WHITE PAPER ON BROADCASTING POLICY

Department of Communications

4 June 1998

Contents

Foreword

Acknowledgements

Executive Summary

Chapter One
Chapter Two
Chapter Three
Chapter Four
Chapter Five
Chapter Six
Chapter Seven
Chapter Eight
Chapter Nine
Chapter Ten
Chapter Eleven

Preamble

2.1 The Broadcasting Act 1976
2.2 A Statutory Charter for Public Broadcasting
2.3 Proposed Mandate for SABC Commercial

2.3.1 Objectives
2.3.2 Functions

3.1 Objectives for Private Broadcasting
3.2 Economic and Regulatory Issues
3.3 The Responsibilities of the Commercial Broadcaster

Foreword

By Jay Naidoo, Minister for Posts, Telecommunications and Broadcasting

The Independent Broadcasting Act 153 of 1993 commenced on 30 March 1994 and South Africa adopted, for the first time in its history, a democratic broadcasting dispensation.

On behalf of the Government it is now a great honour for me to present to the people of South Africa, a set of policy objectives and principles which underline the first policy framework for broadcasting in this country.

The IBA Act does not provide for a clear policy framework which should take into account the diverse needs of the South African society or the rapid changes in broadcasting technology.

A primary object of this White Paper on Broadcasting Policy is to ensure that the South African system is imbued with the important public interest values of access, diversity, equality, independence and unity as well as fundamental human rights contained in the Constitution.

The White Paper also seeks to ensure that the frequency spectrum which is a valuable natural resource, remains an asset that belongs to society at large. And that frequencies are allotted such that broadcasting is available, universally, to all of the people and that it caters for the diverse needs of the total population.

The policy framework in the White Paper is a culmination of wide public consultation through a Green Paper process and a colloquium involving all major stakeholders in the broadcasting industry as well as international experts.

A Technical Task Team was appointed on 25 August 1997 to formulate the Broadcasting Policy framework. Following the Colloquium, responses to the Green Paper and meetings with the stakeholders, the White Paper was drafted, again discussed with stakeholders and finally formulated as the formal White Paper to reflect the broadcasting policy for South Africa.

I would like to thank the many people who gave so much of their time to contribute to the formulation of this extremely important and historical document. There are too many to single out names. Suffice to say that they have given invaluable service to their country and to lay the foundation for broadcasting in the future South Africa.

Jay Naidoo
Minister for Posts, Telecommunications and Broadcasting

Acknowledgements

The Minister for Posts, Telecommunications and Broadcasting would like to acknowledge the contributions of all individuals and organisations who participated in the production of the Green and White Papers on Broadcasting Policy. In particular, he would like to acknowledge the following :

Professor Njabulo Ndebele

We would like to extend a special word of thanks to Prof. Njabulo Ndebele who chaired the Stakeholders' meetings throughout the process.

Technical Task Team
Mr. SJ Mjwara (Leader)

International:
Mr. PJ de Klerk Mr. P Fleming
Ms M Keshupilwe Mr. S Jack
Mr. J Matlou Mr. P Lyman
Mr. Z Makalima Mr. RC Mishra
Mr. S Mokoetle Mr. E Voigt
Ms N Nkosi Mr. P Webb

Department of Communications
Mr. A A Ngcaba Communication Services
Mr. C Molusi Postal Business Unit

Stakeholders Committee
Mr. H Bopalamo Mr. A Karrim Mr. T Rantho
Prof. G Berger Mr. S Khala Mr. T Sanderson
Mrs. D Beukes Mr. M Kwape Ms. F Sekha
Mr. M Booi Ms. L Lloyd Mr. Z Sisulu
Mr. S Cullis Mr. N Maepa Mr. E Sithole
Mr. G de Villiers Ms. C Mahlati Mr. N Smuts
Mr. D Dison Mr. N Maphiri Mr. C Thondlana
Mr. N Douglas Mr. P Matlare Mr. D van der Berg
Ms. C Ehlers Ms. P Moholi Prof. J van Zyl
Ms. A Gillwald Mr. M Mokhine Ms. N Viljoen
Dr. J Higgens Dr. S Mokone-Matabane Mr. M Vundla
Mr. M Hlongwane Mr. V Naidoo Mr. P Vundla
Mrs. L Jordaan Mr. P P Ngwenya Mr. L Zim
Ms. L Kaplan Mr. D Niddrie Prof. P Zulu

Submissions.

We thank the following organisations who made submissions to the Green Paper:

Advertising Standards Authority of SA National Council for Persons with Physical Disabilities
Advisory Committee on Catholic broadcasting National Community Media Forum
Applied Broadcasting Centre National Community Radio Forum
Association of Advertising Agencies New Channel TV
Association of Christian Broadcasters News Paper Press Union of SA
Association of Marketers Open Society Foundation for SA
Bernard Spong Orbicom
Broadcasting Industry Liaison Committee Peninsula Technikon
CAN 98.7 FM Pretoria College
Channel Africa Primedia
Classic FM Potchefstroom Universiteit vir Christelike Opleiding
Consumer Electronics Association Qwa-Qwa Radio
C-Talk Radio Adullam
David Blood and Associates Radio Alpha
Development Bank of South Africa Radio Buschbuckridge
DEAF People of SA Radio Grensboer
Dept. Arts, Culture, Science and Technology Radio Kwezi
Dept. of Education Radio Morester
Dept. of Environmental Affairs and Tourism Radio Pretoria
Dept. of Finance Radio Pulpit
Dept. of Sports and Recreation Rand Afriaanse University
Disabled People of SA Rhodes: Dept. of Journalism and Media Studies
Freedom of Expression SA Catholic Bishops Conference
Good News Community Radio SA FM/Seniors
Independent Broadcasting Authority SA National union of Seniors
Independent Forum for Religious Broadcasting South African Broadcasting Corporation
Independent Film and Television South African Broadcasting Corporation Education
Institute for the Advancement of Journalism South African Digital and Audio Broadcasting Association
Internet Service Providers South African Telecommunications Regulatory Authority
Independent Producers' Organisation Sentech
John Tsesmelis Station For The Nation
JOHNNIC St Vincent School for the Death
Joint Enrichment Project TABEMA
Kaiser Family Telkom
Kameelpos Vereeniging Times Newspapers
Limpopo Community Radio Transtel
Link FM Trinity
Mangosuthu Technikon University of the North West
Media Monitoring Project Uplink
M-Net Vaalharts Comm. Radio
MultiChoice Witcliff Enterprises
M-Web Worldspace
National Association Broadcasters Yfm

Editing and Proof Reading

Mrs Brenda Kali
Prof A Stavrou

Secretariat
Mr. T Ndlovu Ms N Mtana
Mr. J. Koekemoer Ms L Mbhele
Ms P le Roux Mr. M van Niekerk

Executive Summary

Chapter One: A New Broadcasting Vision for South Africa.

