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ARCHIVED - Broadcasting Decision CRTC 2004-147

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Broadcasting Decision CRTC 2004-147

  Ottawa, 16 April 2004
  Jon Pole & Andrew Dickson, on behalf of a corporation to be incorporated
Renfrew, Ontario
  Application 2003-0476-7
Public Hearing at Québec, Quebec
16 February 2004
 

English-language FM radio station at Renfrew

  The Commission approves the application by Jon Pole & Andrew Dickson, on behalf of a corporation to be incorporated, for a broadcasting licence to carry on a new English-language FM radio programming undertaking at Renfrew.
 

The application

1.

The Commission received an application by Jon Pole & Andrew Dickson, on behalf of a corporation to be incorporated (the applicant) for a broadcasting licence to carry on a new English-language FM radio programming undertaking at Renfrew, Ontario. The applicant proposed to operate at 96.1 MHz (channel 241A) with an effective radiated power of 1,660 watts. The station would be deemed to serve a single-station market, as defined in Local programming policy for FM radio - definition of a single-station market, Public Notice 1993-121, 17 August 1993.

2.

The applicant proposed to offer an adult-contemporary/middle of the road music format. Programming would include local news, weather, traffic and sports. The station would also provide community announcements and coverage of community events, such as activities involving area schools, local government and charities. Local talent would be promoted on the program The Big Valley Show.

3.

The applicant advised that it will not participate in the Canadian Association of Broadcasters' (CAB) Canadian talent development (CTD) funding plan. Instead, it proposed to contribute $1,000 per year in eligible direct cost expenditures to the development of Canadian talent. Of that amount, $500 would be contributed annually to the Renfrew Fair and the remaining $500 would be contributed to Valleyfest (formerly known as the Lumber Baron Festival). The applicant agreed to accept a condition of licence requiring adherence to this commitment.

4.

The applicant proposed to broadcast a minimum of 38% Canadian content of category 2 music during the broadcast week, as well as during the period between 6:00 a.m. and 6:00 p.m., Monday to Friday.
 

Interventions

5.

The Commission received 37 interventions with respect to this application, 32 of which expressed support. One comment was submitted by the Canadian Broadcasting Corporation (CBC), while opposing interventions were filed by Aboriginal Voices Radio Inc. (AVR), La Radio du Pontiac inc. (Radio Pontiac), V.R. Garbutt, on behalf of Valley Heritage Radio Project (Valley Heritage), and by Renfrew resident Barry Martin. The CBC's comment and the four opposing interventions are discussed below.
 

Canadian Broadcasting Corporation

6.

The CBC did not oppose the application, but commented on a suggestion put forward by the applicant concerning the CBC's station CBCN-FM North Bay. The applicant had suggested that the technical status of CBCN-FM be downgraded from Class C to Class C1. In its comment, the CBC emphasized that it preferred the current status of CBCN-FM to remain unchanged, thus allowing the CBC to retain for itself the ability to upgrade the station's technical parameters in the future should it choose to do so.

7.

In responding to the CBC's position, the applicant indicated that it continued to view the downgrading of CBCN-FM's technical status as a reasonable means to avoid the possibility for technical interference between CBCN-FM and its proposed Renfrew station. The applicant added that it was nevertheless prepared to accept the potential for interference to the coverage of its proposed Renfrew station should the CBC decide to increase the coverage of CBCN-FM North Bay in the future.
 

Aboriginal Voices Radio Inc.

8.

AVR opposed the applicant's proposed use of the frequency 96.1 MHz. AVR stated that the applicant's proposed technical parameters would create some interference in the vicinity of Renfrew should AVR's Ottawa station, operating on the frequency 95.7 MHz, be upgraded at some time in the future to the maximum parameters for a Class B station.

9.

In reply to AVR's intervention, the applicant acknowledged that its proposal could create a limited degree of interference if AVR was to upgrade the technical parameters of its Ottawa FM station in the future. The applicant noted, however, that the potential zone of interference would be restricted to a small portion of Horton Township, outside of Renfrew, in an area containing a very small Aboriginal population. The applicant further stated that its proposed technical parameters would not affect AVR's service in Ottawa, and noted that the Department of Industry (the Department) has advised that the proposal is technically acceptable.
 
La Radio du Pontiac inc.

10.

Radio Pontiac is the licensee of CHIP-FM, a Type A community radio programming undertaking serving Fort Coulonge, Quebec, a community located along the Ottawa River to the northeast of Renfrew. CHIP-FM offers programming in both English and French. The station plays classic country music during English-language program segments and contemporary French-language music during French-language segments. Radio Pontiac submitted that the proposed FM radio station would operate in a format that was identical to that provided by CHIP-FM. The intervener added that residents of the Pontiac region, Renfrew, Calabogie and Arnprior were major supporters of CHIP-FM.

11.

In reply to the Radio Pontiac intervention, the applicant submitted that the format of its proposed FM station would not be at all similar to that of CHIP-FM, since it will not play any contemporary French music, while classic country music would only be broadcast during The Big Valley Show, when recordings by classic "valley" artists would be broadcast from time to time.
 

Valley Heritage Radio Project

12.

