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Regulating broadcasting in the digital age. What does this mean for our independent Regulator?

Regulating broadcasting in the digital age. What does this mean for our independent Regulator?. Sparks Seminar 27 February 2012 SOS: Support Public Broadcasting Coalition. Overview of presentation. Who is the SOS: Support Public Broadcasting Coalition?

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Regulating broadcasting in the digital age. What does this mean for our independent Regulator?

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  1. Regulating broadcasting in the digital age. What does this mean for our independent Regulator? Sparks Seminar27 February 2012 SOS: Support Public Broadcasting Coalition

  2. Overview of presentation • Who is the SOS: Support Public Broadcasting Coalition? • Regulatory challenges in the present analogue environment • Promises and challenges of the new digital environment • What needs to be done?

  3. Who is the SOS: Support Public Broadcasting Coalition? • Coalition of three main groupings: • Unions (including Cosatu and SABC unions) • NGOs engaged in freedom of expression advocacy work – MMA and FXI • Organisations in the independent production sector - SASFED • Also, individuals committed to freedom of expression

  4. Regulatory challenges in the analogue environment – Role of ICASA • The Independent Broadcasting Authority of South Africa (ICASA) is a central to our broadcasting landscape. • Its overall purpose is to regulate the broadcasting sector in the public interest to ensure fairness and diversity of views broadly representing SA society.

  5. Regulatory challenges in the analogue environment – broad tasks of ICASA • Broadly its tasks include the following: • awarding licenses and ensuring compliance of licensees • monitoring compliance by the SABC of its Charter • prescribing regulations • Ensuring broadcasters adhere to regulations to ensure free and fair coverage of elections. • making recommendations to the Minister of Comms about policy matters and proposed amendments to legislation

  6. Regulatory challenges in the analogue environment (1) – ICASA’s powerful history • ICASA transformed the broadcasting sector from one dominated by a single dominant apartheid state broadcaster - to a new three-tier broadcasting system. • It created new commercial and community tiers of broadcasting. • This was mainly through the issuing of new licenses. • Passing regulations such as local content and local production regulations to further embed diversity.

  7. Regulatory challenges in the analogue environment – fiscal austerity “kicks in” • From the late 1990s South Africa’s fiscal austerity measures take their toll. • IBA and SATRA merged – less capacity for broadcasting regulation • Budgets cut, ICASA rural offices closed • From the early 2000s the initial drive to license new stations slows and even when new licenses issued new stations never launched. • Examples on the public broadcasting front • Examples on the commercial subscription TV front

  8. Regulatory challenges in the analogue environment – fiscal austerity and PBS • On the public broadcasting front – • Cost cutting drives at the SABC in the late 1990s result in serious casualties on the language front – particularly on TV. • The Department of Communications thus develops the Broadcasting Amendment Bill, 2002. Calls for the launch of two regional TV stations – south and north to ensure strong coverage of all South Africa’s official languages. • ICASA was asked to issue licenses but stations never launched. Lack of funds. • Language diversity impacted.

  9. Regulatory challenges in the analogue environment – commercial TV broadcasting • On the commercial TV broadcasting front – new comer - e.TV - successfully launches in 1998. First national private free-to-air channel. Only free-to-air channel. • On the subscription front – Multichoice secures its powerbase. Owns M-Net from apartheid days. Strengthens its position by launching Digital Satellite TV (DSTV) in 1995. • Despite moves to diversify ownership of subscription TV – Multichoice continues to dominate. • In 2007 ICASA awards 4 new broadcast licensees but only on Digital Media (Top TV) is actually launched. TopTV is struggling. • ICASA fails to do investigations into competition issues.

  10. Regulatory challenges in the analogue environment – commercial radio • On the commercial radio broadcasting front – there were sales of SABC radio stations and new licenses issued. • However still only 16 commercial radio stations on air including regional and city-wide stations. No national commercial radio station. Most stations broadcast in English. • Internationally SA lags behind in terms of number of commercial stations e.g. Ghana has 52 commercial channels.

