ARCHIVED - Broadcasting Decision CRTC 2004-148
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Broadcasting Decision CRTC 2004-148 |
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| Ottawa, 16 April 2004 | ||
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Dyracom Communications Inc. Estevan, Saskatchewan |
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Application 2003-1073-0 Public Hearing at Québec, Quebec 16 February 2004 |
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English-language low-power FM radio station in Estevan |
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| In this decision, the Commission denies the application by Dyracom Communications Inc. for a broadcasting licence to carry on a low-power FM radio station at Estevan. | ||
The application |
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1. |
The Commission received an application by Dyracom Communications Inc. (Dyracom) for a broadcasting licence to carry on a low-power English-language FM radio programming undertaking in Estevan at 106.3 MHz (channel 292LP) with an effective radiated power of 50 watts. The applicant proposed to offer a service that would operate in a Hard Rock music format, with an emphasis on the presentation of local musical talent. | |
Interventions |
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2. |
The Commission received an opposing intervention from the Canadian Association of Broadcasters (the CAB), a national organization representing the majority of Canada's private broadcasters. Golden West Broadcasting Ltd. (Golden West) and Rawlco Radio Ltd. (Rawlco) also filed opposing interventions. Golden West is currently the licensee of Estevan's only radio stations, CJSL and CHSN-FM. Rawlco is the licensee or holds indirect control of 12 radio stations serving medium and small sized markets in Saskatchewan. A subsidiary of Rawlco was recently authorized to establish a new FM station in Edmonton. | |
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3. |
In its intervention, the CAB made reference to the Commission's licensing policy for low-power radio undertakings, as set out in Policy framework for community-based media, Broadcasting Public Notice CRTC 2002-61, 10 October 2002 (Public Notice 2002-61) and, in particular, to the Commission's statement that it would expect applicants for low-power radio services: | |
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4. |
The CAB contended that Dyracom's application met none of the above objectives identified in the licensing policy for low-power radio undertakings. It was the CAB's position that low-power radio undertakings should provide niche-focused services, such as tourist and weather information, or ethnic and other services that would be of direct and local relevance, offer true diversity, and complement rather than compete with existing radio services. | |
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5. |
Further, in the CAB's view, the Commission's licensing policy for low-power radio should not serve as a "back door" entry into the system "for applicants wishing to operate conventional radio undertakings, but not willing to shoulder the regulatory obligations that accompany such a licence." The CAB stated in this regard that, although Dyracom's proposed Estevan radio station would be operated at low power, the signal would nonetheless deliver the applicant's proposed service to more than 70% of those who would be reached by the signal of a full-power Class A station. It further noted Dyracom's statement that it intended to provide "a full service FM radio station for our local audience". The CAB added that the station's Hard Rock music format is one that is traditionally provided by mainstream conventional radio stations, and advised that, in reviewing the Dyracom application, the Commission should not underestimate the significant impact that the introduction of new, ostensibly "non-competitive" services can have on existing licensed radio undertakings, particularly in smaller markets where licensed local services are under constant pressure from all media sources. | |
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The interventions by Golden West and Rawlco reiterated the concerns expressed and the arguments presented by the CAB. | |
The applicant's response |
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In its replies to the three opposing interventions, Dyracom argued that its proposed low-power station would indeed serve the objectives expressed in Public Notice 2002-61. More specifically, Dyracom maintained that the "niche" programming to be provided by its proposed low power FM "community-oriented" station would offer diversity and complement the services provided by existing stations in the market. In addition, Dyracom contended that it had provided evidence demonstrating that there was a demand in the community for its proposed radio service. | |
The Commission's determination |
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Based on the commitments made by Dyracom in its application, the Commission is satisfied that Dyracom would be prepared to assume, and capable of meeting, all appropriate regulatory obligations. The Commission also considers that the proposed service would add diversity to the market and complement the services provided by the two existing radio stations in Estevan operated by Golden West. The Commission notes, however, that one of these existing stations, CHSN-FM, has been in operation for less than three years. Dyracom projected that its proposed station would earn advertising revenues of $417,000 in the first year of operation, increasing to $626,000 in the seventh year. Taking into account the size of the Estevan market, the Commission concludes that, were the advertising revenues earned by the proposed station to approach the levels set out in the applicant's projections, the proposed low-power station would have an undue negative commercial impact upon the operations of the incumbent broadcaster and its abilities to discharge its programming obligations and commitments. For this reason, the Commission denies the application by Dyracom to operate a low-power FM radio station in Estevan | |
| Secretary General | ||
| This document is available in alternative format upon request and may also be examined at the following Internet site: www.crtc.gc.ca | ||
Date Modified: 2004-04-16
- Date modified: