|
Broadcasting Decision CRTC 2003-118
|
|
Ottawa, 17 April 2003
|
|
Sur Sagar Radio Inc.
Toronto, Ontario
|
|
Application 2002-0256-5
Public Hearing at Toronto, Ontario
17 September 2002
|
|
Stand-alone ethnic transitional digital radio undertaking in Toronto
|
|
In this decision, the Commission approves the application by Sur Sagar Radio Inc. (Sur Sagar) for a stand-alone ethnic transitional digital radio undertaking to serve Toronto. 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 five cultural groups in at least five languages during each broadcast week. At least 70% of all ethnic programs broadcast during each broadcast week will be in the Punjabi, Hindi and Urdu languages. This is the first time the Commission has approved a stand-alone digital radio service.
|
|
Sur Sagar'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.
|
|
Introduction
|
|
1.
|
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).
|
|
2.
|
In response to the Call, the Commission received 16 applications for new radio 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 Sur Sagar Radio Inc. (Sur Sagar) for a broadcasting licence to operate a stand-alone ethnic transitional digital radio undertaking (DRU) to serve the GTA. The transmitter for the proposed undertaking would be located at the CN Tower in Toronto and would employ the EUREKA-147 digital audio broadcasting system. This technology was first developed in Europe and has been confirmed by the Department of Industry (the Department) as the standard for digital audio broadcasting in Canada. The applicant proposed to operate the transmitter using frequency 1454.56 MHz (DRB channel 2) with an effective isotropic radiated power of 5,084 watts.
|
|
3.
|
The Commission considered all the applications filed in response to the Call in a proceeding that included a public hearing held in Toronto from 17 to 27 September 2002.
|
|
4.
|
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 Sur Sagar, as well as an application to change the technical parameters of an existing transmitter. This decision addresses the particulars of the Sur Sagar application.
|
|
Ownership structure
|
|
5.
|
Sur Sagar, which is owned by Ravinder Singh Pannu, currently operates a subsidiary communications multiplex operations (SCMO)1 service for Toronto's Punjabi and Hindi communities using the subcarrier of CIUT-FM. The Commission authorized the service in New Punjabi- and Hindi-language SCMO service, Decision CRTC 2001-644, 11 October 2001. Mr. Pannu is also the sole owner of S. S. TV Inc., licensee of the national Category 2 specialty television service known as SSTV, which was approved in SSTV, Decision CRTC 2000-648, 24 November and 14 December 2000, to provide programming that focuses on the Punjabi and other South Asian communities. Finally, Mr. Pannu holds a 20% interest in 3885275 Canada Inc. "Canadian Multicultural Radio" (CMR). The Commission has approved an application by CMR for a new ethnic FM radio station that will provide programming primarily to South Asian communities in Ethnic FM radio station in Toronto, Broadcasting Decision CRTC 2003-115, 17 April 2003.
|
|
Overview of the programming
|
|
6.
|
Sur Sagar stated that 100% of the programming broadcast by the proposed digital 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. Sur Sagar proposed to serve a minimum of five cultural groups in a minimum of five languages during each broadcast week.
|
|
7.
|
A primary focus of the new station would be to provide additional service to Toronto's growing South Asian communities, communities that it considered to be underserved by existing ethnic stations in the GTA. Sur Sagar stated that more than 70% of the broadcast week would be devoted to programming targeted to South Asian communities. Such programming would be broadcast in the Punjabi, Hindi and Urdu languages.
|
|
Interventions
|
|
8.
|
The Commission received 19 interventions in support of the Sur Sagar application. Among the interveners were various community organizations and cultural associations. In their view, the South Asian communities in the GTA are underserved and approval of Sur Sagar's application would provide another venue for the discussion of issues of concern to South Asians in the GTA.
|
|
9.
|
Interventions by two existing Toronto ethnic radio stations, Fairchild Radio Group Ltd. (Fairchild) and CJMR 1320 Radio Limited (CJMR Ltd.), are discussed later in the decision under the heading "Impact of a new entrant and competitive state of the market."
|
|
10.
