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Smith sets out plans for media super-regulator
The internet, radio, TV and the telecoms sector are to be brought under a new super-regulator for the communications industry, the government has announced.
In the white paper "A New Future for Communications", launched in the House of Commons by Chris Smith on Tuesday, the government set out plans to establish the Office of Communications - Ofcom - which ministers believe will provide "modern regulation" to replace a framework designed for a "different age".
Under the plans, the range of regulatory bodies - including Oftel, the Radio Authority and the ITC - will be merged to create the new super regulator.
Smith also announced that the government was to scrap the current limits on media ownership to ensure that "industry can act with responsible freedom". To achieve this the government will scrap the rule which restricts any one media organization to owning more than 15 per cent share of the industry and ending the rule which means that the capital's two TV franchises must be held by separate companies.
Smith stressed that the new regime would enhance the public service broadcasting principle through extending certain provisions - such as strengthening the watershed and ensuring impartiality in news output - to all broadcasters, including cable and digital providers.
He also rejected calls for the privatisation of Channel Four, saying it provided "highly successful and distinctive" output which was "complimentary and competitive to the BBC".
The government has also rejected calls to scrap the BBC's board of governors, choosing instead to transfer some of its powers to the new regulatory body - which, Smith claimed, would become "a final one-stop shop for all complaints".
Stressing that "we need to think beyond the traditional compartments of broadcasting" Smith said the government had a three-tier plan for the future of the communications industry. This included ensuring universal access to a diverse range of programming was maintained, establishing the UK as the most dynamic and competitive media marketplace whilst ensuring the interests of consumers were safeguarded.
Smith also stressed that the government would not allow the digital revolution to allow market forces to dictate the agenda. "We are committed to ensuring there is no digital divide," he told MPs. "Public service broadcasting will become more and not less important to society," he said.
The white paper has been given a cautious welcome by Broadcasting Standards Commission. A spokesman told epxNews: "We've been talking to different panels for quite a while and a lot of what we've been saying has been taken on board. Technology has driven change."
The white paper, a product of months of horse-trading between the Department for Culture, Media and Sport and the Department of Trade and Industry, will lead to legislation which is expected soon after the general election.
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