ACCC issues discussion paper on analogue pay TV service declaration

The Australian Competition and Consumer Commission today issued a discussion paper on the declaration for the analogue pay television service. The paper marks the start of a public inquiry into whether the declaration should be continued, varied or revoked.

The ACCC deemed the analogue pay TV service a declared service on 1 September 1999.

"The ACCC is obliged to review the declaration before it expires in July 2007", ACCC Chairman, Mr Graeme Samuel, said today. "However, given that the undertakings provided by Foxtel and Telstra under the declaration are due to expire in March 2007, the ACCC considers it timely to begin the public inquiry now".

In the discussion paper, the ACCC seeks submissions from interested parties on which course of action would best promote the long term interests of end-users (LTIE).

"The ACCC proposes the preliminary view that continued declaration of the analogue pay TV service is unlikely to promote the LTIE, and that therefore it should not be continued", Mr Samuel said. "Of course this is subject to the views of interested parties.

"Given the continuing digitalisation of pay TV networks around Australia, it seems that the majority of pay TV subscribers will no longer be served by analogue networks after March 2007".

Digital pay TV services are the subject of separate access undertakings provided by Foxtel and Telstra.

The discussion paper will be available on the ACCC website.

Interested parties are requested to make submissions by 20 December 2006. Details of the submission process can be found in the discussion paper.

Background

Part XIC of the Trade Practices Act 1974 sets out a telecommunications access regime. The ACCC may determine that particular carriage services and related services are declared services.

In order to declare a service, the ACCC must be satisfied that the making of the declaration will promote the Long Term Interests of End-users (LTIE) of carriage services, or of services supplied using carriage services (listed services).

The ACCC is required to review each declaration within the year preceding its expiry date. As part of the review process, the ACCC is required under the Act to hold a public inquiry into whether the declaration should be continued, varied or revoked.

The declared analogue pay TV service encompasses the terrestrial carriage of analogue signals used for the purposes of transmitting a pay TV service, as well as the use (or potential use) of conditional access services such as set-top-unit services.