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Broadcasting Decision CRTC 2005-339
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Ottawa, 21 July 2005 |
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South Asian Broadcasting Corporation
Inc.
Vancouver, British Columbia |
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Application 2004-1101-7
Public Hearing at Vancouver, British Columbia
28 February 2005 |
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Ethnic FM radio station in Vancouver
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In this decision, the Commission
approves the application by South Asian Broadcasting Corporation
Inc. for a broadcasting licence to operate a new commercial specialty FM
(ethnic) radio station at Vancouver at 93.1 MHz. The applicant proposed
a service that will be directed predominantly to Vancouver’s South Asian
communities. |
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Background
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1. |
The application by South Asian Broadcasting
Corporation Inc. (SABC) was one of eight applications for broadcasting
licences to operate new radio stations at Vancouver considered by
the Commission at a public hearing that commenced on 28 February 2005
in Vancouver. SABC’s application was for a broadcasting licence to
operate a new Vancouver ethnic radio station targeted primarily to
South Asian audiences. It is one of two such applications approved
today by the Commission. In Ethnic AM radio station in Vancouver,
Broadcasting Decision CRTC 2005-338,
the Commission also approves the application by I.T. Productions Ltd.
(I.T.) for an ethnic AM station. The six other applications for radio
broadcasting licences considered at the Vancouver hearing, including
five proposing new ethnic radio services, have been denied by the
Commission in Denial of various applications proposing new Vancouver
radio services, Broadcasting Decision CRTC 2005-340
of today’s date. |
2. |
The Commission’s determinations that a
demand exists for new ethnic radio services targeted principally to
South Asian audiences, and that the Vancouver radio market can absorb
the impact of their introduction, are set out in Licensing of new
ethnic radio stations to serve Vancouver – Introduction to Broadcasting
Decisions CRTC 2005-338 to 2005-340
, Broadcasting Public Notice CRTC 2005-68
(Public Notice 2005-68),
also issued today. Public Notice 2005-68
also summarizes the rationale underlying the Commission’s decisions
to approve the applications by SABC and I.T., namely that these two
applications best met the evaluation criteria established by the Commission
in Call for applications for broadcasting licences to carry on
radio programming undertakings to serve Vancouver, British Columbia,
Broadcasting Public Notice CRTC 2004-55,
21 July 2004 (the call for applications) and represent the best
use of the frequencies involved. |
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The applicant
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3. |
SABC, a company incorporated in British
Columbia, is effectively controlled by Mr. Kulwinder Sanghera through
his direct and indirect ownership of a majority of the company’s issued
voting shares. Mr. Sanghera has long been involved in the production of
multicultural television programming and in the multicultural music
recording industry, both in Canada and abroad. |
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Programming plans and commitments
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Ethnic programming
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4. |
In its written application, SABC committed
to operate an ethnic radio station that would provide programming to at
least 15 ethnic groups and in a minimum of 15 languages, when measured
on a weekly basis, but indicated that, when calculated on a monthly
basis, these numbers would increase to 16 and 18, respectively. At the
hearing, SABC stated that it would be prepared to provide a service that
would adhere to the higher numbers specified above, i.e., service to a
minimum of 16 ethnic groups in a minimum of 18 different languages, both
as measured on a weekly basis. As proposed by the applicant, at least
90% of all weekly programming would qualify as ethnic programming and
would be devoted to third language programming. The principal languages
of broadcast, accounting for 75% of all programming, would be Punjabi,
Hindi and Urdu. The applicant’s proposal indicates that virtually all of
the proposed programming would be directed to underserved ethnic groups
in the Vancouver market, with 80% targeted to various South Asian
communities, and the remaining 20% to other underserved ethnic groups.
For the purpose of this calculation regarding the amount of programming
that SABC would devote to underserved ethnic groups, the Commission has
considered to be "underserved", ethnic groups that, according to the
data contained in the CRTC Broadcasting Policy Monitoring Report 2004,
currently receive five hours or less of programming per week from
existing Vancouver ethnic radio stations. |
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Local reflection
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5. |
The Commission notes SABC’s commitment to
ensure that all of the programming aired by the new station is locally
produced, including the portion of the schedule (12%) that is to consist
of brokered programming. Spoken word programming is to occupy
approximately 44 hours weekly, including 6.5 hours of news and between
25 and 30 hours of station-produced open-line programming. The applicant
stated that it would implement measures to ensure that the content of
this open-line programming meets its regulatory obligations and
responsibilities at all times. The applicant also indicated that its
spoken word programming will focus on promoting local talent and
diversity in culture and heritage, and on facilitating integration
within the community. Special emphasis is to be given to issues related
to women and youth. SABC further committed to establish a seven-member
advisory committee that would include participation by representatives
of the ethnic communities present within the station’s service area. |
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Canadian talent development
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6. |
SABC did not propose to take part in the
plan developed by the Canadian Association of Broadcasters (CAB)
establishing varying levels for financial contributions by licensees to
Canadian talent development. Instead, the applicant committed to direct
a minimum of $30,000 in each of the first three years of operation to
Canadian talent development. In each of years four through seven, SABC
committed, as a minimum, to make direct annual expenditures representing
the greater of $30,000 and 2.5% of total annual revenues derived from
the operation of its proposed station in support of Canadian talent
development. |
7. |
Specifically, the applicant stated that it
would provide funding for the Canadian talent development initiatives,
and in the minimum amounts specified below: |
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contributions to Foundation to Assist Canadian Talent on Record
(FACTOR) and MusicAction - $4,000 each for a total of $8,000 per year;
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- contribution to the Canadian Association of Ethnic Broadcasters
for the maintenance of its catalogue of Canadian ethnic recordings -
$3,000 per year;
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- scholarships for visible minority youth enrolled in the music or
the journalism program of the British Columbia Institute of Technology
- $3,000 per year;
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- contributions to the Kalamandir Music Society of BC - $4,000 per
year;
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- contributions to the Surrey India Arts Club - $4,000 per year;
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- contributions to the Gurdip Arts Academy - $3,700 per year; and
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- talent search contest - $4,250 per year.