The history of broadcasting in South Africa, had since inception, been characterised by politicisation of the broadcasting system. Broadcasting was, thus, used to entrench an oppressive political system that kept a large section of the population out of the public life of the country.

With the inauguration of a new democratic political system in the early 1990's, a process was set into motion to re-regulate the broadcasting system, introduce new broadcasting players and place the regulation of the broadcasting system into the hands of an independent broadcasting authority.

The broadcasting policy process underway seeks to set up a broadcasting system based on universal access, diversity within a framework of national unity, democratisation of the airwaves, national building, education and strengthening the moral fibre of society.

This policy process is underpinned by constitutional principles of freedom of expression, equality, equality of all languages, multi-culturalism, choice and diversity within a framework of national unity .

The new broadcasting policy seeks to establish a three-tier system for the broadcasting industry; namely, policy formulation and development for the government, licensing and regulation for the independent broadcasting authority, and service provision by broadcasters.

Chapter Two: Public Broadcasting

This chapter outlines policy initiatives that are required to re-position public broadcasting services in South Africa, in the light of the increasing entry of new broadcasting players and delivery platforms into the market.

A Statutory Charter for governing the public broadcaster, the South African Broadcasting Corporation, is recommended. A hybrid model - of generating funds from both public coffers and the private sector - is recommended for the SABC to enable the corporation to withstand competition in the market.

Chapter Three: Private Broadcasting

Private investment in broadcasting differs from ordinary business activity. Broadcasting involves the transmission of values and attitudes, and therefore the regulation of private broadcasting has to balance off investments on the one hand, and the role, duties and responsibilities of broadcasters, on the other.

Policy calls for the imposition of specific broadcasting licence conditions on private broadcasters to make a contribution either through programming or funding of educational and information programmes, the production of South African programme material, promotion of all languages and the multi-cultural nature of our society.

Issues such as limitations on foreign ownership and investment, as well as cross ownership of various media affect private broadcasting.

However, policy acknowledges the different services offered by private broadcasting. Satellite services, pay services and free-to-air services - all these different services require specific licence conditions and obligations commensurate to the nature of their operations.

Chapter Four: Community Broadcasting

Community broadcasting has been introduced to give access to needy areas with little resources, skills, expertise and funding. The Regulator, the IBA has granted eighty-five community radio licenses and, to date, sixty-seven of these are on air. However the majority of these community stations are based in urban areas and the least developed parts of the country have the least number of community radio stations. The challenge of the national strategy to roll out the community sector is to give greater access to the needy areas in order to provide equal opportunity to the public at large.

The current IBA Act has two types of community licenses. These are defined as a community of interest and one that is geographically founded. Community broadcasting must be inclusive of whatever common interest need is expressed by a potential licensee. It should be geographically founded and serve the specific community within a determined geographic area. It must represent all the people in the community both in ownership and control and in decision making.

Community broadcasting must provide a distinct broadcasting service dealing specifically with community issues that are normally not addressed by other broadcasting services in the particular region. Community broadcasters will be expected to draw their revenues from advertising, sponsorships, grants and donations from their respective communities. They will have no restrictions to accessing local advertising. National advertising will be restricted through regulations of the IBA.

Whilst community radio has steadily expanded over the past three years, community television has not yet been introduced to this sector. The IBA will be asked to investigate the viability and impact of community television in a public process.

Chapter Five: Classification of Broadcasting Services

There is a need to adopt a more comprehensive definition of broadcasting and broadcasting services, as the IBA Act definition is inadequate. As a result DSTV operates without a license granted by the IBA and is exempted from obligations imposed by the IBA on other broadcasters.

A new definition of broadcasting needs to be in line with international practices and technological developments. All broadcasting services such as distribution, satellite and terrestrial are to be licensed and regulated by the IBA. Public service broadcasting will be classified into the following license categories:

Community broadcasting will be licensed in the free to air terrestrial radio broadcasting service.

Private broadcasters will be licensed in the following categories:

Mandatory public obligations will be imposed on all distribution services.

Chapter Six: Signal Distribution

The television broadcast network in South Africa reaches only 60% of the population, which means that 40% of the people have no access to television. The regulatory strategy for the signal distribution sector is to achieve universal access to service and facilities. There must be access by content providers and access by end users to content (broadcasters and viewers). Signal distribution must be made affordable and a flexible tariff structure must be put in place for services where public interest imperatives apply.

Access to high sites will be afforded to all signal distributors upon the opening of the signal distribution market to competition in the year 2000. Different licenses of signal distribution will be granted and the regulator will be asked to develop a scheme for tariff regulation. Priorities for signal distribution should reflect South Africa's social goals and needs of the broadcasting community, and the needs of the end users of the broadcasting services. South African channels will be prioritized in pursuit of this objective. South African control of signal distribution will be retained.

Government feels that a Spectrum Management Agency should be established to be responsible for the overall function of policy development, research and planning of the use of the spectrum. It is targeted that this agency will commence operations by the year 2000.

Chapter Seven: Digital Convergence and Multi-Media

Multi-channel delivery systems should be introduced to serve social goals, cost efficiency and effectiveness. These systems should play a significant role in meeting the following goals:

Economic advantages in the introduction of multi-media services include the provision of employment and training, opportunities for the manufacturing industry and the provision of services to marginalised groups.

The Regulator is to conduct a public inquiry and report on a regulatory regime for multi-channel distribution systems. There will be competition in the delivery of services between satellite and terrestrial. All providers of multi-channel services will be required to hold a license. Non-broadcast services, i.e. data transmission will be required to hold a license. The service provider will pay license fees to the Regulator. Access to the Internet should be provided to as wide a population base as possible.

