News release

February 26^th, 2004

The CRTC denies TV applications from CHUM
and Global for Edmonton and Calgary

OTTAWA-GATINEAU - In a decision released today, the Canadian Radio-television and Telecommunications Commission (CRTC) has denied the applications of CHUM Ltd. to operate new conventional television stations in Calgary and Edmonton. The Commission indicated that while the CHUM proposals included important commitments with regard to the production of local and regional programming as well as drama, the Commission is concerned by the potential negative impact that approval could have at this time on the two Alberta television markets concerned and finds that these concerns outweigh the potential benefits.

The Commission always assesses market capacity before issuing a licence. In particular, it looks at growth in advertising revenues and the profitability of stations already operating in that market. For the Calgary, Edmonton and Red Deer markets combined, advertising revenues only increased by 6.5% between 1998 and 2002, and the average profit margins before interest and taxes earned by the private conventional television stations in these markets decreased significantly from 1997 to 2002. In this particular case, the Commission decided not to approve the new television services.

In the same decision, the Commission decided not to permit Global to establish new CKRD-TV Red Deer transmitters in Calgary and Edmonton. Global already operates stations in these markets. The Commission concluded that approving the application would have had a long-term negative impact on existing television services. Furthermore, CanWest Global Communications Corp., which owns Global, is already the largest owner of media companies in Alberta. Approving the Calgary and Edmonton transmitters would therefore increase the level of concentration of ownership and cross-media ownership in those markets.

The Commission approved Global's application to disaffiliate its CKRD-TV station from the CBC network at such time as the CBC commences the operation of new transmitters in Coronation and Red Deer.

The Canadian Radio-television and Telecommunications Commission is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

Reference documents: Broadcasting Decisions CRTC 2004-98 (.pdf), 2004-99 and 2004-100

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Media Relations:
   MediaRelations@crtc.gc.ca, Tel: (819) 997-9403,
   Fax: (819) 997-4245

General Inquiries:
   Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
   Toll-free # 1-877-249-CRTC (2782), eMail: info@crtc.gc.ca
   TDD - Toll-free # 1-877-909-2782

Copies of today's documents are available through our Internet site (http://www.crtc.gc.ca) or by contacting the public examination room of any CRTC office. These documents are available in alternative format upon request.

Date Modified: 2004-02-26

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