Colm McCarthy on Broadcasting

Elmo

What a waste of money!

Anyway.

Recommends: -

Recommendation 41: The Review Group recommends that the portion of the license fee allocated to the Broadcasting Fund, currently just 7%, should be increased substantially, in order to better equalise conditions of competition between RTÉ and the private broadcasters.

I don't see how this has anything to do with saving money, in actual fact it will cost money.

Recommendation 42: In the interests of transparency, the Review Group recommends that RTÉ’s provision of Irish language content to TG4 under the provisions of the Broadcasting Acts is transacted on a commercial basis, and funded by TG4 from within its revenues. The respective Exchequer support of each broadcaster should be adjusted accordingly to take account of the transaction.

Again what has this to do with saving money TG4 will no pay a minimum content charge to make it more transparent. I assume it means that TG4 will pay for Nuacht TG4 by way of 500 per episode, which is nothing like the actual cost, how transparent? Just more paper work.

Recommendation 43: The Review Group recommends that RTÉNL be disposed of as a regulated entity with appropriate safeguards in place to ensure its availability to the state and fitness for purpose in the event of a national emergency

By whom and to whom. Is it a case of RTÉ selling NL or the state? or is it a case of just breaking the ties between NL and RTÉ and letting it remain in state hands?

Recommendation 44: In line with the position taken by the Review Group generally on allocation of radio frequency spectrum (see Section 19 on Intangible Assets), the Group recommends that rights to use spectrum for broadcasting purposes are allocated using a market-based approach that promotes the most efficient management and use of the spectrum resource.

Sounds like alot of waffle I assume they mean roll out Pay DTT ASAP. Only we don't think that is possible!

19.3 Spectrum used for Broadcasting

Television: Although the Broadcasting Authority of Ireland (BAI, formerly the Broadcasting Commission of Ireland) issues broadcasting licences to commercial operators, historically no charge has been levied on radio and TV broadcasters for the use of spectrum. In line with its policy of charging as the best way to promote efficient use of spectrum, ComReg is taking the opportunity presented by the switch to Digital Terrestrial Television (DTT) to begin charging for spectrum used for digital broadcasting. The BAI will hold one spectrum licence covering all commercial DTT broadcasters (there are, however, none at the present time because of the failure of the tender process to undertake the commercial element of the new DTT service). RTÉ holds its own licence for spectrum for DTT directly from ComReg: this runs for 12 years from 2007 at an annual charge of €144,000, discounted by 50% for the first three years. Analogue television broadcasting retains free use of spectrum until analogue transmission is turned off at end-2012.

Radio: Comreg has issued a licence to RTÉ for digital radio broadcasting. The licence is for 10 years with an annual fee of €20,000 discounted by 50% for the first three years. Under ComReg’s licensing regime, BAI would hold a similar licence on behalf of commercial operators but these operators have expressed no interest in moving to digital broadcasting. It appears that analogue broadcasting will continue in the FM band for the foreseeable future. There is no digital dividend to be gained in the FM band because radio broadcasting uses relatively little spectrum and there are no significant alternative technologies competing for its use. ComReg has no plans to charge for the spectrum used for analogue radio broadcasting

Sorry Links:

http://www.rte.ie/news/2011/0420/mccarthy.html
http://www.rte.ie/news/2011/0420/mccarthyreport.pdf
http://www.independent.ie/national-news/state-firms-firesale-ruled-out-2625703.html
http://www.irishtimes.com/newspaper/breaking/2011/0420/breaking8.html
http://www.thejournal.ie/mccarthy-report-sale-of-state-assets-should-focus-on-long-term-growth-124356-Apr2011/
http://www.tv3.ie/article.php?article_id=57775&locID=1.2&pagename=news
http://www.breakingnews.ie/ireland/state-firms-fire-sale-ruled-out-502083.html

Infoanon

Thanks Elmo - say RTE are breathing a sigh of relief - no mention of being forced to sell off RTE 2 & 2FM.

Think if Leo and not Pat had got the broadcast portfolio things might be a lot different.

Interesting statement on DAB - spells the death knell for that adventure at least in terms of independents ??