Chapter Eight: Broadcasting and Human Resource Development

Broadcasting has a role to play in human resource development through:

Different players in the broadcasting industry; such as the public broadcaster, the commercial, community and education sectors, have different responsibilities to fulfill to ensure that this role is achieved effectively and efficiently.

Chapter Nine: Ownership and Control

Policy in broadcasting must achieve the objectives of empowerment through the transformation of the broadcasting sector. This transformation will encourage the ownership and control, active involvement in managerial and operations levels and professional skills development of the previously disadvantaged in the broadcasting sector.

Furthermore policy will look for means to increase foreign investment while ensuring that control remains in the hands of South Africans. Policy will also control cross media ownership. The regulator will design relevant licence obligations and monitor performance with regard to these issues.

Chapter Ten: Financing Broadcasting in South Africa

The government will support the production of local film and television so that there is sufficient quality local programming to provide sufficient level for South African windows. A fund will be established to achieve these goals.

Chapter Eleven: A New Regulatory Framework

South Africa's regulatory framework for broadcasting is based on the democratic principles where the Parliament, the executive and the courts have shared responsibilities.

This framework has definite social and economic outcomes it seeks to achieve. Moreover, this framework calls for the broadcasting and telecommunications regulatory functions to be merged into a single body.

Preamble

Broadcasting can make an inestimable contribution towards the social, political and economic development of South Africa.

Broadcasting can disseminate information, provide education and create empowerment which leads to economic growth.

Broadcasting can promote democracy and nation building which will enhance the development process.

Involvement in the broadcasting industry has hitherto been the preserve of the privileged few. Meaningful participation by historically disadvantaged groups and the development of skills will inject greater mobility in the industry and the generating effect of that will feed the national economy.

A clear broadcasting human resource development programme involving the nurturing and development of young talent will grow the local production capacity.

An increase in South African content in the broadcasting system in both programming and the production process will grow the total broadcasting production industry to the benefit of the economy at large.

There must be minimum news and actuality programme delivery required of all broadcasters; the appropriate amounts should be determined for each sector in turn.

Public interest must be protected and reflected in access, diversity within the framework of national unity, equality and independence.

The policy framework must cater for meaningful involvement of the historically disadvantaged groups in the broadcasting sector through tangible ownership and control.

Clear, integrated human resource development programmes with performance indicators and monitoring standards must be laid down.

Broadcasting policy must promote free and fair competition and that the South African broadcasting system can be competitive in the global society.

The new broadcasting policy framework must define intermediate and long-term policy ends and allocate roles and assignment of tasks.

BROADCASTING POLICY FRAMEWORK

Chapter One : A New Broadcasting Vision for South Africa

1.1 The Past

The South African broadcasting system existed for decades as one of the most politicised broadcasting systems in the world.

The politicisation of the broadcasting system was institutionalised and manifested itself at a variety of levels, including:

A government department set policies, created monopoly conditions and directed the activities of the sole broadcaster.

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

Employment practices and recruitment strategies had to fit into this distorted broadcasting system. People who were trained as broadcasters were not representative of various segments of the population. In fact they represented a community segment of a particular political belief.

Apart from disseminating racial stereotypes and fragmenting the South African population on racial lines, content provided by the system was often political, particularly in the coverage of news and political events. The hallmarks of this broadcasting system were political censorship and the dissemination of propaganda on all services.

The reforms of the last four years have been built upon legal foundations established just prior to the first democratic election in 1994.

The Independent Broadcasting Authority Act of 1993 put in place a new framework for the growth and regulation of broadcasting in South Africa.

The Independent Broadcasting Authority was created to reform and regulate the whole of the broadcasting sector.

The IBA's administration of this task has been such that South Africa now has a much more developed broadcasting sector.

The country now has a number of private radio stations, offering commercial services, and a larger number of community radio stations.

The South African Broadcasting Corporation has been reformed internally, although the Broadcasting Act 1976, which created the SABC as a statutory corporation, has not been amended.

The first privately-owned free-to-air television service was recently licensed by the IBA.

These reforms, and others, have been aimed at putting in place a range of more diverse services to help overcome the practices of the past.

The establishment of the IBA - to regulate broadcasting in the public interest - was a step prompted also in part by the need for effective, non-partisan monitoring of democratic elections in the country.

The appointment of a new SABC Board in 1994 was also aimed at freeing the SABC from political control.

The Triple Inquiry by the IBA into the Protection and Viability of the Public Broadcaster, Cross Media Control, and Local Content provided the first symbolic evidence that South African broadcasting was capable of being integrated into the international broadcasting system.

1.2 The Present

Despite these initiatives there continue to be many inequalities in the broadcasting sector, and some of these include:

Although the IBA Act of 1993 started the process of reforming the system, service provision and other elements of the system still continue, in the main, along the structured lines of the past. Many services which were catering to particular segments of the population continue to do so.

Access to broadcasting, whether by service providers or by end users, has not improved sufficiently.

The IBA's Triple Inquiry Report did recommend that the SABC should act to upgrade language services to be on a par for the country's official languages. The SABC initiated this endeavour only to cut back due to financial constraints.

For television the IBA recommended the inclusion of all eleven South African languages, but the SABC's television is structured along national lines and some language groups are concentrated in discreet parts of the country.

As well as encountering these impediments to overcoming inequalities, South Africa's only subscription television service remains targeted at the wealthy, predominantly white segment of the population. A satellite-delivered subscription service has since entered the sector, but it also generally targets that same segment.

New radio licences also mainly target the upper echelons of 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 fourth serves the Afrikaans community.

Out of three licences in the Western Cape, one is a talk station in English serving the high end of the market, one is a niche jazz music station and the third is a talk station broadcasting in Afrikaans.

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

Even though community broadcasting has flourished over the past two years, there has so far been no viable plan to roll out this sector to reach the most needy and all geographic areas of the country. Its growth thus far has been sporadic and not according to any national plan. Licence applications have been dealt with on the basis of demand, rather than focussed on needs.

The upshot of all of this is that, for the majority of South Africans, there has as yet been little or no change to the number and choice of services available, or the type and diversity of programming on offer.

The South African broadcasting system currently exists within a context characterised by two factors.

On the one hand, is the quest of a new democratised nation to utilise 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, and equality and respect for the fundamental rights of all South Africans.

On the other hand, South Africa is still shackled by its past; a society deeply divided between haven's and have-not's, which divisions are clearly characterised along 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 mirrors this duality.

