Comparisons are often made between New Zealand's broadcasting regulatory framework and the frameworks applied by the United Kingdom and Australia. The purpose of this appendix is to record key features of the current broadcasting regulatory frameworks in the United Kingdom and Australia.

Note, however, that regulatory interventions in both countries are subject to change as debate continues as their appropriateness and effectiveness in light of digital and convergence developments. Where applicable, the features of the UK and Australian regulatory experience will inform the subsequent papers being prepared by the officials committee.

In summary, the relevant features of the UK and Australian frameworks are:

• Both seek to achieve their content objectives through a mixture of state-owned broadcasters, quota, and conditions attached to broadcasting licences. New Zealand pursues its content outcomes through NZ On Air, Te Manga Paho and the Radio New Zealand Charter.

• Both supplement their generic competition policy framework with broadcasting specific regulation such as foreign and cross-media ownership restrictions. New Zealand relies on the competition policy framework provided by the Commerce Act.

• They have adopted different approaches to managing the transition to digital and ending analogue television broadcasts. Australia has mandated conversion and simulcast requirements, whereas the UK has indicated that digital transmission services must meet certain criteria (i.e. coverage and cost) before it will consider analogue switch-off.

United Kingdom
Regulatory Framework

The Broadcasting Act 1990 (modified by the Broadcasting Act 1996) regulates television and radio services. The objectives of the BBC, as defined in its Charter, are very broad and include provision of public and commercial broadcasting services and a plethora of other services and activities (e.g. concerts, print media, wireless telegraphy, research and development).

The Broadcasting Act 1996 established the regulatory framework for the development of digital terrestrial broadcasting, including liberalised media ownership regulations to allow greater consolidation and cross ownership. The current range of regulatory interventions include:

Must Carry Rules. Digital cable operators are required to carry specified free to air broadcasts. Similar rules also apply to certain non-digital cable operators.

Foreign Ownership Rules. Only UK and EU entities may hold licences for analogue television, domestic satellite and national radio services. No such restrictions apply to licences to provide cable, non-domestic satellite or digital terrestrial services.

Cross Media Rules. No newspaper group with more than 20% of total national circulation may hold television licences (or own more than 20% of a company with such a licence).

Competition Rules. No one entity, excluding public service broadcasters, can control licences for more than 15% of the total analogue television audience. A similar points based scheme applies for digital television. Similar rules apply to radio.

The broadcasting regulator is required to make every effort to ensure holders of commercial television and local radio service licences do not obtain cable service licences.

Telecommunication companies with revenue exceeding £1 billion are prevented from holding licences to operate television, domestic satellite, national radio and cable services. Holders of such services are similarly prevented from controlling a telecommunications operator with turnover exceeding £2 billion per annum.

Quota. There are varying quota rules. For example, majority of satellite television time must be devoted to programming of European origin, and at least 65% of programming on Channel 3 regional licences must be produced or commissioned by the licensee.

Analogue Switch Off. No mandated date. A recent statement indicates two tests must be met before switch off would occur: the main free-to-air channels had to reach virtually everyone in the UK; and 95% of consumers must have access to digital equipment.

Australia
Regulatory Framework

The Broadcasting Services Act 1992 establishes the regulatory framework for the broadcasting sector. It applies to free to air radio and television, pay TV, digital broadcasting and Internet content. The Act sets out the objectives of the regulatory regime, which include promoting a diverse range services, facilitating the development of the broadcasting industry, ensuring that Australians have effective control over the more influential broadcasting services, and developing and reflecting a sense of Australian identity and cultural diversity.

The Act includes a regulatory policy statement outlining Parliament's intention to achieve its regulatory objectives without imposing unnecessary financial and administrative burdens on providers of broadcasting services. The regulatory interventions for the broadcasting industry include:

Foreign Ownership Rules. Foreign control of commercial television broadcasting licences is prohibited. This does not apply to radio.

Cross Media Rules. These are complex rules prohibiting ownership of multiple media (i.e. television, radio and newspaper) within the same geographical market.

(the Australian Productivity Commission recently reported that these specific ownership rules are now out of step with Australia's competition policy settings)

Quota. Australia operates a genre-specific quota system. Compliance with content quotas is a condition of holding a broadcasting licence.

The Australian Government also recently introduced further regulatory interventions to promote the transition to digital transmission:

Mandatory Digital Transmission. Digital transmission is to commence on 1 January 2001 to approximately 80% of the population, with full roll out required within 3 years.

Analogue Switch Off. Initial policies to switch off analogue by a certain date have been abandoned. Broadcasters must now simulcast until 2007 and achieve the same level of coverage and potential reception quality in digital as exists for analogue transmission.

Technology Standards. Australia has adopted the European digital transmission standard DVBT. The Government has mandated broadcasters to transmit at least 20 hours per week in high-definition format.

Assistance to Existing Broadcasters. To facilitate the conversion to digital, existing broadcasters are to be insulated from competition by banning new entrants until the end of 2006. This requires complex rules constraining the development of certain technologies and the convergence of television, telecommunications and Internet. Free to air broadcasters also received additional spectrum licences but are prohibited from providing multi-channelling (to protect subscription services).

There has been considerable, and ongoing, debate surrounding these interventions. Some create impediments to growth while others will be increasingly difficult to enforce. Accordingly, the types of interventions are likely to change as the transition to digital progresses.

APPENDIX 2: BROADCAST TRANSMISSION AND DELIVERY METHODS

1. Terrestrial/satellite transmission

2. Cable transmission