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Decision
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Ottawa, 9 October 1985
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Decision CRTC 85-955
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The Colonial Broadcasting System Limited
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Spaniard's Bay-Harbour Grace, Newfoundland - 843362500
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Following a Public Hearing in Halifax on 28 May 1985, the Commission denies the application by The Colonial Broadcasting System Limited (Colonial) to amend the broadcasting licence for CHVO Spaniard's Bay-Harbour Grace by changing the authorized frequency from 850 kHz to 560 kHz and by increasing the transmitter power from 5,000 watts to 10,000 watts day and night.
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The effect of the proposed amendment would be to expand the coverage of CHVO beyond the Conception Bay area to encompass much of the northern portion of the Avalon Peninsula, including the city of St. John's. Colonial is already licensed to operate two radio stations in that city, namely VOCM and VOCM-FM St. John's.
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On the basis of the evidence provided in the application and during the hearing, the Commission was not convinced that the benefits which the applicant stated would be derived from such expanded coverage outweigh the concerns with respect to three strong signals in St. John's, all licensed to the same company, and their potential impact on the viability of other private broadcasters in this fragile broadcasting market. These concerns are essentially the same as those expressed by the Commission in several previous decisions involving this applicant, including Decision CRTC 82-1008 and CRTC 84-343 which denied successive applications by Colonial to change the frequency of CHVO from 850 kHz to 560 kHz.
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At the May 1985 hearing, Colonial submitted that it was not its intention to orient its service to the St. John's audience. At the same time, Colonial said that the proposed expanded coverage was necessary to provide a larger audience base to protect the station's future viability in the face of competition from stations in the area licensed to Radio CJYQ 930 Limited (CJYQ St. John's, CHYQ Musgravetown and CFIQ Harbour Grace).
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In the applicant's view, an increased audience for CHVO would result from the improved service its proposal would offer to approximately 9,000 residents of communities located along the eastern shore of Trinity Bay, where the present reception quality of the CHVO signal is poor. It also claimed that the change in technical parameters would enable the station's signal to reach an estimated 13,000 individuals who commute from the Conception Bay area to work in St. John's, but are unable to receive the CHVO signal on their car radios once they are inside the city. Colonial suggested that the expanded coverage would provide these commuters with access to programming oriented to Conception Bay, including information regarding hazardous weather conditions in that area not necessarily provided by St. John's radio stations.
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The Commission has examined the applicant's argument that it is at a competitive disadvantage with Radio CJYQ 930 Limited, but does not consider that Colonial's concern is supported by the facts. In this regard, the Commission notes that the audiences reached by Colonial's stations in the Conception Bay area and in St. John's are substantially greater than those of its competition, and that this dominant position is clearly reflected by the applicant's current advertising revenues.
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The concern expressed by Colonial regarding the need to improve service in the Trinity Bay area was addressed by the Commission in Decision CRTC 84-343. As noted in that decision, the Commission considers that this objective could be achieved through the establishment of one or more low-power FM rebroadcasters in the area, and encourages the applicant to investigate this option more closely. With regard to Colonial's wish to provide a continuous service to CHVO listeners commuting to St. John's, the Commission is not convinced that the need for such service is as substantial as the applicant indicates or that it outweighs the concerns stated earlier in this decision.
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Fernand Bélisle Secretary General
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