Section 30 population determination—proposed methodology change and licence area boundary planningDiscussion paperAUGUST 2014

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Introduction 1

Regulatory context 2

Discussion 4Census conversion—historical practice 4Census conversion—a new approach 4Possible alternatives to ABS data 7Licence area changes 7Summary and request for comment 8

Invitation to comment 9Making a submission 9

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Introduction The Australian Communications and Media Authority is seeking comments on its proposal to change the methodology for preparing the determination of population and consequential changes to the timing of licence area boundary updates for commercial and community broadcasting services licensed under the Broadcasting Services Act 1992 (the BSA).

Commercial and community broadcasting services in Australia are licensed to service particular licence areas. Section 30 of the BSA provides that the ACMA may determine the population of a licence area, the populations of the areas where licence areas overlap and the total population of Australia. In making such a determination, the ACMA is required to ‘have regard to the most recently published Census count’ made by the Australian Statistician, the head of the Australian Bureau of Statistics (ABS).1 The BSA does not set out particular methods or guidelines for doing so.

The ACMA uses the population determination of commercial broadcasting licence areas in applying certain media ownership and control provisions of the BSA.2 The ACMA has also traditionally used the ABS census collection districts (CD) as the building blocks to define licence area boundaries.

The number and technical characteristics of broadcasting services in each licence area are planned in licence area plans (LAPs) made by the ACMA under section 26 of the BSA. The LAPs (for radio broadcasting) or television licence area plans (TLAPs) (for television broadcasting) define, among other things, the geographic areas that broadcasting services will be licensed to serve.

In undertaking the 2011 census, the ABS has made changes to geographic areas used as the basis for collecting and publishing demographic data, including the abolition of CDs. This new ABS methodology required the ACMA to review its existing processes, both in terms of determination of population and its approach to updating licence area boundary information.

Initial limited population data for the 2011 census was first made available in June 2012 with detailed demographic data released in December 2012.

1 Subsection 30(3) of the BSA2 Part 5 of the BSA

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Regulatory contextSection 30 of the BSA provides that the ACMA may determine:> the licence area population of a licence area> a number that is to be the population of Australia for the purposes of the BSA.

In making such a determination, the ACMA is to specify:> the percentage of the population of Australia constituted by that licence area

population> the percentage of the licence area population that is attributable to an overlap with

another licence area.

In making a determination under section 30, the ACMA is to have regard to the most recently published census count. The ACMA last made a determination under section 30 on 16 June 2009; more information on that determination is available on the ACMA website.

Determining the population of the licence areas of commercial broadcasting services is required to enable the operation of certain provisions of the BSA and instruments made under the BSA. These include: > a limitation on the control of commercial television broadcasting licences under

subsection 53(1) of the BSA (a person must not be in a position to exercise control of commercial television broadcasting licences whose combined licence area populations exceed 75 per cent of the population of Australia)

> a limitation on the control of commercial television broadcasting licences within a single licence area under subsection 53(2) of the BSA (a person must not be in a position to exercise control of more than one commercial television broadcasting licence in the same licence area)

> a limitation on the control of commercial radio broadcasting licences within a single licence area under section 54 of the BSA (a person must not be in a position to exercise control of more than two commercial radio broadcasting licences in the same licence area)

> limitations on numbers of directorships under section 55 of the BSA (a person must not be a director of a company or companies that are in a position to exercise control of commercial television broadcasting licences whose total licence area populations exceed 75 per cent of the population of Australia);

> the cross-media rules under sections 59, 61AB and 61AEA of the BSA> the Broadcasting (Hours of Local Content) Declaration No. 1 of 2007, which relies

on the section 30 population determination to determine the amount of local content a regional commercial radio licensee must broadcast. (The population of a licence area is used to distinguish between small and other regional commercial radio broadcasting licences; ‘small licences’ are required to broadcast 30 minutes of local content, and other licences are required to broadcast three hours of local content.)

Under section 29 of the BSA, before allocating a new commercial television or radio broadcasting licence or community broadcasting licence (other than a temporary community broadcasting licence) that is a broadcasting services bands licence, the ACMA is to designate one of the areas referred to in a LAP or TLAP as the licence area of the licence. If the ACMA varies a LAP, it may vary the designation of the relevant licence areas (subsection 29(2) of the BSA). If a licence area is changed, subsection 30(4) of the BSA requires the ACMA to make a new determination of the licence area population.

