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ARCHIVED - Broadcasting Decision CRTC 2004-161

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Broadcasting Decision CRTC 2004-161

  Ottawa, 23 April 2004
  Standard Radio Inc.
Summerland, British Columbia
  Application 2003-0952-7
Public Hearing at Halifax, Nova Scotia
1 March 2004
 

CHOR Summerland - Conversion to FM band

  The Commission denies the application by Standard Radio Inc. to convert its radio programming undertaking CHOR Summerland, British Columbia, to the FM band.

1.

The Commission received an application by Standard Radio Inc. (Standard) for a broadcasting licence to operate a new English-language FM radio programming undertaking at Summerland to replace its AM station CHOR. The applicant proposed that the new radio programming undertaking would operate at 94.5 MHz (channel 233B) with an effective radiated power of 5,000 watts. The antenna for the new station would be placed on the same tower as the antenna for CJMG-FM, a station owned by Standard that serves Penticton. The applicant submitted that the proposed FM radio programming undertaking would provide better sound quality and coverage than CHOR.

2.

Standard stated that the new undertaking would offer an adult contemporary music format. The local programming would include news, weather, road conditions, sports and community information.

3.

Standard confirmed that it would participate in the plan developed by the Canadian Association of Broadcasters for contributions by radio licensees to Canadian talent development and make contributions at the same level as was required of CHOR.
 

Interventions

4.

The Commission received 148 interventions in support of the application. The supporting interveners generally considered that the proposed FM undertaking would provide better sound quality and coverage than the existing AM station.

5.

Five parties submitted interventions in opposition to Standard's application.

6.

The Canadian Broadcasting Corporation (CBC) was concerned that the applicant's use of channel 233 would compromise the CBC's ability to use channel 232 in Enderby to provide its English-language Radio Two service. The CBC noted that it had identified channel 232 as a frequency that it planned to use in Enderby in the CBC Long Range Radio Plan.

7.

Great Valleys Radio Ltd. (Great Valleys), the licensee of CIGV-FM Penticton, opposed the application on the grounds that the proposed contours would encompass Penticton and its surrounding area, thereby creating a fourth station in that small market. Great Valleys argued that the application represented a clear threat to the listener base, revenue stream and quality of CIGV-FM, which already competes with two Penticton radio undertakings, CKOR and CJMG-FM, owned by Standard. Great Valleys contended that Standard should replace CHOR with a low-power FM undertaking in Summerland that would serve the Summerland population without a negative impact on broadcasters serving neighbouring markets.

8.

Jim Pattison Industries Ltd. (Pattison), the licensee of CKOV and CKLZ-FM Kelowna, opposed Standard's plan to operate the proposed undertaking with an effective radiated power of 5,000 watts. Pattison contended that operating at such a power would result in the proposed undertaking covering the central and north end of the Okanagan Valley, thereby reaching approximately 30,000 to 35,000 people in Kelowna's Westside area. Pattison argued that Standard's application had a larger goal of creating a regional station rather than a local Summerland service. Pattison was of the view that the Kelowna market is already saturated and over-served by five existing stations and that adding another station would be devastating to the revenues of Pattison's stations.

9.

Silk FM Broadcasting Ltd. (Silk), the licensee of CILK-FM Kelowna, opposed the application for essentially the same reason as Pattison. Silk stated that "the primary technical contours of this FM proposal show excellent coverage of the Westside of Okanagan Lake, in Peachland, Westbank, and Lakeview Heights. Each of these communities is within the Kelowna trading area, within the Regional District of Central Okanagan, and within the primary contours of the five commercial stations licensed for Kelowna. We believe that current radio economics of our home market are not sufficiently strong to absorb the effect of another commercial radio service covering 30,000 of our residents."

10.

Ruth Campbell also opposed the application, stating that "this station in Summerland B.C. is just fine as it is on the AM dial."
 

The applicant's reply

11.

With respect to the CBC's concerns, Standard indicated that its engineers had determined that channel 215 would be available for the CBC to provide Radio Two service at Enderby, as an alternative to channel 232. Standard indicated that it had informed the CBC about the availability of channel 215, and that the CBC had indicated that it would be willing to change its Long Range Radio Plan should the Commission approve Standard's application.

12.

In its reply to the interventions from Great Valleys, Pattison and Silk, Standard reiterated that its proposal was filed in order to improve its current radio service in the Summerland market only. Standard also indicated that the relocation of the antenna of its Summerland station to the current antenna site of its Penticton station "represents the most cost effective method of providing high quality services to each of the communities of Summerland and Penticton." Standard indicated that, if its application were approved, it would commit to not actively solicit advertising in Penticton and in Kelowna.
 

The Commission's analysis and determination

13.

The Commission considers that Standard's proposal raises issues with respect to the significant increase in the coverage area of the proposed FM station in comparison with the coverage area of CHOR, and the potential impact of this wider service on existing commercial radio stations owned by Standard's competitors that serve Penticton and Kelowna.

14.

CHOR is the only local radio station currently serving Summerland and its immediate surrounding area. The existing 15 mV/m contour of CHOR serves an estimated population of 11,156. The 3 mV/m contour of the proposed FM station would encompass a much larger area than the market currently served by CHOR.The 3 mV/m contour of the new FM station would reach Penticton and the Westside of the neighbouring Kelowna market, including Peachland. According to the applicant's own estimates, the population served by the proposed FM station in comparison to that served by CHOR would increase from the current 11,156 to 65,744, a growth of about 489%, or 54,588 people.

15.

Standard currently operates five of the six radio stations serving the Okanagan-Similkameen area. These stations are CJMG-FM Penticton, CKOR Penticton, CJOR Osoyoos, CHOR Summerland and CIOR Princeton. The only local competitor to Standard in the area is Great Valleys, which operates CIGV-FM Penticton. Approval of the application would result in Standard operating three stations with excellent coverage of the Penticton market. The Commission is concerned that this would increase the competitive imbalance in the marketplace and could have a negative financial impact on CIGV-FM.

16.

Five commercial radio stations currently serve the Kelowna market. Standard owns CHSU-FM and CKBL, Pattison owns CKLZ-FM and CKOV, and Silk owns CILK-FM. Approval of the current application would provide Standard with a third signal in Kelowna. The Commission is concerned that this could have a negative financial impact on the stations owned by Pattison and Silk.
17. In light of these concerns, the Commission considers that an FM station designed to replace CHOR should have a coverage area that more closely duplicates that of CHOR's current signal. The Commission, therefore, denies Standard Radio Inc.'s application.
  Secretary General
  This decision is available in alternative format upon request, and may also be examined at the following Internet site: http://www.crtc.gc.ca

Date Modified: 2004-04-23

Date modified: