Draft Terms of Reference for the Convergence Review

The draft Terms of Reference below were released for public consultation from the 14 December 2010 to 28 January 2011. Please also see the final Convergence Review Terms of Reference.

Preamble

Over the last 15 years, the way that people get information, enjoy entertainment, stay in touch, acquire goods and services, work, learn, travel, and manage their time has undergone unprecedented change.

At the heart of this change have been developments in communications and media technologies—telecommunications, radio, television and the internet.

All these technologies provide services which underpin the functioning of our democratic society—enabling communications between individuals and groups, and providing content services that inform, educate and entertain citizens and consumers.

Historically separate, these technologies are increasingly performing similar tasks, and the content delivery and communications services they offer are becoming more analogous. The development of digital broadcasting, data compression and internet-based technologies, coupled with improved infrastructure capability, means that content and services that were previously constrained to one delivery channel can now be delivered over many different platforms.

This phenomenon is known as convergence.

On one hand, convergence allows a range of different content to be delivered over a common network—typically the internet. On the other, the provision of content via the internet to a wide range of end user devices brings about a fragmentation of audiences as individuals tailor their media consumption habits to suit personal preferences and circumstances.

At the same time, the globalising effect of the internet is profound and rapid, and has challenged regulatory boundaries.

New content services channelled through internet service providers and across jurisdictional borders are challenging traditional media business models and forcing governments all over the world to reconsider the assumptions behind existing legislation and regulatory frameworks.

While convergence as a concept has existed for years, the Australian Government's policies and actions—particularly in creating the National Broadband Network, pursuing the switch to digital-only television and the subsequent release of spectrum for new wireless communications technologies—have rapidly accelerated the arrival of the convergent media age in Australia.

As a result, Australia's media and communications regulations are quickly becoming outdated.

Regulatory settings are necessary to foster competition, to encourage diversity, and to protect Australian stories, community values and citizens' rights. Yet regulation also must be dynamic enough to support creativity in new digital services, and flexible enough to deal with rapidly changing technologies for the delivery of content.

The Australian Government intends to fundamentally review the policy and regulatory frameworks that apply to the converged media and communications landscape in Australia.

The Government wants to make sure that the policy framework upon which Australia's industry structures and regulation are built is adequately designed for the convergent age and does not impede continued technological change and innovation. At the same time, it must ensure the ongoing protection of Australian content and cultural values, the adequate reflection of community standards and expectations and the safeguarding of privacy and other citizens' rights.

The Convergence Review

The Convergence Review (the Review) will be undertaken by a committee of independent experts (the Committee), appointed by the Minister for Broadband, Communications and the Digital Economy, and supported by a dedicated secretariat within the Minister's Department.

The Committee is to review the operation of media and communications regulation in Australia, and assess its effectiveness in achieving appropriate policy objectives for the convergent era.

In doing so, the Committee shall have regard to legislative measures, including but not limited to those contained in the Broadcasting Services Act 1992, the Radiocommunications Act 1992 and the Telecommunications Act 1997, particularly as they relate to the regulation of content and converging content delivery platforms.

The Committee shall also have regard to the structure of the broadcasting, media and communications industries in Australia, to the role of the regulator (the Australian Communications and Media Authority) and to the views and expectations of Australian citizens.

The first step in conducting the review is to seek the views of Australian consumers, audiences, industry, non-government organisations and other levels of government on issues relevant to the review.

To that end, the Government is seeking views on the proposed Terms of Reference that will guide the work of the Committee in conducting the Review.

Submissions addressing the draft Terms of Reference should be made in writing to the Convergence Review Secretariat using our online submissions form at www.dbcde.gov.au/convergence or by email to convergence@dbcde.gov.au or by post to

Convergence Review Secretariat
Department of Broadband, Communications and the Digital Economy
GPO Box 2154
CANBERRA ACT 2601

The closing date for submissions is 5 pm EDT on Friday 28 January 2011.

Following this consultation, the Government will settle on the final Terms of Reference, which will be published in the first quarter of 2011, at which time the members of the Committee will be announced and the Review will formally commence.

The Committee will deliver its final report to Government in the first quarter of 2012.

Convergence Review—proposed Terms of Reference

In light of convergence, the Committee is to review the current policy framework for the production and delivery of media content and communications services. The Committee is to:
1. develop advice for Government on the appropriate policy framework for a converged environment;
2. advise on ways of achieving it, including implementation options and timeframes where appropriate; and
3. advise on the potential impact of reform options on industry, consumers and the community.
In doing so, the Committee shall have regard to all legislation and regulatory frameworks relevant to these Terms of Reference and, where necessary, advise the Government on issues outside the purview of the Minister's portfolio responsibilities.
In undertaking 1. above, the Committee is to inquire into and advise on the following matters:
1. whether the existing Regulatory Objects remain appropriate in a converging environment; and
2. if so, whether the regulatory approach embodied in the current policy framework remains the most effective and efficient, and
3. in light of a. and b. above, the Committee's preferred alternative regulatory or non-regulatory measures to form a new framework.
In light of its views on a preferred policy framework for a converged environment the Committee is to advise on the appropriate Regulatory Objects that will underpin any new framework.
Without limiting its scope, in conducting the review the Committee is to take into account the following policy parameters:
1. the development and maintenance of a diverse, efficient and effective communications and media market that operates within an appropriately competitive environment and in the best interest of the Australian public;
2. the appropriate regulatory and legislative settings to ensure the ongoing production and distribution of Australian media content that reflects and contributes to the development of national and cultural identity;
3. appropriate industry and policy settings to ensure industry and government revenue sufficient to produce and distribute Australian and local market content in a converged world;
4. appropriate ways to regulate content, and the services and applications used to deliver content, which are cross-border in nature;
5. appropriate regulatory settings and legislative instruments to ensure the adequate reflection of community standards and the views and expectations of Australian citizens and consumers / audiences;
6. appropriate industry and regulatory settings to maximise consumer and citizen choice in, and access to, the broadest range of content, and services used to deliver content, as are supported by convergent technologies and communications infrastructure; and
7. the appropriate processes by which to manage spectrum allocation.