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TELEVISION BROADCASTING SERVICES (DIGITAL CONVERSION) BILL 1998



1998


THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA


HOUSE OF REPRESENTATIVES











TELEVISION BROADCASTING SERVICES
(DIGITAL CONVERSION) BILL 1998




SUPPLEMENTARY EXPLANATORY MEMORANDUM




Amendments to be moved on behalf of the Government









(Circulated by authority of Senator the Hon. Richard Alston, Minister for Communications, the Information Economy and the Arts)


ISBN: 06445 26718


TELEVISION BROADCASTING SERVICES
(DIGITAL CONVERSION) BILL 1998


OUTLINE


The Television Broadcasting Services (Digital Conversion) Bill 1998 provides a regulatory framework for the introduction of digital television in Australia. In particular, the Bill requires the Australian Broadcasting Authority (ABA) to formulate and implement legislative schemes for the conversion of commercial and national (ABC and SBS) television broadcasting services from analog mode to digital mode.

The proposed Government Amendments make minor and technical amendments to clarify and refine the operation of provisions in the Bill.

In summary, the minor policy changes to the operation of the Bill which are made by the Government Amendments:

• require the ABA, in determining under proposed subsection 34(3) of the Broadcasting Services Act 1992 (BSA) whether television spectrum is available to be allocated for datacasting, to have regard to possible future demand for spectrum for the provision of commercial television broadcasting services (Amendment (1));

• provide that the simulcasting requirements in Parts 2 and 3 of proposed Schedule 4 to the BSA do not apply to advertising or sponsorship matter or any transmission arrangements or individual television programs, where the ABA is satisfied that the digital version of the television broadcasting service will be substantially the same as the analog version of the television broadcasting service (Amendments (7), (18), (36) and (54));

• bring the planning objective for digital conversion schemes in relation to metropolitan areas into line with the corresponding objective in Parts 2 and 3 of proposed Schedule 4 in relation to regional areas – ie. to require the schemes to be directed towards the objective that, as soon as practicable after the start of the simulcast period, the digital transmission of a television broadcasting service achieves the same level of coverage and potential reception quality as is achieved by the analog transmission of that service (Amendments (15), (16), (33) and (34));

• include individual owners and operators of broadcasting transmission towers in provisions which require the ABA to consult with commercial and national broadcasters on the formulation and implementation of digital conversion schemes (Amendments (17), (28), (35) and (51));

• enable the digital conversion schemes to allow temporary test transmissions of a commercial or national television broadcasting service to be made in digital mode before the commencement of the simulcast period (Amendments (18) and (36));

• require the ABA to give a commercial television broadcasting licensee or a national broadcaster an opportunity to rectify a breach of the obligations during the simulcast period to continue digital transmission and to comply with the High Definition Television (HDTV) format standard, before requiring surrender of the digital transmitter licence (Amendments (19), (23), (42), (46), (73) and (74));

• ensure the effective operation of provisions enabling the issue of a replacement transmitter licence as a result of a failure to comply with an HDTV format standard, by providing for that replacement transmitter licence to authorise reduced ‘transmission capacity’, rather than reduced bandwidth (Amendments (24) and (47));

• enable the ABA to formulate and implement a different digital conversion scheme for the transmission of commercial and national television broadcasting services to remote areas, taking into account the special circumstances that apply to the transmission of television broadcasting services to those areas (Amendments (11) to (14), (18), (26) to (27), (29) to (30), (36) to (41), (48) to (50) and (52));

• enable separate HDTV format standards to be prescribed under Part 4 of proposed Schedule 4 to the BSA in relation to remote areas (Amendment (57));

• provide that, in relation to the ABC and SBS, the end of the simulcast period for a metropolitan or regional coverage area (other than a remote coverage area) is the same as that applicable to commercial television broadcasting services in the licence area corresponding to the coverage area concerned (Amendments (31), (32) and (70));

• exempt advertisements and sponsorship from the operation of the closed captioning standards in Part 4 of proposed Schedule 4 to the BSA (Amendment (59));

• require any digital television broadcasting transmission standards/datacasting standards which deal with conditional access systems to be directed towards the objective that, as far as practicable, those systems should be open to all providers of television broadcasting services/datacasting services transmitted in digital mode (Amendments (60) to (63));

• require the ACCC, before making a Code setting out conditions that access seekers and owners and operators of a broadcasting transmission tower are to comply with in relation to the provision of access under Part 5 of proposed Schedule 4 to the BSA, to consult with: commercial television broadcasting licensees, national broadcasters and owners and operators of broadcasting transmission towers (Amendment (69)); and

• empower the ABA to recover from a site or tower owner administrative costs expended in considering applications for technical compliance certificates under the digital access regime (Amendments (71) and (72)).

The Government Amendments will also make technical changes to the operation of the Bill to confirm that:

• the licence condition exemption in proposed paragraph 7(1)(k) of Schedule 2 to the BSA, relating to commencement of digital transmission in accordance with a commercial television digital conversion scheme formulated under Part 2 of proposed Schedule 4 to the BSA, also applies to commencement requirements in an implementation plan approved by the ABA under that scheme (Amendment (3));

• the provisions in proposed subparagraph 7(l)(m)(ii) of Schedule 2 to the BSA and in paragraph 32(b) of proposed Schedule 4 to the BSA only enable commercial television broadcasting licensees and national broadcasters to transmit in digital mode a program that is ‘incidental and directly linked’ to another program that is being simulcast in both analog and digital mode (Amendments (6) and (53));

• the digital conversion schemes may make provision for the location of digital transmitters at different broadcasting transmission sites from those used for the corresponding analog transmitters, where the ABA is satisfied that an alternative location is appropriate (Amendments (18) and (36));

• restrictions in Part 3 of proposed Schedule 4 to the BSA on the use of digital transmitters by national broadcasters operate subject to the national broadcasters being authorised by regulations to transmit multi-channel programming if the programs are of a kind exempted by regulations (Amendment (55));

• HDTV regulations may specify one or more format standards (Amendment (56));

• commercial television broadcasting licensees and national broadcasters are not required to comply with digital television format standards, including HDTV format standards, if they are no longer in a position to comply, either because their digital transmitter licence was forced to be surrendered, or a replacement digital transmitter licence has been issued which authorises reduced transmission that does not enable HDTV transmission (Amendments (57) and (58));

• the access regime in Part 5 of proposed Schedule 4 to the BSA gives a commercial television broadcasting licensee or a national broadcaster an access right in connection with the digital transmission of its own television broadcasting services, not any television broadcasting service (Amendments (66) and (68)); and

• the obligation on the owner or operator of a broadcasting transmission site to provide access to a site for the purpose of installing a transmitter or associated facilities used wholly or principally for the transmission of a digital television broadcasting service applies to a tower owner or operator that itself has such access to the site (Amendment (67)).

As a result of the proposed amendments relating to remote areas, minor consequential amendments are made by Amendments (2), (3), (4), (5), (10), (20) to (22), (25) and (43) to (45).

Other minor consequential amendments relating to definitions are made by Amendments (8), (9), (64) and (65).

FINANCIAL IMPACT


The proposed amendments are not expected to have any significant financial impact on Commonwealth expenditure or revenue.

NOTES ON AMENDMENTS

AMENDMENT (1)


Amendment (1) amends Item 5 of Schedule 1 to the Bill by adding a new subsection 34(3A) to the BSA.

Item 5 amends section 34 of the BSA by adding a new subsection 34(3). This new subsection will allow the ABA to determine, in writing, that a part or parts of the broadcasting services bands spectrum is or are available for allocation for the purposes of the transmission of datacasting services. New subsection 34(3) is intended to ensure that television spectrum which is not required for broadcasting purposes (including spectrum required for digital conversion of commercial and national broadcasting services) can be referred to the ACA and allocated on a competitive basis under the Radiocommunications Act 1992 (Radcom Act) for the provision of datacasting services.

Proposed subsection 34(3A) provides that in making a determination under new subsection 34(3), the ABA is to have regard to the possible future demand for the use of that part of the radiofrequency spectrum for the provision of commercial television broadcasting services and such other matters as the ABA considers relevant. For example, in making decisions on the allocation of datacasting spectrum in licence areas that already have three commercial television services, the ABA would be expected to have regard to the possible need for additional spectrum after 2008, when the restriction on allocating more than three commercial television licences in a licence area could be lifted (see Item 1 of Schedule 1 to the Bill).

AMENDMENT (2)


Amendment (2) is a formal amendment to proposed paragraph 7(1)(k) of Schedule 2 to the BSA contained in item 10 of Schedule 1 to the Bill. It is consequential upon the amendments relating to remote licence areas (see, in particular, Amendments (12), (13), (18) and (27)).

AMENDMENT (3)


Amendment (3) replaces proposed paragraph 7(1)(l) of Schedule 2 to the BSA with a new paragraph 7(1)(l) (contained in item 10 of Schedule 1 to the Bill). The amendment addresses the overlap between proposed paragraphs 7(1)(k) and (l) of Schedule 2 to the BSA.

Paragraph 7(1)(l), as contained in the Bill, imposes a licence condition on a commercial television broadcasting licensee to comply with an implementation plan given by the licensee to the ABA in accordance with the commercial television scheme once the ABA has accepted the plan.

There is an overlap between paragraphs 7(1)(k) and (l) which could lead to anomalous results. The implementation plan given by the licensee to the ABA will set out a timetable for the installation and operation of digital transmitters, including the commencement dates for digital transmission of commercial television broadcasting services in metropolitan and regional licence areas. Failure of the licensee to meet these commencement dates will amount to a breach of a licence condition under proposed paragraph 7(1)(l) but not under paragraph 7(1)(k).

Amendment (3) addresses this overlap by replacing paragraph 7(1)(l) with a new paragraph 7(1)(l) to provide that a failure to comply with an implementation plan does not amount to a breach of a licence condition, to the extent that it deals with the commencement requirements covered by paragraphs 5(2)(a) and (b) of proposed Schedule 4 to the BSA or by that part of the scheme that relates to remote licence areas.

AMENDMENTS (4) TO (6)

Amendment (4) makes a consequential amendment to proposed paragraph 7(1)(m) of Schedule 2 to the BSA.

It is consequential upon proposed subclause 5(6) of Schedule 4 to the BSA (Amendment (18)) which provides that Part B of the commercial television conversion scheme may make provision for a simulcast period for a specified remote licence area, throughout which the commercial television broadcasting licensee for that area is required to transmit simultaneously the commercial television broadcasting service concerned in both analog mode and digital mode in that area.

Amendment (5) is a purely drafting amendment consequential upon Amendment (4).

Amendment (6) makes a technical amendment to proposed paragraph 7(1)(m) of Schedule 2 to the BSA.

The intention behind proposed paragraph 7(1)(m) is that a licensee should broadcast the same program in digital mode as in analog mode – this is achieved by subparagraph 7(1)(m)(i).

Subparagraph 7(1)(m)(ii) is intended to enable a commercial television broadcasting licensee who is simultaneously transmitting a program in both analog and digital mode (in accordance with paragraph 7(1)(m)(i)) to transmit an additional program in digital mode using the multi-channel capacity of digital transmission, if the program is treated by the regulations as ‘incidental and directly linked’ to the program that is being broadcast at that time in both analog and digital mode.

However, a possible interpretation of subparagraph 7(1)(m)(ii) is that a commercial broadcaster that is not complying with the simulcasting requirements in subparagraph 7(1)(m)(i) could broadcast a program in digital mode which is incidental and directly linked to a different program that is only being broadcast in analog mode.

Amendment (6) amends subparagraph 7(1)(m)(ii) of Schedule 2 to the BSA to make it clear that a program can only be taken to be incidental and directly linked to a program that is being simultaneously transmitted in both analog and digital mode, in accordance with subparagraph 7(1)(m)(i).

AMENDMENT (7)

Amendment (7) makes an amendment to item 11 of Schedule 1 to the Bill consequential upon proposed new subclause 5(7) of Schedule 4 (see Amendment (18)). The effect of new subclause 5(7) is that the simulcasting requirements relating to non-remote and remote licence areas will not apply to advertising or sponsorship matter or to any television programs covered by an ABA determination.

Amendment (7) applies new subclause 5(7) to the simulcasting requirements in proposed paragraph 7(1)(m) of Schedule 2 to the BSA. This will ensure that those simulcasting requirements will also not apply to advertising or sponsorship matter or to any television programs covered by an ABA determination.

AMENDMENTS (8) TO (11)


Amendments (8) to (11) insert new definitions in clause 2 of proposed Schedule 4 to the BSA which deals with digital television broadcasting. Clause 2 contains definitions for the purposes of proposed Schedule 4.

Amendment (8) inserts a definition of ‘broadcasting transmission tower’ in clause 2. This term is used in Amendments (28) and (35) as well as in clauses 42 to 44 of proposed Schedule 4 to the BSA dealing with access to broadcasting transmission towers and sites. As a consequence of the insertion of this definition in clause 2, the definition of ‘broadcasting transmission tower’ in clause 40 of proposed Schedule 4 to the BSA will be removed (see Amendment (64)).

Amendment (9) inserts a definition of ‘radiocommunication’ in clause 2. This term, in its plural form, is used in Amendment (8). As a consequence of the insertion of this definition in clause 2, the definition of ‘radiocommunication’ in clause 40 of proposed Schedule 4 to the BSA will be removed (see Amendment (65)).

Amendment (10) inserts new definitions of ‘remote coverage area’ and ‘remote licence area’ consequential upon the proposed amendments relating to Part B of the commercial television conversion scheme and the national television conversion scheme dealing with remote licence and coverage areas (see, for example, Amendments (13), (18), (27), (36), (49), (50) and (57)). The term ‘remote licence area’ is defined by clause 4A of proposed Schedule 4 to the BSA (see Amendment (12)). The term ‘remote coverage area’ is defined by Amendment (10) to mean an area (in relation to a national broadcasting service) that corresponds to a remote licence area.

Amendment (11) replaces the definition of ‘simulcast period’ in clause 2 with a new definition which defines this term for the purposes of non-remote and remote licence and coverage areas (see paragraphs 5(2)(c) and 17(2)(c) of proposed Schedule 4 to the BSA contained in the Bill and proposed subclauses 5(6) and 17(6) of that Schedule contained in Amendments (18) and (36)).

AMENDMENT (12)


Amendment (12) inserts a new clause 4A of proposed Schedule 4 to the BSA dealing with remote licence areas. New clause 4A will permit the ABA to make a written determination that a specified licence area is a remote licence area for the purposes of that Schedule. Any such determination will have effect accordingly and will be a disallowable instrument. The determination must therefore be notified in the Commonwealth Gazette, tabled in the Parliament and will be subject to Parliamentary disallowance.

Commercial and national broadcasting services are currently provided to remote areas through a combination of direct transmission by satellite and the retransmission by terrestrial transmitters of television signals received via satellite.

The digital conversion scheme will need to be sufficiently flexible to accommodate the special operational characteristics of remote area broadcasting and the high cost of providing commercial and national television broadcasting services to small and isolated communities in remote areas.


AMENDMENTS (13) AND (14)

Amendment (13) inserts a new subclause 5(1A) in proposed Schedule 4 to the BSA. This new subclause provides that the commercial television conversion scheme is to be divided into two Parts. Part A of the scheme will deal with licence areas that are not remote licence areas. Part B of the scheme will deal with remote licence areas.

Amendment (14) is a consequential amendment. It will ensure that only Part A of the scheme is directed towards ensuring the achievement of the policy objectives set out in subclause 5(2) of proposed Schedule 4 to the BSA.


AMENDMENTS (15) AND (16)


Amendments (15) and (16) will bring the objective relating to the level of coverage and potential reception quality in metropolitan licence areas into line with the corresponding objective for regional licence areas (other than remote licence areas).

Paragraph 5(2)(f) of proposed Schedule 4 to the BSA provides that it is an objective of the commercial television conversion scheme that, throughout the simulcast period for a metropolitan licence area, the transmission of a commercial television broadcasting service in digital mode in that area should achieve the same level of coverage and potential reception quality as is achieved by the transmission of that service in analog mode in that area.

By contrast, paragraph 5(2)(g) of proposed Schedule 4 to the BSA provides that it is an objective of the scheme that, ‘as soon as is practicable’ after the start of the simulcast period for a regional licence area, and throughout the remainder of that period, the transmission of a commercial television broadcasting service in digital mode in that area should achieve the same level of coverage and potential reception quality as is achieved by the transmission of that service in analog mode in that area.

Amendments (15) and (16) bring the objective relating to the level of coverage and potential reception quality in metropolitan licence areas into line with the corresponding objective for regional licence areas (other than remote licence areas) by omitting paragraph 5(2)(f) and the word ‘regional’ from paragraph 5(2)(g). Paragraph 5(2)(g), as amended, will apply to any licence area, whether metropolitan or regional, other than a remote licence area. (The term ‘licence area’ is defined in clause 2 of proposed Schedule 4 to the BSA to mean a licence area for a commercial television broadcasting licence.)

The amendments will allow metropolitan licensees who have commenced digital transmission to install additional digital transmitters over time, as soon as practicable, in accordance with an implementation plan approved by the ABA, rather than having to install all digital transmitters or to replicate analog coverage from the commencement of digital transmission.

