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GOVERNMENT POLICY ON CROSS-MEDIA OWNERSHIP 1.0 INTRODUCTION 1.1 Convergence in the telecommunications, broadcasting and computing industries in Fiji has effectively and progressively broken the traditional boundaries and demarcations between markets. The word used to express the process of cross-media ownership and company mergers is “convergence”. 1.2 It is the experience in developed Commonwealth countries that mega-media corporations have too much power over what appears on television, radio and in the newspapers. These countries have, therefore, applied checks and balance to ensure that the TV station you watch, the radio station you wake up to and the newspaper you read aren’t all controlled by the same company. 1.3 Whilst cross media ownership has not been favoured in the past, Government is now at a stage where it wishes to indicate its policy stand on it. In order to promote orderliness in the manner in which cross media ownership is handled, Government therefore prescribes specific directions in this regard. 2.0 DEFINITION OF CROSS-MEDIA OWNERSHIP 2.1 The term cross-media ownership applies to ownership in radio broadcast, television broadcast, the print media and information technology. 3.0 POLICY OBJECTIVE 3.1 The overall objective of cross-media ownership is to provide a sustainable and locally controlled media industry that will contribute to increased participation of locals in the broadcasting and media industry as a whole. 3.2 Government’s policy on cross-media ownership is therefore premised to allow cross media ownership but subject to a set of key criteria to ensure fair competition and diversity of ownership in Fiji. 3.3 The policy will enable existing players in the media industry to diversify and invest in other mediums. 3.4 In line with the overall Social Justice and Affirmative programmes, the policy prescribes increased participation and ownership of the indigenous Fijians and Rotumans across the media industry. 4.0 TREND IN THE FIJI MEDIA INDUSTRY 4.1 The state of development in radio broadcasting, television and the print media has reached a reasonable level of maturity and major players in the markets are now exploring other opportunities to venture into. 4.2 Service providers in these markets have indicated their interest in venturing into cross-media ownership. Fiji TV has recently indicated their interest in owning a radio broadcast operation in the West while Communications (Fiji) Limited has expressed interest in venturing into television broadcasting. The idea of merging the Fiji TV and Fiji Broadcasting Corporation Limited operations has also been explored. 5.0 OPPORTUNITIES AND ADVANTAGES 5.1 Cross-media ownership will enable existing players in radio and television broadcasting, the print media and IT industry to invest across these markets thus offering greater diversification within the industry. 5.2 Through cross-media ownership these players could also increase their market shares and allow greater competition in these markets. 5.3 Cross-media ownership also enables the mainstreaming of locals, especially the participation of indigenous Fijians and Rotumans in the media industry across the country. 6.0 THREATS AND DISADVANTAGES 6.1 Large media corporations may wield too much power over what appears on television, radio and in the newspapers. The situation may arise where a few companies own large portions of the media, leaving smaller companies scrambling for footholds. 6.2 Cross-media ownership could result in undue concentration of ownership occurring within broadcasting, and most particularly airtime sales thereby allowing a company with interests in TV, radio, newspaper/magazine/ and online publishing to have considerable and unacceptable leverage in the advertising marketplace. 7.0 CROSS MEDIA OWNERSHIP CRITERIA 7.1 The policy statement of Government is to allow cross-media ownership subject to the following criteria: 7.1.1 Cross-media limitations; 7.1.2 Licence area limits; 7.1.3 Directorship limitations; 7.1.4 Limitations on control and ownership by foreign persons; 7.1.5 Sale of public shares; and 7.1.6 Other Qualifications 8.0 CROSS MEDIA LIMITATIONS 8.1 A person must not be in a position to exercise control of: 8.1.1 both a commercial television broadcasting licence and a commercial radio broadcasting licence which have the same licence area; or 8.1.2 either a commercial television or radio broadcasting licence and an English language daily newspaper associated with the licence area of such a licence. 8.2 A person must not be a director of a company in a position to exercise control of: 8.2.1 a commercial television broadcasting licence and a company in a position to exercise control of a commercial radio broadcasting licence that has the same licence area; 8.2.2 a commercial television or radio broadcasting licence and a company in a position to exercise control of a newspaper associated with the licence area of such a licence. 8.3 A person who controls a commercial radio or television broadcasting licence or a newspaper must not be a director of a company that controls another media interest of a different kind in the same licence area. 9.0 LICENCE AREA LIMITATIONS 9.1 A person must not be in a position to exercise control of: 9.2 more than one commercial television broadcasting licences in the same licence area, notwithstanding that in licence areas where there is only one commercial television broadcasting licence, Government may permit that licensee to provide a second commercial television broadcasting service; 9.3 more than two commercial radio broadcasting licences in the same licence area, notwithstanding that in licence areas where there is no other commercial radio broadcasting licence, Government may permit that licensee to provide a second commercial radio broadcasting service. 10.0 DIRECTORSHIP LIMITATIONS 10.1.1 A person must not be a director in two or more companies, which between them exceed the limitations on cross media, and on license area limitations. 10.1.2 A person who controls a licence or licences must not be a director of another company that controls a licence or licences if the consequential effective control held by the person under the circumstance exceeds the limitations on cross media, and on license area limitations. 11.0 LIMITATIONS ON OWNERSHIP AND CONTROL BY FOREIGN PERSONS 11.1 Foreign ownership restrictions do apply to commercial television and radio broadcasting licences and subscription television broadcasting licences, as well as on ownership of commercial radio broadcasting licenses. These restrictions are detailed below: 11.1.1 Commercial television broadcasting licences and commercial radio broadcasting licenses. a) A foreign person must not be in a position to exercise control of a commercial television or radio broadcasting licence; b) Two or more foreign persons must not have company equity or directorship interests in either a commercial television broadcasting licence or commercial radio broadcasting license exceeding 20 per cent; 11.1.2 Subscription television broadcasting licences a) A foreign person must not have company interests exceeding 20 per cent in a subscription television broadcasting licence; b) Two or more foreign person must not have company interests in a subscription television broadcasting licence exceeding 35 per cent. 12.0 SALE OF PUBLIC SHARES 12.1 Where shares in media entities are floated in Fiji, the securing of substantial shares by a single individual or group in one entity should be avoided to allow the sharing of wealth by all, within the media industry. 12.2 The sale of shares in media companies will be required to be conducted in conformity with the requirements of Part VIII of the Capital Markets Development Authority Act 1996. 13.0 OTHER QUALIFICATIONS 13.1 Authorised cross media operators must possess a proven record in the industry and have the capacity to operate, manage, deliver and sustain the business undertaking. 14.0 PARTNERSHIPS/JOINT VENTURES 14.1 Where partnerships and/or joint venture relationships are established investments should preferably be made through local entities and that in such arrangement effective control remains in the hands of the local partners. 14.2 Where investments are committed the application of Government’s current investment principles and requirements will apply. 15.0 LEGISLATIVE CONTROLS 15.1 Current laws applicable to the licensing and regulatory requirements of the media industry will apply. 15.2 The issue of licences in respect of radio and television frequency spectrum will be the responsibility of the Ministry of Information, Communications and Media Relations, which will also regulate compliance in accordance to the 1992 Television Decree and related legislations that superceed the Decree. 16.0 CONCLUSION 16.1 The adoption of the criteria on Cross Media Ownership in paragraph 7.0 forms the basis of cross-media ownership, which Government will continue to review according to developments in the media industry. 16.2 Current rules and regulations are considered sufficiently adequate to implement Government policy on cross-media ownership to ensure locals retain major equity shares in such ventures. _____________________ |
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