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ARCHIVED - Broadcasting Decision CRTC 2004-65

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Broadcasting Decision CRTC 2004-65

  Ottawa, 30 January 2004
  Craig Media Inc. (formerly Toronto One Inc.)
Toronto and Hamilton, Ontario
  Application 2003-0675-5
Public Hearing in the National Capital Region
17 November 2003
 

CKXT-TV Toronto - transitional digital television licence

  In this decision, the Commission approves the application by Craig Media Inc. for a licence to operate a transitional digital television undertaking at Toronto, with a second transmitter at Hamilton, in association with CKXT-TV Toronto.
 

The application

1.

The Commission received an application by Craig Media Inc. (formerly Toronto One Inc.) (Craig) for a broadcasting licence to operate a transitional digital television undertaking at Toronto, with a second transmitter at Hamilton, Ontario, in association with CKXT-TV Toronto. Craig proposed that the station simulcast the current analog programming service of CKXT-TV Toronto, with the exception of up to 14 hours per week of programming that would not be duplicated on the analog service. The digital undertaking at Toronto would operate on channel 66C with an effective radiated power (ERP) of 3,000 watts, and the transmitter in Hamilton would operate on channel 15C with an average ERP of 4,100 watts.
 

Interventions

2.

The Commission received one intervention in opposition from TVN Television Niagara (TVN) and one intervention offering general comments from the Canadian Cable Television Association (CCTA). TVN opposed the use of channel 15C for the transmitter in Hamilton. The intervener stated that it planned to apply for the use of that channel for an analog television station to serve St. Catharines and the Niagara Peninsula. TVN suggested that either channel 22C or channel 48B would serve Craig's purposes as well or better than channel 15C for a transmitter in Hamilton.

3.

In its intervention, the CCTA recommended that the Commission establish clear minimums for the broadcast of enhanced or high definition (HD) programming and impose these minimums as conditions of licence.
 
The applicant's replies

4.

In reply to TVN's intervention, Craig indicated that its application was consistent with the policy objectives and principles in the Commission's policy framework set out in A licensing policy to oversee the transition from analog to digital, over-the-air television broadcasting, Broadcasting Public Notice CRTC 2002-31, 12 June 2002 (Public Notice 2002-31), and with the Department of Industry's (the Department's) DTV Transition Allotment Plan for digital television. The applicant also disagreed with TVN's suggestion that Craig could instead use channel 22C or channel 48B. Craig indicated that neither of those channels would be suitable, and in the case of channel 48B, would result in a channel of a lower class than would be the result of using channel 15C.

5.

Craig disagreed with the recommendations set out in the CCTA's intervention. Craig expressed the view that its application was consistent with the policy objectives and principles set out in Public Notice 2002-31. Craig also stated that, due to the difficulty of obtaining HD programming, it would make little sense to impose a different set of regulatory obligations on the current applicants in this proceeding.
 

The Commission's policy

6.

The Commission set out its policy framework for the transition from analog to digital television in Public Notice 2002-31. Some of the key elements of that policy framework are the following:
 
  • Digital technology will be treated as a replacement for analog technology.
 
  • A voluntary, market-driven transition model, without mandated deadlines, is the most appropriate approach in Canada.
 
  • A new transitional digital television licence will be issued for each digital television undertaking, subject to the Commission's approval of an application. Licensees who wish to use digital television facilities to provide programming consisting essentially of a simulcast of their existing analog services will qualify for licensing, subject to specific terms and conditions. The duration of a licence term will be considered as part of the application process.
 
  • The Commission will give fast track consideration to applications by existing over-the-air broadcasters that accord with the Commission's transitional digital policy as set out in Public Notice 2002-31, and are based on the Department's DTV Transition Allotment Plan.
 
  • Existing broadcasters are encouraged to apply early for new transitional digital television licences and to implement the digital transmitters necessary to make the transition.
 
  • The Commission's existing policies and regulations, as well as the conditions of licence currently applicable to a broadcaster in respect of its analog television service, will also apply to any transitional digital programming service the broadcaster may be licensed to provide. These include requirements for the provision of 60% Canadian content during the broadcast year and 50% during the evening broadcast period, and for the exhibition of a minimum of 8 hours per week of priority programming where required by condition of licence.
 

The Commission's analysis and determination

7.

Based on its examination of this application, the Commission is satisfied that it is in conformity with all applicable terms and conditions announced in Public Notice 2002-31, and in The regulatory framework for the distribution of digital television signals, Broadcasting Public Notice CRTC 2003-61, 11 November 2003.

8.

With respect to concerns expressed in the TVN intervention, the Commission agrees with the applicant's position, and notes that Craig's use of channel 15C for the transmitter at Hamilton is consistent with the Department's DTV Transition Allotment Plan. As noted above, in Public Notice 2002-31, the Commission stated that it would give fast track consideration to applications by existing broadcasters that are based on the Department's DTV Transition Allotment Plan.