|
Although the Canadian Association of Broadcasters (CAB) did not intervene against Sur Sagar specifically, it filed comments objecting to the licensing of stand-alone digital radio programming services in Toronto or any other market at this time. The CAB's comments are discussed in the following section of this decision.
|
|
Digital licensing
|
|
Intervention
|
|
11.
|
The CAB submitted that the Commission should not license stand-alone digital radio programming services at this time. It stated first that audiences for digital audio broadcasting (DAB) services are very limited at present and are not measured by BBM Canada, nor factored into any audience data for radio. Any evidence presented to support a stand-alone DAB service business plan or to demonstrate the ability to provide service in the initial licence period would therefore, it argued, be based on speculation alone. Furthermore, the CAB submitted that, since audiences of DAB services are not being measured, a stand-alone DAB service would defeat the purpose of the Commission's Call, which was to increase the number of radio services for underserved ethnic audiences in the GTA.
|
|
12.
|
The CAB also submitted that the economic value of the spectrum reserved for DAB could initiate a "gold rush" for digital licences. The CAB stated that recent developments in digital radio receiver technology, such as lower-cost home receivers and advancements in portable receivers, could fuel expectations that DAB services will garner major revenues in the near term. In addition, given that a number of broadcasters have undertaken a comprehensive engineering study to assess the infrastructure and investment needs for the expansion of DAB, non-broadcasters might assume that a DAB licence would pay major dividends if it were simply acquired and held for a period of time. The CAB also expressed concern that licensing speculative business interests before the business case for DAB is fully in place would be unfair to the many existing radio broadcasters that have invested significantly to research and to roll out DAB.
|
|
13.
|
The CAB submitted that licensing stand-alone DAB services could be inconsistent with the objectives of A policy to govern the introduction of digital radio, Public Notice CRTC 1995-184, 29 October 1995 (the Policy) and upset the current market-driven model. The CAB suggested that the Commission might need to review the Policy to determine a licensing framework for stand-alone DAB stations before it considers applications for such services. Given the uncertainties of the financial model, the CAB stated that it could not see how such a licensing framework could be structured at this time.
|
|
14.
|
The CAB was also concerned that if applicants submitted a DAB application, as the Policy permits, along with their AM or FM application, the DAB channels available in the GTA would be exhausted, leaving no available capacity for a stand-alone service.
|
|
15.
|
Finally, the CAB argued that other technical options, including SCMO and specialty audio programming services, are available to applicants wanting to launch a targeted radio service. According to the CAB, these transmission options, combined with available AM and FM frequencies in the GTA, would provide ample broadcasting capacity and would obviate the need for stand-alone DAB licences.
|
|
The applicant's reply
|
|
16.
|
In response to the CAB's comments, Sur Sagar argued that the overall lack of credible evidence to support a business plan for digital radio indicates that a new approach to digital radio is needed. Specifically, it submitted that this new approach should be based on "programming innovation" rather than the rebroadcasting of the programming of analog stations. Sur Sagar acknowledged that there were risks involved in starting a stand-alone digital station but added that Sur Sagar's experience operating an SCMO service would give it an advantage over other applicants who lack such experience:
|
|
I would also like to point out that the risk is mine and mine alone. It is my investment in this station, not [that of] the members of the CAB. If it fails, I will lose the money. I am willing to take that risk, as I did in the past in starting my SCMO and digital television.
|
|
17.
|
Sur Sagar submitted that the CAB's first two arguments contradicted one another: "If there is no business case, then there will be no 'gold rush.'" Sur Sagar argued that licensing stand-alone digital radio services could in fact help those licensees who have put so much work into implementing DAB services. In the applicant's view, consumers would be more willing to purchase digital receivers if they had more choice of programming than what is available on analog stations.
|
|
18.
|
On the subject of the value of the spectrum and the investment made by commercial broadcasters in developing the technology, Sur Sagar stated that the spectrum was "public property, not the private reserve of those who have experimented."
|
|
19.
