Bills Digest No. 58 2002-03
Broadcasting Legislation Amendment Bill (No.1) 2002
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Broadcasting Legislation Amendment Bill (No.1)
2002
Date Introduced:
25 September
2002
House:
Senate
Portfolio:
Communications, Information Technology and the
Arts
Commencement:
On Royal Assent
To delay the commencement of high
definition television obligations on broadcasters for six months until
1 July 2003.
The free-to-air television services that have historically
been received by Australians are terrestrial analog broadcasts: the signal
is transmitted from towers to home receivers in the form of a continuous
wave. With digital broadcasting, the signal is in the form of discrete
bits of information. A major advantage of the digital signal is that digital
data stream can be compressed. As the available spectrum is used more
efficiently, digital broadcasting offers the potential for the development
of other services such as interactive television and multi-channelling.(2)
In addition, background noise and interference can be more readily removed
to improve video and audio reception. The move to digital requires both
broadcasters and viewers to upgrade their technology.
In March 1998 the Government announced the regulatory
framework that would apply to the transition to digital television and
expressed its commitment to high definition digital broadcasting.(3)
The initial provisions for the transmission of digital television were
inserted in the Broadcasting Services Act 1992 (BSA) by the Television
Broadcasting Services (Digital Conversion) Act 1998.(4)
Following a number of reviews of technical and policy
matters relating to digital broadcasting, the Broadcasting Services
Amendment (Digital Television and Datacasting) Act 2000(5)
(the DTD Act) was passed which refined arrangements for the introduction
of digital television. The most significant of these were:
- the requirement for broadcasters to transmit a standard definition
digital television (SDTV) signal at all times and at least 20 hours
per week of high definition digital broadcasts (HDTV)(6)
in addition to the existing analog signal,(7) and
- provisions to enable the ABC and SBS to multi-channel(8)
certain kinds of programs.
Under provisions inserted by the DTD Act all mainland
capital city stations had to begin transmitting full-time SDTV services
from 1 January 2001, although the analog signals will be simulcast until
at least 31 December 2008. The requirement for 20 hours of HDTV is scheduled
to take effect from 1 January 2003.
The requirement for mandatory HDTV transmission has been
widely criticised.(9) The Productivity Commission in its March
2000 report on the broadcasting industry highlighted many of the points
made by opponents of the regulatory regime.(10)
The Commission argued that HDTV television sets would
be expensive and that HDTV will be a ‘premium service for a small number
of viewers’.(11) It noted however that, the costs of HDTV production,
distribution and transmission will be borne by all broadcasters, advertisers
and ultimately the community as a whole. The Commission also observed
that the mandatory HDTV policy may constrain the emergence of new services
because it consumes more spectrum than SDTV and could prolong the conversion
process. The Productivity Commission recommended that a new regulatory
framework would facilitate consumers' adoption of digital television and,
in particular, that:
- HDTV should not be mandated but should be left to the market, and
- multi-channelling by the commercial and national broadcasters should
be permitted.
The take-up of digital television has not been rapid.
Industry sources state that since digital broadcasting commenced around
20 000 to 30 000 ‘digital devices’ have been sold.(12) This
term is used to describe set top boxes which are capable of decoding SDTV
or HDTV digital transmissions(13) and televisions that include
a digital receiver.(14) According to the Explanatory Memorandum
around 16 000 high definition set top boxes have been sold in Australia.
To put these figures in some context, it has been estimated that one million
television sets are sold annually in Australia.(15) HDTV set
top boxes cost between $800 and $900.(16) Television sets that
are capable of displaying high definition transmissions if they are used
in conjunction with a set top box cost around $4000 to $5000.
The television manufacturing industry has claimed that
take up of HDTV has been hampered by the fact that there are presently
very few hours of HDTV being broadcast. The Government has stated that
the amount of high definition content broadcast by Australian commercial
networks has varied between one hour per week to ten hours per week.(17)
Manufacturers have argued that in reliance on the Government’s stated
policy they have made large investments in the technology and related
costs. Accordingly, they have called for policy certainty around the implementation
of high definition technology in Australia and a commitment from the networks
to increasing transmission hours of high definition content.(18)
In its 2001 election policy Broadcasting for the 21st
Century the Government acknowledged that broadcasters need flexibility
in the transition to digital television. To further this objective the
Government stated that it would consider legislative amendments to:
- enable broadcasters to meet their 20 hour per week HDTV requirement
on annualised basis (ie 1040 hours per year), and
- include advertising time in the quota.(19)
On 27 August 2002 the Minister announced that the deadline
for the commencement of the HDTV quota would be extended. The Minister
stated that it was:
now highly unlikely that any legislative amendments
to provide the flexibility committed to by the Coalition can be put
in place before the HDTV quota obligation comes into effect for some
broadcasters.(20)
Despite the delay the Minister has stated that the Government
remains ‘strongly committed to HDTV’.
