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WHITE PAPER ON BROADCASTING

CHAPTER FIVE: THE CLASSIFICATION OF BROADCASTING SERVICES
The IBA Act defines broadcasting as any form of unidirectional telecommunication intended for the public or sections of the public or subscribers to any broadcasting service having appropriate facilities, whether carried by means of radio or any other means of telecommunication or any combination of the aforementioned.

A considerable debate has occurred since the advent of satellite and the DTH services. Some have argued that DTH services cannot be considered as broadcasting activities and therefore do not require a broadcasting license for their operations. One operator continues to provide a service without a license granted by the IBA.

However, there are obligations that stem from associating with broadcasting activity and these obligations must be shared, to varying degrees, by all of those involved in activities that resemble very closely activities considered to be broadcasting by the above definition. It is unfair that some individuals or companies must face the obligations attached to undertaking broadcasting activities while others offering similar services are exempted from shouldering these obligations because they fall outside the legal definitions.

There is a need to adopt a more comprehensive definition of broadcasting and broadcasting services in line with international practices and technological developments. There should be no ambiguity as to which services fall within this definition.

It is difficult to separate distribution services from broadcasting services. For example, a satellite broadcasting service would not reach people unless integrated with an appropriate distribution system. It would not be possible to have any meaningful regulation for satellite broadcasting services particularly those originating from outside the country, unless the associated distribution services are also brought under the regulatory framework. Moreover, the distribution services have the capability of broadcasting or narrowcasting whether they are satellite based (DTH) or terrestrial based (cable/MMDS/LMDS). They should be permitted to utilise these capabilities without affecting their basic role as service distributor. For example, cable and DTH operators can be permitted to use a couple of channels for their own programming. Cable news bulletins focussing on local events and happenings are becoming very popular in India. In Canada all cable operators above a certain size are required to provide and fund a community channel.

Another important reason as to why the distribution services should be brought under the purview of regulation is that they too have to carry a certain obligatory public service mandate

There is a need to re-define and widen the scope of broadcasting services so as to include distribution services as well. For this purpose South Africa will adopt the following definition for broadcasting services:

Broadcasting service will mean a service that delivers television programmes or radio programmes to a person having equipment appropriate for receiving that service, whether the delivery uses radio frequency spectrum, cable, optical fibre, satellite or a combination of those means but does not include:

• A service ( including a text service) that provides no more than data, or no more than text ( with or without associated still images);or
  
  
• A service that makes programmes available on demand on a point-to-point basis, including a dial-up service; or
  
  
• A service or a class of service that the Minister determines, by notice in the gazette not to fall within this definition.
  

5.1 Licensing

All broadcasting services, including distribution services, satellite or terrestrial, which offer programming to the South African public, will be brought under the regulatory system and be required to obtain a license before undertaking broadcasting activities.

Appropriate license conditions will be enforced on them to achieve the basic objectives of the South African broadcasting system.

In addition to requiring all broadcasting services to obtain licenses before operating, all channels offered to the South African public by the distributors of services will also be licensed as individual channels.

This will create the conditions for setting public interest obligations on all of the services at an appropriate level.

5.2 The Three Tiers of Broadcasting License

There is wide spread consensus that the categorisation of different classes of licenses in the IBA Act is inadequate. Furthermore, the way services are differentiated on the basis of ownership e.g. public, private and community obscures the differences in the nature of services and therefore prevents the setting of appropriate regulation and obligations. Similarly, the classification in terms of "free to air" and "pay " services is not adequate.

These classifications do not recognise the difference between basic broadcasting services and distribution services. A broadcasting service has to carry an entirely different set of obligations as compared to a distribution service. Moreover, it is necessary to draw a distinction between basic broadcasting services and distribution services if their integration is to be avoided to ensure diversity and fair competition. Similarly, obligations of free to air terrestrial broadcasting services need not be the same as those of a free to air satellite broadcasting.

Spectrum constraints and limitations on the number of possible channels are much more relevant to terrestrial than satellite broadcasting. Terrestrial broadcasting, therefore, has to carry a much higher social responsibility as compared to satellite broadcasting. In fact there may be no justification for permitting a pay terrestrial broadcasting service at the cost of a free to air terrestrial service which would serve the social cause better.

5.3 More Differentiation in Licensing

The classification of broadcasting licenses will be functional, convenient for regulating and licensing, related to the generic form of licensing and helpful in laying obligations and enforcing compliance with various regulations. The present classification for the ownership basis and that for free to air and pay does not adequately meet any of those requirements. In order to meet those requirements the following classes of broadcasting licenses are proposed:

• Basic broadcasting services
• Free-to- Air radio broadcasting service
• Free-to Air television broadcasting service
• Satellite free-to-air radio and television broadcasting service
• Subscription broadcasting services
• Basic distribution services
• Direct to Home delivery service (multi-channel satellite distribution)
• Local delivery services (multi-channel terrestrial distribution such as Cable, MMDS, LMDS)
  

Basic broadcasting services can be further categorised in terms of free to air or pay services depending upon the context and requirements. The delivery mechanism will determine the obligations to be imposed in term of Public Interest. Considering the role and responsibilities of public, community and private broadcasters the following classification of licenses is proposed.

5.3.1 Public Service Broadcaster

The Public Service Broadcaster has to operate its services in the interest of the broader public. Its services should be available to each and everyone without any discrimination of the recipients' geographical location or his ability to pay for the service.

The Public service broadcaster should therefore, be granted licenses in the following categories:

• Free to air terrestrial radio broadcasting service
• Free to air terrestrial television broadcasting service – this includes both the Public Service channels and the Public commercial services
• Free to air satellite radio and television broadcasting service

5.3.2 Community broadcasters

The basic objective of community broadcasting is to meet the broadcasting needs of a community or communities living in a specific geographic area at the local level. Community broadcasting services should be free to air as in case of public broadcasting services. There may be no reason for them to operate a satellite broadcasting service or enter into the business of distribution of broadcasting services. Even though local television at the community level may not be viable as of now, a license provision for this category should be made now for the future. Community broadcasting should, therefore, be granted a license in the following categories:

• Free to air terrestrial radio broadcasting service.
• Free-to-air terrestrial television service

5.3.3 Private broadcasters

Private broadcasters may be granted licenses in the following categories:

• Free to air terrestrial radio broadcasting service
• Free to air terrestrial television broadcasting service
• Satellite radio and television broadcasting service - (it should be left to the broadcaster to decide whether he should provide this service on free to air or pay basis or a combination of both)
• Direct to Home delivery service (multi-channel satellite distribution - broadcaster should be free to choose the technology mix to distribute the services subject to the condition that the receiving equipment should be inter-operable)
• Local delivery service (multi-channel terrestrial distribution – broadcaster should be free to choose the technology mix to distribute a service subject to the condition that the receiving equipment should be interoperable)
• Public service obligations should be imposed on all distribution services. These obligations should include the carriage of public service channels.

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CHAPTER SIX : SIGNAL DISTRIBUTION
The IBA Act provided for three categories of signal distributors. They are, by definition:

• A common carrier who shall be obliged, subject to its technological capacity, to provide broadcasting signal distribution to broadcasting licensees upon their request on an equitable, reasonable, non-preferential and non-discriminatory basis.
  
• A person who is to provide broadcasting signal distribution for broadcasting licensees on a selective and preferential basis.
  
• A broadcasting licensee who chooses to provide, either wholly or partly, broadcasting signal distribution for himself or herself but who does not provide the same for any other broadcasting licensee.
  

The broadcast network reaches large segments of the South African population but there are still major gaps in the provision of, particularly, a basic, free television service to the country at large. Television penetration, on the whole, is only about 60%, which means that some 40% of the people have no access to television. This is compounded by nearly half of the population not having access to receivers.

There are other technologies, such as satellite, which can be used to distribute and receive broadcast services. They are, however, costly now but will increasingly play an important role in the future.

6.1 Signal Distribution Objectives

The regulatory strategy for the signal distribution sector must achieve the following objectives:

• There must be access to signal distribution services and facilities
• Access by content providers to distribution facilities, and
• Access by end users to content (broadcasters and viewers)
• Signal distribution must be affordable
• Flexible tariffs structure for services where, for example, public interest imperatives apply
• A scheme for tariff regulation
• Signal distribution systems must be open and interoperable, harmonised with the region and able to meet international distribution standards
• Regulatory accountability by signal distributors
• License for signal distribution taking into consideration the license conditions and regulatory requirements.
• Market inefficiencies in the business of signal distribution will be minimised to the greatest practicable extent, and the South African distribution environment will be opened up to competition by the year 2000
• access to high sites will be afforded to all signal distributors upon the opening of the signal distribution market to competition.
• South African channels will be prioritised and in pursuit of this objective the Regulator will encourage and facilitate a must-carry regime for South African channels.
• Priorities for signal distribution should reflect:
  • South Africa's social goals
  • The needs of the broadcasting community
  • The needs of end users of broadcasting services
  • The need to strategically position the signal distribution sector for the Multimedia future.
  • The need to enhance the skills and talent of operators in order to develop a capacity to compete in global markets South Africa's radio frequency spectrum allocation plans should reflect South Africa's social goals
  • Vertical integration of signal distribution and broadcasting services will be minimised to encourage empowerment, investments and diversity.
  • South African control of signal distribution services will be retained.

