Citing adverse economic conditions, CTV has withdrawn its application for proposed TV licences to serve the Toronto and Kitchener-Waterloo regions of southern Ontario.

In a letter filed with the CRTC Nov. 14 and obtained by Playback, CTV executive VP Alain Gourd says key factors for the network’s withdrawal include an unstable broadcast landscape due to the launch of new digitals and the impact of an economic slowdown on ad revenue forecasts.

‘For the same reason, our fundamental concern with the licencing of any new conventional television station in Toronto and Kitchener has increased significantly. The markets in Toronto and Kitchener cannot sustain a new conventional service without severe impact on existing services,’ Gourd says. CTV already operates affiliates in both cities.

CRTC hearings are set to begin Dec. 3 for broadcasters looking to set up shop in the Toronto, Hamilton and Kitchener areas, although the commission could decide not to grant any licences, deeming the region well served by the status quo.

CTV’s withdrawal leaves five suitors – Torstar Corp., Global Television, Alliance Atlantis Communications, Rogers Communications and Craig Broadcast Systems.

As expected, an intervention was filed by CHUM Television of Toronto claiming that any new local station would adversely affect other independents already operating in the Southern Ontario region. CHUM stations in the region include Citytv in Toronto and CFPL in London, Ont.

The hearings were triggered by a Torstar initiative last spring to gain three licences in Southern Ontario for its proposed Hometown Television service.

Some industry observers see Torstar’s bid to introduce a broadcast platform as a means to rectify criticism that it does not have a convergence plan.

As is customary, the CRTC responded by putting out a call for applications and began looking at proposals in August.

Proposals include:

* Alliance Atlantis intends to air a minimum of 41 hours of local programming per week through a station in Toronto, with rebroadcasting transmitters in Hamilton and London/Kitchener, and establish five news bureaus across the region.

* Rogers, through its CFMT-TV station and operating as CFMT TOO in Toronto, would focus 70% of its programming on ethnic communities, particularly on those of Pan-Asian and African origins.

* Craig proposes to broadcast a minimum of 14 hours of local English-language multicultural programming per week through a station in Toronto with a transmitter in Hamilton.

* Global’s application calls for an all-Canadian program lineup with a minimum of 15 hours per week of a local nature through stations in Toronto, Hamilton and Kitchener.

* Torstar proposes to air at least 80% Canadian content and a minimum of 32 hours per week of local programming through stations in Toronto, Hamilton and Kitchener. *