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Licence areas are the basis for broadcast planning and help the ACMA to promote the objects of the BSA, including the economic and efficient use of the radiofrequency spectrum. Under section 23 of the BSA, when preparing or varying a LAP, designating a licence area for a licence under section 29 or determining the population of licence areas under section 30, the ACMA is to, among other things, have regard to:> demographics> social and economic characteristics within the licence area, neighbouring licence

areas and Australia generally> the number of existing broadcasting services and the demand for new broadcasting

services within the licence area, neighbouring licence areas and Australia generally.

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DiscussionHistorically, the ACMA has described licence areas for both commercial and community radio and television broadcasting services in terms of the geographic boundary hierarchy used by the ABS in the Australian census, as it was prepared before 2011. By defining licence areas this way, the ACMA has been able to determine the population of a licence area and the percentage of the population of Australia in the licence area by using the published ABS population count for each census unit by which the licence area is described. The smallest spatial unit used in the census prior to 2011 was the collection district (CD). Schedules in each LAP or TLAP describe licence areas by listing the number for each of the CDs (or larger spatial unit such as local government area) that combined together make up the licence area.

Census conversion—historical practiceAt each census, the ABS could add, remove or redraw CDs. As a result, the geographic area represented by any particular CD could change over time. Licence area definitions are, therefore, always referenced with respect to the census that defines the relevant CDs.

After each census, and before making a new determination of population, the ACMA has undertaken a process called census conversion, in order to describe each licence area in term of the CDs defined in the new census. The ACMA has mapped the licence area boundaries from the previous census as closely as possible to boundaries formed by the CDs defined by the new census.

This was a two-stage process. Initially, if a CD defined by the new census fell across two licence areas as defined by the old census, then the following rule was applied: > If the CD as changed by the new census data was still 50 per cent or more

contained within its previous licence area boundary, the CD remained included in that licence area for the purpose of specifying the licence area population.

Otherwise, if fewer than 50 per cent remained contained within the previous licence area boundary, the CD moved to the adjacent licence area.

The results of the first stage of this process were subject to a second review and, if necessary, adjusted to ensure that contiguous urban centres or localities (UCLs) remained within their accepted media markets and were not arbitrarily split between licence areas as a result of the census changes.3

This practice has served the broadcasting sector well, ensuring a careful analysis of licence area populations and correction of any discrepancies in licence area boundaries. However, changes made in the most recent census, and improvements in the ACMA’s information technology capabilities, now permit the ACMA to adopt a more efficient method of determining population.

Census conversion—a new approachBeginning with the latest (2011) census, the ABS has changed its former geographic boundary hierarchy known as the Australian Standard Geographical Classification (ASGC) to the new Australian Statistical Geography Standard (ASGS), which will change all the geographic units used in collecting census data. The scale of the ABS census changes makes this an opportune time for the ACMA to examine its population determination methodology.

3 ACMA, General Approach to Analog Planning, (September 2003).

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The ACMA proposes to adopt the new ASGS boundaries for licence area definitions, with the SA1 (statistical area) the most suitable ASGS spatial unit to replace CDs. SA1s are the smallest units for which the ABS intends to release detailed demographic data. While geographically smaller than CDs, they are considered a logical equivalent for the ACMA’s purposes. The ABS has advised that it intends to change SA1 boundaries as little as possible, except by subdivision.

A significant proportion of new ASGS areas will not have any part of their boundaries in common with previous ASGC areas. With increased IT sophistication, and in order to prepare population determinations in a timely manner, the ACMA proposes to adopt a practice that does not require manual review of the licence area boundaries at each census.

Instead of redrafting the licence area boundaries to match the boundary changes that occur with each new census, the ACMA proposes to map the populations from the new census back to the boundaries of licence areas as they were when they were most recently determined at a prior census. This process is described below. The population of each licence area is then calculated using the licence area boundary as currently determined.

This means that making a new determination of a licence area’s population does not require a change to the boundary of the licence area to accommodate a change in the ABS’s geographic units (as there will be no change to those units). Subsection 30(4) will still require the ACMA to determine a new licence area population if it does decide to change the boundary of the licence area.

In mapping the population from the new census back to licence areas determined by prior censuses, the ACMA will use a process based on the mesh block boundaries published by the ABS. Mesh blocks are the ABS spatial units that make up each SA1 and are designed to represent areas of approximately uniform population density. This allows the mesh blocks to be overlain on an existing licence area and population to be distributed as a proportion of the geographical areas that don’t perfectly align. This process will also allow for calculating populations in overlaps of licence areas that have been determined based on different censuses.

