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A Discussion Paper on
Digital Radio Broadcasting in Australia

Licensing

	Licensing issues
	Licensing options

The current arrangements governing the provision of broadcasting services are contained in broadcasting, radiocommunications and telecommunications legislation, in particular: the Broadcasting Services Act; the Radiocommunications Act 1992 (Radiocommunications Act); and the Telecommunications Act 1991 (Telecommunications Act).

1. National radio broadcasting services do not require licences under the Broadcasting Services Act. Licences authorising operation of the radiocommunications transmitters to transmit national services may be issued under the Radiocommunications Act.
2. Commercial and community radio broadcasters require individual broadcasting licences allocated by the ABA under the Broadcasting Services Act to authorise the provision of radio programs. A companion, individual apparatus licence can be issued under the Radiocommunications Act to authorise the operation of the necessary radiocommunications devices to transmit the signal. (Broadcasters can operate equipment in accordance with a class licence under the Telecommunications Act, which authorises access to telecommunications carriage facilities.)
3. Subscription broadcasters, and subscription and open narrowcasters, operate radio services in accordance with the relevant class licence issued under the Broadcasting Services Act. An individual apparatus licence can be issued under the Radiocommunications Act to authorise the operation of the necessary radiocommunications devices to transmit the signal. (Narrowcasters can also operate in accordance with a class licence under the Telecommunications Act, which authorises access to telecommunications carriage facilities.)

Consideration needs to be given to whether the introduction of DRB technology would require changes to the current framework for authorising the provision of broadcasting services. Consistent with the objectives of the Broadcasting Services Act, licensing of DRB would, among other things, be directed at achieving diversity in content, plurality in ownership and control, and safeguarding community standards.

Digital broadcasting represents a fundamental shift from analog broadcasting. It involves the delivery of a variable number of digital bit streams that can be used not only for sound broadcasting but also for multi-media services. These bit streams are combined into a single digital stream for transmission on a particular frequency channel. The central feature of digital broadcasting is the multiplex (see Diagram 1).

Diagram 1: Digital Multiplex Operation

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Licensing issues
Digital technology raises issues with regard to licensing and regulation, in particular:

• one service, one licence;
• non-broadcasting uses of DRB;
• multiplex management; and
• spectrum and multiplex access.

Firstly, the nature of existing analog radio services has meant 'service' has traditionally been conceived as a single stream of programming which may have many elements (such as music, talk, news, sport and information). Digital technology, however, enables the number and nature of program streams at a particular point in time, for a given amount of capacity, to be dynamically reconfigured (for example, change from a single stereo music program in one time slot, to two mono sports programs in another). This has implications for the 'one licence, one service' basis currently used for licensing provision of broadcasting services.

A relatively large number of services could be provided via a single multiplex - perhaps five CD quality radio services, or a greater number of lesser quality services, along with still pictures, text, data - resulting in a mix of traditional and multimedia services, offered either free to air or as 'value added' subscription services.

Secondly, as DRB technology can be used to provide services traditionally considered to be non-broadcasting - such as still pictures, text and data, and communications services such as paging - specific attention may need to be given to the definition of broadcasting service and the concept of 'service'. Under the current arrangements, these non-broadcasting type services may not need to be licensed under the Broadcasting Services Act.

Alternatively, if necessary, the definition of broadcasting services could be changed to accommodate these services within the established licensing framework. Broadcasters argue that 'broadcasting service' must be defined as comprising the whole of the content encompassed in the digital bit rate assigned to the service.

The definition of a 'service' in the Broadcasting Services Act may well be sufficiently broad to accommodate a single licensed DRB digital stream which is a single service comprising a bundle of related program and other material whose composition varies with time.

A third set of issues relates to multiplex management. There are a number of possible organisational structures for multiplex and transmission management to enable the dynamic characteristics of the technology to be fully realised. These include:

• joint operating companies formed by content providers to share multiplex and transmission facilities;
• individual content providers owning and operating their own multiplex and leasing spare transmission capacity to other content providers; and
• independent companies owning multiplexes and providing transmission capacity to content providers on a contractual basis (such as telecommunications carriers or radiocommunications systems management companies).

A multiplex manager could be involved only in the carriage of other people's services (for example, an independent third party) or may also be a content provider (such as a broadcaster).

Finally, there is the issue of access, including:

• whether provision should be made for specific multiplex capacity for broadcasting and non-broadcasting services;
• whether there should be specific multiplex capacity for national, commercial, community and narrowcasting use;
• whether there should be specific multiplex capacity for each content provider - for example, a mandated access of a minimum amount of 256 kbps (which would allow the content provider to provide one CD quality audio service or a number of lesser quality services, or to provide a more robust high quality signal that might provide better coverage throughout the coverage area and into the fringe areas with less problems of signal drop-out);
• whether access should be regulated where there is third party operation (where another party operates the multiplex or undertakes transmission on behalf of the person initially authorised to undertake these functions); and
• whether there should be other access arrangements for content providers to multiplex capacity, for example the lease of capacity and regulated rights of access.

There are broader issues relating to access, particularly the relationship between the Australian Competition and Consumer Commission (ACCC), and the post 1997 telecommunications legislation. Further information can be obtained by reference to Discussion Paper Post 1997 Telecommunications Legislation.

A number of other licensing related issues are identified elsewhere in this paper:

• geographic coverage or service areas (see the section on Coverage); and
• ownership and control restrictions (see the section on Ownership and Control).

Comment is invited on these and any other licensing issues related to DRB.

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Licensing options
Consideration needs to be given to the development of a licensing framework for multiplex and transmission operation, and provision of service content within a digital environment. Two options - combined licensing and separate licensing - are discussed.

Combined licensing

One option is for a single digital broadcasting licence allocated under the Broadcasting Services Act to authorise both the provision of content and access to a defined multiplex operation. A second licence would be issued under the Radiocommunications Act authorising transmission by means of the radiofrequency spectrum.

This option would allow content providers to retain control over transmission of their programming and would allow existing broadcasters (where provided with automatic access to DRB spectrum - see the section Service Providers) to duplicate existing analog services, as well as provide new services.

Broadcasters would need to arrange and coordinate their multiplex operation.

This approach would effectively mirror the way in which terrestrial radio broadcasting services are provided now.

Separate licensing

A second option is for a broadcasting licence allocated under the Broadcasting Services Act to cover content provision only. The multiplex/transmission operation, encompassing access to the radiofrequency spectrum, would be separately licensed.

This approach provides for the creation of a specialist multiplex operator, as a discrete function separate from that of content provider. It also recognises that some content providers may not wish to be involved in multiplex operation or be responsible for transmission.

A multiplex operator would need to be recognised and regulated as a technical facilitator or infrastructure provider, with no control over, or responsibility for, the nature or content of the programs transmitted on the behalf of content providers - other than as required to satisfy the technical and general conditions of operation.

Individual content providers could combine to become a multiplex operator - for example by means of partnership, contractual or corporate relationships - thus maintaining control over signal transmission.

Content providers not also undertaking multiplex and transmission operations may not need to be regulated individually. This could be achieved by imposing licence area, and ownership and control restrictions on multiplex operators, and using a class licensing regime to apply general licensing obligations (such as content controls) to content providers.

Comment is invited on an appropriate licensing framework for DRB which allows for different types of regulation for different types of services.

Class licenses are a general type of licence which authorise certain kinds of services. They are not issued to individuals.

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• Document ID: 9365 |
• Last modified: 6 February 2008, 2:25pm