AMENDMENT (17)


One of the policy objectives of the commercial television conversion scheme is that the ABA is to consult commercial television broadcasting licensees about the implementation of the scheme (paragraph 5(2)(m) of proposed Schedule 4 to the BSA).

The legal obligations of tower owners and operators may be affected by the implementation of the conversion scheme, in so far as they will be subject to the transmitter access regime in proposed Part 5 of Schedule 4 to the BSA if commercial broadcasters are required to install digital transmitters on broadcasting transmission towers.

It is proposed that paragraph 5(2)(m) of proposed Schedule 4 to the BSA be supplemented by a new consultation requirement in proposed paragraph 5(2)(n). This new requirement will provide that Part A of the commercial television conversion scheme (dealing with non-remote licence areas) must, among other things, be directed towards ensuring the achievement of the objective that, if the implementation of the scheme affects particular broadcasting transmission towers, the ABA is to consult the owners and operators of those towers.

Related amendments are Amendments (28), (35) and (51).

AMENDMENT (18)


Amendment (18) will:

• enable Part A of the commercial television conversion scheme (dealing with non-remote licence areas) to allow temporary test transmissions of a commercial television broadcasting service to be made in digital mode before the commencement of the simulcast period;

• ensure that Part A of the scheme may make provision for the location of digital transmitters at different broadcasting transmission sites, where the ABA is satisfied that an alternative location is appropriate;

• enable Part B of the scheme (dealing with remote licence areas) to make provision for a simulcast period for a remote licence area; and

• ensure that the simulcasting requirements applying to commercial television broadcasting licensees in non-remote and remote licence areas will not apply to advertising or sponsorship matter or individual television programs or transmission arrangements covered by an ABA determination.

Test transmissions

The first objective of the commercial television conversion scheme is that each commercial television broadcasting licensee for a metropolitan licence area is required to commence transmitting the commercial television broadcasting service concerned in digital mode in that area on 1 January 2001 (paragraph 5(2)(a) of proposed Schedule 4 to the BSA).

The second policy objective of the conversion scheme is that each commercial television broadcasting licensee for a regional licence area will be required to commence transmitting the commercial television broadcasting service concerned in digital mode in that area by such date during the period beginning on 1 January 2001 and ending immediately before 1 January 2004 as the ABA determines under the conversion scheme (paragraph 5(2)(b) of proposed Schedule 4 to the BSA).

Subclause 5(3) of proposed Schedule 4 to the BSA makes it clear that nothing in subclause 5(2) prevents the digital conversion scheme from allowing a commercial television broadcasting licensee for a regional licence area to transmit its television programs in digital mode in that area during the whole or a part of the period beginning on 1 January 2001 and ending immediately before the start of the simulcast period for that area, provided the transmission complies with such requirements as are ascertained in accordance with the scheme. This provision is intended to ensure that there is sufficient flexibility in the digital conversion scheme to allow a regional licensee to commence digital transmission before the formal simulcast period begins.

In addition, Amendment (18) will insert a new subclause 5(4) of Schedule 4 to the BSA to permit Part A of the conversion scheme (dealing with non-remote licence areas) to allow a commercial television broadcasting licensee to conduct temporary test transmissions of its commercial television service in digital mode during a period beginning before the start of the simulcast period for the licence area concerned, so long as the transmissions comply with such requirements as are ascertained in accordance with Part A of the scheme and occur during a period ascertained in accordance with that Part. This will allow metropolitan and regional broadcasters to trial digital transmissions for periods approved by the ABA, before commencing permanent digital transmission.

Item 3 of Schedule 1 to the Bill will also enable the ABA to make television spectrum in the broadcasting services bands available for allocation for the transmission of datacasting services on a temporary basis.

Location of digital transmitters

One of the objectives of the commercial television conversion scheme is that, during the simulcast period for a licence area, there should, as far as practicable, be co-location of digital and analog transmitters (paragraph 5(2)(h) of proposed Schedule 4 to the BSA). This is intended to ensure that commercial television broadcasting licensees can be approved by the ABA to use existing transmission infrastructure to transmit their commercial television programs in digital mode.

The co-location objective is expressed in terms which recognise that there will be occasions where commercial television broadcasting licensees will not be able to use adjacent channels and co-location of analog and digital transmitters will therefore not be practicable.

However, to ensure that the co-location objective is not unduly restrictive, proposed subclause 5(5) makes it clear that nothing in the analog co-location objective in proposed paragraph 5(2)(h) prevents Part A of the commercial television conversion scheme (dealing with non-remote licence areas) making provision for the location of digital transmitters at other broadcasting transmission sites, where the ABA is satisfied that an alternative location is appropriate having regard to the other objectives in subclause 5(2), to the costs involved for the licensee concerned and to such other matters as the ABA considers relevant.

Remote licence areas––simulcast period

Proposed subclause 5(6) provides that Part B of the commercial television conversion scheme (dealing with remote licence areas) may make provision for a transitional period for a specified remote licence area, that is to be known as the ‘simulcast period’, throughout which the commercial television broadcasting licensee for that area is required to transmit simultaneously the commercial television broadcasting service concerned in both analog mode and digital mode in that area.

Exemption from the simulcasting requirements for advertising or sponsorship matter and television programs covered by an ABA determination

Amendment (18) also inserts new subclauses 5(7) and (12) of proposed Schedule 4 to the BSA to the effect that the simulcasting requirements in paragraph 5(2)(c) and subclause 5(6) of proposed Schedule 4 to the BSA do not apply in relation to television programs or the broadcast of advertising or sponsorship matter, whether or not of a commercial kind, covered by an ABA determination, provided the licensee complies with any conditions specified in the determination. The definition of ‘program’ in s. 6 of the BSA, in relation to a broadcasting service, is defined to include advertising or sponsorship matter, whether or not of a commercial kind.

Proposed subclause 5(8), when read with subsection 46(2) of the Acts Interpretation Act 1901 provides, in effect that that ABA’s determination in relation to advertising or sponsorship matter may apply to specified advertising or sponsorship matter during a specified period (which may consist of the simulcast period for the licence area concerned) or to a class of advertising or sponsorship matter transmitted during that period. It may apply to a specified licensee or a specified class of licensees. The specified advertising or sponsorship matter may consist of all advertising or sponsorship matter transmitted by the licensee or class of licensee concerned.

Proposed subclause 5(9), when read with subsection 46(2) of the Acts Interpretation Act 1901 provides, in effect, that the ABA’s determination in relation to television programs may exempt specified television programs or specified classes of television programs transmitted by a specified commercial television broadcasting licensee or a specified class of commercial television broadcasting licensees during a specified period. This would, for example, allow the ABA to approve ‘one-off’ programs, or arrangements for digital transmission of a commercial television ‘network feed’.

However, the ABA will not be permitted to make a determination under either subclause 5(8) or (9) unless it is satisfied that, on the assumption that the determination were made, the digital version of the commercial television service concerned will be ‘substantially the same’ as the analog version of that service (proposed subclause 5(10)).

The provisions in subsections 33(3), (3A) and (3B) of the Acts Interpretation Act 1901 in relation to instruments will also apply to the ABA’s determination under subclauses 5(8) and (9). This will allow the ABA, for example, to revoke or vary any such determination in the same manner and subject to the same conditions as applied to the making of the original determination (see subclause 14(2) of proposed Schedule 4 to the BSA).

Proposed subclause 5(11) provides that the ABA’s determination under subclause 5(8) or (9) is a disallowable instrument. The determination must therefore be notified in the Commonwealth Gazette, tabled in the Parliament and will be subject to Parliamentary disallowance.

AMENDMENT (19)


Subclause 7(2) of proposed Schedule 4 to the BSA requires the commercial television conversion scheme to make provision for requiring a commercial television broadcasting licensee to surrender its digital transmitter licence or licences if:

(a) the licensee does not commence digital transmission in accordance with paragraph 5(2)(a) or (b) of proposed Schedule 4 to the BSA; or

(b) the licensee commences digital transmission in accordance with those requirements but does not continue digital transmission throughout the simulcast period for the licence area concerned;

and the licensee does not satisfy the ABA that there are ‘exceptional circumstances’.

The effect of Amendment (19) is that this requirement will continue to apply where a licensee fails to commence digital transmission in non-remote licence areas and does not satisfy the ABA that there are exceptional circumstances (new subclause 7(2)) but not where the licensee ceases digital transmission during the simulcast period for a non-remote licence area (new subclause 7(2A)). Amendment (19) will enable the ABA to give a commercial television broadcasting licensee that has complied with commencement obligations an opportunity to rectify a subsequent breach of its digital transmission requirements, before being required to surrender its digital transmitter licence or licences.

Under new subclause 7(2A), Part A of the conversion scheme (dealing with non-remote licence areas) must make provision for requiring the ABA, before taking action to require a licensee to surrender its digital transmitter licence or licences because of a failure to continue to transmit in digital mode during the simulcast period, to give a written notice to the licensee directing it to resume digital transmission in the licence area concerned within a period not exceeding one month and to continue digital transmission throughout the simulcast period for that area. If the licensee does not comply with such a direction and does not satisfy the ABA that there are exceptional circumstances, it will be required to surrender its digital transmitter licence or licences. If the licensee does comply with the direction, it will not be required to surrender its digital transmitter licence or licences.

AMENDMENTS (20) TO (22)


Amendments (20) to (22) are consequential upon the proposed division of the commercial television conversion scheme into two Parts, namely Part A, dealing with non-remote licence areas, and Part B, dealing with remote licence areas.

Amendments (20) to (22) will ensure that subclauses 7(3) to (5) of proposed Schedule 4 to the BSA, dealing with the return of spectrum at the end of the simulcast period, will apply only in relation to Part A of the scheme.

Proposed subclause 7(9) (Amendment (26)) will enable Part B of the scheme to make provision for requiring a commercial television broadcasting licensee to surrender one or more analog or digital transmitter licences relating to a remote licence area if the licensee does not comply with a specified requirement of that Part of the scheme.

AMENDMENT (23)


Subclause 7(6) of proposed Schedule 4 to the BSA provides that the commercial television conversion scheme must make provision for requiring the commercial television broadcasting licensee for a licence area who breaches a High Definition Television (HDTV) standard under subclause 34(1) of proposed Schedule 4 to the BSA to surrender its digital transmitter licence or digital transmitter licences for that area, unless the licensee satisfies the ABA that there are exceptional circumstances.

The effect of Amendment (23) is to enable the ABA to give a commercial television broadcasting licensee in relation to a non-remote licence area that has complied with commencement obligations an opportunity to rectify any breach of an HDTV standard, before being required to surrender its digital transmitter licence or licences.

Under new subclause 7(6), Part A of the conversion scheme (dealing with non-remote licence areas) must make provision for requiring the ABA, before taking action to require a licensee to surrender its digital transmitter licence or licences because of a failure to comply with an HDTV standard during the simulcast period, to give a written notice to the licensee directing it to comply with the standard in the licence area concerned within a period not exceeding one month. If the licensee does not comply with such a direction and does not satisfy the ABA that there are exceptional circumstances, it will be required to surrender its digital transmitter licence or licences. If the licensee does comply with the direction, it will not be required to surrender its digital transmitter licence or licences.

AMENDMENT (24)


Amendment (24) makes a technical amendment to subclause 7(7) of proposed Schedule 4 to the BSA to give effect to its intention.

Subclause 7(7) provides that if a commercial television broadcasting licensee has failed to meet an HDTV standard and is required to surrender a digital transmitter licence, the commercial television conversion scheme may make provision for requiring the ACA to issue a replacement transmitter licence provided the amount of bandwidth covered by the replacement licence is less than the amount covered by the surrendered licence.

Amendment (24) amends the second sentence of subclause 7(7). The intention behind this sentence is to enable the legislative scheme formulated by the ABA to require a licensee who has breached HDTV standards to operate a digital transmitter that will only be sufficient to provide television programs in standard definition format. This intention is not, however, achieved by the current wording of the sentence. If the ACA were to issue a replacement digital transmitter licence covering less bandwidth than the surrendered licence, it would not be technically possible for the licensee to operate a digital transmitter to provide television programs in standard definition format, as the available transmitter and reception equipment would all be designed to operate on a 7 MHz band. A restriction which limits the licensee must therefore be achieved by a restriction on the transmission capacity available to that licensee, such that the licensee is restricted to transmitting only sufficient data to provide a standard definition television (SDTV) signal.

The second sentence of subclause 7(7) will therefore be replaced by a sentence to the effect that the amount of transmission capacity covered by the replacement licence must be less than the amount of transmission capacity covered by the surrendered licence. The concept of ‘transmission capacity’ is used in paragraph 5(2)(l) of proposed Schedule 4 to the BSA.

AMENDMENT (25)


Amendment (25) is consequential upon the proposed division of the commercial television conversion scheme into two Parts, namely Part A, dealing with non-remote licence areas, and Part B, dealing with remote licence areas.

Amendment (25) will ensure that subclause 7(8) of proposed Schedule 4 to the BSA, dealing with the variation of an analog transmitter licence to allow digital transmission, will apply only in relation to Part A of the scheme.

Proposed subclause 7(10) (Amendment (26)) deals with variation of an analog transmitter licence in relation to a remote licence area to allow digital transmission in that area.

AMENDMENT (26)

Amendment (26) inserts proposed subclauses 7(9) and (10) in proposed Schedule 4 to the BSA in relation to remote licence areas.

Proposed subclause 7(9) will enable Part B of the scheme (dealing with remote licence areas) to make provision for requiring a commercial television broadcasting licensee to surrender one or more analog or digital transmitter licences relating to a remote area if the licensee does not comply with a specified requirement of that Part of the scheme.

Proposed subclause 7(10) will enable Part B of the scheme to make provision for requiring the ACA to vary the conditions of an analog transmitter licence in relation to a remote licence area to ensure that the licence authorises digital transmission of a commercial television broadcasting service in that area.

AMENDMENT (27)


Amendment (27) inserts a new clause 12A of proposed Schedule 4 to the BSA.

Under new clause 12A, in formulating or varying Part B of the commercial television conversion scheme (dealing with remote licence areas), and determining the extent to which the objectives of Part B should differ from those in Part A of the scheme in relation to non-remote licence areas, the ABA will be required to have regard, among other things, to the special circumstances that apply to the transmission of commercial television broadcasting services in remote licence areas.

AMENDMENT (28)


Amendment (28) amends clause 16 of proposed Schedule 4 to the BSA which provides for the ABA to consult with various parties, including the public and commercial and national broadcasters, in formulating or varying the commercial television conversion scheme. There is, however, no express requirement for the ABA to consult with the owners and operators of broadcasting transmission towers.

Digital conversion schemes will affect the legal obligations of owners or operators of broadcasting transmission towers, to the extent that the digital access regime in Part 5 of proposed Schedule 4 to the BSA will apply to the installation of digital transmitters at broadcasting transmission sites.

Amendment (28) will require the ABA, in formulating or varying the commercial television conversion scheme, to make provision for consultation with the owners and operators of broadcasting transmission towers.

Related amendments are Amendments (17), (35) and (51).


AMENDMENTS (29) AND (30)

Amendment (29) inserts a new subclause 17(1A) in proposed Schedule 4 to the BSA. This new subclause provides that the national television conversion scheme is to be divided into two Parts. Part A of the scheme will deal with coverage areas that are not remote licence areas. Part B of the scheme will deal with remote coverage areas. A remote coverage area is a coverage area in relation to a national broadcasting service that corresponds to a remote licence area as defined in proposed clause 4A (see Amendments (10) and (12)).

Amendment (30) is a consequential amendment. It will ensure that only Part A of the scheme is directed towards ensuring the achievement of the policy objectives set out in subclause 17(2) of proposed Schedule 4 to the BSA.


AMENDMENTS (31) AND (32)

Amendments (31) and (32), in conjunction with Amendment (36), will ensure that, in relation to the ABC and SBS, the end of the simulcast period for a metropolitan or regional coverage area (other than a remote coverage area) is the same as that applicable to commercial television broadcasting services in the licence area corresponding to the coverage area concerned.

Subclauses 17(4) and (5) of proposed Schedule 4 to the BSA enable the Minister to determine the simulcast period for national broadcasters in a particular area having regard to the simulcast period in the corresponding licence area for commercial television broadcasting licensees. These provisions were primarily intended to enable the Minister to determine a common end of the simulcast period in a particular licence area and corresponding coverage area. However, the provisions would also give the Minister flexibility to determine an end date for the simulcast period for national broadcasters which was different from that for commercial broadcasters. After further consideration of this matter, it is considered more appropriate to provide certainty that the simulcast period will end on the same day in each licence/coverage area.

Amendment (36) therefore omits subclauses 17(4) and (5). Together with Amendments (31) and (32), this will ensure that the end of the simulcast period for a metropolitan or regional coverage area (other than a remote coverage area) is the same as that applicable to commercial television broadcasting services in the licence area corresponding to the coverage area concerned.

AMENDMENTS (33) AND (34)


Amendments (33) and (34) will bring the objective relating to the level of coverage and potential reception quality in metropolitan coverage areas into line with the corresponding objective for regional coverage areas (other than remote coverage areas).

Paragraph 17(2)(f) of proposed Schedule 4 to the BSA provides that it is an objective of the national television conversion scheme that, throughout the simulcast period for a metropolitan coverage area, the transmission of a national broadcasting service in digital mode in that area should achieve the same level of coverage and potential reception quality as is achieved by the transmission of that service in analog mode in that area.

By contrast, paragraph 17(2)(g) of proposed Schedule 4 to the BSA provides that it is an objective of the scheme that, as soon as is practicable after the start of the simulcast period for a regional coverage area, and throughout the remainder of that period, the transmission of a national television broadcasting service in digital mode in that area should achieve the same level of coverage and potential reception quality as is achieved by the transmission of that service in analog mode in that area.

Amendments (33) and (34) bring the objective relating to the level of coverage and potential reception quality in metropolitan coverage areas into line with the corresponding objective for regional coverage areas (other than remote coverage areas) by omitting paragraph 17(2)(f) and the word ‘regional’ from paragraph 17(2)(g). Paragraph 17(2)(g), as amended, will apply to any coverage area, whether metropolitan or regional, other than a remote coverage area. (The term ‘coverage area’ is defined in clause 2 of proposed Schedule 4 to the BSA to mean a metropolitan coverage area or a regional coverage area.)

The amendments will allow national broadcasters who have commenced digital transmission to install additional digital transmitters over time in metropolitan coverage areas as soon as practicable, in accordance with an implementation plan approved by the ABA, rather than having to install all digital transmitters or to replicate analog coverage from the commencement of digital transmission.

AMENDMENT (35)

One of the policy objectives of the national television conversion scheme is that the ABA is to consult national broadcasters about the implementation of the scheme (paragraph 17(2)(m) of proposed Schedule 4 to the BSA).

The legal obligations of tower owners and operators may be affected by the implementation of the conversion scheme, in so far as they will be subject to the transmitter access regime in proposed Part 5 of Schedule 4 to the BSA if national broadcasters are required to install digital transmitters on broadcasting transmission towers.

It is proposed that paragraph 17(2)(m) of proposed Schedule 4 to the BSA be supplemented by a new consultation requirement in proposed paragraph 17(2)(n). This new requirement will provide that Part A of the national television conversion scheme (dealing with non-remote coverage areas) must, among other things, be directed towards ensuring the achievement of the objective that, if the implementation of the scheme affects particular broadcasting transmission towers, the ABA is to consult the owners and operators of those towers.

Related amendments are Amendments (17), (28) and (51).

AMENDMENT (36)

Amendment (36) will:

• in conjunction with Amendments (31) and (32), ensure that, in relation to the ABC and SBS, the end of the simulcast period for a metropolitan or regional coverage area (other than a remote coverage area) is the same as that applicable to commercial television broadcasting services in the licence area corresponding to the coverage area concerned;

• enable Part A of the national television conversion scheme (dealing with non-remote coverage areas) to allow temporary test transmissions of a national television broadcasting service to be made in digital mode before the commencement of the simulcast period;

• ensure that Part A of the national television conversion scheme may make provision for the location of digital transmitters at different broadcasting transmission sites, where the ABA is satisfied that an alternative location is appropriate;

• enable Part B of the scheme (dealing with remote coverage areas) to make provision for a simulcast period for a remote coverage area; and

• ensure that the simulcasting requirements applying to national broadcasters in non-remote and remote coverage areas will not apply to advertising or sponsorship matter or to any individual television programs or transmission arrangements covered by an ABA determination.

End of the simulcast period

Subclauses 17(4) and (5) of proposed Schedule 4 to the BSA enable the Minister to determine the simulcast period for national broadcasters in a particular area having regard to the simulcast period in the corresponding licence area for commercial television broadcasting licensees. These provisions were primarily intended to enable the Minister to determine a common end of the simulcast period in a particular licence area and corresponding coverage area. However, the provisions would also give the Minister flexibility to determine an end date for the simulcast period for national broadcasters which was different from that for commercial broadcasters. After further consideration of this matter, it is considered more appropriate to provide certainty that the simulcast period will end on the same day in each licence/coverage area.

Amendment (36) therefore omits subclauses 17(4) and (5). Together with Amendments (31) and (32), this will ensure that the end of the simulcast period for a metropolitan or regional coverage area (other than a remote coverage area)
is the same as that applicable to commercial television broadcasting services in the licence area corresponding to the coverage area concerned.

Test transmissions

The first policy objective of the national television conversion scheme is that the ABC and SBS will be required to commence transmitting the national television broadcasting service concerned in digital mode in metropolitan coverage areas on 1 January 2001 (paragraphs 17(2)(a) and 18(3)(a) of proposed Schedule 4 to the BSA).

The second policy objective of the conversion scheme is that the ABC and SBS be required to commence transmitting the national television broadcasting service concerned in digital mode in regional coverage areas on or after 1 January 2001 so that all such areas have digital transmission of the service by 1 January 2004 (paragraphs 17(2)(b) and 18(3)(a) of proposed Schedule 4 to the BSA).

Subclause 17(3) of proposed Schedule 4 to the BSA makes it clear that nothing in subclause 17(2) prevents the conversion scheme from allowing the ABC or SBS to transmit its television programs in digital mode in a regional coverage area during the whole or a part of the period beginning on 1 January 2001 and ending immediately before the start of the simulcast period for that area, provided the transmission complies with such requirements as are ascertained in accordance with the scheme. This provision is intended to ensure that there is sufficient flexibility in the digital conversion scheme to allow the ABC and SBS to commence digital transmission in a regional coverage area before the formal simulcast period begins.

In addition, Amendment (36) will insert a new subclause 17(4) of Schedule 4 to the BSA to permit Part A of the national television conversion scheme (dealing with non-remote coverage areas) to allow the ABC or SBS to conduct temporary test transmissions of its national television service in digital mode during a period beginning before the start of the simulcast period for the coverage area concerned, so long as the transmissions comply with such requirements as are ascertained in accordance with Part A of the scheme and occur during a period ascertained in accordance with that Part. This will allow the ABC and SBS to trial digital transmissions for periods approved by the ABA, before commencing permanent digital transmission.

Item 3 of Schedule 1 to the Bill will also enable the ABA to make television spectrum in the broadcasting services bands available for allocation for the transmission of datacasting services on a temporary basis.

Location of digital transmitters

One of the objectives of the national television conversion scheme is that, during the simulcast period for a coverage area, there should, as far as practicable, be co-location of digital and analog transmitters (paragraph 17(2)(h) of proposed Schedule 4 to the BSA). This is intended to ensure that national television broadcasters can be approved by the ABA to use existing transmission infrastructure to transmit their television programs in digital mode.

The co-location objective is expressed in terms which recognise that there will be occasions where national broadcasters will not be able to use adjacent channels and co-location of analog and digital transmitters will therefore not be practicable.

However, to ensure that the co-location objective is not unduly restrictive, proposed subclause 17(5) makes it clear that nothing in the analog co-location objective in proposed paragraph 17(2)(h) prevents the national television conversion scheme making provision for the location of digital transmitters at other broadcasting transmission sites, where the ABA is satisfied that an alternative location is appropriate having regard to the other objectives in subclause 17(2), to the costs involved for the national broadcaster concerned and to such other matters as the ABA considers relevant.

Remote coverage areas––simulcast period

Proposed subclause 17(6) provides that Part B of the national television conversion scheme (dealing with remote coverage areas) may make provision for a transitional period for a specified remote coverage area, that is to be known as the ‘simulcast period’, throughout which the national broadcaster is required to transmit simultaneously the national television broadcasting service concerned in both analog mode and digital mode in that area.

Exemption from the simulcasting requirements for advertising or sponsorship matter and television programs covered by an ABA determination

Amendment (36) also inserts a new subclauses 17(7) and (12) of proposed Schedule 4 to the BSA to the effect that the simulcasting requirements in paragraph 17(2)(c) and subclause 17(6) of proposed Schedule 4 to the BSA do not apply in relation to the broadcast of television programs by the ABC or SBS or the broadcast of advertising or sponsorship matter by the SBS, whether or not of a commercial kind, covered by an ABA determination, provided the ABC or SBS complies with any conditions specified in the determination.

The definition of ‘program’ in s. 6 of the BSA, in relation to a broadcasting service, is defined to include advertising or sponsorship matter, whether or not of a commercial kind. The SBS is permitted to broadcast advertisements and sponsorship announcements, other than election advertisements, for up to five minutes in any hour; and which must occur between programs, or in natural breaks within programs: Special Broadcasting Service Act 1991, ss. 45 and 70C. The ABC is not permitted to broadcast advertisements: Australian Broadcasting Corporation Act, s 31.

