Public Notice CRTC 2001-10

Ottawa, 31 January 2001

Report to the Governor in Council on measures to ensure that the

residents of the Greater Toronto Area receive a range of radio

services reflective of the diversity of their languages and cultures

Summary

In this public notice the Commission reports to the Governor in Council on measures to

ensure that the residents of the Greater Toronto Area (GTA) receive a range of radio

services reflective of the diversity of their languages and cultures, as requested in Order

in Council P.C. 2000-1464 dated 13 September 2000.

Taking into account the written comments filed as part of this proceeding and its own

independent research, the Commission has reached the following conclusions:

The GTA has a diverse multicultural, multiracial and multilingual population, one that

is rapidly increasing in size and proportion.

There is a strong demand for new radio services to serve the ethnic population in the

GTA. While other technical options may exist to increase the availability of ethnic

programming, the majority of the parties submitting comments consider that the

licensing of new over-the-air AM and/or FM ethnic radio services is essential to

properly serve Toronto's diverse population. Digital radio is seen as a possible solution

in the longer term, but at the present time it does not represent a viable means of

serving the many linguistic and cultural communities in the GTA.

Opportunities for the use of new AM or FM frequencies to provide additional radio

services in the GTA are very limited under existing Industry Canada technical rules for

spectrum usage. Information provided as part of this proceeding suggests, however,

that modern receiver design could make it worthwhile to review certain Industry

Canada protection requirements concerning the use of AM and/or FM frequencies. The

Commission is of the view that these matters should be investigated further to

exhaust all possible options for making additional AM or FM frequencies available in

the GTA.

The Commission's existing policy and licensing framework does not present a

significant barrier to the introduction of new radio services in the GTA, provided that

suitable frequencies are available. In recognition of the needs of the ethnic population

in the GTA, however, if and when suitable AM and/or FM frequencies can be identified,

the Commission intends to give priority to the licensing of programming services that

clearly reflect the diversity of languages as well as the multicultural and multi-ethnic

reality of the GTA.

Other possibilities that could be considered for increasing the diversity of radio

services include the development of new subsidiary communications multiplex

operation (SCMO) services, closed circuit audio programming services and Internet-

based audio services. Some or all of these could also be distributed by broadcasting

distribution undertakings serving the GTA.

The Commission considers it appropriate to review certain other policy requirements

to promote the development and distribution of new audio programming services in

the GTA by other technical means.

In light of the above conclusions, the Commission makes the following recommendations

to the Government of Canada:

Recommendation 1: The Commission invites Industry Canada to review its

protection requirements for analog radio services on an expedited basis and to

consider the possibility of increasing the number of usable AM and FM

frequencies in the GTA.

Recommendation 2: The Commission invites Industry Canada to review its

allocation of digital channels for radio broadcasting and to consider how

many new DRB radio services could be accommodated over and above the

requirements of existing licensees.

Recommendation 3: The Commission invites Industry Canada to examine and

consider any other practical means to ensure that sufficient spectrum space is

available for radio broadcasting in the GTA.

Furthermore, the Commission intends to implement the following specific measures with

respect to the provision of new audio programming services reflective of the diversity of

languages and cultures of residents of the GTA:

In the near future, if the Commission receives an application for the use of an

AM or FM frequency to serve the GTA, it will issue a call for other radio

services using that frequency that clearly reflect the diversity of languages as

well as the multicultural and multi-ethnic reality of the GTA.

In the event that Industry Canada makes available additional regular or low-

power AM and/or FM frequencies to serve the GTA, the Commission will, in the

first instance, in response to an application for any such frequency, issue a

call for radio services that clearly reflect the diversity of languages as well as

the multicultural and multi-ethnic reality of the GTA.

As set out in Public Notice 1995-184, the Commission is prepared to receive

applications for new transitional digital radio undertakings. The Commission

will assess any such applications on a case-by-case basis.

The Commission will consider the appropriateness of amendments to

the Broadcasting Distribution Regulations to permit BDUs to distribute any

Canadian ethnic audio programming service on a digital tier without prior

application. The Commission will initiate, in the near future, a public process

to solicit comments on such amendments.

The Commission will initiate, in the near future, a public process to develop an

appropriate licensing framework, or exemption criteria, for special audio

programming services (services delivered by BDUs but not licensed as over-

the-air services). Such services could include ethnic services as well as other

specialized services such as official minority-language, religious, gay/lesbian

or children's.

The Commission, as part of its upcoming internal review of Canadian Talent

Development (CTD) expenditures, will explore incentives such as permitting

ethnic radio licensees to count investment in ethnic Internet radio as part of

their CTD contribution.

Table of Contents Paragraph

1.0 Introduction 1

2.0 Summary of written comments 5

2.1 Overview 5

2.2 Demographic trends and availability of radio services in the GTA 11

2.3 Technical means to increase the number of radio services in the GTA 14

2.4 Impact of regulatory policies on new entrants to the GTA 20

2.5 Conclusions 22

3.0 Demographic composition of the GTA 25

3.1 Introduction 25

3.2 GTA population by ethnic origin 30

3.3 GTA population by mother tongue 33

3.4 Conclusions 34

4.0 Existing radio services in the GTA 36

4.1 Overview 36

4.2 Ethnic radio stations 39

4.3 Ethnic SCMO services 41

4.4 Ethnic closed circuit audio programming 45

4.5 Other sources of ethnic radio programming 46

4.6 Conclusions 48

5.0 Opportunities for new audio services in the GTA 49

5.1 Introduction 49

5.2 Written comments 52

5.3 New over-the-air radio services 55

5.4 Other options 62

5.5 Conclusions 72

6.0 Existing policy framework for the licensing of new radio

services

80

6.1 Introduction 80

6.2 Commercial radio policy 86

6.3 Ethnic broadcasting policy 90

6.4 SCMO policy 97

6.5 Campus and community radio policies 99

6.6 Low power radio broadcasting 102

6.7 Digital radio policy 107

6.8 Licensing procedures and criteria for considering new radio applications 109

6.9 Conclusions 113

7.0 Recommendations and specific measures to be undertaken 115

Appendix 1: List of parties submitting written comments

Appendix 2: Groups served by ethnic radio stations in the GTA

Introduction

1. In Order in Council P.C. 2000-1464 dated 13 September 2000 (the Order) the

Governor in Council requested that the Commission seek public comments and report

by 31 January 2001 on:

a) the trends of the demographic composition of the Greater Toronto Area (the GTA), the

availability of radio services and the nature of the programming serving this population;

b) the technical means in both analog and digital formats that might be available to

increase the number and diversity of radio services in the GTA; and

c) the impact of regulatory policies and licensing criteria on potential new entrants to the

GTA radio market;

with a view to proposing measures to ensure that the residents of the GTA receive a

range of radio services reflective of the diversity of their languages and cultures.

2. In response to the Order, the Commission issued Public Notice CRTC 2000-144 on 20

October 2000 (PN 2000-144), inviting written comments from the public on the

matters raised in the Order. Comments were to be submitted on or before 17

November 2000. A few comments filed after the deadline were also accepted by the

Commission.

3. The Commission received thirty-six written comments, all of which have been placed

on the public file of this proceeding. The written comments have been fully considered

by the Commission in the preparation of its report. A complete list of the parties

submitting written comments is attached as Appendix 1 to this notice.

4. To provide further assistance in the preparation of its report to the Governor in

Council, the Commission engaged Imagineering Limited to provide an engineering

report on the technical means, in both analog and digital formats, that are or might be

available to increase the number and diversity of radio services in the GTA, in the AM,

FM and digital radio broadcasting (DRB) bands. The Imagineering report was submitted

to the Commission on 24 November 2000 and has been placed on the public file for

review by interested parties.

2.0 Summary of written comments

2.1 Overview

5. Of the thirty-six written comments received in response to PN 2000-144,

approximately one-half were submitted by organizations and individuals representing

many different ethnic communities in the GTA. The remaining interveners represented

licensees, industry associations and individuals from other community groups.

6. As demonstrated in the following excerpts from their written submissions, many

individuals and organizations argue passionately for new ethnic radio services that

reflect the diversity of languages and the multicultural, multi-ethnic reality of the GTA.

A Latvian Canadian, a Ghanaian Canadian, a Somali Canadian, an Armenian Canadian

or a Hungarian Canadian, to name just a few, yearns to hear the sounds of his or her

language, their music and stories on the radio. A Pakistani, or an Indian or Bangladeshi

are hungry for programming in the lingua franca of South Asia, Hindustani. (East

Indian Professional Residents of Canada, Comment #36)

Toronto with its 60% plus of ethnic penetration demands a diverse TV and radio

calendar. Today we have increasing new audiences of second and third generation

ethnics that have grown up in our great multicultural fibre. Canada needs programs

that encompass the bridging from first to second and third generations and to reflect

the multicultural diversity existing here today. (Magda de la Torre, Comment #24)

.Southern Ontario, particularly Toronto, has been under the grip of a remarkable

cultural influx that has changed the face of Toronto.While we celebrate the rich cultural

mosaic that Toronto represents today, it is rather sad that we have to struggle to make

some of our own understand the new Toronto. The role of the CRTC has a long term

impact on communities affected by its decisions. (Consulate General of Malta, Comment

#10)

7. These parties are of the view that existing broadcasting services, including mainstream

and ethnic radio broadcasters and ethnic audio services delivered by other means, do

not adequately serve the diverse multiracial and multicultural population of the GTA.

