8 October

ABA invites applications for open narrowcasting licences

The Australian Broadcasting Authority has invited applications for 24 new open narrowcasting radio services to serve the Australian Capital Territory and regional areas of New South Wales.

A full list of the areas in which the licences are available is included in the attached backgrounder. They include areas in the Bega, Coooma. Nowra, Goulburn, Wollongong, Canberra and Newcastle radio markets.

The ABA has set a reserve price of $4000 for each of the licences.

Applications for the licences will close at 4.00pm on Friday 29 October 1999.

"The ABA is pleased to invite applications for these open narrowcasting radio services," said Professor David Flint, ABA Chairman. "There is a lot of interest in providing open narrowcasting services throughout Australia and, once started, the new services will increase the diversity of services available to people in regional areas."

Licences will be issued under a price-based allocation system developed by the ABA. Under the system, if there is more than one applicant for a licence an auction-style licence allocation exercise will be held at which the licence will be issued to the highest bidder. If there is only one application for a licence at the close of applications, the licence will be issued to the applicant for the reserve price. Licences will be issued to successful applicants once certain requirements are met (see backgrounder).

Auctions for licences are expected to be held at the ABA’s Sydney offices in late November.

Anyone interested in applying for any of the available licences must purchase an information package titled Price-based Allocation of Apparatus Licences for Open Narrowcasting Services from the ABA. The cost of the package is $40. Those interested in purchsinga a copy of the package should contact Gavin Oakes on (02) 9334 7824.

BACKGROUNDER

Open narrowcasting services

Open narrowcasting services are broadcasting services that are limited in some way. This can be either because they are targeted at special interest groups, or are available in limited locations (for example sporting arenas or shopping centres), or are provided during a limited period to cover a special event or because they provide programs of limited appeal. Over ninety per cent of narrowcasting services presently operating provide either tourist radio or racing radio services.

Features of the price-based allocation system

The Radiocommunications (Issue of Broadcasting (Narrowcasting) Transmitter Licences) Determination which governs the price-based allocation system under which the licences will be issued, was determined by the Australian Communications Authority (ACA) for the ABA under section 106 of the Radiocommunications Act 1992.

Under the system, if there is more than one applicant for a licence, the licence will be issued to the highest bidder at an auction-style licence allocation exercise, provided the price bid is at least equal to the published reserve price for the licence, and the other requirements of the Determination are met.

The highest bidder at a licence allocation exercise must immediately pay a deposit of 10 per cent of the price bid. Full payment for the licence (that is, price bid less the deposit) must be made by 4.00 pm on the day after the relevant licence allocation exercise.

If there is only one applicant for a licence, a licence allocation exercise will not be held. The applicant for the licence will be issued the licence for the reserve price, subject to the requirements of the Determination, including payment of the price of the licence, being met.

If a successful applicant does not meet any of the requirements of the Determination, the applicant will not be issued the licence. The ABA may then re-offer the licence.

The duration of each licence is five years.

Commencement of service

A licensee must commence to provide a service within six months of being issued the licence, or within such longer period as is notified in writing by the ABA.

Applications are invited for apparatus licences to provide
open narrowcasting services in the following locations:

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