Irish broadcasting policy may end up being decided by the courts following the publication of a paper by the Director of Telecommunications Regulation, Ms Etain Doyle. Its most controversial points are that all existing MMDS and cable licences will be reviewed and that deflector systems should be given short-term licences.
The paper, on the future of television transmission in Ireland, has been published by Ms Doyle's office. It was prepared following a report earlier this year by the consultants, NERA/Smith, and the consultation with the industry that followed.
Ms Doyle's paper will further annoy the cable industry which has already initiated legal action against the Government, essentially for not closing down television deflector systems.
It claims the conditions laid out in the so-called letter of comfort the former minister responsible for communications, Mr Ray Burke, sent to the cable company, Princess Holding, applied to the whole industry. That letter said Princess Holdings had exclusive rights in its franchise area.
However, Ms Doyle said in one of the key findings that she was inviting MMDS and cable companies to submit business plans which she would review "and against which she will consider awarding new or modified licences on appropriate terms, including, for instance, duration".
She said she would propose new licences in the next few months for cable and MMDS operators so that uncertainty would not hang over the industry for a prolonged period. This is vital in the light of the imminent sale of Cablelink, as any buyer for the company being sold by Telecom Eireann and RTE would need to be sure about the licence position.
Moving into the digital era, she also said that these new licences should not be exclusive, meaning consumers should be able to choose to get their TV service on new digital terrestial services - the shape of which is currently being discussed by Cabinet, or via cable or satellite.
The paper also says Ms Doyle favours the licensing of some deflector systems, though this will require ministerial consent. She says that while she is not satisfied of the long term appropriateness of deflectors as a means of rebroadcasting she is aware of their market position. She is "minded to provide for the short-term licensing of deflector".
Her view that the cable and MMDS licences should be reviewed will upset the industry. MMDS operators hold their licences until between 2001 and 2004, while cable operators have always assumed they held the licences forever.
Ms Doyle is threatening to invoke a review clause in the existing contracts, which allows her to revoke cable licences at two years' notice. However, the industry maintains this was to be used if satisfactory systems were not put in place.
The report also says existing licences do not permit the transmission of digital televisions services. Cable operators assumed they could offer digital services and have already announced plans for the development of digital cable television with hundreds of television channels and interactive services.
None of the cable or MMDS interests would comment yesterday. A spokesman for the industry body, Cable Communications Association of Ireland, said the members would have to study the report first.
Ms Doyle, commenting on her report, said the transmission industry was not in a position to meet in full the needs of users in the 21st century. "There are a number of structural problems that will require careful but swift attention as well as a number of outstanding legal issues that, unless resolved, will prevent the industry from realising its potential."
She said she was keen to resolve these issues, if necessary through legal proceedings, though she recognised that protracted litigation might prevent the industry from achieving its development goals.
The document mainly concentrates on the introduction of digital television transmission, on which the Minister responsible for broadcasting, Ms De Valera, currently has proposals before the Cabinet.