  11. Regulatory challenges in the analogue environment – community radio and TV • And on the community broadcasting front…. • A whole tier of broadcasting has been created with the launch of approximately 100 new stations - but the sector suffers from funding and governance crises – particularly geographical stations. • Community TV

  12. Regulatory challenges in the analogue environment – monitoring of licensing conditions etc. • On the monitoring of license conditions and local content… • There has been a lot of unhappiness on the front of the monitoring of licensing conditions. • Unhappiness on the side of community radio stations. • The independent producers have strongly documented their unhappiness about lack of monitoring of local content quotas on TV.

  13. Regulatory challenges in the analogue environment – summary of issues • Public broadcasting sector dominated by the SABC. TV channels are not sufficiently diverse in terms of language. Channels not living up to their local content obligations; • A commercial radio broadcasting sector - not sufficient players, dominated by English • A commercial TV broadcasting sector dominated by e.TV and MultiChoice • A community broadcasting sector – not living up to expectations in terms of a rich diversity of content at the local level .

  14. Promises and challenges of the digital environment – what is digital broadcasting? • SA on the brink of the digital multi-channel environment. • Impacts terrestrial TV not satellite. • Digital “switch on” – last quarter of 2012 • Short “dual illumination period”. Everyone must buy set top boxes otherwise cut off from TV when analogue signal “switched off”. • During the dual illumination period the present terresterial incumbents – e.TV, SABC, Mnet - will be given “digital incentive channels”. • Valuable radio frequency spectrum freed up after migration.

  15. Promises and challenges of the digital environment - Promises • The promises include the following…. • Many more channels – incumbents – SABC, e.TV and M-Net - will be given a series of new channels. • With more channels SABC can potentially better fulfil its public service mandate – particularly its language mandate. • Possible new players being introduced even during the “dual illumination” period. • Better picture quality. • Better coverage of languages. • Interactive services – e.government services. • Freeing up the digital dividend – more players, more content

  16. Promises and challenges of the digital environment - challenges • However also massive challenges…. • The overall cost of the migration process • The complexity of the migration process – so many stakeholders involved the DOC, Sentech, USAASA, ICASA, the broadcasters, the STB manufactures etc. • Will we really get a diversity of content? Cost of content, advertising fragmented across channels, volumes of content, will public service broadcasting content get lost in this environment.

  17. Promises and challenges of the digital environment – issues to consider • SOS is still debating these issues. Issues to consider include: • The need for ICASA to work closely with other statutory bodies: • the Competition Commission to alleviate the issues of market concentration; • the MDDA to look at ways to support new broadcasters. • Further ICASA needs to be significantly strengthened. • It needs proper resourcing. • Its research capacity needs to be significantly boosted. • Its independence needs to safe-guarded.

  18. What is to be done? Broadcasting policy review. • A government-led Broadcasting Policy Review process that is transparent and participatory: • new Broadcasting White Paper that focuses on the following: • policy for all three tiers of broadcasting: • public, community and commercial • Challenges/opportunities of digital broadcasting • An independent ICASA with sufficient capacity and funding to perform its duties in the new digital environment

  19. What is to be done?Legislative amendments • We then need to look at legislative amendments: • New SABC Act or amendments to Broadcasting Act such that is becomes an SABC Act • Amendments to the Electronic Communications Act • To fix the problems caused by the lack of definitions of “control” in commercial broadcasting context • To update BBBEE and ownership and control provisions of the ECA to ensure diversity of ownership and content • Appropriate provisions to support community broadcasting: • Community of interest and geographic communities

  20. What is to be done?Legislative amendments • Amendments to the ICASA Act • To bolster ICASA’s independence • To further empower ICASA through ensuring sufficient funding and human resources capacity • To require ICASA to monitor compliance with laws, regulations and licence conditions and to report thereon to Parliament and to the sector, particularly re: local content, independent production

  21. What is to be done?Regulatory review • Updating Broadcasting Regulatory Environment (Icasa): • Updating micro policy ie ICASA position papers • Updating regulations to ensure: • Compliance with new policy • Compliance with new/amended legislation • Regulatory certainty by rationalising regulations to avoid overlap, contradictory provisions etc • We need a strong powerful independent ICASA in the digital age.

  22. Thank You

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