Broadcasting Licences in Australia: an Overview Jason Ives Licensing Officer Community Allocations and Renewals ACMA International Training Program 6 September 2006 Canberra

Introduction The regulatory structure of broadcast licensing in Australia Broadcast licensing categories Regulation of broadcasting licences Questions

Broadcast Licensing: Regulatory Structure “Apparatus” licences are often required to transmit signals on the radiofrequency spectrum. Parts of the spectrum, designated as being within the “Broadcasting Services Band”, require an additional “broadcasting” licence. Broadcasting licences are allocated under the Broadcasting Services Act Broadcasting licences authorise the operation of broadcasting services and specify conditions under which that service can operate – eg, the type of content to be broadcast on a service.

Categories of broadcasting licences Under the Broadcasting Services Act, broadcasting services are divided into different categories of licence, including:  National broadcasting services (eg the ABC, SBS);  Commercial broadcasting services (eg Channel 9, 2GB);  Community broadcasting services (eg 2XX Canberra);  Subscription services (eg satellite or cable TV); and  Narrowcasting services. Note: these categories are technology neutral.

Categories of broadcasting licences National broadcasting services Government-owned services (ABC, SBS) Established to fulfill particular cultural functions. ABC: “to provide within Australia innovative and comprehensive broadcasting services of a high standard as part of the Australian broadcasting system consisting of national, commercial and public sectors” -ABC Charter SBS:“to provide multilingual and multicultural radio and television services that inform, educate and entertain all Australians and, in doing so, reflect Australia's multicultural society.” -SBS Charter

Categories of broadcasting licences Commercial broadcasting services Services which:  Are for-profit (ie “commercial”);  Usually funded through advertising revenue;  Provide programs of general appeal;  Free to air;  Can be sold for a profit; and  Usually allocated via a price-based auction. 52 commercial TV licences 274 commercial radio licences.

Categories of broadcasting licences Commercial broadcasting services Price paid for commercial radio licences: Date AllocatedLicence AreaLicenseePrice 20/06/2000SydneyNova 96.9 Pty Ltd$155 million 22/02/2001MelbourneNova 100 Pty Ltd$70 million 30/08/2001BrisbaneBrisbane FM Radio Pty Ltd$67 million 11/04/2002PerthDMG Radio (Perth) Pty Ltd$25 million 24/10/2002Gold CoastHot Tomato Australia Pty Ltd$26 million 18/12/2003AdelaideNova 91.9 Pty Ltd$24 million 17/06/2004SydneyDMG Radio (UK Radio 1) Pty Ltd$106 million 17/06/2004BrisbaneDMG Radio (UK Radio 2) Pty Ltd$80 million 07/10/2004MelbourneDMG Radio (UK Radio 3) Pty Ltd$52 million

Categories of broadcasting licences Community broadcasting services Services which are:  Provided for community purposes;  Not for profit;  Free to air; and  Allocated via a merit-based selection process. Community licences can be allocated for the “general” community, or for specific interests (ie Muslim, youth). 84 community TV licences 361 community radio licences

Distribution of Community Radio Licences – August 2005

Categories of broadcasting licences Community broadcasting services Merit-based allocation process. ACMA must have regard to:  the extent to which the proposed service would meet the existing and perceived future needs of the community within the licence area of the proposed licence;  the nature and diversity of the interests of that community;  the nature and diversity of other broadcasting services (including national broadcasting services) available within that licence area;  the capacity of the applicant to provide the proposed service;  the undesirability of one person being in a position to exercise control of more than one community broadcasting licence that is a broadcasting services bands licence in the same licence area; and  the undesirability of the Commonwealth, a State or a Territory or a political party being in a position to exercise control of a community broadcasting licence.

Categories of broadcasting licences Subscription broadcasting services Services which:  Provide programs for the general public; and  Are made available to the general public on payment of a subscription fee. Subscription services can be provided using any delivery system, (eg satellite, cable, MDS or other means). Subscription services are allocated on the basis of one service per licence, upon the payment of an administration fee. In practice, ACMA only issues subscription broadcasting licences for television services.

Categories of broadcasting licences Narrowcasting services Services whose reception is limited:  By being targeted to special interest groups (eg Italian speakers; country music lovers);  By being intended only for limited locations (eg sporting arenas);  By being provided during a limited period, or for a special event; or  Because they provide programs of a limited appeal; May either be available free to air (“open”), or by subscription. Are available on a “class” basis, rather than individually. Usually a radio service.

Regulating broadcasting licences Broadcast licences are regulated under the Broadcasting Services Act Licensees required to abide by:  Statutory licence conditions under the Act;  Industry Codes of Practice;  Other regulatory mechanisms (eg Community Licence renewals) National broadcasting services are regulated under separate Acts, eg:  Australian Broadcasting Corporation Act 1983 (ABC);  Special Broadcasting Service Act 1991 (SBS).

Licence conditions Statutory licence conditions vary between licence categories to reflect the different aims of type. There are also some common licence conditions. For example:  Prohibition on tobacco advertising;  Prohibition on the broadcast of X-rated (adult) material, or unmodified R-rated material;  Prohibition of the use of the service to commit an offense; and  Restrictions on the broadcast of political matter.

Broadcasting Codes of Practice Developed by peak industry bodies to reflect needs and concern of each category of service. Eg:  Commercial Radio and TV;  Community Radio and TV; etc Approved by ACMA. Updated every four years. Self regulated, but ultimately enforceable by ACMA.

Conclusion Broadcasting licences apply in addition to apparatus licences to broadcasting services. The Broadcasting Services Act 1992 specifies several categories of broadcasting service. Each category is intended to serve a different purpose, and is subject to a slightly different regulatory regime. Broadcasting Licences are regulated through a combination of licence conditions and Codes of Practice.