ARCHIVED - Procedural letter

Ottawa, 4 August 2011

Mr. Sukdev S. Dhillon
902890 Alberta Ltd.
5222 50th Avenue
Wetaskiwin, AB
T9A 0S8

By e-mail: ssdhillon@cihsfm.net

Re: 2011-1079-1 & 2011-1080-9, CIHS-FM Wetaskiwin, Alberta

Dear Mr. Dhillon,

This is in reference to the above noted applications for a technical amendment (2011-1079-1), and for an amendment to a condition of licence (2011-1080-9), to the broadcasting licence for the analog radio programming undertaking CIHS-FM Wetaskiwin.

Severability

1. Please indicate whether or not the above noted applications are severable. In other words, are you interested in pursuing both applications if one is denied? (I.e. would you pursue the condition of licence amendment if the technical amendment is denied, and vice-versa?).

Application 2011-1079-1 (Technical Amendment)

2. Respondents - Section 22 of the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure provides that an applicant must serve its application on a respondent defined as a person who is “adverse in interest.” The guidelines on the Rules of procedure include a chart of persons generally considered to be respondents (paragraph 61). The list is not exhaustive since parties that can be considered respondents depend on the specific facts of the application.

We note those you have served, as listed in your response to question 8 of your application. However, your list of respondents does not include other incumbent / existing radio services that could also be “adverse in interest.”

As noted in section 6.1(a) of your application, you state that there are currently 29 Edmonton radio stations whose signal reaches your primary broadcast area. Additionally, you state that Broadcast Decision CRTC # 2004-550 identifies the Wetaskiwin market as being included in the Edmonton central market area (CMA) by the Bureau of Broadcast Measurement (BBM)

Furthermore, as noted in section 7.2 of your application, you have identified that the net impact of this frequency change proposal will result in the station’s population coverage increasing in the 3mV/m contour from 16,553 to 23,040, and in the 5mV/m contour from 38,078 to 163,044. Please note, from an economic perspective, the other incumbent radio services that service those in your proposed parameters could also be “adverse in interest.”

a. In light of the above facts related to the application, you are therefore required to serve the application on the other incumbent/existing that service those in your proposed parameters by 15 August 2011. Note that a document is not served until it is received by the intended recipient. Therefore, if you are serving a person by mail, you must send it in time for it to be delivered on or before 15 August 2011.

b. Furthermore, as per section 8 of the application form, Respondents, please update the chart below with the required information as stated in the Rules of Practice and Procedure.

3. Financial Projections - In section 6.1(c) of your application, you indicated projected total 3 year revenues of $1,142,000 and projected total 3 year operating expenses of $558,000, but indicated a projected total 3 year Profit Before Interest and Taxes (PBIT) loss of -$583,500. PBIT should be calculated as revenue minus expenses and minus depreciation. Given your indicated revenues, expenses and depreciation your PBIT calculation should be positive.  Additionally, depreciation does not seem to be accounted in the calculation of your projected PBIT.

4. Please resubmit section 6.1(c) of the form including 3 years of financial projections (revenues and expenses) using the table below:

a. With approval of both your proposed amendments

b. Without approval of the proposed amendments.

If this application is severable from your application for an amendment to your conditions of license, please additionally provide projected financial summaries (using the table below)

c. With approval of your technical amendment and without approval of the amendment to your conditions of licence.

Application 2011-1080-9 (Conditions of Licence)

5. Respondents - Section 22 of the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure provides that an applicant must serve its application on a respondent defined as a person who is “adverse in interest.” The guidelines on the Rules of procedure include a chart of persons generally considered to be respondents (paragraph 61). The list is not exhaustive since parties that can be considered respondents depend on the specific facts of the application.

In regards to this application, Commission staff notes that you have not served any respondents.

As noted in section 4(a) of your application, you state that there are currently 29 Edmonton radio stations whose signal reaches your primary broadcast area. Additionally, you state that Broadcast Decision CRTC # 2004-550 identifies the Wetaskiwin market as being included in the Edmonton central market area (CMA) by the Bureau of Broadcast Measurement (BBM)

Furthermore, as noted  in section 4 of your application, you indicate that the proposed amendment is necessary for the financial viability of your station. Please note, from an economic perspective, the other incumbent radio services that service those in your current and/or proposed parameters could also be “adverse in interest.”

a. In the case that the above noted applications are servable, and in light of the above facts related to the application, you are therefore required to serve the application on the other incumbent/existing that provide service within your current contours by 15 August 2011. Note that a document is not served until it is received by the intended recipient. Therefore, if you are serving a person by mail, you must send it in time for it to be delivered on or before 15 August 2011

b. In the case that your applications are not severable, and in light of the above facts related to the application, you are therefore required to serve the application on the other incumbent/existing that service those in your proposed parameters, as noted in application 2011-1079-1 by 15 August 2011. Note that a document is not served until it is received by the intended recipient. Therefore, if you are serving a person by mail, you must send it in time for it to be delivered on or before 15 August 2011.

c. Furthermore, as per section 5 of the application form, Respondents, please update the chart below with the required information as stated in the Rules of Practice and Procedure.

6. Financial Projections - In section 4 of your application, you indicated that you consider the proposed amendment necessary for the financial viability of your station.

Please complete the table below including 3 years of financial projections (revenues and expenses):

a. With approval of both your proposed amendments

b. Without approval of the proposed amendments

If this application is severable from your application for a technical amendment, please additionally provide projected financial summaries (using the table below)

c. With approval of the amendment to your conditions of license and without approval your technical amendment.

Non-Compliance

7. The Commission has audited the annual returns for 902890 Alberta Ltd (CIHS-FM). The Commission records reflect the following:

• 2007 annual return filed late, Jan. 28, 2008 (due date Nov. 30, 2007)*
• 2008 annual return filed late, Dec. 11, 2008 (due date Nov. 30, 2008)*
• 2009 annual return filed late, Dec. 15, 2009 (due date Nov. 30, 2009)*
• 2010 annual return filed late, May 13, 2011 (due date Dec. 15, 2010)*

* Note – Ten (10) day grace period given for annual returns filed by mail to account for mailing time.

It would appear that 902890 Alberta Ltd (CIHS-FM) may have failed to comply with section 9(2) of the Radio Regulations, 1986 (the Regulations), relating to the submission of its annual returns for the 2007, 2008, 2009, and 2010 broadcast years.

a. Please explain, based on the foregoing, the circumstances of this apparent non-compliance.

b. What measures have been put in place to ensure future compliance at all times?

c. Please provide your plans so as to ensure compliance with regards to the submission of your annual reports.

Revised Timeline

Considering the above requests, the timetable for the proceeding is changed as follows:

The information requested herein should be received by the Commission no later than 15 August 2011, failing which, your application may be returned to be completed and resubmitted with the Commission should you wish to pursue this proposal.

A copy of this letter and all related correspondence will be added to the public record of the proceeding.

You are reminded that applicants are required to file their applications, related documents and related correspondence electronically using Access Key. Should you need further information concerning your application, please do not hesitate to contact me by telephone at (819) 953-5130 or by fax at 819-994-0218.

Yours sincerely,

Sherwin Pagtakhan
CRTC Radio Analyst
Broadcasting - Radio

Broadcasting and Telecom Information Bulletin CRTC 2010-959

Date modified:

2011-08-10