News Release

NR 104/1996

29 October 1996

New Commercial TV licences for Darwin and Mildura

Telecasters Australia Limited and Prime Television (Victoria) Pty Ltd are the successful bidders for new commercial television broadcasting licences in Darwin and Mildura respectively, following a licence allocation exercise conducted by the Australian Broadcasting Authority (ABA) today.

Telecasters Australia Limited bid $2.1 million for the Darwin licence and Prime Television (Victoria) Pty Ltd bid $3.2 million for the Mildura licence.

'The people of Darwin and Mildura can look forward to the introduction of second commercial television services in the near future,' said Mr Peter Webb, ABA Chairman.

'At present, both markets have only one commercial television service. The people of Darwin and Mildura have asked the ABA for new commercial television services and today's auctions are the successful culmination of the ABA's planning process to respond to their demands.'

The Darwin and Mildura licences are the first commercial television broadcasting licences to be offered under the ABA's price-based allocation system and the first new commercial television licences to be offered to new players since a licence for Perth was granted in 1986.

Telecasters Australia Limited and Prime Television (Victoria) Pty Ltd must each commence services within one year of being allocated a licence (or seek the ABA's permission for an extension of this period).

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Backgrounder

Applying for a licence

An applicant for a commercial television or radio broadcasting licence must be a company, formed in Australia or in an external territory, which has a share capital.

To apply for a 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 the applicant company and by a director of the applicant company.

Applicants must also pay an application fee of $10,000 for each licence. The fee will be deducted from the price bid by a successful applicant for a licence, and (subject to the terms of the determination which governs the price-based allocation system) will be refunded to unsuccessful applicants.

Applications will generally be invited for a broadcasting services bands licence only after the broadcasting frequency for a commercial service has been made available in a licence area plan (LAP) prepared by the ABA. LAPs are being prepared progressively for all of Australia, according to ABA priorities.

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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.

The highest bidder must pay a deposit of 10 per cent of the difference between the price bid and the application fee, and complete a form of acknowledgment immediately following the auction.

Full payment for the licences (price bid less the application fee and the deposit) must be made between 45 and 47 days after the auction. The ABA will allocate the licences as soon as is practicable after full payment is received.

If a successful applicant fails to meet any of the requirements, the application fee will be forfeited and the licence will not be allocated to the applicant. The ABA may then re-offer the licence for allocation.

What are the requirements of the determination.

The ABA must not allocate a licence if the ABA decides that an applicant is not a suitable applicant in the terms of s.41(2) of the Broadcasting Services Act 1992.

Under the Act, an applicant is presumed to be 'suitable' unless the ABA decides that allowing the applicant to provide a commercial broadcasting service under a licence would lead to a significant risk of an offence against the Act or associated regulations being committed, or a breach of the conditions of the licence occurring.

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