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Broadcasting Decision CRTC 2003-115
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Ottawa, 17 April 2003
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3885275 Canada Inc. "Canadian Multicultural Radio" Toronto, Ontario
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Application 2002-0262-2
Public Hearing at Toronto, Ontario
17 September 2002
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Ethnic FM radio station in Toronto
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In this decision, the Commission approves the application by 3885275 Canada Inc. "Canadian Multicultural Radio" (CMR) for a new ethnic FM radio station in Toronto at 101.3 MHz. The new station will direct its programming primarily to the Greater Toronto Area's South Asian communities and will provide programming to a minimum of 16 cultural groups in at least 22 languages during each broadcast week. At least 48% of all ethnic programs broadcast during each broadcast week will be in the Tamil, Hindi and Filipino languages.
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CMR's application is one of four applications for new Toronto radio stations approved today (Broadcasting Decisions CRTC 2003-115 to 2003-118). The Commission has also approved an application to change the technical parameters of a transmitter of an existing Toronto ethnic radio station (Broadcasting Decision CRTC 2003-119). The Commission's general analysis with respect to its consideration of applications for Toronto radio stations considered at the 17 September 2002 Public Hearing is set out in Introductory statement to Broadcasting Decisions CRTC 2003-115 to 2003-120: Applications for new radio stations to serve Toronto, Broadcasting Public Notice CRTC 2003-20, 17 April 2003.
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Introduction
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1.
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On 22 March 2001, the Commission issued Call for applications for a broadcasting licence to carry on a radio programming undertaking to serve Toronto, Ontario, Public Notice CRTC 2001-39 (the Call). The Call, as amended by Public Notices CRTC 2001-39-1, 15 May 2001; CRTC 2001-39-2, 23 August 2001 and Broadcasting Public Notices CRTC 2001-39-3, 12 February 2002 and CRTC 2001-39-4, 4 March 2002, invited applications for licences to operate AM, FM and/or transitional digital radio programming services that clearly reflect the diversity of languages, as well as the multicultural and multi-ethnic reality of the Greater Toronto Area (GTA).
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2.
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In response to the Call, the Commission received 16 applications for new stations to serve the GTA, as well as an application to change the technical parameters of an existing transmitter. One of the applications was by 3885275 Canada Inc. "Canadian Multicultural Radio" (CMR) to establish a commercial FM ethnic radio station to serve the GTA at 101.3 MHz. The Commission considered the applications in a proceeding that included a public hearing in Toronto held from 17 to 27 September 2002.
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3.
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In Introductory statement to Broadcasting Decisions CRTC 2003-115 to 2003-120: Applications for new radio stations to serve Toronto, Broadcasting Public Notice CRTC 2003-20, 17 April 2003 (the Introductory Statement), the Commission announces that it has approved four applications for new Toronto radio stations, including the application by CMR, as well as an application to change the technical parameters of an existing transmitter. This decision addresses the particulars of the CMR application.
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Ownership structure
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4.
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Several parties will hold an ownership interest in CMR. CMR will be controlled by a corporation to be incorporated (HOLDCO), which will hold a 67% interest. HOLDCO will be controlled by Stanislaus P. Antony. Ravinder Singh Pannu will hold a 20% interest in CMR, and community investors will hold a 13% interest.
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5.
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Mr. Antony is also the majority shareholder in Canadian Tamil Radio, a company that operates a Tamil-language Subsidiary Communications Multiplex Operation (SCMO) service in Toronto1.
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6.
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Mr. Pannu is the sole owner of S. S. TV Inc., licensee of the national Category 2 specialty television service known as SSTV, which provides programming for the Punjabi and the wider South Asian communities. The Commission licensed the service in SSTV, Decision CRTC 2000-648, 24 November and 14 December 2000.
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7.
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Mr. Pannu is also the sole shareholder of Sur Sagar Radio Inc. (Sur Sagar), a company that operates an SCMO service for Toronto's Punjabi and Hindi communities. The Commission authorized the service in New Punjabi- and Hindi-language SCMO service, Decision CRTC 2001-644, 11 October 2001. Further, in Stand-alone ethnic transitional digital radio undertaking in Toronto, Broadcasting Decision CRTC 2003-118, 17 April 2003, the Commission has approved an application by Sur Sagar for a new undertaking that will provide programming primarily in Punjabi, Hindi and Urdu.
