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Tuesday 5 April 2011

review of the process of the Convergence Review 2011

The Federal government’s Convergence Review is getting underway.  The review does not involve a review of the National Broadband Network (NBN) legislation or the implementation of the NBN business plan to roll out the nation-wide high speed broadband network; with the support of the independent members the NBN legislation passing through the Federal parliament at the end of March so that political controversy is over;[1]  at least for a short time until the renewed public attention of the NBN when the termination of the construction tender hit the headlines this week.[2]


The Convergence Review also avoids the controversial topic of sporting rights – as the anti-siphoning list for sports was reviewed in 2010 to determine which AFL or NRL games get broadcast on free-to-air television and which games the pay TV platforms can bid for exclusive transmission rights.[3]  The terms of reference also narrow the scope of the review to delivery media and content issues and not to the regulatory environment for data and voice telephone services.[4]

The Federal government has directed to Australian Law Reform Commission (ALRC) to review the National Classification System to address emerging technologies.[5]  So that the Convergence Review is likely to pick up the ALRC recommendations as to the content of audience classifications for material, with the Review limited to covering the ‘take down’ notice procedures of Schedule 7 of the Broadcasting Services Act 1992 (Cth), which provides a scheme for dealing with prohibited content on the internet.  That was controversial at the time the ‘take down’ notice procedures were being developed, although the Internet Service Providers (ISPs) seem content with the  ‘light-touch’ approach to regulating prohibited content that exists in the current’ take-down’ notice system. 


Senator Stephen Conroy, the minister responsible for the Department of Broadband, Communications and the Digital Economy (DBCDE) has appointed two members of the Convergence Review Committee (Glen Boreham as chairman and Malcolm Long).  A third member is to be appointed - my guess is someone with extensive experience with telecommunications and/or cable television systems.

The members of the Committee have expertise that covers computers & IT, broadcast regulation & content creation; with Glen Boreham being the former managing director of IBM Australia and current chairman of Screen Australia; and Malcolm Long having experience in broadcast regulation at the Australian Communications and Media Authority and experience of subscription television channel management as well as content creation at the Australian Film Television and Radio School.

The Convergence Review Terms of Reference direct the Committee to review the operation of media and communications regulation in Australia so as to advise on the effectiveness of the regulatory regime in the convergent era. The Committee are to consider the operation of the Broadcasting Services Act 1992, the Radiocommunications Act 1992 and the Telecommunications Act 1997, particularly as they relate to the regulation of content and converging content delivery platforms.[6]

The process of convergence is recognised as an ongoing process that impacts on the operators of the ‘pipelines’ through which data is delivered and the suppliers of the data (the ‘content’ being delivered via the pipelines) and the consumers of the content. The Convergence Review is directed to the regulatory environment for all forms of digital content including internet content delivered to consumers via broadband and wireless and delivery to all forms of digital devices including computers, internet enable television sets, mobile phones and other hand held digital devices.

The convergence of different communication technologies results in what were separate delivery systems for Internet, telephone calls and audiovisual programming being delivered on common telecommunications networks designed to carry any form of digital data. This triple play service is evolving into the so-called quadruple play service that integrates mobile phones and WiFi devices.  The Convergence Review is asked to determining “how best to manage the provision of media and communications services in this new environment.”[7]

The Committee will address what are potentially contentious areas of regulation of audiovisual services.  The existing free-to-air and pay television services are facing new TV-like services such as IPTV, internet TV and video on demand, all of which emerging services compete with traditional free-to-air and pay TV services for viewers.  The treatment of advertising controls, programming classification and Australian content obligations that are directed to “the development of national and cultural identity” are likely to see the existing players arguing for positions that achieve a ‘level’ regulatory playing field across the different media technologies that can deliver TV or TV-like services.[8]

Both existing media players and emerging players will be focused on arguing for what they see as a conducive competitive environment for each play or industry sector.[9]

Hard on the heels of getting the NBN legislation through the parliament the Federal government have given advance notice of the release of a National Digital Economy Strategy, which is intended to enable Australia firms to leverage the National Broadband Network (NBN) infrastructure so that Australia will become a world leading digital economy by 2020. The National Digital Economy Strategy is to be released at the end of May 2011.[10]

The DBCDE Convergence Background Paper (2010) describes the opportunities that brave new world of a convergent environment that will emerge with the continuing switch to digital-only television and the future rollout of the National Broadband Network.[11]


The Convergence Review formally commenced on 2 March 2011 with the opportunity for public submissions to be delivered the Committee in 2011.

Further information is available at the DBCDE website http://www.dbcde.gov.au/digital_economy/convergence_review#submissions

 

Twitter @DBCDEgov


Review secretariat - Tel: 02 6271 1255

convergence@dbcde.gov.au



[1] The National Broadband Network Companies Bill 2010 and the Telecommunications Legislation Amendments (National Broadband Network Measures—Access Arrangements) Bill 2011 were by House of Representatives and the Senate on 28 March 2011. Media Release 28 March 2011 http://www.minister.dbcde.gov.au/media/media_releases/2011/152

[8]  The Terms of Reference in paragraph 5 b. refer to “ensuring the ongoing production and distribution of local and Australian content that reflects and contributes to the development of national and cultural identity” http://www.dbcde.gov.au/digital_economy/convergence_review/convergence_review_terms_of_reference

[9] The Terms of Reference in paragraph 5 a. refer to “the development and maintenance of a diverse, innovative, efficient and effective communications and media market that operates within an appropriately competitive environment and in the best interest of the Australian public” http://www.dbcde.gov.au/digital_economy/convergence_review/convergence_review_terms_of_reference

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