Externally, the system displays levels of sophistication that favourably compare with any developing country in the world. The number of broadcasting services in the private, public and community broadcasting sectors, offering a variety of programmes, appears to offer real choices to South Africans.

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

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

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

And in the field of programme production, South African content plays a secondary role to foreign programming. This places South African talent - creative, technical, artistic and administrative - at a significant disadvantage, and threatens further marginalisation of South African culture in the future.

Even though South Africa has spawned a small independent production sector, policies of the apartheid era have ensured that this sector draws talent mainly from one segment of the population.

Ownership patterns in this sector, as in the service provision sector, are skewed in favour of certain segments of the population.

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

The regulatory framework, until now serving as policy on broadcasting needs a major revamp. The regulatory framework does not contain principles that enable South Africans to deal with the globalisation of the broadcasting industry as part of communications industries. At the same time no coherent framework exists to deal with the convergence of broadcasting, information technologies and telecommunications.

Government wishes to make it clear however that it does not wish to explore ways and means of diminishing services available to those that have been favoured by the policies of the past.

It is, though, intent on pursuing every opportunity to promote the historically disadvantaged in all of the sectors of broadcasting, and in related industries.

The Government appreciates that the broadcasting sector is reasonably healthy in economic terms, and that projections for advertising growth are very good. The Government acknowledges that this growth is good for the economy and has general benefits for the whole community. It also seems clear that there is significant untapped potential in broadcasting, and that there is plenty of scope for new services, particularly radio services, throughout the country.

Private broadcasting must contribute directly to the social wellbeing of the country, and not just indirectly to its economic well being. In order to achieve progress in the Government's campaign to offer more and better broadcasting services, so that all South Africans can access those services equally, private broadcasters will have to assume certain obligations in return for the privilege of a broadcasting licence.

1.3 The Future

1.3.1 Approach to the Broadcasting System of the Future.

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

The objectives of the South African broadcasting system are outlined in Section 2 of the IBA Act. It is clear that these policy objectives were developed for the first phase of instituting transformation in broadcasting and did not thoroughly formulate policy ends. As a result, the following areas require clarification:

Policy ends should help the public to visualise 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 it is that must be achieved by the broadcasting system over a period of time.

A reformulation of the policy statements must guide the South African broadcasting system. This will be based on the principles laid out below.

1.3.2 Constitutional Principles

It is of vital importance, that the new Broadcasting Law should contain constitutional principles that have since evolved, for broadcasting to exist within the legal and constitutional provisions. The South African constitution guarantees a number of fundamental rights, which should be taken into account in determining broadcasting policy and its regulation. Amongst these are:

1.3.3 Public Interest

The frequency spectrum is a valuable natural resource, which is an asset that belongs to society at large. The use of the spectrum is, therefore, a privilege and it is in the public interest that the frequencies are allotted such that broadcasting is available, universally, to all of the people and that it caters for the diverse needs of the total population.

Broadcasting Media uses airwaves, which are a limited public resource and to which there cannot be unlimited access by individuals. Airwaves should be utilised for maximisation of the 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, disputes will arise as to the right of the public institutions to determine policy on the allocation of frequencies in the digital age.

While policies to assign frequencies and those governing spectrum usage may change from time to time, the important fact 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:

It is vital that our emerging broadcasting system is imbued with a strong sense of public interest. These public interest values of access, diversity within the framework of national unity, equality, independence and unity are pervasive.

A central public interest principle in broadcasting is that of universal access, that is, the availability of broadcasting services to all citizens. In South Africa it is also desirable to expand the concept of access from the right to receive information to include greater access to the means of production in broadcasting.

The question of access relates directly to the principle of diversity. Access to choice and diversity of choice includes access to a diverse range of language, cultural, religious and regional programming. The real significance of diversity within the framework of national unity is that it secures other benefits for society such as a substantial degree of media pluralism. At least five dimensions of diversity are:

A further expansion is that of equality which is impossible to realize in practice in absolute terms. Thus the concept of proportionality is often used whereby media should reflect the different groups in society in relation to their size. This extends to encouraging new entrants through affirmative action and fair employment practices.

Diversity of opinion is intimately related to the principle of independence, which is central to ensure editorial freedom, particularly on broadcasting services.

The South African broadcasting system in contributing to unity should serve to safeguard enrich and strengthen the cultural, political, social and economic fabric of South Africa. It does so by encouraging the development of South African expression and displaying South African talent.

Consequent upon this role, it is appropriate that all broadcasters contribute to meeting the public interest.

This brings into focus the need for a strong and committed Public Broadcasting Service. Such a service should cater for the needs and aspirations of all sections of our society, particularly the underprivileged and historically disadvantaged. It should ensure universal availability and access and should meet the education, information and entertainment needs of all of the people of South Africa. It should also meet the needs for children's programming and human resource development. Above all it should contribute to nation building.

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

The principle of public interest also imposes obligations on the part of the private broadcasters. These are dealt with 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.

1.3.4 Fostering Democracy and Democratic Values

A well-founded broadcasting system should ensure pluralism in the provision 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 other form of media does in the life of our country. The majority of South Africans rely on broadcasting for their participation in 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. The need for reforms in the broadcasting system in order to bring it in line with the democratic values of the constitution stem from the Government's intentions to enable the citizens to interact better with the institutions of society and to deepen the democratisation of the country.

1.3.5 Complementarity of Roles: Policy Formulation, Regulation and Service Operation.

The enactment of the IBA Act laid the foundations for the separation of powers to formulate policy, and to regulate and provide services. However, in as much as the State was the sole player in all of the three areas of governance, this did not materialise in practice. New problems arose because the Act merged the processes of policy formulation and 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. As such, national policy formulation has been 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, namely policy formulation, regulation and service operation.

Policymaking is a shared responsibility of public authorities and institutions, Parliament, Government and the Regulatory Authority. However, 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. The law needs to allow for some form of interaction between 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 of those involved in broadcasting are established by:

The South African broadcasting system should therefore be restructured along the same lines, as is the case globally in virtually all democracies. This would call for laying down clearly 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 mind the fact that the whole broadcasting system should be geared towards the public interest, the roles and functions for the Parliament, Government and the Regulator should be as follows:

1.3.5.1 Parliament

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

1.3.5.2 Government

The Minister responsible will periodically request the IBA to furnish him with advice and recommendations about these matters.

