Digital Radio bills take next steps in parliament

Legislation to introduce Digital Radio into Australia is progressing through the parliament. This week the Broadcasting Legislation Amendment (Digital Radio) Bill and the Radio Licence Fees Amendment Bill moved to their second reading stage.

At the same time the Digital Radio trial group DRA announced that the initial round of Digital Radio test transmissions in Sydney will soon go off air to allow for the installation of new transmission equipment required for the 2009 launch of digital services.

Key issues in the bill will include:

• ways to regulate text and picture content, which has not been regulated in the past, because radio was only an audio service,

• licence fees charged for digital radio services,

• multiplex access arrangements,

• and the introduction of a regulatory term to describe the program associated data, which will clumsily be called ‘restricted datacast service.’

The first bill amends the Broadcasting Services Act 1992, Radiocommunications Act 1992 and Trade Practices Act 1974 to implement a framework for digital radio broadcasting and transmission and provide the Australian Communications and Media Authority and the Australian Competition and Consumer Commission with the powers necessary to support and manage the new framework.

The second bill amends the Radio Licence Fees Act 1964 to ensure that all revenue earned from analogue and digital radio broadcasting services by a broadcaster is used to calculate the broadcaster’s radio broadcasting licence fee.

In his second reading speech in support of the Bill, Bruce Billson spoke about the important of radio moving to the digital space:

The transition to digital is the arguably the most important strategic issue facing Australian radio since the introduction of FM services in the 1970s and early eighties…

Digitisation is transforming all media and communications sectors, enabling the delivery of a common range of audiovisual, entertainment and information services to an increasingly more engaged, demanding and fragmented audience. This is no more evident than in radio, where evolving digital technologies—such as MP3 players, iPods and other hand-held digital audio devices—are changing listening patterns and reshaping the way audio content is created, distributed and consumed.

In this context, it is notable that radio is the last significant broadcasting platform to remain analog only.

The Broadcasting Legislation Amendment (Digital Radio) Bill 2007 provides radio with the opportunity to build upon its existing strengths and define its position in the emerging digital landscape. By encouraging the delivery of a range of new and innovative digital services, this legislation will advance the potential consumer benefits of digital radio and enhance the high-quality radio services already enjoyed by millions of Australians every day.”

While the government favours an industry based approach to developing technical standards, the bill provides ACMA with the power to determine standards in relation to digital radio where necessary. ACMA will also be provided with the power to require industry to develop and register codes of practice relating to a range of digital radio issues and determine standards where these codes do not operate effectively. This will particularly relate to the control of text and picture content, which is not currently regulated by the radio broadcasting act, which up until now only had to deal with regulating audio content.

While digital radio services will initially be introduced in the state capital cities, listeners outside the state capitals have not been overlooked. The government remains committed to ensuring equitable access to new services in broadcasting for people living in rural and remote Australia. Commercial and national broadcasters in regional markets will be provided with the opportunity to begin digital radio services any time after 2009 if they wish, but those broadcasters are seriously studying the DRM technology, which may be cheaper than DAB Eureka for regional areas before deciding when to begin converting to digital.

A carrot and stick approach is being used to encourage commercial broadcasters to get services on air in the capital cities by the due date. The current moratorium will be contingent upon each of the incumbent commercial radio broadcasting licensees commencing at least one digital radio service in the relevant market and continuing to provide such a service for the duration of the moratorium. Failure by any licensee to meet this requirement will result in the licensee forfeiting their right to provide digital radio services and will require the regulator to issue a new digital commercial radio licence for the licence area in question.

New transmission arrangements wil lbe put in place for digital radio, with the bill establishing a new multiplex transmitter licence category, and encouraging companies to work together in an “equitable, election based process, providing current broadcasters with the opportunity to form a company to jointly hold the licence for their services for an administrative charge only.”

The main bill itself can be found at http://parlinfoweb.aph.gov.au/piweb/Repository/Legis/Bills/Linked/28030704.pdf, but the Explanatory Memorandum makes better reading, with a good analysis of many of the impacts of each part of the new bills. Click the ‘related link’ below for the Explanatory Memorandum.

The Australian Film Television & Radio School (AFTRS) is running a series of Roadshows around the country explaining digital radio. The next seminar will be held in Brisbane on May 11.