Date: 26/11/2003
Source: Independent Communications Authority of South Africa (ICASA)
Title: Langa: Launch of position paper on regional TV services
ADDRESS BY MANDLA LANGA, CHAIRPERSON OF ICASA, ON THE LAUNCH OF POSITION PAPER ON REGIONAL TELEVISION BROADCASTING SERVICES, 26 November 2003
1. INTRODUCTION
Good morning.
On behalf of the Independent Communications Authority of South Africa ("the Authority"), I would like to welcome you to the launch of the Position Paper on Regional Television Broadcasting Services.
Section 2 of the Independent Broadcasting Authority Act, No.153 of 1993 ("the IBA Act") places an obligation upon the Authority to promote the introduction of a diverse range of sound and television services at national, regional and local level. Sound broadcasting services are currently offered at national, regional and local level. Television broadcasting services are, however, currently only offered at a national level, with the exception of one "grand-fathered' licensee at community level (Trinity Broadcasting Network). The Authority has also, since 1996, licensed a range of community groups as special events television licensees.
In 1996 the Authority conducted a national consultative process, which led to the licensing of e.tv as a national commercial free-to-air television broadcaster. The Authority decided, at that point in time, that regional networked stations were not economically feasible. The Authority stated that it would look into the possibility of licensing regional television broadcasting services after three years.
New legislative requirements for introducing public regional television, technological advances as well as expressions of interest by commercial entities have placed the issue of regional television broadcasting once again on the Authority's policy agenda. Consequently the Authority conducted a public inquiry to determine public demand for and the financial sustainability of regional television services.
The Authority published a Discussion Paper titled "Inquiry into Regional Television" on 22 August 2003. The purpose of the Discussion Paper was to generate comment from all stakeholders on the introduction of regional television broadcasting services in South Africa. The Discussion Paper also solicited public participation and input in developing the regulatory framework for regional television in South Africa, and to generate discussion on the appropriate policy and licensing framework for the introduction of regional television.
The Authority received twelve written submissions from interested parties. Ten of these indicated their wish to make oral representations. Oral hearings were held at the Authority's offices on 16 and 17 October 2003.
The Authority also commissioned a feasibility study on the viability of commercial regional television. The study was published on 17 October 2003 and interested parties were invited to comment thereon by 31 October 2003. The Authority received seven written representations in this regard.
2. FINDINGS
In deciding upon the framework for the introduction and regulation of regional television services, the Authority has been guided by the primary objects of the IBA Act, which include:
* promoting the provision of a diverse range of television broadcasting services on a national, regional and local level which, when viewed collectively, cater for all language and cultural groups and provide entertainment, education and information;
* promoting the development of public broadcasting services, which are responsive to the needs of the public;
* ensuring that broadcasting services, viewed collectively, develop and protect a national and regional identity, culture and character;
* ensuring that, in the provision of public broadcasting services, the needs of language, cultural and religious groups and the needs of the constituent regions of South Africa are duly taken into account;
* promoting the stability within the broadcasting industry;
* ensuring fair competition between broadcasting licensees; and
* protecting the integrity and viability of public broadcasting services.
2.1 Frequency Assignment
The licensing of any additional television broadcasting services requires the allocation of spectrum within the existing terrestrial broadcasting frequency plan. It follows, therefore, that a number of services compete for the very limited number of spare frequencies in the plan. Competing services would include national commercial and public television broadcasting services, regional television broadcasting services, local television broadcasting services, as well as digital terrestrial television broadcasting services.
With regard to regional television, in some areas only a single frequency remains available. In other areas two or more frequencies may be available at the main site but not at the respective gap-filler sites. It follows that it may, in some cases, be impossible to provide additional analogue coverage for the proposed regional services equivalent to that achieved for existing analogue services. Significant gaps may exist in the coverage areas.
Representations received from the public on the issue of analogue-digital platform prioritisation call for an urgent need for a migration plan. The introduction and migration strategy for digital broadcasting hinges on the availability of spectrum and the Authority has decided to prioritise the allocation of frequencies for digital in order to secure a migration path that would enable a smooth transition to digital. However, an overarching migration plan for digital terrestrial broadcasting cannot be finalised by the Authority without policy in this regard being determined by government.
2.2 Commercial Regional Television Broadcasting Services
The Authority's inquiry into regional television demonstrated that the South African television market is not yet ready to sustain regional television services that are dependent on advertising revenue for their viability. The economic feasibility study commissioned by the Authority indicated that according to international experience a successful regional television regime needs government and a regulator's intervention through, for example, funding and protectionist regulatory policies.
The Authority has decided not to licence commercial regional television channels in the short-to-medium term. However, the Authority has not permanently 'closed the door' on the licensing of commercial regional television services. Technological developments, such as digitisation, as well a significant growth in the advertising market may require further investigation in the future.
2.3 Public Regional Television Broadcasting Services
In order to promote the constitutional right to language, government proposed the introduction of public regional television services, under the ambit of the SABC. This policy objective was enshrined in section 22A(1) of the Broadcasting Act, which provides, amongst other things, that the SABC must, within nine months of the commencement of the Broadcasting Amendment Act, 2002, apply to the Authority to license it to provide additional television services:
* which broadcast regionally; in such official languages as are appropriate, having regard to language usage within respective regions served by the proposed services;
* and so as to ensure that between these regional services, broadcasting in the languages of Sepedi, Sesotho, Setswana, siSwati, Tshivenda, Xitsonga, Afrikaans, isiNdebele, isiXhosa and isiZulu is provided on an equitable basis.
The Authority will therefore consider applications from the SABC for regional television services within the statutory framework set out by the legislation and in terms of the policy framework set out in this Position Paper. The SABC is required to submit these applications by 8 December 2003.
In the Authority's view, it is clear from section 22A(2) of the Broadcasting Act that the SABC regional television services must be funded by money appropriated by Parliament. This provision is mandatory. In the Authority's view, state or government funding is vital to ensure the sustainability of the proposed regional television services. Upon application for these services, the SABC will be required to submit a business plan and proof of funding for the first term of the broadcasting licence.
The legislature has allowed for the possibility that any funding short-fall may be made up by grants, donations and sponsorships. But, the question of advertising is another matter. Section 22A(3) clearly provides the Authority with the discretion to determine the extent to which these services may draw revenues from advertising.
The study commissioned by the Authority found that the success of public regional television elsewhere was linked to government funding and special regulatory measures.
In exercising its discretion in this regard, the Authority has decided to not allow advertising on public regional television broadcasting services. These services must be wholly funded by:
* money appropriated by Parliament;
* grants;
* donations; and
* sponsorships.
In making this decision, the Authority has had regard to the following:
Firstly, even if these services were permitted to carry advertising they would still be largely dependent on government funding for their survival. As this inquiry demonstrated, reliance on advertising would be ill advised. Furthermore, the Authority was concerned that should advertising be allowed, the SABC may be tempted to deviate from the language and programming mandate of the regional services. It is important therefore that the SABC and government properly plan for the funding of these services. In this funding plan, allowances must be made for the potential loss of audience by SABC 1 and SABC 2 to the proposed public regional services.
Secondly, the Authority is required to promote the stability of the broadcasting industry and ensure fair competition between broadcasting licensees. In this context, the Authority believes that there may be competition concerns if the SABC launched television services that were primarily funded by government but also competed with e.tv for advertising revenue. The Authority was also concerned that regional radio revenues would be also be negatively impacted if the advertising were allowed on public regional television.
2.3.1 Licence Application
The SABC is required to apply for the new regional licences in terms of section 41(4), read with section 45(2), of the IBA Act. Section 45(2) provides that, in considering the granting of new regional public broadcasting licences, the Authority is required, with due regard to the objects and principles as enunciated in section 2, to inter alia take into account:
* the demand for the proposed broadcasting service within the proposed licence area;
* the need for the proposed service within such area, having regard to broadcasting services already existing therein;
* and the technical quality of the proposed service, having regard to developments in broadcasting technology.
The SABC will also be required to submit proof of funding and a business plan for the first term of the broadcasting licence. The Authority may also require additional information to be submitted after the lodging of the licence applications.
2.3.2 Programming Contributions
The implication of the omission of English from the enabling statutory provisions in the Broadcasting Act is that these regional services are aimed at addressing languages other than English. The Authority has, therefore, decided to prohibit the use of English in these services. The two services will also be required to allocate more airtime to Tshivenda, Siswati, isiNdebele, and Xitsonga. These are languages currently receiving very little airtime on television.
Public regional television broadcasting services will be expected to ensure that the requirements of the IBA Act relating to regional/provincial identity, culture and character are addressed. All the provinces need to have their news and cultures represented.
The number of hours per week of news, actuality programming, children's programming, educational programming, drama and other programme categories shall be determined in the SABC's licence conditions, after the public process envisaged by the law.
2.3.3 South African Television Content
The Authority has decided that the public regional television services should have an overall South African television content quota of 55% from start-up. The Authority's South African Television Content Regulations, 2002, incentivise the production of South African drama, African language drama, children's drama, children's informal knowledge building programmes, arts programming, and diversity of commissioning . The Position Paper provides more detail in this regard.
Later this week the Authority will also gazette regulations on the licence fees to be paid by regional television broadcasting licensees.
Lastly, I would like to thank the SABC and all other interested parties who participated in this policy process. We believe that the Authority has now developed a policy framework that will allow for the licensing of public regional television services, as required by the law. We look forward to receiving and considering the SABC's applications for public regional television licences.
I thank you. We will now take questions.
Source: Independent Communications Authority of South Africa (ICASA) (http://www.icasa.org.za)
Source: Independent Communications Authority of South Africa (ICASA)
Title: Langa: Launch of position paper on regional TV services
ADDRESS BY MANDLA LANGA, CHAIRPERSON OF ICASA, ON THE LAUNCH OF POSITION PAPER ON REGIONAL TELEVISION BROADCASTING SERVICES, 26 November 2003
1. INTRODUCTION
Good morning.
On behalf of the Independent Communications Authority of South Africa ("the Authority"), I would like to welcome you to the launch of the Position Paper on Regional Television Broadcasting Services.
Section 2 of the Independent Broadcasting Authority Act, No.153 of 1993 ("the IBA Act") places an obligation upon the Authority to promote the introduction of a diverse range of sound and television services at national, regional and local level. Sound broadcasting services are currently offered at national, regional and local level. Television broadcasting services are, however, currently only offered at a national level, with the exception of one "grand-fathered' licensee at community level (Trinity Broadcasting Network). The Authority has also, since 1996, licensed a range of community groups as special events television licensees.
In 1996 the Authority conducted a national consultative process, which led to the licensing of e.tv as a national commercial free-to-air television broadcaster. The Authority decided, at that point in time, that regional networked stations were not economically feasible. The Authority stated that it would look into the possibility of licensing regional television broadcasting services after three years.
New legislative requirements for introducing public regional television, technological advances as well as expressions of interest by commercial entities have placed the issue of regional television broadcasting once again on the Authority's policy agenda. Consequently the Authority conducted a public inquiry to determine public demand for and the financial sustainability of regional television services.
The Authority published a Discussion Paper titled "Inquiry into Regional Television" on 22 August 2003. The purpose of the Discussion Paper was to generate comment from all stakeholders on the introduction of regional television broadcasting services in South Africa. The Discussion Paper also solicited public participation and input in developing the regulatory framework for regional television in South Africa, and to generate discussion on the appropriate policy and licensing framework for the introduction of regional television.
