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Decision
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Ottawa, 1 September 1988
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Decision CRTC 88-578
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VOCM Radio Newfoundland Limited
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Spaniard's Bay/Harbour Grace, Newfoundland -863267100Related Documents -
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Decisions CRTC 77-477 dated 10 August 1977, 78-593 dated 18 August 1978, 80-51 dated 28 January 1980, 82-1008 dated 17 November 1982, 84-343 dated 4 April 1984 and 85-955 dated 9 October 1985.
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At a Public Hearing in St. John's, Newfoundland on 12 March 1987, the Commission considered an application by VOCM Radio Newfoundland Limited (VOCM) 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 day-time and night-time transmitter power from 5,000 watts to 10,000 watts.
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Background
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In the original licensing decision for this station in January 1980 (Decision CRTC 80-51), the Commission stated that while it "recognized the desire of the residents of the Conception Bay area for a local radio service", the applicant had been requested to use a lower power station "clearly oriented to serve the Conception Bay area only, and designed so as to eliminate any possible impact on the St. John's market."
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The decision further stated that while "communities in the Conception Bay area may not be able to generate sufficient advertising revenue" to support the new commercial radio station, the Commission had taken into consideration the strong financial position of the licensee company, the Colonial Broadcasting System Limited (Colonial) (now VOCM), and the sound basis of its AM station in St. John's.
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VOCM continues to operate that AM station as well as VOCM-FM, licensed in 1981 (Decision CRTC 81-419 dated 18 June 1981).
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Prior to being licensed in January 1980, Colonial had applied on two occasions to establish a new AM radio station in the Conception Bay area on the 850 kHz frequency with a power of 10,000 watts. In each case, the Commission denied the proposal on the grounds that the market could not support a high power radio station and that the proposed coverage area would have encompassed the City of St. John's, with a possible adverse effect on existing stations in the city. (Decisions CRTC 77-477 and 78-593).
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In three subsequent applications, Colonial has applied to change CHVO's authorized frequency from 850 kHz to 560 kHz and to increase the transmitter power from 5,000 watts to 10,000 watts. These proposals were also denied, again on the grounds that the technical change would have resulted in an extended coverage area that would have included St. John's. In Decision CRTC 84-343, the Commission noted that the applicant could achieve its objective of improving service to the Trinity Bay/Conception Bay area by establishing one or more low-power FM rebroadcasters in the area.
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Consideration of the Current Application
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At the March 1987 hearing in St. John's at which VOCM presented the current application, the licensee referred to a technical study it had commissioned from consulting engineers in response to the Commission's suggestion in the 1984 decision with respect to the feasibility of installing FM rebroadcasters to improve its coverage to the communities along the eastern shore of Trinity Bay and the western shore of Conception Bay.
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The President of VOCM, Mr. Joseph Butler, elaborated on this point at the hearing:
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From a cost point of view, it would be in excess of $340,000 ...From a practical standpoint, it would completely confuse the mobile commuter audience which would be required to continually change their AM tuning to an FM frequency ...
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The licensee argued that the most suitable means of improving the CHVO signal quality, would be to change the technical parameters of the station. An increase in signal coverage would provide for an improved service to a number of outlying communities including Old Perlican and Grate's Cove to the north and Whitsbourne to the south of Spaniard's Bay. VOCM further submitted that "there are about 9,000 people in (these areas) who simply cannot hear our signal on a regular basis, although technically (they) fall within the licensed contours authorized by the CRTC."
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The licensee also indicated that the proposed changes would result in uninterrupted service to listeners from the western side of Conception Bay as they commute to and from the urban centre of St. John's. It cited a commuter study by Atlantic Public Relations which confirmed the licensee's argument that a large percentage of the CHVO listening audience is mobile, and that "the daily loss from CHVO's home market represents about 18% of the entire population." VOCM further suggested that the improved signal coverage would provide these commuters with access to programming oriented to Conception Bay, including weather and traffic reports specific to this area and that are not available on St. John's radio stations.
