Explanatory Statement

Issued by the authority of the Australian Communications and Media Authority

BROADCASTING SERVICES (AMALGAMATED REMOTE TELEVISION LICENCE AREAS – REMOTE CENTRAL AND EASTERN AUSTRALIA TV1 AND REMOTE CENTRAL AND EASTERN AUSTRALIA TV2) DETERMINATION 2009

Broadcasting Services Act 1992

Background, purpose and legislative basis

This document provides an explanation of the Broadcasting Services (Amalgamated Remote Television Licence Areas – Remote Central and Eastern Australia TV1 and Remote Central and Eastern Australia TV2) Determination 2009 (the Determination), which has been made under subsection 38B(14) of the Broadcasting Services Act 1992 (the Act).

Section 38B of the Act permits the Australian Communications and Media Authority (ACMA) to allocate a third commercial television licence (a section 38B licence) in licence areas where only two commercial television broadcasting licences have been allocated. Under the section, existing commercial television broadcasting licensees in the licence area may apply for the section 38B licence either individually, through a competitive process, or together via a joint-venture company. The additional service provided under the section 38B licence may only be broadcast in digital mode.

In circumstances where either:

• more than 30% of the population of licence area served only by one commercial television broadcasting service (a single service licence area) overlaps with another single service licence area; or
• a specified single service licence area is entirely within another specified single service licence area;

(so that in either case two licensees effectively serve the region where the two licence areas overlap) subsection 38B(14) of the Act permits ACMA to determine that the two licence areas are to be treated as one for the purpose of section 38B of the Act.

Under subsection 38B(14A) of the Act, where one remote licence area is entirely within another remote licence area and ACMA has made a subsection 38B(14) determination in relation to the two licence areas, the amalgamated licence area for the purposes of section 38B is taken to be the smaller of the licence areas. Consequently, a section 38B licence can be allocated for the smaller licence area.

The Licence Area Plan – Remote Central and Eastern Australia Television (the RCEA LAP) determines the number and characteristics of broadcasting services for three commercial television licence areas:

●       Remote Central and Eastern Australia TV1 (RCEA TV1);

●       Remote Central and Eastern Australia TV2 (RCEA TV2);

●       Mt Isa TV1.

All relevant licence areas are remote licence areas in accordance with the Determination of Remote Licence areas made by the Australian Broadcasting Authority on 14 December 2000.

The RCEA TV1 licence area covers a large section of remote Australia including: much of the Northern Territory, South Australia and Queensland, excluding urban centres; and remote parts of New South Wales, Victoria and Tasmania.

The RCEA TV2 licence area encompasses the same area as the RCEA TV1 licence area, with the exception of the Mt Isa TV1 licence area. The Mt Isa TV1 licence area covers an area around the town of Mt Isa in Queensland.

The RCEA TV1 licence area entirely overlaps both the RCEA TV2 and Mt Isa TV1 licence areas. Each of the three licence areas is served by one commercial television broadcasting service. Consequently, although each licence area contains a single service, two commercial services are delivered throughout the geographical area covered by the RCEA LAP.

ACMA has made a determination under subsection 38B(14) to amalgamate the RCEA TV1 licence area with the RCEA TV2 licence area so that, for the purposes of section 38B, the RCEA TV2 licence area will be treated as a licence area with two commercial television broadcasting services. Following the commencement of the amalgamation, the two licensees effectively serving the RCEA TV2 licence area will be able to apply, separately or through a joint-venture company, for a digital-only licence under section 38B once ACMA has designated a time under subsection 38B (27).

Consultation

ACMA consulted with representatives from the incumbent commercial broadcasters that serve the relevant licence areas, Imparja Television Pty Ltd and Macquarie Southern Cross Media (Regional Television Pty Ltd).

No substantive issues have arisen from this consultation process.

Regulatory Impact

ACMA has undertaken a regulatory impact analysis process and considers that the Determination is likely to have no or low impact on business or the economy and is not anti-competitive. Consequently, neither a Regulation Impact Statement, nor a Business Cost Calculator Report, is necessary in relation to the regulatory proposal.

Commencement

In accordance with section 2, the Determination will commence the day after it is registered on the Federal Register of Legislative Instruments.
Notes on the Determination

Section 1 – Name of Determination

This section sets out the title of the Determination.

Section 2 – Commencement

This section provides that the Determination commences the day after it is registered on the Federal Register of Legislative Instruments.

Section 3 – Definition

This section sets out definitions of terms used in the Determination.

Section 4 – Determination – paragraph 38B (14) (b) of the Act

This section determines that, under paragraph 38B (14) (b) of the Act, for the purposes of section 38B of the BSA, the two remote television licence areas listed in the Schedule are to be treated as if they were one licence area.

Schedule – Licence areas to be treated as if they are a single licence area

The Schedule to the Determination specifies the RCEA TV1 licence area and the RCEA TV2 licence area as the two licence areas to be treated as one.  Both licence areas are defined in the Licence Area Plan – Remote Central and Eastern Australia Television – December 1996 (as amended from time to time), which is registered on the Federal Register of Legislative Instruments.