|
Sur Sagar submitted that approval of its application would not be inconsistent with the objectives of the Policy. The applicant submitted that nowhere does the Policy state that a new digital service must eventually replace an existing analog service. On the contrary, the Policy states that stand-alone digital services will be dealt with on a "case-by-case basis." Sur Sagar also accepted that its obligations and requirements could change once a permanent digital radio policy is adopted by the Commission.
|
|
20.
|
Finally, Sur Sagar acknowledged that while other technical options exist, they had limitations. SCMO services were characterized by poor quality signals and could not be received in a car. Sur Sagar submitted that, in contrast, a stand-alone digital radio station would provide a high quality service to complement existing AM and FM stations, as well as SCMO services.
|
|
The Commission's determination
|
|
21.
|
In the Policy, the Commission established a process for licensing digital radio undertakings on a transitional basis. As stated in the Policy, the Commission intends to conduct a public process, in the future, to consider all aspects of digital radio broadcasting for the longer term. The transitional policy was put in place to encourage the development of digital radio technology and to allow for the experimental use of the L-Band spectrum.
|
|
22.
|
With the Policy, the Commission adopted a streamlined approach to licensing existing AM and FM licensees that wanted to simulcast their programming using digital technology. To date, the Commission has approved 26 applications for transitional digital radio licences from analog stations in Toronto. Of this number, 24 have launched their digital services.
|
|
23.
|
At the same time, the Commission recognized that certain parties that did not operate an AM or FM radio service might want to apply for a digital radio licence. The Commission therefore concluded that it would adopt a case-by-case approach in its consideration of applications for digital radio licences to provide new services during the transitional period. Accordingly, the Commission considers that approval of a stand-alone digital radio application would not be inconsistent with the Policy.
|
|
24.
|
The Commission further notes that the applicant has accepted that requirements currently imposed on licensees under the Policy could change or become more stringent following the establishment of a long-term policy.
|
|
25.
|
The Commission also determined in the Policy that all digital licences issued during the transitional period would be Transitional Digital Radio Licences, regardless of whether the service is based on the simulcast of an existing analog station or the establishment of a stand-alone digital service. In addition, all these licences would be in effect for a three-year term only. A three-year term would allow sufficient time for the holder of a Transitional Digital Radio Licence to revise its business plan based on experience, and present this plan at the time of its licence renewal. To meet this objective, new licensees would need to commence operations as early as possible and not simply hold a DAB licence until DAB service has evolved more fully.
|
|
26.
|
As pointed out by the CAB, a number of existing radio broadcasters have invested in the rollout of DAB services. The Commission recognizes their efforts and considers that the licensing of stand-alone digital services could also benefit them. The applicant already operates a successful SCMO service. Any SCMO subscriber who chose to purchase a DAB receiver to receive the new service offered by Sur Sagar could also enjoy, at no extra cost, the programming of all other digital radio stations in the GTA, including those that simulcast the programming of analog stations.
|
|
27.
|
All existing stations that serve as rebroadcasters on digital radio stations may air a maximum of 14 hours per week of programming on the digital service that is different from what is aired on the analog service. In the Commission's view, making available a DAB service that offers an entire schedule of unique programming for a specialized audience adds value to digital radio and could advance the rollout of the special receiver necessary to obtain such programming. Most importantly, in light of the Call, the Commission considers that Sur Sagar's proposal represents an innovative manner to introduce an additional service that reflects the diversity of languages, as well as the multi-ethnic reality of the GTA, as referred to in the Call.
|
|
28.
|
With respect to the CAB's submission that other technical options are available to applicants interested in launching an ethnic radio service, the Commission notes that DAB services enjoy advantages that these other technical options do not. Specifically, neither SCMO services nor specialty audio programming services2 can offer both high sound quality and the option of listening to the stations either at home or in a vehicle. Digital radio services, on the other hand, presently offer high sound quality and are expected to eventually be available in vehicles.
|
|
29.
|
Finally, while the Commission agrees that the number of digital channels available in the GTA is limited, it considers that there is sufficient capacity to accommodate a stand-alone service without jeopardizing the ability of existing analog services to establish transitional DRUs.