However—unlike the SA1 boundaries—mesh block boundaries will change from census to census, as was the case with CDs. While the ACMA does not intend to use mesh blocks for defining licence area boundaries for this reason, their use in preparing the population determination under each new census provides for a high level of precision in apportioning population counts from a new census to the licence areas as defined by previous censuses.

This process for distributing population is shown in Figure 1, with mesh blocks (determined from 2011 census data) overlaid on an existing CD. The CD, with the identifier CD_8020308, was originally defined in terms of the 1991 census data. Population is mapped as a proportion of each mesh block to the CD to calculate the total population within the CD as per the 2011 census data. This allows the population counts to be updated while the existing geographical boundary of the area is not changed.

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Figure 1 Mapping mesh block populations to an existing CD

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The table shows the proportional distribution of population and geographical area from the mesh blocks to the CD:> column one—identifies the mesh block by a unique numerical code> column two—gives the population of each mesh block > column three—gives the area in square kilometres of each mesh block> column four—gives the area, in square kilometres, of the CD that falls within each

mesh block> column five—provides the percentage of each mesh block that falls within the CD> column six—gives the amount of the mesh block population that is within the

boundaries of the CD.

The population to be attributed to the CD is calculated through the proportion of population for each mesh block that falls either partially or fully within the CD.

Possible alternatives to ABS dataIn proposing the adoption of the new ABS boundaries for licence area definitions, the ACMA has also looked carefully at other possible units for spatial measurements. Possible alternative boundary datasets that could be used to define licence areas include data such as Australia Post postcodes, the Hierarchical Cell Identifier Scheme identifiers of the Australian Spectrum Map Grid or even arbitrarily defined boundaries described in terms of boundary coordinates.

However, to be of use in defining licence area boundaries, any alternative boundary dataset will have boundaries that:> cover the whole of Australia including the external territories> are able to distinguish small populations in a manner similar to CDs> are not subject to change.

None of the boundary datasets considered by the ACMA meet all three requirements or have the flexibility of the demographic and geographic links provided by census data. Nor are they able to meet the level of automatic conversion possible with the use of the new ABS geographical hierarchy.

Licence area changesAdopting the new methodology for making the determination of population, including the cessation of the manual review of licence area boundaries at each new census, will require the ACMA to consider its approach to managing potential changes to licence area boundaries.

The ACMA’s approach to licence area boundary management is set out in the General Approach to Analog Planning (the GAAP). This approach is still relevant to the maintenance of licence areas for digital-only broadcasting services.

The GAAP assumes that the licence areas of existing commercial and community broadcasting services using the broadcasting services bands represent accepted media markets and the ACMA will not vary them without good reason, other than to update them where boundaries are based on outdated census descriptions.4 Under this approach, licence descriptions have been updated over time to the description used for the latest determination of population by a variation to the relevant LAP.

4 ACMA, General Approach to Analog Planning, Chapter 5(2), ‘Record of Assumptions II. Further Assumptions – Preparation of the LAP and variation of the FAP’, para. 3 (p. 38).

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Updating the licence area definitions in this way reflects the technology of the time and its ability to cope with multiple census data sets. However, the previous census data is still available and improved technology will allow licence area data sets to be stored electronically in terms of CDs or SA1s, depending on which census a licence area is defined by. There is no legislative requirement to vary LAPs for the sole purpose of updating the licence area definitions to the most recent census when there is no specific intent or need to vary the geographic extent of the licence area.5

The ACMA proposes to discontinue its current practice of routinely updating licence area descriptions in LAPs to the latest census definition. Instead, each licence area would remain defined in terms of the census by which it is currently defined, unless the ACMA proposes that the licence area boundary needs to change for some other reason. For example, the Mt Isa Radio LAP is defined in terms of the 2006 census and will remain so, rather than being redefined in terms of the 2011 census as an automatic consequence of any census boundary changes based on the 2011 census. Keeping the boundary unchanged in this way is more in accordance with the principles underpinning the GAAP.

The ACMA’s starting point would remain the assumption in the GAAP that licence areas represent accepted media markets and should not be changed without good reason.

The ACMA believes that it is more logical to consider licence area boundaries within a general and inclusive LAP or TLAP variation. At such a point, the physical licence area and the services provided by broadcasters in the licence area can be considered more thoroughly as a whole, including the interactions with adjoining licence areas.

Summary and request for commentThe ACMA proposes to adopt the new ABS geographic hierarchy for making the population determinations under section 30 of the BSA and for use in defining licence area boundaries.

