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Broadcasting Decision CRTC 2003-194
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Ottawa, 2 July 2003
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Canadian Hellenic Cable Radio Ltd.
Montréal, Quebec
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Application 2002-0270-6
Public Hearing at Montréal, Quebec
3 February 2003
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Ethnic FM radio station in Montréal
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In this decision, the Commission approves the application by Canadian Hellenic Cable Radio Ltd. (Hellenic Radio) for a new ethnic FM radio station in Montréal at 105.1 MHz. The new station will direct its programming primarily to the Greater Montréal Area's Greek-speaking community and will also provide ethnic programming in Armenian, Croatian, Serbian, Russian and Tagalog, as well as in English and French.
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Introduction
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1.
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The Commission received an application by Canadian Hellenic Cable Radio Ltd. (Hellenic Radio) for a broadcasting licence to operate a commercial FM ethnic radio programming undertaking in Montréal at 105.1 MHz (channel 286A) with an effective radiated power (ERP) of 141 watts.
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2.
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The Commission considered Hellenic Radio's application at a public hearing held in Montréal from 3 to 19 February 2003. At the public hearing, the Commission heard eleven other applications in connection with the Montréal market, including an application by the Canadian Broadcasting Corporation (CBC) to amend the broadcasting licence for CBME-FM Montréal by adding a transmitter in Montréal at 104.7 MHz.
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3.
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The Department of Industry (the Department) advised that the use of 105.1 MHz, as proposed in Hellenic Radio's application, would be second adjacent1 with the use of 104.7 MHz, as proposed in the CBC's application. The Department stated that, while these applications would usually be considered to be technically mutually exclusive, it would be possible for the two operations to co-exist if each applicant were willing to accept a zone of interference around the other's transmitter site. At the hearing, each applicant stated that it was willing to accept interference from the other party's station.
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4.
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Of the twelve applications related to the Montréal market, the Commission today approves five: the present proposal for the operation of a commercial ethnic FM radio station, the proposals for the operation of a commercial French-language specialty (jazz and blues) FM radio station (Broadcasting Decision CRTC 2003-192), of a commercial French-language AM radio station (Broadcasting Decision CRTC 2003-193) and of a native FM radio station (Broadcasting Decision CRTC 2003-195) as well as the request for the addition of a transmitter to the broadcasting licence for CBME-FM (Broadcasting Decision CRTC 2003-196).
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5.
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The criteria used by the Commission to evaluate the applications considered at the 3 February 2003 public hearing are set out in Introductory statement to Broadcasting Decisions CRTC 2003-192 to 2003-203: Applications related to radio stations in the Province of Quebec, Broadcasting Public Notice CRTC 2003-33, 2 July 2003 (the Introductory Statement). In the Introductory Statement, the Commission also addresses the various proposals that were technically mutually exclusive and the general interventions to most of the applications, and states its conclusions on the capacity of the markets in Montréal, in Sherbrooke, in Trois-Rivières and in Saguenay to support the addition of one or more new radio stations, taking into account the competitive state of each market.
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6.
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The present decision addresses the particulars of Hellenic Radio's application.
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The applicant
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7.
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Hellenic Radio is controlled by its sole shareholder, Mr. John Daperis, and managed by Ms Ossia Maria Griffiths.
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8.
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Since 1965, Hellenic Radio has provided a closed circuit special programming audio service to the Greek-speaking community in the Greater Montréal Area (GMA). The service is distributed by cable and financed solely by advertising. Hellenic Radio stated that, if its application for the proposed over-the-air radio service were approved, it would cease operating its closed circuit service.
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Overview of the application
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9.
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Hellenic Radio stated that at least 70% of all programming broadcast by the proposed FM station would be ethnic programming, and that at least 60% would be in third languages, that is, languages other than English, French or a language of the Aboriginal peoples of Canada. The applicant proposed to serve a minimum of six cultural groups in a minimum of eight languages during each broadcast week.
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10.