|
|
30.
|
Since the Commission finds that the licensing of a stand-alone digital radio service would not be inconsistent with the Policy, it is prepared to evaluate the Sur Sagar application in light of the same criteria as all the other applications for commercial ethnic radio stations at the hearing.
|
|
Evaluating the application
|
|
31.
|
As noted in the Introductory Statement, the Commission has considered the merits of the Sur Sagar 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 stations3.
|
|
The Call
|
|
32.
|
As stated above, the Commission called for applications that clearly reflect the diversity of languages, as well as the multicultural and multi-ethnic reality of the GTA.
|
|
33.
|
The Commission notes that, under Sur Sagar's proposal, more than 70% 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.
|
|
The Ethnic Policy
|
|
34.
|
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.
|
|
Levels of ethnic and third language programming
|
|
35.
|
Section 7.(1) of the Regulations stipulates that 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.
|
|
36.
|
In its application, Sur Sagar stated that it would devote 100% of its broadcast week to ethnic programming, and proposed to broadcast 80% of its programming in a third language. Sur Sagar also indicated that it would broadcast approximately 21 hours of religious programming per week.
|
|
37.
|
The Commission notes that Sur Sagar'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. Furthermore, the Commission notes that Sur Sagar stated it would accept a condition of licence requiring it to adhere to the Religious Broadcasting Policy, Public Notice CRTC 1993-78, 3 June 1993. The conditions are set out in the appendix to this decision.
|
|
Broad service requirement
|
|
38.
|
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 allows for the provision of service to groups that would not otherwise be able to afford their own single-language service.
|
|
39.
|
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 devote more hours of service to fewer groups.
|
|
40.
|
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.
|
|
41.
|
Sur Sagar proposed to serve five cultural groups in five languages during each broadcast week. Sur Sagar also made a commitment that at least 70% of all ethnic programs broadcast during each broadcast week will be in the Punjabi, Hindi and Urdu languages. Furthermore, some Gujarati service will also be broadcast and all English-language programming will be directed to the Indo-Caribbean community.
|
|
42.
|
The Commission finds that the approach outlined by Sur Sagar 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:
|
|
- offer programming to a minimum of five cultural groups in five languages during each broadcast week
|
|
- ensure that at least 70% of all ethnic programs broadcast during each broadcast week are in Punjabi, Hindi and Urdu
|
|
Level of Canadian music
|
|
43.
|
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.
|
|
44.
|
Sur Sagar proposed to devote at least 7% of all musical selections broadcast during ethnic programming periods to Canadian selections. The applicant stated that it would easily meet its commitment since it has already "built up a library of Canadian content selections." The Commission notes that Sur Sagar's commitment is consistent with the level of musical selections set out in the requirements of the Regulations.
|
|
Local reflection
|
|
45.
|
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.
|
|
46.
|
Sur Sagar stated that 95% of its programming schedule will be local programming, 35% of which will be spoken word. Programming will focus on the Punjabi, Hindi and Urdu communities and will provide some Gujarati and English service as well. The applicant added that the proposed station will provide the opportunity for producers from these communities to develop their skills.
|
|
47.
|
The Commission notes that there is currently no Gujarati radio programming available in the GTA, and thus, no opportunity for this community to listen to services targeted to it. Furthermore, as noted in the Introductory Statement, Hindi, Punjabi, Urdu and Gujarati populations, in particular, are among several South Asian communities in the GTA that are expected to grow significantly and even double between 1996-2006.4 The Commission considers that locally produced programming targeting these communities would, on a large scale, reflect and serve underserved local ethnic communities in the GTA. At the same time, such programming would meet the requirements of the Ethnic Policy.
|
|
48.
|
The Commission finds that Sur Sagar's plans and commitments with respect to local programming, as outlined above, are consistent with the Ethnic Policy.
|
|
Criteria for evaluating competing applications for new commercial radio stations
|
|
49.
|
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:
|
|
- The diversity of news voices in the community
|
|
- The quality of the application
|
|
- The impact of a new entrant on existing stations
|
|
-
The competitive state of the market5
|
|
Diversity of news voices
|
|
50.