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8. |
As a further matter, the Commission notes
that SABC’s written application contained a commitment to adhere to the
provision of a minimum level of 7% Canadian content in musical
selections aired during ethnic programming periods, as specified in
section 2.2(4) of the Radio Regulations, 1986 (the Regulations).
At the hearing, however, the applicant stated that it would be prepared
to adhere to a minimum level of 10% Canadian content aired during ethnic
program periods. |
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Interventions
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9. |
The Commission received more than 760
interventions in support of SABC’s application. An opposing intervention
was filed by Jim Pattison Broadcast Group Limited Partnership1
(Pattison), the licensee of CKBD Vancouver. The intervener indicated
that it wished to make use of the same frequency as that proposed by
SABC in its application, namely 93.1 MHz, for the purpose of converting
CKBD to the FM band. In a second opposing intervention, Mr. Robert
Muckle noted the applicant’s involvement in the music recording
industry, and expressed concern that the recordings of artists who are
not associated with the applicant might not receive fair play on the
proposed station. In a third opposing intervention, Mr. Max Lama claimed
that SABC and the other applicants for Vancouver radio licences, with
the exception of Newlife Communications Inc., had failed to make
provision in their plans for programming directed to the Christians
present in many of Vancouver’s ethnic communities. Fairchild Radio Group
Ltd. (Fairchild), licensee of CJVB Vancouver and indirect owner of the
licensee of CHKG-FM Vancouver, intervened to request that SABC, if
licensed, be restricted by condition of licence from targeting
Vancouver’s Chinese community. |
10. |
The applicant chose not to respond in
writing to the opposing interventions. Regarding the Pattison
intervention, however, the Commission notes that this intervener, in
response to the call for applications, had filed an application
requesting permission to convert its Vancouver AM station to the FM
band. This application was returned to Pattison by the Commission
because it was outside the evaluation criteria set out in the call for
applications. With respect to Mr. Muckle’s concerns about artists
receiving fair play on the proposed station, the Commission notes the
applicant’s assurances at the hearing that no undue advantage would be
given to recording artists affiliated with the recording studios owned
by the applicant’s principal shareholder. As for the intervention by
Fairchild, the Commission notes SABC’s statement at the hearing that it
would accept a condition of licence that it not broadcast programming in
a Chinese language. |
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Commission’s analysis and determinations
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11. |
Based on the demographic, economic and other
evidence relative to the criteria set out in Public Notice 2005-68,
the Commission has determined that there is a demand and a market
for ethnic programming directed principally to Vancouver’s South Asian
communities sufficient to warrant the licensing of two new ethnic
radio services, and that the introduction of such ethnic services
would not have a material impact on the ability of incumbent radio
licensees to meet their programming responsibilities under the Broadcasting
Act (the Act). Furthermore, based on its assessment of the eight
applications proposing new Vancouver radio services, the Commission
has determined that the applications by SABC and I.T. best meet the
evaluation criteria set out in the call for applications and represent
the best use of the frequencies involved. |
12. |
With specific reference to SABC, the
Commission is satisfied that this applicant has a sound business plan
and will offer an attractive new programming service dedicated in its
entirety to underserved ethnic groups in Vancouver. The Commission notes
the experience of SABC’s principal shareholder in business activities
closely related to broadcasting. The Commission considers that the
proposed new FM station can make a meaningful contribution to the
broadcasting system, add to the diversity of ownership within the
Canadian radio broadcasting industry and provide a new editorial voice
in the Vancouver radio market. |
13. |
The Commission accordingly approves
the application by South Asian Broadcasting Corporation Inc. for a
broadcasting licence to operate a commercial specialty FM (ethnic) radio
programming undertaking at Vancouver, at 93.1 MHz (channel 226C), with
an average effective radiated power of 2,800 watts. |
14. |
The licence will expire 31 August 2011 and
will be subject to the conditions set out in New
licence form for commercial radio stations, Public Notice CRTC 1999-137,
24 August 1999, with the exception of condition of licence 5,
which would otherwise have required the licensee to participate in
the CAB’s Distribution Guidelines for Canadian Talent Development,
and condition of licence 8, which would otherwise have precluded the
station from operating in the Specialty format. The licence will also
be subject to the further conditions set out in the appendix
to this decision. |
15. |
As noted earlier in this decision, while
SABC’s written application contained its commitment to direct
programming to a minimum of 15 ethnic groups in a minimum of 15
different languages each week, the applicant indicated at the hearing
that it would be willing to abide by a slightly broader commitment,
i.e., to serve a minimum of 16 ethnic groups, and in a minimum of 18
different languages, both as measured on a weekly basis. In the
conditions of licence appended to this decision, the applicant is
required to meet the commitment specified in its written application, at
a minimum. Nevertheless, the Commission strongly expects SABC to adhere
to the broader commitment to provide service in each broadcast week to a
minimum of 16 ethnic groups, in a minimum of 18 different languages.
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16. |
SABC had also committed in its written
application to the provision of a minimum of 7% Canadian content in
musical selections aired during ethnic programming periods, but
indicated at the hearing it would be prepared to adhere to a minimum
level of 10% Canadian content during such periods. Once again, the
applicant is required to meet the commitment specified in its written
application, at a minimum, which accords with the 7% minimum specified
in the Regulations. Nevertheless, the Commission strongly expects SABC
to adhere to its commitment at the hearing to provide a minimum of
10% Canadian content in musical selections aired during ethnic
programming periods. |
17. |
The Commission also expects the applicant
to adhere to its commitment for the establishment of a seven-member
advisory committee, which would include representatives of the ethnic
communities present in its service area. The Commission notes that the
Committee would, amongst other things, be charged with responsibility
for ensuring that the radio station reflects the local distinctiveness
of each of these communities by keeping abreast of their needs and
interests and by reflecting these in the station’s local programming. |
18. |
Further, the Commission expects the applicant
to ensure that its Canadian talent development initiatives, which
are described earlier in this decision as well as in its appendix,
are eligible as direct contributions, as set out in Appendix 1 of
An FM policy for the nineties, Public Notice CRTC 1990-111,
17 December 1990. |
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Issuance of the licence
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19. |
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. |
20. |
The Commission reminds the applicant that,
pursuant to section 22(1) of the 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. |
21. |
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 21
July 2007. In order to ensure that such a request is processed in a
timely manner, it should be submitted at least 60 days before that date. |
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Employment equity
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22. |
In accordance with Implementation of an
employment equity policy, Public Notice CRTC 1992-59,
1 September 1992, the Commission encourages the licensee to consider
employment equity issues in its hiring practices and in all other
aspects of its management of human resources. |
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Secretary General |
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This decision is to be appended to the
licence. It is available in alternative format upon request, and may
also be examined in PDF format or in
HTML at the following Internet site: http://www.crtc.gc.ca
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Appendix to Broadcasting Decision CRTC 2005-339
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Conditions of licence
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1. The licence will be subject to the conditions set out in New
licence form for commercial radio stations, Public Notice CRTC
1999-137, 24
August 1999, with the exception of conditions 5 and 8.
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2. The station shall be operated within the Specialty format as
defined in A Review of certain matters concerning radio,
Public Notice CRTC 1995-60,
21 April 1995, and Revised content categories and subcategories
for radio, Public Notice CRTC 2000-14,
28 January 2000, as amended from time to time.
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3. The licensee shall, in each broadcast week, direct programming
to a minimum of 15 ethnic groups in a minimum of 15 different
languages.
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4. Not less than 90% of the programming in each broadcast week
shall be ethnic programming, and all of the ethnic programming shall
be third language programming.
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5. Not less than 75% of the ethnic programming in each broadcast
week shall be in the Punjabi, Hindi and Urdu languages.
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6. None of the programming broadcast by the licensee shall be in a
Chinese language.
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7. The licensee shall direct a minimum of $30,000 in each of the
first three years of operation to the financial support for Canadian
talent development. In each of years four through seven, the licensee
shall make direct annual expenditures representing the greater of
$30,000 and 2.5% of total annual revenues derived from the operation
of its proposed station in support of Canadian talent development.
These amounts shall be distributed as follows:
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contributions to Foundation to Assist Canadian Talent on Record
(FACTOR) and MusicAction - $4,000 each for a total of $8,000 per
year;
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- contribution to the Canadian Association of Ethnic Broadcasters
for the maintenance of its catalogue of Canadian ethnic recordings -
$3,000 per year;
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- scholarships for visible minority youth enrolled in the music or
the journalism program of the British Columbia Institute of
Technology - $3,000 per year;
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- contributions to the Kalamandir Music Society of BC - $4,000 per
year;
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- contributions to the Surrey India Arts Club - $4,000 per year;
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- contributions to the Gurdip Arts Academy - $3,700 per year; and
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- talent search contest - $4,250 per year.
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Footnote:
Jim
Pattison Broadcast Group Ltd. (the general partner) and Jim Pattison
Industries Ltd. (the limited partner), carrying on business as Jim
Pattison Broadcast Group Limited Partnership. |
Date Modified: 2005-07-21 |