The broadcasting industry is regulated by the Canadian Radio-television and Telecommunications Commission (“CRTC”). The CRTC is the agency responsible for concluding on whether a new licence should be granted, to whom and whether the licence carries any conditions that must be adhered to by the broadcaster. Licences generally have seven year terms at the end of which, applications are made to renew the licences for an additional seven year term.

The regulatory environment is such that, depending on the size of a particular market, a broadcaster is subject to a maximum number of AM or FM licences. This serves to limit the number of competitors that can participate in a market, but it also limits the broadcaster’s ability to increase its total number of licences in any given locale.