Proposed subclause 17(8), when read with subsection 46(2) of the Acts Interpretation Act 1901 provides, in effect, that the ABA’s determination in relation to advertising or sponsorship matter transmitted by the SBS may apply to specified advertising or sponsorship matter during a specified period (which may consist of the simulcast period for the coverage area concerned) or to a class of advertising or sponsorship matter transmitted during that period. The specified advertising or sponsorship matter may consist of all advertising or sponsorship matter transmitted by the SBS.

Proposed subclause 17(9), when read with subsection 46(2) of the Acts Interpretation Act 1901 provides, in effect, that the ABA’s determination in relation to television programs may exempt specified television programs or specified classes of television programs transmitted by a specified national broadcaster or a specified class of national broadcasters during a specified period. This would, for example, allow the ABA to approve ‘one-off’ programs, or arrangements for digital transmission of a television ‘network feed’.

However, the ABA will not be permitted to make a determination under either subclause 17(8) or (9) unless it is satisfied that, on the assumption that the determination were made, the digital version of the national television broadcasting service concerned will be ‘substantially the same’ as the analog version of that service (proposed subclause 17(10)).

The provisions in subsections 33(3), (3A) and (3B) of the Acts Interpretation Act 1901 in relation to instruments will also apply to the ABA’s determination under subclauses 17(8) and (9). This will allow the ABA, for example, to revoke or vary any such determination in the same manner and subject to the same conditions as applied to the making of the original determination (see subclause 14(2) of proposed Schedule 4 to the BSA).

Proposed subclause 17(11) provides that the ABA’s determination under subclause 17(8) or (9) is a disallowable instrument. The determination must therefore be notified in the Commonwealth Gazette, tabled in the Parliament and will be subject to Parliamentary disallowance.

AMENDMENTS (37) TO (41)

Amendments (37) to (41) are consequential upon the proposed division of the national television conversion scheme into two Parts, namely Part A, dealing with non-remote coverage areas, and Part B, dealing with remote coverage areas (see Amendment (29)).

Amendments (37) to (40) relate to subclause 18(3) of proposed Schedule 4 which deals with the matters the Minister must have regard to in deciding whether to approve the ABC’s or SBS’s implementation plan relating to the conversion from analog to digital transmission. The amendments will ensure that subclause 18(3) applies only to an implementation plan that relates to a non-remote coverage area.

Amendment (41) will ensure that, in deciding whether to approve an implementation plan that relates to a remote coverage area, the Minister must have regard to the special circumstances that apply to the transmission of national television broadcasting services in that area. As a result of paragraph 18(3)(c) of proposed Schedule 4 to the BSA, the Minister must also have regard to such other matters (if any) as the Minister considers relevant.


AMENDMENT (42)


Subclause 21(2) of proposed Schedule 4 to the BSA requires the national television conversion scheme to make provision for requiring a national broadcaster to surrender its digital transmitter licence or licences if:

(a) it does not commence digital transmission in accordance with paragraph 17(2)(a) or (b) of proposed Schedule 4 to the BSA; or

(b) it commences digital transmission in accordance with those requirements but does not continue digital transmission throughout the simulcast period for the coverage area concerned;

and it does not satisfy the ABA that there are ‘exceptional circumstances’.

The effect of Amendment (42) is that this requirement will continue to apply where a national broadcaster fails to commence digital transmission in a non-remote coverage area (new subclause 21(2)) but not where the national broadcaster ceases digital transmission during the simulcast period for a non-remote coverage area (new subclause 21(2A)). Amendment (42) will enable the ABA to give a national television broadcaster that has complied with commencement obligations an opportunity to rectify a subsequent breach of its digital transmission requirements, before being required to surrender its digital transmitter licence or licences.

Under new subclause 21(2A), Part A of the conversion scheme (dealing with non-remote coverage areas) must make provision for requiring the ABA, before taking action to require a national broadcaster to surrender its digital transmitter licence or licences because of a failure to continue to transmit in digital mode during the simulcast period, to give a written notice to the national broadcaster directing it to resume digital transmission in the non-remote coverage area concerned within a period not exceeding one month and to continue digital transmission throughout the simulcast period for that area. If the national broadcaster does not comply with such a direction and does not satisfy the ABA that there are exceptional circumstances, it will be required to surrender its digital transmitter licence or licences. If the national broadcaster does comply with the direction, it will not be required to surrender its digital transmitter licence or licences.

AMENDMENTS (43) TO (45)


Amendments (43) to (45) are consequential upon the proposed division of the national television conversion scheme into two Parts, namely Part A, dealing with non-remote coverage areas, and Part B, dealing with remote coverage areas (see Amendment (29)).

Amendments (43) to (45) will ensure that subclauses 21(3) to (5) of proposed Schedule 4 to the BSA, dealing with the return of spectrum at the end of the simulcast period, will apply only in relation to Part A of the scheme.

Proposed subclause 21(9) (Amendment (49)) will enable Part B of the scheme to make provision for requiring a national broadcaster to surrender one or more analog or digital transmitter licences relating to a remote coverage area if the national broadcaster does not comply with a specified requirement of that Part of the scheme.


AMENDMENT (46)


Subclause 21(6) of proposed Schedule 4 to the BSA provides that the national television conversion scheme must make provision for requiring a national broadcaster who breaches a High Definition Television (HDTV) standard under subclause 34(1) of proposed Schedule 4 to the BSA to surrender its digital transmitter licence or digital transmitter licences for that area, unless the national broadcaster satisfies the ABA that there are exceptional circumstances.

The effect of Amendment (46) is to enable the ABA to give a national broadcaster that has complied with commencement obligations an opportunity to rectify a subsequent breach of an HDTV standard, before being required to surrender its digital transmitter licence or licences.

Under new subclause 21(6), Part A of the conversion scheme (dealing with non-remote coverage areas) must make provision for requiring the ABA, before taking action to require a national broadcaster to surrender its digital transmitter licence or licences because of a failure to comply with an HDTV standard during the simulcast period, to give a written notice to the national broadcaster directing it to comply with the standard in the coverage area concerned within a period not exceeding one month. If the national broadcaster does not comply with such a direction and does not satisfy the ABA that there are exceptional circumstances, it will be required to surrender its digital transmitter licence or licences. If the national broadcaster does comply with the direction, it will not be required to surrender its digital transmitter licence or licences.

AMENDMENT (47)


Amendment (47) makes a technical amendment to subclause 21(7) of proposed Schedule 4 to the BSA to give effect to its intention.

Subclause 21(7) provides that if a national television broadcaster has failed to meet an HDTV standard and is required to surrender a digital transmitter licence, the national television conversion scheme may make provision for requiring the ACA to issue a replacement transmitter licence provided the amount of bandwidth covered by the replacement licence is less than the amount covered by the surrendered licence.

Amendment (47) amends the second sentence of subclause 21(7). The intention behind this sentence is to enable the legislative scheme formulated by the ABA to require a national broadcaster who has breached HDTV standards to operate a digital transmitter that will only be sufficient to provide television programs in standard definition format. This intention is not, however, achieved by the current wording of the sentence. If the ACA were to issue a replacement digital transmitter licence covering less bandwidth than the surrendered licence, it would not be technically possible for the national broadcaster to operate a digital transmitter to provide television programs in standard definition format, as the available transmitter and reception equipment would all be designed to operate on a 7 MHz band. A restriction which limits the national broadcaster must therefore be achieved by a restriction on the transmission capacity available to that broadcaster, such that the broadcaster is restricted to transmitting only sufficient data to provide a standard definition television (SDTV) signal.

The second sentence of subclause 21(7) will therefore be replaced by a sentence to the effect that the amount of transmission capacity covered by the replacement licence must be less than the amount of transmission capacity covered by the surrendered licence. The concept of ‘transmission capacity’ is used in paragraph 17(2)(l) of proposed Schedule 4 to the BSA.

AMENDMENT (48)


Amendment (48) is consequential upon the proposed division of the national television conversion scheme into two Parts, namely Part A, dealing with non-remote coverage areas, and Part B, dealing with remote coverage areas (see Amendment (29)).

Amendment (48) will ensure that subclause 21(8) of proposed Schedule 4 to the BSA, dealing with the variation of an analog transmitter licence to allow digital transmission, will apply only in relation to Part A of the scheme.

Proposed subclause 21(10) (Amendment (49)) deals with variation of an analog transmitter licence in relation to a remote coverage area to allow digital transmission in that area.

AMENDMENT (49)

Amendment (49) inserts proposed subclauses 21(9) and (10) in proposed Schedule 4 to the BSA in relation to remote coverage areas.

Proposed subclause 21(9) will enable Part B of the scheme (dealing with remote coverage areas) to make provision for requiring a national broadcaster to surrender one or more analog or digital transmitter licences relating to a remote coverage area if the national broadcaster does not comply with a specified requirement of that Part of the scheme.

Proposed subclause 21(10) will enable Part B of the scheme to make provision for requiring the ACA to vary the conditions of an analog transmitter licence in relation to a remote coverage area to ensure that the licence authorises digital transmission of a national television broadcasting service in that area.

AMENDMENT (50)


Amendment (50) inserts a new clause 25A of proposed Schedule 4 to the BSA.

Under new clause 25A, in formulating or varying Part B of the national television conversion scheme (dealing with remote coverage areas), and determining the extent to which the objectives of Part B should differ from those in Part A of the scheme in relation to non-remote coverage areas, the ABA will be required to have regard, among other things, to the special circumstances that apply to the transmission of national television broadcasting services in remote coverage areas.

AMENDMENT (51)


Amendment (51) amends clause 30 of proposed Schedule 4 to the BSA which provides for the ABA to consult with various parties, including the public and national and commercial broadcasters, in formulating or varying the national television conversion scheme. There is, however, no express requirement for the ABA to consult with the owners and operators of broadcasting transmission towers.

Digital conversion schemes will affect the legal obligations of owners or operators of broadcasting transmission towers, to the extent that the digital access regime in Part 5 of proposed Schedule 4 to the BSA will apply to the installation of digital transmitters at broadcasting transmission sites.

Amendment (51) will require the ABA, in formulating or varying the national television conversion scheme, to make provision for consultation with the owners and operators of broadcasting transmission towers.

Related amendments are Amendments (17), (28) and (35).

AMENDMENT (52)

Amendment (52) makes a consequential amendment to clause 32 of proposed Schedule 4 to the BSA.

It is consequential upon proposed subclause 17(6) of Schedule 4 to the BSA (Amendment (36)) which provides that Part B of the national television conversion scheme may make provision for a simulcast period for a specified remote coverage area, throughout which the national broadcaster is required to transmit simultaneously the national broadcasting service concerned in both analog mode and digital mode in that area.

AMENDMENT (53)


Amendment (53) makes a technical amendment to paragraph 32(b) of proposed Schedule 4 to the BSA which deals with simulcasting requirements for national broadcasters.

The intention behind clause 32 is that a national broadcaster should broadcast the same program in digital mode as in analog mode – this is achieved by paragraph 32(a).

Paragraph 32(b) is intended to enable a national broadcaster who is simultaneously transmitting a program in both analog and digital mode (in accordance with paragraph 32(a)) to transmit an additional program in digital mode using the multi-channel capacity of digital transmission, if the program is treated by the regulations as ‘incidental and directly linked’ to the program that is being broadcast at that time in both analog and digital mode.

However, a possible interpretation of paragraph 32(b) is that a national broadcaster that is not complying with the simulcasting requirements in paragraph 32(a) could broadcast a program in digital mode which is incidental and directly linked to a different program that is only being broadcast in analog mode.

Amendment (53) amends paragraph 32(b) to make it clear that a program can only be taken to be incidental and directly linked to a program that is being simultaneously transmitted in both analog and digital mode, in accordance with paragraph 32(a).

AMENDMENT (54)

Amendment (54) makes an amendment to clause 32 of proposed Schedule 4 to the BSA, consequential upon proposed new subclause 17(7) of Schedule 4 (see Amendment (36)). The effect of new subclause 17(7) is that the simulcasting requirements in paragraph 17(2)(c) of proposed Schedule 4 to the BSA and in proposed subclause 17(6) of that Schedule will not apply to advertising or sponsorship matter or to any television programs covered by an ABA determination.

Amendment (54) applies new subclause 17(7) to the simulcasting requirements in clause 32 of proposed Schedule 4 to the BSA. This will ensure that those simulcasting requirements will also not apply to advertising or sponsorship matter or to any television programs covered by an ABA determination.


AMENDMENT (55)

Amendment (55) makes a technical amendment to clause 33 of proposed Schedule 4 to the BSA.

Clause 33 provides certain restrictions on the use of digital transmitters (eg. a prohibition on using digital transmitters to provide an open narrowcasting television service). Under paragraph 32(c) of proposed Schedule 4 to the BSA, the ABC and SBS will be able to be authorised by regulations to transmit multi-channel programming if the programs are of a kind exempted by regulations.

There may be a potential conflict between clause 33 and any regulations made under paragraph 32(c) (ie, the ABC or SBS may be in breach of the narrowcasting prohibition in clause 33, notwithstanding it is able to transmit some multi-channel programming under paragraph 32(c)).

For avoidance of doubt, Amendment (55) makes it clear that the restrictions in clause 33 do not prevent the ABC or SBS doing anything they are authorised to do under paragraph 32(1)(c).


AMENDMENTS (56) TO (58)

Under subclause 34(1) of proposed Schedule 4 to the BSA, regulations will be required to be made to determine standards that require commercial television broadcasting licensees and the ABC and SBS to meet specified goals or targets in relation to the extent to which television programs, or specified kinds of television programs, are transmitted in accordance with a specified High Definition Television (HDTV) format for the transmission of television programs in digital mode.

Under subclause 34(2), regulations will also be able to determine non-HDTV standards that are to be observed by free to air television broadcasters in relation to the format in which television programs are to be transmitted in digital mode.

It is possible that an HDTV standard will require broadcasters to comply with one or more of a range of HDTV formats.

Amendment (56) amends subclause 34(1) to clarify that digital television format standards made under that clause may relate to a range of format standards.

Amendments (57) and (58) make further technical amendments to clause 34 and deal with HDTV standards in remote areas.

Technical amendments

Under subclauses 7(7) and 21(7) of proposed Schedule 4 to the BSA, as proposed to be amended, if a licensee or national broadcaster has failed to meet HDTV standards and is required to surrender a digital transmitter licence, the conversion schemes may make provision for requiring the ACA to issue a replacement transmitter licence provided the amount of transmission capacity covered by the replacement licence is less than the amount covered by the surrendered licence. The intention is to enable the legislative scheme formulated by the ABA to require a licensee or national broadcaster who has breached HDTV standards to operate a digital transmitter that will only be sufficient to provide television programs in standard definition (SDTV) format.

Amendment (57) (proposed subclauses 34(1B) and (1C)) and Amendment 58 (proposed subclauses 34(2A) and (2B)) make it clear that the digital television format standards determined by the regulations will not apply if:

(a) a commercial television broadcasting licensee or a national broadcaster is no longer in a position to comply with such standards because its digital transmitter licence was forced to be surrendered; or

(b) subclauses 7(7) and 21(7) of proposed Schedule 4 to the BSA apply and a licensee or national broadcaster is required to operate a digital transmitter that will only be sufficient to provide television programs in SDTV format rather than HDTV format.

HDTV standards––remote areas

Proposed subclause 34(1A) of Schedule 4 to the BSA (to be inserted by Amendment (57)) provides that the HDTV requirements in subclause 34(1) do not apply in relation to the transmission of a commercial television broadcasting service or a national television broadcasting service in a remote licence or coverage area.

Proposed subclause 34(1D) allows regulations to be made to determine standards requiring commercial television broadcasting licensees and national broadcasters to meet specified goals or targets in remote areas in relation to the extent to which television programs, or specified kinds of television programs, are transmitted in accordance with one or more specified HDTV formats relating to the transmission of television programs in digital mode.

Proposed subclauses 34(1E) and (1F) provide that subclause 34(1D) will not apply in relation to the transmission of a commercial television broadcasting service or a national television broadcasting service in a licence or coverage area unless that area is a remote licence or coverage area, that service is transmitted in digital mode in that area and the service is not transmitted using a transmitter operated under a transmitter licence issued under subclause 7(7) or 21(7) (which will not permit transmission in HDTV format).

AMENDMENT (59)


Subclause 35(1) of proposed Schedule 4 to the BSA requires regulations to be developed to determine standards that are to be observed by free to air television broadcasters in relation to the captioning of television programs for the deaf and hearing impaired.

The term ‘program’ is defined in s. 6 of the BSA to include advertising or sponsorship matter, whether or not of a commercial kind. It is proposed that the captioning of commercial advertisements and sponsorship be a decision for the advertiser rather than the broadcaster and therefore be exempted from the captioning requirements in clause 35.

Accordingly, Amendment (59) inserts a new subclause 35(8) which provides that in clause 35 the term ‘program’ does not include advertising or sponsorship matter (whether or not of a commercial kind).