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Overview of the programming
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8.
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CMR stated that at least 90% of all programming broadcast by the proposed FM station would be ethnic programming, and that 80% of all programming would be in third languages, that is, languages other than English, French or a language of the Aboriginal peoples of Canada. CMR proposed to serve a minimum of 16 cultural groups in a minimum of 22 languages during each broadcast week.
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9.
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A primary focus of the new station would be to provide additional service to Toronto's growing South Asian communities, communities that CMR considered to be underserved by existing ethnic stations in the GTA. CMR stated that more than 50% of the broadcast week would be devoted to programming targeted to the South Asian communities. Such programming would consist of 32 hours each week in Tamil, 17.5 hours in Hindi, 5 hours per week in Urdu, 2.5 hours in Punjabi and one hour each in Malayalam, Sinhalese, Telugu, Gujarati and Bengali. The station would produce all the South Asian programming that it broadcasts.
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10.
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In addition to the South Asian programming described above, CMR's weekday programming would include programming in Filipino, Farsi, Somali and Spanish. During the weekend, CMR would also broadcast programming for the Caribbean, African, Baltic, Russian and Scandinavian communities.
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Interventions
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11.
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The Commission received over 15,000 interventions and letters of support for CMR's application. These interventions and letters came from individuals, elected officials at various levels of government, as well as from organizations related to the ethnic communities that CMR proposed to serve. The interveners generally considered that the programming proposed by CMR would be of interest and benefit to the GTA's various cultural communities, especially the South Asian communities.
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12.
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The Kanthamurugesanaar Tamil Cultural Centre of Canada (KTCC) opposed CMR's application because of difficulties it had experienced in obtaining coverage of one of its events by Tamilvision Inc. (TVI). TVI is a digital Tamil-language service managed by individuals who are also on CMR's management team. In reply, CMR submitted that the event referred to by KTCC was not covered because TVI was in the midst of moving its operations and, as a result, did not have the facilities necessary to provide coverage. CMR indicated that TVI tries to cover as many of the events happening in the Tamil community as possible.
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13.
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The Commission also received interventions from three ethnic radio stations serving the GTA who either opposed or commented on the CMR application and the effects that approval of CMR's proposal could have on their own operations. The interventions by the three existing Toronto ethnic radio stations are discussed later in this decision under the heading "Impact of a new entrant and competitive state of the market."
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14.
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A few individuals also submitted interventions opposing the CMR application and the Commission is satisfied with CMR's replies to them.
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Evaluating the application
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15.
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As noted in the Introductory Statement, the Commission has considered the merits of the CMR application in light of the objectives of the Call, as well as how the application has met the provisions of the Ethnic broadcasting policy, Public Notice CRTC 1999-117, 16 July 1999 (the Ethnic Policy) and the Commission's criteria for evaluating competitive applications for new commercial radio stations2.
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The Call
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16.
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As stated above, the Commission called for applications that clearly reflected the diversity of languages, as well as the multicultural and multi-ethnic reality of the GTA.
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17.
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The Commission notes that, under CMR's proposal, more than 50% of the programming broadcast by its proposed station would be directed to the GTA's diverse South Asian communities. As noted in the Introductory Statement, the Commission has found that the South Asian communities are currently underserved by existing Toronto ethnic radio stations, and that provision of additional programming for them should be a priority. The applicant's specific commitments with respect to the amount of ethnic programming to be provided, as well as the cultural and linguistic groups to be served, are addressed in the following sections of this decision.
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The Ethnic Policy
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18.
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The Ethnic Policy includes a number of key provisions that the Commission has taken into account in its consideration of the applications for new ethnic radio services. Several of these provisions have been incorporated into the Radio Regulations, 1986 (the Regulations), as minimum standards that must be met.
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Levels of ethnic and third language programming
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19.
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Section 7.(1) of the Regulations stipulates than an ethnic radio station shall devote not less than 60% of its broadcast week to ethnic programs. Section 7.(2) states that at least 50% of an ethnic radio station's broadcast week must be devoted to third language programs, that is, programs in a language other than English, French or a language of the Aboriginal peoples of Canada.
