OTTAWA – In opposing a recent application by a low-power FM station in B.C. to relocate its transmitter, the Canadian Association of Broadcasters asked the CRTC to take a close look at such licensees and what they’re doing in their markets.
CKFU-FM of Fort St-John, B.C. (Moose FM), applied to the CRTC for permission to change the authorized contours by increasing the antenna height and by relocating the transmitter, a non-directional antenna\antenna height of 45 meters). It wants to move the antenna to a new site to allow for generator backup to power the transmitter if hydro power fails.
"Since LPFM transmitters do not draw much power, the CAB does not understand what prevents the licensee from installing any sort of emergency power backup at their existing transmitter site. The CAB is therefore of the view that the licensee’s real motivation is simply to move the antenna to a more favourable site that has better coverage of the area CKFU-FM is licensed to serve," says the CAB’s submission on the matter.
"For this reason, the CAB’s intention with this intervention is to raise the Commission’s awareness on the impact of LPFM services, such as CKFU FM, on incumbent private radio stations."
The CAB noted in its letter, authored by radio vice-president Pierre-Louis Smith, that CKFU’s revenue projections are rather high, which, if true, runs contrary to the Commission’s policy of ensuring the new low-power entrants do not negatively impact existing commercial radio stations.
"(T)he licensee provided its revenue projections for the next five years which it forecasts to be between $1 million in year 1 and $1.4 million in year 5 from local advertising derived from the Fort St. John market. Further, by its own admission the applicant hopes that the approval of its application ‘will help to maintain our current revenues’, which would indicate that CKFU-FM local revenues are already above the million dollar threshold," says the CAB submission.
"The CAB submits that for a market with a population of less than 25,000 which is already served by two other commercial radio stations, these revenue forecasts appear quite large and could hardly be based on incremental local advertising revenue alone. In fact, it is quite possible that the station may be grabbing between a 33 – 50 % of the Fort St. John local advertising pie. Which begs the question: what does the Commission deem to be undue negative impact of LPFM stations on incumbent commercial full power local stations?"
The CAB also noted that CKFU is three months overdue in filing its 2005 broadcast year financial report with the Commission and therefore, "the Commission cannot adequately assess what impact CKFU-FM’s application would have in the Fort St. John’s radio market.
"As the CAB has stated time and again, while the policy framework currently in place for low power radio places a priority on the principle of complementary services, the reality is that low power radio often represents another layer of competition for private radio broadcasters. The impact of low power FM in small markets can be severe, as frequencies are less scarce and applications are more likely to offer commercial competition due to extensive coverage area despite their low effective radiated power. Hence, our concern about applicants potentially using low power radio as an opportunity to enter the broadcasting system ‘through the back door’, with few of the regulatory obligations carried by private commercial radio operators."
