19 November 1999

NEW COMMERCIAL RADIO LICENCE FOR PORT LINCOLN,
SOUTH AUSTRALIA

The ABA has allocated a second commercial radio licence to Lanson Investments Pty Ltd, licensee of 5CC, Port Lincoln.

This is the 54th commercial radio licence allocated by the ABA to a regional operator providing the only commercial service in a market.

The new service, 5CCC, will cover the same area as the existing AM service and will broadcast on FM 89.9 Mhz in Port Lincoln.

The fee for the licence was $10,000. Lanson Investments Pty Ltd now has 12 months to get the new service up and running.

To contact Lanson Investments Pty Ltd, call Andrew Chapman, Network Chief Engineer, Star Broadcasting Network Pty Ltd, 08 8682 5000.

BACKGROUNDER

Section 39 of the Broadcasting Services Act 1992 provides for the allocation of an additional commercial radio broadcasting licence to licensees in markets where there is currently only one such service.

When can a section 39 licence be allocated?

The five eligibility criteria for a section 39 licence are set out in section 39(1):

1. section 39 applies where there is only one commercial radio broadcasting service licensed in a market;
2. section 39 applies only to licensees providing a service, i.e. not to licensees who hold a licence but do not currently provide a service;
3. the licence area for the parent licence must not have an excessive overlap;
4. the entitlement to a section 39 licence only arises on written application from the licensee; and
5. suitable broadcasting services bands spectrum must be available for providing another commercial radio broadcasting service in the same licence area.

What is the allocation fee?

The ABA has determined a fee of $10,000 for the allocation of section 39 licences.

What will happen if the ABA decides there is no suitable spectrum?

If there is no suitable spectrum available at the time a section 39 application is lodged, the application is not rejected but deferred.

If suitable frequency subsequently becomes available, then the ABA can allocate the additional licence.

Some important features of licences allocated under section 39

The ABA must not allocate a licence to an applicant if the applicant is not a company formed in Australia with a share capital or if the ABA decides that the applicant is not a suitable applicant in the terms set out in section 41(2) of the Act.

The applicant for the additional licence must be the same company as the licensee of the existing service.

The licence areas of the additional and existing services will be identical.

Both services must continue to be operated together for a minimum period of two years. It is not possible to transfer one of these licences without the other during this period.

It is a condition of the licence that the licensee will commence providing a commercial radio broadcasting service within one year of being allocated the licence, or within such longer period as is notified in writing by the ABA. The ABA is not obliged to grant an extension of time for the commencement of the service.

The ABA has already granted second licences under section 39 to commercial radio broadcasters in Albany, Armidale, Atherton, Ballarat, Bathurst, Bega, Bridgetown, Bunbury, Carnarvon, Charleville, Charters Towers, Coffs Harbour, Colac, Cooma, Darwin, Devonport, Dubbo, Emerald, Esperance, Griffith, Goulburn, Grafton, Gunnedah, Gympie, Horsham, Innisfail, Inverell, Kalgoorlie, Katanning, Karratha, Kingaroy, Lithgow, Longreach, Mandurah, Maryborough, Merredin, Mildura, Mt Gambier, Mudgee, Murray Bridge, Nambour, Narrogin, Northam, Orange, Parkes, Port Hedland, Queenstown, Renmark, Roma, Swan Hill, Taree, Wangaratta and Young.

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