BASED ON THE DOZENS of submissions from radio companies and other groups to the CRTC, the answer is a resounding… maybe.
Whether to bring the proprietary digital broadcasting format which has been deployed in most major markets Stateside to Canada was just one of many questions the CRTC put to the public about changes to radio policy. The questions were raised on Oct. 30, and the deadline for replies to comments was last Tuesday.
In general, broadcasters and interest groups supported the idea Canadian stations should be allowed to experiment with HD Radio, but most were against the idea that there should be any kind of mandatory conversion, similar to what was done for conventional television in 2011. HD Radio (it’s just digital broadcasting, but was named HD Radio in the U.S. for marketing purposes) is being considered by the CRTC as a new option for bringing AM and FM radio into the digital age. It's hoped that HD Radio (created by Columbia, MD firm Ibiquity and the agreed-upon de facto standard south of the border) will succeed where previous ideas failed. For example, L-Band Digital Audio Broadcasting (DAB) was tried here but fell flat for numerous reasons, not the least of which consumers would have had to buy new radios, no one attempted to market it to the masses and our closest neighbours went to HD Radio instead of DAB, which is the European standard..
In addition to providing better-quality sound, HD Radio allows for multiple audio channels within the same frequency, as well as additional data such as song titles, album art, and traffic, weather and gas station price information. For example, a classic rock station could multiplex its signal so that it can have a station for music from each of the 1960s, ’70s, ’80s and ’90s, plus a news and traffic feed.
But the Canadian Association of Broadcasters, which presented comments on behalf of its members, was very critical of HD Radio's practicality, pointing to its high cost to implement (in the tens or even hundreds of thousands of dollars) and the increased potential for interference with adjacent stations. IBiquity also weighed in, saying the price of installing its technology (which includes paying a licence fee to the company) may be expensive but "does not involve the multimillion dollar investments that were part of the digital television transition." It notes that more than 2,200 stations in the U.S. are using HD Radio.
The Consumer Electronics Marketers of Canada reports that 15% of all radio receivers in this country (except those installed in cars) are compatible with HD Radio technology, and that number is increasing. IBiquity has signed numerous deals with carmakers to get the technology installed at construction.
"Given the capital intensive requirements as well as the interference concerns, we are not proceeding any further with this initiative at this time." – Bell Media submission
Even with the freedom to use the technology, there doesn't seem to be much excitement from major broadcasters to use it so far. Like the complaints during the digital TV conversion, radio companies can not envision an increase in revenue to justify the outlay of millions in capex for new technology. Bell Media, which owns 107 radio stations, said it "has had some exploratory discussions regarding this technology, and more particularly, the supply of data services, such as weather and traffic. However, at this time, given the capital intensive requirements as well as the interference concerns, we are not proceeding any further with this initiative at this time."
The CBC wrote that it is too early to "develop an informed and coherent policy with respect to HD Radio in Canada" and that strict regulation would prevent innovation.
Whether HD Radio channels should be regulated was a divisive issue. The CAB was against the idea, but the Public Interest Advocacy Centre and other groups argued licensing and regulation was necessary to ensure that such channels add to the diversity of programming, and broadcast a minimum level of Canadian content or local programming.
DEALING WITH NEW STATION APPLICATIONS
Among the other issues the Commission asked about were how to deal with new applications for radio stations, particularly in small markets. Most interveners agreed such applications should be dealt with in the same way as applications in large markets, by issuing a call for competing applications where the CRTC determines that the market can support a new station. One point of contention, particularly among smaller broadcasters, concerned the exceptions to the issuing of a call, in cases where the proposed station has "very little or no commercial potential or impact, including some applications for low-power stations" or provides "the first commercial service in a market."
Leonard Lombardi, president of CHIN Radio-TV International, and writing on behalf of the Canadian Association of Ethnic Broadcasters, worried that low-power ethnic stations might have little commercial impact to the overall market, but would have a much larger impact to existing ethnic stations. "Low power ethnic stations should not be exempted," he wrote.
"Some radio chains have been granted licenses for ‘local’ stations in small markets while only committing to a single on-air morning newsperson, for instance, without a single program announcer at the station." – Brian Perkin, Perth FM
Brian Perkin, president of Perth FM Radio (owners of Lake 88.1 in Perth, Ont.), complained that "some radio chains have been granted licenses for ‘local’ stations in small markets while only committing to a single on-air morning newsperson, for instance, without a single program announcer at the station." He said such applications "make a mockery of ‘first commercial service’ exceptionality."
Groupe Radio Simard, which operates seven stations in Quebec's Bas St-Laurent region, said the CRTC should evaluate other electronic media in a region, not just radio stations, when deciding to award licenses. It points to a case where it opened a radio station in Rimouski, and a year later a television station was allowed to solicit local advertising. That put additional pressure on the already media-heavy small town, the group wrote.
OTHER ISSUES
The CRTC asked how it should deal with stations not complying with their licenses, suggesting new measures such as increasing their Canadian Content Development contributions. Most groups said the existing measures are appropriate. The CAB opposed what it considered a de facto fine, producing a legal opinion saying that the CRTC does not have the power to level such fines against broadcasters.
Most broadcasters said the big problem is that compliance is not monitored continuously, and issues are only brought up when licences are renewed, as much as seven years after the fact. They suggested the Commission more closely monitor stations, which they felt would prevent non-compliance, which is usually unintentional.
Other suggestions for changes to radio regulations brought up in public comments:
– The Forum for Research and Policy in Communications suggested that Canadian content levels for music be increased from 35% to 40%.
– The FRPC also said the CRTC should prohibit radio stations from simulcasting TV programming, pointing to examples such as CFRA in Ottawa, which simulcasts the local CTV newscast at 6 and 11 p.m.
– A few interveners suggested reallocating the space just below the FM band at 76-88 MHz, which is currently given to TV channels 5 and 6, to expand the FM band by 60% to solve congestion problems.
– ADISQ, the Quebec music industry group, complained that French-language music stations in Quebec are continuing to abusively use montages to skirt song quotas, and fall far below the required 65% of French music. The CAB called the statements "reckless allegations" and said ADISQ was trying to reargue a matter that was already dealt with by the commission.
– The CAB called for changes to the CRTC's Common Ownership Policy, which would allow groups with two FM stations and one AM station in a market to move that AM station to FM. This was strongly opposed by PIAC and other groups, but it’s something the industry has supported for some time.
– The CAB also asked that a long-time ban on simulcasting AM content on FM stations be lifted, saying it is "out of date, passed in another era when AM was the dominant medium."
– The Ontario Association of Broadcasters suggested a complete moratorium on the licensing of new radio stations, to protect the financial viability of existing ones. The CAB said it did not agree with such a drastic measure.
