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Broadcasting Decision CRTC 2005-36
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Ottawa, 3 February 2005
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1097282 Alberta Ltd. (a corporation controlled by Edward Tardif)
Whitecourt, Alberta
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Application 2004-0472-3
Public Hearing in the National Capital Region
29 November 2004
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English-language FM radio station in Whitecourt
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The Commission approves the application by 1097282 Alberta Ltd. to operate an English-language FM radio programming undertaking at Whitecourt, Alberta.
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The application
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The Commission received an application by 1097282 Alberta Ltd. (a corporation controlled by Edward Tardif) (1097282) for a broadcasting licence to operate an English-language FM radio programming undertaking in Whitecourt, Alberta.
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The proposed station would operate at 105.3 MHz (channel 287C) with an effective radiated power of 42,300 watts.
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The applicant proposed to offer a Rock music format. All of the programming would be local and would include regular weekday newscasts from 6 a.m. to 6 p.m. Weekday noon-hour newscasts would feature information for listeners concerned with the oil/energy and agriculture sectors. The proposed station would promote talented Canadian individual artists and bands via airplay, interviews, promotion and concerts.
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The applicant confirmed that it would participate in the Canadian talent development plan developed by the Canadian Association of Broadcasters for contributions by radio licensees. Under this plan, a radio licensee serving a market the size of Whitecourt would be expected to contribute a minimum of $400 in each broadcast year to eligible third parties for the development of Canadian musical and other artistic talent.
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Interventions
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The Commission received one intervention offering general comments from the Canadian Independent Record Production Association (CIRPA) and one intervention in opposition from 3937844 Canada Inc., a corporation controlled by Newcap Inc. (Newcap), licensee of CJYR Edson. Letters of support were also submitted with the application.
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CIRPA indicated that it supports diversity of ownership in a given market and independent ownership. CIRPA reiterated its ongoing support for diversity of musical formats and expressed its concern with the issue of diversity in playlists, because, while musical formats are given various names, the selections being played are often largely the same. CIRPA also expressed support for applicants that propose to direct Canadian talent development funds to FACTOR, because that funding assists Canadian creators and entrepreneurs in developing new artists and in marketing existing ones.
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The opposing intervention by Newcap indicated that its station CJYR Edson has a very long history of service to the town and people of Whitecourt through its transmitter CFYR-FM Whitecourt, and that it has filed an application with the Commission, requesting an amendment to CJYR's licence, in order to upgrade CFYR-FM Whitecourt from a transmitter to an originating station to serve the same community. Newcap stated that it has continually upgraded its service to Whitecourt and that its proposal to provide local programming to that community is a logical step.
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Newcap expressed the view that the applicant's projected sales revenue is not realistic, and suggested that the proposed station would therefore not be able to provide quality local service. Newcap indicated that the resulting decline in revenues to CJYR would jeopardize its capacity to continue to provide the current level of service, and would ensure that Newcap would not be able to provide expanded service.
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Newcap was of the opinion that the economy of Whitecourt could support only one local radio service. Newcap noted that this application was gazetted without a call in accordance with the guidelines set out in The Issuance of Calls for Radio Applications, Public Notice CRTC 1999-111, 8 July 1999 (Public Notice 1999-111), which stipulates that "if the market has never included a commercial radio service, the public interest would not usually be served by unduly delaying the implementation of such a service."
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While Newcap agreed that there is no existing originating service in Whitecourt, it argued that some local service is already provided in the market, and that it plans to provide further local service. Newcap therefore was of the view that the public interest would be best served by hearing its application concurrently with this one.
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The applicant's replies
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In its reply to CIRPA, the applicant indicated that the promotion of independent new artists is important in developing the next generation of Canada's music stars, and that it is committed to offering airplay to those Canadian artists who receive little play on commercial radio. The applicant also indicated that it fully supports FACTOR's mission.
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In response to the opposing intervention from Newcap, the applicant noted that there is a lack of choice and diversity in the Whitecourt radio market, and that this has led to a lack of interest in radio and advertising on radio.
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With respect to the potential revenue of the proposed station, the applicant indicated that it had evaluated the size of the Whitecourt market, and compared it to markets with independent licensees of commercial radio stations. Monitoring the advertising content of such stations allowed the applicant to conclude that its revenue projections could be met.
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The applicant further stated that, since the proposed station would be locally owned, the Whitecourt area would be assured of quality radio. In response to Newcap's statement that it already provides local programming, the applicant noted that on the night of Alberta's 2004 Municipal Elections, there was no live or delayed mention on CJYR of the results of Whitecourt's municipal election. According to the applicant, this fact strongly supports its efforts to provide Whitecourt and area with a first local radio service.
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The applicant also questioned the timing of Newcap's intervention and its application. In this regard, the applicant indicated that Newcap has submitted numerous applications as part of its Alberta FM Expansion Plan, and for upgrades to their west-central Alberta holdings, but that Newcap only filed their application for Whitecourt following the publication of 1097282 Alberta Ltd.'s proposal.
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The Commission's analysis and determination
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In its evaluation of this application, the Commission has carefully considered the views of the applicant and of the interveners. The Commission acknowledges the comments and views submitted by CIRPA.
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In assessing the intervention submitted by Newcap, the Commission is satisfied that the applicant's revenue projections are reasonable, and reiterates its position with respect to the treatment of applications for new radio stations, as set out in Public Notice 1999-111. In that public notice, the Commission stated that such applications would generally trigger a call for competing applications in the affected market, except in circumstances as described in the notice. One of the circumstances so noted was a proposal to provide the first commercial service in a market. The Commission stated that, if a commercial radio service has never existed in the market, the public interest would not usually be served by unduly delaying the implementation of such a service.
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In light of the above, the Commission has determined that, in these circumstances, a call for competing applications to serve the Whitecourt area is not necessary, and that approval of the first commercial radio station to serve Whitecourt is in the public interest.
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Based on the foregoing, the Commission approves the application by 1097282 Alberta Ltd. (a corporation controlled by Edward Tardif) for a broadcasting licence to operate an English-language FM radio programming undertaking in Whitecourt. The station will operate at 105.3 MHz (channel 287C) with an effective radiated power of 42,300 watts.
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The licence will expire 31 August 2011 and will be subject to the conditions set outin New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999.
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Issuance of the licence
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The Department of Industry (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.
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The Commission reminds the applicant 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.
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Furthermore, the licence for this undertaking will be issued once the applicant 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 3 February 2007. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before that date.
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Employment equity
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In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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Secretary General
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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
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Date Modified: 2005-02-03