Commercial AM or FM Radio Broadcasting

Act: Broadcasting Act, 1991, c.11, s.1
Regulation: Radio Regulations, 1986, SOR/86-982, as amended;Broadcasting License Fee Regulations, 1997, SOR/97-144;CRTC Rules of Procedure, C.R.C.1978

To Whom Does This Apply?

Anyone who wants to start a radio-broadcasting company in Canada.

Summary

The Broadcasting Act gives the Canadian Radio-television and Telecommunications Commission (CRTC) its powers in relation to broadcasting undertakings. Under this Act, the Commission regulates and supervises all aspects of the Canadian broadcasting system with a view to implementing the broadcasting policy set out in the Act.

The Radio Regulations set out the regulations respecting AM and FM radio broadcasting undertakings. Under this Act, the Commission regulates and supervises all aspects of the Canadian broadcasting system with a view to implementing the broadcasting policy set out in the Act.

The Broadcasting License Fee Regulations set out the license fees paid to the CRTC by Canadian broadcasters.

The CRTC Rules of Procedure set out the rules on how the CRTC deals with broadcasting applications.

Application Process

An application form entitled "Application to Obtain a New Broadcasting License to Carry On a Commercial (Radio) Programming Undertaking" must be completed. Once provided to the Commission and any deficiencies identified and completed, and the application is considered complete, the Commission may, where circumstances warrant, issue a call for any other applicants interested in obtaining a license in that market. Once this process is complete, the applications considered complete are scheduled for a public hearing. A decision is normally rendered within a few months following the public hearing.

Waiting Period

The entire process normally takes from 8 to 18 months depending on whether or not there is a competitive process.

License Fees

License fees are payable in two parts. Part I is payable April 1 of each year and Part II is payable November 30 of each year.

A Part I fee is payable if your revenue is in excess of the exemption amount of $2 million for an AM or FM undertaking and if your revenue is over the exemption limit of $4 million for combined AM/FM undertakings operating in the same market area. If your revenue is under the exemption amount of $2 million or $4 million for a combined undertaking, there is no license fee payable. In all cases, the first $500 000 in revenue is exempted.

A Part II fee is payable on November 30, if your revenue is over the exemption amount noted above. The license fee is 1.365% multiplied by the amount of revenue in excess of $500 000. For AM/FM combined undertakings, the license fee is 1.365% of the amount in excess of $500 000.

License Period

The maximum licensing period permitted under the Act is seven years.

Once a license has been granted, a licensee generally has up to two years to get the station up-and-running, unless the CRTC grants an extension.

Information Package on Commercial Radio AM and FM

Regulations and Directives

• Ineligibility to Hold Broadcasting Licenses (Direction to the CRTC);
• Ineligibility of Non-Canadians (Direction to the CRTC);
• Radio Regulations, 1986 and Amendments.

Policies

• Commercial Radio Policy, 1988 - Public Notice 1998-41;
• Broadcast Code for Advertising to Children, Revised - Public Notice 1993-99;
• Canadian Broadcast Standards Council - Public Notice 1991-90;
• Canadian Talent Development - Contributions - Public Notices 1995-196, 1996-114;
• Documentary Evidence to Confirm Availability of Financing - Commission Policy;
• Employment Equity Policy - Implementation of / On-Air Presence - Public Notices 1992-59, 1994-69, 1995-98, 1997-34;
• Guidelines for Assessing Applications for Programming Flexibility from Licenses of Radio Stations in Border Markets and Small Markets - Public Notice 1992-3;
• Local Programming, Policies - Public Notices 1993-38, 1993-121;
• Revised Policy on the Use of Hits by English-Language FM Radio Stations - Public Notice 1997-42;
• Revised Content Categories and Subcategories for Radio - Public Notice 1999-137;
• New License Form for Commercial Radio Stations - Public Notice 1999-137;
• The Issuance of Calls for Radio Applications - Public Notice 1999-111;
• Advertising of Alcoholic Beverages, Broadcast - Public Notices 1997-12, 1999-132;
• Broadcasting Act;
• Broadcasting Information Regulations, 1993 and Amendments;
• Broadcasting License Fee Regulations, 1997;
• Ethnic Broadcasting Policy - Public Notice 199-117;
• Gender Portrayal Policy - Public Notice 1992-58;
• Low-Power Radio: Limited Duration Special Event Facilitating Undertakings - Exemption Order - Public Notice 1993-45;
• Low-Power Radio Broadcasting Policy - Public Notice 1993-95;
• Radio Networks and Syndication Policy - Public Notice 1989-3;
• Religious Broadcasting Policy - Public Notice 1993-78;
• Rules of Procedure - CRTC (Broadcasting);
• Services Using the Vertical Blanking Interval (Television) or Subsidiary Communications Multiplex Operation (FM) Policy - Public Notice 1989-23.

The Commission suggests clients consult these documents which can be obtained upon request from CRTC offices or from the CRTC Web site.

Technical Requirements

Technical documentation must be filed with Industry Canada upon application to the Commission in order to obtain a technical certificate. This is required under theBroadcasting Act before the issuance of a license.

An information package to obtain a broadcast certificate regarding the technical aspect of your application is available by writing to the following address:

Industry Canada
Television System Broadcasting
Application Engineering Directorate
Room 1460C, Journal Tower North
300 Slater Street
Ottawa, Ontario  K1A 0C8

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
Canadian Radio-television and Telecommunications Commission
Les Terrasses de la Chaudière
Central Building
1 Promenade du Portage
Gatineau, Quebec  J8X 4B1
Telephone: (819) 997-0313
Fax: (819) 994-0218
Toll-free (information): 1-877-249-2782
TTY Toll-free (hearing impaired): 1-877-909-2782
TTY (hearing impaired): (819) 994-0423
E-mail: info@crtc.gc.ca
Web site: http://www.crtc.gc.ca/eng/welcome.htm