Appendix 4: Analysis of sample licence agreements for crown-reserved and local commercial FM spectrum

Date

Undated

4 April 2006

2008

2008

Undated

Current

Type

Non-commercial radio

Non-commercial TV

Local commercial FM

Local non-commercial FM

Spectrum reserved for promotion of Māori language and culture

Spectrum reserved for promotion of Māori language and culture

Ownership conditions

Immediate notification of changes in governance and/or management.

Obligations may not be assigned.

Immediate notification of changes in governance and/or management.

Obligations may not be assigned.

Owner must be resident in coverage area.

Licence can be transferred only under original conditions and with MED’s agreement.

Owner must be resident in coverage area

Must be non-profit company, society or trust.

Transferable only with MCH approval.

Must be non-profit

Must be non-profit

Funding conditions

Annual financial audit.

NZOA 65%

Sponsorship 25%

Donations 7%

Advertising 3%

Must be non-profit

Salaries no greater than market rates

<50% of funding from advertising/subscription

Any financial surplus to broadcasting expenses, capital improvement or charity.

NZOA 25%

Sponsorship 10%

Donations 40%

Advertising 15%

Friends 10%

No controlling interest in other licences.

No shares or financial interest to be owned by another licence holder

Adequate fundraising mechanism

<50% funding from advertising

Salaries no greater than market rates.

Governance body members may not profit.

Must be non-profit

Must be non-profit

Location conditions

Specified on licence

Specified on licence

Office and studio must be in coverage area

Office and studio must be in coverage area

Specified on licence

Specified on licence

Implementation conditions

Not specified

Broadcasting to commence within 3 months OR 2 years

Broadcasting to commence within one year of registration

Broadcasting to commence within one year of registration

Not specified

Not specified

Hours of broadcasting

Not specified

Not specified

12 hours daily (unless otherwise negotiated)

12 hours daily (unless otherwise negotiated)

Not specified

18 hours daily

Content –relevance

Music etc – 3 hrs day

NZ sense of ID – programme schedule

Cultural diversity – programme schedule

Programming tailored to a particular audience rather than to advertisers

NZ identity – programme listing

Cultural diversity – programme listing

Must work with community and cultural groups, regional govt, education institutions, youth, disabled.

Local news, info, stories and history.

Community and political issues.

Inform, entertain and involve local interests.

Some networking permitted.

Must work with community and cultural groups, regional govt, education institutions, youth,

 Local news, info, stories and history.

Community and political issues.

Inform, entertain and involve local interests.

Annual Māori language plan

4 hrs daily in Māori language, between 0600 and 1200.

Noted that this is minimum requirement.

Content – source

NZ programmes – 34 hrs week

Locally generated – 34 hrs week

Annual summary of programme providers and their contribution to Schedule B standards

Annual summary of programme providers and their contribution to Schedule B standards

NZ programmes – 8 hrs daily

Locally generated – 8 hrs daily

Music – 16 hrs daily

Locally generated programmes to meet unmet needs and interests for 1/3 of broadcasting hours.

Not specified

Not specified

Must keep records of material contributed by other parties.

Reporting

Annual financial report.

Records of programmes broadcast

Issues arising.

Compliance with Schedule B.

Interest in continuing licence

Annual financial report.

Records of programmes broadcast

Issues arising.

Compliance with Schedule B.

Interest in continuing licence

Annual compliance report

Annual compliance report

Broadcast records mandatory, with full recordings for 30-day period

Annual report

Broadcast records mandatory, with full recordings for 30-day period

Complaints from public

Not specified

Not specified

Must report complaints and their resolution.

Must report complaints and their resolution.

Not specified

Not specified

Audit

Specified information to be provided in writing

Must keep pertinent records, which can be audited

Specified information to be provided in writing

Must keep pertinent records, which can be audited

Compliance audit at any time.

Compliance audit at any time.

Broadcast records to be made available to TPK on 3 days notice

Broadcast records to be made available to TPK on 10 + 5 days notice

Sanctions

Written warning with 10 day deadline

Written warning with 10 day deadline

Written warning

Written warning

On-site visit if Broadcast Records not supplied

Independent audit

Revocation

On failure or inability to remedy breach.

On repetition of breach.

On failure or inability to remedy breach.

On repetition of breach.

Continued non-compliance – revocation of licence without compensation.

Continued non-compliance – revocation of licence without compensation.

No resolution – must cease broadcasting.

Continued non-compliance – withdrawal of licence

Continued non-compliance – withdrawal of licence

Other conditions not otherwise specified

Signature of broadcaster, MCH and MED required.

Signature of broadcaster, MCH and MED required.