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Broadcasting Decision CRTC 2003-580
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Ottawa, 19 November 2003
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The Haliburton Broadcasting Group Inc.
Iroquois Falls and Cochrane, Ontario
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Application 2003-0542-6
Public Hearing in the National Capital Region
29 September 2003
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CJWL-FM Iroquois Falls and CHPB-FM Cochrane - Acquisition of assets
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The Commission approves the application by The Haliburton Broadcasting Group Inc. to acquire the assets of the low-power radio stations CJWL-FM Iroquois Falls and CHPB-FM Cochrane.
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The application
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1.
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The Commission received an application by The Haliburton Broadcasting Group Inc. (Haliburton) for authority to acquire the assets of the low-power radio programming undertakings CJWL-FM Iroquois Falls and CHPB-FM Cochrane from Tri-Tel Communications Inc. (Tri-Tel). Haliburton also requested broadcasting licences to continue the operation of these undertakings.
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2.
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The applicant indicated that it will be in a position to ensure the long-term viability of these stations given its experience operating radio stations in small markets. The applicant stated that it intends to fully integrate the newly acquired stations with all of its existing stations. It also expects these stations to benefit from synergies with its existing northern English-language radio stations, CKAP-FM Kapuskasing and CHMT-FM Timmins. The synergies would occur through the sharing of resources in news, traffic, creative production, community event coverage, music management, sales management, sales representations, overall management and technology platforms.
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3.
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The Commission did not receive any interventions in connection with this application.
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The Commission's analysis and determinations
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Integrity of the licensing process
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4.
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The Commission notes that the transaction would occur within a relatively short period of time since the issuance of the licences. In New FM radio programming undertaking, Decision CRTC 98-458, 28 September 1998, the Commission approved an application by William W. Leacock (on behalf of a corporation to be incorporated, now Tri-Tel) for a broadcasting licence to operate a low-power English-language FM radio programming undertaking in Iroquois Falls. In Low-power English-language FM radio station in Cochrane, Broadcasting Decision CRTC 2003-84, 3 March 2003, the Commission approved an application by Tri-Tel for a broadcasting licence to operate a low-power English-language FM radio programming undertaking in Cochrane.
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5.
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When parties are granted licences to operate broadcasting undertakings and sell the undertakings after a short period of time, the Commission examines such acquisitions carefully to ensure that they do not compromise the integrity of the licensing process. The Commission notes that radio broadcasting involves the use of public frequencies. Licences to operate such undertakings are obtained following a public, and often competitive, process.
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6.
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The applicant stated that Tri-Tel wanted to sell its two radio stations after realizing that the effort required to operate the stations was more challenging than it had anticipated.
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7.
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The Commission has considered the circumstances surrounding the current application, including the intentions of the vendor and the proposed intangible benefits that would result from the combination of the applicant's existing radio stations and the newly acquired stations. In light of the above and given that there were no other competitors in each of the original licensing processes, the Commission is of the view that the proposed transaction does not compromise the integrity of the licensing process.
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Benefits
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8.
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Given that CJWL-FM and CHPB-FM have been unprofitable, the applicant has not proposed any tangible benefits. The Commission notes that this is consistent with Commercial Radio Policy 1998, Public Notice CRTC 1998-41, 30 April 1998 (the Policy), which states that the Commission will forgo benefits requirements for unprofitable undertakings.
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9.
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Furthermore, the Commission considers that the proposed transaction would be in the public interest.
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Conclusion
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In light of the above, the Commission approves the application by The Haliburton Broadcasting Group Inc. for authority to acquire the assets of the low-power radio stations CJWL-FM Iroquois Falls and CHPB-FM Cochrane, and for broadcasting licences to continue the operation of these undertakings.
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Issuance of the licences
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11.
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The Commission will only issue the licences once the vendor has surrendered the current licences to the Commission.
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12.
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The licence for CJWL-FM will expire on 31 August 2005 and the licence for CHPB-FM will expire on 31 August 2009, the current expiry dates. The licences will be subject to the same terms and conditions as those in effect under the current licences.
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Employment equity
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13.
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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 licensee 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 each licence. It is available in alternative format upon request, and may also be examined at the following Internet site: http://www.crtc.gc.ca
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Date Modified: 2003-11-19