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20.
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In its application, CMR stated that it would devote a minimum of 90% of the programming broadcast during each broadcast week to ethnic programs. CMR further made a commitment to devote a minimum of 80% of the programming broadcast during each broadcast week to third language programs.
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21.
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CMR's commitments with respect to the amounts of ethnic and third language programming to be broadcast exceed the minimum requirements of the Regulations. Given the objectives of the Call and the competitive nature of this proceeding, the Commission considers that it is appropriate to impose these commitments as conditions of licence. The conditions are set out in the appendix to this decision.
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Broad service requirement
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22.
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Under the Ethnic Policy, ethnic stations should serve a range of ethnic groups in a variety of languages since the scarcity of frequencies may not permit the licensing of an over-the-air single-language service for each ethnic group in a given market. This approach also allows for the provision of service to groups that would not otherwise be able to afford their own single-language service.
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23.
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When dealing with applications for ethnic services, the Commission establishes the minimum number of distinct groups that a station must serve on the basis of the demographics of the community, the services already available, and the degree of support shown by local community organizations. The Commission also assesses the ability of ethnic stations to provide appropriate amounts of quality programming to ethnic groups, and the availability of ethnic programming from all stations serving a market. Where many distinct ethnic groups are served in the market overall, individual stations may be permitted to provide more hours of service to fewer groups.
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24.
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Since the GTA is currently served by six ethnic radio stations, the Commission is also concerned that new stations not simply duplicate the service already available from existing ethnic stations, but rather increase the range of ethnic programming available to GTA residents.
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25.
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The applicant proposed to offer programming to a minimum of 16 cultural groups in a minimum of 22 languages during each broadcast week. CMR also made a commitment that at least 48% of all ethnic programs broadcast during each broadcast week will be in the Tamil, Hindi and Filipino languages. In support of its approach, the applicant noted that the Ethnic Policy states:
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The Commission considers.that a balance may be struck between the two priorities: serving as many groups as practical, and providing high quality programming to those groups that are served.
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26.
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The applicant submitted that its application was consistent with the Ethnic Policy on the basis of a two-pronged approach. First, CMR will provide in-depth service to the South Asian communities, which will be the focus of 50% of its schedule. Second, CMR will provide regular daily service to six other groups, as well as service to additional groups over the weekend period, thereby broadening the total number of ethnic and linguistic groups served by the station.
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27.
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The Commission finds that the approach outlined by CMR is appropriate in that it will ensure the availability of more programming for communities that are underserved while still ensuring that the Commission's broad service requirement is met. The Commission considers it appropriate to impose, as conditions of licence, the applicant's commitments to:
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- devote a minimum of 80% of the programming broadcast in each broadcast week to third language programs
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- offer, on a weekly basis, programming directed to a minimum of 16 cultural groups in a minimum of 22 languages
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- devote at least 48% of all ethnic programs broadcast during each broadcast week to programs in the Tamil, Hindi and Filipino languages
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The conditions of licence are set out in the appendix to this decision.
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Level of Canadian music
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28.
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Section 2.2(4) of the Regulations provides that, unless at least 7% of the musical selections broadcast during ethnic programming periods are Canadian selections, and such selections are reasonably scheduled throughout such periods, then at least 35% of all category 2 (popular music) selections and at least 10% of all category 3 (special interest music) selections broadcast during the entire broadcast week must be Canadian. The lower level for ethnic programming periods is based on the more limited availability of Canadian selections in third languages.
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29.
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CMR proposed to devote 10% of all musical selections broadcast during ethnic programming periods to Canadian selections. The Commission notes that CMR's commitment exceeds the requirements of the Regulations, and considers it appropriate to impose this commitment as a condition of licence. The condition of licence is set out in the appendix to this decision.
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Local reflection
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30.
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The Ethnic Policy states that a primary responsibility of over-the-air ethnic radio stations should be to serve their local community. The Commission therefore expects ethnic broadcasters to provide plans on how they will reflect local issues and concerns.
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31.
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CMR stated that all programming on its proposed station will be locally produced. Spoken word programming will make up approximately 35% of the schedule, and all news will be in ethnic languages. All music broadcast will be ethnic, with classical musical styles broadcast in the morning and more popular styles featured during the rest of the day.