They urge the Commission to take immediate action to licence new radio services to

better serve the various ethnic groups they represent.

.Toronto, as you're no doubt aware, veritably teems with ethnic diversity. So many of the

residents of this city and surrounding areas are either immigrants or children or

grandchildren of immigrants. These groups have inadequate radio service, and I'd love

to see that change. (Lisa Warner, Comment #30)

Although there are three existing radio stations within the Tamil community, they are

all requiring special radios to listen (SCMO). Even those ones do not offer clear

reception. The stations are also not available beyond a certain area. These factors

essentially make them less efficient in serving community needs. In addition it is also

important to note that the existing radio stations (FM or AM) do not reflect the city of

Toronto and its multi-cultural make-up and their specific needs.(Canadian Tamil Youth

Development Center, Comment #27)

.Indo-Canada Chamber of Commerce once again stresses on the need for an early

establishment of an ethnic radio station to serve the South Asian community and a

number of smaller communities, that remain without adequate radio service. (Indo-

Canada Chamber of Commerce, Comment #28)

8. In this proceeding, as well as in the responses relating to Order in Council PC 2000-

511 on French-language broadcasting services to minority communities, the

Commission was reminded of the importance of community radio for Francophone

minorities. In this regard, the Commission notes that Toronto, Canada's largest

metropolitan area, is currently not served by French-language community radio.

9. Some parties submitted that there is also an urgent need to introduce radio services

that would serve other groups and interests in the GTA. These included Christian

broadcasting services and programming directed to gays and lesbians.

10. With regard to the specific matters on which the Commission sought comment in PN

2000-144, the views of those parties who directly addressed these matters are

summarized below.

2.2 Demographic trends and availability of radio services in the GTA

11. Most comments recognized the significant changes in the demographic composition of

Toronto over the past thirty or forty years. They noted that visible minorities now

comprise over one-half of the population of the GTA and, when persons of all origins

are included, the ethnic population of the GTA is an even higher percentage. With

70,000 new immigrants each year, the size of the ethnic population will continue to

rise. Over 100 languages are spoken in Toronto, and over 40% of new immigrants

speak a language other than English or French on arrival. If current growth rates

continue, Toronto's ethnic population will grow by some 2,000,000 persons over the

next thirty years.

12. Several parties noted that there are six existing ethnic radio stations serving close to

50 different groups, consistent with the Commission's broad service requirement under

its ethnic broadcasting policy. In addition, several subsidiary communications multiplex

operations (SCMO) services, associated with existing FM stations, provide

programming to specific ethnic groups.

13. Notwithstanding the ethnic programming currently available in the GTA, most parties,

other than existing broadcasters, considered that ethnic populations remain

underserved, or not served at all, by existing radio and SCMO services in the GTA.

2.3 Technical means to increase the number of radio services in the

GTA

14. Those parties who commented on technical issues are of the view that there are few, if

any, suitable AM or FM frequencies available that would be capable of providing new

radio services at reasonable cost and with adequate geographic coverage. Some

parties noted the possibility of low power drop-ins, particularly in the FM band, but

recognized that such low-power stations provide limited coverage.

15. It was suggested by some parties that a review and possible revision of certain

Industry Canada technical requirements governing the establishment of new radio

stations might provide some opportunity for finding new frequencies in the otherwise

congested AM and FM bands to serve the GTA.

16. Concerning digital radio broadcasting (DRB), a few parties noted that there is sufficient

digital spectrum available to accommodate new radio services, in addition to meeting

the requirements of existing broadcasters. As a general rule, however, there was a

consensus that DRB would not be an economically viable solution for a new entrant

until such time as digital receivers achieve significant market penetration.

17. Some parties raised the possibility of establishing new SCMO services to serve ethnic

groups. It was recognized, however, that SCMO services have significant drawbacks,

including the cost of acquiring special receivers, limited geographic coverage and the

inability to receive SCMO service in automobiles, where a significant portion of radio

listening occurs.