Comment is sought on the following proposals put forward in this discussion paper to:1. Adopt the new ABS geographic hierarchy.2. Determine the population for a licence area using the new approach to census

conversion process described in this paper.3. Leave licence areas defined in terms of the census in which they are currently

defined, unless the ACMA proposes to change the licence area boundary for some good reason, such as maintaining the demographic integrity of a UCL.

5 Subsection 30(4) provides that the ACMA must make a new determination of population of a licence area if the licence area is changed.

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Invitation to commentMaking a submissionThe ACMA invites comments on the issues set out in this discussion paper. Submissions should be made:By email: bcp@acma.gov.auBy mail: The Manager

Population Determination and Licence Area Planning Broadcast Carriage Policy SectionAustralian Communications and Media AuthorityPO Box 78Belconnen ACT 2616

Please quote file reference ACMA2013/1277 in your reply.

The closing date for submissions is 5 pm on Friday 12 September 2014.

Electronic submissions in Microsoft Word or Rich Text Format are preferred.

Media enquiries should be directed to Emma Rossi on 02 9334 7719 or by email to media@acma.gov.au. Any other enquiries may be directed by email to bcp@acma.gov.au.

Each submission should specify:> the name of the individual or organisation making the submission> their contact details.

A submitter may claim confidentiality over their name or contact details or may make a submission anonymously or through use of a pseudonym by following the procedures outlined below (see ‘Publication of submissions’ and ‘Privacy’ below).

Effective consultation The ACMA is working to enhance the effectiveness of its stakeholder consultation processes, which are an important source of evidence for its regulatory development activities. To assist stakeholders in formulating submissions to its formal, written consultation processes, it has developed Effective consultation—a guide to making a submission. This guide provides information about the ACMA’s formal written public consultation processes and practical guidance on how to make a submission.

Publication of submissionsIn general, the ACMA publishes all submissions it receives. The ACMA prefers to receive submissions that are not claimed to be confidential. However, the ACMA accepts that a submitter may sometimes wish to provide information in confidence. In these circumstances, submitters are asked to identify the material over which confidentiality is claimed and provide a written explanation for the claim.

The ACMA will consider each confidentiality claim on a case-by-case basis. If the ACMA accepts a claim, it will not publish the confidential information unless authorised or required by law to do so.

Release of submissions where authorised or required by lawAny submissions provided to the ACMA may be released under the Freedom of Information Act 1982 (unless an exemption applies) or shared with other Commonwealth Government agencies under Part 7A of the Australian Communications and Media Authority Act 2005. The ACMA may also be required to

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release submissions for other reasons including for the purpose of parliamentary processes or where otherwise required by law (for example, under a court subpoena). While the ACMA seeks to consult submitters of confidential information before that information is provided to another party, the ACMA cannot guarantee that confidential information will not be released through these or other legal means.

PrivacyThe Privacy Act 1988 imposes obligations on the ACMA in relation to the collection, security, quality, access, use and disclosure of personal information. These obligations are detailed in the Australian Privacy Principles that apply to organisations and Australian Government agencies from 12 March 2014.

The ACMA may only collect personal information if it is reasonably necessary for, or directly related to, one or more of its functions or activities.

The purposes for which personal information is being collected (such as the names and contact details of submitters) are to:> contribute to the transparency of the consultation process by clarifying, where

appropriate, whose views are represented by a submission > enable the ACMA to contact submitters where follow-up is required or to notify

them of related matters (except where submitters indicate they do not wish to be notified of such matters).

The ACMA will not use the personal information collected for any other purpose, unless the submitter has provided their consent or the ACMA is otherwise permitted to do so under the Privacy Act.

Submissions in response to this paper are voluntary. As mentioned above, the ACMA generally publishes all submissions it receives, including any personal information in the submissions. If a submitter has made a confidentiality claim over personal information which the ACMA has accepted, the submission will be published without that information. The ACMA will not release the personal information unless authorised or required by law to do so.

If a submitter wishes to make a submission anonymously or through use a pseudonym, they are asked to contact the ACMA to see whether it is practicable to do so in light of the subject matter of the consultation. If it is practicable, the ACMA will notify the submitter of any procedures that need to be followed and whether there are any other consequences of making a submission in that way.

Further information on the Privacy Act and the ACMA’s privacy policy is available at www.acma.gov.au/privacypolicy. The privacy policy contains details about how an individual may access personal information about them that is held by the ACMA, and seek the correction of such information. It also explains how an individual may complain about a breach of the Privacy Act and how the ACMA will deal with such a complaint.

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