17 July 2006
On 13 July 2006 the Minister for Communications, Information Technology and the Arts announced that Cabinet had backed her plans for reform of the media industry.
The changes include removal of the current foreign and cross-media ownership restrictions, the allocation of two additional channels of spectrum within the broadcasting services band for the delivery of digital content and some limited relaxation of the restrictions on multi-channelling by free to air television broadcasters.
It is expected that legislation will be introduced reasonably promptly when Parliament resumes in August.
There are, however, a number of keys aspects to the proposed changes that have not yet been determined.
What's old
The reform package largely follows the proposed reforms outlined by the Minister in the Discussion Paper released on 14 March 2006 (Click here for analysis of the Discussion Paper).
What's new
The package announced on 13 July 2006 did include some proposals not canvassed in the previous Discussion Paper. The new elements to the package include the following changes:
What's yet to be determined
One of the primary aspects of the policy (and one of the most controversial for existing media proprietors) is the allocation of the two unallocated channels in the broadcasting services band for additional digital services. This remains subject to further consultation and no formal decision has yet been made in relation to the services that may be offered over this spectrum, the specific regulatory requirements that will be applied to licensees, how the licences will be allocated and who will be prohibited from acquiring the new licences. The structure of this regime is to be determined in 2006 and implemented in 2007 in parallel with the removal of the cross and foreign ownership rules.
In addition, the impact of the proposed "use it or lose it" regime for anti-siphoning will largely be determined by how "use" of rights by free-to-air broadcasters is defined.
Timing
The Minister intends to introduce and pass legislation before the end of 2006. Many factors will affect the precise timing, including other Government legislative priorities. It is likely that the Government will introduce the legislation fairly promptly but, even so, many of the proposed changes will not take place immediately.
Here is an indicative timeline of the significant events in the proposed media reform package, including announced dates, anticipated timing of further changes and when further details will be announced:
| As soon as possible upon the passage of legislation
| |
| ABC and SBS restrictions lifted | Existing genre restrictions on ABC and SBS digital TV services to be lifted. |
| ACMA powers strengthened | ACMA to be given a range of new enforcement powers including ability to impose civil penalties, obtain injunctions, accept enforceable undertakings and issue infringement notices. No firm date set - expected to take effect on the passage of legislation. |
| Late 2006 | |
| Digital Action Plan | Government to release "Digital Action Plan". Plan will consider the requirements to drive digital take-up and whether a dedicated new body is necessary to achieve the switchover. |
| Further announcements | Allocation of current "spare" spectrum and permitted uses Further consultation and announcements in relation to the allocation of current spare spectrum including the process for the allocation or auction of digital channels and the conditions to be attached to the licences (including permitted uses). Anti-siphoning Further consultation and announcements in relation to the new "use it or lose it" mechanism to be introduced into the anti-siphoning regime. |
| 1 January 2007 | |
| Limited HDTV multichannelling | Requirement that HDTV services must be a simulcast of analogue and SDTV to be removed. Free to air broadcasters to be permitted to run one HDTV multichannel. During the simulcast period, free to air broadcasters will be prohibited from televising an event on the anti-siphoning list on any digital channel other than their main SDTV channel, unless the event has already been shown (or is simultaneously shown) on the main SDTV channel. |
| Anti-siphoning | Anti-siphoning list to include a "use it or lose it" mechanism to remove events from the list if they do not receive adequate free to air coverage. Details to be confirmed. |
| During 2007 | |
| Allocation of current "spare" spectrum | Two unassigned digital channels to be allocated throughout Australia for new digital services, such as mobile television or new in-home services. No timeframe set, but likely to occur during 2007. |
| Commercial television licences and broadcasting outside the BSB | The Minister will assess whether to allow new licences outside the BSB after the end of the moratorium on new licences on 31 December 2006. |
| Cross and foreign ownership reform | Cross and foreign ownership media reform to take effect on a date in 2007 to be determined. Commencement of these reforms appears to be linked to the conclusion of the licensing framework for licences for new digital services. Cross media ownership reform
Removal of current foreign ownership restrictions, although media will be retained as a "sensitive sector" under the Foreign Investment Policy and proposals will be subject to prior approval by the Treasurer. |
| Regional services protections | Government to legislate to further protect regional content and diversity. Reforms will coincide with the introduction of cross and foreign ownership reforms. Regional services protections
|
| 1 January 2009 | |
| Limited SDTV multichannelling | Commercial free to air broadcasters to be allowed to provide one SDTV multichannel. |
| 2009 | |
| Review of anti-siphoning | The ongoing rationale of the anti-siphoning scheme will be reviewed prior to the new list expiring on 31 December 2010. |
| 2010-2012 | |
| Digital Switchover | The digital switchover target will be reset to 2010 to 2012, acknowledging that there is insufficient digital take-up to meet the current date of 31 December 2008. |
| Full multichannelling | Full multichannelling to be allowed no later than the digital switchover date. |
