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The CRTC approves Cogeco’s acquisition of Quebec radio stations held by Corus

OTTAWA-GATINEAU, December 17, 2010 —The Canadian Radio-television and Telecommunications Commission (CRTC) today approved Cogeco’s acquisition of the Quebec radio stations held by Corus. This transaction will ensure the maintenance and diversity of information and public affairs programming in Montreal and the regions, which will benefit the entire broadcasting system in Quebec.

Cogeco has committed to establishing a news agency, to be called COGECO Nouvelles, which will feed participating local stations with mainly talk-radio content geared towards information and public affairs. The use of COGECO Nouvelles content by local stations will enable them to focus their resources on local coverage. The agency could also exchange content with small private independent stations and community stations, allowing for a better coverage of regional issues.

The Commission approved the applicant’s request for an exception to allow it to maintain a third FM station featuring a talk-radio format in the Montreal market, in addition to the two permitted by the common ownership policy. The Commission is of the view that Cogeco’s proposal, together with the arguments raised by the parties, forms a package of inextricably linked elements justifying the requested exception. In its decision, the Commission also took into consideration the particularities of the Quebec radio market, including the marked preference of listeners for the FM band and the progressive abandonment of the AM band.

In approving the transaction, the Commission imposed conditions on Cogeco to ensure the continuation of its information and public affairs programming. This decision will be reconsidered if there is a change to the talk-radio format.

However, the CRTC refused Cogeco’s request to transform the CKOY-FM Sherbrooke station into a rebroadcasting transmitter of CKAC-AM Montréal. The approval of such a request would result in the loss of a local voice in the Sherbrooke market. The Commission has therefore required Cogeco to divest itself of CKOY-FM in order to remain in compliance with the common ownership policy.

Cogeco also committed to divesting itself of the CJEC-FM and CFEL-FM stations in the Lévis/Quebec City market, which renders the transaction compliant for that market. The CHLN-FM Trois-Rivières and CJRC-FM Gatineau/Ottawa stations do not raise such concerns with regard to the policy.

Today’s decision follows a public proceeding that included a public hearing, which was held on September 28 and 29 in Montreal.

 

Broadcasting Decision CRTC 2010-942

 

The CRTC

The CRTC is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.


Reference documents:

Broadcasting Public Notice 2008-4

Broadcasting Notice of Consultation 2010-543 and 2010-543-1

 

 

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Additional information about the Cogeco/Corus transaction

Common ownership policy

Excerpt from the policy on common ownership with regard to the number of stations that an entity or person is authorized to operate in a given market:

In markets with less than eight commercial stations operating in a given language, a person may be permitted to own or control as many as three stations operating in that language, with a maximum of two stations in any one frequency band. In markets with eight commercial stations or more operating in a given language, a person may be permitted to own or control as many as two AM and two FM stations in that language.

 

Radio stations involved in the transaction

The transaction involves the following commercial radio stations currently held by Cogeco as well as those formerly owned by Corus.

 

Cogeco

Corus

 

Quebec City

CJEC-FM

 
  • Cogeco has committed to divesting itself of CJEC-FM and CFEL-FM.

CJMF-FM

 

 

CFOM-FM Lévis

 

CFEL-FM Lévis/Québec City

Sherbrooke

CFGE-FM
Retransmitter:  CFGE-FM1 Magog

  • The Commission requires Cogeco to divest itself of CKOY-FM.

 

CHLT-FM Sherbrooke

 

CKOY-FM Sherbrooke

Montréal

CFGL-FM Laval

 
  • The Commission approves Cogeco’s proposed exemption to acquire and operate the French-language music stations CKOI-FM and CFGL-FM and talk stations CHMP-FM and CKAC.

 

CKOI-FM

 

CHMP-FM Longueuil

 

CKAC-AM
   CKAC-DR-2 (digital)

 

CIME-FM Saint-Jérôme
   Retransmitters:
CIME-FM1 Val-Morin
     CIME-FM2 Mont-Tremblant
  • CIME-FM meets the new guidelines on the application of common ownership in radio – the population of the overlap zone represents less than 5% of the Montreal market

 

CFQR-FM
  • English-language station – does not raise any concerns in terms of the policy.

Gatineau/Ottawa

 

CJRC-FM Gatineau
   CJRC-DR-2 (digital)
  • Does not raise any concerns in terms of the policy.

 

Trois-Rivières

CJEB-FM

 
  • Does not raise any concerns in terms of the policy.

 

CHLN-FM
Date Modified: 2010-12-17

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