Government calls for submissions on terms of reference for convergence review

Convergence Review Announced

Late last year the Minister for Broadband, Communications and the Digital Economy released draft terms of reference (Terms of Reference) for a comprehensive review of Australia's communication and media regulation (the Convergence Review). The Convergence Review will be undertaken by an independent committee appointed by the Minister.

In this context, convergence refers to previously separate devices (such as televisions, mobile phones and computers) and platforms such as (broadcast, telecommunications and broadband) now supporting many different services and applications. An example of convergence is Foxtel On Xbox (i.e., subscription television delivered over the Internet via a traditional gaming device) but there are many examples (such as video on demand services, IPTV and content services delivered to smart phones via 3G networks). 

Why is the Convergence Review Important

While convergence is not a new concept, the Convergence Review is in response to the rapid growth of convergence in recent years in Australia. The Minister has stated that the roll-out of the National Broadband Network (NBN), the switch-over to digital television and the subsequent release of spectrum for new wireless technologies will rapidly accelerate this transformation.  The Government's stated objective is to ensure that legislation and regulatory frameworks that apply to converged media and communications are adequately designed for the convergent age so as to foster innovation and not hinder change. The Minister said the Convergence Review "will take a fresh look at Australia's existing regulatory frameworks with a view to modernising them."

Convergence will also have a significant impact on competition in existing markets.

As internet and mobile networks are increasingly used to deliver content, Australia's competition watch dog, the ACCC, and others (including the authors of the NBN Implementation Study), have warned that content could soon be the new competition battleground as we start to see "bottlenecks" and "walled gardens" emerging in a converging environment.

What will be reviewed?

The Government is currently seeking feedback and submissions on its draft Terms of Reference.

The Convergence Review will focus on those aspects of the Broadcasting Services Act 1992, theRadiocommunications Act 1992 and theTelecommunications Act 1997 that deal with the regulation of content and converging content delivery platforms.

The Convergence Review will also include a review of the structure of the broadcasting, media and communications industries, the role of the regulator (the ACMA) and the views and expectations of Australian citizens.  Certain areas of policy setting have been identified by the Government and included in the draft Terms of Reference as being possible focus areas for the Convergence Review. These include:

• policy settings that encourage Australia, local and children's content;
• spectrum allocation;
• ensuring the adequate reflection of Australian community standards; and
• maximising consumer choice.

Controversially the Government has specifically excluded the review of telephony and voice services arguing that while telecommunications services are important to the convergence trend, there are significant changes to the telecommunications sector (such as the NBN) which make a review of telecommunications services "premature".

Feedback so far

To date, various industry commentators have criticised the draft Terms of Reference on the basis that it:

• should not exclude telephony and voice services;
• fails to address key issues (such as the concentration of media ownership and competition issues);  
• "tip-toes" around significant issues such as the extended erosion of diversity in the Australia media market; and
• is too fragmented and does not go far enough.

Who is impacted?

The draft Terms of Reference will set the agenda for the Convergence Review. Accordingly, it is important for the following stakeholders to have their say:

• creators and owners of content;
• content service providers;
• broadcasters;
• content distributors;
• device / technology manufacturers;
• consumers of content; and
• industry groups representing the above.

Important Deadlines

Submissions regarding the Draft Terms of Reference must be in writing and are due on Friday 28 January 2011. The final Terms of Reference will be published in the first quarter of 2011, followed by the formal commencement of the Convergence Review. To date only a handful of submissions have been received.

More Information  

Click here for more information, or contact Brendan Coady  on 02 9225 6258 or Sonia Sharma on 02 8223 4143.