The following legislative provisions are relevant to this proposed amendment:

(a) The BSA and related codes of practice include rules relating to the amount, content and placement of broadcast advertising.

(b) The SBS is permitted to broadcast advertisements and sponsorship announcements, other than election advertisements, for up to five minutes in any hour; and which must occur between programs, or in natural breaks within programs: Special Broadcasting Service Act 1991, ss. 45 and 70C.

(c) The ABC is not permitted to broadcast advertisements: Australian Broadcasting Corporation Act, s 31.

AMENDMENTS (60) TO (63)

Clauses 36 and 37 of proposed Schedule 4 to the BSA provide that technical standards for digital transmission of television broadcasting services and standards in relation to the provision of datacasting services in digital mode can be determined in regulations.

Amendments (60) to (63) augment the standard making provisions in clauses 36 and 37 by requiring that standards which deal with conditional access systems be directed towards the objective that, as far as practicable, those systems should be open to all providers of broadcasting services or datacasting services.

Conditional access systems relate to the additional layer of encryption coding that is used to restrict reception of a broadcast to a user or group of users (such as subscribers to a pay TV or data service). Decryption can be provided via hardware or software in the reception device, which may incorporate use of a smart card.

Amendments (60) and (61) amend clause 36.

Proposed subclause 36(1A) (inserted by Amendment (60)) provides that to the extent that technical standards for digital transmission of television broadcasting services determined under subclause 36(1) deal with conditional access systems, they must be directed towards ensuring the achievement of the policy objective that, as far as is practicable, those systems should be open to all providers of television broadcasting services transmitted in digital mode using the broadcasting services bands.

Amendment (61) inserts a new definition of ‘conditional access system’ in proposed subclause 36(4). It provides that, in clause 36, ‘conditional access system’ means a conditional access system that:

(a) relates to the provision of one or more television broadcasting services transmitted in digital mode using the broadcasting services bands; and

(b) allows a provider of a television broadcasting service transmitted in digital mode using the broadcasting services bands to determine whether an end-user is able to receive a particular television service transmitted in digital mode using the broadcasting services bands.

Amendments (62) and (63) amend clause 37.

Proposed subclause 37(1A) (inserted by Amendment (62)) provides that to the extent that datacasting standards determined under subclause 37(1) deal with conditional access systems, they must be directed towards ensuring the achievement of the policy objective that, as far as is practicable, those systems should be open to all providers of datacasting services transmitted in digital mode.

Amendment (63) inserts a new definition of ‘conditional access system’ in proposed subclause 37(4). It provides that, in clause 37, ‘conditional access system’ means a conditional access system that:

(a) relates to the provision of one or more datacasting services transmitted in digital mode; and

(b) allows a provider of a datacasting service transmitted in digital mode to determine whether an end-user is able to receive a particular datacasting service transmitted in digital mode.

AMENDMENTS (64) AND (65)

Amendments (64) and (65) are consequential upon Amendments (8) and (9) which insert the definitions of ‘broadcasting transmission tower’ and ‘radiocommunication’ in clause 2 of proposed Schedule 4 to the BSA. The term ‘radiocommunication’, in its plural form, is used in the definition of ‘broadcasting transmission tower’ inserted by Amendment (8). The term ‘broadcasting transmission tower’ is used in Amendments (28) and (35) as well as in clauses 42 to 44 of proposed Schedule 4 to the BSA dealing with access to broadcasting transmission towers and sites.

AMENDMENTS (66) TO (68)


Amendments (66) and (68) will ensure that the access requirements in Part 5 of proposed Schedule 4 to the BSA do not give a commercial television broadcasting licensee or a national broadcaster an access right in connection with the transmission of another person’s television broadcasting services in digital mode.

Paragraphs 42(2)(a) and 43(2)(a) of proposed Schedule 4 to the BSA provide that the owner or operator of a broadcasting transmission tower is not required to comply with a request for access under subclause 42(1) or 43(1) unless the access is provided for the sole purpose of enabling the access seeker to install or maintain a transmitter and/or associated facilities used, or for use, wholly or principally in connection with the transmission of a television broadcasting service in digital mode.

As these provisions are currently worded, they could be interpreted to give a commercial television broadcasting licensee or a national broadcaster an access right in connection with the transmission of another person’s television broadcasting service in digital mode. This is not intended. The access right should only relate to the transmission by a commercial television broadcasting licensee or a national broadcaster of one or more of its own television broadcasting services in digital mode.

Amendment (67) brings the wording of subclause 43(1) more closely into line with the corresponding provision in the Telecommunications Act 1997 (see paragraph 34(1)(a) of Schedule 1 to that Act).

The provisions in clause 43 require a person who is the owner of a broadcasting transmission tower, if requested to do so by a commercial television broadcasting licensee or a national broadcaster, to provide access to the transmission site on which the tower is located. The owner of a site may, however, be different from the owner of the tower.

Amendment (67) will make it clear that the obligation to provide access to the site applies to a tower owner or operator that itself has such access on the basis that:

(a) the site is owned, occupied or controlled by the owner or operator of the tower; or

(b) the owner or operator of the tower has a right (whether conditional or unconditional) to use the site.

AMENDMENT (69)

Clause 45 of proposed Schedule 4 to the BSA provides for a Code to be made by the ACCC setting out conditions that access seekers and owners and operators of a broadcasting transmission tower are to comply with in relation to the provision of access under Part 5 of proposed Schedule 4 to the BSA.

While it could be reasonably expected that the ACCC would consult industry participants before making a code under clause 45, it is proposed to amend clause 45 to include express provisions to this effect.

Amendment (69) inserts a new subclause 45(1A) which will require the ACCC, before making a Code relating to access under clause 45, to consult with:

(a) commercial television broadcasting licensees;

(b) national broadcasters; and

(c) owners and operators of broadcasting transmission towers.


AMENDMENT (70)

Amendment (70) makes an amendment to paragraph 57(1)(d) of proposed Schedule 4 to the BSA, consequential upon Amendments (31), (32) and (36).

Paragraph 57(1)(d) provides that before 31 December 2005 the Minister will be required to arrange for a review to be conducted into whether the simulcasting requirements introduced by the Bill (including the content of any Ministerial determination under paragraph 17(2)(c)(ii) about the length of the simulcast period for the national television conversion scheme) should be amended or repealed.

The effect of Amendments (31), (32) and (36) will be that there will no longer be any Ministerial determination about the length of the simulcast period for the national television conversion scheme. These amendments will ensure that the end of the simulcast period for a metropolitan or regional coverage area is the same as that applicable to commercial television broadcasting services in the licence area corresponding to the coverage area concerned.

Accordingly, Amendment (70) omits the reference to a review being conducted into the content of any Ministerial determination under paragraph 17(2)(c)(ii) about the length of the simulcast period for the national television conversion scheme.

AMENDMENTS (71) AND (72)


Clause 58 of proposed Schedule 4 to the BSA provides that the ABA will be able to make written determinations:

(a) fixing charges for any matter in relation to which expenses are incurred by the ABA under the commercial television conversion scheme provided for in clause 5 of proposed Schedule 4 to the BSA or the ABC/SBS television conversion scheme provided for in clause 17 of that Schedule; and

(b) specifying the persons by whom, and the times when, the charges are payable.

Provision is made in subclauses 42(5) and 43(5) of proposed Schedule 4 for the owner or operator of a broadcasting transmission tower to seek a written certificate from the ABA that it is not technically feasible for the owner or operator to comply with the obligation to provide a broadcaster with requested access to the tower or transmission site for the purpose of installing a digital transmitter.

Amendments (71) and (72) expand the operation of clause 58 to permit the ABA, by written instrument, to make determinations fixing charges for any matter in relation to which expenses are incurred by the ABA under subclauses 42(5) and 43(5) and specifying the persons by whom, and the times when, the charges are payable.


AMENDMENTS (73) AND (74)


Amendments (73) and (74) amend clause 59 of proposed Schedule 4 to the BSA. These amendments are consequential upon Amendments (19), (23), (42) and (46).

The effect of Amendments (73) and (74) is that:

(a) a commercial television broadcasting licensee will be able to apply to the AAT for a review of an ABA decision under the commercial television conversion scheme that the licensee has failed to satisfy the ABA that exceptional circumstances exist as mentioned in subclauses 7(2), (2A) or (6) (which deal with the surrender of transmitter licences by commercial television broadcasting licensees); and

(b) a national broadcaster will be able to apply to the AAT for a review of an ABA decision under the national television conversion scheme that the broadcaster has failed to satisfy the ABA that exceptional circumstances exist as mentioned in subclauses 21(2), (2A) or (6) (which deal with the surrender of transmitter licences by national broadcasters).

 


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