The South African Broadcasting system currently exists within a context characterized by two factors.

On the one hand, is the quest of a new democratised nation for utilising the unique and powerful broadcasting media in the task of nation building and to construct a vibrant and democratic dispensation fostering national and cultural identity, equality and respect for the fundamental rights of all South Africans as enshrined in the new constitution.

On the other hand, South Africa is in many ways still shackled by its past – a society deeply divided between have and have-nots which are clearly characterised along the ethnic, racial, linguistic, gender and cultural lines. These divisions still define the essence of the social, political, economic and cultural transformation that will be required to redress the legacy of apartheid in order to create a democratic and completely inclusive society.

The South African Broadcasting system in itself mirrors this duality. Externally, the system displays levels of sophistication that favourably compares with any developing country in the world. The large number of broadcasting services in private, public and community sectors, with wide variety of programmes appear to offer real choice to South Africa.

Internally, large sections of the population have no choice of services, and sometimes receive no services at all. A majority of South Africans rely on a single service, usually radio, to meet their vast broadcasting needs.

The pattern of deployment of broadcasting transmission networks, and other facilities in the country underpins the lack of availability of services to the under-priveledged sections and under-developed regions. In rural areas, a single radio station and a single television service might, at best, define the choice of services.

The services are not inclusive of the South African languages and culture. English is the dominant language broadcast in South Africa. All three SABC television services offer a diet of programming which, until very recently, was mainly in English. An English radio service maintains the most extensive network and the most developed broadcasting service in the country. Private broadcasters, with the exception of a few new entrants, all offer programmes in English.

South Africa now has eleven official languages. Many people who speak these languages are clearly not adequately served by the broadcasting system. The situation is compounded by the fact that while services in English increase, a major part of the South African society does not use English as a language of communication and interaction in daily life.

The South African content plays a secondary role to foreign programming. This places South African talent, creative and artistic, at a disadvantage and further provides ground for marginalisation of South African culture in the future.

Even though South Africa has spewed an independent production sector policies of the past have ensured that this sector draws talent mainly from one section of the population. Ownership patterns in this sector, like in the other broadcasting areas, is skewed in favour of certain segments of the population. These conditions militate against the South African broadcasting system reflecting the diversity of cultures inherent in our country.

These are the two worlds of the South African Broadcasting system.

The South African Broadcasting System existed for decades as one of the most politicised broadcasting systems in the world. The politicization of the broadcasting system, something to be undone to achieve freedom of expression in line with constitutional provisions, occurred at various levels namely:

• Policy determination and regulation
• Service provision
• Employment practice and recruitment strategies
• Content provision

A government department set policies, imposed monopoly conditions and directed the activities of the broadcaster. Stories abound of different Ministers picking up the phone to order the removal of broadcast programmes from schedules.

In line with the apartheid philosophy rejecting the equality of South Africans, service provision was meant to favour the advantaged according to the criteria of colour, class, geographic location and language.

Employment practice and recruitment strategies, which provided human resources had to fit in to this distorted broadcasting system. People who were trained as broadcasters were not representative of various segments of the population. In fact they represented a segment of a particular political belief.

Apart from disseminating racial stereo types and fragmenting the South African population on racial lines, content provided by the system was mainly political. Maybe the greatest success of this broadcasting system was political censorship and propaganda disseminated in all services.

The reforms of the last four years have been aimed at putting in place a framework to remove these vestiges of the past. The establishment of the IBA, to regulate broadcasting in the public interest, was a first step prompted by the need for an effective non-partisan media outlet for the effective running of the first democratic elections.

The appointment of the SABC Board (1994) was also aimed at freeing the SABC from the grip of the political mandarins.

The Triple Inquiry into the Protection and Viability of the Public Broadcaster, Cross Media control, local content and South African music saw the first IBA step to restructure the broadcasting system.

Despite these moves the system built over the discriminatory practices of the past remains. These inequalities relate to:

• Inequality in infrastructure distribution
• Inequality in resources allocation (frequencies, HR and finance)
• Inequality in language, cultural and educational programming( English and foreign dominating the system)
• Lack of diversity and choice
• Lack of universal coverage and access

The IBA Act of 1993 started the process of reforming the system, but in the main service provision and other elements of the system still continue along the structured lines of the past. This meant that services, which were catering to particular segments of the population continued unabated.

In Radio the SABC operated twenty two radio stations. Of these, nine regional commercial services targeted the white segment of the population. In addition the two most developed national networks were serving the needs of this segment of the population. One regional private service also targeted this segment. In contrast only two metropolitan commercial networks served the black segment of the population in addition to one language service for the different languages.

In Television the SABC operated two national networks and one metropolitan one. Two networks serviced the white population and only one network targeted the black segment.

Even when the IBA sold six SABC stations the intention was never to redirect these stations to serve the audiences that had been neglected in the past. The result was a change of ownership but the continuation of same services inherited from the past.

The Triple Inquiry Report did recommend that the SABC should act to upgrade the language services to be on par for the different languages. The SABC initiated this endeavor only to cut back due to financial constraints.

For Television the IBA recommended the inclusion of all eleven South African languages. Costs and structure of the broadcasting industry (national services) have been the main impediments towards achieving this. The broadcasting system is structured along national lines for Television, whereas some languages are geographically concentrated in parts of the country. In addition, the subscription service also targeted the white segment of the population. Since then a digital pay service has entered the system also to target generally the upper echelons of society and the white segment specifically.

The new licenses are also mainly targeting the upper echelons of the South African society. Of the four stations in Gauteng one targets the upper echelons of the black segment, one is serving the 16-24 age group (higher end of that market), one is a classical station and the last serving the Afrikaans community.

Out of three licenses in the Western Cape one is a talk station in English serving the high end of the market, one is a niche Jazz station and the other a Talk Station broadcasting in Afrikaans.

In Durban the only newly licensed service is also a niche Jazz service in English.

Even though Community Broadcasting has flourished over the past two years, there has been so far no viable plan to roll out this sector to reach the most needy and in all areas of the country. Its growth so far has been sporadic and not according any national plan.

Up until now there has as yet been no change to the number and choice of services, the type and diversity of programming for the majority of South Africans.

Most of the responses to the Green Paper reiterated the need for the broadcasting system to operate in the interest of the people of South Africa through supporting the following areas:

• Universal access:
• Diversity:
• Democratisation of the Airwaves:
• Nation Building:
• Education:
• Strengthening the spiritual and moral fibre of society:

The objectives of the South African broadcasting system are outlined in Section 2 of the IBA Act.

It is clear that these policy objectives, as outlined in section 2 of the IBA Act were developed for the first phase of instituting transformation in broadcasting. The process of political negotiations could not thoroughly formulate policy ends. As result there are areas which now need clarification, and these relate to:

• Gaps in policy development and formulation
• Clarification of roles and proper assignment of tasks
• Defining intermediate and long term policy ends

Policy ends should help the public to visualize the desired state of the broadcasting system and the objectives of the various actions undertaken in pursuit of policy. Policy statements should be able to adapt to changing conditions, yet at no time should the public be left in doubt as to what is it that must be achieved by the broadcasting system over a period of time.

The Task Team recommends a reformulation of the policy statements that must guide the South African broadcasting system. This could be based on the following principles:

It is of vital importance, that the new Broadcasting Law should contain constitutional principles, which have since evolved, for broadcasting to exists within the legal and constitutional provisions.

The South African constitution guarantees a number of fundamental rights, which should be taken into account in determining broadcast policy and its regulation. Amongst these are:

• Freedom of expression for all South Africans
• The right to equality
• The equality of all languages
• The multi-cultural nature of SA and the right of all South Africans to the promotion of their cultures
• Choice and diversity

A well founded broadcasting system should ensure pluralities of news, views and information. It should give wide and enlightened choices to the citizens and thereby contribute significantly to an effective and vibrant democracy.

Such a system should also enhance and protect the fundamental rights of the citizens as enshrined in the new constitution. The broadcasting system plays a more fundamental role than any media does in the life of our country. The majority of South Africans rely on broadcasting for their participation in the socio-political developments in the country.

Against this backdrop is the reality that broadcasting as a system has not as yet delivered the desired objectives. The majority of South Africans still rely on a single service in Radio and in Television to satisfy their programming needs.

Therefore the need for reforms in the broadcasting system in order to bring it in line with the democratic values of the constitution is more than just an academic exercise. Reforming this sector will enable the citizens to interact better with the institutions of society and deepen the democratisation of the country.

Broadcasting Media uses airwaves, which are public property. This is a limited public resource. Each and every body cannot have access to it at his or her own sweet will. Such a limited resource should be utilised for the maximization of public good. In case of any conflict between public interest and private commercial interest, public interest should prevail. The public also legitimately expects returns for the use of its property.

The IBA Act proclaims that broadcasting should be regulated in the public interest. This important policy end is not supported by any policy principle establishing the need for this consideration. This is an important omission in the development of public policy

The public character of the radio frequencies is the single important principle that should feature in broadcast policy, establishing the need for public intervention and consideration.

The advent of technological means to distribute more than one signal through an assigned frequency reinforces the need for the public nature of radio frequencies to be restated as a matter of policy. Unless, this important principle is contained in policy statement, there will arise disputes as to the right of the public institutions to determine policy on the allocation of frequencies in the digital age.

Policies to assign frequencies and those governing spectrum usage may change from time to time but the important principle that it is the public interest that must be safeguarded in such usage must still underpin choices of policy direction.

Regulating the use of radio frequencies in the public interest also stems from other considerations, including:

• The need to define broadcasting parameters to avoid interference with consumer services
• The need for radio frequencies for other socially important activities such as the defense of the country, emergency and other communication services
• The need to affirm the role of the previously disadvantaged in the broadcasting system
• The international responsibilities of the South African government

This brings into focus the basic need for a strong and committed Public Broadcasting Service. Such a service should cater to the needs and aspirations of all sections of our society, particularly the underprivileged and historically disadvantaged.

It should ensure universal availability and access. It should meet the education, information and entertainment need of all the people of South Africa. It should also meet the needs for children’s programming and human resources development.

Above all it should contribute to nation building.

Issues pertaining to the restructuring of SABC to make it an effective Public Broadcaster are dealt in the Chapter on Public Broadcasting Services.

The principle of public interest also imposes obligations on the part of the private broadcasters as well. These are dealt in detail in the Chapter on private broadcasting.

The community sector also faces obligations and responsibilities because of the principle of Public Interest. These are discussed in detail in the Chapter on Community broadcasters.

The enactment of the IBA Act laid the foundations for the separation of powers to formulate policy, regulate and provide services.

In as much as the State was the sole player in all the three areas of governance, this practice was broken. Yet new problems arose because the Act merged the processes of policy formulation with regulation into a single structure. In fact, the IBA Act is totally silent on the issue of the development of policy. It asserts the primary object of the Act as the regulation of broadcasting activities in the Public Interest. National Policy formulation was in this way treated as a sub-task of the IBA’s regulatory functions.

This structural organisation of the broadcasting system is not in accordance with the best international practice, obscures the different roles and responsibilities and fundamentally undermines public accountability. The International Telecommunications Union has recommended three roles in the governance of the communications sector. The three are policy formulation, regulation and service operation.

Policymaking is a shared responsibility of public authorities and institutions. These public institutions are the Parliament, Government and the Regulatory Authority.

The legitimate interaction between the IBA and the Government of the day has not been provided for in the IBA Act. No clear processes and mechanisms are detailed. Mechanisms to resolve policy disputes are also not provided for. The IBA, a statutory body is left free to decide on some fundamental policy issues without being required to consult with government. At least the law should allow for some form of interaction between the government and the regulatory authority.

In broadcasting, just like in other areas of activity regulations are part of statutory instruments that set standards and cannot therefore be regarded as operating in a vacuum. The standards that govern the behaviour of all those involved in broadcasting are:

• The constitution
• The Acts of Parliament
• Government policy directives (subject to the Act and the Constitution)
• Regulations by the Authority
• Conditions of license
• Self- regulation
• Corporate regulations

This Policy Process therefore recommends that the South African broadcasting system be restructured along the same lines, as is the case in virtually all democratic countries in the world. This would call for clearly laying down the roles of different players and providing for a transparent mechanism for their interaction.

