ARCHIVED -  Letter

VIA EMAIL: kevin.goldstein@bellmedia.ca

Ottawa, 17 July 2012

Kevin Goldstein
Vice President, Regulatory Affairs
BCE Inc.
Floor 19, 160 Elgin Street
Ottawa, ON

Re: Application by BCE Inc. (Bell) on behalf of Astral Media Inc. (Astral), for authority to transfer ownership and control of Astral’s broadcasting undertakings to Bell - Application No: 2012-0516-2

In order to pursue analysis of the above-noted application, please provide the following additional and/or explanatory information. This information should be received at the Commission no later than 20 July 2012.

Canadian Content Development

1. In question 2 of the Commission’s letter dated 22 June 2012, payments were incorrectly identified as payments to École Nationale de l’Humour (the ÉNH) in the 2008-2009 broadcasting year.

When it renewed the licence for CKTF-FM Gatineau in Broadcasting Decision 2011-725, the Commission stated that Astral Media Radio Inc. was in non-compliance with respect to CCD contributions, given that it made contributions to the ÉNH, which is not an eligible party under the 2006 Commercial Radio Policy. The Commission noted that this was also the case for 23 other stations owned by the licensee. The Commission requested notification if the CCD shortfall for the licensee's 23 other stations was paid before these stations renew their licences.

It appears that the shortfalls identified below remain, as of 31 August 2011. Please comment.

2. Staff notes that, in response to the Commission’s letter dated 22 June 2012, proofs of payment were received for the following initiatives:

Please provide proofs of eligibility demonstrating how the funds were used in accordance with CCD guidelines such as a letter from the entity receiving funding explaining the use of the funds.

3. Staff notes that in the table included with question 3 iii of the Commission’s letter dated 22 June 2012, the total payment to the Société pour l'avancement de la chanson d'expression française (SACEF) was incorrectly reported. Below is the table with the correct total.

Considering CFIX-FM’s claimed payment of $2,507, it appears that an amount of $7,492 remains to be paid. Please comment on this apparent shortfall.

4. The proofs of eligibility, filed in response to the Commission’s letter dated 22 June 2012, for the following initiatives are insufficient to assess the eligibility of the initiatives. Please provide proofs of eligibility for the following claimed expenditures that demonstrate how the funds were used in accordance with CCD guidelines, such as a letter explaining the use of the funds from the entity receiving the contribution.

5. The proof of eligibility, filed in response to the Commission’s letter dated 22 June 2012, for contributions to La Cité Collégiale is insufficient to assess the eligibility of the initiative. Please provide proofs of eligibility demonstrating how the funds were used in accordance with CCD guidelines such as a letter from the organisation explaining the use of the funds received for the following contributions:

6. Staff notes that for the 2008-2009 broadcast year CKTO-FM paid $400 in CCD and has an apparent shortfall of $1,007. Please explain this apparent shortfall.

7. Commission staff notes that CHBD-FM is subject to the following condition of licence, set out in Broadcasting Decision 2007-156:
3. Upon commencement of operations, the licensee shall make direct expenditures of at least $100,000 in each broadcast year to the development of Canadian content to eligible initiatives as defined in Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006.

Additional supporting documentation is required to demonstrate the eligibility of the funds disbursed to the following initiatives for the 2008-2009, 2009-2010 and 2010-2011 broadcast years.
• First Nations University of Canada;
• Saskatchewan Recording Industry Association (SRIA) – funds used for operational support and annual aboriginal initiatives support;
• NAIT Department of Advancement.

Staff notes that the proof of eligibility for the contribution to the SRIA filed in response to the Commission’s letter dated 22 June 2012 is insufficient to assess the eligibility of the initiative. Please provide proofs of eligibility for the aforementioned initiatives demonstrating how the funds were used in accordance with CCD guidelines such as a letter from the organisation.

8. Commission staff notes Astral’s submission that it paid CFMG-FM’s CCD contributions for the 2009-2010 broadcasting year in full, even though it incorrectly reported previous year revenues in the CCD form 1161.

Please provide proofs of payment and proofs of eligibility for all of CFMG-FM’s 2009-2010 broadcasting year CCD contributions.

Tangible Benefits

9. Please provide proofs of payment and proofs of eligibility for each of the following expenditures for benefits resulting from CRTC Broadcasting Decision 2007-359:

10. In response to the Commission’s letter dated 26 June 2012, the Commission received proofs of payment for the tangible benefits flowing from the transfer ownership and effective control of MusiquePlus inc. to Astral Media inc. (Application 2007-0445-4). However, staff could not clearly identify the tangible benefit contributions as they were grouped with other items into larger payments (ranging from $89,000 to $272,000) whereas the tangible benefits schedule provided suggests that a payment of $40,476 was sent monthly to the Harold Greenberg Fund.

Please provide either a breakdown of the payments sent to the Harold Greenberg fund in order to reconcile the payments with the tangible benefits expenditures or a letter from the Harold Greenberg fund stating the amount of funds received as tangible benefits related to application 2007-0445-4.

You are reminded that applicants are required to file their applications, related documents and related correspondence electronically using Access Key found under Forms and Access Key, at the following link https://crtc.gc.ca/eng/forms/form_index.htm.

Should you require further information concerning this application, please do not hesitate to contact me by telephone at 819-953-6893 or by fax at 819-994-0218.

Yours truly,

Rachel Marleau
Manager, Regulatory Corporate Analysis
Ownership & Acquisitions
Policy Development & Research Sector
CRTC
Cc: Claude Laflamme

Date modified:

2012-07-17