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Following a Public Hearing in St. John's, Newfoundland on 16 September 1987, the Commission approves the application for a licence for an English-language FM radio rebroadcasting undertaking at Clarenville, operating on the 100.7 MHz frequency with an effective radiated power of 2,200 watts, to rebroadcast the programs of VOCM-FM St. John's.
The Commission will issue a licence expiring 30 September 1990, subject to the conditions specified in this decision and in the licence to be issued. This term will enable the Commission to consider the renewal of this licence at the same time as that of VOCM-FM St. John's.
Maintaining that the new service would increase the diversity of radio services currently available in the Clarenville area, VOCM Radio Newfoundland Limited (VOCM) stated its commitment to increase the amount of local news of particular interest to its Clarenville audience, through the use of a Clarenville news correspondent, separate weather forecasts and regional road reports, amongst other initiatives.
The Commission further notes VOCM's commitment to provide a local service to Clarenville businesses wishing to advertise on the new rebroadcasting undertaking. To this end, it proposed to offer special advertising rates relative to the size of the Clarenville market, as opposed to the provision of a separate commercial feed. Mr. Joseph Butler, President of VOCM, stated in this respect at the hearing "There will be local community rates ... the rates [we] charge in St. John's aren't the rates that [we] are charging in Clarenville, because it is a smaller market."
The Commission acknowledges the intervention submitted in opposition to this application by CHUM Limited (CHUM), licensee of CJYQ and CKIX-FM St. John's, and of CHYQ Musgravetown, a community located near Clarenville. At the hearing, representatives of CHUM stated that the radio market in Newfoundland, particularly in the small communities, was still quite fragile and that the licensing of a new service in Clarenville would result in audience fragmentation. Such fragmentation would be to the detriment of existing local stations, most of which, CHUM submitted, were operating at deficits.
Having taken into consideration VOCM's response to the CHUM intervention, the Commission is of the view that no significant detrimental economic effect will be felt by local stations as a result of the new radio service in Clarenville.
It is a condition of licence that construction of the station be completed and that it be in operation within twelve months of the date of this decision or such further period as the Commission may, upon receipt of a request for extension before the expiry of said twelve months, deem appropriate under the circumstances.