9.

Accordingly, the Commission approves the application by Craig Media Inc. for a broadcasting licence to operate a digital television undertaking in Toronto, with a transmitter at Hamilton, in association with CKXT-TV Toronto.

10.

With regard to the CCTA's suggestion that the Commission establish clear minimums for the broadcast of enhanced or HD programming and impose those minimums as conditions of licence, the Commission notes that it has already established a process to examine these questions and established a policy, as outlined in Public Notice 2002-31.
 

Programming

 

Canadian content obligations and the 14-hour program allowance

11.

The applicant made a commitment to simulcast the current programming service of CKXT-TV with the exception of up to 14 hours per week of supplementary programming that would not be duplicated on the analog service. The applicant further committed to ensure that a minimum of 50% of the unduplicated, supplementary programming broadcast by the undertaking is Canadian. Consistent with the applicant's commitments, the Commission has imposed conditions of licence, set out in the appendix to this decision. The Commission further requires, by condition of licence, that all unduplicated, supplementary programming broadcast on the undertaking is broadcast in a wide screen HD format.
 

Simulcast of high definition and wide screen programming

12.

As part of this proceeding, the Commission asked the applicant to comment on the possible imposition of conditions of licence reflecting, among other things, the two key principles set out in Public Notice 2002-31 relating to the simulcast of HD and wide screen programming. Specifically, the Commission asked whether Craig would adhere to conditions of licence requiring that:
 
  • all simulcast programming on the undertaking produced in the wide screen format (16:9 aspect ratio) be broadcast in that format; and,
 
  • all simulcast programming on the undertaking aired during the evening broadcast period produced in HD be broadcast in HD.

13.

Craig responded that it would accept these terms as conditions of licence, provided that the words "if available" were added.
 

Data transmission

14.

In Public Notice 2002-31, the Commission expressed the view that high definition television (HDTV) should be used to promote the development of new Canadian programming of high quality, and to make this available to viewers in a picture format that is superior to the current analog National Television Standards Committee (NTSC) format. To that end, the Commission emphasized that broadcasters should ensure that the HD programming they purchase or produce is transmitted to viewers without loss of signal quality. Consistent with that aim, the Commission requires, by condition of licence, that the licensee ensure that the transmission of data does not affect the quality or quantity of HD programming.
 

Technical considerations

15.

The undertaking at Toronto will operate on channel 66C with an ERP of 3,000 watts, and the transmitter at Hamilton will operate on channel 15C with an ERP of 4,100 watts. The Commission is satisfied that these technical parameters will provide effective coverage to the Toronto and Hamilton areas within the constraints of the Department's DTV Transition Allotment Plan.
 

Issuance of the licence

16.

The Commission will issue a transitional digital television licence to Craig Media Inc. subject to the conditions set out in the appendix to this decision. The licence will expire on 31 August 2008, coincident with the expiry of the licence for CKXT-TV Toronto.

17.

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.

18.

Furthermore, the licence for this undertaking will be issued once the licensee has informed the Commission in writing that it is prepared to commence operations. 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 30 January 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

19.

Because this licensee is subject to the Employment Equity Act and files reports concerning employment equity with Human Resources Development Canada, its employment equity practices are not examined by the Commission.
  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: www.crtc.gc.ca 
 

Appendix to Broadcasting Decision CRTC 2004-65

 

Conditions of licence

 

1. In addition to the conditions set out below, the licence is subject to the terms and conditions applicable to the analog television station CKXT-TV Toronto, as set out in New television station for Toronto/Hamilton, Broadcasting Decision CRTC 2002-81, 8 April 2002.

 

2. The licensee shall ensure that all programming broadcast on the undertaking is a simulcast of the programming broadcast on CKXT-TV, with the exception of up to 14 hours per week of unduplicated, supplementary programming.

 

3. The licensee shall ensure that at least 50% of the unduplicated, supplementary programming broadcast on the undertaking is Canadian.

 

4. The licensee shall ensure that all unduplicated, supplementary programming broadcast on the undertaking is broadcast in a wide screen (16:9 aspect ratio), high definition format.

 

5. The licensee shall ensure that all programs that are simulcast on the undertaking, and that are available to the licensee in a wide screen (16:9 aspect ratio) format, are also broadcast in that format.

 

6. The licensee shall ensure that all programs that are simulcast on the undertaking during the evening broadcast period, and that are available to the licensee in high definition, are also broadcast in high definition.

 

7. The licensee shall ensure that the transmission of data does not affect the quality or quantity of high definition programming.

Date Modified: 2004-01-30

Date modified: