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Decision CRTC 2001-625
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Ottawa, 4 October 2001
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Radio 1540 Limited
Ottawa, Ontario/Hull, Québec 2001-0292-1
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22 May 2001 Public Hearing
National Capital Region
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New ethnic FM station for Ottawa/Hull
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At a public hearing in the National Capital Region, the
Commission considered eleven applications for FM stations to serve
the Ottawa/Hull area. In this and other decisions published today,
the Commission has approved a total of four applications for new FM
stations: one English-language dance music station, one that will
have an Aboriginal focus, a multicultural station, and an
application for a French-language classical music service. The
Commission's overall approach to the competitive applications for
new radio stations to serve the Ottawa/Hull market is discussed in
Public Notice CRTC 2001-105 issued today.
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1. |
The Commission approves the application by Radio 1540
Limited (Radio 1540) for a broadcasting licence for a specialty FM
(ethnic radio) programming undertaking at Ottawa/Hull. The new
station will operate on the frequency 97.9 MHz
(channel 250B1). The licence, when issued to Radio 1540
Limited, will be subject to the terms and conditions set out in the
appendix to this decision as well as those in the licence to be
issued.
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The new station |
2. |
The new station will serve the approximately 360,000 residents of
Ottawa/Hull who are of minority ethnic origin. Ninety-four percent
of weekly programming will be ethnic programming, and at least 92%
of all programming will be in languages other than English, French
or languages of the Aboriginal peoples of Canada. Such programming
will be directed to a minimum of 37 cultural groups in at least 20
different languages each broadcast week. The Commission is imposing
these commitments as conditions of licence.
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3. |
Most programming will be locally oriented and created by
associate producers from local ethnic communities. Programming will
consist of talk, news and music with a strong emphasis on
information. Locally-oriented programming will be supplemented by
regional open-line call-in shows produced jointly by the licensee’s
stations in Ottawa and Toronto. The applicant considered that this
programming would provide an opportunity for exchanges between
ethnic communities in the two cities. The Commission is imposing a condition
of licence limiting the amount of such regional programming to a
maximum of 15 hours per week.
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4. |
Although most programming will be directed to particular cultural
and linguistic communities, the new station will also broadcast 7.5
hours per week of cross-cultural programming. Such programming,
which will be hosted in English and in French, will consist of a
one-hour call-in program broadcast each weekday, preceded by a
half-hour program featuring world music.
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Ownership and synergies |
5. |
Radio 1540 also owns and operates CHIN and CHIN-FM, two ethnic
stations that have served Toronto for many years. The applicant
emphasized that its new station would not be an extension of its
Toronto operations, but would rather be a new local station designed
specifically for the Ottawa/Hull market. Producers from Toronto will
not oversee production for the Ottawa/Hull station.
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6. |
The applicant did, however, consider that its experience and
facilities in Toronto could enable its Ottawa/Hull station to
operate more effectively and efficiently. Radio 1540 also considered
that the staff at the new station would benefit from its
long-established and proven training and development programs. The
applicant further indicated that it would control administrative
costs by relying on centralized engineering, accounting, financial,
traffic and other office management systems. |
7. |
The new station will also have access to the extensive ethnic
music library that CHIN has built up over many years. As noted
above, the licensee will broadcast a regional call-in show both in
Ottawa and Toronto.
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Assessing the applications |
8. |
The Commission assesses applications for new radio stations in
light of the objectives set out in the Broadcasting Act (the
Act) and the public interest. |
9. |
In recent decisions involving competing commercial radio
applications, the Commission has noted that there are four main
factors relevant to its evaluation of such applications. While their
relative importance can vary according to the specific circumstances
of the market, these factors are: the likely impact of a new entrant
or entrants on existing licensees; the competitive state of the
market; implications with respect to the diversity of editorial
voices in the market; and the quality of the applications.
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10. |
Since this is an application for an ethnic station, the
Commission has also assessed it in light of its Ethnic
broadcasting policy set out in Public Notice CRTC 1999-117. |
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Impact of a new entrant |
11. |
The Commission generally seeks to assure itself that the
competitive impact of a new entrant to a radio market will not
impinge unduly on the ability of incumbent stations to meet their
programming responsibilities under the Act. Otherwise, the
Commission’s predisposition lies clearly in favour of increased
competition and diversity, and the improvements in the overall
quality of available services that these promote.
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12. |
The Ottawa/Hull radio market is performing well, with an overall
profit before interest and taxes of 20% in 2000. The Commission
notes that this station is designed for an audience that is
currently underserved, and that it will not compete directly with
any existing local station. As noted earlier, it will also provide
at least 92% its programming in third languages. The Commission is
therefore convinced that the Ottawa/Hull radio market can support
the station licensed in this decision without an undue negative
effective on existing English-language and French-language stations.
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Competitive state of the market |
13. |
The Commission is satisfied that its approval of this application
has no negative implications with respect to the competitive state
of the Ottawa/Hull radio market. |
14. |
The competitive state of a market, as a factor in the Commission’s
consideration of applications proposing new commercial radio
stations, is generally most relevant where the applicant is the
licensee of an existing station in that market. In such cases, the
Commission’s concern is that its licensing actions not create an
undue competitive imbalance in the market. |
15. |
The Commission notes that Radio 1540 will be a new player in the
Ottawa/Hull market. As such, it will serve to increase the number of
radio voices in the market.
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Diversity of editorial voices |
16. |
Radio 1540 will provide a new editorial voice in Ottawa/Hull,
especially for those who speak languages other than English or
French. |
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Quality of the application |
17. |
The Commission generally considers four main criteria when
assessing the quality of a new radio application. These are: the
applicant’s local programming proposals and plans for providing
reflection of the local community; its Canadian content commitments;
the quality of its business plan (including the proposed format);
and commitments in support of the development of Canadian talent.
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18. |
The Commission is satisfied that Radio 1540 has presented a
high-quality application in light of these criteria and the Ethnic
broadcasting policy and that, overall, it has presented the better
of the two applications for a new ethnic radio station in
Ottawa/Hull. Among other things, Radio 1540 will offer a very high
level of ethnic programming (94% of the schedule), a very high level
of programming in third languages (92% of the schedule) and will
exceed the minimum level of Canadian music required for ethnic
programming periods. These and other matters are addressed below.
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Reflection of the community
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19. |
As indicated above, the new station will provide programming
directed to at least 37 cultural groups that form part of the
population of the Ottawa/Hull market, in a minimum of 20 languages.
In addition, 94% of the programming schedule will be ethnic
programming, and 92% of the schedule will be devoted to programming
in third languages. In order to ensure a strong local orientation,
programming will be created by local associate producers drawn from
the local ethnic communities.
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20. |
Radio 1540 is also establishing a local advisory board to assist
it to be as responsive as possible to the needs of the local
community. The board will provide advice, assistance and guidance on
the operation and the programming of the station. The board will
also assist the licensee in seeking out, nurturing, training and
assisting program producers from local ethnic communities. All
advisory board members and all associate producers will come from
Ottawa/Hull, and will represent the interests of residents on both
sides of river.
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Level of Canadian content
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21. |
Radio 1540 will ensure that at least 10% of all musical
selections aired each broadcast week during ethnic programming
periods are Canadian selections. This commitment exceeds the 7%
minimum requirement set out in the Radio Regulations, 1986.
Radio 1540's commitment is set out as a condition of licence
in the appendix to this decision.
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Business plan and programming format
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22. |
The Commission considers that the format proposed by the licensee
will be attractive to listeners, and that adequate financing is
available to implement the station and sustain it through the
initial periods of operation.
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23. |
The applicant’s business plan is predicated on offering
programming to ethnic communities, an audience that is currently
underserved in the Ottawa/Hull market. The Commission further notes
the results of a study by Pollara, a public opinion research
company, that was commissioned by the applicant. In response to
Pollara’s survey, 72% of ethnic respondents indicated that they
would listen to the station that Radio 1540 proposed. The Commission
also considers that synergies with the applicant’s stations in
Toronto will allow it to operate efficiently and help it fulfil its
commitments to serve a wide range of local ethnic communities.
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Canadian talent development
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24. |
Radio 1540 will spend a minimum of $55,000 per year in direct
expenditures for Canadian talent development (CTD), resulting in a
total expenditure of $385,000 over the seven year licence term. A condition
of licence to this effect is set out in the appendix to this
decision.
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25. |
Annual funding for CTD will be allocated as follows: |
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· $10,000 to FACTOR to support the
production of Canadian sound recordings. |
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· $17,000 to Canadian Music Week to
support the establishment of an ethnic music showcase. |
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· $10,000 for a CHIN (Ottawa)
Multicultural Music and Song Competition. As part of this
initiative, a CD will be recorded and distributed to all ethnic
stations across Canada, and a video program will be broadcast on
both CHRO-TV (Ottawa) and CITY-TV (Toronto). |
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· $10,000 for a CHIN (Ottawa)
Multicultural Music Initiative. Under this initiative, Radio 1540
will sponsor a series of public performances, record and broadcast
the best of these performances, develop a music mentoring program,
and underwrite a symposium to be held during the song competition
discussed above. |
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· $ 5,000 for scholarships. These
include a $2,500 scholarship for a journalism student at Carleton
University, and $1,250 dollars to each of two music students; one
attending Carleton University and one attending the University of
Ottawa. |
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· $3,000 to support the development of
an ethnic music catalogue by the Canadian Association of Ethnic
Broadcasters. |
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Other development initiatives |
26. |
In addition to the initiatives for Canadian talent development
discussed above, the applicant indicated that it would provide
$2,500 per year to both campus station CKCU-FM and campus station
CHUO-FM to assist them in ethnic program development and the
training of ethnic broadcasters. The Commission is imposing this
commitment as a condition of licence.
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Ethnic broadcasting policy |
27. |
The Commission considers that this application fulfills the
requirement of its ethnic broadcasting policy to serve a broad range
of ethnic groups within the proposed service area of the station. |
28. |
It further notes that, as set out earlier in this decision, the
new station will exceed the requirements of the ethnic broadcasting
policy which states that ethnic stations must devote at least 60% of
their programming to ethnic programming and at least half of their
schedules to programming in third languages. |
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Interventions |
29. |
Several interveners expressed concerns related to the impact that
licensing this and other applications might have on the future
development of French-language radio services to serve Ottawa/Hull.
This matter is addressed in Public Notice CRTC 2001-105, also issued
today. |
30. |
The Commission wishes to thank all those who participated in the
public process leading to this decision, either through their
written intervention or through their presentations at the public
hearing.
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Related CRTC documents
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• Public Notice 2001-105 – Introductory
statement to Decisions CRTC 2001-625 to CRTC 2001-629: Radio
applications considered at the 22 May 2001 public hearing in
the National Capital Region |
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• Public Notice 1999-137 - New
licence form for commercial radio stations |
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• Public Notice 1999-117 – Ethnic
broadcasting policy |
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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 at the
following Internet site: http://www.crtc.gc.ca
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Appendix to Decision CRTC 2001-625
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Terms and conditions of licence pertaining to the licence to be
issued to Radio 1540 Limited for a new FM station to serve
Ottawa/Hull |
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The Commission will only issue the licence, and it will only be
effective at such time as:
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· the licensee confirms in writing that
it is ready to begin operation. This must take place within
12 months of today’s date. Any request for an extension to
that deadline requires Commission approval and must be made in
writing within that period. |
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· Industry Canada, having advised that
the application is conditionally technically acceptable, determines
that there is no unacceptable interference with NAV/COM services and
indicates that it will issue a broadcasting certificate (section
22(1) of the Broadcasting Act). |
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The licence, when issued, will expire 31 August 2008.
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The station will broadcast on the FM band, on the frequency
97.9 MHz, channel 250B1, with an effective radiated power of
800 watts. |
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The Commission notes that this licensee is subject to the Employment
Equity Act that came into effect on 24 October 1996 and
therefore files reports concerning employment equity with Human
Resources Development Canada.
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Conditions of licence |
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The licence will be subject to the conditions specified in the
licence to be issued, as also set out in Public Notice CRTC 1999-137. The licence will also be subject to the following
conditions:
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1. The licensee shall offer, on a weekly
basis, programming directed to a minimum of 37 cultural groups in a
minimum of 20 languages. |
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2. The licensee shall devote a minimum of
94% of the programming broadcast in each broadcast week to ethnic
programming, as defined in Public Notice CRTC 1999-117 and as
amended from time to time. |
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3. The licensee shall ensure that at
least 92% of programming aired each broadcast week is in languages
other than English, French or a Canadian Aboriginal language. |
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4. The licensee shall devote no more than
15 hours per broadcast week to the broadcast of regional open-line
programming. For the purpose of this condition, regional open line
programming means open-line programming that is broadcast
simultaneously on this station and on CHIN or CHIN-FM Toronto. |
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5. As an exception to section 2.2(4) of
the Radio Regulations,1986, the licensee shall ensure that at
least 10% of the musical selections broadcast during ethnic
programming periods each broadcast week are Canadian selections. |
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6. The licensee shall contribute a
minimum of $55,000 per year in direct expenditures for the
development of Canadian talent, as outlined in this Decision. |
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7. The licensee shall allocate $5,000 per
year to assist in ethnic program development and the training of
ethnic broadcasters at the Ottawa/Hull campus radio stations CKCU-FM
and CHUO-FM. Each of the two stations shall receive $2,500 per year. |