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32.
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At least 50% of the programming schedule will be station-produced programming in Tamil, Hindi, Urdu and Punjabi. As well, CMR will produce at least six hours a week of English-language cross-cultural programming designed for ethnic minority youth and women. Cross-cultural programming will also include some variety and entertainment segments.
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33.
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According to CMR, about 58 hours of weekly programming will be created by independent producers. CMR stated that it had already contracted out 47 hours of such programming and, should it not be able to find independent producers to create programming for the remaining smaller ethnic groups, it will produce such programming itself.
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34.
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In order to ensure that programming created by independent producers is of high standard, CMR stated that it will develop a Programming Code of Practices (the Code) that independent program producers will be required to sign and respect. The Code will set out requirements related to compliance with the Broadcasting Act, the Regulations and Commission policies such as the Ethnic Policy and the Religious Broadcasting Policy, Public Notice CRTC 1993-78, 3 June 1993. CMR also stated that it will engage a community co-ordinator to assist independent community producers in the production of programming for the smaller groups that CMR will serve.
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35.
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CMR also made a commitment to establish a seven-member Canadian Multicultural Radio Advisory Committee (the Advisory Committee). The Advisory Committee will serve as a sounding board for station management and the general public and receive feedback from the various ethnic communities concerning the station's programming. CMR further stated that it will undertake ongoing community consultations and frequent audience surveys to ensure that its programming meets the needs of the communities that it serves.
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36.
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The Commission finds that CMR's plans and commitments with respect to local programming, as outlined above, are consistent with the Ethnic Policy.
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Criteria for evaluating competing applications for new commercial radio stations
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37.
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The Commission applies four main criteria when evaluating competing applications for new commercial radio services. While their relative importance varies depending on the specific circumstances of the market concerned, the four criteria are as follows:
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- The diversity of news voices in the community
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- The quality of the application
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- The impact of a new entrant on existing stations
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The competitive state of the market3
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Diversity of news voices
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38.
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The Commission notes that CMR will provide a new over-the-air radio news voice for Toronto residents. Further all news broadcast on its proposed station will be in the languages of ethnic communities found to be underserved in the GTA, thus increasing the choice of news programming in third languages.
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Quality of the application
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39.
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The Commission applies the following four main criteria when assessing the quality of applications for new radio stations:
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- The applicant's local programming proposals and plans for providing reflection of the local community
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- Canadian content commitments
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- The quality of the applicant's business plan, including the proposed format
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- Commitments in support of the development of Canadian talent
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Local programming plans and Canadian content commitments
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40.
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CMR's local programming proposals and Canadian content commitments are addressed above in the section relating to the Ethnic Policy.
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Business plan
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41.
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CMR stated that it had chosen the cultural and linguistic groups that it would serve using a methodology that assessed factors such as population growth rates of such groups in the GTA and the amount of programming available to them. It was confident that the groups that it proposed to serve were interested in receiving more programming and would therefore listen to the proposed station.
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42.
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CMR stated that its revenue will come primarily from two sources: the sale of advertising broadcast during station-produced programming for the Tamil and other South Asian communities, and the sale of airtime to independent producers.
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43.
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CMR emphasized that it had designed its schedule so that it would not conflict with the South Asian programming on Toronto stations. However, CMR was of the view that it might be able to repatriate some listening and revenues from WTOR Youngstown, New York. WTOR broadcasts a significant level of programming in Hindi and Punjabi that can be received in Toronto, and much of the advertising in this programming is Canadian. CMR indicated that it intended, through its scheduling practices, to compete directly with WTOR for South Asian listeners. While it was confident that its strategy with respect to WTOR would be successful, CMR indicated that the success of its business plan was not dependent on the repatriation of listening and revenues from WTOR.
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44.
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The Commission has examined CMR's projected revenues in light of those of other Toronto ethnic stations and considers that CMR's projections are reasonable.
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45.
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As noted earlier, Ravinder Singh Pannu will hold a 20% interest in CMR. Mr. Pannu is the sole owner of S. S. TV Inc., licensee of the national Category 2 specialty television service known as SSTV. He also owns and operates the Sur Sagar SCMO service. At the hearing, Mr. Pannu discussed the synergies that would be available to the new CMR station through his other services. Mr. Pannu indicated that the Hindi and Punjabi news broadcast on the new CMR station will be gathered and produced by SSTV and Sur Sagar. The balance of CMR's Hindi and Punjabi programming, while built around the news packages produced by SSTV and Sur Sagar, will be original programming produced at the new CMR station and not broadcast on the SCMO service.