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A primary focus of the new station would be to provide an over-the-air radio service to the Greek-speaking community in the GMA. In its application, Hellenic Radio stated that it would also broadcast programming targeted to the Armenian, Croatian and Serbian communities in the mother tongue of each of these cultural groups as well as programming in third languages targeted to other cultural groups. At the hearing, the applicant clarified that the other cultural groups to be served would be the Russian and Filipino communities and that the station would provide ethnic programming in at least eight languages: Greek, Armenian, Croatian, Serbian, Russian, Tagalog, French and English.
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11.
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Hellenic Radio presented evidence of demand in the Montréal market for its proposed station. It cited data from Statistics Canada's 2001 Census of Canada indicating that approximately 41,000 people of Greek heritage live in Montréal, representing about 1.2% of the city's total population. The applicant also stated that its own market research found that 80% of these people declare Greek as their mother tongue, while over 51% speak Greek at home. In addition, the applicant claimed that the Greek cultural community is underserved by the existing radio stations that provide ethnic programming in the GMA. It also emphasized that there are no over-the-air radio or television services available to the Armenian, Croatian and Serbian cultural groups.
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12.
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Hellenic Radio planned to devote approximately 60% of the programming aired in each broadcast week to music. At least 90% of all musical selections would be drawn from content category 3 (special interest). Almost all of the category 3 musical selections would be drawn from content subcategory 33 (world beat and international music).
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The interventions
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13.
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The Commission received 85 interventions in support of Hellenic Radio's application from individuals and organizations related to the ethnic communities that the applicant proposed to serve. The interveners generally considered that the programming proposed by Hellenic Radio would be of interest and benefit to these cultural communities.
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14.
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An intervention filed by la radio communautaire intergénération Jardin du Québec (Radio intergénération), the licensee of the French-language community radio station CHOC-FM Saint-Rémi, did not object to the proposed new ethnic radio service, but did oppose Hellenic Radio's request to operate at 105.1 MHz in Montréal. The intervener stated that it planned to file an application with the Commission to use 105.1 MHz to reduce the interference its station experiences from WKOL Plattsburgh, New York, and another radio station in Vermont.
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15.
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In response, Hellenic Radio stated that it had specifically designed the contours of its proposed radio station so that they would not encroach on CHOC-FM's signal in St-Remi or in its surrounding areas.
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16.
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The Commission notes that, to date, it has not received an application by Radio intergénération to use 105.1 MHz for the operation of CHOC-FM. The Commission also notes that the Department has indicated that CHOC-FM's contour will be protected from the operation of Hellenic Radio's station at 105.1 MHz.
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17.
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The Commission also received opposing interventions from Radio Centre-Ville Saint-Louis (Radio Centre-Ville) and from Fred Leclaire and Hyman Glustein. The interveners expressed concern that approval of Hellenic Radio's proposal would have a negative impact on the existing radio stations that currently provide ethnic programming in the Montréal market. These interventions are discussed later in this decision under the heading "Impact of a new entrant and competitive state of the market."
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18.
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An opposing intervention submitted by the Association des radiodiffuseurs communautaires du Québec as well as the comments filed by the Association québécoise de l'industrie du disque, du spectacle et de la vidéo, by the Société professionnelle des auteurs et compositeurs du Québec and by the Union des artistes are discussed in the Introductory Statement.
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Evaluating the application
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19.
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The Commission has considered the merits of Hellenic Radio's application in light of how it meets 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 Ethnic Policy
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20.
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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 Radio Regulations)as minimum standards that must be met.
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Levels of ethnic and third language programming
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21.
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Section 7.(1) of the Radio Regulations stipulates that an ethnic radio station shall devote not less than 60% of its broadcast week to ethnic programs. Section 7.(2) requires 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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22.
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In its application, Hellenic Radio stated that it would devote a minimum of 70% of the programming broadcast during each broadcast week to ethnic programs. Hellenic Radio further made a commitment to devote a minimum of 60% of the programming broadcast during each broadcast week to third language programs.
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23.
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Hellenic Radio's commitments with respect to the amounts of ethnic and third language programming to be broadcast exceed the minimum requirements of the Radio Regulations. Given the competitive nature of this proceeding, the Commission considers that it is appropriate to impose these commitments as conditions of licence,as set out in the appendix to this decision.
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Broad service requirement
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24.