V.R. Garbutt's opposing intervention was filed on behalf of Valley Heritage. Valley Heritage is a prospective applicant for a licence to operate an English-language FM Type B community radio programming undertaking at Renfrew. At the time this intervention was originally filed, the intervener's principal objection was to the fact that the applicant was then proposing use of the same FM frequency that the intervener intended to seek for use in the operation of its own proposed FM station. This objection was essentially rendered moot by the applicant's decision to amend its application by changing the proposed frequency from 98.7 MHz to 96.1 MHz. Nevertheless, the intervener continued to have concerns with respect to other aspects of the applicant's proposal. Specifically, Valley Heritage submitted that the objectives and programming format of the proposed station would not adequately serve the intended audience. According to the intervener, the results of a survey it has conducted demonstrates that local residents have a clear understanding of the type of radio service they would like to have. The intervener added that a small market such as Renfrew might have difficulty sustaining more than one radio service.

13.

In response to this intervention, the applicant indicated that its proposal was based on a model that was both financially feasible and responsive to the needs of the community it would serve. As for the intervener's suggestion that the market might not support two radio stations, the applicant submitted that there are many examples of markets of all sizes across Canada that support both a commercial station and a not-for-profit community station. It argued that not-for-profit community stations have little or no impact on the audiences and revenues of a commercial station. The applicant was of the further view that, given the "specialty" Bluegrass/Fiddle/Ethnic music format that the intervener was contemplating for its own proposed community FM station, there would be only minimal audience overlap between the two stations, allowing them to co-exist with little or no difficulty.
 

Barry Martin

14.

In his intervention, Barry Martin indicated that he did not wish to have what he described as "another 'cool FM' commercial radio station delivering the same music, news, sports and other items that we can already get from Ottawa, Pembroke and elsewhere". The intervener also expressed concern about the length of time taken to process the application by Valley Heritage.

15.

In reply, the applicant indicated that its proposed commercial FM would have a very unique "Valley" sound and that the intervener would "never confuse our proposed FM with any radio station from Ottawa".
 

The Commission's analysis and conclusion

16.

In its evaluation of this application, the Commission has carefully considered the views of the applicant and of the interveners. With regard to the CBC's intervention, the Commission notes that the applicant has accepted that there may be some potential interference to its coverage should the CBC decide to alter the technical parameters of CBCN-FM North Bay.

17.

As for the intervention by AVR, the Commission agrees with the applicant that approval of the technical parameters proposed in the application should not affect the service provided by AVR's Ottawa FM station as now authorized. The Commission also agrees with the applicant that, should AVR amend its technical parameters in the future, the potential zone of interference between the Ottawa signal and that of the applicant's proposed Renfrew station would be quite minimal. The Commission notes in particular that such interference would occur in a small area on the periphery of AVR's 0.5 mV/m secondary service contour should AVR increase its signal to the maximum permissible Class B parameters for its 95.7 MHz frequency. Given these facts, the Commission considers that the applicant's proposal would constitute an efficient use of the spectrum.

18.

In assessing the intervention by V.R. Garbutt on behalf of Valley Heritage, the Commission took into account the fact that the intervener's concerns were addressed primarily to the applicant's initial plans to employ the frequency 98.7 MHz, an issue that was essentially eliminated by the applicant's subsequent decision to apply for the use of a different frequency. Concerning the intervener's own application proposing a new Renfrew radio station, the Commission notes that this application was filed after the Commission had announced receipt of the current application. In the Commission's view, the public interest would not have been served by delaying its consideration of the current application proposing the first radio commercial service in the Renfrew market.

19.

As for this intervener's concern about whether or not the town of Renfrew could support the entry of both a new commercial FM station and a not-for-profit community station, the Commission notes that the population of Renfrew (Census Agglomeration) is about 7,942 (2001 Census). The applicant estimates that retail sales for the town of Renfrew were about $187.5 million in 2003, and that about $5.6 million was spent on advertising in the market in that year. Further, the applicant projects that the proposed station would earn total revenues of $340,000 in year 1, increasing to $633,000 by year 7. The Commission considers that the applicant's business plan for its proposed new station is reasonable and consistent with the size of the Renfrew market. The Commission further notes that the application by V.R. Garbutt, on behalf of a corporation to be incorporated, has been scheduled for consideration at a public hearing in the National Capital Region commencing 7 June 2004 (see Broadcasting Notice of Public Hearing CRTC 2004-3, 7 April 2004).

20.

The Commission has considered the intervention by Barry Martin, and is satisfied by the applicant's reply.

21.

Based on all of the available evidence, the Commission is satisfied that the current applicant has proposed a service that will respond to the needs and interests of listeners in the Renfrew area, that the market can support the operations of this service, and that approval of the application would be in the public interest.

22.

Accordingly, the Commission approves the application by Jon Pole & Andrew Dickson, on behalf of a corporation to be incorporated for a broadcasting licence to carry on an English-language FM radio programming undertaking at Renfrew, Ontario. The station will operate on 96.1 MHz (channel 241A), with an effective radiated power of 1,660 watts.
 

Issuance of the licence

23.

The licence will expire 31 August 2010 and will be subject to the conditions set out in New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999, with the exception of conditions of licence 5 and 9, relating to the CAB's CTD plan and to the solicitation of local advertising. That condition does not apply to stations operating in a single-market. The following condition of licence shall also apply:
 
  • The licensee shall contribute $1,000 per year to eligible third parties for the development of Canadian musical and other artistic talent.

24.

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.

25.

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.

26.

Furthermore, the licence for this undertaking will be issued once the applicant:
 
  •  has satisfied the Commission, with supporting documentation, that an eligible Canadian corporation has been incorporated in accordance with the application in all material respects, and
 
  • has informed the Commission in writing that it is prepared to commence operations.

27.

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 16 April 2006. 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

28.

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
  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: http://www.crtc.gc.ca

Date Modified: 2004-04-16

Date modified: