ARCHIVED - Procedural letter
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Ottawa, 29 August 2011
Mr. Hoa Bui
Native Communications Inc.
1507 Inkster Boulevard
Winnipeg, Manitoba
R2X 1R2
By e-mail: hbui@ncifm.com
Re: Application 2011-1168-2 CICY-FM Selkirk, Manitoba
Dear Mr. Bui,
This is in reference to the above-noted application for a technical amendment (2011-1168-2) to the broadcasting licence for the analog radio programming undertaking CICY-FM Selkirk, Manitoba.
Severability
1. In your application, you make reference to an application by Astral Media Radio G.P. (Astral) to amend the technical parameters of its radio programming undertaking CFQX-FM. Please indicate whether or not the above noted applications are severable. In other words, are you interested in pursuing your application if the application by Astral is denied? (i.e. would you pursue the technical amendment if Astral’s technical amendment is denied, and vice-versa?).
Respondents
2. 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.
With regards to this application, Commission staff notes that you have not served any respondents, as indicated in your response to question 8 of your application.
As noted in section 6.1(a) of your application, you state that you do not view yourselves as "competitive with commercial entities".
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 362,936 to 720,284, and in the 5mV/m contour from 759,401 to 787,920. 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 19August 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 19 August 2011.
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.
*Respondent | *Mail or E-mail Address | *Date Served |
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Financial Projections
3. You state in section 6. Financial analysis and considerations of your application that the proposed amendment is necessary for the financial viability of your station and that you wish to ensure that current advertisers who are seeking to reach the Winnipeg population are able to do so. However, you also state that the proposed amendment will not result in any change to existing financial projection.
a) Please elaborate on why the proposed technical amendment of CICY-FM, that would allow the station to provide its advertisers with better coverage of Winnipeg, would have no impact on existing financial projections of the station under the current technical parameters. Furthermore, please elaborate on why you do not anticipate any incremental revenues as a result of the significant increase in population within the station’s primary contour.
If incremental revenues are anticipated, please provide three years of financial projections (revenues and expenses), with and without approval of the proposed amendment using the following table:
| YEAR 1 | YEAR 2 | YEAR 3 | Total |
REVENUE (after agency commissions) ($000) | ||||
*National |
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*Local |
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*Other (Specify) |
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TOTAL REVENUE |
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OPERATING EXPENSES ($000) | ||||
*Programming |
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*Canadian Content Development |
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* Technical |
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* Sales, Advertising and Promotion |
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*Administration and General |
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*TOTAL OPERATING EXPENSES |
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NON-OPERATING EXPENSES ($000) | ||||
*Depreciation |
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PROFIT BEFORE INTEREST AND TAXES |
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*Interest |
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Other (specify) |
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TOTAL EXPENSES |
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b) In the case that you anticipate an impact on existing financial projections of the station, please provide additional analysis to determine whether the proposed amendment could have a financial impact on other stations operating in Winnipeg and the surrounding area.
Non-Compliance
4. The Commission has audited the annual returns for Native Communications Inc. (CICY-FM). The Commission records indicate that the licensee filed one annual return encompassing the revenues and expenses for three of its stations (CINC-FM Thompson, CICY-FM Selkirk and CIUR-FM Winnipeg) and their rebroadcasting transmitters for the 2007, 2008, 2009 and 2010 broadcast years. Section 9(4) of the Radio Regulations, 1986 (the Regulations) states that a licensee shall provide the Commission with a response to any inquiry regarding the licensee’s programming, ownership or any other matter within the Commission’s jurisdiction that relates to the licensee’s undertaking. Furthermore, section 9(2) of the Regulations indicates that an annual return must be filed for each station. In addition, the licensee filed all of the aforementioned returns for the 1 April to 31 March period rather than the required 1 September to 31 August period (the broadcast year).
In light of the above, it would appear that Native Communications Inc. (CICY-FM) may have failed to comply with section 9(2) of 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.
D. Please indicate when you expect to file the above-mentioned annual returns for CICY-FM Selkirk with the Commission.
Considering the above request, the timetable for the proceeding is changed as follows:
Deadline
(Interventions / Comments/ Answers)
Extended to 3 October 2011
The information requested herein should be received by the Commission no later than 2 September 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) 997-9350 or by fax at 819-994-0218.
Yours sincerely,
Valentina Lavigne
CRTC Radio Analyst
Broadcasting - Radio
Broadcasting and Telecom Information Bulletin CRTC 2010-959
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