective control will enable these stations to benefit significantly from the financial support, broadcasting experience and managerial expertise of CHEZ-FM Inc., so that the quality of the broadcasting services in the Smiths Falls region can be maintained and enhanced. |
In light of all of the factors noted above, the majority of the members of the Commission approves the transfer of effective control of Rideau to CHEZ-FM Inc. and the changes in the technical parameters of CKUE-FM. The Commission emphasizes, however, that this approval is conditional on CHEZ-FM Inc. meeting all the commitments noted in this decision. Both stations shall, therefore, continue to provide, as originally licensed, a distinct programming service, heavily oriented towards the Smiths Falls region. |
Under the ownership of CHEZ-FM Inc., both CJET and CKUE-FM will continue to operate under their existing Promises of Performance. In the context of these applications, the licensee submitted revised Promises of Performance for CJET and CKUE-FM contingent upon the deletion of the condition of licence that CJET operate as a CBC affiliate. The Commission is not prepared to consider such amendments until the licensee has concluded an appropriate agreement with the CBC and, therefore, denies the proposed revisions. The Commission expects the licensee to file new Promises of Performance and seek the approval of the Commission at such time as an agreement is reached with the CBC. |
The Commission notes that 11/2 hours of commercial-free community access time per week will be provided on CKUE-FM and expects the licensee to publicize the availability of such time to its audience. |
The Commission acknowledges the concerns expressed in interventions presented at the public hearing by CFGO Radio Limited, Mr. John Steele Kirkland, Mr. Perry Weagle, and Standard Broadcasting Corporation Limited, who opposed these applications on the grounds that the proposed changes in the technical parameters of CKUE-FM would represent the introduction of a new FM station into the Ottawa-Hull market, contrary to the Commission's policy. The Commission considers that the important commitments made by CHEZ-FM Inc. should ensure that CKUE-FM continues to serve the distinct needs and interests of its primary audience in the Smiths Falls region, and it intends to follow closely the performance of both Smiths Falls stations under their new ownership. |
With regard to the interventions presented by Mr. H. Dee and the Acme Typewriter Company in support of a program "Musical News of Germany" which has been broadcast on CKUE-FM, the Commission considers that it is the licensee's responsibility to select the programs necessary to meet its Promise of Performance. |
J.G. Patenaude
Secretary General |
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