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46.
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The Commission finds that CMR has presented a viable business plan for its proposed station.
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Canadian talent development
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47.
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CMR proposed to devote a minimum of $40,000 per year for seven years in direct expenditures related to Canadian talent development. Rather than participating in the Canadian talent development plan of the Canadian Association of Broadcasters, CMR proposed to direct its annual commitment to direct expenditures related to the following projects:
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- $15,000 to support the Canadian Multicultural Music Search. Under this initiative, selected contestants will perform at concerts to be broadcast on CMR and taped for later broadcast on local ethnic television services. The winners will receive studio time, and their recordings will be released on a compilation CD.
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- $15,000 to support the Great Canadian Cross Cultural Festival. CMR will hold an annual outdoor music festival featuring talent search winners as well as local non-ethnic Canadian performers. The Commission notes that, according to CMR, winners of the talent contest offered by the new French-language community radio station approved in French-language FM community radio station in Toronto, Decision CRTC 2003-116, 17 April 2003, will also appear at this festival.
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- $3,000 to fund the development of the Canadian Association of Ethnic Broadcasters' catalogue of ethnic recordings.
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- $7,000 to establish three scholarships for visible minority youth to study journalism at a local college or at Ryerson University.
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48.
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The Commission finds that the applicant's commitments for Canadian talent development are appropriate for an ethnic station serving the GTA, and is imposing these commitments as conditions of licence. The conditions of licence are set out in the appendix to this decision.
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Impact of a new entrant and competitive state of the market
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Concerns of interveners
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49.
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Licensees of three ethnic radio stations serving the GTA either opposed or commented on the CMR application and the effect that approval of CMR's proposal could have on their own operations.
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50.
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CJMR 1320 Radio Limited (CJMR Ltd.) opposed the CMR application. CJMR Ltd. is the licensee of CJMR, a Toronto-area ethnic radio station serving the GTA that includes programming for South Asian communities in its schedule. CJMR Ltd. stated that South Asian programming, mostly in Punjabi, accounted for over 59.5 hours of CJMR's weekly programming schedule and represented 52% of its revenues. CJMR Ltd. submitted that approval of CMR's application would have a negative effect on CJMR's profitability. CJMR Ltd. noted, however, that CMR had indicated that it was willing to work with CJMR Ltd. to design a broadcast schedule that did not conflict with CJMR's program schedule. CJMR Ltd. stated that this gesture put it "slightly more at ease" with the approval of CMR's application, as opposed to the approval of other applications that proposed programming oriented to the South Asian communities.
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51.
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Fairchild Radio Group Ltd. (Fairchild) expressed concern about the potential impact of a new ethnic station on its own operations. Fairchild is the licensee of ethnic station CHKT Toronto, a station that broadcasts programming primarily for the Chinese community. Fairchild recommended that any new ethnic radio station licensed to serve Toronto be subject to a condition of licence that either prohibits or restricts the amount of programming in Cantonese or Mandarin, or programming directed to Chinese audiences, that it broadcasts.
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52.
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CIRC Radio Inc. (CIRC) expressed similar concerns. CIRC is the licensee of ethnic station CIRV-FM Toronto, a station that broadcasts in 10 languages each broadcast week. The language group that receives the highest level of service from CIRV-FM is the Portuguese community. CIRC submitted that, if the CMR proposal were licensed, the Commission should impose conditions to ensure that it continued to provide service to the communities that CMR proposed to serve in its application.
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The applicant's replies
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53.
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In its reply comments at the public hearing, CMR stated that it had consulted with CJMR Ltd. to ensure that there were no scheduling conflicts between the programming of its proposed station and that of CJMR, an action confirmed by CJMR Ltd. CMR submitted that it did not want to duplicate the programming of existing stations since duplication would not lead to adequate service for underserved groups.
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54.