6.2 Policy Initiatives

6.2.1 Enterprise Reform

Sentech is licensed as a common carrier in terms of the IBA Act. Sentech is a public company. The Green Paper identified the need to restructure the operations of Sentech in order to achieve the following ends:

• Restructure the signal distribution sector and make it more competitive
• To implement universal service
• To enhance the skills and technological options available to the enterprise
• To strategically position the signal distribution sector and Sentech for the Multi-media future.

Public response and consultation has indicated the need for this restructuring exercise.

Sentech will be repositioned and restructured within 2 years. A process is underway to achieve these reform policy proposals.

6.2.2 Options for restructuring Sentech

• Retention of status quo.
• Partnerships
• privatisation

6.2.3 Spectrum Management Agency

Technological innovations have put added emphasis on the need for the proper management of the spectrum. The frequency spectrum can now be used to deliver a variety of services including education, communication, commerce, health and emergency services.

The Government is of the view that spectrum management in South Africa must be administered by a body that is not also responsible for the provision of services utilising spectrum.

In other words spectrum management and allocation decisions should not be taken by the armed services, the police, telecommunications companies, broadcasters, signal distributors, airline interests or the like.

A body needs to exist that retains overall responsibility for the efficient, effective and economic use of the country's spectrum assets. These assets are immensely valuable and should be exploited in ways, which best meet the needs of the country as a whole.

No sectional interest should be preferred above another. A body independent of sectional interests is best placed to make major management and allocation decisions and to rule over demarcation disputes.

Many other countries have specialist regulatory agencies of this kind. And whether they have a separate specialist agency or, as an alternative, the function of spectrum management is merged in an agency with other, related functions, most countries acknowledge the need to separate spectrum management from spectrum use. The conflicts of interest that inevitably arise when a spectrum user is also the spectrum manager are impossible to resolve in a publicly acceptable way.

Spectrum allocation is, as well, an international affair. In order to ensure that domestic use of the radio frequency spectrum does not have international consequences that are unintended, many domestic allocation decisions follow international practice.

The International Telecommunications Union is the principal international forum within which international consensus is reached about spectrum use, and ITU Conventions have, in some countries, been given the equivalent status of international treaties.

This international work also needs to be conducted on behalf of the State by an agency that is independent of spectrum users.

6.3 Policy Framework

In order to achieve these ends the government feels that a Spectrum Management Agency should be established, by Parliament, within the portfolio of the Minister for Communications.

The Agency should be vested by Parliament with the function of overall policy development and supervision of South Africa's radio frequency spectrum in order to maximise, by ensuring the efficient allocation and use of spectrum, the overall public benefit derived from using the radio frequency spectrum.

In addition, the Agency should be responsible for the overall research and planning of the use of the spectrum to meet the needs of the various services and to allocate the frequency bands that will be used for communications, broadcasting, telecommunications etc.

The Regulator will continue to perform the important tasks of planning and supervising the frequency spectrum designated for broadcasting purposes in accordance with the national frequency allocation plan.

It is targeted that this Agency will commence operations in the year 2000 when competition will be opened up in the area of signal distribution.

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CHAPTER SEVEN : DIGITAL CONVERGENCE AND MULTI-MEDIA

7.1 Cable and other Multi-Channel Distribution Services.

The Green Paper outlined the need for the development of a framework to introduce multi-channel services, stating that such a strategy is important as a means of expanding the distribution infrastructure and as a platform growth of additional television services in the future. It recognised that successful introduction of these platforms is dependent on the ability to offer an attractive package of new services both domestic and foreign. Such services could be conventional television and radio services but might also be new interactive multimedia and other services delivered from the Internet.

The Green Paper requested comments as to the conditions that should be put upon multi-channel systems so that:

• the widest audience would be available to South African programming services,
• priority be given to local content,
• fair competition be facilitated and
• fair and equitable rates are provided to both consumers and to content providers.

The Green Paper noted that signal distributors could avoid the regulation of their services depending on the type of satellite or other platform used and requested comments as to how to ensure that similar businesses be dealt with equitably.

The Green Paper requested comments on competition in the distribution business. It wished discussion as to whether multiple technologies should be licensed to compete with each other as well as whether competition by several operators using the same technology should be permitted.

7.2 The Objectives for Multi-Channel Distribution Systems

Government's objectives that underpin the multi-channel distribution system are:

• Multi-channel delivery systems should be introduced in a manner that will serve social goals cost effectively and efficiently. In particular, these systems should play a significant role in meeting the following goals:
• Universal access by all South Africans to broadcasting and multi-media services.
• Provision of a diversity of types of programme content.
• Delivery of relevant services to all official language groups.
• Efficient rollout of regionally relevant services.
• Delivery of public and educational services.
• The introduction of multi-channel systems should bring economic advantages to South Africa by:
  • Providing employment and training for South Africans both in the roll out of the services and in their operation.
  • Creating opportunities for South African entrepreneurs to manufacture hardware for such systems.
  • Creating opportunities for South African content providers to introduce new services.
  • Providing services to marginalised groups that will allow them greater participation in the economy.
  • The introduction of multi-channel distribution should not favour one technology over another.
  • Multi-channel distribution services have the potential to allow the delivery of multiple local services as well as international services. The introduction of the multi-channel delivery systems should be in line with policy and strategy of prioritising South African content and ownership
• Multi-channel distribution services should play a role in the financing of the production of local content. They can do this in two ways:
  • By the payment of license fees.
  • By contributing to production funds.
  • Multi-channel distribution services can provide competition in the delivery of voice and data to businesses, educational institutions and homes.

7.3 Policy Framework

The Government will direct the Regulator to conduct a Public inquiry and report to the Minister of Communications by December 1999 on the introduction of a regulatory regime for the multi-channel distributions systems.

Policy thrusts that will inform the regulatory regime are:

• All persons providing multi-channel distribution services will be required to hold a license to do so and to pay an appropriate license fee for this purpose.
• There will be competition in the delivery of services between satellite and terrestrial providers.
• In the case of terrestrial providers, one provider could be licensed as a monopoly provider in each area to be licensed.
• The Regulator will recommend, and the Minister will determine, the franchise areas to be served, bearing in mind the wish to ensure that services are extended to all regions of the country. Applicants wishing to provide monopoly service to a franchise area will be invited to choose the technology or mix of technologies to be used to ensure comprehensive coverage. For example, a franchisee may choose to use wire line cable to serve a densely populated urban area and a wireless technology such as MDS to serve the less densely populated surrounding rural areas. Any technology chosen must be technically capable of the delivery of multi-media services.
• The Regulator will recommend what an appropriate first license term will be. Comprehensive coverage of the franchise area will be required over the first license term. Comprehensive coverage will mean that service is available anywhere that electricity has been provided.
  
• Service may be provided to Universal Service Agencies, community centres, libraries or other public buildings that are accessible by the mass of the population.
  
• The Government will direct the Regulator to review and make recommendations on whether there should be competition between DTH satellite services or whether a monopoly should be allowed in this area.
  
• The Regulator will examine whether there can be vertical integration between multi-channel distributors and broadcasters. If it is eventually decided that this will be permitted, the regulator will report on mechanisms to ensure that neither a multi-channel provider nor a broadcaster provides undue preference to an affiliated company.

7.4 Signal Carriage

• All broadcast services to be distributed by multi-channel providers must hold licenses issued by the Regulator
  
• Multi-channel providers will be required to carry all channels licensed to serve part or all of their franchise area. After this they may carry other signals, domestic and foreign, upon approval by the Regulator. In cases where there is not sufficient channel capacity to carry all signals, signals providing local content will have priority.
  
• Special efforts must be made by terrestrial providers to give priority to services that reflect the linguistic make-up of the area to be served. Satellite providers should reflect South Africa's linguistic profile.
  
• Non-broadcast services such as data transmission do not need to hold a license but their revenues must be included in the calculation of license fees to be paid by the provider and no discrimination in access shall be permitted.
  
• All providers must furnish the capacity to provide Internet TV services throughout their licensed area as is practical. The provision of receiving equipment by community centres will make Internet TV available to the public. For individual homes, multi-channel broadcasting service providers must thus provide services on a rental basis and the rental agreement must allow the customer to terminate the agreement on one month's notice. Customers will be free to purchase such equipment from the provider of their choice. The Regulator will examine the time frame in which such services should be made available.
  
• Regulation of rates: Given that there may be monopolies granted in terrestrial multi-channel distribution, a price cap system will be put in place to protect consumers from abusive pricing practices. The Regulator will investigate and report on appropriate ways to meet these goals and recommend a regime for the establishment of rates.
  