1.3.5.3 The Regulator

The IBA came into operation in April 1994 and has since made a major contribution in opening up the airwaves in South Africa. Amongst other things, it has:

The perception that the IBA is not accountable to anyone in its activities regarding the implementation of public policy is wide spread and a source of concern. Consideration of the roles of 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 and a Licensing Schedule at least 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.

1.3.6 Diversity of Media Outlets and Ownership

Media influences public opinion and plays a fundamental role in the political destiny of the country. This is particularly so in respect of broadcasting media due to its wide reach, as the most pervasive means of communication.

Any consideration of limiting media ownership to a few hands would be detrimental to the democratisation of South Africa. Concentration and control in a few hands, particularly in foreign hands, might even undermine the sovereignty of the 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 that concentrated media ownership in the hands of a small segment of the population should not be duplicated. 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.

1.3.7 Promotion of Overall Economic Growth

Government will create conditions to promote the development of the private sector by:

The growth of the broadcasting system will result from increased investments, which will be stimulated by the policy framework. It will position the private sector favourably for development in a global environment.

The policy framework will ensure:

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

1.3.8 Reflection of National Identity, Culture and Character

The technological evolution has ushered in a diversity of channels that can be received from throughout the world. While this technological change has increased the choice of programmes that can be received and enjoyed by South Africans, it has thrown up challenges which must be addressed relating to the cultural and economic aspects of the broadcasting system.

At a cultural level, the reflection of the cultural realities of South Africa decreases at a rate that is proportional 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 it is defined by programmes about the South African way of life, values and context.

At an economic level the production capacity and therefore the employment opportunities for South African cultural producers and creative artists, is influenced by the level of South African programming in the broadcasting system. The development of the cultural sector is therefore influenced by policy considerations that determine the extent to which the South African broadcast content is prioritised.

The South African broadcasting system should reflect the identity and the multi-cultural nature of South Africa by promoting the entire spectrum of cultural backgrounds in South Africa. To ensure this, it is necessary that broadcasting entities in South Africa are owned and controlled by South Africans and that ownership patterns of the past are reformed.

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

The 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, behaviour and cultural heritage of all 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.

1.3.9 Redressing the Past and Universal Access

The Green Paper and this White Paper trace the roots of the broadcasting system to deliberate discriminatory policies of the previous government, which ensured an under development of broadcasting services targeting the broadcasting needs of the historically disadvantaged, 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 unattractive to advertisers. The practise of 'first-come first-serve' in the allocation of frequencies also helps to explain 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 carried out and 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 drive frequency allocation. If policy requires that language choice and diversity in terms of broadcast services should be comparable for all South Africans, technical considerations should adapt to this policy by ensuring a large enough geographic coverage so as to reach the critical number of audiences required to make the licensed services viable.

Policy should :

However, 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 Two : Public Broadcasting

2.1 The Broadcasting Act 1976

The South African Broadcasting Act 1976 created the statutory corporation we know as the South African Broadcasting Corporation.

Regrettably, the Act did not set out what the role of the SABC would be. The Parliament of the day obviously preferred not to follow international precedent and outline the role, functions, obligations and responsibilities of the State-owned broadcaster.

This clearly suited the undemocratic government of the day, and the SABC never lacked for political direction.

As South Africa's sole broadcaster for many years, the SABC made insufficient efforts to provide a comprehensive service, catering for all South Africans. Programming was geared to the tastes of the enfranchised ruling class, and coverage was geared to areas where those people lived.

The terms of reference for the South African Broadcasting Act was to consolidate and amend certain laws relating to the South African Broadcasting Corporation and the control of broadcasting in the Republic; to authorise the South African Broadcasting Corporation to issue certain licences. The objects of the corporation were described as:

2.2 A Statutory Charter for Public Broadcasting

The Green Paper identified a number of alternative models for restructuring the SABC. The consultative process established that there was a willingness to consider restructuring of some kind, but in a way that took account of the realities of the commercial market place in both television and radio, and of the present state of the SABC.

Another factor identified during the consultative process was the relationship between the IBA and the SABC. Clearly the IBA should be responsible for the regulation of the broadcasting industry but is not responsible for the formulation of the Charter of the public broadcaster.

The Charter is decided by Parliament as part of the broad national policy formulation. The IBA monitors compliance of the SABC to the Charter and complaints arising from it.

The SABC is to be accountable to Government for the expenditure programmes, budgetary outlays and financial performance.

Parliament will enact a statutory charter for the SABC. This charter will relate to public broadcasting and not to the commercial arm of the SABC. It is recommended this charter 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 the whole country.

A statutory charter for the public broadcasting arm of the SABC will have the following features –

Funding sources for the public broadcaster will consist of licence fees, grants advertising and sponsorship. Advertising revenue of the public arm of the SABC will be less than that of the commercial arm. It is likely that cross-subsidisation of this arm from dividends paid by the commercial arm of the SABC will also be required, as may be some degree of budget supplementation from the general revenues of the Government. The public broadcasting arm of the SABC will also be allowed to sell advertising time, but such services cannot obtain their predominant form of revenue from advertising.

The public broadcasting arm of the SABC will be required to report to the Minister from time to time on the profile of its revenues, in order to maintain a check on performance in this area.

In the event of dispute or uncertainty about the extent of revenues obtained by the public broadcasting arm of the SABC from advertising, the Minister will be given a power to request the IBA to recommend and proclaim, with the Minister's concurrence, an advertising time limit for those services.

The Government does not wish to leave the commercial activities of the SABC unregulated, with the attendant risk that it will have considerable advantages over other private broadcasters.

Accordingly, the Government will restructure the SABC in order to achieve tangible internal separation of commercial from public broadcast activities.

This separation will be a precursor to a later, more complete restructuring of the SABC operational activities, which will review the scope and size of SABC commercial activities and investigate the possible privatisation of, or the introduction of private equity to, the SABC's commercial services. This review will not take place until the impact on the market of the private free-to-air television service can be properly assessed.

The internal separation that is required will involve a detailed, activity-based cost accounting study, leading to arms length contractual agreements about the sharing of common infrastructure and services between the two arms of the Corporation. The rationalisation of redundant SABC production facilities is likely to be a by-product of this work.