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At the hearing, CMR confirmed that it did not propose to broadcast any programming in Portuguese, Cantonese or Mandarin, or programming directed to Chinese audiences. It further stated that it would be willing to accept conditions of licence that set out the amount of programming that must be directed to the major language groups identified in its application.
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The Commission's findings
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55.
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The Commission generally favours competition and diversity, and the improvements in the overall quality of available services that they promote. At the same time, the Commission seeks to ensure that the competitive impact of a new entrant to the radio market will not impinge unduly on the ability of incumbent stations to meet their programming responsibilities.
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56.
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The Commission considers that approval of CMR's application for a new ethnic radio station will have no significant negative effect on Toronto's existing English-language commercial AM and FM stations.
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57.
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With respect to the interventions by CIRC and Fairchild, the Commission notes CMR's commitment not to target its programming to Chinese audiences or to broadcast programming in Cantonese and Mandarin, as well as its commitment not to offer Portuguese programming. Further, as indicated earlier, the Commission is imposing a condition of licence requiring CMR to ensure that at least 48% of all ethnic programs broadcast during each broadcast week are in the Tamil, Hindi and Filipino languages. The Commission considers this condition will ensure that CMR continues to orient its programming to the South Asian communities and that it is therefore not necessary to impose additional conditions of licence, as suggested by CIRC and Fairchild.
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58.
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With respect to CJMR Ltd.'s intervention, the Commission recognizes that the station proposed by CMR will broadcast programming oriented to the South Asian communities - communities that are also the focus of some of the programming of CJMR. However, the Commission considers that CMR's potential impact on CJMR will be limited since, although both will be oriented to South Asian communities, CMR's programming will be different from the programming on CJMR, which is mostly in Punjabi. The largest block of programming on CMR will be in Tamil, followed by programming in Hindi and Urdu. The Tamil community is not currently served by CJMR or by any other over-the-air ethnic station in the GTA, outside of the midnight to 6 a.m. time period. The Commission further notes CMR's commitment to schedule its programming so that it does not coincide with the South Asian programming broadcast by CJMR. In light of the above, the Commission considers that the station proposed by CMR will increase the availability of programming for the GTA's underserved South Asian communities without having a significant impact on CJMR.
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The Commission's determination
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59.
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The Commission considers that the new FM station proposed by CMR will provide a high level of service to a variety of cultural and linguistic groups, particularly the GTA's South Asian communities. It considers that the service proposed by CMR is consistent with the objectives of the Commission's Call, its Ethnic Policy and its criteria for evaluating competitive applications for commercial radio stations.
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60.
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In light of the above, and for reasons set out in the Introductory Statement, the Commission approves the application by CMR for a commercial FM ethnic radio station to serve the GTA. The new station will operate at 101.3 MHz (channel 267B1) with an effective radiated power of 440 watts.
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Issuance of the licence
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61.
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The licence will expire on 31 August 2009 and will be subject to the conditions set out in the appendix to this decision and in the licence to be issued.
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62.
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The Department of Industry (the Department) has advised the Commission that, while this application is conditionally technically acceptable, it will only issue a broadcasting certificate when it has determined that the proposed technical parameters will not create any unacceptable interference with aeronautical NAV/COM services.
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63.
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The Commission reminds the applicant that, pursuant to section 22(1) of the Broadcasting Act, no licence may be issued until the Department notifies the Commission that its technical requirements have been met, and that a broadcasting certificate will be issued.
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64.
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Furthermore, the licence for this undertaking will be issued once the applicant has informed the Commission in writing that it is prepared to commence operations. The undertaking must be operational at the earliest possible date and in any event no later than 24 months from the date of this decision, unless a request for an extension of time is approved by the Commission before 17 April 2005. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before this date.
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Employment equity
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65.
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In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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Secretary General
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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: http://www.crtc.gc.ca
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SCMO services are audio services provided on the subcarriers of FM radio stations. Listeners require special radio receivers to decode SCMO signals.
These criteria were first set out in Introductory statement - Licensing new radio stations, which appeared in Decisions CRTC 99-480, 99-481 and 99-482, all dated 28 October 1999.
These criteria were first set out in Introductory statement - Licensing new radio stations, which appeared in Decisions CRTC 99-480, 99-481 and 99-482, all dated 28 October 1999.
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Date Modified: 2003-04-17