|
The Commission notes that Sur Sagar would provide a new over-the-air radio news voice for Toronto residents.
|
|
Quality of the application
|
|
51.
|
The Commission applies the following four main criteria when assessing the quality of applications for new radio stations:
|
|
- The applicant's local programming proposals and plans for providing reflection of the local community
|
|
- Canadian content commitments
|
|
- The quality of the applicant's business plan, including the proposed format
|
|
- Commitments in support of the development of Canadian talent
|
|
Local programming plans and Canadian content commitments
|
|
52.
|
Sur Sagar's local programming proposals and Canadian content commitments are addressed above in the section relating to the Ethnic Policy.
|
|
Business plan
|
|
53.
|
Sur Sagar stated that its programming would focus on education, religion, culture and news in the Punjabi, Hindi, Urdu and Gujarati languages.
|
|
54.
|
The applicant projected advertising revenues of $50,000, $85,000 and $140,000 in its first, second and third years of operation respectively. New advertising clients would account for 50% of these revenues. The applicant also submitted that cross-promotional synergies would exist among its services. For instance, Sur Sagar stated that it would advertise its digital radio station through its existing SCMO service and its digital television channel, SSTV. Sur Sagar was confident that advertisers and subscribers would adopt the new digital technology.
|
|
55.
|
The Commission considers that, while from a business point of view digital radio is still largely unexplored territory, Sur Sagar's business plan appears reasonable in the circumstances. The Commission is satisfied that the station proposed by Sur Sagar would provide programming to an audience that is currently underserved and that the applicant is aware of the challenges and difficulties associated with the proposed undertaking. Furthermore, the Commission finds that Sur Sagar's SCMO and Category 2 specialty television services, as well as its connection to CMR, will offer opportunities for useful synergies to this new service.
|
|
Canadian talent development
|
|
56.
|
The applicant stated that it would contribute $3,000 per year, for a total of $9,000 over its licence term, to Canadian talent development initiatives.
|
|
57.
|
Under the terms of Contributions by radio stations to Canadian talent development - A new approach, Public Notice CRTC 1995-196, 17 November 1995, a radio station in the GTA would be expected to contribute $27,000 per year to Canadian talent development initiatives for the duration of its licence term. The Commission notes that Sur Sagar has proposed a modest operation with projected programming expenditures of $5,000 in the first year, $10,000 in the second year, and $14,000 in the third year. The Commission considers that given the applicant's modest business plan, it is appropriate to require Sur Sagar, by condition of licence, to contribute $3,000 per year in its first three years of operation. The condition is set out in the appendix to this decision.
|
|
Impact of a new entrant and competitive state of the market
|
|
Concerns of interveners
|
|
58.
|
Two licensees of ethnic radio stations serving the GTA expressed concern about the effect that the approval of Sur Sagar's proposal could have on their own operations.
|
|
59.
|
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 that either prohibits or restricts the amount of programming in Cantonese or Mandarin, or programming directed to Chinese audiences, that it broadcasts.
|
|
60.
|
CJMR Ltd. expressed concern about licensing stations that would broadcast programming oriented to the South Asian communities. CJMR Ltd. is the licensee of CJMR, a Toronto-area ethnic radio station that includes programming for South Asian communities in its schedule. CJMR Ltd. stated that South Asian programming accounted for over 59.5 hours of CJMR's weekly programming schedule and represented 52% of its revenues. CJMR Ltd. submitted that approval of Sur Sagar's application would have a negative effect on CJMR's profitability.
|
|
The applicant's replies
|
|
61.
|
Sur Sagar replied that to the extent that the proposed station had some impact on existing stations in the GTA, such impact would be minimal.
|
|
62.
|
In response to Fairchild's intervention, Sur Sagar confirmed that its programming would be targeted to the Punjabi, Hindi, Urdu and Gujarati communities. The applicant stated that it did not intend to direct its programming to the Chinese community or to broadcast in the Cantonese or Mandarin languages.
|
|
63.
