Chairman of the Commission Dr Hopeton Dunn said the broadcasting sector, including radio stations and free-to-air television companies, does not contribute to the cost of regulation, leaving the burden solely on the shoulders of subscriber-television or cable operators.

The commission is suggesting a change of that policy, as it moves ahead with plans to reform electronic-media laws and regulations.

The new regime is based on an August 2009 Media Policy Report compiled by the Canadian research company, Nordicity Consulting Group, and sanctioned by the commission.

"It noted that, in this respect, a structural inequity exists between regulated players across the industry, and this contributes to unevenness in the competitive environment," said Dunn.

The report recommends that the licence-fee regime be extended to cover all licensees in the market, which includes cable providers.

Jamaica has 28 radio stations, 18 of which broadcast nationally, and three free-to-air television stations, all privately operated.

"At the present time, none of these licensed entities make any contribution to the considerable cost of regulation," Dunn said at a media briefing in Kingston last week.

But a significant portion of the commission's resources are expended on broadcasting issues, said the chairman, such as protection against spectrum interference, conducting content standards investigations, monitoring copyright compliance, overseeing technical output and monitoring national geographical coverage levels.

"In these circumstances, it is simply inequitable and unjustifiable to continue with an arrangement which places the burden of the cost of this regulation entirely on the cable sector."

He said, moreover, it is accepted worldwide that in order to be independent, the broadcasting regulator must be able to function free from financial imbalance, interference or pressures from political or economic forces. One such vital element in ensuring its independence is a secure, diverse and consistent means of funding.

Regulation cost

"This is achieved when the cost of regulation is borne by each component of the sector that is being regulated," he stated.

He said this was supported by evidence from other reputable regulatory bodies globally, including in South Africa, the United Kingdom, Trinidad and Tobago and Australia.

Dunn, however, did not say how much he believed broadcasters should pay, and within what timeline such recommendations should be implemented.

He dismissed public statements suggesting that a recommendation has been made to the Government proposing that broadcasters pay five per cent of gross revenues as a tax on their operations.

"While making it clear that radio and television broadcasters should not be exempt from licence fees, as now obtains, the Media Policy Report does not specify any level of contribution to be paid by broadcasters," he said.

- JIS