30 November 1999

ABA allocates Pay TV licences to Seven Cable Television

The Australian Broadcasting Authority has allocated four subscription television pay TV broadcasting licences to Seven Cable Television Pty Ltd (SCT).

SCT has indicated that the licences will be used to provide two sports channels and two channels for the 2000 Olympic Games. The services will be provided to customers by existing broadband cable networks.

Unlike apparatus licences or other service delivery permits, pay TV licences do not have geographical limitations. Therefore, a 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 SCT 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.

SCT contact: Shane Wood, General Manager, Pay Television on (02) 9967 7901.

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