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Under the Ethnic Policy, ethnic stations are expected to serve a range of ethnic groups in a variety of languages since the scarcity of available 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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25.
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When dealing with applications for ethnic services, the Commission decides on 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.
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26.
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In support of its plans to target its programming primarily to the Greek community, Hellenic Radio reiterated that it has been serving this cultural group since 1965 through its closed circuit special programming audio service distributed by cable. The applicant stated that members of the Greek community are accustomed to receiving Hellenic Radio's service and that it should be available to them over-the-air. It also submitted that the Greek community is currently underserved by existing over-the-air radio stations in the Montréal market.
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27.
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Hellenic Radio explained that it had decided to also target programming to the Armenian, Serbian, Croatian, Russian and Filipino cultural groups because they are active, well-organized communities that would be able to contribute a substantial amount of content for programs. The applicant noted that many members of the Greek, Armenian, Serbian and Russian communities are Orthodox Christians and, therefore, share close religious ties. It stated that its research had revealed that the Armenian, Croatian, Serbian and Filipino cultural groups currently do not receive any over-the-air radio service targeted to their respective community.
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28.
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The GMA is currently served by two ethnic radio stations, a community radio station that broadcasts some ethnic programming and a multilingual television station. In addition, the signal of an out-of-market radio station reaches Montréal and offers some ethnic programming in the market. The Commission's analysis of the programming offered by these over-the-air radio and television stations, in 2001 and 2002, indicates that, in each broadcast week, the Greek cultural group received 40.25 hours of radio service and 7 hours of television service, the Russian cultural group received one hour of radio service and the Filipino cultural group received 2 hours of television service. There was no over-the-air radio or television programming targeted specifically to the Armenian, Serbian, or Croatian cultural groups.
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29.
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The Commission is satisfied that there is evidence of support from the cultural groups to be served and that the applicant will be able to provide quality programming. The Commission finds that the approach outlined by Hellenic Radio is appropriate in that it will ensure the availability of more over-the-air radio programming in Montréal for the six cultural groups identified by the applicant as currently underserved.
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30.
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The Commission considers it appropriate to impose, as a condition of licence, the applicant's commitment to offer, on a weekly basis, programming directed to a minimum of six cultural groups in a minimum of eight languages. This condition is set out in the appendix to this decision.
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Level of Canadian music
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31.
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Section 2.2 of the Radio Regulations provides that, if 7% or more 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) musical selections and at least 10% of all category 3 (special interest) musical selections broadcast during the part of the broadcast week that is not devoted to ethnic programs 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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32.
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In its application, Hellenic Radio made a commitment to devote 10% of all musical selections broadcast during ethnic programming periods to Canadian selections. At the public hearing, Hellenic Radio agreed to abide by its commitment by condition of licence. Accordingly, the Commission is imposing the commitment as a condition of licence,as set out in the appendix to this decision.
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Local reflection
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33.
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The Ethnic Policy provides that a primary responsibility of over-the-air ethnic radio stations should be to serve their local community. Accordingly, ethnic broadcasters should provide plans on how they will reflect local issues and concerns.
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34.
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Hellenic Radio stated that approximately 80% of the broadcast week will be devoted to local programming produced by the applicant and by members of the cultural groups to be served. At the hearing, the applicant confirmed that it does not intend to offer any brokered programming at this time.
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35.
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Spoken word programming will make up about 40% of the schedule. In addition to spoken word programs that will appeal to its general audience, the station will offer programming of specific interest to children under the age of six, to teenagers and to seniors.
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36.
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Approximately half of the spoken word programming, or 25 hours in each broadcast week, will be devoted to news with eight to nine hours of the weekly newscasts devoted exclusively to local news. Local news will reflect the GMA, Laval and the South Shore areas of Montréal, while the areas outside the station's contours will be reflected in the regional news items. News will always be presented in the ethnic languages of the cultural groups to be served.
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37.