|
Sur Sagar argued in reply to CJMR Ltd.'s intervention that the advertising market in the GTA is large enough to sustain both its new service and the existing services in the market. Furthermore, Sur Sagar stated that it would target a different age group than the group targeted by CJMR Ltd. As a result, the programming would be very different, though the language of the broadcasts might be the same.
|
|
64.
|
Finally, in reply to both interveners, Sur Sagar argued that, since it would broadcast its service using digital technology and not the analog technology used by Fairchild and CJMR Ltd, it would not threaten the progress of either intervener's service.
|
|
The Commission's determination
|
|
65.
|
In the Introductory Statement, the Commission notes that South Asian communities are underserved in the Toronto market and that licensing new radio services for them is a priority. The Commission considers that the new ethnic stand-alone digital radio station proposed by Sur Sagar represents an innovative way to provide additional service to these communities.
|
|
66.
|
As noted above, the Commission has found that Sur Sagar's service is consistent with the objectives of the Commission's Call, its Ethnic Policy and its criteria for evaluating competitive applications for commercial radio stations.
|
|
67.
|
The Commission further considers that the proposed Sur Sagar service could help advance the rollout of digital technology by offering an entire schedule of unique programming with high sound quality.
|
|
68.
|
The Commission notes that the projected advertising revenues for Sur Sagar represent only a small percentage of the overall advertising revenues of Toronto ethnic stations, including those of stations serving the South Asian communities. The station should therefore not impinge unduly on the ability of incumbent stations to meet their programming responsibilities.
|
|
69.
|
In the longer term, given the projected growth rates of the South Asian communities in the Toronto area, the Commission considers that the market will be able to absorb the impact of the station and that approval of the Sur Sagar application will have very little, if any, impact on the competitive balance in the market.
|
|
70.
|
With respect to Fairchild's intervention, the Commission notes that Sur Sagar has not proposed to target its programming to Chinese audiences or to broadcast any programming in Cantonese or Mandarin. Further, as indicated earlier, the Commission is imposing a condition of licence requiring Sur Sagar to ensure that at least 70% of all ethnic programs broadcast during each broadcast week are in the Punjabi, Hindi and Urdu languages. The Commission considers this condition will ensure that Sur Sagar continues to orient its programming to the South Asian communities. The Commission concludes that the proposed station will have little, if any, impact on existing stations.
|
|
71.
|
In light of the above, the Commission approves the application by Sur Sagar for a stand-alone ethnic transitional digital radio undertaking to serve the GTA. The new station will operate at 1454.56 MHz (DRB channel 2) with an effective isotropic radiated power of 5,084 watts.
|
|
72.
|
As outlined in the Policy, the Commission expects the licensee to ensure that the main programming signal of each DRU is not noticeably degraded by the shifting of capacity from the DRU to ancillary services.
|
|
Issuance of the licence
|
|
73.
|
The licence will expire on 31 August 2006. This licence term conforms with the Policy, which states that transitional digital radio undertakings not be licensed for more than three-year terms.
|
|
74.
|
The licence will be subject to the conditions set out in the appendix to this decision and in the licence to be issued.
|
|
75.
|
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.
|
|
Employment equity
|
|
76.
|
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.
|
|
Other matters
|
|
77.
|
Sur Sagar must forthwith file with the Commission a copy of its executed, amended By-law No.1, reflecting the resolution passed by Sur Sagar's board of directors on 12 July 2002. According to this resolution, the By-law is to be amended to state that the applicant will comply with the Direction to the CRTC (Ineligibility of Non-Canadians), which requires that not less than 80% of the licensee's directors be Canadians.
|
|
Secretary General
|
|
This decision is to be appended to the licence. It is available in alternative format upon request, and may be examined at the following Internet site: http://www.crtc.gc.ca
|
|
SCMO services are audio services provided on the subcarriers of FM radio stations. Listeners require special radio receivers to decode SCMO signals.
Specialty audio programming services are services delivered by broadcasting distribution undertakings (BDUs) but not licensed as over-the-air services.
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.
|
Date Modified: 2003-04-17