18. A few parties mentioned the possibility of establishing Internet-based radio services as

a source of ethnic entertainment and information. CHIN Radio-TV International

(Comment #23) proposed the establishment of regulatory incentives to encourage

ethnic radio broadcasters to invest in the development of ethnic Internet radio services

that reflect the cultural and linguistic diversity of smaller ethnocultural groups in the

GTA.

19. Finally, it was suggested by Rogers Cable Inc. (Comment #17) that cable systems

should be permitted to distribute any available ethnic service to their digital customers,

to increase the availability of ethnic programming.

2.4 Impact of regulatory policies on new entrants to the GTA

20. Interveners generally did not raise concerns about the Commission's policies. Ethnic

broadcasters endorsed the existing ethnic broadcasting policy in particular, especially

the requirement that ethnic broadcasters serve a number of different groups in their

individual markets. In their view, this "broad service" requirement has been effective in

ensuring the provision of at least some programming to many different groups. They

urged the Commission to assess any future applications for new radio services in

accordance with existing criteria.

21. Many of the parties representing various ethnic groups took issue with previous

licensing decisions of the Commission. In their view, the Commission should have

licensed more ethnic broadcasting services instead of mainstream radio stations. They

called on the Commission to act as soon as possible to address the current imbalance

in the range of radio services currently available in the GTA.

2.5 Conclusions

22. The written comments have demonstrated a strong demand for new radio services to

serve the ethnic population in the GTA. While other technical options may exist to

increase the availability of ethnic programming, it is clear that the licensing of new

over-the-air AM and/or FM ethnic radio services is seen as essential by the majority of

the parties submitting comments. DRB is seen as a possible solution in the longer

term, but at the present time it does not represent a viable means of serving ethnic

communities in Toronto.

23. It is generally recognized that the scarcity of suitable AM and FM frequencies may limit

the Commission's ability to licence new services to better serve the multicultural

population of the GTA. The Commission notes with interest, however, those comments

suggesting that new AM or FM frequencies might be technically feasible in the GTA, if

Industry Canada revises certain of its technical requirements concerning the

establishment of new radio stations. This matter is addressed in more detail in Section

5.0 of this report.

24. Finally, the Commission has noted the views expressed by many parties that, should

new frequencies become available in the GTA, it should give priority to the licensing of

new radio services reflective of the diversity of languages and cultures of the GTA.

3.0 Demographic composition of the GTA

3.1 Introduction

25. For the purposes of this report, the GTA refers to the City of Toronto plus the

surrounding regions of Durham, York, Peel and Halton. The surrounding regions

comprise the following twenty-four municipalities: Ajax, Aurora, Brampton, Brock,

Burlington, Caledon, Clarington, East Gwillimbury, Georgina, Halton Hills, King

Township, Markham, Milton, Mississauga, Newmarket, Oakville, Oshawa, Pickering,

Richmond Hill, Scugog, Uxbridge, Whitby, Whitchurch-Stouffville and Vaughan.

26. The GTA is the largest metropolitan area in Canada. According to 1996 census data

compiled by Statistics Canada, the total population in the GTA in 1996 was about 4.6

million persons. Population projections prepared by the Ontario Ministry of Finance

estimated that the total population of the GTA in 2000 would be almost 5.2 million

persons.

27. In recent decades, the settlement patterns of immigrant groups in the GTA have

changed. Such groups are now scattered widely throughout the GTA, rather than

concentrated in traditional downtown neighbourhoods.

28. It is expected that the GTA will continue to experience rapid population growth over

the next several years. The Ontario Ministry of Finance projects that the GTA

population will be close to 7.5 million persons by 2028, an increase of some 44% over

the 2000 population.

29. Of particular significance is the increasingly diverse multicultural and multiracial

makeup of the GTA population.

3.2 GTA population by ethnic origin

30. In the 1996 Statistics Canada census, 47.9% of all residents of the GTA identified their

ethnic origin as being other than British, French or Aboriginal. If multiple responses are

also considered, a further 18.6% identified their ethnic origin, in part, as other than

British, French or Aboriginal. In total, therefore, about two-thirds (66.5%) of the GTA

population, or over 3 million persons, identified their ethnic origin as being, at least in

part, other than British, French or Aboriginal.

31. Table 1 provides a breakdown of the total GTA population by ethnic group in 1996,

taking into account both single and multiple responses, for those ethnic groups

exceeding 20,000 in population.

32. Between 1986 and 1996, the South Asian and Chinese communities were the fastest

growing ethnic groups in the GTA, each increasing in size by over 150% over that ten-

year period.