ARCHIVED - Decision CRTC 2000-417

Decision CRTC 2000-417

Ottawa, 27 October 2000

Yves Sauvé, on behalf of a company to be incorporated and to be known as Société Radio St-Laurent
Saint-Nicolas, Quebec - 199911897 

27 June 2000 Public Hearing
in Montréal

New AM radio station at Saint-Nicolas

The Commission approves the application for a French-language AM radio station at Saint-Nicolas. All of the programming broadcast on the station will be locally produced. It will air regular newscasts during the morning rush hour, at noon and in the late afternoon. The musical component of the programming will focus on country music. Although the service will be modest, the Commission considers that it will satisfy the needs of an underserved audience.

The terms and conditions of licence are set out in the appendix to this decision.

Reasons for appearance

The Commission invited the applicant to appear at the 27 June hearing to discuss certain concerns raised by the application. They relate in particular to the choice of the frequency band, the programming, the addition to programming diversity in the market, the impact of a new AM station on the stations in the Québec's market and support for Canadian talent development.

Choice of frequency band

The applicant's proposal to use an AM frequency runs counter to the trend that has appeared in recent years. In reply to the Commission's questions in this regard, the applicant indicated that there was no FM frequency available for use in the Québec area. The applicant added that with the closure of many AM stations, it will be able to acquire transmission equipment at a more-than-reasonable price and, thereby, reduce its capital costs.

Programming

The station will broadcast local and regional newscasts and programs on newsworthy special events. A weekly public affairs program will complete the local and regional news. In addition, the applicant will make airtime available to local organizations.

Programming diversity and market impact

The applicant chose the country format to better serve fans of this music genre. Its record library contains nearly 3,000 country records. The applicant pointed out that there are between 200 and 250 French-language country artists. It will contribute to the promotion of these artists by giving their records airplay on the new station.

The proposed radio service will contribute to programming diversity in the Québec market, especially in the Regional County Municipality of Chutes-de-la-Chaudière. The applicant plans to target this area in its information programs to keep listeners abreast of on-going activities in that community. The applicant also emphasized that the new station's format will add to the diversity of music programming available. In this connection, Entreprises Radio Etchemin Inc. (Radio Etchemin), licensee of CFOM-FM Lévis, emphasized at the hearing that only community station CFIN-FM Lac Etchemin currently offers any country music in this market.

According to Radio Etchemin, however, the new station could have a negative impact on the fragile financial equilibrium of the radio industry in the Québec market, especially on CFOM-FM, the only other South Shore station operating in the market. Similar views were expressed in opposing interventions filed by Cogeco Radio-Télévision Inc., licensee of CJMF-FM Québec, and Radiomédia Inc., licensee of CHRC Québec. These interveners also questioned the viability of the proposal submitted by the applicant.

The Commission agrees that the new station will offer some competition in the market. It notes however that the target audience of avid country-music listeners is rather limited. On balance, the Commission considers that the new station would not unduly affect the financial health of the surrounding stations.

Canadian talent development

The applicant indicated that it would make, in each year of the licence term, a contribution equal to that required by the Canadian talent funding plan established by the Canadian Association of Broadcasters. Specifically, in each year, the applicant will allocate $4,000 to MusicAction and $4,000 in fees to country artists appearing on music programs broadcast by the new station. This commitment is the subject of a condition of licence set out in the appendix to this decision.

Conclusion

After examining all the views presented to it, both in support and in opposition, the Commission has decided to approve the application. It considers that the applicant has replied satisfactorily, both before and during the hearing, to the concerns raised by its application.

Related CRTC documents

. Public Notice 2000-14 - Revised content categories and subcategories for radio

. Public Notice 1999-137 - New licence form for commercial radio stations

. Public Notice 1998-41 - Commercial radio policy 1998

. Public Notice 1992-59 - Implementation of an employment equity policy

Secretary General

This decision is to be appended to the licence.
It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca 

Appendix to Decision 2000-417

Terms and conditions of licence for the French-language AM radio programming undertaking at Saint-Nicolas

Terms of licence

· The Commission will only issue the licence, and it will only be effective at such time as:

- the Commission receives documentation establishing that an eligible Canadian corporation has been incorporated in accordance with the application in all material respects and that this corporation may be issued a licence.

- the licensee confirms in writing that it is ready to begin operation. This must take place within 12 months of today's date. Any request for an extension to that deadline requires Commission approval and must be made in writing within that period.

- the Department of Industry that has confirmed that its technical requirements have been met, and that a broadcasting certificate will be issued. (section 22(1) of the Broadcasting Act).

· The station will broadcast on the AM band, on the frequency 1060 kHz, class B, with a daytime and nighttime transmitter power of 10,000 watts.

· The licence will expire on 31 August 2007.

· The Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources (Public Notice CRTC 1992-59).

Conditions of licence

· The licence will be subject to the following condition of licence and to the conditions specified in the licence to be issued.

· The licensee is required to make, in each year of the licence term, a contribution to the development of Canadian talent allocated as follows: $4,000 to MusicAction and $4,000 in fees to country artists appearing on musical programs broadcast by the new station.