The commercial services of the SABC will be licensed as ‘public commercial broadcasting services', and the other services as ‘public broadcasting services'. Amendment of the present definitions in the IBA Act will be effected.

In order to ensure that the proposed separation of activities of the SABC will lead to distinct, definite and different management of each arm, separate management teams will take key responsibilities within each arm. The sharing of facilities and services from a common pool (e.g., studios and equipment, information technology, corporate support and administration etc) will be the subject of enforceable agreements between the two arms approved by the Minister.

The commercial arm of the SABC will be expected to conduct itself in a fully commercial fashion and to provide dividend payments to the portfolio Minister. Reallocation of these dividends to the public broadcasting arm of the SABC will be in the hands of the Minister. Any surplus will be paid into the National Revenue Fund.

The predominant form of revenue for the commercial arm of the SABC will be sourced from the sale of audiences to advertisers.

The commercial arm of the SABC will be subject to the same regulation as the private broadcasting industry. The IBA will impose licence conditions, including local content obligations and the like, on the commercial arm of the SABC. The IBA will monitor the commercial arm of the SABC according to a promise of performance laid down by the Regulator.

It is anticipated that one television channel and four radio stations presently operated by the SABC qualify as commercial services, along with merchandising, programme sales and other commercial activities relating to those services.

The former BOP broadcasting shall be re-organised under the 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 public 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.

2.3 Proposed Mandate for SABC Commercial

2.3.1 Objectives :

2.3.2 Functions:

The SABC will also be given the authority to operate international, particularly Continental, services.

Chapter Three : Commercial Broadcasting

The Green Paper indicated that in many countries, private broadcasting 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.

The public response to the Green Paper indicated that private broadcasters expect to be treated differently by Parliament and the regulator because they represent investments by private citizens. It also recognised 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.

Government understands that this sector should play a far more fundamental role in the broadcasting system. Government is taking direct initiatives to expand the commercial broadcasting sector so as to stimulate investment, growth and provide for employment opportunities.

3.1 Objectives for Private Broadcasting

The Government recognises the important role that private broadcasting plays in providing services for the public.

There are two types of private broadcasters operating in South Africa at present – private free-to-air radio and television, and subscription television, delivered both terrestrially and by Direct to Home satellites. Private free-to-air broadcasting has only one source of revenue – advertising revenues that are derived from delivering audiences to advertisers. These broadcasters must compete with each other, with public broadcasters, with community radio broadcasters, with private subscription broadcasters and with the non-regulated media such as the press and outdoor advertising for the advertisers' spending.

This competition and the needs to derive advertising revenues put some limitations on their ability to meet public service goals.

At the same time, in most countries, private operators are required by law to work towards realising defined policy principles and objectives laid down for them by Parliament. These specific rules and regulations take into consideration the need to balance public objectives and the profit motivation of private broadcasters. But private operators are commonly seen as having a responsible role to play in contributing to public policy objectives.

The Government wishes to create an environment whereby the private free-to-air broadcasting sector can meet the important responsibilities that it is expected to play while being able to attract the investment needed to flourish. It recognises that the free-to-air sector of private broadcasting can meet public policy goals in a way that the subscription sector cannot. Accordingly, in a number of sections of this paper, the Government proposes measures to ensure that free-to-air broadcasters are able to meet their responsibilities. These measures are summarised later in this chapter.

Radio is the most important way of extending services throughout South Africa. Many of our citizens do not have access to television and many more do not have the financial resources to purchase either terrestrial or satellite television services. Public policy must prioritise the provision of free-to-air services, and in the first place, radio services, for the extension of services. This is a shared responsibility between the public, private and community sectors. Private radio focuses its programming on relatively large market segments, neither addressing all sectors of the public nor focussing on the smallest segments.

Private free-to-air television has now been introduced to South Africa. Free-to-air television must have priority over subscription services as it is better able to serve the widest number of South Africans. Private television is particularly expected to play a key role in the provision of South African drama, in providing a new source of national and provincial news and other information programming to the general public, and in providing programming for children. It is expected to extend services to all of South Africa over a reasonable time frame.

The Government acknowledges the substantial investment needed to introduce a television service. For this reason, it wishes to ensure the viability of both the public broadcaster and the private broadcaster before new services are introduced. At the same time, it wishes to see new television services introduced as soon as it is economically feasible to do so.

The Government has the following objectives for private broadcasting:

3.2 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:

3.3 The Responsibilities of Commercial Broadcasters

As was mentioned earlier private broadcasters need access to adequate amounts of capital to launch and sustain their services. A particularly attractive way of accessing this capital is to have a degree of foreign investment.

At the same time, the Government wishes to ensure control of South African broadcasting by South Africans.

At present, these competing concerns are addressed by requiring that no more than 20% of the ownership of a licensee be held by non-South Africans and by requiring that control be held by South Africans.

The Government will request the IBA to investigate and report on the appropriate level of foreign ownership that will increase broadcasters' access to foreign capital while ensuring control by South Africans.

At the same time, the Regulator will be expected to continue to scrutinise all applications, for new stations or for the renewal of licenses, to ensure that South Africans hold effective control.

The Government will expect the Regulator to continue to favour applications with significant levels of ownership by persons from the historically disadvantaged groups.

In addition, applications should be reviewed to consider whether real economic, managerial and operational control resides in the hands of such groups. The Regulator should favour applicants that can demonstrate such control.

3.3.1 Radio

Radio is the most cost effective way to provide services. The expansion of the radio sector must therefore receive priority. This expansion should ensure:

The Government will ask the Portfolio Committees on Communications and on Arts and Culture to undertake a review of the Sound Recording Industry in South Africa. Included in the topics for review are the following:

Following the review, the Government may ask the Regulator to review whether the current levels of South African music are appropriate and whether there is need for any other contribution by the radio industry.

3.3.2 Private Television

After radio, free-to-air television has the greatest ability to meet the public policy goals for broadcasting. 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. It will direct the Regulator to ensure that SABC's commercial service and the new private broadcaster extend their services in accordance with this wish.

The Government recognises that private television uses substantial amounts of risk capital and must have sufficient revenues to be able to meet its obligations. The Government favours the expansion in the number of free-to-air television stations via the awarding of additional private licences. At the same time it recognises that the system will take some time to adjust to the arrival of the new player and the changes to the structure of the SABC's television services. It will therefore direct the Regulator to 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 will direct the Regulator to formulate a strategy to achieve a broadcasting system, which is predominantly South African in content. The Regulator should include a timetable to meet this requirement. In no case should this period be more than 10 years.

Fair competition between broadcasting services should prevail. All broadcasting services drawing advertising or subscription revenues from South Africans should be subjected to a regulatory scheme. Therefore, the Regulator will 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.

The Government's commitment to the provision of national sports to all South Africans 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 events by subscription services. The IBA and the Minister of Sports must collaborate through consultation in a public 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 will 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.

Competition should be allowed in all of the areas of private radio and television operations. Licensing conditions should promote competition on and 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 priority access to the advertising cake.

The Regulator will review the hourly limits on advertising for free-to-air stations to determine whether they are set at an appropriate level every two years.

The Regulator will further review 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. It will consider whether a lower hourly limit should be imposed upon subscription services.

The development of competition and 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.

3.4 Licensing Framework Schedule

There is a need to grow investment in the broadcasting industry and to increase the role played by the private sector in broadcasting in the context of its contribution to diversity, access and economic and social empowerment.

To achieve these objectives:

3.5 South African Content

Local content as a concept in broadcasting, generally refers to the imposition of licence conditions on broadcasters to oblige them to carry broadcasting programme material which originates from and/or reflects all aspects of public life in their respective countries.

Cultural products such as films, television and radio programmes as well as music are commonly affected by local content provisions and conditions.

Local content provisions arise out of a need to protect national cultural heritages, attitudes, norms, ways of behaviour and values from undue influence that cultural products from other countries may have on a nation's public life.

Local content seeks to protect all of those socio-cultural, political and economic traits that could be characterised as unique to a sovereign nation and therefore make it distinct from another.

Accordingly, a sovereign nation/country is in a position to define and maintain its identity - unique from the rest - by providing for local content conditions in the issuing of broadcasting licences and the regulation of its cultural industry as a whole.

Local content seeks to balance out the scales in an environment increasingly opening-up to the inflow and outflow of cultural products, with the purpose of stemming a dependency syndrome in the consumption of films, television programmes and music.

Accordingly, if provisions are not made to protect locally-produced cultural content, a sovereign nation runs the risk of evolving into a consumer of cultural products produced elsewhere.

As a result, such a nation cannot be said to be sovereign in the cultural sense. The ideal environment should be one in which nations and countries enrich themselves by exchanging cultural products on an equal footing with other peoples in the world.

Many countries around the world have come to embrace local content on issues relating to broadcasting as a result of the deficiencies that characterise the broadcasting market in each country, as well as the traffic of cultural products on the international market.

Countries with larger broadcasting markets, stand a better chance of flooding the international market with their cultural products, and those with smaller markets - out of a desire to evade production costs - end up on the customer counter, purchasing cheaper cultural products from other countries.

The danger that local content seeks to prevent, is that poorer countries run the risk of being relegated to consumer status in the cultural / entertainment market.

The flip-side of this argument is that with an increasing trend of broadcasters acquiring programmes off the shelf of international markets, the foreign programme makers will have at their disposal the best resources to draw on in making programmes which go on to sell internationally.

A solid financial base of international studios is thus built, allowing foreign programmers to produce at higher levels.

The quality of such productions, ultimately comes to define international production standards which many producers in the least developed countries cannot easily match.

As a result of the above exposition, local content programming and production has become part of the broadcasters' responsibility towards meeting Public Interest programming. As part of their licensing conditions, broadcasters are required to commit some air-time to local content programmes or contribute a percentage of their revenue towards the production of local content.

However, local content is defined differently from one country to another - depending on the dynamics that exist in the cultural industry of a particular country.

In many European countries, for example, local content has evolved beyond the confines of political boundaries, to include cultural products from other European countries.

3.5.1 Local Content Challenges

Local content poses a number of challenges to a broadcasting system, and these relate to:

One of the main reasons cited by broadcasters for their preference of purchasing programmes from the international market is that the production of local programmes is costly.

Programmes purchased from international shelves are relatively cheaper because many have recouped the production costs in their respective countries, and are already generating surplus from sales made to other broadcasters elsewhere.

This rationale makes it imperative that if South Africa views the production of local content as cardinal in the development of the broadcasting and cultural industry - policy should support the funding of local content production.

Secondly, the emergence and evolution of a multi-channel broadcasting environment in South Africa will have a bearing on the local production sector.

A properly regulated multi-channel environment, promoting South African content will increase the demand for local content and offer more economic opportunities to the producers.

National Policy must help prepare the country for this multi-channel environment so that all sectors of the broadcasting industry should bear their fair share of responsibility for promoting South African culture and the national identity.

3.5.2 Local Content Production, Multi-Media and Convergence

Technological innovations and convergence of broadcasting, telecommunications and IT raises some policy issues that need resolution.

The digitisation of the means of production means that voice, data and images may be combined, accessed, transformed and distributed over many platforms. At this level technology offers a possibility to distribute South African products through a combination of many platforms.

On the other hand this digitisation raises more vexing problems about the production and dissemination of South African content in this converging world.

In so much as technology offers opportunities, it presents challenges in the form of foreign cultural products increasing their share of dominance of the South African market. CD-ROM's are an example of multimedia applications which deserve attention.

Content driven new media, created from an integration of any two traditional media, will mean an added advantage to those with content databases and libraries. The present lack of capacity of the country to produce adequate levels of local content will translate into further disadvantage in the era of convergence and new media.

Regulation covering local content will be severely tested by the emergence of new distribution platforms. New distribution techniques make content quota requirements difficult to monitor and implement.

The major barriers to local production are cost, skills and the limited availability of infrastructure, including trained personnel, and other necessary facilities like production studios and training centres.

The fact that production facilities are not easily accessible by small independent producers is a structural issue. One way of addressing this problem is to encourage co-productions with international partners.

Co-productions in South Africa appear to be an under-utilised means of stimulating the making of local programmes.

3.5.3 Policy Framework

The technological evolution is ushering in a diversity of channel as well as media platforms to deliver a variety of services. However, changes in technology also bring along challenges, both cultural and economic for the broadcasting system.

At a cultural level, the reflection of the cultural realities of South Africa is decreasing at a proportional rate to the increase of foreign programs. The empowerment of previously disadvantaged individuals may not necessarily lead to an increase in local content. Policy on content should be addressed, and developed positions enacted in law.

Policy should ensure that choice of programming should favour South African programmes. Policy should encourage the presentation of entertainment, educational and informational programming from the South African perspective.

At an economic level, the production capacity is relative to chances of employment of South African creative artists. The development of the arts sector is therefore relative to policy considerations that determine the extent to which the South African broadcast content is prioritised.

The music industry has relatively high local production capacity, and South African music is very popular, but the operators of commercial radio stations continue to maintain that their mass audiences prefer high levels of foreign, or international, music. They are also critical of South African music production quality, maintaining that it is not of a sufficiently high standard to compete with international music.

It will be a policy position that the South African broadcasting system should display a predominantly South African content.

3.5.4 Inquiry into Local Content:

Chapter Four : Community Broadcasting

The IBA Act of 1993 allows 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 85 community radio licenses since 1994. Today 67 stations are on air. These stations are largely centred 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 number of community radio stations.

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

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

The development of the community sector throughout the country will require resources.

The community sector offers considerable prospects for community empowerment and nation building. Clear policy guidelines for community services are imperative to meet all of the community needs

These, and many other questions point to the necessity for a national strategy for the roll out of the community sector. These national goals will be binding on the Minister who will create priorities for meeting those goals and on the IBA for regulating accordingly.

4.1 Community Radio's Performance

Licenses which have been granted thus far were categorised as twelve month temporary, and short term. The former were renewed after the first 12 month term. The latter were for a maximum of 30 days and catered particularly for special events. The IBA has planned to start the process for four-year community licenses during mid-1998.

The community radio sector in South Africa has on the whole been commendably resilient. Some small number of the stations has buckled under the financial strain of maintaining the service with limited resources. Most of those who have gone on air have weathered the storm and kept afloat.

Income is derived from a variety of sources, including: advertising, sponsorships, grants, donations and membership fees. A number of stations, particularly in the metropolitan areas and environs, have quite effectively tapped the advertising market. Unfortunately the pursuit of advertising revenue can place strains on the delivery of a truly community service. Many, however, who do not have access to funds are living from hand to mouth.

Some stations are sharing frequencies in areas where, initially, demand exceeded supply. This is not an ideal arrangement. If services are not compatible, which is usually the case, getting audience loyalty is very difficult. The radio audience generally prefers one service on a single frequency. All indications are that those stations sharing frequencies would sooner compete for a sole license than perpetuating a frustrating situation.

Religious stations are a dominant component of the community sector, reflecting the importance of religion to South Africans across the full spectrum of society. Given the need to expand community broadcasting and the satisfaction of a broad variety of needs and aspirations it is necessary to thoroughly investigate the balance of licensees within the sector and the possibility of adopting a secular approach to the challenge of ensuring equity in the treatment of this very important new tier of broadcasting.

The recognition and development of all languages and cultures is fundamental to society and a prerequisite in a democratic dispensation. This too is a fairly dominant niche in the existing community broadcasting arrangement and requires particular consideration in the new divide.

4.2 The Geographic Community

The current IBA Act includes two types of community licenses. These licenses are defined as a community of interest and one, which is geographically founded. A number of services operate in either of the two sub-categories.

This definition of a community license "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.

Community broadcasting must be inclusive. Whatever common interest need is , therefore, 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 with the participation of, all of the people in the community. The interests identified within the community must be catered for in one license for a given geographic area of local concentration. The recognition and protection of these interests must be monitored in a promise of performance audit by the regulator.

All community broadcasting licenses should be geographically founded in that they should serve the specific community within a determined geographic area. This area should be determined by the IBA and should be consistent with its frequency allocation and license area plans.

The structure and mandate of the religious services will be redefined to operate within the terms and conditions of the geographically founded community category.

4.3 Future Priorities in Community Radio

The community broadcasting sector has an important role to play in 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. It must truly represent all of the people in the community in ownership and control and decision making.

The prime objective and vision of community broadcasting and its related activities is to promote development of a sense of community whilst addressing the particular needs of communities.

There are millions of people in South Africa who have not had an equal opportunity to improve their quality of life. People who desperately need basic information and education and the means to interact and enrich their communities but who do not have the resources or access to infrastructures and facilities.

A vibrant community broadcasting industry can make an immeasurable contribution towards achieving those goals and the improvement of the living standards of all South Africans.

Particular attention must be given to needy communities in especially rural areas, for the further expansion of the community broadcasting sector.

4.4 National Community Radio Strategy

The national strategy for the community sector will therefore especially account for the extension of broadcasting to the needy areas. Elements of this strategy will include;

4.5 Community Development Trust

Community broadcasting in particular, binds communities, keeps people informed, caters for diversity, is not controlled by the State, enhances democracy and serves to contribute to national goals.

Government will act as a catalyst to help community broadcasting to fulfil its mission to inspire the growth and development potential of the sector to the benefit of South Africa as a whole.

In the final analysis, the responsibility for funding rests with the community broadcasting sector. However, government will act as a catalyst and inject at least some modest capital by way of an independently administered Community Development Trust to assist particularly the unserved, needy communities. The trust will provide funds on merit for the establishment and maintenance of community broadcasting stations in unserved and needy areas where communities do not have access to resources and are in need of development. Trustees will be appointed by Government and will be people of high rank.

The Government will help the community sector to interact more effectively with other development agencies and facilitate the beneficial work they are doing in the different communities.

Likewise, Government will facilitate a closer relationship with other government departments, such as agriculture, health and water to see how community broadcasting and the people in question can promote and benefit from the developmental programmes of those Ministries.

4.6 Community Broadcasting Service Mandate

The community broadcasting sector must provide a distinct broadcasting service dealing specifically with community issues which are not normally dealt with by other broadcasting services covering the area in question. It will be informational, educational, educative and entertaining.

It will focus on the provision of programmes that highlight grass-roots community issues, including developmental issues, health care, basic information and general education, environmental affairs, local interest matters and the reflection of local culture.

4.7 Regulatory Issues

4.8 Community Television

Whilst community radio has expanded considerably over the past three years, community television has not yet been introduced to this sector. A number of interests groups have made submissions about community television. These include various models but no in-depth study has been conducted to support the viability of the different proposals. The IBA will be asked to investigate the viability and impact of community television in a public process. Under consideration will be inter alia:

Go to part 2