STAATSKOERANT, 24 JANUARIE 2014 No. 37261 The greatest challenge facing the development of community television is funding. Funding constraints operate at two levels. It limits the number of communities that can launch their own services to those with access to donors or other resources, and is an ongoing challenge for those that are Iicensed.The cost to distribute channels in the digital terrestrial environment will also play a fundamental role in the future developments as the distribution costs together with programme costs consume most of the operational budgets. 8.10 Fair competition Promotion of fair competition is critical to ensuring the viability of the broadcasting system as a whole, including the commercial broadcasting sector. Several stakeholders in their submissions to the Framing Paper highlighted a need to review current provisions and mechanisms aimed at reinforcing fair competition to both address challenges that may have been faced in meeting the objectives and to ensure that current provisions are updated in line with new challenges given the new converged multi-channel environment. In terms of the current policy framework, ICASA and the competition authorities have complementary roles to play in ensuring fair competition in the electronic communications and broadcasting sectors. The EC Act further clarified the regulator's role in relation to this and set out the processes that should be followed by ICASA in dealing with competition related matters it is responsible for. The regulator has held one specifically broadcasting linked competition inquiry in terms of the Act an inquiry into broadcasting transmission. A number of other issues relating to fair competition in the television sector are also important to consider in a policy review process. The issue of access to premium content is one such issue that has been considered in a number of countries. Access to premium content such as sports or movies is crucial to the success of platforms such as free-to-air, subscription and mobile television. Competition issues may arise when buyers acquire exclusive rights to such premium content that effectively lock out competition. Given convergence, there is also the potential for rights bundling across platforms (one operator bundles rights across subscription television or internet protocol television-IPTV-or mobile). Ultimately, this may deprive audiences of choice and quality. The way rights are bundled and the period of such exclusivity, are often means through which these issues are addressed by regulatory authorities (both sector specific ones and/or competition bodies. At the same time it must be recognised that the sale of distribution rights on an exclusive basis can result in higher prices for rights holders, which in turn can support industry development in sport and content development generally. 8.11 South African music and audio-visual content The 1998 White Paper on Broadcasting recognises that "broadcasting plays an integral role in developing and reflecting a South African identity, its character and cultural diversity within the framework of national unity". It focuses on television content across a broad range of genres and formats and on the promotion of South African music on radio. The White Paper states that South African content regulation and policy must serve both cultural and economic objectives. The White Paper outlines the following key interventions to achieve these objectives: Radio Television broadcasters must provide a mix of their own productions and of programmes produced by independent South African producers. South African music will be prioritised in the South African broadcasting system. 63 This gazette is also available free online at www.gpwonline.co.za 67