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Ottawa, 25 February 1986
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Decision CRTC 86-136
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Hugh and Michael Mackenzie, representing a company to be incorporated Bracebrige, Ontario - 851088500
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Rogers Radio Broadcasting Limited Toronto and Bracebridge, Ontario - 852117100
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Joseph F. Duchesne, representing a company to be incorporated Bracebridge, Ontario - 851045500
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Following a Public Hearing in Toronto on 8 October 1985, and for the reasons outlined below, the Commission denies the application by Hugh and Michael Mackenzie, representing a company to be incorporated (Mackenzie), for a broadcasting licence for an English-language FM radio station at Bracebridge. The Commission also denies the related application by Rogers Radio Broadcasting Limited (Rogers) for a broadcasting licence to carry on an English-language FM radio network operation, consisting of Rogers' Toronto station CHFI-FM and the new FM station at Bracebridge proposed by Mackenzie.
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Similarly, the Commission denies the competing application by Joseph F. Duchesne, representing a company to incorporated (Duchesne), for a broadcasting licence for an English-language FM station at Bracebridge.
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These proposals were submitted in response to a call issued by the Commission on 15 October 1984 for applications to provide an FM radio service to Gravenhurst, in the South Muskoka region. Although this area does not have its own local radio station, some stations, notably CHAY-FM Barrie, CFOR Orillia and CFBK Huntsville, provide some local service to residents living at the periphery of the South Muskoka region.
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The South Muskoka region encompasses the towns of Bracebridge and Gravenburst, and has a permanent population of approximately 30,000. However, the seasonal population is more than double that figure due to the influx of cottagers and other summer visitors coming primarily from the Toronto area. In support of their applications, Mackenzie and Duchesne submitted that while there That while there is a need for local service, the permanent population of South Muskoka is not large enough to support the operation of a full-time local station at this time. Accordingly, Mackenzie and Duchesne both proposed to make extensive use of programming originating with other stations.
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Mackenzie proposed a service consisting of 471/4 hours of local production per week, supplement by programming originating with Rogers' Toronto station, CHFI-FM. The network agreement between Rogers and Mackenzie was for a term of ten years and contained provisions allowing the amount of local programming to be increased slightly over the ten-year term.
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The Duchesne application proposed to rebroadcast the programming of CFBK Huntsville, in its entirety, during the first year of operation. CFBK is owned by Muskoka-Parry Sound Broadcasting Limited, which company is effectively controlled by Joseph F. Duchesne. In the second year, Duchesne planned to introduce four hours per day of Bracebridge and area programming, to he increased by increments of four hours per day over each of the next two years. It was proposed that, after the forth year, there would be 18 hours of local programming each day, with no rebroadcasting of the Huntsville station's programming.
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Based on the evidence submitted by the applicants, and on the large number of interventions received from local residents in support of one or other of the Mackenzie and Duchesne applications, the Commission is satisfied that there is a demand and need for a radio station to serve the South Muskoka market.
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With respect to the Duchesne application, however, the Commission considers that its programming proposals fall short of the minimum expectations for an FT station. Specifically, it notes that the proposal to rebroadcast AM programming originating with CFBK Huntsville during the first four years of operation is not in accordance with the Radio (F.M.) Broadcasting Regulations and the FM policy. As acknowledged by the applicant, its request for exemptions from the FM regulation would have necessitated the issuance of an experimental FM licence. The Commission, however, does not consider that the circumstances warrant the issuance of such a special licence, or the degree of flexibility requested by the applicant.
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The Commission notes that the programming concept contained in the Mackenzie/Rogers proposal combines local Bracebridge production with programming originating with CHFI-FM Toronto to provide s viable radio service responsive to the needs and interests of the residents of South Muskoka, as well as the large number of people from Toronto who make use of cottages and homes in the area at various times of the year.
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The Commission has no objection in principle to the proposed application of such a network concept on a case-by-case basis. It would want to be assured, however, of the full autonomy and responsibility of the local licensee over the station's operation and local programming. In this case, the right of first refusal provision was also of concern to the Commission.
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In Decision CRTC 86-137 of today's date, the Commission approved an application by Robert R. Bowland, representing a company to be incorporated (Bowland), to provide radio service to Parry Sound. The Mackenzie and Bowland proposals were treated as competing applications at the Toronto hearing due to the fact that the proposed coverage of the Bracebridge station would include Parry Sound.
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Bowland expressed serious concerns regarding the potential financial impact of the station proposed by Mackenzie on its proposed Parry Sound operation, and stated that it would not be prepared to implement its plans to serve Parry Sound so long as the coverage of the Mackenzie station included Parry Sound. Concerns were also expressed by Muskoka-Parry Sound Broadcasting Limited regarding the potential adverse financial impact of the station proposed by Mackenzie on the local service provided by CFBK Huntsville.
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In response, Mackenzie made various commitments intended to eliminate or reduce the competitive impact of the proposed Bracebridge station on the operation of stations serving the Parry Sound and Huntsville markets. One such commitment by Mackenzie was that it would modify the technical parameters of its proposal so that the 500 uV/m service contour of the proposed Bracebridge station would not include Parry Sound.
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The Commission has considered the applicant's commitment but is not convinced that its implementation would be technically acceptable to the Department of communications. Moreover, the Commission is concerned that it may have the possible undesirable effect of increasing the strength of the proposed Bracebridge station in markets served by other neighbouring stations, and that this possibility was not canvassed in the context of this proceeding.
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In light of all of the above, the Commission has determined that the public interest would best be served by denying the applications by Mackenzie, Rogers and Duchesne, and by reissuing a call for applications to extend radio service to the South Muskoka market, taking into account all of the concerns addressed in this decision. The Commission intends to issue such a call in the near future and invites all interested parties, including the current applicants, to respond.
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Fernand Bélisle Secretary General
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