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Hellenic Radio will offer a call-in program to provide opportunities to members of the local ethnic communities to express their views on various issues. At the hearing, Hellenic Radio noted that it has been offering open-line programs three nights a week for the past 34 years on its closed circuit special programming audio service and confirmed that it has internal written guidelines to ensure that such programming is consistent with the Commission's Policy Regarding Open-Line Programming,Public Notice CRTC 1988-213, 23 December 1988. Hellenic Radio submitted a copy of its guidelines to the Commission following the hearing. The Commission is satisfied that the applicant understands the importance of exercising control over the content of open-line programs and that it will implement appropriate mechanisms to monitor such programs.
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38.
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Hellenic Radio stated that the music aired on the proposed station will respond to the needs and interests of its target cultural groups. It will offer young people from these communities opportunities to present their musical talents on air.
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39.
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Hellenic Radio made a commitment to establish a five-member advisory board. Of the five members, four will represent each of the principal cultural groups to be served by the station, namely the Greek, Armenian, Serbian and Croatian communities, and one will represent the broader community of the GMA. The advisory board will provide advice to the station management regarding programming issues and receive feedback from the various ethnic communities concerning the station's programming. It will also help the station management to identify on-air talent within these communities.
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40.
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The Commission finds that Hellenic Radio'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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41.
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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 market;
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- The quality of the application;
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- The impact of a new entrant on existing stations; and
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- The competitive state of the market.
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Diversity of news voices in the market
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42.
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The Commission notes that Hellenic Radio will provide a new over-the-air radio news voice for Montréal residents. As described earlier in this decision, all news broadcast on the proposed station will be in the languages of the cultural groups to be served, including communities that currently receive little or no television or radio programming in their respective mother tongues. The station will thus increase the choice of news programming in third languages in the GMA.
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Quality of the application
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43.
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The Commission applies the following four main criteria when assessing the quality of applications for new commercial radio stations:
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- 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; and
- Commitments in support of the development of Canadian talent.
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Local programming plans and Canadian content commitments
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44.
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Hellenic Radio'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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45.
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Hellenic Radio projected $513,750 in revenues in 2003, increasing to $1,109,488 by 2009. The applicant based its projections on the current performance of its closed circuit radio service and the anticipated revenue growth associated with an over-the-air service available to a broader audience. It expected that approximately 85% of these revenues would be generated by the Greek cultural group.
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46.
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The Commission has examined Hellenic Radio's projected revenues in light of the actual revenues generated by its current closed circuit service and by the existing ethnic radio stations in Montréal. The Commission considers that Hellenic Radio's projections are reasonable.
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47.
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The Commission finds that Hellenic Radio has presented a viable business plan for its proposed station.
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Canadian talent development
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48.
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In its application, Hellenic Radio confirmed that it will participate in the plan developed by the Canadian Association of Broadcasters (CAB) for contributions by radio licensees to Canadian talent development. As a participant in this plan, the applicant will, based on the size of the Montréal market, contribute at least $8,000 in each broadcast year to eligible third parties for the development of Canadian musical and other artistic talent. In its application, Hellenic Radio stated that, beginning in the fourth year of operation, its contributions under the CAB's plan may increase, based on the station's earnings. If its projected revenues were met, the applicant would make contributions in accordance with the CAB's plan as follows:
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49. .
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As well as participating in the CAB's plan, Hellenic Radio stated that it will contribute $3,000 a year for seven years to the Canadian Association of Ethnic Broadcasters (CAEB) to fund the development of a catalogue of Canadian ethnic recordings.
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50.
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After discussions at the hearing, Hellenic Radio clarified its commitments to Canadian talent development and stated that it will:
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- in each broadcast year of the first three years of operation, contribute a minimum of $8,000 to eligible third parties for the development of Canadian musical and other artistic talent in accordance with the CAB's plan;
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- beginning in the fourth year of operation and in each subsequent broadcast year of the licence term, contribute either a minimum of $8,000, or a minimum of 2.5% of its total revenues, whichever amount is greater, to eligible third parties for the development of Canadian musical and other artistic talent; and
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- over a seven-year period, contribute a minimum of $3,000 in each broadcast year to the CAEB to fund the development of a catalogue of Canadian ethnic recordings.
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51.
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The Commission finds that the applicant's commitments for Canadian talent development are appropriate for an ethnic radio station serving the GMA, and is imposing these commitments as conditions of licence,as 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 the interveners
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52.
