The entertainment and media sectors face significant issues surrounding digitalisation, globalisation and the huge opportunities arising from the Internet's delivery of thousands of content windows. A day in the rapidly-changing entertainment and media industries is equal to a year in almost any other sector.

Already our daily lives are being affected as never before by new media and multimedia technologies - this will become even more stark as the age of digital television, and the more widespread use of the Internet/interactive media, dawns.

Against this background, the recent issue of the Broadcasting Bill represents a very significant development in the history of Irish broadcasting. It seeks to put in place the foundation for the development of Irish broadcasting services into the next century and ensure that the Republic stays abreast with industry changes, new technology and the impact of convergence on the global marketplace.

The broadcasting and media markets are becoming increasingly competitive. Recently, the spotlight has been on the cable companies with the sale of Cablelink to NTL, and there has been much said about the capacity and capability of the cable companies to provide significant multi-channel, Internet and telephony services. The new Broadcasting Bill now puts the spotlight on the Republic's new digital television service and puts in motion the framework for the provision of a national capability in this "new" market.

The Broadcasting Bill contains many important provisions, some of which will be welcomed, others which are challenging for all concerned. These provisions deal with many compelling issues, including infrastructural matters, digitalisation, content management, codes and standards, and many more. In turn these areas pose many thought-provoking issues and questions, including inter alia the following:

The Bill provides for the establishment of a new broadcasting infrastructure and the establishment of a new commercial entity, Digico, (in which RTE will be a minority shareholder) to operate and manage the transmission of digital terrestrial television (DTT) services. The search for suitable strategic investors is under way.

The DDT network will comprise six multiplexes, each of which will have five or six channels. One of these multiplexes will be allocated to RTE, one will be shared by Telefis na Gaeilge (TnaG) and TV3 and the remaining four will carry British channels as well as subscription, premium-rate, Internet and other interactive services. Cable may, in time, be capable of offering up to 200 television channels together with many of the other mentioned value-added services.

There are many interesting questions here, including:

How will all of these channels be filled?

Where will the content come from?

What will the programming strategy be; particularly, what will be the level of original content versus the level of retransmission?

Is the Irish audience/market of sufficient scale? Will there be an adequate level of demand for the services? Will there be sufficient demand for advertising?

There will be many new services on offer and Digico will be competing directly with the cable and MMDS companies for customers and market share. All players will be investing many millions to upgrade their networks. It is hard to believe that the Irish market is of sufficient scale to justify the levels of investment that will be made by the competing service providers. [SBX]

The Bill expands the role of the Irish Radio & Television Commission (to be renamed the Broadcasting Commission of Ireland [BCI]) and provides for the BCI to be funded by the Exchequer rather than by an income levy on broadcasters. The BCI will play an important role in the regulation of digital broadcasting on all platforms in the development of codes, rules, guidelines and standards with respect to programme material, broadcast advertising and other forms of commercial promotion. This will in turn involve BCI entering into contracts with providers of broadcast content. The legislative responsibilities which will now be given to BCI will catapult it to the forefront of developments in the broadcasting industry in the years ahead.

There has been much media discussion already about restatement in the Bill of RTE's "public service" responsibilities. As RTE will now have greater scope to provide commercial services the meaning of the term "public service" and drawing a distinction between public services and commercial services is not always clear cut.

Additionally, RTE will be required to provide an annual report on how television licence revenue has been expended. No doubt there will be many complex accounting issues to be addressed in identifying expenditure on providing "public services" from expenditure on other services, leaving aside the debate on the definition of "public service".

The Bill provides for the establishment of TnaG as a separate statutory corporate body and many of the issues noted above in relation to RTE will apply equally to TnaG.

The role of the Broadcasting Complaints Commission has been elevated and expanded. It has an important role to play as the watchdog of broadcasting standards on behalf of the public.

Many "new services" will shortly be on offer to the public. The Broadcasting Bill paves the way for the digital era while also seeking to put in place safeguards with respect to the quality and standards of broadcasting as well as meeting national and cultural interests.

Michael O'Neill and Feargal O'Rourke are partners in PricewaterhouseCoopers, specialising in the Entertainment & Media Industries.