Sam Russell

The only future for DAB, if they wanted one, would be to charge for the FM band and make the DAB licence free, or at least cheaper than FM.

None of this makes much sense atall. RTE NL should be seperate from RTE, but still a state body - perhaps if BG Networks and ESB Networks are joined, they could join that, but I'm not sure if there would be much synergie, unless the ESB networking infrastructure became part of RTE NL management. A single billing for GAS Electricity and TV licence might make sense.

Elmo

Infoanon wrote: »

Thanks Elmo - say RTE are breathing a sigh of relief - no mention of being forced to sell off RTE 2 & 2FM.

Think if Leo and not Pat had got the broadcast portfolio things might be a lot different.

Interesting statement on DAB - spells the death knell for that adventure at least in terms of independents ??

I think Leo is going down the road of being very idealistic and may end up being an FG equivalent to Mr. Burke, in a less corrupt capacity.

As for RTÉ 2 and 2FM being sold of again we have the issue of who gets the money the government or RTÉ. When Communicorp, UTV and Dogherty Hanson were paying huge money for Broadcasting Outlets in the boom it might have been a good idea but I can't imagine any of those companies (or similar) paying out in the region of €400M for those channels now (or even quarter of that), how much could we value those stations at? Remember RTÉ 2 still has allot of Children's programming something that isn't attractive to independents and I some how think that daytime on 2 will become TwoTube/TRTÉ.

Really what McCarty is saying.

1. Give some more of the licence fee to independents and TG4.
2. Make them pay for a spectrum licence.

Thus the government will earn money by dishing out the Licence Fee and then returning it to government coffers via ComReg and the BAI. :rolleyes: Transparency!

BrianD

I don't think that RTE NL should be sold off as it doesn't make sense.

The money gain is insignificant in the grand scheme of things.

Although RTE NL host various other services at their site the primary customer is still RTE. This means that the new owner could hold RTE to 'ransom'. In the UK, much of the ILR transmission is privately owned and not by the individual stations. I understand that it adds great expense to the stations operating budget.

It would be better if RTE NL was allowed to develop it's site further and become self sufficient or even provide a revenue stream back to the public purse.

In regard to independent radio paying for spectrum. If this is the case, the the proper way to go about it is to get rid of the "beauty parade" system that is currently used by the BAI and allow the highest bidder for a radio licence get it (provided they meet minimum standards).

Sam Russell

BrianD wrote: »

I don't think that RTE NL should be sold off as it doesn't make sense.

The money gain is insignificant in the grand scheme of things.

Although RTE NL host various other services at their site the primary customer is still RTE. This means that the new owner could hold RTE to 'ransom'. In the UK, much of the ILR transmission is privately owned and not by the individual stations. I understand that it adds great expense to the stations operating budget.

It would be better if RTE NL was allowed to develop it's site further and become self sufficient or even provide a revenue stream back to the public purse.

In regard to independent radio paying for spectrum. If this is the case, the the proper way to go about it is to get rid of the "beauty parade" system that is currently used by the BAI and allow the highest bidder for a radio licence get it (provided they meet minimum standards).

RTE NL get significant revenue outside of RTE and should be made independant of RTE. They could take over the communications infrastructure of ESB (or ESB Networks) and take over the collection of TV licence money by collecting it through the electricty billing system.

RTE NL should also collect licence fees for spectrum use by broadcasters, and new fees for all spectrum use should be introduced to raise cash for the state. RTE NL have the technology for monitoring spectrum use, and should have the power for policing its use and missuse.

BAI should then be responsible for content of licenced broadcasts, and policing the standards of that content, with powers to fine, suspend, and withdraw the licence from those offending. For example, this would cover the ripoff scams that TV3 had going the other year with their fake competitions for the drunk and incapable. The current sanction of having to read an adjudication is a littlle tame as a reprimand. A 24 hour suspension of the service with a silent channel would shout much louder.

The Comreg function could be split between RTE NL and the BAI as it would be covered by one or the other.

rlogue

RTE NL should be separate from RTE in any case

BrianD

Sam Russell wrote: »

RTE NL get significant revenue outside of RTE and should be made independant of RTE. They could take over the communications infrastructure of ESB (or ESB Networks) and take over the collection of TV licence money by collecting it through the electricty billing system.

RTE NL should also collect licence fees for spectrum use by broadcasters, and new fees for all spectrum use should be introduced to raise cash for the state. RTE NL have the technology for monitoring spectrum use, and should have the power for policing its use and missuse.

BAI should then be responsible for content of licenced broadcasts, and policing the standards of that content, with powers to fine, suspend, and withdraw the licence from those offending. For example, this would cover the ripoff scams that TV3 had going the other year with their fake competitions for the drunk and incapable. The current sanction of having to read an adjudication is a littlle tame as a reprimand. A 24 hour suspension of the service with a silent channel would shout much louder.

The Comreg function could be split between RTE NL and the BAI as it would be covered by one or the other.

No problem with any of this but if this is the route to follow then RTE NL should stay within State ownership. No point in privatising revenue collection for the state.

However, just to clarify what the roles of the various bodies that you mention above.

ComReg is there for the regulation of spectrum and to collect licence fees for it's use. As it stands usage by radio and TV stations is largely "free".

BAI regulates content across RTE and the Independent sector. By nature of legislation there is an overlap with ComReg for the spectrum licences.

RTE NL should just be allowed to continue what they do best - provide transmission facilities but I see little or no benefit in having this in private hands if the primary customer across all sites will be RTE. We'll never get back what RTE invested in these facilities over the years and some multinational will end up getting a state financed asset for buttons.

Sam Russell

BrianD wrote: »

No problem with any of this but if this is the route to follow then RTE NL should stay within State ownership. No point in privatising revenue collection for the state.

However, just to clarify what the roles of the various bodies that you mention above.

ComReg is there for the regulation of spectrum and to collect licence fees for it's use. As it stands usage by radio and TV stations is largely "free".

BAI regulates content across RTE and the Independent sector. By nature of legislation there is an overlap with ComReg for the spectrum licences.

RTE NL should just be allowed to continue what they do best - provide transmission facilities but I see little or no benefit in having this in private hands if the primary customer across all sites will be RTE. We'll never get back what RTE invested in these facilities over the years and some multinational will end up getting a state financed asset for buttons.

I would be very against the privatisation of any state asset because all that does is put public money into private pockets. The new owners then start to sweat the assets and leverage the assets to put the asset into heavy debt and pass it on.

No, RTE NL and Comreg could be merged and used to provide funding to the state for use of spectrum, and police the use of that spectrum. BAI would them be resposible for the content of the broadcasts, and the licence provision for broadcasters. RTE NL collect the cash, BAI hand out the red cards for bad behaviour. Both state agencies under Dept of Comms.

BrianD

Sam Russell wrote: »

I would be very against the privatisation of any state asset because all that does is put public money into private pockets. The new owners then start to sweat the assets and leverage the assets to put the asset into heavy debt and pass it on.

I would agree.

No, RTE NL and Comreg could be merged and used to provide funding to the state for use of spectrum, and police the use of that spectrum. BAI would them be resposible for the content of the broadcasts, and the licence provision for broadcasters. RTE NL collect the cash, BAI hand out the red cards for bad behaviour. Both state agencies under Dept of Comms.

I would disagree. RTE NL and ComReg are incompatible. RTE NL just own masts and run transmitters and there are many similar companies in Ireland. ComReg is a regulator. It would be incompatible for the regulator to be an operator in the business that it regulates.

Sam Russell

BrianD wrote: »

I would disagree. RTE NL and ComReg are incompatible. RTE NL just own masts and run transmitters and there are many similar companies in Ireland. ComReg is a regulator. It would be incompatible for the regulator to be an operator in the business that it regulates.

RTE NL do more than own masts. They are the ones who tell Comreg what is possible technically, just as the BBC used to do for the British Government before they were hobbled and sold off (the technical bit). If comreg had to collect revenue for spectrum use, who better than RTE NL to do it. Much of their future revenue will come from non-broadcast sources, and their technical expertise is better used to the states benfit rather than letting talking shops like the BAI be duped into passing state assets to private profiteers.