For the effective functioning of the entire broadcasting system and keeping in view the fact that the whole broadcasting system should be geared towards the public interest, the Technical Task Team recommends the following roles and functions for the Parliament, Government and the Regulator:

The Parliament will be asked to amend the Independent Broadcasting Authority Act so that

• Responsibility for the achievement of the objects of the Act is better defined

• It should be the responsibility of the Minister to promote public broadcasting services, and the shared responsibility of the Minister and the IBA to promote private and community broadcasting services (see object (b))
• It is the shared responsibility of the Minister and the IBA, but principally that of the Minister, to protect the integrity and viability of public broadcasting services (see object (d))

• The obligation in object (e) to ensure certain needs are taken into account in public broadcasting services is applied to private and community broadcasting services too

• Public broadcasting responsibilities listed in this object should be the shared responsibility of the Minister and the SABC

• The specific nature of limitations on cross-media control and foreign ownership of private broadcasting licenses should be outlined in the Act
• The Parliament is entitled to attach any conditions it sees fit to any grant of public moneys by the State to the SABC
• A statutory charter for the SABC should be legislated for, and this charter should place appropriate stress on the obligations of the SABC to provide a comprehensive service (i.e. a service that caters to as many community interests as possible) of wide geographic coverage¹

• The charter should incorporate, from object (b) of the Act, responsibility for the promotion of the development of public broadcasting services, and, from object (d) responsibility about the viability of public broadcasting services – these are not regulatory functions
• The SABC should have, along with the Minister, responsibility for the achievement of object (e), which deals with the provision of needs – language, cultural, religious, regional, local and educational – in the form of public broadcasting services

• The Parliament will retain its powers of appointment in relation to the IBA
• The concept of two co-chairpersons of the IBA will be abolished in favour of a single chairperson
• The power of the IBA to remunerate employees at levels considered as being competitive in the open employment market, which confers a very wide discretion on the IBA, will be curtailed – the IBA will be required to offer salaries consistent with public sector standards
• The IBA will be funded directly by government, and not be allowed to retain funds obtained from sources listed at Section 15(b) to (g)
• No statutory authority should be permitted to profit from fines it might impose – such moneys will come to consolidated revenue from the IBA
• Surplus funds should not accumulate in the IBA – they should be accounted for elsewhere
• The IBA’s Annual Report obligations should be broadened – in particular the IBA should be required to report on operational matters, as well as financial matters. These matters should include comprehensive statements on –

• Licensing
• Planning
• Supervision of standards
• Ownership and control issues
• Industry compliance with license and other obligations
• Local content issues
• Technological developments, including the Internet and multi-media

The Government

• Government should have the right to issue directives to the IBA on policy matters.
• These policy directives should not be retroactive
• These policy directives should be of a broad policy nature
• The IBA should enjoy the independence to interpret these broad policy directives into regulatory activities
• The issuing of these directives should be in accordance with transparent public processes namely:

• The Minister responsible may ask the IBA from time to time

• to furnish him with advice and recommendations about these matters
• to determine regulatory standards in relation to some of these matters

The Regulator

The perception that the IBA is not accountable to any one in its activities implementing public policy is wide spread and a source for concern. The consideration of the roles of the different players in the governance of the broadcasting system departs form a notion of public accountability. While the basic assumption is that there will be an effective regulatory authority capable of basing its activities on Public policies, it is nonetheless important that the regulatory authority retains public trust.

The publishing of a working plan, a regulatory strategy, licensing schedule at the beginning of every two years will help the public understand the processes of the IBA, and more importantly link these to the achievement of policy objectives.

• The principal roles of the regulator include –

• The administration of the statutory scheme for granting, and renewing, broadcasting licenses
• The management of the broadcasting services frequency bands and other parts of the radio frequency spectrum properly delegated by the Parliament and the Minister to broadcasting purposes
• The design and implementation of license conditions for different categories of broadcasting service, including conditions relating to

• Local content strategies
• Service provision, including

• Coverage obligations
• Language service provision

• Ownership and control compliance
• Code of Conduct compliance
• Empowerment, etc

• Monitoring the broadcasting industry so as to ensure compliance with broadcasting laws and regulations
• The conduct of research, including research into community standards, so as to inform its regulatory role
• The enforcement, where appropriate and necessary, of broadcasting laws and regulatory requirements
• An appropriate accountability to the Parliament, the Minister and the system of judicial review

• The functions of the regulator will include, but not be limited to -

• To plan, subject to the approval of the Minister, the availability of segments of the radio frequency spectrum on a national and area basis, including the preparation of a frequency allocation plan for South Africa

• Efficiency and effectiveness should be the hallmarks of frequency allocation planning

• The grant and renewal of broadcasting licenses
• To monitor the operation of the IBA Act and technological developments and service trends in the broadcasting sector, and report to the Minister from time to time
• Dealing with complaints about broadcasters’ observance of community standards in programming and advertising
• Dealing with, and prescribing, the appropriate radio frequency spectrum engineering characteristics of broadcasting services
• The making of regulations necessary to give effect to its statutory charter

Media influences public opinion and plays a fundamental role in the political destiny of the country. It is more so in respect of broadcasting media due to its wide reach. It reaches and influences even those who cannot read and write.

Any consideration of media ownership in few hands would be detrimental to the cause of democratisation of South Africa. Concentration and control in few hands, particularly in foreign hands might even undermine the sovereignty of our country.

It is important to devise appropriate policy frameworks to ensure wide dispersal of media ownership and to prevent their concentration in few hands. The media ownership patterns of the past should not be duplicated as they concentrate media ownership in the hands of a small segment of the population.

Limits on permissible ownership by foreign nationals or entities should be clearly laid down.

These and other related issues are discussed in detail in the Chapter on Ownership and Cross-media Restrictions.

Within the parameters as discussed above, the broadcasting system should support and promote a vibrant broadcasting industry that contributes to higher economic growth.

This calls for a policy framework, which ensures quick adaptability to new and changing technologies, efficient use of the spectrum and fair competition.

It also calls for a policy framework, which will grow South African productions and contribute to the growth of the South African Cultural Industries.

These issues are addressed in Chapters on Digital Broadcasting, Internet, Spectrum Management, Cable and other multi-channel distribution systems and South African content.

The technological evolution has ushered in a diversity of channels that can be received from anywhere in the globe. While this technological change has increased choice of programmes that can be received and enjoyed by South Africans, its has thrown up challenges which must be addressed.

The challenges relate to both the cultural and economic aspects of the broadcasting system.

At a cultural level, the reflection of the cultural realities of South Africa decrees at a proportional rate to the increase of foreign programmes in the South African broadcasting system. Simply stated the more our broadcasting system is defined by programmes about other cultures and from the creative output of others the less are programmes about the South African way of life, values and context.

At an economic level, the production capacity and therefore the chance of employment of South African creative artists is affected by the level of South African programming in the broadcasting system. The development of the arts sector is therefore affected by policy considerations that determine the extent to which the South African broadcast content is prioritized.

The South African broadcasting system should reflect the identity and the multi-cultural nature of South Africa through the reflection of all cultural backgrounds that make up South African culture.

To ensure this, it is necessary that broadcasting entities in South Africa are owned and controlled by the South Africans. There also need to be a redress of the legacy of the past in the ownership patterns.

The requirement that South Africans must own broadcasting services goes a long way in securing the tools for South African cultural determination. Yet on its own, it does not and can never ensure appropriate South African content. Broadcast Content itself should be addressed and policy principles for its development included in law. The point must be made that this is a policy function and not a regulatory function. The policy ends must define the regulatory and other strategies that may be adopted from time to time.

Choice of programming should entail a choice of South African programming. This calls for a deliberate policy to ensure that the South African broadcasting system offers South African programmes about the conditions, life styles, behavior and a cultural heritage of South Africans. This policy should encourage the presentation of entertainment, educational and informational programming from the South African perspective in whatever format and distribution mechanism.

The Green Paper and this discussion paper trace the roots of the broadcasting system to deliberate discriminatory policies of the previous government, which ensured an uneven development of broadcasting services targeting the black broadcasting needs, languages and cultures.

Many responses to the Green Paper pointed to economic and demographic reasons for the uneven development of the broadcasting services. The main reasons advanced are the social and economic profile as well as the living standards, which make these audiences not to be attractive to advertisers.

There are other factors beyond the economic profiles. For one the very practice described by some respondents as first-come first-serve in the allocation of frequencies would go a long way in explaining the lack of development of services in languages other than English.

A policy position, which requires the IBA to prioritise the allocation of frequencies to serve language needs that were neglected in the past, will help direct resources to the areas of greatest need.

The uniform manner in which frequency allocation is done; parameters and footage drawn seems to ignore the important dynamics influencing the survival and viability of services using the different languages.

Policy consideration rather than being regarded as an end in itself should itself drive frequency allocation. If policy requires that language choice and diversity in terms of broadcast services should be comparable to all South Africans, technical considerations should adapt to this policy by ensuring a large enough geographic coverage as to include the critical number of audiences to make the licensed services viable.

Policy should recognize the special character of language broadcasting and provide for technical parameters that suite the different languages.

Policy should prioritise the provision of services in languages of choice where applicable.

Programming alone will not solve the problems of addressing all South African broadcasting needs. Access is a critical area that needs urgent address through appropriate policy intervention.

In the area of signal distribution, the network and infrastructure must be extended to cover the entire country.

CHAPTER 3

BROADCASTING SERVICES

3.1 DEFINITIONS

The IBA Act defines broadcasting as any form of unidirectional telecommunication intended for the public or sections of the public or subscribers to any broadcasting service having appropriate facilities, whether carried by means of radio or any other means of telecommunication or any combination of the aforementioned.

A considerable debate has occurred since the advent of satellite and the DTH services. Some have argued that DTH services cannot be considered as broadcasting activities and therefore do not require a broadcasting license for their operations. One operator continues to provide a service without a license granted by the IBA.

There are obligations that stem from associating with broadcasting activity and these obligations must be shared, even to varying degrees by all those involved in activities that resemble very closely activities considered to be broadcasting by definitions of the Act.

It is unfair for individuals or companies that must face obligations because of undertaking broadcasting activities when others offering similar services are excluded from shouldering these obligations because they are defined outside the system.

There is a need to adopt a more comprehensive definition of broadcasting and broadcasting services in line with international practices and technological developments. There should be no ambiguity as to which service fall within this definition.

All undertakings, which offer programming to the South African public, must be required to obtain a license before undertaking broadcasting activities and appropriate license conditions must be enforced if there is to be fairness and certainty in the broadcasting system.

In addition to requiring all undertakings to obtain licenses before operating, channels, which are offered to the South African public, must also be licensed as individual channels. This will create the conditions for setting public interest obligations at an appropriate level.

There is wide spread consensus that the categorization of different classes of licenses in the IBA Act is inadequate. Further more, the way services are differentiated to public, private and community obscures the differences in services and therefore prevents the setting of appropriate regulation and obligations.

The main reason militating against this formulation also relates to allowing different types of services competing against each other but faced with different obligations, requirements and conditions.

Classification of broadcasting services should be functional, convenient for regulating and licensing procedures, related to generic forms of broadcasting and helpful in enforcing compliance with various regulations.

The present classification in terms of pay and free-to-air services does not fulfill any of these requirements. On the other hand it discriminates the poor and the disadvantaged groups by putting the pay services on a different footing and subjecting them to less stringent regulations. The following the classification of broadcasting services are suggested:

• Basic broadcasting service

The South African people attach considerable importance to Public Broadcasting as a critical contributor to the way in which they think and live their lives. SABC radio and television services are the most widely seen, heard and trusted sources of news and information in today’s South African society. Both media are also the most valued and appreciated providers of entertainment and culture, and they play a valued role in education, both formal and informal, of people of all ages.

Public Broadcasting is therefore at the heart of South African society. Thus, the structure and composition of the Public broadcasting Sector, the purpose and motivation, and the programs and services that it offers are vital factors in reflecting and shaping our society.

It is widely agreed that the SABC should continue as a public service broadcaster in South Africa. This was apparent from the responses to the Government’s Green Paper. Even with the increasing choices available to South Africans, people across all racial, professional, social, and economic spectrum believe there is a place for public service broadcasting in the 21^st century, and the SABC is the public service broadcaster of choice.

