3 Novenmber 1999

ABA allocates Pay Tv licence to TPG TV Pty Ltd

The Australian Broadcasting Authority has allocated nine subscription television broadcasting licences to TPG TV Pty Ltd (TPG).

TPG has indicated that the licences will be used to provide a range of services with news, business information, sport, cartoons, nature documentaries and movies. The services will be provided via satellite directly to home using digital transmission. The video signal will be converted to digital form, modulated and transmitted to the satellite at the up-link station.

Unlike apparatus licences or other service delivery permits, these licences do not have geographical limitations. Therefore, a service licence is valid throughout Australia as long as the programming on that service is the same in all areas of reception. Where the service differs in a location, a separate service licence is required.

Before allocating the licences the ABA examined the foreign holdings in TPG to establish that allocation of the licences would not lead to a breach of the foreign ownership restrictions on pay TV broadcasting licences. A foreign person may not have company interests of more than twenty per cent in a pay TV broadcasting licence, nor may two or more foreign persons hold more than thirty five per cent in aggregate.

The ABA also considered a report from the Australian Competition and Consumer Commission on whether allocation of the licences would be anti-competitive. The ACCC said it was not of the opinion that allocation of the licences would constitute a contravention of section 50 of the Trade Practices Act 1974.

TPG contact: Maria Rulli, Marketing Manager on (02) 9850 0917.

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