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A. Unassigned TV Channels B. Expiring Spectrum Licences

A. Unassigned TV Channels B. Expiring Spectrum Licences. Brendan Vernon Manager, Projects and Coordination Section Pricing & Policy Branch Radcomms Conference 2006 12 December 2006 Australian Communications and Media Authority. A. Unassigned TV Channels.

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A. Unassigned TV Channels B. Expiring Spectrum Licences

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  1. A. Unassigned TV ChannelsB. Expiring Spectrum Licences Brendan Vernon Manager, Projects and Coordination Section Pricing & Policy Branch Radcomms Conference 2006 12 December 2006 Australian Communications and Media Authority

  2. A. Unassigned TV Channels. • On 18 October 2006, the Parliament passed laws that will allow the emergence of a range of new services for Australian consumers. • The new legislation provides for the allocation of two types of datacasting transmitter licences (DTL – akin to an apparatus licence) operating in the digital mode: • Channel A and • Channel B • The DTLs will be allocated as separate, national licences for ten years with the possibility of a further five year renewal.

  3. Channel A • Licensees may only provide open narrowcasting*, datacasting and community broadcasting services which are capable of being received by domestic digital television receivers; • Commercial television broadcasting licensees and national broadcasters may not control a channel A DTL; • The price-based allocation system for allocation of channel A licences designed by ACMA must include preconditions for participation in the allocation and the Minister may direct ACMA in regard to these pre-conditions; and • ACMA may impose licence conditions, including in relation to rollout obligations on channel A licences, with the Minister to have the power to direct ACMA about imposition of such conditions. • Note: *ACMA decisions on narrowcasting under s21 of the Broadcasting Services Act (takes 45 days, requests need to be lodged early)

  4. Channel B • Licensees may provide datacasting services under a BSA datacasting licence, another licence allocated by ACMA under the BSA authorising provision of that service, or a service provided in accordance with a class licence under the BSA. • Licensees cannot provide: • commercial broadcasting services, subscription television broadcasting services to domestic digital television receivers, • services provided by commercial television broadcasting licensees or national broadcasters to domestic digital television receivers, and • retransmission of an existing commercial television broadcasting or national broadcasting service to domestic digital television receivers; • Commercial television broadcasting licensees and national broadcasters may control a channel B datacasting transmitter licence only if it is not used to provide services to domestic digital television receivers; and • Licensees must commence services within 18 months or such longer period allowed by ACMA.

  5. Channel B access undertakings regime • The legislation establishes an access regime that provides that a person is not eligible to apply for a Channel B DTL unless that person has submitted an access undertaking to the ACCC and the ACCC has accepted that undertaking*. • The access undertaking should provide for access to services that enable or facilitate the transmission of content services by content service providers. • The ACCC may determine, by legislative instrument, criteria to be applied in deciding whether to accept an access undertaking or a variation of an access undertaking. • An accepted undertaking will become binding on a person who acquires a channel B DTL and adherence to the terms of an undertaking will be a condition of the licence • The undertaking remains for the duration of the licence and transfers with any licence transfer. However, undertakings may be varied with the agreement of the ACCC. • Note: *ACCC requires up to 12 weeks to assess access undertakings

  6. S50 of Trade Practices Act (TPA) • Section 50 of the TPA prohibits acquisitions of shares or assets which would be likely to substantially lessen competition in a market. • Section 106A of the Radiocommunications Actprovides that the acquisition by a person of an apparatus licence (such as a DTL for channel A and/or B) would constitute the acquisition of an asset by that person for the purposes of s. 50 of the TPA. • Applicants for Channels A and/or B may need to request clearance from the ACCC prior to the allocation of the DTLs. This process typically takes 8 – 12 weeks however it is advisable to allow plenty of time if seeking a clearance.

  7. Consultation papers • ACMA will release consultation paper on auction parameters this week to close on 5 February 2007 • ACCC will release consultation paper seeking comment on access undertakings for Channel B this week to close early February 2007 • ACMA will finalise television narrowcasting guidelines by mid March 2007

  8. ACMA seeks views on • Which channels for “A” and “B” • method of price-based allocation • allocation participation criteria for channel A • rollout obligations for channels A and B • competition limits – to whom and number • trading and swapping channels • enforcement issues - FTA TV use of channel B • ‘digital dividend’ post analog TV switchover

  9. Expiring Spectrum Licences • Spectrum licences issued around the turn of the century are due to expire in the next few years; • Under the current Radiocommunications Act, ACMA cannot commence processes to formulate decisions on action on expiry until 2 years before licence expiry; • The first of these are a small number of 10 year spectrum licences in the 500 MHz band due to expire in 2007; • ACMA is to consider the future of these licences shortly.

  10. Future • Under a proposed amendment to the Act, if passed, ACMA will, in future, be required to complete these processes 3 years before expiry; • The high value 15 year mobile telephony spectrum licences were allocated in the period 1998-2001 and will expire in 2013-2016; • If the amendment to the Act is passed, then ACMA will commence work on these 15 year expiring 500 MHz licences in 2007-2008. • Work on the high value 15 year mobile telephony licences will commence at the same time.

  11. Completed Auction

  12. Legislation ss78-84 of the Radcoms Act • Under section 82(1) of the Act, ACMA can reissue spectrum licences to incumbent licensees without the need to undertake a price-based allocation if either: • (a) The spectrum licences were used to provide a service that the Minister now determines to be in the public interest; or • (b) ACMA is satisfied that special circumstances exist to justify reissuing the licence in the public interest to the incumbent licence holder. • Under subsection 82(3) of the Act, the Minister may determine, by written instrument, a specified class of services for which re-issuing spectrum licences to the same licensees would be in the public interest.

  13. Further details • For more details on any of the above issues please feel free to contact me • Brendan Vernon • Brendan.vernon@acma.gov.au • Canberra office of ACMA • (02) 6219 5262

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