The Authority received twelve written submissions from interested parties. Ten of these indicated their wish to make oral representations. Oral hearings were held at the Authority's offices on 16 and 17 October 2003.
The Authority also commissioned a feasibility study on the viability of commercial regional television. The study was published on 17 October 2003 and interested parties were invited to comment thereon by 31 October 2003. The Authority received seven written representations in this regard.
2. FINDINGS
In deciding upon the framework for the introduction and regulation of regional television services, the Authority has been guided by the primary objects of the IBA Act, which include:
* promoting the provision of a diverse range of television broadcasting services on a national, regional and local level which, when viewed collectively, cater for all language and cultural groups and provide entertainment, education and information;
* promoting the development of public broadcasting services, which are responsive to the needs of the public;
* ensuring that broadcasting services, viewed collectively, develop and protect a national and regional identity, culture and character;
* ensuring that, in the provision of public broadcasting services, the needs of language, cultural and religious groups and the needs of the constituent regions of South Africa are duly taken into account;
* promoting the stability within the broadcasting industry;
* ensuring fair competition between broadcasting licensees; and
* protecting the integrity and viability of public broadcasting services.
2.1 Frequency Assignment
The licensing of any additional television broadcasting services requires the allocation of spectrum within the existing terrestrial broadcasting frequency plan. It follows, therefore, that a number of services compete for the very limited number of spare frequencies in the plan. Competing services would include national commercial and public television broadcasting services, regional television broadcasting services, local television broadcasting services, as well as digital terrestrial television broadcasting services.
With regard to regional television, in some areas only a single frequency remains available. In other areas two or more frequencies may be available at the main site but not at the respective gap-filler sites. It follows that it may, in some cases, be impossible to provide additional analogue coverage for the proposed regional services equivalent to that achieved for existing analogue services. Significant gaps may exist in the coverage areas.
Representations received from the public on the issue of analogue-digital platform prioritisation call for an urgent need for a migration plan. The introduction and migration strategy for digital broadcasting hinges on the availability of spectrum and the Authority has decided to prioritise the allocation of frequencies for digital in order to secure a migration path that would enable a smooth transition to digital. However, an overarching migration plan for digital terrestrial broadcasting cannot be finalised by the Authority without policy in this regard being determined by government.
2.2 Commercial Regional Television Broadcasting Services
The Authority's inquiry into regional television demonstrated that the South African television market is not yet ready to sustain regional television services that are dependent on advertising revenue for their viability. The economic feasibility study commissioned by the Authority indicated that according to international experience a successful regional television regime needs government and a regulator's intervention through, for example, funding and protectionist regulatory policies.
The Authority has decided not to licence commercial regional television channels in the short-to-medium term. However, the Authority has not permanently 'closed the door' on the licensing of commercial regional television services. Technological developments, such as digitisation, as well a significant growth in the advertising market may require further investigation in the future.
2.3 Public Regional Television Broadcasting Services
In order to promote the constitutional right to language, government proposed the introduction of public regional television services, under the ambit of the SABC. This policy objective was enshrined in section 22A(1) of the Broadcasting Act, which provides, amongst other things, that the SABC must, within nine months of the commencement of the Broadcasting Amendment Act, 2002, apply to the Authority to license it to provide additional television services:
* which broadcast regionally; in such official languages as are appropriate, having regard to language usage within respective regions served by the proposed services;
* and so as to ensure that between these regional services, broadcasting in the languages of Sepedi, Sesotho, Setswana, siSwati, Tshivenda, Xitsonga, Afrikaans, isiNdebele, isiXhosa and isiZulu is provided on an equitable basis.
The Authority will therefore consider applications from the SABC for regional television services within the statutory framework set out by the legislation and in terms of the policy framework set out in this Position Paper. The SABC is required to submit these applications by 8 December 2003.
In the Authority's view, it is clear from section 22A(2) of the Broadcasting Act that the SABC regional television services must be funded by money appropriated by Parliament. This provision is mandatory. In the Authority's view, state or government funding is vital to ensure the sustainability of the proposed regional television services. Upon application for these services, the SABC will be required to submit a business plan and proof of funding for the first term of the broadcasting licence.
The legislature has allowed for the possibility that any funding short-fall may be made up by grants, donations and sponsorships. But, the question of advertising is another matter. Section 22A(3) clearly provides the Authority with the discretion to determine the extent to which these services may draw revenues from advertising.
The study commissioned by the Authority found that the success of public regional television elsewhere was linked to government funding and special regulatory measures.
In exercising its discretion in this regard, the Authority has decided to not allow advertising on public regional television broadcasting services. These services must be wholly funded by:
* money appropriated by Parliament;
* grants;
* donations; and
* sponsorships.
In making this decision, the Authority has had regard to the following:
Firstly, even if these services were permitted to carry advertising they would still be largely dependent on government funding for their survival. As this inquiry demonstrated, reliance on advertising would be ill advised. Furthermore, the Authority was concerned that should advertising be allowed, the SABC may be tempted to deviate from the language and programming mandate of the regional services. It is important therefore that the SABC and government properly plan for the funding of these services. In this funding plan, allowances must be made for the potential loss of audience by SABC 1 and SABC 2 to the proposed public regional services.
Secondly, the Authority is required to promote the stability of the broadcasting industry and ensure fair competition between broadcasting licensees. In this context, the Authority believes that there may be competition concerns if the SABC launched television services that were primarily funded by government but also competed with e.tv for advertising revenue. The Authority was also concerned that regional radio revenues would be also be negatively impacted if the advertising were allowed on public regional television.
2.3.1 Licence Application
The SABC is required to apply for the new regional licences in terms of section 41(4), read with section 45(2), of the IBA Act. Section 45(2) provides that, in considering the granting of new regional public broadcasting licences, the Authority is required, with due regard to the objects and principles as enunciated in section 2, to inter alia take into account:
* the demand for the proposed broadcasting service within the proposed licence area;
* the need for the proposed service within such area, having regard to broadcasting services already existing therein;
* and the technical quality of the proposed service, having regard to developments in broadcasting technology.
The SABC will also be required to submit proof of funding and a business plan for the first term of the broadcasting licence. The Authority may also require additional information to be submitted after the lodging of the licence applications.
2.3.2 Programming Contributions
The implication of the omission of English from the enabling statutory provisions in the Broadcasting Act is that these regional services are aimed at addressing languages other than English. The Authority has, therefore, decided to prohibit the use of English in these services. The two services will also be required to allocate more airtime to Tshivenda, Siswati, isiNdebele, and Xitsonga. These are languages currently receiving very little airtime on television.
Public regional television broadcasting services will be expected to ensure that the requirements of the IBA Act relating to regional/provincial identity, culture and character are addressed. All the provinces need to have their news and cultures represented.
The number of hours per week of news, actuality programming, children's programming, educational programming, drama and other programme categories shall be determined in the SABC's licence conditions, after the public process envisaged by the law.
2.3.3 South African Television Content
The Authority has decided that the public regional television services should have an overall South African television content quota of 55% from start-up. The Authority's South African Television Content Regulations, 2002, incentivise the production of South African drama, African language drama, children's drama, children's informal knowledge building programmes, arts programming, and diversity of commissioning . The Position Paper provides more detail in this regard.
Later this week the Authority will also gazette regulations on the licence fees to be paid by regional television broadcasting licensees.
Lastly, I would like to thank the SABC and all other interested parties who participated in this policy process. We believe that the Authority has now developed a policy framework that will allow for the licensing of public regional television services, as required by the law. We look forward to receiving and considering the SABC's applications for public regional television licences.
I thank you. We will now take questions.
Source: Independent Communications Authority of South Africa (ICASA) (http://www.icasa.org.za)
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