• All persons holding multi-channel distribution licenses will be directed to contribute a portion of their revenues to the South African Television and Radio Production Fund. The Regulator will report on the percentage to be collected and the necessary mechanisms.

7.5 The Internet

The Green Paper outlined how the Internet is evolving from a narrow band interactive facility to wide band transmission of sound, data and images. Cable modems and telephone technologies such as ISDN or ADSL will compete with wireless delivery mechanisms such as satellite and MMDS that use a telephone return path. As more fibre is rolled out even greater bandwidth will become available. Eventually broadcast services will be delivered via the Internet.

The new technologies raise difficult issues for the broadcast arena. While broadcast regulation can ensure that the public does not have to endure racist broadcasts or child pornography, it is not clear how such areas can be regulated on the Internet. Similarly the Internet allows consumers to receive content from anywhere in the world. Local content may or may not be applicable to services in South Africa. The rationale for the regulation of over the-air or subscription broadcasters will be challenged by this potentially unlicensed competition. Finally, the Internet challenges enforcement of copyright and other intellectual property rights.

Local Internet Service Providers will connect consumers to the Internet. There is potential for the State to intervene via the ISP's. However, the ability of Internet providers to control the material that flows to consumers is limited or non-existent. They can monitor their own proprietary material and can develop navigational systems that offer local material in their default menus. Nonetheless, regulation of the supply side is difficult to achieve.

Most countries are opting for subsidy of local content to ensure their presence on the Net. In South Africa it is not clear that public funds are sufficiently available to make this kind of subsidy a priority for public expenditure. We will need to find innovative ways for private enterprise to meet public policy goods in the rollout of the Internet.

It is likely that the Internet will be provided to the most affluent section of the population earlier than other sectors. One way that services can be provided to the poorer and to the rural sectors is through the use of community centres and libraries as locations where individuals and groups can get access to the Net and in particular to public services. The Government has initiated a project to rollout 100 Telecentres with Internet connection for the year 1998. Public kiosks attached to the Internet could allow individuals to register important information such as births and marriages, to acquire or renew drivers' or other licences and to even input their opinions to government processes such as this one.

Government has placed an emphasis on rolling out terrestrial distribution that has Internet TV capacity. This will be the most efficient way to make Internet capacity available to a large portion of the population.

7.5.1 Objectives of the Internet

The final position on the Internet will be informed by the following policy objectives:

• Access to the Internet should be provided to as wide a population base as possible. This does not require that it is necessarily available to all homes but certainly it could be rolled out to most communities through USA's or other community centres.
  
• The private sector will probably be in the best position to choose the appropriate technology or combination of technologies that will ensure the widest coverage. The licensing framework proposed for broadcast signal distribution would provide the incentive for franchisees to roll out the technology in the most cost-effective manner.
  
• Universities and technikons are large users of the Internet. It is hoped that they may find ways to extend services to members of the community.
  
• The most economically efficient means of providing interactive services to the largest number of people is through Internet TV and therefore, all multi-channel distribution systems should have the capacity to provide Internet TV services.
  
• The Internet should help in the democratisation process by allowing the largest number of individuals and communities to have access to a variety of information and educational material. In addition, it can set up inexpensive means for people in one community to reach out to other communities.

A strategy will be developed for the rollout of the Internet. Parts of that strategy are laid out in the multi-channel distribution section of this document

To the extent possible, Government information will be digitised and made available electronically. In addition, citizens who wish to communicate with their governments should be able to do so electronically. The Government will study the possibility of placing information kiosks or other means of accessing the Web in public sites. Government's strategy will be to find means to provide service electronically to be more efficient and effective.

7.6 Digital Broadcasting

There is no doubt that South Africa faces considerable difficulty with the task of extending broadcasting services to all South Africans.

There are many South Africans who have no access to broadcasting services at all.

Major advances have been achieved in the past four years, but much more remains to be done.

Elsewhere in the world major technological transformations are being actively considered by many developed countries. Some of these countries have even begun setting new policy frameworks in place that will deal with technological change, and a few have actually begun the technological transition.

The technological transformation in question is the change from analogue to digital technology as the means of transmission of broadcasting services.

Ever since broadcasting began, analogue technology has been the technology of transmission.

The development of digital technology, which has had considerable implications for the fields of telephony, telecommunications and computing, has been actively examined for many years by both radio and television broadcasters and their engineers.

Because digital transmission has different implications for the radio and television arms of the broadcasting sector, it is better if the ensuing discussion is broken into separate discussions about radio and television.

7.6.1 Digital Television

The transmission of television by digital means has been, until very recently, the province of multi-channel subscription services delivered to the end user by satellite or cable.

This has served to help broadcasters deliver channels of programs economically. For example, satellite transmission costs have been made affordable because several channels of digitised programming can now be delivered by the same transponder capacity that once supported a much smaller number of channels.

Consumers can receive all these channels on their analogue television receivers with the assistance of reception dish, set-top box and down-converter technology. They receive these programs in analogue form and in standard definition.

Throughout the world there has been virtually no digital terrestrial television broadcasting. The field of terrestrial broadcasting has been the province of free-to-air broadcasters broadcasting by analogue means.

Free-to-air broadcasters have been exploring for many years the concept of 'advanced television' or 'high definition' television, transmitted terrestrially.

These examinations were focussed, when they began, on making analogue technology carry greater signal capacity and deliver high definition images. After a number of years of unproductive research, attention gradually switched to an examination of digital technology. This work was more successful and now two suites of digital transmission standards have emerged, from separate collaborations in America and Europe, offering the prospect of digital terrestrial television broadcasting.

7.6.2 Options for the Future

South Africa is faced with a number of choices for a coherent policy on digital broadcasting. These choices relate to:

• Transmission standards
• Equipment standards

7.6.3 Transmission Standards

• American (ATSC)
• European (DVB)

The American standard was designed for channel spacing of 6MHz, and the European for 8MHz. The Australian channel spacing is 7MHz. South African channel spacing is 8MHz.

7.6.4 Conversion of Free-to-Air Networks from Analogue to Digital Transmission

This will require a long period of simulcasting - broadcasters will broadcast for many years, perhaps as long as ten or fifteen years - so that consumers can make full economic use of analogue-only television sets, before analogue transmissions cease and digital transmissions take over completely.

7.6.5 Digital Television

• High definition
• Standard definition

Single channel high definition programmes can be broadcast on the equivalent spectrum bandwidth taken up by a single analogue free-to-air channel, whilst several channels of standard definition programmes can be offered using the same bandwidth of spectrum.

Standard definition digital programmes can be transmitted, converted to analogue format by set-top box technology, and viewed by audiences on those receivers, but high definition digital television makes it necessary for analogue television receivers to be replaced by receivers with digital capacity.

7.6.6 Digital Receivers

Receiver manufacturers will also be following international developments closely. Although the Americans have committed to high definition television using the ATSC standards, the global scale economies of production will be very influential in determining how much digital television receivers will cost the consumer.

The cost of new receivers to the consumer will significantly influence the standards choice to be made by policy makers. Many countries will wait until a clearer, more definite picture emerges about standards and consumer costs.

7.6.7 Digital Radio

Developments in digital audio or radio broadcasting (DAB or DRB) have focussed, after many years of developmental work on the adoption of a single transmission standard - Eureka 147. Most of the countries of the world that are considering digital radio policy have either decided to adopt or are leaning towards that standard, broadcasting in the L-Band.

The United Kingdom has been a pioneer in the development of digital radio technology, through the British Broadcasting Corporation. The BBC has invested very heavily in pilot testing of the technology, but the unavailability of receivers to consumers, until very recently, has held back progress.

In late 1997 a number of receiver manufacturers unveiled digital radio receivers at a German electronics fair. Manufacturers foreshadow that vehicle receivers will be available in UK shops by late 1998, followed by fixed receivers and then portable receivers by the year 2000.

As with all new technologies, there will be an initial premium, but prices will fall as the market grows.

The BBC estimates that, in ten years from now, the prices that consumers will pay for digital radio receivers will be only marginally more expensive than a typical analogue radio receiver.

Further into the future, the BBC is looking at utilising satellite delivered digital radio.

7.6.8 Objectives for Digital Broadcasting

Developments in digital technologies and digital policy need to be closely studied by the South African broadcasting community, with a view to assessing their potential impacts and to establishing a strategy for the transition from analogue to digital transmission and reception of broadcasting services.

The Government would wish to preserve, in a digital age, a similar policy framework that observed South Africa's cultural imperatives, including obligations relating to local content production, geographic coverage of services and the provision of a comprehensive range of services by public, private and community broadcasters.

The Government has identified two phases of digitisation: preparation and transition followed by implementation.

The first phase – preparation and transition – may well be of several years' duration, but, as has happened in a number of countries that are considering the implications of digital technology in broadcasting, these preparations are essential to underpin progress in the field.

Broadcasters and independent producers will be encouraged to consider conversion of their studio, production and communication technologies from analogue to digital, and, as this conversion takes place, to develop all necessary capacity to operate as a digital broadcaster.

Archives conversion within the SABC and former SABC radio stations also needs to be given some priority – this will ensure that converted programmes will be available to programme makers and, potentially, to online services users and providers. Multi-media applications for these materials will be explored.

7.6.9 Digital Broadcasting Advisory Council

Presently there is no law in South Africa for digital broadcasting.

The Government will direct the Department of Communications to establish a Digital Broadcasting Advisory Council, chaired by an eminent member of the broadcasting community, with membership nominated by the following sectors of the broadcasting sector:

• The South African Broadcasting Corporation
  
• The private broadcasting industry
  
• The signal distribution industry
  
• The advertising industry
  
• The community broadcasting industry
  
• The broadcasting regulator
  
• The manufacturing industry
  
• The telecommunications industry
  
• The proposed Spectrum Management Agency
  
• The independent production sector
  
• The academics

7.6.9.1 Terms of Reference for the Council

The Council will establish committees to advise it about technological issues. These technological issues will include the suitability of competing transmission standards to South Africa's spectrum plans, and other relevant radio frequency engineering issues.

The Council will consider both radio and television issues but may organise its consideration of these issues separately and may report separately on them.

The Council will be required to present its first report to Government by 31 December 1999, but may report earlier if it so wishes, or if requested to do so by the Minister.

The Department of Communications will provide support for the Council.

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CHAPTER EIGHT : BROADCASTING AND HUMAN RESOURCES DEVELOPMENT

The IBA Act provides for the regulation of broadcasting to promote the provision of a diverse range of sound and television services which, when viewed collectively, cater for entertainment, education and information.

The Green Paper on Broadcasting Policy noted that the role the broadcasting system can play in supporting the education system of the country deserves careful consideration. It said the reason for this careful review is the role broadcasting can play in the provision of educational materials in view of many problems experienced by the education system. The Green Paper cited:

• The lack of properly equipped schools and learning facilities
• The lack of adequately trained staff to attend to all educational needs
  
• The level of resources needed to bring about equity and equitability in the provision of educational services.

The Green Paper pointed out that a great number of South Africans couldn't read and write and rely on broadcasting entirely for their information, education and entertainment needs. Broadcasting can indeed impart information and provide basic information for people to understand and influence the changes that are taking place around them.

8.1 Role of Broadcasting in Human Resources Development

There are two distinct areas of broadcasting in the Human Resources development strategy of the country. They are:

• The use of broadcasting to support the provision of education and information to the South African population
• The Human Resources Strategy to develop broadcasting practitioners and skills

The first relates to the use of broadcasting as a resource in support of both the formal and informal education. In this context broadcasting is a tool for the dissemination of educational materials to learners in all corners of the country in a timeous and cost effective way. Broadcasting is used as a support structure in the provision of materials for human resources development aiding the educators, teachers, trainers and learners wherever they may gather for educational purposes.

Appropriately used educational broadcasting can help South Africa achieve:

• Outcome based education goals
  
• Drive for life long education
  
• A link between educational experiences and life experiences
  
• Communication between the education sector, the Government and society in general
  
• Facilities for distance learning

Within this context of broadcasting as a tool to support the provision of educational materials, the Task Team on Educational Broadcasting submitted a Report to Government, The Independent Broadcasting Authority and the SABC in 1995 highlighting broad areas of needs that had to be addressed. These fell within two categories:

• The need for the broadcasting system as a whole to offer programming which is informative and increases the public understanding of political, societal and scientific developments.
  
• The need for the broadcasting system to offer a structured service supporting curriculum-based education, distance learning, adult basic education and training, early childhood development, teacher development and professional skills development

The Task Team recommended that the Broadcasting System as a whole must offer both the educative and structured educational components as part of meeting the Public Interest.

Respondents to the Green Paper Questions re-iterated the need for broadcasting to play a role in supporting the provision of education. Twenty-five Educational Stakeholders convened a conference and called for specific policy provisions for the holistic approach to the role of broadcasting in supporting education.

8.2 Objectives of Broadcasting in Human Resources Development

The government recognises the role broadcasting can play in supporting the provision of general, curriculum-based and skills transfer education. The airwaves can be used to deliver educational materials to meet diverse educational needs and most importantly to all areas of the country in a cost-effective manner.

The Government is concerned about the high risk of the perpetuation of the gap in accessing information and education between the urban areas and the rural areas and between the previously disadvantaged and those advantaged in the past.

The technological revolution presents a real danger of the emergence of a new gap between the information-rich and the information-poor and therefore the challenge to utilise the information and communication sector to catapult all South Africans into the mainstream of educational, cultural, economic and political developments. Governments define the role of broadcasting in Human Resources Development within this need.

The proliferation of broadcasting distribution mechanisms and services and the increasing access by the general population mean that broadcasting will remain the most pervasive means of communication that can also be used for addressing the developmental gap between South Africans and between South Africa and other leading countries.

Government is aware that broadcasting can play a meaningful role if it is integrated into a coherent system of educational delivery through multi-media approaches involving the Internet, print and other non-broadcast media. This Policy Document outlines Government Policy positions with regard to the Internet and Multi-media.

Government wishes to create an enabling environment in which the various media forms contribute to new services that help South Africans integrate into the global information and knowledge based economies.

Government is aware that there are different broadcasting services targeting different interests and offering different programming. Government is also of the opinion that the development of South Africa's people and their integration into the mainstream of educational, cultural, economic and social activities also constitutes a Public Interest that must find reflection in policies and the activities that define the South African broadcasting system.

The Government is also aware of the need to address the challenge of local content in the provision of educational material. Local content will help address the concrete South African realities and forge the link between the learning situations, materials and learners. These materials will provide a cultural context, which relates to the language and cultural diversity inherent in society. Most of all it will help in the development of the local industry and skills to produce and package educational materials.

8.3 Roles of the Different Players in Human Resources Development

8.3.1 The Public Broadcaster

The Public broadcasting sector must shoulder the main responsibility to provide programming that is educative as well as curriculum and skills related through its Public Broadcasting Services. These services target a range of audiences that need and require different educational resources and can therefore go a long way towards developing a culture of life-long learning. These services must contribute to the dissemination of programming covering a wide range of social and economic spheres such as:

• Human Rights culture
  
• Health,
  
• Early childhood development
  
• Agriculture
  
• Culture
  
• Justice
  
• Commerce

8.3.2 The Commercial Sector

The Government recognises the enormous contributions made by this sector in the provision of services that meet South African broadcasting needs. Government does however also see a valuable contribution, which the commercial sector can make towards the provision of educational material. The two roles are:

8.3.2.1 The Commercial Educational Services

Many companies such as the publishing houses are deriving income from the provision of educational material. As technologies converge, broadcasting will itself play an increasing role within the provision of educational material. This is the opportunity that will help grow the South African Production Industry and the Commercial Services sectors of broadcasting.

Dedicated educational services for educational niche markets will be licensed to open the broadcasting market for the exploitation of this opportunity. Coupled to this will be a quota for broadcasters to outsource their educational productions to the Independent Productions Sector.

8.3.2.2 Social Contributions

Social contributions as part of contributing to the Public Interest will enable the commercial sector to contribute to the delivery of educational materials deemed to be a priority. These contributions will in the main take the form of monetary contributions to the funds for the generation of local and educational content. The commercial broadcasters who are willing to flight or carry educational materials that are curriculum based in content can expect to be excluded from this requirement.

Government proposes devoting some of the broadcaster license fee for the use of the spectrum to the generation of educational material.

8.3.3 The Community Sector

This sector of broadcasting is ideally placed to deliver developmental and educational programmes at a grass roots level. The scope and the size of the individual operators and links with specific communities allows the community sector to most ably to respond to general community as well as educational needs.

The Government is of the view that education should be included as an integral object of the community sector. Educational Institutions and developmental organisations should be encouraged to forge partnerships with the community sector for the provision of educational and developmental programmes.

8.3.4 The Dedicated Educational Channel

Government is of the view that the enormity of the challenge to address the educational needs of South Africa necessitates a need for a dedicated Educational Channel over and above what is done by the PBS to supplement class based curriculum based education, distance education, teacher development and Early Childhood development This dedicated channel should be governed by a Charter, endorsed by Parliament.

The need to access the desirability of a dedicated TV and Radio channel for Educational Broadcasting was endorsed by the IBA Triple Inquiry Report in 1995. The IBA recommended that the proposal of the Education Task Team that the education sector be given adequate opportunity to assess the need for, desirability and viability of dedicated educational channels be accepted by the National Parliament.

The Green Paper asked if there was a need for this dedicated channel.

Many respondents supported this need to establish a dedicated Educational Channel to focus the energies of the broadcasting system to support education and human resources Development.

