PRIME MINISTER 55/ 92
STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING, MP
AND THE MINISTER FOR TRANSPORT AND COMMUNICATIONS, THE
HON SENATOR BOB COLLINS MP
PAY TV
The Government has opened the way for a competitive new
industry in subscription broadcasting.
The Prime Minister and the Minister for Transport and
Communications, Senator Bob Collins, today announced a
package of legislation which will enable a diverse range
of operators, and technologies to develop programming and
programming services for Australians.
There will be no exclusivity attached to programming and
all licences will be able to compete fully.
The Government has decided to allow from the-outset the
widest possible range of services using a variety of
technologies, including satellite, cable and microwave,
Senator Collins said.
Over the next few years, the establishment of Pay TV
should see some 4000 new jobs created. Australian
manufacturing and service industries will directly
benefit. Australian content rules will ensure the film and
television production industries gain a new outlet for
creative programming.
All satellite subscription television licensees will be
required to spend at least 10 per cent of their annual
programming expenditure on any predominantly drama
channel, such as a movie channel, on new Australian drama
programs.
A four-transponder satellite service is expected to be
available within two years, delivered by an Optus
satellite.
The Government will use a competitive, price-based
process later this year to allocate a licence for this
service. Licences to use the other two available Pay TV
transponders will be sold individually within one year of
the sale of the first licence.
A year's breathing space on other satellite services
gives the multi-channel operator a chance to establish
itself in the marketplace.
A number of ownership conditions will apply to the fourtransponder
service which will ensure the emergence of a
new force in the Australian broadcasting industry.
There will be no free-to-air television equity allowed.
Telecommunications carriers and large newspaper groups
will also be excluded.
Foreign ownership will be restricted to 35% aggregate
with a 20% limit on any individual.
Licensees operating on the fifth and sixth transponders
will also be subject to the 20/ 35% foreign equity
constraint. However, the networks, the national broadcasters such as
the ABC and telecommunications carriers such as AOTC will
be able to bid without restriction.
No one will be able to control more than one satellite
licence. This will mean that the licensees of the fifth and sixth
transponders will be in a position to compete sensibly
with the initial licensee and be in a position to develop
cable technology as it becomes available.
To ensure that the ABC can participate in the bidding,
the Government is willing to fund part of its equity
commitment in any consortia. The Commonwealth will do
this only when it is satisfied with the overall level of
Commonwealth liability involved.
The Government has also agreed to investigate ways of
improving and expanding free-to-air services in regional
and remote areas where early access to Pay TV will be
difficult. CANBERRA 3 June 1992