Setting out new directions for broadcasters

One of the most prominent challenges facing broadcasting has been the issue of pluralism and diversity - diversity of both ownership…

One of the most prominent challenges facing broadcasting has been the issue of pluralism and diversity - diversity of both ownership and programming.

The Broadcasting Commission of Ireland regulates the sector as set out in two Broadcasting Acts: the 1988 Act, under which our predecessor, the Independent Radio and Television Commission, operated; and the 2001 Act, under which the BCI operates.

The overall goal of the 1988 Act is to ensure a viable, sustainable industry, characterised by plurality of ownership and diversity of content. The provisions of the 2001 Act are more concerned with ensuring that a range of services and information sources, which directly reflect their needs, are available to Irish audiences.

In early 2000, we promised diversity, pluralism, variety and quality of programming; additional services to bring genuine diversity of programming; recognition that existing operators should not be unduly threatened; and the recognition that frequencies should be co-ordinated.

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Today we are proud to say that the commission has delivered on these promises. Four new Dublin stations have been licensed - Lite 102.2FM, News Talk FM, Spin FM and 106.8FM. Cork City and County has been awarded a second licence with Red 104-106FM soon to air.

This week, expressions of interest were invited for the re-advertisement of local radio franchise areas, and the potential was also outlined for additional local radio services, opt-out services and modifying some of the existing areas. The commission is also looking to the future in seeking views on the possibility of introducing a digital audio broadcasting regime in the next few years.

The regulatory role for the BCI has been, and will continue to be, a flexible and developmental one. One of its key aims is that its regulatory capacity operates in a climate of dialogue, openness and trust in dealings with broadcasters.

Thus, for the first time, in undertaking the review of ownership and control policy, the BCI consulted with a broad range of interested parties. This was done through seeking and receiving written responses to a consultation document to which there were over 30 respondents: 15 IRTC contractors, eight communications sector respondents, four statutory bodies and six academics/others.

The process of consultation addressed both the philosophical and the practical issues which the commission wished to deal with while formulating its new policy on ownership and control. The process has now been completed and the new policy document was launched yesterday.

The document starts by setting out the guiding regulatory principles which the commission considers important in formulating and implementing its regulatory policy into the future. It sets out the principle of providing a diversity of services to the public and also requires the BCI to take a flexible and consistent approach to regulation which should be adequate based on current conditions.

The commission considered it was essential that we set out policy objectives which address the issues of plurality of ownership, diversity of viewpoint, outlet and source, character, expertise, experience and financial resources of contract holders and the ethos of a broadcasting service.

The document clarifies and defines statutory terms from the Broadcasting Act 1988, such as "control" and "substantial interests", and communications media in the sections of the Act which are directly relevant to ownership are given new definitions.

Specifically, the commission has decided that, to guide applicants and give a degree of certainty, it would be preferable to set minimum and upper limits about "undue" numbers of sound broadcasting services licensed under the 1988 act (Section 6 2(g)). The policy document states that a number equivalent to 15 per cent, or less of the total number of commercial sound broadcasting services licensed under the Act, would likely be an acceptable level for one investor. Fifteen to 25 per cent would require more careful consideration by the commission and would be necessary for an applicant to justify, and above 25 per cent would be unacceptable.

Further, an "undue amount of communications media in a specified area" (Section 6 2(h)) should be understood as more than a reasonable share of the range of communications media available to audiences in the franchise area. This will be decided by a set of criteria including totality of communications media in the area, substitutability of one communications medium for another, and an examination of the applicant's ability to influence opinion, etc.

The document defines the concept of local ethos and the criteria for achieving it are identified. The question of the maximum percentage holding in a company is also addressed.

Previously, the commission operated a maximum percentage holding to comply with the Act, but in light of the changing broadcasting environment, the commission will consider allowing 100 per cent ownership where all the criteria set out in its policy are met.

In such an instance, the applicant would have to make a case that all the safeguards necessary to ensure pluralism and diversity are in place and will be met.

This policy sets out the commission's view about ownership and is a road-map to guide prospective applicants for licences. It also looks forward, anticipating developments.

This policy demonstrates the commission's commitment to achieving fair and reasonable regulations that will serve the sector and the public well.

Conor Maguire is chairman of the Broadcasting Commission