'Media companies' may face broadband levy

The Government is considering forcing media companies to contribute to the cost of building fibre optic broadband infrastructure and DVB-H transmission networks that would let people view television channels on their mobiles.

The proposal was floated in a discussion paper released by the Culture and Heritage Ministry, which is consulting on a far-reaching overhaul of broadcast and telecommunications regulation that may also see tough rules imposed on Sky TV.

The ministry has asked for feedback by April, asking who should be levied if a "media-funded pool were established to ensure broad geographic service availability of networks" and how such a fund could work.

The ministry also raised the possibility of tax breaks to fund infrastructure investment.

Sky TV could be forced to "unbundle" its network of set-top boxes, so they could be accessed by other content distributors.

It hopes to begin selling broadband-connected set-top boxes this year that subscribers could use to download and view its back catalogue of programmes at any time.

Sky TV may also face "must carry" and "must pay" rules that could oblige it to show and help pay for third party programming, and may face "anti-siphoning" rules, restricting it from buying exclusive rights to broadcast major sporting events.

A Cabinet paper signed by ministers David Cunliffe and Trevor Mallard said the review of regulation would need to be handled well to "minimise a period of uncertainty for the affected business sectors" but research suggested the "maintenance of the status quo" would not protect diversity in the broadcasting market.

CHANGE OPTIONS

Single regulator for broadcasting and telecommunications.

"Communications commissioner" to replace telecommunications commissioner.

New Telecommunications and Media Act.

"Open access" to set-top boxes that must adhere to mandated technical standards.

Media companies forced to contribute to broadband infrastructure fund.

"Must carry, must pay" and anti-siphoning rules imposed on Sky TV.

THE TIME LINE

Ministry to consult till April and report to ministers by July 1.

Further discussion and public consultations on recommendations if shakeup approved.

Process will not be completed before the election this year.

- © Fairfax NZ News