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Radio Centre-Ville is the licensee of CINQ-FM Montréal, a community radio station that provides programming to various cultural groups in the GMA, including the Greek community. According to Radio Centre-Ville, the Greek community in the GMA is already well served by the licensed radio stations that provide ethnic programming in the market. The intervener noted that, in each broadcast week, its own station offers 12 hours 30 minutes of Greek-language programming, while ethnic radio station CFMB Montréal offers 16 hours, and community radio station CHAA-FM Longueuil offers 6 hours. Radio Centre-Ville also expressed concern about the potential negative financial impact of licensing Hellenic Radio's proposed ethnic radio station on the existing radio stations that currently provide ethnic programming to listeners in the GMA.
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53.
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Messrs Leclaire and Glustein considered that Hellenic Radio's proposed programming schedule would not complement those of existing radio stations that offer ethnic programming in the market and would increase the fragmentation of audiences and advertising revenues.
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The applicant's replies
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54.
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In response, Hellenic Radio pointed out that it has been providing programming to the Greek-speaking community since 1965, through its cable distributed closed circuit radio service that it is completely financed by advertising. Hellenic Radio stated that it currently broadcasts 119 hours of programming targeted to this cultural group in each broadcast week. It maintained that, since it will also provide programming to other ethnic communities that currently receive little or no over-the-air radio service targeted specifically to them, the proposed station will complement, not compete with existing radio stations in the market.
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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 capacity of the Montréal market to sustain one or more new entrants and the competitive state of the market are discussed in the Introductory Statement. With regard to the specific concerns raised in the interventions by Radio Centre-Ville and Messrs Leclaire and Glustein, the Commission finds that approval of Hellenic Radio's application for a new ethnic radio station will not have a significant negative effect on Montréal's existing radio stations.
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Cultural diversity
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57.
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In Commercial Radio Policy 1998, Public Notice CRTC 1998-41, 30 April 1998, the Commission encouraged all radio broadcasters to reflect the cultural diversity of Canada in their programming and employment practices, especially with respect to news, music and promotion of Canadian artists.
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58.
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The Commission notes that Hellenic Radio will provide many opportunities to the cultural groups to be served to participate in the proposed station in various ways, including producing programming, participating in the advisory committee, and expressing their views and concerns on open-line programming. Hellenic Radio also stated that the proposed station's personnel will include members of Montréal's cultural communities and that on-air personalities will reflect Canada's diversity.
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59.
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The Commission is satisfied with the information presented by Hellenic Radio both in its application and in discussions at the hearing regarding its plans to reflect cultural diversity in the operation of its proposed station. The Commission considers that the proposed station will contribute to the fulfilment of the objectives of section 3(1)(d)(iii) of the Broadcasting Act which states, in part, that the Canadian broadcasting system should reflect the multicultural and multiracial nature of Canadian society.
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The Commission's conclusion
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60.
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The Commission considers that the new FM station proposed by Hellenic Radio will provide a high quality, over-the-air radio service to cultural groups in the GMA that are currently underserved. The Commission finds that the service proposed by Hellenic Radio is consistent with the objectives of the Ethnic Policy and the criteria for evaluating competitive applications for commercial radio stations.
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61.
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In light of the above, the Commission approves the application by Canadian Hellenic Cable Radio Ltd. for a commercial FM ethnic radio programming undertaking to serve the GMA. The new station will operate at 105.1 MHz (channel 286A) with an ERP of 141 watts.
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Issuance of the licence
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62.
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The licence will expire on 31 August 2009 and will be subject to the conditions specified therein and in the appendix to this decision.
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63.
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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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64.
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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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65.
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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 2 July 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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66.
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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: www.crtc.gc.ca
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1 In FM radio broadcasting, the second adjacent channel is a term used when two frequencies are separated by an interval of 400 kHz. FM radio broadcasting frequencies are separated by intervals from 88.1 MHz to 107.9 MHz. Department of Industry rules governing frequency allocation prohibit the licensing of stations located within the same community or in neighbouring communities and that use any frequency deemed to be a second adjacent frequency.
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: 2003-07-02