ARCHIVED - Decision CRTC 2001-514

Decision CRTC 2001-514

Ottawa, 21 August 2001

3224503 Canada inc.
Drummondville, Quebec 2001-0405-0

3145069 Canada inc.
Saint-Hyacinthe, Quebec 2001-0404 -2

Applications processed by Public Notice
CRTC 2001-64 dated 5 June 2001

In Decision CRTC 2001-488 dated 13 August 2001, the Commission pronounced on the above applications. The Commission inadvertently failed to take into consideration a written intervention submitted by Association québécoise de l'industrie du disque, du spectacle et de la vidéo (ADISQ). In light of this, the Commission has examined the complete record, including ADISQ's intervention, on a de novo basis.

The Commission's decision is set out below. This decision replaces Decision 2001-488.

Transfer of control

The Commission approves the applications for authority to transfer the effective control of 3224503 Canada inc., licensee of CHRD-FM Drummondville, and of 3145069 Canada inc., licensee of CFEI-FM Saint-Hyacinthe, through the transfer of all the issued and outstanding shares held by the two licensees to Astral Radio Group Inc. (Astral Radio).

The Commission notes that CHRD-FM and CFEI-FM have, in the aggregate, been unprofitable over the three years preceding filing of these applications. The Commission's Commercial Radio Policy 1998 (Public Notice CRTC 1998-41) contemplates that, in these circumstances, the Commission will forego benefit requirements for such stations. Nevertheless, Astral Radio proposed benefits in the amount of $72,000, which it described as representing 3% of the estimated value of the transaction of $2,400,000. The Commission has taken due note of Astral Radio's proposal.

The Commission also notes that a significant advantage of this transaction is that CHRD-FM and CFEI-FM will be maintained as viable, local radio services.

Ownership concentration

One of the concerns raised by these applications was their potential impact on the level of radio ownership concentration in Quebec, particularly in communities along the geographic corridor extending from Hull to Québec, via Montréal, and north to Chicoutimi. Astral Radio currently owns 12 radio stations in Quebec that are either in a dominant or leading position in the above corridor, where 65% of Quebec's population resides.

The Commission examined these applications in the light of the ownership provisions of the commercial radio policy. The Commission concluded that the applications are consistent with the relevant policy provisions, and that approval will not significantly increase the concentration of radio ownership in Quebec.

The Commission also took into account that fact that Astral Radio is an experienced broadcaster with considerable financial resources. Astral Radio can, therefore, ensure that CHRD-FM and CFEI-FM remain viable over the long term as well as maintain and improve the service provided by these stations to the residents of Drummondville and Saint-Hyacinthe. Accordingly, the Commission considers that approval of these applications is in the public interest.

Intervention

In its intervention, ADISQ expressed its support for the applications, subject to, among other things, the provision that Astral Radio's proposed financial contributions be required by condition of licence, and that they be divided equally between MusicAction and the RadioStar fund. As previously noted, Astral Radio proposed benefits in the amount of $72,000. Given that CHRD-FM and CFEI-FM have, in the aggregate, been unprofitable, the Commission is not persuaded that Astral Radio's proposal should be the subject of additional requirements.

Related CRTC document

. Public Notice 1998-41 - Commercial radio policy, 1998

Secretary General

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