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The Commission notes the licensee's estimations that the improved signal would result in a 14% increase in the total audience and an increase of about 10% in retail advertising revenue. An economic study undertaken by Secor Economics Inc. was the basis for the licensee's optimistic economic forecast for the area.
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With respect to the potential impact of its proposed technical changes on competing radio stations in St. John's, VOCM made a firm commitment that CHVO would not solicit advertising in that market. The licensee also stated that the station would remain oriented to its present audience and would not alter its station format.
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In response to this application, the Commission received an opposing intervention from CHUM Limited, licensee of CJYQ and CKIX-FM St. John's, which expressed concern that if the proposed technical changes were authorized, VOCM would have two AM signals and one FM signal "in a very fragile market, and that it would in effect be providing a duplicate music and news service".
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The Commission notes in this respect that CHVO has a country format as does CKIX-FM St. John's, and that the current application could affect "erosion of the available country market preventing the anticipated development of the market that CKIX-FM is licensed to serve".
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The intervener also questioned the validity of VOCM's commissioned studies regarding the economic forecast for the area and the commuting population between Conception Bay and St. John's and provided the results of its own commissioned study conducted by Omnifacts of Newfoundland which did not support VOCM's economic outlook for the region. The intervener stated further that "VOCM intends to serve the St. John's marketplace. On the basis of market conditions, the economy and the duplication of service", the intervener opposes the application.
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The Commission has given specific consideration to the applicant's concern for the improvement of service to its licensed area, specifically to the "twenty-three communities there that are included in the 88 communities (it) intended to serve". It notes with concern, however, that the proposed changes would provide CHVO with extended coverage beyond the Conception Bay area, encompassing much of the northern portion of the Avalon Peninsula, including St. John's.
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In this regard, the Commission requested that the Department of Communications (DOC) undertake a technical analysis of radio signals in the Conception Bay/Trinity Bay area to determine the technical reception quality and coverage area of those signals during the day and at night. A report filed by the DOC in June 1987 concluded that: "a good quality was found to be available along both the eastern shore of Trinity Bay and the western shore of Conception Bay". Further, there was little or no signal impairment within the 0.5mV/m day-time contour. In response to the study, VOCM indicated that although no serious fault is evident in the daytime coverage, "our concerns have always been related to winter conditions and night-time interference."
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To further assess the night-time service during the time of year when weather conditions contribute to severe night-time signal interference the Commission requested the DOC to undertake a further technical analysis. The two-part study involved an evaluation of the night-time AM signal reception during the months of January to April 1988 and a survey of listeners in five selected communities located on both Trinity Bay and Conception Bay. The results of the winter-long study corroborate DOC's earlier coverage analysis and conclude that the quality of CHVO's night-time coverage was found to be generally good, although there is a slight reduction in the technical quality in the community of Old Perlican, which is the most distant location from the station's transmitter site.
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The results of both studies were made available to VOCM and to the intervener CHUM Limited; their comments were requested and received.
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Having reviewed all of the evidence available to it, including VOCM's argument that at its currently authorized power CHVO cannot adequately serve the commuter audience and some communities on the fringe of its service area, the Commission is of the view that the signal quality of CHVO is adequate to serve the listeners within its licensed contours.
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Further in this regard, the Commission notes that VOCM has not submitted evidence that would justify an exemption to the Commission's longstanding policy that no licensee may operate more than one commercial service on each band in a market or that the proposed change would not affect the viability of existing St. John's radio stations. Accordingly, the Commission denies the application to change the frequency of CHVO from 850 to 560 kHz and to increase the transmitter power.
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In Decision CRTC 88-577 of today's date, the Commission has also denied the application by VOCM to change the frequency and increase the power of CHCM Marystown, Newfoundland. The licensee has indicated that the CHCM application was contingent upon approval of the present application.
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Fernand Bélisle
Secretary General
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