ARCHIVED - Broadcasting Decision CRTC 2003-50

Broadcasting Decision CRTC 2003-50

Ottawa, 14 February 2003

Tom Gamblin, on behalf of a corporation to be incorporated
Saint John, New Brunswick

Application 2002-0348-0
Public Hearing at St. John's, Newfoundland and Labrador
10 December 2002

Low-power FM radio station in Saint John

The Commission approves the application by Tom Gamblin, on behalf of a corporation to be incorporated, to operate an English-language FM radio station in Saint John, New Brunswick.

The application

1.

The Commission received an application from Tom Gamblin, on behalf of a corporation to be incorporated, (Tom Gamblin) for a licence to operate an English-language FM radio programming undertaking in Saint John, New Brunswick. The applicant indicated that the new station would be operated in the specialty format, in which more than 50% of the broadcast week would be devoted to spoken word comedy programming. The proposed station would operate at 103.5 MHz (channel 278LP) with an effective radiated power of 49.6 watts.

Intervention

2.

The Commission received an intervention opposing Tom Gamblin's proposal from New Brunswick Broadcasting Company Limited. The intervener is the licensee of CHSJ-FM and CHWV-FM Saint John.

3.

The intervener stated that Saint John's existing ten radio stations compete among themselves for audience, and also with print, television and outdoor advertising media. The intervener is of the view that an additional radio station in the Saint John market will "adversely affect the existing operations".

4.

The applicant did not reply to the intervention.

The Commission's analysis and determination

5.

The Commission took into consideration that the applicant proposes to operate in a spoken word comedy format that is currently not offered by any existing Saint John radio stations, and that the applicant's revenue projections are modest. Furthermore, the low-power signal of the proposed station would cover only the downtown core of Saint John, and will therefore not have a significant impact on the existing stations in the market.

6.

The Commission also considered the fact that the radio stations in the Saint John market recorded average profits before interest and tax (PBIT) of 17.7% in 2000 and 13.7% in 2001, levels comparable to the Canadian average of 16.1% in 2001. This data suggest that the Saint John radio market is financially healthy and that the market can sustain the entry of a new station.

7.

Based on the factors noted above, the Commission is satisfied that the applicant's proposal will have minimal impact upon incumbent Saint John radio stations. Accordingly, the Commission approves the application by Tom Gamblin, on behalf of a corporation to be incorporated, for a licence to operate a low-power English-language FM radio programming undertaking in Saint John, New Brunswick.

Issuance of the licence

8.

The licence will expire 31 August 2009 and will be subject to the conditionsset outin New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999 (Public Notice 1999-137). The licence will also be subject to the following conditions:

The station shall be operated within the Specialty format as defined in A review of certain matters concerning radio, Public Notice CRTC 1995-60, 21 April 1995, and Revised content categories and subcategories for radio, Public Notice CRTC 2000-14, 28 January 2000, as amended from time to time.

The licensee shall devote more than 50% of each broadcast week to the broadcast of spoken word programming.

The licensee shall broadcast, in any broadcast week, no more than 40% hit material as defined in Revised policy on the use of hits by English-language FM radio stations, Public Notice CRTC 1997-42, 23 April 1997.

9.

The Commission reminds the licensee that, since plans for the new station include the broadcast of some musical selections, the licensee must operate in compliance with all applicable Canadian content regulations. The Radio Regulations, 1986 require all commercial AM and FM licensees to devote to Canadian selections a minimum of 35% of all Category 2 musical selections, and a minimum of 10% of all Category 3 selections.

10.

The licensee will participate in the Canadian Association of Broadcasters' (CAB) Canadian Talent Development (CTD) Plan, which for the Saint John market represents annual contributions of $3,000. That participation is the subject of a condition of licence, set out in Public Notice 1999-137. In addition to that participation, the Commission notes the applicant's commitment to, in each of the first three years of the licence term, contribute to the CAB plan an additional $1,000. The Commission also notes the applicant's commitment that, in each of the final four years of the licence term, it would contribute to the CAB plan $2,000 over and above the amount required.

11.

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.

12.

The Commission reminds the licensee 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.

13.

Given that the technical parameters approved in this decision are for a low-power unprotected FM service, the Commission also reminds the licensee that it will have to select another frequency if the Department so requires.

14.

Furthermore, the licence for this undertaking will be issued once the licensee has:

• Submitted documentation establishing that an eligible Canadian corporation has been incorporated in accordance with the application in all material respects and that this corporation may be issued a licence, and

• 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 14 February 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.

Employment equity

15.

In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Secretary General