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Ottawa, 9 July 1986
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Decision CRTC 86-665
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Group M. Enterprises Ltd.
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Chatham, New Brunswick - 850143900
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Following a Public Hearing in Moncton on 6 May 1986, the Commission denies the application by Group M. Enterprises Ltd. (Group M.) for a licence to carry on an English-language FM radio broadcasting transmitting undertaking at Chatham, operating on the frequency 93.7 MHz (channel 229) with an effective radiated power of 50,000 watts.
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Having received an application from Group M. and in keeping with its usual procedures, the Commission issued a call for applications for an FM licence to serve Chatham (CRTC -Public Notice 1985-213 dated 12 September 1985). It received no other applications.
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In the call, the Commission invited the applicants and all parties concerned in Decision CRTC 85-12 dated 8 January 1985 to the 6 May hearing to report on steps taken to extend a French-language FM service to the Acadian community in northeastern New Brunswick.
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The Commission has assessed Group M.'s application independently of the response to Decision CRTC 85-12, having noted that the applicant targeted its proposed station specifically to the Chatham/Newcastle area and that the contours enclosed only a very small part of that area of northeastern New Brunswick which was the subject of the decision. In the Commission's view, the applicant's proposal would have had minimal impact on any regional French-language FM service that might be licensed in this area.
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The follow-up to Decision CRTC 85-12 is addressed in this document following the discussion of Group M.'s application.
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In the public notice, the Commission emphasized that it had not reached any conclusion with respect to the viability of a new FM service in Chatham and that the call should not be construed as an indication of its intention to authorize such a service at this time.
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It stressed that it would concern itself with the financial capability of the applicants, the viability of the proposed service and the impact on existing radio stations in the area, and reaffirmed that it would wish to be satisfied that the overall FM radio service provided in the market to be served is as varied and comprehensive as possible.
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The Chatham/Newcastle market is served at present by one English-language commercial AM station, CFAN Newcastle, which is operated in a Contemporary MOR format. CFAN captures a significant share of available listeners of all ages and provides a valuable local service to the area.
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The Application
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The applicant proposed a "Group I" station which would offer "a moderate middle road between the existing station and the outside FM stations" to an audience between the ages of 30 and 50. The programming of the proposed new station was intended to provide a "unique and entertaining" alternative to existing radio services in the Miramichi Valley which, according to Group M., are mainly broadcast in the French language and represent secondary coverage of the Moncton, Bathurst, Fredericton and Saint John markets. Group M. submitted that the area it proposed to serve was economically sound and that its financial projections were realistic.
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Representatives of radio station CFAN appeared at the hearing in opposition to this application, claiming that Group M. had not responded to the Commission's concerns regarding the provision of French-language radio service in northeastern New Brunswick. CFAN stated further that the economy of the area to be served was fragile and that there was no clear listener or sponsor support for a new station in Chatham/Newcastle. In the past CFAN itself had investigated the feasibility of a local FM operation but had concluded that the proposition would not be economically viable. The intervener contended that Group M.'s proposed programming would essentially duplicate that of CFAN and, therefore, would not contribute to the diversity of service in this market.
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The Commission heard other interventions opposing this application. La Société des Acadiens du NouveauBrunswick and a group representing the licensees of four commercial radio stations in northeastern New Brunswick emphasized that approval of a new English-language station would completely ignore the needs of the sizeable francophone population in in the Miramichi area and expressed the view that the applicant's estimate of the francophone population, at 9%, was much too low. The broadcasters' group also pointed out that economic conditions in the area are poor.
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The Commission has carefully considered the evidence presented by Group M. and the interventions submitted in support of its application. It has also taken into account the views expressed by opposing interveners, both at the hearing and in writing, and the needs of the area to be served.
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Given the present economic circumstances of the market, the Commission considers it unlikely that an additional radio service in Chatham would be financially viable at this time without directly affecting the existing broadcaster. In its view, Group M. has not shown that a demand for the proposed service exists or that it has the financial ability to carry out the proposal. The applicant has not demonstrated a clear understanding of the requirements and goals of the FM policy or convinced the Commission that the proposed programming plans and station format would in fact contribute to diversity of radio service in the region.
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In light of all of the foregoing, the Commission has denied the application.
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General Remarks Follow-up to Decision CRTC 85-12
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While noting in Decision CRTC 85-12 that northeastern New Brunswick could not support a French-language FM service as proposed at that time, the Commission encouraged the applicants and interested parties "to consult with each other and to rationalize their efforts with a view to finding other suitable alternatives for the provision of such service". These groups were invited to report on their progress at the Moncton public hearing.
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La Société des Acadiens du Nouveau-Brunswick underlined the Acadian community's urgent need for radio services and suggested that a French-language community FM station could effectively respond to this need, perhaps supplementing a commercial radio service.
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In a concerted effort, Radio Acadie Ltée, one of the applicants involved in Decision CRTC 85-12, CFAN Broadcasting Company Limited, Restigouche Broadcasting Company Limited and Bathurst Broadcasting Company Limited, the four licensees currently authorized to serve northeastern New Brunswick, suggested that the Acadian community could best be served by a single FM station that would provide coverage to the entire area although such a station would have an adverse impact on their operations. They had considered the closure of an existing station to permit the establishment of a French-language FM station, the conversion of either CJVA Caraquet or CKBC Bathurst to a regional FM service, and the sharing of the expense of establishing a new station. Having been unable to reach a final solution, they requested further consultation with the Commission.
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Télévision de la Baie des Chaleurs Inc. and Radio Nord-Est Ltée, two of the original applicants, expressed satisfaction with the general desire to implement a French-language FM station in northeastern New Brunswick as quickly as possible. Together they have formed a new company, La Compagnie de Radiodiffusion Beausoleil Ltée, which, they indicated, is in the process of preparing an application to carry on such an undertaking.
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The Commission remains convinced of the demand for a French-language FM station that would serve the Acadian community of northeastern New Brunswick. However, it will wish to examine the impact of the introduction of any new service on the capacity of existing licensees to provide the service for which they have been licensed. The Commission encourages interested parties to continue to consult and reminds those concerned that any proposals derived from this rationalization process should be viable and relevant to the people of northeastern New Brunswick.
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Fernand Bélisle
Secretary General
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