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BROADCASTING LEGISLATION AMENDMENT (DIGITAL TELEVISION SWITCH-OVER) BILL 2008

                                    2008


               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA



                          HOUSE OF REPRESENTATIVES







  BROADCASTING LEGISLATION AMENDMENT (DIGITAL TELEVISION SWITCH-OVER) BILL
                                    2008




                    SUPPLEMENTARY EXPLANATORY MEMORANDUM








             Amendments to be moved on behalf of the Government














   (Circulated by authority of the Minister for Broadband, Communications
       and the Digital Economy, Senator the Honourable Stephen Conroy)

  BROADCASTING LEGISLATION AMENDMENT (DIGITAL TELEVISION SWITCH-OVER) BILL
                                    2008


                                   OUTLINE

The Broadcasting Legislation Amendment (Digital Television Switch-over)
Bill 2008 amends the Broadcasting Services Act 1992 (BSA) to implement the
Government's policies to achieve a switch-over to digital television by 31
December 2013.

The proposed amendments make amendments to the Bill to omit several items
and substitute new items that would provide for:

        a) quarterly reporting by the Australian Communications and Media
           Authority (the ACMA) about the extent to which free to air
           television broadcast transmissions in SDTV digital mode achieve
           equivalent coverage and reception quality when compared to
           transmissions in analog mode in the same licence or coverage
           area; and


        b) six monthly reporting by the Minister to Parliament on progress
           in converting self-help television re-transmission services from
           analog to digital mode, and the identification and rectification
           of digital transmission blackspots.

The items to be omitted are Senate amendments to the Bill that would
require that Minister for Broadband, Communications and the Digital Economy
to determine minimum criteria, and to cause a report to be published about
whether those criteria are being met, in relation to the 'readiness' of a
local market area to convert to digital only television broadcasting
services. If the criteria are not being met, the Senate amendments would
make the Minister responsible for ensuring a plan is made to ensure that
the criteria will be met, that switchover is deferred, or that broadcasters
could agree to continue with switchover. The Senate amendments have the
potential to delay the Government's timetable for digital television switch-
over by the end of 2013, due to the prospect for the minimum criteria to
delay analog switch-off in a particular area unless the criteria have been
met.

The Senate amendments would also require the Minister to cause reports to
be conducted quarterly, and tabled in Parliament, on digital television
transmission infrastructure issues that may prevent digital television
transmissions from achieving the same level and quality of coverage as the
analog transmission in that area. The proposed amendments would align the
reporting requirements in relation to digital television transmission
infrastructure issues to existing obligations for broadcasters under the
Commercial and National Television Conversion Schemes, and give the
reporting responsibility to the ACMA which is the Government entity
required under the BSA to formulate and oversee the conversion schemes.
The amendments also ensure that the public is informed every six months on
progress with the conversion of existing analog self-help retransmission
facilities, and the identification and rectification of digital
transmission blackspots.

                         FINANCIAL IMPACT STATEMENT

This Bill is expected to have minimal impact on Commonwealth expenditure or
revenue.




                             NOTES ON AMENDMENTS

Amendments (1) and (3) would omit items 3A and 4A from Schedule 2 to the
Bill. These items would have inserted new provisions into Schedule 4 to the
Broadcasting Services Act 1992 (BSA) to enable the Minister to make
criteria, by legislative instrument, against which the 'readiness' of a
local market area to cease receiving transmissions in analog mode would be
assessed.

The omissions proposed by Amendments (1) and (3) are related to
Amendments (5) and (6), noted below, which propose that Schedule 4 to the
BSA be amended to facilitate quarterly reporting by the ACMA under the
digital television conversion schemes about television transmission and
reception quality matters.

Amendment (2) would insert a new item 3B to Schedule 2 to the Bill. The new
item would insert a new defined term in clause 2 of Schedule 4 to the BSA.
The definition of quarter relates to the quarterly reports proposed by
Amendments (5) and (6), noted below. A quarter would be defined as a 3-
month period beginning on 1 January, 1 April, 1 July or 1 October each
year.

Amendment (4) would omit item 4B from Schedule 2 to the Bill. This item
would have amended Schedule 4 to the BSA to require the Minister to cause a
report on free to air television transmission blackspots to be laid before
each House of Parliament on a quarterly basis. The omission of this item is
related to proposed Amendments (5) and (6), noted below.

Amendment (5) would insert a new item 12A into Schedule 2 to the Bill. The
new item proposes to insert a new clause 11A into Schedule 4 to the BSA.
The clause would require the commercial television conversion scheme to
provide for the ACMA to report quarterly (as would be defined in clause 2
to Schedule 4 to the BSA, in accordance with Amendment (2) above) on the
extent that the commercial television broadcasting services in each non-
remote licence area:
      . achieves the policy objective that digital television coverage and
        reception quality is equivalent to the analog television coverage
        and reception quality for those services in that licence area; and
      . if the policy objective is not being met for a particular licence
        area, the steps that commercial television licensees in that licence
        area are taking to ensure that the objective will be met.

The ACMA report must be published on the ACMA website.

The quarterly reporting obligation would cease from the quarter that begins
after the end of the simulcast period for the licence area concerned.

Amendment (6) would insert a new item 17A after item 17 in Schedule 2 to
the Bill.  The new item proposes to insert a new clause 25A into Schedule 4
to the BSA.  The new clause would require the national television
conversion scheme to provide for the ACMA to report quarterly (as would be
defined in clause 2 to Schedule 4 to the BSA, in accordance with Amendment
(2) above) on the extent that the national broadcasting services in each
non-remote coverage area:
      . achieves the policy objective that digital television coverage and
        reception quality is equivalent to the analog television coverage
        and reception quality for national broadcasting services in that
        particular coverage area; and
      . if the policy objective is not being met for a particular licence
        area, the steps that the national broadcasters are taking to ensure
        that the objective will be met in that particular coverage area.

The ACMA report must be published on the ACMA website.

The quarterly reporting obligation would cease from the quarter that begins
after the end of the simulcast period for the coverage area concerned.

Amendment (7) would insert a new item 20A after item 20 in Schedule 2 to
the Bill.  Item 20A would add a new Part 12 (Ministerial reports) at the
end of Schedule 4 to the BSA. In compliance with new clause 65, the
Minister would cause a report to be prepared about:

     a) progress in converting self-help television retransmission services
        from analog to digital mode (new paragraph 65(1)(c) refers); and


     b) the identification and rectification of blackspots in relation to
        the reception commercial and national television broadcasting
        services in digital mode (new paragraph 65(1)(d) refers).

References in new clause 65 to self-help television retransmission services
would refer to those television re-transmission services covered by
subsection 212(1) of the BSA and which are provided by a self-help provider
within the meaning of section 212A of the BSA (new subclause 65(4) refers).


New clause 65 would require the Minister to cause the preparation of the
reports as soon as practicable after each six month period beginning the
six month period after 30 June 2009 (new paragraphs 65(1)(a) and (b)). The
Minister would also be obliged to consult with the ACMA in relation to the
preparation of the reports (new subclause 65(2) refers).

Following the completion of a report, new subclause 65(3) would require the
Minister to cause copies of the report to be tabled in each House of the
Parliament within 15 sittings days of that House.