The following is the full text of the document, entitled "Reassurances sought by Mr J Hayes, of Independent Newspapers with regards to MMDS". It is signed by S O Morain of the Radio and Broadcast Division of the Department of Transport, Energy and Communications
Runai
To See please,
Aire
You met Mr Hayes, managing director, Independent Newspapers, some time ago who was seeking written reassurances from you on a number of issues with regard to MMDS. The issues which were on his mind are set out in the attached memorandum and our views on them are as follows:
Point 1: Exclusivity of the franchise.
It was always our intention that MMDS franchises be exclusive and that no further cable, MMDS or any other kind of relay services be licensed, apart from cases where letters of intent to issue cable licences were issued before the MMDS franchise was awarded. Accordingly, with this exception no objection is seen to giving a re-assurance along the lines suggested by Mr Hayes.
Point 2: Closure of illegal rebroadcasters.
The assurance sought seems to be in line with your stated position on the closure of illegal rebroadcasters. We cannot give an absolute guarantee that all rebroadcasters in a particular area will be off the air by a particular time. We can say that our best endeavours will be used to make such situation possible.
Point 3: Locally-generated programmes supported by advertising.
Our understanding is that you do not wish to give any undertakings on this matter until TV3 is well established. If you wish you can indicated that this matter will be examined when the present fluid situation with regard to the development of broadcasting in this country has settled down. [A handwritten note states: You may wish to consider if (word indecipherable) in our draft letter goes too far.]
Point 4: No more "must carry" services on MMDS apart from TV3. While no further "must carry" services are envisaged at present it is felt that it would be imprudent to give such an undertaking.
If an Irish language television service is established there [the following four words are handwritten replacements to scored out text] may be a desire for it to be "must carry" on cable and MMDS. It is suggested that we undertake to examine the possibility of allocating further channels for MMDS should this situation arise.*
[The asterix after `arise' relates to a handwritten paragraph in the margin which states: It is likely that if an Irish language channel is established it will operate only for a limited number of hours per day (at least in the medium-term). There would not therefore be a total loss of a channel capacity to MMDS operations.]
Point 5: Licence fees to be calculated on the income for basic (not discretionary) services. No investigations of charges for discretionary services.
With regard to the confirmation of the licence fee, Mr Hayes is simply seeking to have the MMDS fees aligned with cable. We see no objections to this. A minor amending Statutory Instrument will be necessary. If you agree this will be brought forward as soon as possible. Neither do we see any objection to indicating that you do not propose to investigate prices for discretionary services. If viewers are dissatisfied they can always refuse to take such services without affecting their basic service.
Point 6: Renewal of 10-year agreement period at an early stage.
Under the Wireless Telegraphy (Television Programme Retransmission) Regulations 1988, yearly licences are issued. The issue of the first licence is an indication that the licence will automatically be renewed for a period of 10 years provided the licensee pays his fees and abides by the conditions of the licence. When the 10-year period has expired the Minister can decide to agree to issue licences to the same licensee for a further 10-year period and so on.
Mr Hayes is seeking an assurance that the second 10year period will be agreed after the third year of the first 10year period. While a desire for security of tenure is understood particularly for planning, banking and funding arrangements, an undertaking such as Mr Hayes seeks does not really make much sense to us. To agree to renew a licence seven years before such a renewal arises seems unnecessary. Accordingly, an undertaking that the renewal of the 10-year period will be decided well in advance is proposed with an indication that it is unlikely that a licensee who performs in a satisfactory way will be changed.
Point 7: MMDS franchises to use their discretion on how to provide service within a franchise. [Handwritten notes states: This can be agreed.]
Point 8: Provision of MMDS service to subscribers living within a cable franchise.
Mr Hayes seeks a blanket assurance that where cable service is not provided to all within a cable franchise area that MMDS operators will be allowed to provide service to such people within a given period. We do not favour a blanket assurance on this matter. There can be genuine difficulties in providing cable service. It is recommended that an indication be given that such matters will be dealt with on a case by case basis but that in general we do not wish to see people deprived of service if there is no reasonable prospect of obtaining cable service.
Point 9: Repeal of the Wireless Telegraphy (Wired Broadcast Relay Licence) (Amendment) Regulations 1976.
These regulations exempted cable systems with less than 100 subscribers, which are installed where no cable franchise exists, from the need to be licensed. There is a potential problem here as such system could be set up within MMDS franchise and erode the viability of some MMDS operations.
Mr Hayes is suggesting the repeal of these regulations at a time to be agreed. There may be a better way to deal with the problem rather than simply repeal the regulations. It is suggested that you indicate that you are aware of the problem and that the Department will address it in the most effective way.
Point 10. Further channels for MMDS.
Although we would not be very hopeful of finding extra channels at 2.5 GHZ for MMDS we see no problem with the assurance sought by Mr Hayes.
A suggested letter to Mr Hayes is attached.
[Signature S. O Morain] Radio and Broadcasting Division 21 January 1991