ARCHIVED -  Decision CRTC 97-648

Decision

Ottawa, 20 November 1997

Decision CRTC 97-648

Global Communications Limited

Halifax, Antigonish and Mulgrave, Nova Scotia - 199702098

Saint John, Miramichi, St. Stephen and Woodstock, New Brunswick; and Charlottetown, Prince Edward Island - 199702080

New transmitters of CIHF-TV Halifax and CIHF-TV-2 Saint John - Approved

1. Following Public Notice CRTC 1997-109 dated 19 August 1997, the Commission approves the applications by Global Communications Limited (Global) for amendments to the broadcasting licences for CIHF-TV Halifax and CIHF-TV-2 Saint John, and authorizes the establishment of new television transmitters at the following locations:

New transmitters of/ Channel/ Effective radiated power/
Nouveaux émetteurs de CIHF-TV Canal Puissance apparente rayonnée

Antigonish 21B 13,400 watts
Mulgrave 28A 1,410 watts

New transmitters of/
Nouveaux émetteurs de CIHF-TV-2

Miramichi 40B 24,600 watts
St. Stephen 21B 12,700 watts
Woodstock 38B 24,600 watts
Charlottetown 42B 24,500 watts

Background

2. Global's television undertakings at Halifax and Saint John, together with their respective transmitters elsewhere in Nova Scotia and New Brunswick, provide a third, private, English-language television service known as Maritime Independent Television (MITV). The Halifax and Saint John stations were originally licensed to New Brunswick Broadcasting Co. Limited (NBB) in Decision CRTC 87-59 dated 22 January 1987. In that decision, the Commission expressed its strong expectation that NBB: "...submit applications at the earliest feasible time for extension of the proposed service throughout New Brunswick, Nova Scotia and Prince Edward Island."

3. Although NBB subsequently received approval to establish transmitters at a number of other Maritime communities, not all of these authorities had been implemented at the time that Global acquired ownership of the MITV undertakings in 1994 (Decision CRTC 94-224 dated 29 April 1994). Global thus assumed responsibility for meeting the Commission's expectations and discharging NBB's commitments for extension of the MITV service, including the obligation to implement outstanding authorities to construct new transmitters at four Nova Scotia communities. The Commission understands that these transmitters began operating later that year. With implementation of the additional transmitters authorized herein, MITV's off-air coverage will expand to encompass more than 80% of the population of the Maritimes.

Interventions

4. The Commission received interventions from several interested parties expressing support for Global's plans to deliver the programming of the Halifax and Saint John stations to the additional Maritime communities noted above. Interventions were also submitted by Atlantic Broadcasters Limited (Atlantic) and by Baton Broadcasting Incorporated (Baton). Atlantic is the licensee of CJFX Antigonish. Baton is the owner of BBS Ontario Incorporated, whose applications to acquire the assets of Atlantic Satellite Network (ASN), and of CJCH-TV Halifax, CKLT-TV Saint John and two other Maritime television stations (collectively known as ATV), were recently approved by the Commission in Decision CRTC 97-527.

5. Atlantic emphasized in its written intervention that it was not adverse to approval of Global's applications for new transmitters, provided it was not the applicant's intention to solicit advertising in the communities served by CJFX, particularly in the counties of Antigonish, Guysborough, Inverness and Richmond in eastern Nova Scotia. Baton stated that it did not oppose the applications, but indicated that their approval could result in the siphoning of as much as $2 million in annual revenues away from ATV/ASN. According to Baton:

The reduced air time revenues for ATV/ASN which will follow the addition of MITV re-broadcasters will necessitate a review of the commitments of ATV and ASN. Any negative impact on the business plans of ATV/ASN will also flow through to the Baton group of stations as a whole.... What, if any, changes in these operations will be warranted will remain unclear until the magnitude of the impact of Global's proposals are known.

Commission findings

6. In the Commission's view, the present applications represent significant progress by Global toward fulfilment of the Commission's long-standing expectation regarding extension of the MITV service throughout all three Maritime provinces. The Commission is also satisfied that the proposed transmitters will not create any undue economic hardship for other broadcasters.

7. Nevertheless, with respect to the concerns expressed by Atlantic, the Commission notes the statement contained in Global's written reply to the intervener that it does not intend to solicit local advertising in the markets served by CJFX; rather, that its "revenues in these areas will be drawn from regional advertisers."

8. As for Baton's intervention, and in particular, its inference that approval of these applications will necessitate a review of the commitments of ATV and ASN, the Commission notes that its policy objective of making a third, over-the-air, local television service available to all of the Maritime provinces has been a matter of public record for more than a decade. In the circumstances, the Commission would expect Baton to have borne this in mind when formulating its business plans and proposing the benefits and other commitments offered in the context of its applications to acquire the assets of ATV and ASN.

9. Turning to Global's current applications, of concern to the Commission is the licensee's failure to identify any incremental expenses that might be associated with gathering news and information, or providing other programming designed to reflect the additional communities it intends to serve. The Commission is particularly concerned by the absence of any detailed plans to provide coverage of issues and concerns specific to Prince Edward Island, given that the proposed Charlottetown transmitter will provide the first, over-the-air source of the regional MITV service in that province.

10. Although the Commission is not convinced of the adequacy of this aspect of Global's applications, its deliberations have included consideration of the fact that the MITV group of stations has incurred significant financial losses in each of the last two years. While it has approved the applications, the Commission expects Global, as financial resources permit, to increase the community reflection offered by the MITV stations through the inclusion of news and other programming material focusing on each of the communities they serve. At the time of licence renewal, the Commission intends to examine with particular care the licensee's performance and plans to provide residents of Prince Edward Island with satisfactory coverage of provincial affairs and local issues.

This decision is to be appended to the licence of each of CIHF-TV Halifax and CIHF-TV-2 Saint John.

Laura M. Talbot-Allan
Secretary General

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