The National Department of Education, the Department of Communication and the SABC have already set up a Task Team to investigate the role, viability and sustainability of a dedicated TV channel to support education.

The Terms of reference of this Task Team identify such a dedicated channel as contributing to:

• Making the opportunities for education available to South Africans who need them
  
• Improving the quality of education through the provision of quality materials to the needy areas
  
• Promotion of the concept of life-long education
  
• The provision of educational materials which are integrated into the educational process and supporting educators and learners through the country.
  
• Supporting distance education

The Government is aware of the need to develop a coherent approach to the regulation of educational broadcasting. In this approach, what constitutes materials to back structured education must be defined and expanded upon and the scope and extent of such programme provision should also be formulated. It is because of the regulatory implications that Government proposes that the Independent Regulatory Authority should also join the Task Team investigating the concept of a Dedicated Channel.

The Government would like to have this feasibility study finalised in 1998. Immediately after completion the report must be handed to the Minister for Education, Minister responsible for Broadcasting and the Independent Broadcasting Authority.

Upon Government endorsement, the Authority should develop an appropriate licensing regime and authorise the development of this channel.

As indicated earlier, the Government is of the view that the license fee for operating a frequency spectrum currently imposed on broadcasters should be used for the running and the generation of the educational service.

8.3.5 Skills Development and Broadcasting

The Human Resources Strategy in Broadcasting aim to achieve the following:

• To establish a formal and practical training and development system, which is fully integrated and capable of delivering all round skills in broadcasting
  
• To develop a system in close collaboration with the communications, information and cultural sectors.
  
• To redress the imbalances of the past through targeted programmes addressing the training needs of the previously disadvantaged including women, the disabled and children
  
• To upgrade the skills levels of practitioners in the broadcasting industry.
  
• To recognise and facilitate a common human resource base for related industries.
  
• To develop a coherent system to accredit the skills of people involved in the industry.
  
• To make efficient and cost-effective use of the financial resources.

8.3.5.1 National Framework

Government's policy places great importance on Human Resources Development as an integral part of the over-all developmental needs of the country. The RDP and the Education and Training White Papers both support an integrated education and training system for South Africa. The objectives of this integrated approach to education and Training are to redress the inequalities and provide human resources for the growth of the South African industries. In the broadcasting sector, many stakeholders have spoken of the need to develop the skill levels in order to make programmes and provide services that can compete with the best of what the world has to offer. Since this sector was not open to members of the historically disadvantaged groups special initiatives must be developed to integrate and see to the needs of these sectors of the population.

The South African Qualifications Framework has been developed as part of the Strategy for the implementation of this human resources development.

The South African Qualifications Authority has been instituted to recognise and accredit the sectoral bodies setting educational and training standards.

The draft legislation expected to be passed in June this year advocates for a levy on all employers for financing training and skills development.

Another relevant legislation is the Equal Employment Bill. This Bill has as its objectives the transformation of the work place to reflect the demographics of South Africa. It seeks to redress the employment inequalities.

Broadcasting will be expected to fall in line with the National Frameworks. The Government will form partnerships with all of the important stakeholder groups to ensure that all projects are reflective of the sector's needs. In particular, the Government wishes to work with all sectors of the broadcasting industry, public, commercial and community, as well as universities and technikons to put in place a number of initiatives:

• Smart partnerships with existing educational institutions with a view to:
  
  • revising curricula
    
  • developing programs for trainers (training the trainer)
    
• A dedicated facility to provide in one place all aspects of training in broadcasting.

8.3.5.2 Sector Education and Training Authority

The Human Resource Development Strategy for the broadcasting sector must be viewed holistically in terms of qualification standards, skills development, teaching, interrelationship with complementary sectors and the funding of the training system.

Accordingly:

• Qualification standards will be set collectively for broadcasting, telecommunications and information technology (Communications) within the framework of the South African Qualification Authority Standards;
  
• Standards will be outcome-based;
  
• Communications qualifications standards must attain accreditation from the South African Qualifications Authority;
  
• Communications sector will establish a Sector Education and Training Authority, and it will:
  define discreet sectors within the one SETA by reference to categories of employer;
  determine the provisions of the SETA constitution in recognition of the individual needs of the three discreet sectors so defined by the Minister of Labour
  
• The Communications SETA will define the scope of the employer education and training needs for each of the discreet sectors
  
• The SETA will develop a sector skills plan, incorporating each of the three discreet sectors, within the framework of the national skills development strategy;
  
• The SETA will implement the Communications Sector Skills Plan by :
  
• Establishing learnership programs
  
• Approving workplace skills plans
  
• Allocating grants to employers, education and training providers and, notably, employees;
  
• Monitoring education and training in the sector.
  
• The SETA will promote learnership programs for the entire Communications sector;
  
• The human resources development system for the Communications sector will take account of the technical and non-technical needs of each of the discreet sectors.
  
• Accordingly, learnership programs for skills development will be established and promoted for each discreet sector and, where applicable, broader training facilities will also be provided;
  
• A Broadcasting School that will provide all-round training for the broadcasting industry will be established in partnership with the stakeholders in the broadcasting sector. The Broadcasting School will co-operate with existing institutions and training programmes. The Advisory Board of the School will include representatives of the Public
• Broadcasters, of private and community broadcasters, of the academic and training communities as well as Government.

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CHAPTER NINE : OWNERSHIP AND CONTROL

9.1 Ownership by Historically Disadvantaged

The primary objectives of empowerment in the current broadcasting policy process, and of the broader democratisation process is to transform broadcasting as a sector in order to:

• Direct the broadcasting activities and output to address the full range of South African needs and interests;
  Restructure the service operations of the sector so that control and ownership rests with a more representative set of interests than is currently the case
  
• Ensure that benefits from the economic opportunities and wealth creation in broadcasting accrues to a broader range of interests than it has been the case in the past.

Policy in broadcasting should encourage increasing the ownership of private broadcasting services by people from disadvantaged backgrounds. This is meant not only to re-dress historical imbalances, but also to ensure that services are extended to unserved groups by owners who understand their needs. At the same time, it recognises that there may be need to include people with existing expertise in the ownership structure of broadcasters. Spectrum planning and frequency allocation should give priority to services for the disadvantaged and in that manner help to increase both participation and ownership by the previously disadvantaged.

Empowerment of the previously should be understood against the backdrop of marginalisation that has been characterised by:

• Race
  
• Gender
  
• Disability

9.2 Policy Framework

There are three areas in which policy will encourage the empowerment of the previously disadvantaged in broadcasting. These areas relate to:

• Benefit through ownership and control of broadcasting services
  
• Corporate empowerment to promote an active involvement of the previously disadvantaged in the board, managerial and operational levels

Professional skills development to ensure that those previously disadvantaged develop to their full potential
Policy will direct the Independent Broadcasting Authority to observe the principles of empowerment when awarding licenses in order to achieve the following outcomes:

• A significant ownership of the broadcasting service by the previously disadvantaged
  Restrictive ownership requirements are reviewed and amended. In particular the requirement of guarantee of funding does not serve as a barrier to the entry of the previously disadvantaged.
  
• Prioritising the licensing of services to those sectors of the South African community that is under or unserved by the broadcasting system whether assessed by geography, age demographics, social status

9.3 Cross Media Control

9.3.1 International Experience and Broad Principles

In many countries around the world, the privilege of being given access to a radio frequency is often subject to a number of obligations and impositions to achieve social values. One such obligation is ownership and cross-media rules.

Cross-media ownership as envisaged in the IBA Act refers to the cross-investment of entities in a manner as to straddle both print and electronic media.

The regulation of cross-media control derives legitimacy from section 50 of the IBA Act. The section, inter alia, charged the regulator to, "as soon as may be reasonably practicable after the commencement of this Act, conduct an inquiry in accordance with the provisions of section 28 and shall in doing so have regard to:

• The various categories of newspapers according to frequency of population, geographical extent of circulation figures as well as any matter relevant to the existing and future control of any such newspaper; and
  
• The maximum percentage of financial and voting interests which may be held in any one or more private broadcasting licensees by a person who controls one or more newspapers, or group of newspapers,

Submissions to the inquiry were received from a wide range of entities, interest groups and representatives of civil society. The major newspaper interests argued that media economics demanded that they rationalise and synergise their media production facilities to achieve economies of scale.

These groups alleged that they experienced a shift in advertising income with the introduction of SATV and believe that they were about to re-live that experience. Given the fact that the airwaves were then being opened, some of these companies claimed that new electronic media entities would drive them out of business.

Other submissions argued that such fears were groundless and those newspapers should re-strategise and improve their quality in order to meet the challenge of proliferating electronic media. Yet others argued that the public interest, diversity, choice and nation building should enjoy precedence over self-serving interests of existing companies.

Concentration of media power refers to the phenomenon whereby a few media players, through joint co-operation deals, mergers, acquisitions and cross-acquisitions and any other arrangements, establish themselves into powerful cross-holdings with financial or other interests straddling media types.

