Fiji gets permanent TV

Television

By Akanisi Motufaga

FIJI is to have its first permanent television service from this month, after a decade of discussions, proposals and national debates. The new service will be known as Fiji TV and will have three channels one free-to-air service and two pay television services.

The new company will hold an exclusive 12-year licence although gov ernment expects to open up the market after the eighth year of operation. The Fiji Development Bank (FDB) will be the major shareholder with 51 per cent shares followed by Television New Zealand (TVNZ) 15 per cent and Fiji Post and Telecommunications Limited (FPTL) 14 per cent.

The remaining 20 per cent will be open to members of the public who are interested in buying shares. FDB, a statutory organisation owned by the Fiji government, will provide finance and advice on racial issues and tra ditions and will hold the 51 per cent shares on behalf of Fiji’s 14 provincial councils and the Council of Rotuma.

TVNZ, which is owned by the New Zealand government, will provide the programmes, expertise and knowledge.

The company has been providing a temporary television service since 1991.

FPTL, a Fiji government owned tele communications company, will provide the transmission network around the Fiji group. The new company will have an initial paid-up capital of $B.B million with seven board members, three expatriates who will initially hold the top positions and an independent news team, Fiji currently has a temporary television service which is only avail able in the greater part of the capital, Suva, and in areas surrounding Nadi and Lautoka in the Western Division.

The first concrete television develop ment began in the mid-1980s when Channel Nine of Australia was issued with a licence. However, Channel Nine withdrew in 1987 when the Bavadra government was over-thrown in a military coup led by then Lieutenant- Colonel Sitiveni Rabuka, who is now prime minister. TVNZ stepped in in 1991 after being granted a temporary licence. At that time, the temporary service operated with a subsidy from the Fiji government which declined over the years as advertising revenue increased.

According to the Fiji TV business plan which Cabinet approved in late May, the free-to-air and pay TV services will operate as separate busi ness units within the company. It said a five per cent discount would be

adopted as an incentive for prompt advertising payment in order to make the free-to-air service viable.

For the Pay TV service, an initial $3O per month subscription fee will be levied for the two channels. All sub scription payments will be required in advance and incentives will be offered for advertising payment. Channel One of the Pay TV service will be devoted to entertainment where a mix of English and Hindi films will be screened while Channel Two will be devoted to sports. By the end of year one, the Pay TV service is expected to be available ip about 51,000 homes in Fiji. For the free-to-air service, a 10 per cent local production content has been proposed. There will be news, current affairs, documentaries, sport, education for children and adults, children’s programmes, religion, entertainment, drama and art. A Religious Advisory Panel is likely to be set up to provide consultancy advice on the content of religious programmes. Television rights will be secured for Fiji TV through satellite to a range of international news bulletins from United Kingdom and United States.

The service will also have access to news bulletins from Australia and New Zealand. The business plan said the expansion of the free-to-air service and the two Pay TV channels would improve the range of programmes and viewing choice. It said more Pay TV channels would be provided following government’s approved. The Fiji gov ernment is also to benefit from the new service. Fiji TV is expected to pay government $250,000 each year for the first three years of operation. Between the fourth to the sixth year, it is expected to pay $1 million each year.

A review will be conducted later on the amount of operating fees for the sixth to the 12th year. According to the business plan’s financial projections, Fiji TV is expected to lose $8,079,530 for the first five years of operation and gain $5,077,610 between year six to year 12 of the operation. Fiji TV is forecast to lose $3,382,047 in the first year; $1,950,702 in year two; $1,381,633 in year three; $923,998 in year four and $441,150 in year five.

In year six, Fiji TV is forecast to gain $46,088 in profit; $458,943 in year seven; $719,451 in year eight; $846,895 in year nine; $975,422 in year 10; $1,024,240 in year 11 and $1,006,571 in year 12. The business plan said about 40 per cent of the net profit would be paid out in dividends although such payments will not be made out until the company is on a sound financial footing. □