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ARCHIVED -  Broadcasting Decision CRTC 2004-55

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Broadcasting Decision CRTC 2004-55

  Ottawa, 30 January 2004
  3937844 Canada Inc., a subsidiary of Newcap Inc.
Wainwright, Alberta
  Application 2003-0782-8
Public Hearing in the National Capital Region
17 November 2003
 

FM radio station in Wainwright

  In this decision, the Commission approves the application by 3937844 Canada Inc., a subsidiary of Newcap Inc., to carry on a new English-language FM radio station in Wainwright.
 

The application

1.

The Commission received an application by 3937844 Canada Inc., a subsidiary of Newcap Inc., for a broadcasting licence to operate an English-language FM radio programming undertaking in Wainwright. The station would operate at 93.7 MHz (channel 229C1) with an effective radiated power (ERP) of 100,000 watts.

2.

The applicant currently operates the AM radio programming undertaking CKKY Wainwright. The proposed new FM station would offer an Adult Contemporary music format intended to complement the existing country music programming of CKKY.

3.

All of the station's programming would be locally produced, with the exception of up to 8 hours per week of syndicated programming. The spoken word programming would consist of local news, sports and weather scheduled on a regular basis throughout the broadcast week. A daily entertainment guide would focus on local performers, while other programming would provide information about community events and matters pertinent to local listeners.

4.

Under the plan developed by the Canadian Association of Broadcasters (CAB) for contributions by radio licensees to Canadian talent development, a radio licensee serving a community the size of Wainwright would normally 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. The applicant confirmed that it would participate in the CAB's plan and expend $400 in each broadcast year on initiatives that directly support Canadian talent development.

5.

The applicant also made a commitment to contribute an additional $5,000, in each broadcast year, to the direct funding of Canadian talent development. Of that amount, the applicant proposed to devote $2,500 annually to the Aboriginal Voices Radio Network (AVRN) and $2,500 annually to FACTOR.
 

Intervention

6.

The Commission received an opposing intervention by 912038 Alberta Ltd., the licensee of CKLM-FM Lloydminster, Alberta. The intervener contended that Wainwright's population is not large enough to support a new radio station in the market identified by the contours defined in the application. Furthermore, the intervener argued that the Commission should issue a call for applications from other parties interested in serving Wainwright, if it determined that an expansion of radio services in that community is warranted.
 

The applicant's reply

7.

In response, the applicant maintained that it has the support of the people in the area it proposes to serve. The applicant claimed that the proposed station would bring employment, economic growth and quality local FM programming to a region presently underserved. The applicant added that the proposed station would serve a population of approximately 14,800 within its 3 millivolts per metre contour and provide a very modest return on capital invested over the first seven-year licence term.

8.

With respect to the intervener's argument that the Commission should issue a call for competing applications, the applicant pointed out that it is the sole commercial operator in Wainwright. The applicant claimed that its proposal would, therefore, qualify as an exceptional case, in accordance with The Issuance of calls for radio applications, Public Notice CRTC 1999-111, 8 July 1999 (Public Notice 1999-111).
 

The Commission's analysis and determination

9.

The Commission notes that the applicant operates the only local commercial radio station in the Wainwright market. In view of the fact that approval of the proposed new station would not affect any other commercial radio licensee in the market, the Commission does not have any concerns with regard to the size of the population to be served.

10.

Furthermore, the Commission agrees with the applicant that its proposal falls within the exceptions set out in Public Notice 1999-111. In that public notice, the Commission stated that applications for new radio stations would generally trigger a call for competing applications in the affected market except in the circumstances described in the notice. As one of the exceptions to that general rule, the Commission cited proposals by the sole commercial operator in a market to improve service to that market through a new station. The Commission stated that it would not be in public interest to delay implementation of an improvement in service.

11.

In light of the above and consistent with Public Notice 1999-111, the Commission determines that a call for competing applications is not necessary.

12.

The Commission has assessed the applicant's proposal to devote $2,500 annually to the development of AVRN. Consistent with the Commission's past treatment of similar proposals by Newcap Inc., the Commission has not accepted this initiative as being one that would contribute directly to Canadian talent development. Nonetheless, the Commission considers that this initiative, dedicated to the support of AVRN, would contribute to the fulfilment of section 3(1)(o) of the Broadcasting Act, which states that programming reflecting the Aboriginal cultures of Canada should be provided within the Canadian broadcasting system, as resources become available. In the Commission's view, the proposed initiative would thus be beneficial to the broadcasting system as a whole.

13.

With respect to the remainder of the applicant's plans, the Commission is satisfied that they would be consistent with all relevant policies. Further, it considers that the proposed service would contribute to the range of musical choices available to radio listeners in Wainwright, and assist in developing emerging Canadian musical talent.

14.

Based on the foregoing, the Commission approves the application by 3937844 Canada Inc., a subsidiary of Newcap Inc., for a broadcasting licence to operate an English-language FM radio programming undertaking in Wainwright. The station will operate at 93.7 MHz (channel 229C1) with an ERP of 100,000 watts.
 

Issuance of the licence

15.

The licence will expire 31 August 2010 and will be subject to the conditions set outin New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999, including a condition of licence requiring the applicant to make contributions to Canadian talent development in accordance with the CAB plan. The licence will also be subject to the following conditions:
 
  • The licensee shall contribute a minimum of $2,500 in each broadcast year to FACTOR.
 
  • The licensee shall contribute a minimum of $2,500 in each broadcast year to the development of the Aboriginal Voices Radio Network.

16.

The Commission reminds the applicant that all direct cost expenditures related to Canadian talent development must comply with the criteria set out in An FM policy for the nineties, Public Notice CRTC 1990-111, 17 December 1990, which describes initiatives generally accepted by the Commission.

17.

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.

18.

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.

19.

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 30 January 2006. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before this date.
 

Employment equity

20.

Because this applicant is subject to the Employment Equity Act and files reports concerning employment equity with Human Resources Development Canada, its employment equity practices are not examined by the Commission.
  Secretary General
  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: http://www.crtc.gc.ca

Date Modified: 2004-01-30