The extent, to which concentration may create problems of pluralism or the absence thereof, is dependent on the definition of diversity in the choice of information offered to the public.

The control of a number of media by one person or entity limits the spread of views and ideas. Such concentration of control or media access in the hands of a powerful few, is a threat to diversity of information.

Governments the world over have been trying to establish different kinds of publisher links to avoid monopolies and ensure proper working of the market in the public interest. Therefor, limits are often set to cross-media ownership and especially to the relationship between the print and electronic sectors.

International approaches to cross-media control reveal five broad trends:

• A percentage-based limit, in which case the extent to which newspapers may invest in broadcasting activities, is limited. The limits arrange from 15 percent to 20 percent;
  
• Total daily circulation limits, where limits are based on the total daily circulation of newspapers;
  
• No limits so that, no legislation or cross-media control is permitted;
  
• Flexible implementation so that the authorities generally do not enforce the rule for whatever reason;
  
• A duopoly rule prohibiting ownership of more than one station in each market type.

9.3.2 The South African Situation

The flow of information in South Africa has historically been characterised by monopolies, virtual monopolies and oligopolies.

The IBA recommended principles to govern cross-media limitations in its Triple Report to parliament in September 1995. Those recommendations were approved by parliament in March 1996.

The IBA was to draw up proposed cross-media limitations and submit those to the Minister. However there are as yet no formal regulations in place so that the intended legislation will expressly empower the IBA to regulate the investment by print media owners in electronic media.

It is in the public interest that cross-media control should be limited to ensure that there is an equitable share of voice across all print and electronic media in South Africa.

Accordingly, to address the phenomenon whereby a few media players, through joint co-operation deals, mergers, acquisitions and cross acquisitions and any other arrangements, establish themselves into powerful cross holdings with financial or other interests straddling media types.

The objective is to ensure that the viewer or listener has a choice of different voices so as to protect the principle of pluralism and diversity.

This will prevent a concentration of print and electronic media in the hands of a few owners so as to promote heterogeneity and freedom of expression.

The principle of deemed control will apply. As such, a person shall be regarded as being in control of, or being in a position to exercise control over a company if he holds shares exceeding 15% or has other financial interests therein equal to at least 15% of its net assets.

Cross-media limitations are based on the various categories of newspapers according to frequency of publication, geographical extent of relationship well as any matter relevant to the existing and future control of any such newspaper.

These provisions must be regarded with other provisions of the IBA Act notably; section 49 and paragraph 3 of schedule 2 to the Act, which deal with limitations and control of private broadcasting services.

No person who is in a position to control a newspaper may be in a position to control a radio or television license in an area where the newspaper has an advantage issue readership of more than 15% of the total newspaper readership in that area, if the license area of the radio license overlaps substantially with the said circulation area of the newspaper. Substantial overlap shall be interpreted to mean an overlap by 50% or more. The effect of this is that the newspaper will still be able to acquire or retain a financial interest in a radio or television license but may not be in a position of control over such license, if its readership exceeds the prescribed figure.

There should be full and extensive disclosure of the share-holding and financial structures of private broadcasting licenses must be provided.

The government does not propose changing the limitations on control of private broadcasting services provided for in section 49 of the IBA Act.

Regional television services are not yet a reality but as already recommended the grant of regional television licenses will be considered in the next round of expanding the broadcasting system.

The IBA will be asked to investigate the limitations on cross media control of private broadcasting services as regards cross ownership between radio, television and print media.

Criminal sanctions and financial penalties for the breach of regulations to cross-media limitations will be implemented.

Special incentives will be created to promote the degree of ownership and control of radio and television services by persons from historically disadvantaged group.

9.4 Limits on Foreign Ownership

Private broadcasters are expected to fulfil significant public policy goals. To ensure that the broadcasting system meets the needs of South Africa, it is imperative that effective ownership and control of our broadcasting system remain in the hands of South African citizens. However, in order meet their obligations private broadcasters need access to adequate amounts of capital. An appropriate balance must be met between these priorities.

The Government is keen to increase investment opportunities in the South African broadcasting system so that South Africa can play its rightful role in global markets. The increase in investment opportunities will flow from the investments by both South African companies and foreign companies that partner South African in new undertakings.

The level of ownership of private radio and television stations permitted for a foreigner is currently 20%. The Government is of the view that this ceiling should be raised in order to facilitate an increase in investments.

The Government will request the IBA to undertake an investigation of this matter and to report on what the appropriate new level of foreign ownership should be. This investigation should determine any mechanisms that should be put in place to ensure an appropriate balance between the issues mentioned above. In addition, the IBA should report on whether the same requirements are appropriate to all classes of license. Finally the IBA should report on the criteria to be used to determine where effective control is held and to ensure that effective control is held by South Africans. Once the Government has received this report, it will draft a proposal on the issue of the appropriate level of foreign ownership which it will publish in the Government Gazette, requesting public comment.

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CHAPTER TEN : FINANCING PRODUCTION IN SOUTH AFRICA
The Green Paper noted the important role that the film, television production and sound recording industries have a role to play in the development and reflection of national and local culture. It further noted that in many countries around the world, governments support the production of local content by requiring the broadcast of local content by licensed broadcasters and by subsidising local film and television production as a means of allowing local broadcasters to afford to buy local programming.

In South Africa, the IBA introduced local content requirements in both television and radio. Much concern has been expressed by broadcasters that the quotas have been set at too high a level and that not enough material meeting international standards of quality is available. At the same time, the local production industry is concerned that the level is not sufficient to provide sufficient windows for South African product and that the market is saturated with foreign material. It is clear that all sectors are concerned that there are not sufficient resources devoted to production to be able to compete fairly with the best of what the world has to offer.

The Green Paper requested comment on what policies should be put in place to stimulate the South African film, television production and music industries as well as the role of the Government in promoting South African productions and the production industry. Among the means discussed was a greater use of co-productions with other countries.

10.1 The Objectives for South African Production

The production of local content reflecting South Africa's cultures, languages and character is a top priority for this broadcasting policy process. A number of things need to be in place for local content to flourish and be competitive with the best the world has to offer.

• Radio and television stations must commit sufficient resources to schedule appropriate amounts of local content at times when citizens can see or hear them. They must not only meet local content obligations but also make all efforts to ensure that South African content is of a quality that will draw listeners and viewers.
  
• Television broadcasters must provide a mix of their own productions and of programs produced by independent South African producers. In most countries, news, public affairs and sports programming are usually in-house productions while documentaries, children's programmes and drama are either produced in-house or purchased.
  
• Radio stations typically produce the vast majority of their programmes themselves. Clearly, music formatted stations are very dependent on the music industry for both foreign and domestic recordings. South African music will be prioritised in the South African broadcasting system.
  
• Local independent production industries must have sufficient resources to be able to provide content competitive with the international products available.
  
• While productions by foreign companies in South Africa, essentially using this country as an exotic backdrop, do not contribute to the reflection of South African society, they do have the potential to bring foreign cash to the country.
• In addition, such productions can also provide an opportunity for South African camera operators, line producers, sound recorders etc to work in the industry and be exposed to international best practices. Similarly, if international recording artists record in South Africa, this can help develop world class recording studios that are then available for use by domestic musicians.
  
• A non-statutory Agency will be established to support the production of quality South African broadcasting content. This Agency will seek to promote and encourage local content production in radio and television.
  
• South Africa will pursue co-production strategies with other countries. Such co-productions in which the South African creative talent, artists and producers play a meaningful role will be treated as South African productions. South Africa has recently signed a treaty with Canada whereby co-productions will be treated as local content in both countries.
• Such agreements allow new producers in either country to work with more experienced partners and to develop a track record.
  
• Multi-media production for CD-ROM or Web sites in the mid- to long-term will be crucial. Priority for the immediate term will be on production of conventional radio and television materials that can be made available to a wide range of South Africans. Of course, such productions can be re-purposed for use in multi-media. In particular, products relevant to those previously disadvantaged or for regions without service should be the first priority.

10.2 Growing South African Productions

The development of strong television production and sound recording industries able to produce top-drawer audio-visual products relevant to South Africa will be a priority. Materials that feature South African artists, musicians and other creative talent will underpin the strategy for the transformation of the South African broadcasting system to be more reflective of the cultural heritage and meeting the broadcasting needs of South Africans.

Training and skills development targeting the previously disadvantaged will be prioritised. Government will support a skills development project through funding the Broadcast School.

Operators will be required to observe the terms of the Skills Development Bill in their recruitment strategies and training schemes so as to generate a sufficient pool of skills to redress the imbalances of the past and address gender, disability and race inequities.

In line with the provisions of the Skills Development Bill, the operators will be expected to contribute to addressing the skills developments needs of the sector.

There will be recognition that the building of such industries relies on the creation of a pool of creative and technical talent that may be provided by foreign productions or by domestic productions for an international market.