BAI is a regulator, but not much is regulated. Regulation has been a dismal failure in Ireland. Too much heed is paid by them to vested interests, and too much political interference for it to work properly.

BrianD

Sam Russell wrote: »

RTE NL do more than own masts. They are the ones who tell Comreg what is possible technically, just as the BBC used to do for the British Government before they were hobbled and sold off (the technical bit). If comreg had to collect revenue for spectrum use, who better than RTE NL to do it. Much of their future revenue will come from non-broadcast sources, and their technical expertise is better used to the states benfit rather than letting talking shops like the BAI be duped into passing state assets to private profiteers.

BAI is a regulator, but not much is regulated. Regulation has been a dismal failure in Ireland. Too much heed is paid by them to vested interests, and too much political interference for it to work properly.

I don't believe that this is the case. ComReg have their own people who devise strategy in regard to spectrum usage - there's a huge amount of spectrum outside of what would be used by RTE for broadcasting that they manage. Historically, RTE did have a fair degree of autonmy when it came to frequency use etc. and I'm sure there is plenty of 2-way consultation between the two organisations. However, RTE NL is a spectrum user and therefore should not be a regulator.

RTE NL are no better a position to collect revenue than ComReg and as a spectrum user it would be a conflict of interest.

rlogue

A bit like telling people in the late seventies that RTE should run local radio as they were the only ones who knew how radio worked...

Elmo

rlogue wrote: »

A bit like telling people in the late seventies that RTE should run local radio as they were the only ones who knew how radio worked...

Well as most local services in the 1990s (bar the more sophisticated Dublin ones haha) copied much of Radio 1 and still do!

The Cush

In a recent Dáil debate in relation to the sale of state assets (Colm McCarthy's Review Group) the issue of the disposal of RTÉNL was discussed and also the future of RTÉ's DTT spectrum.

Other Questions - Departmental Bodies
Tuesday, 21 June 2011

33. Deputy Martin Ferris asked the Minister for Communications; Energy and Natural Resources if he has considered the recommendations of the McCarthy Report on State assets and liabilities regarding companies under his responsibility; and his response to those recommendations. [15913/11]

Deputy Pat Rabbitte: ...
The review group also proposed the sale of RTE Networks. This company is a key player in the major task of switching over to digital terrestrial television and switching off the analogue system. This is a hugely important project to be completed by 2012. I would not wish to see this timeline endangered by fundamental structural change.

The report also makes a number of other recommendations which impact on areas of my Department. I will give all recommendations serious consideration and make my specific views known to Government in the first instance.

http://debates.oireachtas.ie/dail/2011/06/21/00014.asp#N13

Priority Questions - Broadcasting Legislation
Tuesday, 21 June 2011
...

Deputy Éamon Ó Cuív: Perhaps the Minister will clarify if the new digital spectrum now available to RTE will be held in State hands or auctioned out to private interests, with the consequence of adding to the emerging problem, if it is not already an established problem?

Deputy Pat Rabbitte: We are not talking about the medium or long term in terms of tidying up this area. The Bill will be before the House in a reasonable time. However, if what Deputy Ross fears or anticipates happens, then current powers ought to be adequate if the political will exists to intervene. In my direct experience going back over the years, it is political will that has been absent. Although there are some 11 recommendations in the report to modernise the legislation, to acknowledge we are now dealing with a convergence of media that was never the case before, the measures that are in place in the legislation provide adequate power if the political will is there to implement them.

I assure Deputy Ó Cuív there is no intention that the switch to digital should mean it will go outside the hands of the State broadcaster. If the commercial revenue was there and if in better economic circumstances there might be the possibility of additional multiplexes in terms of some of the private sector companies renting space and so on, that is something I would not be averse to considering. However, there is no question of the existing capacity going outside.

http://debates.oireachtas.ie/dail/2011/06/21/00011.asp#N19

200motels

What is RTE NL?

The Cush

200motels wrote: »

What is RTE NL?

