Call for submissions on the future of commercial broadcasting

The Discussion Paper, after months of preparation, is intended to begin the process of reviewing policy on commercial broadcasting and the statutory limitations.

The Authority has decided to conduct a review of:
- the statutory limitations on ownership and control of broadcasting services, as set out in sections 48, 49 and 50 of the IBA Act;
- the commercial sound broadcasting sector, particularly so called Greenfields licences; and
- the feasibility of issuing commercial sound broadcasting licences in secondary towns.

In general terms, the purpose of this Discussion Paper is to give all interested parties the opportunity to contribute their views on the matters that form the basis of this review.

More specifically, the Discussion Paper is intended to stimulate debate about the legislation's impact on:
1. The Authority's statutory mandate and its approach to the regulation of the broadcasting industry;
2. The meaning and effect of legal concepts such as ownership, control and empowerment, both in the specific context of the IBA Act and in the general context of South African company law and competition law;
3. The imperatives of, and prerequisites for, foreign and local investment (both in terms of funding and expertise) in the South African broadcasting industry;
4. Policy and political considerations concerning black economic empowerment, diversity of ownership and related issues; and
5. The possible viability of issuing secondary town licences to commercial sound broadcasters.

"These are not easy questions and ICASA does not expect easy answers. Many of the areas of under review are a complex reflection of some of the national issues being debated in our society," said Langa in his speech at the launch of the Paper. "[It] provides a comprehensive analysis of the current commercial broadcasting industry, including audience and advertising trends. The Paper's economic overview of trends in both the international and South African broadcasting industry forms an important backdrop for the regulatory questions that follow."

The IBA Act empowers ICASA to review ownership limitations and make recommendations to Parliament. ICASA believes that this review process will provide the appropriate framework for the resolution of debates on the issues raised.

There are difficult questions that need to be asked, said Langa. "How do we promote direct foreign investment, assist the industry to continue on a steady growth path and consolidate whilst at the same time promoting the policy goals of black economic empowerment and diversity of ownership?; and can we achieve these goals with regulatory mechanisms that are different or more effective than those currently enshrined in the Act?"

On behalf of ICASA Langa invited interested parties, stakeholders and the public to respond to the issues and questions raised in the Discussion Paper. Submissions were also invited should the Paper fail to raise pertinent issues and questions. Any additional, relevant research would also be welcomed, he said.

The discussion document is available for viewing on the ICASA website - http://www.icasa.org.za/contents/?Cmd=Download&ResourceID=399

Any interested person or organisation that submits written representations should indicate whether they require an opportunity to make oral presentations.

The closing date for the receipt of representations is 6 December 2002 at 16h30.
Public hearings are expected to be held in February 2003 and, as soon as reasonably possible thereafter, the Authority will publish a Position Paper including recommendations to Parliament for the amendment of legislation.