ARCHIVED -  Decision CRTC 96-304

Decision

Ottawa, 2 August 1996

Decision CRTC 96-304

Telemedia Communications Inc.

St. Albert, Alberta - 952954600

Acquisition of assets

Following a Public Hearing in Calgary beginning on 15 July 1996, the Commission approves the application for authority to acquire the assets of the radio programming undertaking CFMG-FM St. Albert from Balsa Broadcasting Corp., and for a broadcasting licence to continue the operation of this undertaking.

The Commission will issue a licence to Telemedia Communications Inc. (Telemedia), expiring 31 August 2002, upon surrender of the current licence. The licence will be subject to the same conditions as those in effect under the current licence, as well as to any other condition specified in this decision and in the licence to be issued.

The purchase price relating to this transaction is $4,000,000. Based on the evidence filed with the application, the Commission has no concerns with respect to the availability or the adequacy of the required financing.

Because the Commission does not solicit competing applications for authority to transfer effective control of broadcasting undertakings, the onus is on the applicant to demonstrate to the Commission that the application filed is the best possible proposal under the circumstances, taking into account the Commission's general concerns with respect to transactions of this nature. As a first test, the applicant must demonstrate that the proposed transfer will yield significant and unequivocal benefits to the community served by the broadcasting undertaking and to the Canadian broadcasting system as a whole, and that it is in the public interest.

In particular, the Commission must be satisfied that the benefits, both those that can be quantified in monetary terms and others that may not easily be measured in terms of dollar value, are commensurate with the size of the transaction and take into account the responsibilities to be assumed, the characteristics and viability of the broadcasting undertakings in question, and the scale of the programming, management, financial and technical resources available to the purchaser.

The Commission has assessed the benefits package identified by Telemedia as flowing from this transaction, which amounts to $400,000 over the next seven years, including a contribution of $32,000 per year in direct costs for Canadian talent development. Furthermore, the applicant will maintain the current levels of funding for Canadian talent development initiatives ($13,500 per year). The Commission, in general, is satisfied that the benefits package is significant and unequivocal, and that approval of the transaction is in the public interest.

According to Telemedia, the intangible benefits to result from this application include its intention to invest in the area of research, programming and marketing in order to enhance the service already provided by CFMG-FM. Telemedia also stated that it will not reduce the current number of job functions at CFMG-FM and that it will, in fact, add one full-time position to the existing staff complement. Telemedia also plans to create expanded career opportunities in radio broadcasting for employees of Telemedia as well as of CFMG-FM.

The Commission expects Telemedia to ensure that the commitments identified as benefits are implemented in accordance with the application.

It is a condition of licence that this station not be operated within the specialty format as defined in Public Notice CRTC 1995-60, or as amended from time to time by the Commission.

The applicant is authorized, by condition of licence, to use a subsidiary communications multiplex operation (SCMO) channel for the purpose of distributing a commercial service consisting of Indo-Pakistani programming in at least four languages. The Commission expects the applicant to adhere to the guidelines set out in Appendix A to Public Notice CRTC 1989-23 dated 23 March 1989 entitled "Services Using the Vertical Blanking Interval (Television) or Subsidiary Communications Multiplex Operation (FM)".

It is a condition of licence that the applicant adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and approved by the Commission.

It is also a condition of licence that the applicant adhere to the provisions of the CAB's "Broadcast Code for Advertising to Children", as amended from time to time and approved by the Commission.

In Public Notice CRTC 1992-59, the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of
licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment. In keeping with the Commission's policy, it encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

In view of the approval granted herein, it would appear that no further action is required on the application (199606753) submitted by Eugene W. Fabro, representing a company to be incorporated, for approval to acquire the assets and for a broadcasting licence to continue the operation of this undertaking. This application was placed on the agenda of the public hearing held beginning on 8 July 1996 in the National Capital Region.

This decision is to be appended to the licence.

Allan J. Darling
Secretary General