RTÉNL (RTÉ Transmission Network Limited) is a wholly-owned subsidiary of RTÉ, operates a transmission network of approximately 200 transmission sites covering all parts of the country for analogue/digital TV and radio.

http://www.rtenl.ie/about.html
http://www.rte.ie/about/literature/rtenl.pdf

The Cush

Article in Tuesday's Irish Indo regarding RTÉ's reluctance to sell RTÉNL during the DTT transition period but might be open to the idea after ASO.

RTE tells Coalition it can't afford to sell assets

By Emmet Oliver
Tuesday July 19 2011

RTE has told the Government there is no scope for the broadcaster to sell any of its assets at this time, including its Montrose headquarters in Donnybrook, Dublin.

In a submission to the Colm McCarthy-led review of semi-states, the broadcaster made it clear that selling Montrose or RTE Network Limited (RTENL) would not be efficient, or save money in the long term.

The broadcaster was asked, like other publicly funded companies, whether it had any assets to sell to help reduce the national debt.

A letter from last September, sent by RTE's financial officer Conor Hayes and released by the Government under the Freedom of Information Act, shows the broadcaster strongly rejected the idea of selling assets.

"RTE has concluded that it does not possess specific assets a disposal of which could meaningfully contribute to a reduction in the overall national debt,'' wrote Mr Hayes.

RTE told Mr McCarthy, the UCD economist, it needed to deal with its own "outdated infrastructure, facilities and analogue equipment at its Donnybrook site''.

The broadcaster said it had its own "renewal'' plan which stretched out to 2025 and would cost up to €350m over this period, including new buildings, infrastructure and fresh equipment. RTE felt, the broadcaster said, that moving to a new location would "result in greater overall capital costs and disruption''.

The most efficient approach was to update and replace the existing facilities at Donnybrook, added Mr Hayes.

In relation to RTENL, Mr Hayes said this company was involved in developing national digital television, as standard analogue transmission would end in December 2012. This will cost RTE €70m, with more than €40m coming from bank debt and the remainder simply coming from RTE's annual cash flows.

Disruptive

"Any disposal of RTENL prior to 2013 would be highly disruptive to the implementation of analogue switch-off,'' said Mr Hayes.

After 2013 the network arm could be sold off, but only if regulator ComReg set up a proper charging regime, he added.

Mr Hayes said the network arm and the Donnybrook centre were needed long term and allowed RTE to deliver its public service broadcasting remit.

RTE is the latest state body to tell the Government it has no assets it can sell. The Revenue Commissioners has delivered a similar message and several government departments have also told the McCarthy group they have few assets worth selling. ESB and Bord Gais remain the two most lucrative assets owned by the State.

http://www.independent.ie/business/irish/rte-tells-coalition-it-cant-afford-to-sell-assets-2824700.html

Elmo

The Cush wrote: »

Article in Tuesday's Irish Indo regarding RTÉ's reluctance to sell RTÉNL during the DTT transition period but might be open to the idea after ASO.

I don't see why the Reporter could not ask RTÉ weather or not RTÉ NL could become a separate entity to RTÉ? Seems to me the reporter/newspaper FOIed some information and where then unwilling or unable to ask questions on the subject.

The Cush

Elmo wrote: »

I don't see why the Reporter could not ask RTÉ weather or not RTÉ NL could become a separate entity to RTÉ?

Maybe he did. Maybe the submission to the McCarthy review was more detailed than any information they would give to a newspaper reporter.

Elmo

The Cush wrote: »

Maybe he did. Maybe the submission to the McCarthy review was more detailed than any information they would give to a newspaper reporter.

Yes but once the report has read the submissions then he/she should call RTÉ to comment or ask for an interview, RTÉ would be happy to oblige. They still didn't ask RTÉ what they felt could be done and the report does not suggest that they did.

gillgill

Broadcasting vision is to enrich the lives of its audience through entertainment and information, across all media types, be they traditional or new media platforms. In support of the group's maxim of Building Communities for Good, the Broadcasting segment touches a par excellence mark on a cumulative basis through its owned radio audience, events and online properties.

rlogue

That was a bit random. Have you something specific to say on this thread or you are spreading a bit of loving awareness*



*Copyight Ronan O'Rahilly, 1964

icdg

Don't feed the trolls.