There is also widespread agreement that the SABC’s objectives should include:

• giving priority to the interests of the viewers and listeners
• providing diversity and choice in its programs. The public, it is argued, values the widest range of programs. The SABC’s output should contain both programs which appeal to large audiences, and those for specialist, educational and minority audiences. Its programs should continue to inform, to entertain and to educate.
• reflecting the national identity and diversity of the country. The SABC should broadcast events of national importance. It should ensure that the rich cultural heritage of all parts of South Africa is represented in its programs, and is available throughout the nation.
• enriching the cultural heritage of South Africa through support for the arts. The SABC should remain a major cultural patron of music , drama and the visual arts. It also should continue to commission and broadcast new works, and to nurture creative talents.
• aiming for high quality in all its output. Although quality in broadcasting is difficult to define, the SABC should strive for high standards across all programs. This includes creativity and originality, as well as the standards production, and the technical quality of its services,
• achieving/maintaining independence in its editorial decisions, for interference by government or special interest groups would undermine the SABC’s effectiveness as a "spokesmen" for all the people if it appeared that editorial decisions are being influenced by those who wished to manipulate audiences for their own purposes.
• Reaching people throughout South Africa with programmes appealing to people with different tastes and interests, of all ages, races and backgrounds, and living in different parts of the country. The SABC should try to ensure that every household can access and use its services, for people should receive a reasonable return for their license fees
• Making long-term investments in South African broadcasting. The SABC should take a lead in nurturing talent, training people in production skills, and carrying out research and development, for the benefit of broadcasting and the audiences in the country.
• Giving value for money. Public funding through the license fee places on the SABC an obligation to keep looking for improvements in efficiency, so that license payer’s money is used as effectively as possible.
• The SABC should continue to build on the saving of overhead, enabling it to spend more on making programs
• Being properly accountable for its activities and expenditures. While some improvements have been made, more needs to be done to modernize the SABC’s accountability to Parliament and to its audiences, and to ensure that the SABC operates in accordance with established principles

There has been no systematic treatment and therefore also no consensus about the SABC’s role as a commercial operator within the context of its programming activities. International best practices in this field, if so desired and encouraged, should demand of the SABC to do more to exploit its assets, not just its programs but also its expertise and reputation as a national public service broadcaster.

Implications of this position would be for the SABC to continue to make programs as well as to broadcast them. It would include reaching out to cable and satellite services and to support its program services through the sale of audio and videocassettes based on its programs, including educational and training materials.

This position would demand of the SABC to carry out its commercial activities in ways which are consistent with its public service objectives, which reflect its values, and which are linked to its programs.

It would also demand of the SABC to compete fairly and that it is seen doing so. Its commercial activities should operate at arm’s length from its public services. It should be committed to fair and open competition, and should have a financial and accounting framework, which ensures this.

The public broadcaster has been re-organized into a formal corporate entity for the purposes of fulfilling, as well as (indirectly) funding its mandate.

The public broadcaster’s mandate shall include societal goals and local content. The public broadcaster’s mandate shall be greater than that of private broadcasters.

SABC’s mandate falls within the overall responsibility of the Department of Communications and the Parliamentary Committee on Broadcasting.

In order to fulfill its mandate, the public broadcasters shall have access to greater variety of financial resources than the private broadcasters. These resources shall include license fees as well as advertising revenues.

The spectrum occupied by SABC’s television and radio services belongs to the state. In the context of digitization, the digital channels will be allocated according to public, social and economic objectives.

The major portion of SABC’s public service mandate shall be concentrated on two TV services while the third shall be commercially orientated with public service obligations similar to the private free-to-air broadcaster.

SABC shall endeavor to finance the major portion of two channels costs through license fees; however, SABC shall have access to some of the advertising and sponsorship revenue pie.

SABC will undertake publicity campaigns, public education and incentives, to increase the license fee compliance rate in conjunction with the Revenue Department and private partners as required.

One TV channel shall operate as a public commercial channel. It will help subsidize public service obligations of the SABC as a whole.

Advertising and sponsorship revenues will generate the revenues of this SABC channel. This channel will also generate revenues from merchandising, syndication and other revenues. It will be l able to sign co-production agreements with foreign broadcasters to maximize cost efficiencies. The public service obligations including local content shall be comparable to that of a private over-the-air broadcaster.

The operating profits of this channel shall be paid in the form of a dividend to the fiscus. The Department of Communications shall determine the portion of operating profits to be re-allocated to SABC’s public channels or used for other purposes within the portfolio (e.g. educational broadcasting).

BOP broadcasting shall be re-organized under SABC as a separate for-profit business unit with a programming line-up of the existing satellite service.

Its local content obligations shall be comparable to private broadcasters operating in this class of license.

The satellite service shall be a satellite service carried on SABC’s Astrasat. The service shall also be available free-to-air in the Gauteng region. A pubic hearing shall deal with the possible extension of the service to other regions via Sentech’s distribution network.

The distribution of this service shall be negotiated with carriers on a commercial basis.

Considerable discussions have taken place on the need for a dedicated educational channel over the past two years. Educational broadcasting in South Africa is a relatively new concept. There is not sufficient implimentation experience to draw on and make reference except the discussion documents of the past two years.

It is important to make a distinction between educational broadcasting and educative broadcasting. Most submissions on education defined educational broadcasting to mean:

• The use of television and radio in a holistic and integrated manner in the provision of education and training. It includes programmes, activities and events of an educational nature that support the educational process in the country. These programmes, activities and processes encapsulates all sectors of education. These relate to early childhood education, pre-school support, teacher development, adult basic education to public education.

The Departments of Education and Communication have set up a study group to investigate the viability and sustainability of a dedicated channel of Education. We recommend that the Regulator must interact with the two departments and advise on regulatory regime, which should govern this channel. License fee on broadcasting undertakings could finance this channel.

The Green Paper indicated that in many countries, private operators are required by law to work towards realising defined policy principles and objectives laid down by Parliament. These objectives have to be balanced against the profit motivation of private broadcasters.

At present there is no full time free-to-air private television station, although the IBA is in the process of hearing applications for a new private free-to-air station. M-Net, established in 1985 as South Africa’s first private subscription television service provides two encrypted services broadcasting terrestrially, concentrating mainly on movies and sport while also offering some series, mini-series, special events, children’s programs and general entertainment programs. In addition, some community service programming for various foreign language and religious communities is provided. A two-hour open window broadcasts programmes form 17h00 to 19h00 unencoded. M-Net also provides a bouquet of channels on Digital Satellite TV. This bouquet, the Multichoice bouquet, consisting of M-Net, Movie Magic, Supersport I and II, Supersport Gold, Supersport Soccer, the Soap Channel, a music channel - Channel O and the K-TV channel for children. It is estimated that M-Net draws about 36% of viewing in South Africa and 15 % of television advertising revenues.

In radio, there are presently sixteen private for profit radio stations operating throughout the country, including six sold by the SABC. These stations offer a variety of programming formats ranging from talk in both English and Afrikaans, adult contemporary music to classic music. Target audiences are varied but concentrate on the LSM’s five to eight. SABC received 72.4% of all listening in October and November 1997 with the Independent Private sector receiving 21.2%

The Green Paper indicated that private broadcasting could expect to be treated differently by Parliament and the regulator because they represent investments by private citizens. It also recognized that obligations might vary by the type of service provided. At the same time private broadcasters should be expected to play a significant role in providing services to minority groups and the disadvantaged. Similarly, it could be expected that private broadcasters would be required to meet defined and realistic population coverage goals.

The TASK TEAM has identified a number of objectives for private radio and television that could inform the final position. These are as follows:

• Private broadcasting has a key role to play in the forging of a new South African identity. A healthy and vibrant broadcasting industry can play an important role in building nationhood by reflecting the rich cultural, language, religious and regional diversity of South Africa by:
• Providing a comprehensive range of programming free over-the-air.
• Providing diverse services addressing a wide cross-section of the South African public, including the previously disadvantaged and minority groups
• Providing programming directed specifically to all of South Africa’s official language groups
• Developing national sports programming so as to provide a shared national experience of pulling together for a common cause. This must include the broadcast and promotion of developmental and amateur sports. Such broadcasts must be available to most South Africans.
• Private broadcasting services must be extended to all South Africans and provide comprehensive coverage within a reasonable period of time.
• Reflecting the culture, character, needs and aspirations of the peoples of all of South Africa’s provinces and regions.
• Meeting the special requirements of the regions, at the time that regional services become available, by developing a sense of regional identity.
• Private broadcasters must make a significant contribution to the broadcast of South African programming by:

• Providing predominantly South African content.
• By broadcasting South African drama, documentaries and children’s programmes that reflect South African themes, literature and historical events and that make significant use of South African writers, directors, musicians, actors and craftspeople.

• Acquiring appropriate amounts of their programming from the independent production industry.
• Private broadcasters must compete in an equitable manner by the creation of sub-categories of licences that set out the requirements of each.
• Broadcasters should belong to one sub-category only and should only have access to the rights and be bound by the obligations that sub-category.
• Private radio and television stations have an important role to play in the on-going democratisation of South Africa. In particular, they must provide news and commentary that allow the participation of all sectors of the population in our national life. They must do so by:
• Broadcasting news and information programs on a regular basis. In particular, it is expected that they would provide in-depth reporting and discussion on matters of national significance such as general elections and national commissions and enquiries.
• Meeting the highest standards of journalistic professionalism and integrity.
• Ensuring that their programming provides a balance and wide variety of points of view on matters of public concern.
• Radio in particular has an important role to play in this context as it can be provided at lower cost.
• Private broadcasting must contribute to the development of pro-social values by:

• Being sensitive in its programming that all ethnic groups, men and women, minorities such as the disabled are portrayed in an accurate, fair and dignified manner.
• Making particular efforts to broadcast high quality domestic and international programmes for children and youth at times that are appropriate for them.
• Ensuring that the portrayal of violence in its programming is done in a responsible and non-sensational manner and that particular care be exercised in programming intended for children and youth.

5.2.1 Economic and Regulatory issues

• Private broadcasting shall play an important role in the economic development of South Africa. It can do so in a number of ways.
• There should be fair and sustainable competition in the provision of services. New services should be added to add diversity to the programming mix available to the public in a manner so that the ability of existing services to meet their public service obligations will not be unduly jeopardised.
• All broadcasting services doing business in South Africa should hold a licence from the IBA and pay appropriate licence fees to the public treasury.
• Private broadcasters must provide an appropriate level of employment to the disadvantaged and to minorities. In doing so, plans must be developed to train minorities.
• In order to meet the Government’s priorities for broadcasting enunciated above, priority in the assignment of over-the-air broadcast frequencies must be accorded to free, unencrypted services.
• Revenues for private broadcasting should come primarily from advertising and sponsorships for free-to-air broadcasters whereas the primary source of revenues for subscription services should come from subscription fees.

Any expansion in the number of free-to-air television stations would be via the awarding of additional private licences.

Presently free-to-air television is limited to national services with the exception of BOP TV which, as indicated elsewhere in this paper, would become a separate for-profit service to be provided by SABC nationally via Astrasat and free-to-air in the Gauteng region. The Government wants the existing national services to be extended to at least 80% of the population over the next 3 years.

The IBA must monitor the development of the industry and make recommendations to the Minister as to the appropriate time for the issuing of further licenses. The Minister will then decide if it is appropriate to issue a call for licences.

The Government must direct the IBA to formulate a strategy to achieve a broadcasting system, which is predominantly South African in content. The IBA should include a timetable to meet this requirement. In no case should this period be more than 10 years.

The Government’s commitment to the provision of national sports to all South Africa must find expression in policy and regulation. The IBA Act must be amended to provide a framework prohibiting the acquisition of exclusive rights for national sporting by subscription services. The IBA and the Minister wmust collaborate in a process designed to identify specific events that should be subject to this provision. In addition, the SABC should broaden its coverage of sports to include minority sports.

The Government should also instruct the IBA to review the broadcast of sports by private television broadcasters, both free-to-air and subscription, with a view to maximising the broadcast of developmental sports.

Fair competition between broadcasting services should prevail. All broadcasting services drawing revenues from South Africans should be subjected to a regulatory regime.

The IBA should enforce a requirement that all services distributed in South Africa, whether free-to-air, delivered by Satellite or by terrestrial distributors such as cable or wireless cable technologies must hold a licence.

Sub-categories of licence should be created for all services. Regulatory obligations will then take their nature, services and viability to determine their social obligations.

All broadcasting entities should be required to shoulder public obligations, pay license fees for the use of the public frequencies, and devote a percentage of their revenues to the acquisition of and investment in South African content programs.

Competition should be allowed in all the areas of private operations. Licensing conditions should promote competition on equal footing and remove obstacles to entry.

Since free-to-air services provide the greatest social contribution to the largest number of South Africans, they should have access on a priority basis to the advertising cake. The IBA should review on a two yearly basis the hourly limits on advertising for free-to-air stations to determine whether they are set at an appropriate level. The IBA would consider in its determination whether the share of advertising revenue by subscription services is appropriate and not detrimental to the survival and viability of the free-to-air services.

The development of competition `nd entry of new players in the free-to-air segment of Television will be determined by the availability of the frequency spectrum. As the free-to-air services provide the greatest social contribution to the largest number of South Africans, they should have the first right of refusal over the use of terrestrial frequencies. The present pay channels using terrestrial frequencies should be encouraged to migrate to Satellite distribution platforms.

Radio is the most cost-effective way to provide services to previously disadvantaged groups and un-served geographical areas. It must, therefore, be prioritised and expanded in accordance with a schedule of priorities.

These priorities should include:

• Extending choice of services
• Extending diversity of programme content
• Extending diversity of ownership
• Extending the extent of access to the broadcasting system.

The frequency plan and the way frequencies are allocated should support the above priorities. The aim of introducing new radio services should be to augment the services available and make the system as responsive to public needs and interest as much as possible.

The IBA Act of 1993 caters for three tiers of broadcasting: Public, private and community. The latter is a new phenomenon in South Africa. It is based on the premise that community broadcasting is for the community, by the community, through the community.

The IBA has granted eighty five community radio licenses since 1994. Today sixty seven stations are on air. These stations are largely centered in the urban areas and immediate environs. They are unequally distributed within the country’s nine provinces and the least developed provinces have the least no of community radio stations.

The challenge is to give greater access to the needy areas and provide equal opportunity to the public at large.

Most of the un-served areas do not have their own resources, expertise and skills to develop community broadcasting in their areas. Nor do they have access to or the means to tap whatever assistance may be available to them.

The current IBA Act offers two types of community licenses. These licenses are defined as a community of interest and a geographic community. A number of services operate on the basis of the two sub-categories.

This definition of the community licensee as "any group of persons or sector of the public having a specific, ascertainable common interest" is open-ended and unlimited. This formulation needs to be changed. Whatever common interest need expressed by a potential licensee must be catered for in the framework of a geographically founded community within which all of the common or specific needs of the community can be satisfied to the benefit of and for the participation of all of the people in the community.

Religious stations are a major component of the community sector, reflecting the importance of religion to South Africans across the full spectrum of society. There is ground for the existence of Religious services given the religious nature of the South African population. Given the existence of significant demand for religious services and the real possibility of its expansion in the various community, due consideration should be given to the structure and mandate of the religious services as a different class to the geographic community.

The community broadcasting sector is well placed to play a vital role in the development of a broadcasting system that meets the needs of South Africans at a local level. Many important issues to communities cannot be covered by the national and regional services.

In order to fulfill this role, the community sector must provide a service that compliments the public and private sectors focussing on community needs and interests.

Clear objectives for the community sector should be enforced by licence conditions. Compliance strategies of the regulator must be defined as a part of expanding the community sector of broadcasting.

The community-broadcasting sector must contribute :

• towards achieving national policy goals such as access, equal opportunity, representivity, local content, coverage, human resource development, etc.
• to the well being of all South Africans and should be truly a nation-wide system meeting the broadcasting needs of South Africans at a community level.
• towards nation building, the recognition of a diverse range of cultures, needs and aspirations and the delivery of all of the languages within relevant communities.

Community broadcasting must :

• be for the community by the community, through the community.
• Be represent all of the people in the community in an equitable and democratic manner.

• The management and control of a community broadcasting station must be determined democratically through an open, fair and formally Constituted electoral process.
• Policies and structures of community services must be determined in a manner that fairly reflects the needs and aspirations of the broad community and not a dominant section within the community.
• All of the people within the community must have an equal opportunity to participate in the running of the broadcasting station as well as the selection, provision and delivery of the programming of the broadcasting Service.
• The prime objective and vision of community broadcasting and its related activities is to promote development of particularly the needy in our society:

6.4 SPECIAL CONSIDERATIONS

Millions of South Africa who have no communication means at their disposal. The communications infrastructure and broadcasting in particular is structured along national and regional lines.

Providing for communications infrastructure at local and community level will enable these South Africans to connect to the most modern communications networks for information, educational materials and entertainment.

The provision therefore of communications infrastructure at community level is a basis and condition for development. Special consideration should be exercised for the sustainable development of community sector. The primary focus of the community sector would be the needs of the poor and the disadvantaged. This fact again supports the calls for special consideration of this sector.

A coherent national strategy should drive the extention of the sector to reach all the needy areas. Elements of this strategy should include:

• Frequency planning – frequencies must be set aside specifically for the maintenance and expansion of community broadcasting.
• Preferential tariff rates - rates for signal distribution can help in facilitating the expansion of this sector to the areas of greatest need. The IBA should be required to report to Government on tariffs structure
• Resources strategy which include training, human resources development, and financing

The chapter on signal distribution of the Green Paper made mention of two issues on Spectrum Management. The need to prioritise the use of the VHF/UHF spectrum and that of fair and equitable allocations for Telecommunications and Broadcasting. It posed a question as to the establishment of an independent Spectrum body.

South Africa has two regulators. South African Telecommunications Regulatory Authority (SATRA) established by Telecommunications Act No. 103, 1996, with the duty of managing telecommunications spectrum.

Independent Broadcasting Authority (IBA) established by –IBA ACT of 1993 with the duty to manage Broadcasting spectrum.

Chapter IV of the IBA act empowers the IBA to administer, manage and plan the broadcasting frequency bands. Section 29 of the Act states that: Notwithstanding any provisions of the Radio Act, 1952 (Act No. 2 of 1952) or any other laws to the contrary

• All powers, functions and duties in relation to the administration, management, planning and use of the broadcasting services frequency band.
• In administering, managing and granting permission to use the broadcasting service frequency bands, the Authority shall comply with the applicable standards and requirements on the ITU as reflected in its current Radio Regulations, as agreed to or adopted by the Republic, and shall give its co-operation with a view to enabling the Director General to meet the obligations of the Republic to ITU as and when necessary

A body that is not responsible for the provision of services utilizing spectrum must administer spectrum management in South Africa.

In other words spectrum management and allocation decisions should not be taken by the armed services, the police, telecommunications companies, broadcasters, signal distributors, airline interests or the like.

A body needs to exist that retains overall responsibility for the efficient, effective and economic use of the country’s spectrum assets. These assets are immensely valuable and should be exploited in ways, which best meet, the needs of the country as a whole.

No sectional interest should be preferred above another. A body independent of sectional interests is best placed to make major management and allocation decisions and to rule over demarcation disputes.

Many other countries have specialist regulatory agencies of this kind.

And whether they have a separate specialist agency or, as an alternative, the function of spectrum management is merged in an agency with other, related functions, most countries acknowledge the need to separate spectrum management from spectrum use.

The conflicts of interest that inevitably arise when a spectrum user is also the spectrum manager are impossible to resolve in a publicly acceptable way.

Spectrum allocation is, as well, an international affair.

In order to ensure that domestic use of the radiofrequency spectrum does not have international consequences that are unintended, many domestic allocation decisions follow international practice.

The International Telecommunications Union is the principal international forum within which international consensus is reached about spectrum use, and ITU Conventions have, in some countries, been given the equivalent status of international treaties.

This international work also needs to be conducted on behalf of the State by an agency that is independent of spectrum users.

In order to achieve these ends a Spectrum Management Agency should be established, by Parliament, within the portfolio of the Minister for Communications.

The Agency should be vested by Parliament with the function of overall supervision of South Africa’s radiofrequency spectrum in order to maximize, by ensuring the efficient allocation and use of spectrum; the overall public benefit derived from using the radiofrequency spectrum

However, the Agency should not commence operations until 1 January 2001, the time at which open competition is due to be introduced into the signal distribution business. Accordingly, administrative arrangements for its creation will not be finalized until shortly before that date, and, in any event, those arrangements will not be finalized until after the Regulator has reported the results of its inquiry into the regulation of the signal distribution sector. That report is not due until 31 December 1999 according to this proposal.

Nevertheless Parliament should be asked to approve of the establishment of the Agency and of the timetable for its commencement. The Minister will be given the authority to make all necessary administrative arrangements relating to the establishment of the Agency.

SIGNAL DISTRIBUTION

The Green Paper set out in very brief form the signal distribution position in South Africa at the present time.

South Africa has two organizations currently engaged in the business of signal distribution – Sentech and Orbicom.

Sentech – an enterprise originally brought into existence when the SABC divested itself of its signal distribution capacity, and now authorized by the Sentech Act No 63 of 1996 – operates as a common carrier broadcasting signal distributor licensed by the IBA.

Orbicom – a private company which is the planning and building arm of Multi-Choice Africa, (owned by MIH Holdings Ltd.) – operates as a licensed signal distributor, principally managing a system of fibre and microwave facilities which are leased from Telkom.

Chapter V of the Independent Broadcasting Authority Act, incorporating Sections 32-38A of the Act, empowers the IBA to license three categories of signal distribution in South Africa –

• A common carrier to provide broadcast signal distribution for broadcasting licensees in the manner contemplated by section 37 of the Act
• A person who is to provide broadcasting signal distribution for broadcasting licensees on a selective and preferential basis, and
• A broadcasting licensee who chooses to provide, either wholly or partly, broadcasting signal distribution for himself or herself but who does not provide the same for any other broadcasting licensee.

Section 37 of the Act provides that a common carrier shall –

• (a) Be obliged, subject to its technological capacity to do so and to the provisions of paragraph (b), to provide broadcasting signal distribution to broadcasting licensees upon their request on an equitable, reasonable, non-preferential and non-discriminatory basis
• (b) In determining its tariffs, duly take into account, inter alia –
• The three different categories of broadcasting licenses, and
• The nature and technical parameters of the service provided to each broadcasting licensee with a view to ensuring that the different tariffs are appropriate to and commensurate with the various broadcasting services to which they relate

Common carrier licenses are valid for fifteen years, preferential providers are licensed for eight years, and broadcasters’ signal distribution licenses are valid for the term of their broadcasting licenses.

There is foreign ownership (40% financial or voting interests) and control restrictions on broadcasting signal distribution licensees.

The signal distribution policy, strategy and regulation play a fundamental role in the extension of services and the broadcasting system. Signal distribution plays a key role in the achievement of universal access. A number of objectives must inform policy and the regulatory strategy on signal distribution. These objectives are as follows –

• There must be universal access to signal distribution services and facilities

• By content providers to distribution facilities, and
• By end users to content (broadcasters and viewers)

• Signal distribution must be affordable

• Tariffs must be appropriate to the capacity of disadvantaged groups to pay for services
• A scheme of tariff regulation will need to be designed and introduced

• Signal distribution systems must be open and interoperable, harmonized with the region and able to meet international distribution standards
• Signal distribution must generate revenues for redistribution, whether in the form of dividends, license fees, or contributions
• Both public and private distributors must make an equitable contribution of revenues
• There must be regulatory accountability for signal distributors
• The South African environment must be prepared for the eventual emergence of fair and sustainable competition and technological choice
• Different categories of signal distribution might require some different license conditions and regulatory requirements
• Market inefficiencies in the business of signal distribution should be minimized to the greatest practicable extent
• In the short to medium term, during which there might be a shortfall in capacity to deliver signals, some client priorities for signal distribution might need to identified. Those priorities should reflect

• South Africa’s social goals
• The needs of the broadcasting community
• The needs of end users of broadcasting services

• South Africa’s radiofrequency spectrum allocation plans should reflect South Africa’s social goals
• Vertical integration of signal distribution and broadcasting services should be minimized
• South African control of signal distribution services should be retained, but the level of foreign voting interests need not be as restrictive as at present
• Self-help arrangements for signal distribution should be facilitated as much as possible