Cross-media ownership: caution required
By Javed Jabbar
This comment is with reference to the statement issued by the honourable president and secretary-general of the Council of Pakistan Newspapers Editors (CPNE) as reported on July 22 hailing the recent decision by the federal cabinet to permit newspaper owners to set up TV channels.
There appears to be an unfortunate misunderstanding about alleged restrictions placed on cross-media ownership by the original ordinance.
The PEMRA Ordinance was actually promulgated on March 1, 2002 (about 16 months after I resigned from the cabinet in October 2000). I was associated with the drafting of the law (which substantially reflects its earlier two versions) in my capacity as information adviser and minister from November 1999 to October 2000 (when it was called the RAMBO Ordinance) and earlier as a minister in the caretaker government of President Farooq Leghari and Prime Minister Malik Meraj Khalid in 1996-97 when the law was promulgated on February 14, 1997 as the EMRA Ordinance.
For the record, the creation of a “National Electronic Media Authority” (NEMA) was first proposed by this writer in an article titled: “Democratizing the electronic media” published in Dawn in 1992. Whether in NEMA or EMRA or RAMBO or PEMRA, a consistent concern has been to ensure that the law enables equity for all citizens in being eligible to own electronic media through a transparent licensing process which prevents arbitrary monopolies.
An unhealthy private media monopoly was created in 1995 when Prime Minister Benazir Bhutto awarded contracts for FM radio (known as FM-100) and for Shaheen TV on outrageously exclusive terms without advance public notice and without inviting competitive bids. A public interest petition under Article 184 challenging this action filed by Dr Mubashir Hasan and this writer was admitted by the Supreme Court in May 1996 and three hearings were held the same year. Earlier, in 1992, a similar monopoly for NTM on the STN TV channel was also challenged in the Sindh High Court.
Precisely in order to eliminate the scope for future monopolies of any kind, the EMRA law and the RAMBO law, as also Clause-23 of the PEMRA ordinance 2002, is titled: “Exclusion of monopolies”. Section-2 of this clause specifies that, in the interest of open and fair competition, a licence should not be given to an applicant who is already associated with another mass medium in case such a new licence creates “undue concentration of media ownership” in a particular area or category. The ordinance itself does not, and did not ever place an outright ban on newspaper owners from also being eligible for radio and TV licences.
The provision for avoiding “undue concentration of media ownership” was included to ensure that newspaper owners did not gain unfair advantages over other applicants for licences or existing licencees.
As compared to radio, which is comparatively low cost, investment required for TV channels pre-qualifies only those with access to substantial finances. This factor makes it all the more necessary to ensure that prior material and media resources do not pre- dominate the electronic media environment of our country at the expense of those who wish to express a distinct policy viewpoint, but do not have financial resources to match large groups.
However, the PEMRA rules which were framed after my resignation from the Cabinet, went one major step beyond the law in violation of the basic principle that rules should help implement the law, and not change the law itself.
PEMRA Rule-17(5) went to the extreme of specifically making the owner of a newspaper or magazine, amongst others, ineligible for owning or operating electronic media.
Such an unreasonable rule could have been challenged in a court of law by an aggrieved potential applicant and would have, most likely, been struck down by the court.
As of July 23, no information has been published in the press or broadcast by the media giving precise details of the exact decision made by the federal cabinet nine days ago.
Before taking a decision to amend the PEMRA ordinance, the government should have circulated for public information the text of the proposed amendment in order to elicit public opinion.
Also, if parliament had been functioning normally, the amendment should have been debated there, to enable various viewpoints to be expressed before finalizing an approach to the issue.
A detailed comment will have to wait till the actual text of the amendment to the ordinance, or to the rules, is made available. But it needs to be noted now that there was no intention whatsoever to place an outright ban on cross-media ownership either in 1996-97 or in 2000 when the RAMBO ordinance was twice, in April and in August, given provisional approval by the federal cabinet nor was there such a ban in the PEMRA ordinance as enforced in March 2002.
The experience and resources of newspaper owners should, in principle, be positive factors when also applied to electronic media.
At the same time, there is a need to avoid undue concentration of media power as a matter of public interest.
In a short period of only 16 months of existence, PEMRA has covered considerable ground and issued over 24 licences for private commercial radio stations. The two priorities that now require PEMRA’s attention is to prevent the creation of monopolies, or of media cartels, in the interest of free and fair competition and to facilitate the establishment of low-cost, non- profit, community-based radio and TV stations which will help to broaden and balance ownership of electronic media.

