ARCHIVED -  Decision CRTC 97-442

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Decision

Ottawa, 14 August 1997
Decision CRTC 97-442
Power Broadcasting Inc.
Oshawa, Ontario - 199608999
Licence amendment - denied
1. In Public Notice CRTC 1997-57 dated 14 May 1997, the Commission announced the receipt of an application by Power Broadcasting Inc. (Power) to amend the broadcasting licence for CKGE-FM Oshawa by adding a condition of licence, pursuant to section 14 of the Radio Regulations, 1986 (the regulations), which would authorize the licensee to simulcast up to 100% of CKGE-FM's programming content on CKDO Oshawa, for a period of one year from the date of the decision.
2. In support of its application, Power stated that approval of the application would allow the maximum flexibility to experiment with various programming formats on CKDO. The licensee noted that the two Oshawa stations have faced major financial difficulties over the last five years, and that the AM station is suffering from diminishing audience and limited interest by advertisers. Power added that it had investigated other options for more profitable operation of the AM station, but had found none that could be easily and cost-effectively incorporated.
3. Following receipt of this application, the Commission introduced a mechanism for additional flexibility, through revised simulcast regulations, set out in Public Notice CRTC 1996-116. The revised regulations permit licensees of commonly-owned AM and FM stations in the same market to simulcast up to 42 hours per broadcast week.
4. Subsequent to the publication of the revised simulcast regulations, the licensee indicated that it still wished to proceed with the application as filed, because, even with the additional flexibility afforded by the new regulation, it believed financial losses would continue to be significant and serious.
5. Interventions in opposition to this application were submitted by Durham Radio Inc., licensee of CJKX-FM Ajax, and by Mr. Harry Schoon of Oshawa. Both interventions expressed concerns related to the loss of local service, should the application be approved.
6. In its responses to the interventions, Power reiterated the short-term nature of the request, the seriousness of the financial situation of the AM station, and the licensee's commitment to continue to serve the Oshawa market.
7. The Commission has carefully considered the views of the licensee as well as those of the interveners. It does not consider that the licensee has made a compelling case for a departure from the Commission's long-standing policy which encourages diversity by mandating different programming services on AM and FM stations operated by the same licensee. While the Commission is mindful of the financial difficulties faced by the licensee, it is of the view that adequate experimentation with the AM service to determine a new direction for the station could take place within the minimum 84 hours of distinct AM programming required by the regulations.
8. Accordingly, for the reasons noted above, the application to simulcast up to 100% of CKGE-FM's programming content on CKDO for a period of one year, is denied.
This decision is to be appended to the licence.
Laura M. Talbot-Allen
Secretary General
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