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ARCHIVED - Broadcasting - Commission letter - Friends of Canadian Broadcasting and The Honourable Diane Marleau

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  Ottawa, 24 July 2003
Mr. Ian Morrison
FRIENDS of Canadian Broadcasting
131 Bloor Street West,
Suite 200/238
Toronto, Ontario
M5S 1R8 		The Honourable Diane Marleau, P.C., M.P.
36 Elgin Street
Sudbury, Ontario
P3C 5B4

Re: Client Services Reference Numbers: 79605 & 90673

The Commission has completed its examination of the additional information you have provided as well as the provisions of the Sales Agreement between Rogers Broadcasting Limited ("Rogers") and Newcap Inc. ("Newcap") in Sudbury, Ontario.

Based on its examination, the Commission finds that there is insufficient evidence, at this time, to support the existence of a Local Management Agreement between Rogers and Newcap in Sudbury, Ontario.

Nevertheless, the Commission remains concerned about the full implication of the Sales Agreement that Rogers and Newcap have entered into. The following elements raise concerns:

  • The shared functions including the Program Coordinator and the Chief of Engineering;
  • The revenue sharing based on pre-determined percentages;
  • Rogers ability to determine the rate card value for the advertising airtime sales for the Rogers and Newcap stations;
  • The extent of the termination rights; and,
  • The cancellation of the BBM subscription.

Therefore, the Commission intends to further examine this situation with the respective broadcasters at their renewal of their licences. The licences of the stations involved will expire in August 2004 and August 2005. The Commission will thus have the opportunity to examine the business arrangement as soon as in 2004.

Please note that all correspondence related to this issue is made available for public examination at the Commission's central office, and is available on demand.

Yours sincerely,

Diane Rhéaume
Secretary General

c.c. Rogers Broadcasting Limited
Newcap Inc.

Date Modified: 2003-07-24

Date modified: