Communications Minister Helen Coonan has named the date for the proclaimation of the new media laws. It will be next week, on the 4th of April.

The date naming is expected to set off a rush of mergers and acquisitions in the commercial media industry as companies move to turn their hitherto small “strategic investments” into controlling stakes, or to gain first-mover advantage in any new acquisition plays. Investors in Southern Cross Broadcasting, Austero and Fairfax will be watching their stock prices carefully over the next few days.

The proclaimation would not have been possible without the finalisation of the regional radio register of ownership and associated ‘trigger event’ legislation, which was completed this week. The market may decide that the restrictions on regional radio ownership make those properties less attractive and may avoid targeting them in the big media acquisition and merger game that will now follow the proclaimation of the new laws.

Schedule 2 of the Broadcasting Services Amendment (Media Ownership) Act 2006 will implement the Government’s policy commitment to reforming Australia’s rmedia ownership laws, after many years of false starts and blocked votes.

Communications Minister Helen Coonan says the media reforms will encourage greater competition and allow media companies to achieve economies of scale and scope, while maintaining the diversity of Australia’s media landscape:

“The current foreign ownership and control restrictions relating to free-to-air and subscription television, and cross-media ownership restrictions on commercial radio and television licences and associated newspapers have for too long limited competition in the media sector. They have restricted access to foreign capital and expertise and stifled opportunities for growth.
“The new laws create a framework that will deliver greater consumer choice and a competitive industry in a rapidly growing digital media age. Australia needs a flexible system to allow media organisations – national, commercial or community based – to adapt and prosper in the new digital environment.”

Schedule 2 to the Act amends the Broadcasting Services Act to:

• remove the foreign ownership restrictions for commercial and subscription television interests;

• remove the cross-media ownership restrictions relating to commercial radio licences, commercial television licences or associated newspapers (subject to certain safeguards);

• impose disclosure obligations on commercial radio and television licensees and newspaper publishers with cross-media interests;

• require the Australian Communications and Media Authority (ACMA) to impose licence conditions from 1 January 2008 on commercial television licensees in regional aggregated Queensland, New South Wales, Victoria and Tasmania markets to broadcast a minimum level of ‘material of local significance’;

• require ACMA to impose licence conditions from the date of commencement of Schedule 2 on regional commercial radio licensees that require licensees to maintain existing levels of local presence if the licence is subject to a ‘trigger event’ (that is, a change in ownership or if it becomes part of a cross-media group);

• require ACMA to impose licence conditions from 1 January 2008 on regional commercial radio licensees to broadcast a minimum level of ‘material of local significance’ between 6am and 6pm on business days (the default level is presently 4.5 hours but this is the subject of a review by ACMA which is due to report by 30 June 2007); and

• subject regional commercial radio licensees to further local content obligations if a ‘trigger event’ occurs.

Further obligations involve minimum broadcast service standards for local news and information, as well as planning and reporting requirements.

ACMA will report to the minister this week about the current definition of a ‘trigger event’ and whether it has the potential to cause unintended consequences for regional radio stations. She will then consider the report’s findings, and has foreshadowed some possible softening of the provisions. ACMA also has to report by June on the minimum level of local content.

Under the new cross media ownership regulations, no new transactions can proceed unless a minimum of five independent media operations or groups are maintained in metropolitan markets and four in regional markets. And no more than two of the three regulated platforms (commercial radio, commercial television and Associated Newspapers) can be controlled by the same person or organisation in any one licence area.

The existing licence and reach rules are expected to still prevent an organisation controlling more than one commercial television licence or two commercial radio licences in any licence area.

Coonan says: “Australia’s reach rules are unchanged… [and] ACMA’s enforcement powers have been increased.

“A key part of the Media Reform package is its focus on Australia’s conversion to digital broadcasting. I will be announcing the membership of Digital Australia’s Industry Advisory Group next week.”