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 A Discussion Paper on Digital Radio Broadcasting in Australia

Ownership and control

	Limits on services
	Limits on multiplexes

Current legislation limits the number of commercial radio broadcasting licences a person is able to control to a maximum of two in any one licence area. Control of commercial radio and television, and commercial radio and newspapers by the same person, in the same licence area, is prohibited. These restrictions are directed at limiting the influence of individual licensees in order to increase diversity of opinion.

A number of factors may have a bearing on whether the existing ownership and control restrictions should be varied with DRB.

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Limits on services
If existing radio broadcasting licensees each provided one high quality digital signal and no new commercial licences were issued, the balance of the current ownership and control regulation would not be changed. DRB has the potential to carry a greater number of services than analog technology. This means that the influence of each individual broadcaster might be less than with analog services. DRB technology enables one high quality signal to be subdivided into several lesser quality signals. A licensee, choosing to broadcast several lesser quality signals (perhaps in a 'talk' format) rather than one high quality signal, would effectively have control of more than two services in the same licence area.

DRB also allows broadcasters to investigate different coverage patterns. The costs of dramatically increasing coverage areas via satellite delivery or establishing single frequency networks may mean most existing commercial broadcasters would not seek to expand their present licence areas. In this case, the current limitations on control of services in any one area may not need to be changed.

Comment is invited on whether the ownership and control limitations related to commercial radio broadcasting should be changed with the introduction of DRB.

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Limits on multiplexes
As outlined above, DRB permits the separation of the provision of content and carriage, with the possibility of multiplex operators managing transmitters. Therefore, ownership and control issues need to be considered in relation to multiplex operators.

Multiplex operators could be regarded simply as infrastructure providers and managers. The issue is whether there should be a limit on the number of multiplexes or transmitters a person can own or control. In order to ensure competitive costing and innovation in the supply of multiplex facilities to programmers, it would seem desirable to avoid any entity becoming a monopoly supplier of such facilities, especially as the number of city-wide multiplexes in any area is unlikely to be more than about five to eight.

However, excessive restriction of the number of facilities an entity can own could reduce opportunities for economies of scale in multiplex management and deter some potential suppliers from becoming involved in multiplexing. There could be specific ownership and control limits or it may be adequate to rely upon general competition law.

Generally, broadcasters believe that the control of services should rest with them not the owner or operator of a multiplex - as outlined above in the combined licensing approach. As outlined previously, it is feasible for access to spectrum to remain with the broadcaster and the hardware (multiplex/transmitter) needs no more than a transmitter licence for its operation. Commercial broadcasters, therefore, conclude this approach would seem to overcome any consideration of ownership and control for these entities.

Comment is invited on whether ownership and control limitations related to commercial radio broadcasting should be imposed upon multiplex operators, and if so what form these limits should take.

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• Document ID: 9369 |
• Last modified: 6 February 2008, 2:25pm