24 November 1999

Applicants bid $522,000 for new open narrowcasting licences

The Australian Broadcasting Authority has announced the highest bidders for new open narrowcasting licences offered at today’s licence allocation exercises.

The successful applicants for the licences were:

Three other advertised licences, in Tuggeranong, ACT, Yass, NSW and Bombala, NSW, received one application each. The successful applicant for each of the licences was NSW Race Narrowcasts Pty Ltd.

"The people of the Australian Capital Territory, south eastern New South Wales and Newcastle can look forward to the introduction of additional narrowcasting services in the near future," said Professor David Flint, ABA Chairman. "The people of these areas have asked the ABA for new narrowcasting services and today’s auctions are the successful culmination of the ABA’s planning in response to their demands."

The new licence holders must each commence services within six months of being allocated a licence, or such longer period of time as approved in writing by the ABA.

BACKGROUNDER

Open narrowcasting services

Open narrowcasting services are services whose reception is limited by being targeted to special interest groups, or by being intended only for limited locations, or by being provided during a limited period or to cover a special event, or because they provide programs of limited appeal, or for some other reason.

The overwhelming majority of narrowcasting services already licensed by the ABA are racing or tourist information services.

Price based allocation system

The ABA has developed a price-based system to issue certain specified transmitter licences for the purpose of providing open narrowcasting services.

The price-based system is governed by the Issue of Broadcasting (Narrowcasting) Transmitter Licences Determination No 1 of 1996 (as amended). Because of legislative requirements, the price-based allocation system has been determined by the Australian Communications Authority for the ABA.

To apply for an advertised licence, applicants have to complete an application form, a form of authority which authorises agents to act on an applicant company’s behalf at an auction, and a form of indemnity and guarantee which is to be completed and executed by applicant companies and by a director of an applicant company. Any person may apply for a licence.

Applicants must pay a non-refundable application fee of $500 for each licence. The fee has been set to cover the ABA’s costs in issuing the licences.

How does the price-based allocation system work?

If the ABA registers more than one application for an advertised licence, the registered applicants will bid for the licence at a licence allocation exercise. A licence will be issued to the highest bidder, subject to the price bid being at least equal to the reserve price for the licence (and other requirements of the Determination being met).

The highest bidder must pay a deposit of 10 per cent of the price bid immediately following the auction, and complete a form of acknowledgment which sets out the rights and obligations of the applicant in relation to the licence. Full payment for the licence (price bid less deposit) must be made by 4.00pm the day after the auction for licence. The ABA will issue the licence as soon as is practicable after full payment is received.

If a successful applicant fails to meet any of the requirements, the licence will not be issued to the applicant. The ABA may then re-offer the licence. If there is only one applicant for a licence no licence allocation exercise will be held. Instead, the applicant will be issued the licence for the reserve price, subject to the requirements of the determination.

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