Clause 60A of Schedule 4 BSA requires that a review
of the operation of the HDTV quota should be completed by 1 January 2004.
During the last election campaign the ALP called for this review of the,
scheduled to be, to be brought forward. The Government has rejected this
proposal on the grounds that HDTV needs to be assessed over a longer time
frame. The Shadow Minister for Communications Mr Lindsay Tanner MP has
been critical of HDTV commenting that:
High definition television consumes large amounts
of digital spectrum, inhibits multi-channelling and interactive digital
services and requires very expensive consumer television equipment.
International take up of high definition television has been very
limited.(21)
On 1 May 2002 Mr Tanner called on the Government to suspend
the HDTV quota requirement:
A temporary suspension of the high definition requirement
will provide the networks some breathing space before they spend any
further money on this technology. It will allow full reconsideration
of all the issues involved in fixing the Government's digital TV mess,
and minimise the extent to which the networks are forced to spend
money honouring an obligation which may later be abandoned.(22)
Part 4 of Schedule 4 of the BSA sets forth the digital
television format standards.
Clause 37E sets out the HDTV quotas for commercial television
broadcasting licensees in non-remote areas. It provides that in non-remote
areas the regulations must determine standards which require each commercial
television broadcasting licensee to transmit in SDTV and HDTV and meet
a specified quota of HDTV programs.
Subclause 37E(2) provides that standards must
be directed towards ensuring that:
- HDTV broadcasting begins as soon as possible but in any event within
2 years after the licensee begins to broadcast in SDTV; and that
- Within two years licensees are transmitting at least 20 hours per
week in HDTV.
The national broadcasters (ABC and SBS) are subject to
similar HDTV quotas under clause 37F.
To give effect to clauses 37E and 37F the Broadcasting
Services (Digital Television Standards) Regulations(23) were
made in November 2000.
Items 1 and 2 amend clause 37 so as to
require that standards are directed towards ensuring that commercial licensees
commence HDTV broadcasts within the ‘phase-in period’ and that at the
end of the phase-in period licensees are transmitting at least 20 hours
per week in HDTV.
Item 3 defines the ‘phase-in period’ as the period
ending at the later of 30 June 2003 or 2 years after the broadcaster began
transmitting in SDTV.
Item 4 makes a consequential amendment to subclause
37EA(7) so that HDTV demonstration programs are not to be included in
assessments of whether the licensee is complying with the requirement
to broadcast 20 hours of HDTV after the phase-in period.
Items 5–8 effect changes to the HDTV regime for
the national broadcasters that mirror the measures relating to commercial
broadcasters contained in items 1–4.
So far consumers have been reluctant to embrace HDTV
technology. Two factors that have contributed to this lack of enthusiasm
are undoubtedly the high price of receiving equipment and the limited
amount of high definition programming being transmitted by broadcasters.
These factors are mutually reinforcing in that broadcasters are reluctant
to invest in HDTV programs if there is no audience for them and people
will be unwilling to pay for expensive new technology if there is little
to watch.
The mandatory HDTV quota was intended break this deadlock
and act as a major driver of the transition to digital television.
Despite the imminent commencement of the quota, broadcasters
have delayed making investments in HDTV programming. In part this may
be attributed to uncertainty surrounding the regulatory regime for digital
television. It was reported earlier this year that the Government was
considering a proposal to remove the HDTV quota obligation in order to
free up spectrum for multi-channelling.(24) Such a change was
strongly opposed by the Pay TV industry as well as the Nine and Ten Networks.
Since that time the Government has affirmed its commitment
to HDTV. Recently the Minister announced that the Government would legislate
to defer the review of the HDTV arrangements—due to be completed by January
2004—until July 2005. The Minister stated that ‘deferring this review
will mean that it will be able to take into account the experience of
HDTV programming over a sensible period of time.’(25)
This Bill gives broadcasters time to meet the HDTV quota
requirements. However it may be that further measures need to be taken
to accelerate the transition to the digital television. In the United
States where the take up of HDTV has also been sluggish the Federal Communications
Commission is currently considering whether it should be mandatory to
include HDTV receivers(26) in all new television sets sold.(27)
The Minister has indicated that this is one option that will be considered
by the Government.(28)
- For further information on the development of policy in this area
see Dr Kim Jackson, ‘Digital Television and Datacasting’, e-brief,
Department of the Parliamentary Library, January 2002.
- Multi-channelling is when a television broadcaster shows two or more
separate streams of television programming. Each is a self contained
independent service.
- Senator the Hon. Richard Alston, ‘Digital – A New Era in Television
Broadcasting’, Media Release, 24 March 1998.
- For more information on this legislation see Bills Digest No.
178 1997/1998
- For more information on this legislation see Bills Digest No.
179 1999/2000.
- The technical requirements of ‘SDTV’ and ‘HDTV’ are not specified
in the Broadcasting Services Act. The terms are given their normal
in the broadcasting industry.
SDTV is essentially a widescreen version (16 x 9) of
the existing broadcast system. It has picture quality similar to DVD
with Stereo sound. SDTV offers program enhancements such as a choice
of camera angles or TV guides. In a 7 megahertz channel it is possible
to multi-channel up to 4 standard definition programs.
HDTV has a higher picture resolution and superior sound
quality compared to SDTV. It does requires more spectrum however which
effectively precludes multichanneling.
For detail on SDTV and HDTV see Sony, Phillips and
Panasonic ‘Digital Television in Australia’, Briefing
Paper, September 2002.
- This is known as the simulcasting requirement.
- Under the Broadcasting Services Act 1992 commercial
broadcasters generally must not, during the simulcast period, broadcast
a program in SDTV unless it also broadcasts in analog.
- See Senate Environment, Communications, Information Technology and
the Arts Committee, Report
on the Broadcasting Services (Digital Television and Datacasting) Bill
2000, June 2000.
- A copy of the report is available at the following website http://www.pc.gov.au/inquiry/broadcst/finalreport/index.html
- Productivity Commission, Broadcasting Inquiry Report, March
2000, p. 252.
- Selina Mitchell, ‘Digital TV: just slow off the mark or dead in the
water?’, The Australian, 17 September 2002.
- HDTV set top boxes can also decode SDTV transmissions.
- Currently there is only one model of television set available for
sale that includes an integrated standard definition receiver. This
set retails for $3999. No sets with integrated high definition receivers
are generally available for sale at present.
- Selina Mitchell, ‘Digital TV: just slow off the mark or dead in the
water?’, The Australian, 17 September 2002.
- Explanatory Memorandum p. 5.
- ibid.
- Sony, Phillips and Panasonic, op.cit.
- Liberal Party of Australia, ‘Broadcasting
for the 21st Century’, October 2001. On 15 October the Minister
announced the Government would, as foreshadowed in its election policy,
legislate to annualise the HDTV programming quota. See Senator the Hon.
Richard Alston, ‘HDTV election commitments to be implemented’, Media
Release, 15 October 2002.
- Senator the Hon. Richard Alston, ‘Commencement of High Definition
Quota’, Media Release, 27 August 2002.
- Lindsay Tanner MP, ‘Digital TV Regime Unravels’, Media Release,
27 August 2002.
- Lindsay Tanner MP, ‘Government should suspend high definition television
requirement’Media Release, 1 May 2002.
- A copy of the regulations is available at the following link: http://scaletext.law.gov.au/html/pastereg/3/1639/top.htm
- Steve Lewis and Aaron Patrick, ‘Networks braced for digital U-turn’,
Australian Financial Review, 3 May 2002.
- Senator the Hon. Richard Alston, ‘HDTV election commitments to be
implemented’ Media Release 15 October 2002.
- These are televisions that contain all components necessary to receive
and display digital transmissions. A set top box is not required.
- The preference of the Federal Communications Commission is for voluntary
action by the industry but manufacturers of televisions have been reluctant
to commit themselves. It has been estimated that the mandatory inclusion
of digital tuners could increase the price of televisions by up to $US100.
An overview of the US approach can be found on the FCC’s webiste http://www.fcc.gov/dtv/.
- Maria Hawthorne, ‘Mandatory digital TV considered’, The Australian,
2 October 2002.
Mark Tapley
31 October 2002
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to Senators and
Members of the Australian Parliament. While great care is taken to ensure
that the paper is accurate and balanced, the paper is written using information
publicly available at the time of production. The views expressed are
those of the author and should not be attributed to the Information and
Research Services (IRS). Advice on legislation or legal policy issues
contained in this paper is provided for use in parliamentary debate and
for related parliamentary purposes. This paper is not professional legal
opinion. Readers are reminded that the paper is not an official parliamentary
or Australian government document.
IRS staff are available to discuss the paper's contents
with Senators and Members and their staff but not with members of the
public.
ISSN 1328-8091
© Commonwealth of Australia 2002
Except to the extent of the uses permitted under the Copyright Act
1968, no part of this publication may be reproduced or transmitted
in any form or by any means, including information storage and retrieval
systems, without the prior written consent of the Parliamentary Library,
other than by Members of the Australian Parliament in the course of their
official duties.
Published by the Department of the Parliamentary Library, 2002.
|
