ARCHIVED -  Decision CRTC 90-291

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Decision

Ottawa, 28 March 1990
Decision CRTC 90-291
Radio Bellechasse
Lac-Etchemin, Quebec - 880704200
Following a Public Hearing in Quebec City beginning 5 December 1989, the Commission denies the application by Radio Bellechasse for a licence to operate a French-language FM broadcasting transmitting undertaking in Lac-Etchemin, on the frequency of 100.5 MHz (channel 263B) with an effective radiated power of 9,600 watts.
The applicant wished to obtain an independent FM radio licence to serve primarily the many small rural communities in the regional county municipalities of Les Etchemins and Bellechasse, southeast of Quebec City. Under the proposed technical parameters, the new regional radio station would have had an official contour of 500 uV/m, covering communities to the east as well, such as Vallée-Jonction, Sainte-Marie and Saint-Georges in Beauce County.
When an applicant proposes the establishment of a new commercial station in a given area, it is incumbent on the applicant above all to demonstrate to the Commission's satisfaction that there is a market for the station, that the market has sufficient resources to ensure the station's success and that establishment of the new undertaking will not unduly harm the stations already authorized to operate in the region.
Local radio service is presently provided in Lac-Etchemin by station CIRB, authorized to provide 25 hours of local programming weekly and to retransmit programs originating with CKRB Saint-Georges. In 1986, the Commission authorized Radio Beauce Inc., licensee for CIRB and CKRB, to operate a new regional FM station at Saint-Georges jointly with CKRB (Decision CRTC 86-1185). CIRO-FM Saint-Georges went on the air in 1987. The region is also served by station CJVL Sainte-Marie and, because of its proximity to Quebec City, it receives signals from most of the major radio stations in the provincial capital.
The Commission approved the operation of CIRO-FM in 1986 following a competitive process. In Decision CRTC 86-1185, the Commission denied an application by Radio Communautaire de la Frontière (now Radio Bellechasse) to operate a community FM station serving the regional county municipality of Les Etchemins. In addition to a number of serious deficiencies in that application, the Commission noted in its decision that it had had "to take into account the general state of the economy in the target market", which was weaker and less dynamic than that of the Beauce region.
The Commission notes that the economy in the regional county municipality of Les Etchemins is similar to that of Bellechasse: both are based primarily on the agricultural and forest industries. It also notes that the general state of the economy in the region has changed little since 1986.
The Commission also feels that the market study which accompanied the application did not take sufficient account of the region's existing radio stations and of the impact that another new commercial station could have on those stations. In this regard, the Commission notes that, according to the financial data made public in the intervention by Radio Beauce Inc., station CIRB Lac-Etchemin experienced a decline in its revenues and posted an operating deficit for the fiscal year ending 31 August 1989. Station CIRO-FM, for its part, which has been in operation for less than three years and is not yet financially stable, has had revenues far lower than initial forecasts and is also showing a deficit.
Having reviewed the application, as submitted, and the supporting information on file, the Commission has concluded that the market of the regional county municipalities of Les Etchemins and Bellechasse does not have sufficient resources to support the establishment of a new commercial radio station, as proposed by the applicant. The Commission has also taken into account the impact that this type of station would have had on the existing stations.
Moreover, the Commission has noted the following statement made at the hearing by the applicant, in response to the interventions opposing the application [TRANSLATION]:  There is no question at the moment of analyzing - or at least it would be inappropriate to analyze - any hypothesis other than an application for an independent licence.
The Commission acknowledges the strong community support for the application by Radio Bellechasse, as expressed in many interventions received from individuals and organizations in the region. The Commission also acknowledges the interventions opposing the application submitted by Radio Beauce Inc., Clival Inc., Radio Etchemin Inc. and Radio Montminy Inc.
Fernand Bélisle
Secretary General

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