--- In ABDX@yahoogroups.com, JNR <a1asurfradio@...> wrote:
>
> What was the CFRY decision?

Here it is!

Phil

Decision
Ottawa, 7 September 1995
Decision CRTC 95-676
Portage-Delta Broadcasting Co. Ltd.
Portage La Prairie, Manitoba, - 950226100
Application for authority to add an FM transmitter to rebroadcast the
programming of CFRY - Approved
Following a Public Hearing in Winnipeg beginning on 5 June 1995, the
Commission, by majority vote, approves the application by Portage-
Delta Broadcasting Co. Ltd. (Portage-Delta) to amend its broadcasting
licence to carry on the programming undertaking CFRY Portage La
Prairie by adding an FM transmitter at Portage La Prairie, operating
on the frequency of 93.1 MHz (channel 226B) with an effective
radiated power of 27,000 watts. The proposed transmitter will
broadcast all of the programming of CFRY.
This approval is subject to the requirement that construction of the
proposed transmitter be completed and that it be in operation within
twelve months of the date of this decision, or where the applicant
applies to the Commission within this period and satisfies the
Commission that it cannot complete construction and commence
operations before the expiry of this period and that an extension is
in the public interest, within such further periods of time as are
approved in writing by the Commission.
Should construction not be completed within the period stipulated in
this decision or, should the Commission refuse to approve an
extension of time requested by the applicant, the authority granted
shall lapse and become null and void upon expiry of the period of
time granted herein or upon the termination of the last approved
extension period.
The Department of Industry has advised the Commission that this
application is conditionally technically acceptable, and that a
Broadcasting Certificate will only be issued once it has been
determined that the proposed technical parameters will not create any
unacceptable interference with aeronautical NAV/COM services.
In accordance with subsection 22(1) of the Broadcasting Act, the
Commission will only issue the licence amendment, and the authority
granted herein may only be implemented, at such time as written
notification is received from the Department of Industry that its
technical requirements have been met, and that a Broadcasting
Certificate will be issued.
Approval of this application by Portage-Delta marks the first
occasion that the Commission has authorized a private broadcaster to
construct a transmitter within the coverage area served by its
existing station for purposes other than correcting technical
deficiencies in the signal coverage of the existing station. The
Commission notes in this regard that the 0.5 mv/m contour of the
proposed FM transmitter will be almost fully enclosed by the existing
5 mv/m daytime coverage of CFRY, and that more than half of that FM
contour will be enclosed by CFRY's current night-time coverage
pattern. While there will be improved night-time coverage to the
south of Portage La Prairie, the area concerned is very sparsely
populated.
This approval also represents a departure from the Commission's
historical approach, which has generally been to restrict the amount
of simulcasting permitted by a licensee on AM and FM transmitters
serving the same community. Although elements of its approach to
simulcasting are currently under review (see Public Notice CRTC 1995-
60 dated 21 April 1995), the Commission's objective, to ensure the
most efficient use of the radio spectrum, remains unchanged.
Because of the exceptional nature of this application, the Commission
discussed at some length with Portage-Delta the reasons put forward
by the licensee in support of its plans. The Commission also sought
an explanation as to why the applicant has chosen not to follow the
course of action taken by approximately 30 other AM broadcasters in
recent years who, often in the face of declining audiences and
revenues, and with the Commission's approval, have simply switched
over from use of an AM frequency to use of a full-power FM facility.
At the hearing, the licensee stated that, in constant dollars, CFRY
revenues in 1994 stood at slightly more than half the level of
revenues earned in 1980. The licensee attributed this erosion to a
number of factors, including the economic difficulties that have
challenged many players in the radio industry over the last decade,
the closure of CFB Portage La Prairie (a major employer in the
community), the impact of out-of-market tuning and a shift by
listeners away from AM to FM, as well as the competitive presence in
the market, since 1986, of CHMI-TV Portage La Prairie.
The Commission agrees that the high level of out-of-market tuning by
radio audiences in Portage La Prairie has had the effect of reducing
the amount of advertising revenue that CFRY is able to capture in
that community. Based on the available evidence, the Commission is of
the further view that a trend of losses has been established in the
case of this station, and may continue unless competitive conditions
change or some other action is taken to redress the situation.
According to the applicant, the proposed stereo FM transmitter will
capture additional tuning in CFRY's central market area largely
because of its appeal to an increased number of listeners who prefer
the superior fidelity of FM; this, in turn, will bring about an
increase in advertising revenues. When asked why it did not believe
these same objectives could be obtained through a switch to a full-
power FM frequency, the applicant replied that, due to the quality of
its signal, CFRY attracts an audience and generates some sales
activity outside what would be the coverage area of a full-power FM
station. The applicant further claimed that, notwithstanding the
continuing tendency toward FM tuning, there are still a number of
people who prefer the AM sound. The applicant added that, if this
application is approved, and AM continues to lose audience to
FM, "...perhaps early in the twenty-first Century we will be asking
to sign-off the AM, and go to full-power FM."
The Commission is satisfied that there a number of factors, the
cumulative presence of which effectively serve to remove concerns
regarding approval of the proposal to establish an FM transmitter of
CFRY. Specifically, the Commission notes that CFRY is currently a
stand-alone AM station, and is the sole radio station serving the
Portage La Prairie market. As such, it is the only station that
relies on the radio advertising potential of that market for a
significant portion of its revenues. Moreover, while the technical
parameters of the proposed FM transmitter are such that the
applicant's potential audience will increase slightly, principally
during night-time hours, the FM signal will not be strong enough to
reach a significant number of listeners in markets served by other
stations.
Further, the Commission notes that, in the case of Portage La
Prairie, there are two FM frequency allotments that will remain
available for use following this approval, including one Class C
frequency. Given the depressed economic condition of the radio
broadcasting industry, it is doubtful that there will be interest in
making use of either of those frequencies for a new FM station at
Portage La Prairie for some time. The Commission considers that given
these factors, it is very unlikely that a shortage of FM frequencies
will develop in Portage La Prairie in the foreseeable future. Thus,
the application does not raise the serious concerns that would arise
in other, more populated regions of Canada, where there is a shortage
of available FM frequencies.
In resolving, by majority decision, to allow creation of this
precedent, the Commission has been persuaded by the unique
circumstances present in the Portage La Prairie market, and by the
evidence that this exception to Commission policy will have no
immediate or long term negative impact on other broadcasters or other
markets. The Commission notes in this regard that there were no
opposing interventions filed with respect to this application. In
fact, the only intervention submitted was by Westcom Radio Group
Ltd., licensee of CJOB and CJKR-FM Winnipeg. It is the intervener's
own conclusion, like the Commission's, that approval "...will not
interfere in any way with audience or revenue potential for the
Winnipeg stations."
In light of the foregoing, the Commission is satisfied that Portage-
Delta should be given the opportunity to implement the proposed FM
transmitter, a measure the applicant believes will improve its
financial outlook and enable CFRY to provide a continuing service to
listeners in the Portage La Prairie area.
Allan J. Darling
Secretary General