10.3 The South African Broadcast Production Agency

• A Broadcast Production Agency will be established to support the development of South African content. The South African Broadcast Production Agency will have representation from all broadcasting stakeholders.
  
• The objectives of the Agency will be to:
  
  • promote the production of South African broadcasting content
    
  • promote the production of broadcasting materials that meet the broadcasting needs of the community sector
    
  • promote the distribution and exhibition of South African content in foreign markets
    
  • redress the imbalances of the past
    
  • The Government will identify and promote all necessary supply-side initiatives to support the production of South African content.

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CHAPTER ELEVEN : A NEW REGULATORY FRAMEWORK
South Africa's present regulatory framework for broadcasting involves the Parliament, the executive and the courts in a scheme of shared responsibilities. This arrangement is usual in most democratic countries. What differs from country to country is the balance in the relationships.

Parliament outlines the law to be administered. The Minister and the regulator share responsibility for executive action that needs to be taken to give effect to the law, and the judiciary provides final certainty, where necessary, about the interpretation and meaning of the law.

Most systems of broadcasting governance place stress on the achievement of identified goals or objectives, such as:

• the promotion of national identity
  
• the provision of a diverse range of services and programmes offering entertainment, education and information
  
• rules about ownership and control of broadcasting the development of various kinds of license conditions
  
• monitoring technological, operational and market developments with a view to reviewing laws and regulations

For South Africa, which is attempting to construct new broadcasting governance in the light of both its history and some relatively short experience of broadcasting regulation, it is very important to define clearly the social outcomes that it wishes to achieve.

There is no doubt that the provision of broadcasting services to the historically disadvantaged and the underprivileged is a clear priority.

Services should be as representative as possible of South Africa's cultural identity, character and cultural diversity. Measures designed to increase South African representation in broadcast programs are also a clear priority.

A strong emphasis on educational broadcasting is important.

Participation by the historically disadvantaged in the broadcasting system, including the radio and television production sector, as workers, craftspeople and owners is also important.

The achievement of these outcomes will become the shared responsibility of those entrusted with the broadcasting governance of the country.

11.1 Government's Objectives for Broadcasting Regulation.

The Government has identified the need to clarify responsibilities in the broadcasting sector, and has identified the appropriate arrangements for governance of that sector -

11.1.1 The Parliament

The Parliament, as the body in which the legislative authority of the national sphere of government is vested, is bound only by the Constitution, and, as such, is the supreme legislative authority on matters relating to broadcasting.

The Constitution requires that national legislation must establish an independent authority to regulate broadcasting in the public interest, and to ensure fairness and a diversity of views broadly representing South African society (see Section 192).

Parliament should continue to exercise its supervision of South Africa's scheme for the regulation of broadcasting. The Parliament should define major principles of policy.

The Parliament should define the principal responsibilities of stakeholders.

The Parliament, possibly through its committee system, should review the Annual Report of the broadcasting regulator, after it has been presented to the Minister.

The primary objects of the Independent Broadcasting Authority Act should be clearly expressed in that Act, but necessary provision must be made as well for the role of the Minister, not just the IBA, in achieving those objects.

A proper balance of authority and responsibility between the Minister and the IBA for the achievement of general broadcasting objectives, and the promotion of the objects of the Act, needs to be reflected in the rules of governance for the sector.

11.1.2 The Executive

The Minister, as the representative of the Executive designated to deal with supervision of the broadcasting sector, including public, private and community broadcasting, will observe the powers, duties, responsibilities and obligations imposed by the Parliament and the Constitution.

The Minister will be accountable to the Parliament upon the terms prescribed by the Parliament, and, being the Minister also responsible for the administration of public broadcasting services in South Africa, will have special responsibilities in relation to those services

• These special responsibilities will include a role in the management of, and budgetary allocation for, such services
  
• But these special responsibilities will not include any power to interfere in or direct editorial or programming decisions. These will remain the sole responsibility of the public broadcaster which will retain complete independence over those matters

The Minister will determine all matters relating to the privatisation, if any, of public broadcasting services, and may require both the public broadcaster and the regulator to furnish advice and recommendations on those matters.

The Minister will have statutory responsibilities for, and the authority to direct the regulator about, matters relating to broadcasting that are of significant economic, cultural and social importance to the people of South Africa

11.1.3 The Regulator

The Regulator, subject to the law as it is determined from time to time by the Parliament, and to the lawful directions of the Minister, must observe the terms of its statutory Charter, Ministerial Directions and the relevant provisions of the Constitution.

The Regulator will retain all necessary independence in relation to the administration of matters delegated to it by the Parliament or the Minister, and will be required to:

• Administer those matters delegated to it by the Parliament and the Minister, and
  
• report to, and take direction from, the Minister in areas identified by the Parliament to be the prerogative of the Minister
  The functions of the regulator shall be as prescribed by Parliament.

The powers of the IBA will not, as at present, be generalised in their nature (see Section 13(a) of the IBA Act). Specific powers will be particularised in amendments to the IBA Act.

11.2 Policy Framework

In pursuit of its objectives, the Government has resolved to adopt the following policy initiatives.

The Parliament will be asked to amend the Independent Broadcasting Authority Act so that:

11.2.1 The Parliament

• Responsibility for the achievement of the objects of the Act is better defined
  
• It is the responsibility of the Minister to promote public broadcasting services, and the shared responsibility of the Minister and the IBA to promote private and community broadcasting services.
  
• It is the shared responsibility of the Minister and the IBA, but principally that of the Minister, to protect the financial accountability of public broadcasting services
  
• Some objects of the present Act are brought into other regulatory schemes
  
• Ensuring fair competition should be a function for the country's competition regulator.
  
• Ensuring broadcast signal distribution facilities are made available in respect of all licensed broadcasting services.
  
• Ensure that private and community broadcasting services also cater for the needs of language, cultural, religious groups, the constituent regions of the Republic and local communities and the need for educational programmes.
  
• Public broadcasting responsibilities relating to protecting the integrity and viability of public broadcasting services and to ensuring that in the provision of public services, the needs of language, culture and religious groups, the constituent regions of the Republic and local communities and those for educational programmes will be a shared responsibility of the SABC Board and the Minister.
  
• Parliament is entitled to determine how any grants of public monies by the State to the SABC are deployed.
  
• A statutory charter for the public broadcasting arm of the SABC should be legislated for, and this charter should place appropriate stress on the obligations of the SABC to provide a comprehensive service of wide geographic coverage
  
• The Parliament will retain its powers of appointment in relation to the IBA
  
• The concept of two co-chairpersons of the IBA will be abolished in favour of a single chairperson
  
• The power of the IBA to remunerate employees at levels considered as being competitive in the open employment market, which confers a very wide discretion on the IBA, will be curtailed. The IBA will be required to offer salaries consistent with public sector standards.
  
• The IBA will be funded directly by government, and not be allowed to retain funds obtained from any other source.
  
• No statutory authority should be permitted to profit from fines it might impose.
  
• Surplus funds will not be allowed to accumulate in the IBA.
  
• The IBA's Annual Report obligations will be broadened; in particular the IBA will be required to report on operational as well as financial matters. These matters should include comprehensive statements about:
  
• Licensing
  
• Planning
  
• Supervision of standards
  
• Ownership and control issues
  
• Industry compliance with license and other obligations
  
• Local content issues
  
• Technological developments, including the Internet and multi-media

11.2.2 The Minister

• The Minister is entitled to be consulted by the South African Broadcasting Corporation about the management and financial affairs of the Corporation
  
• The Minister is entitled to recommend to Cabinet what proportion of revenues obtained from license fees levied in respect of the licensing of radio and television sets shall be allocated from the National Revenue Fund between the SABC and the State
  
• The Minister's responsibilities for matters relating to broadcasting that are of significant economic, cultural and social importance to the people of South Africa include:
  
• The determination of overall broadcasting services planning priorities, including priorities for planning services by category of service, by geographical identification, and by means of delivery of such services
  
• The allocation, on the advice of the Spectrum Management Agency, of radio frequency spectrum to the Regulator for the purposes of planning broadcasting services
  
• The universal service responsibilities and obligations of public broadcasters
  
• The Government's obligations under international treaties and conventions
  
• General policies of the Government as they relate to broadcasting, including policies relating to:
  
  • Empowerment
    
  • the Internet
    
  • online services and
    
  • multi-media
• The Minister may delegate to the IBA from time to time responsibility for
  furnishing him with advice and recommendations about these matters.

11.2.3 The Regulator

The principal roles of the regulator include –

• The administration of the statutory scheme for granting, and renewing, broadcasting licenses
  
• The management of the broadcasting services frequency bands and other parts of the radio frequency spectrum properly delegated by the Parliament and the Minister to broadcasting purposes
  
• The design and implementation of license conditions for different categories of broadcasting service, including conditions relating to:
  
  • Local content requirements
    
  • Program requirements
    
• Service provision, including:
  
  • Coverage obligations
    
  • Language service provision
    
  • Ownership and control compliance
    
  • Code of Conduct compliance
    
  • Empowerment.
    
• Monitoring the broadcasting industry so as to ensure compliance with broadcasting laws and regulations
  
• The conduct of research, including research into community standards, so as to inform its regulatory role
  
• The enforcement, where appropriate and necessary, of broadcasting laws and regulatory requirements
  
• An appropriate accountability to the Parliament, the Minister and the system of judicial review
  
• The functions of the regulator will include, but not be limited to:
  
  • To plan, subject to the approval of the Minister, the availability of segments of the radio frequency spectrum on a national and area basis, including the preparation of a frequency allocation plan and license are plans for South Africa
    
  • The grant and renewal of broadcasting licenses
    
  • Monitoring the operation of the IBA Act and technological developments and service trends in the broadcasting sector, and reporting to the Minister from time to time
    
  • Dealing with complaints about broadcasters' observance of community standards in programming and advertising
    
  • Dealing with, and prescribing, the appropriate radio frequency spectrum engineering characteristics of broadcasting services
    
  • The making of regulations necessary to give effect to broadcasting policy through duo public processes.

11.2.4 The Courts

Section 3(3) of the IBA Act states that "The Authority shall function without any political or other bias or interference, and shall be wholly independent and separate from the State, the government and its administration or any political party, or from any other functionary or body directly or indirectly representing the interest of the State, the government or any political party.

This provision is effected in four ways in the Act:

• Open and transparent nomination of IBA Councillors by the public, and appointment by the President on the advice of the National Assembly;
  
• Exemption of political office bearers from holding office in the IBA;
  
• Exemption of persons with financial interests in telecommunications, broadcasting and printing industries from holding office in the IBA; and
  
• Exemption of the IBA Councillors from participating in the proceedings of the IBA, in the event of having an interest in the matter considered by the Authority.

The IBA is accountable to the Minister for Posts, Telecommunications and Broadcasting, and has to provide an annual report about its activities, income and expenditure.

The Constitution establishes a number of state institutions supporting constitutional democracy. These include the Public Protector, the Auditor-General, the Human Rights Commission, the Electoral Commission, the Commission of Gender Equality, etc.

These institutions are independent, and subject only to the Constitution and the law, and are required to be impartial in exercising their powers and functions.

With regard to the IBA, the Constitution calls for the enactment of national legislation to establish an independent authority to regulate broadcasting activities in South Africa.

The IBA may do so only in so far as it does not derogate from the provisions of the IBA Act or nay other law, including the Constitution.

Like any other institution, the IBA's administrative actions or decisions are subject to judicial review. The Constitution provides for a review of any administrative action on the following grounds:

• Lawful
  
• Reasonable
  
• Procedurally fair/due process
  
• The furnishing of written reasons for the administrative decision.

If any member of the public or group of persons are not satisfied that the above criteria were not followed by the IBA in any of its administrative actions or decisions, such a person or group of persons are entitled to challenge the IBA in a court of law. This relates to all of the IBA's licensing and regulatory functions.

The government does not propose to seek any change to the role of the courts in reviewing the decisions of the IBA.

11.3 A Single Regulator for Broadcasting and Telecommunications

The IBA Act of 1993 and the SATRA Act of 1996 established two separate regulatory Authorities for the broadcasting and telecommunications area. These Acts vested these two Authorities with independent powers to regulate the two areas in the public interest.

The establishment of a single independent authority to regulate both telecommunications and broadcasting was first mooted during the constitutional negotiations in the Transitional Executive Council in 1992. However because broadcasting has become highly politicised area and the revision of telecommunications legislation required a lengthy period of consultation and study, it was decided to proceed as a matter of urgency with the establishment of a regulatory body for broadcasting.

During 1996 the Telecommunications Act was promulgated after a wide-ranging consultative process. The Telecommunications Act provided for the establishment of the telecommunications regulatory authority to regulate telecommunications and manage that part of the radio frequency spectrum appropriate to telecommunications services.

The convergence of telecommunications, broadcasting and information technologies has forced government to focus on an appropriate regulatory structure.

The increasing difficulty to differentiate between radio frequency spectrum used for telecommunications and that used for broadcasting and other services has pointed to the need to merge the two regulatory authorities into a new Authority responsible for regulating both the broadcasting and telecommunications areas.

The merging of the two regulatory authorities will also ensure that the high costs associated with maintaining separate regulatory structures requiring virtually the same scarce technical skills and facilities will be minimised.

The South African government has taken the decision to merge the IBA and SATRA into a single authority. Appropriate legislation enabling the merger of the two bodies will be tabled in the course of the 1998 parliamentary session and the new regulatory body will commence operations in the 1999/2000 financial year.

The new regulatory body will enjoy the same independent statutory framework as the existing authorities.

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CONCLUSION
This White Paper pronounces the Government's policy for broadcasting in the future South Africa. It provides, for the first time in this country, a clear policy framework which ensures that the diverse needs of the total South African society are accounted for in the broadcasting system.

The role of the Parliament, the Government and the broadcasting Regulator will be clearly defined in the Broadcasting Act which will emanate from this White Paper. Accordingly, the allocation of roles and the proper assignment of tasks, coupled with the definition of intermediate and long term policy ends, will be clearly delineated in the broadcasting law. In addition, a number of additional policy initiatives are announced in this Paper. Appropriate laws, regulations and processes will be put in place to give force to these determinations.

The overriding objective of this process is to create a broadcasting system within which the airwaves are utilised for the maximisation of the public good within the context of the Constitution.

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GLOSSARY OF TERMS

AM: Amplitude modulation. Used for radio broadcasts, usually in the MW and SW bands.

ADSL: Asymmetrical Digital Subscriber Line

ATSC: American Telecommunications Standard Council

BBC: British Broadcasting Corporation

BOP: Bophuthatswana Television Service

Barriers to Entry: Are legal or natural impediments protecting a firm from competition by potential new entrants.

C-band: The frequency band from 4-6 Ghz, used mainly for distribution of television signals to terrestrial relay transmitters.

DAB: Digital Audio Broadcasting

DVB: Digital Visual Broadcasting

DTH: Direct to home

Deregulation: When a highly regulated broadcasting environment is reassessed and a number of rules and regulations are reduced, making it easier for interest groups other than the state to participate, own and control a broadcasting station.

Duopoly: A special type of Oligopoly. It is a market in which there are two producers of a commodity competing with each other; e.g. SABC vs M-NET

Economics of Scale: Occurs when a single producer can supply the entire market at an average total cost of production that is lower than what can be achieved by two or more firms; e.g. Eskom, Telkom

Encryption: A mechanism for changing the broadcast signal in a systematic way so that the picture would be unintelligible without a suitable decoder. The procedure is highly mathematical and very secure. Encryption usually infers a higher degree of security than "scrambling", which is a simple rearrangement of parts of the signal according to some simple formula and it's therefore less secure.

Free-to-air: Broadcasts that can be received without the necessity for any encrypting process.

FM: Frequency modulation. Used for radio transmissions usually in the VHF bands. Produces good fidelity.

Foot Print: The area of the earth's surface in which a particular satellite signal can be received.

Grandfather Clause: A clause ensuring that the existing rights of present broadcasters are carried over and continued in a new regulatory dispensation.

IBA: Independent Broadcasting Authority

ISP: Internet Service Provider

IT: Information Technology

ITU: International Telecommunications Union based in Geneva, Switzerland. Assigns frequency spectrum to different parts of the world through the International Frequency Registration Board.

Ku-band: The frequency band form 11-14 Ghz, intended for direct-to-home satellite television broadcast.

Local Content: Television programmes which are identifiably South African, recognise the diversity of all cultural backgrounds in South African society, are developed for South African audiences and are produced under South African creative control.

LMDS: local Multi-point Distribution System

MMDS: Microwave Multi-point Distribution System

M-NET: Electronic Media Network; an encoded subscription television service in South Africa owned by a company listed on the Johannesburg Stock Exchange, founded by a consortium of six newspaper groups.

MW: Medium Wave (band): radio frequencies between 300 and 3000 khz.

Monopoly: Is an industry in which there is one supplier of a good, service or resource that has no close substitutes and in which there is a barrier of entry to new firms.

Monopolistic Competition: Is a market type in which a large number of firms compete with each other by making similar but slightly different products; e.g. Radio Stations.

Terrestrial: A term used to distinguish broadcasting from transmitters situated on the earth's surface from satellite (celestial).

PBS: Public broadcasting service-a service which seeks to cater for all audiences, all tastes, in society irrespective of geographic location, class and cultural background. It relies for finance on license fees or state subsidy which allows it to provide programmes which are of public benefit but are not necessarily commercially profitable.

RDP: Reconstruction and development programme.

Windows: A technique whereby a broadcast from another place is slotted into a transmission from the principal source of the transmission.