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PEMRA RULES

GOVERNMENT OF PAKISTAN

MINISTRY OF INFORMATION AND BROADCASTING

Islamabad, the 12th December, 2009

NOTIFICATION

 S.R.O.-1120(I)/2009.- In exercise of the powers conferred by sub-section (1) of section 39 of the Pakistan Electronic Media Regulatory Authority Ordinance, 2002 (XIII of 2002), the Pakistan Electronic Media Regulatory Authority, with the approval of the Federal Government, is pleased to make the following rules, namely:-
 
 1. Short title and commencement.-

(1) These rules shall be called the Pakistan Electronic Media Regulatory Authority Rules, 2009.
 
              (2) They shall come into force at once.
 
              2. Definitions.- (1) In these rules, unless there is anything repugnant in the subject or context,-


(a)

“application form" means the application form as may be prescribed by the Authority for grant of a licence;

(b)

“applicable licence fee” means the licence fee prescribed by the Authority or where applicable, determined through bidding by Authority;

(c)

“authorized officer” means the Chairman or a member, or any member of staff, expert, consultant, adviser, other officer or employee of the Authority to whom the Authority has by general or special order delegated its powers, responsibilities or functions under the Ordinance for carrying out the purposes of the Ordinance, rules or regulations made thereunder;

(d)

“cable television operator” means any person who owns, controls, manages or runs any cable television system and includes local loop holder;

(e)

“cable TV system” means any system consisting of closed transmission paths and associated signal generation, control and distribution equipment, designed to receive and re-transmit television channels or programs for reception by multiple subscribers;

(f)

“code" means the code of conduct for media broadcasters and cable TV operators specified in Schedule-A;

(g)

“Council” means the Council of Complaints established under the Ordinance;

(h)

“eligible channel” means a TV channel licensed by the Authority or otherwise declared to be eligible for reception and distribution in the country;

(i)

“encrypted” means treated electronically or otherwise for the purpose of preventing intelligible reception by unauthorized persons;

(j)

“foreign broadcasting service" means a broadcasting service which is uplinked from outside Pakistan and received in Pakistan;

(k)

“free to air broadcasting service” means a non-encrypted broadcasting service made available to the public without any subscription fee;

(l)

“head-end” means a set of equipment for receiving and retransmitting the terrestrial and satellite TV channels for re-transmission or distribution at a specific location;

(m)

“in-house distribution channel” means array and distribution of pre-recorded programmes by a distribution service operator over its network;

(n)

“IPTV” means internet protocol television and delivery of television programmes using internet protocol technology on broadband telecom access network;

(o)

“loop holder” means a person who obtains signals from distribution service operator and further distributes the same to multiple subscribers without inserting any further programmes or advertisements;

(p)

“management control” in relation to a person means the power to exercise a controlling influence over the management or the policies of the company or undertaking and, in relation to shares, means the power to exercise a controlling influence over the voting power attached to such shares;

(q)

“mobile TV” means wireless distribution of TV signals to a mobile portable device using any supporting technology;

(r)

“Ordinance" means the Pakistan Electronic Media Regulatory Authority Ordinance, 2002 (XIII of 2002);

(s)

“proprietary radio set” means a radio signal receiving apparatus, sold or provided by the owner of a radio channel, designed to exclusively receive his transmissions;

(t)

“Schedule" means the Schedule to these rules;

(u)

“service point” means a system outlet on the system which may be used for monitoring the system parameters;

(v)

“set-top box" means a device for receiving and decoding encrypted television signal;

(w)

“subscriber” means a person who subscribes to a service provided by a licensee without further transmitting it to any person;

(x)

“subscription fee” means fee prescribed for receiving a broadcast or distribution service by a subscriber;

(y)

“TV de-scramblers or decoders” means the equipment used to receive the television de-scrambler or decoder service; and

(z)

“TV de-scrambler or decoder service” means the reception of programmes through satellite or other means of telecommunication, by using TV                  de-scramblers or decoders, and transmitting to the subscribers.

 
             
              (2) The expressions used but not defined herein shall have the same meaning as are assigned to them under the Ordinance.
 
3. Meetings of the Authority, etc.- (1) The Authority shall hold not less than four meetings in a calender year and may meet as often as it deems fit in order to dispose of its functions as provided for in the Ordinance.
 
              (2) The agenda and notice of the time, date and place of the meeting shall be circulated among the members at least one-week prior to the date of the meeting:
 
              Provided that for disposal of urgent matter requiring immediate decision, the agenda and notice may be circulated among all the members through phone, fax or email.              
 
              (3) The Authority may seek opinion of any officer or expert on a specific item of the agenda.
 
              (4) The Chairman shall convene a meeting of the Authority either at his own accord or, as the case may be, on request of more than one half of the total membership.
 
4. Categories of licences.- (1) The Authority shall, as it may deem fit, issue licences for broadcast media and distribution service in the categories or sub-categories as provided for  in section 18 of the Ordinance.
 
              (2) The Authority may also grant permission to a distribution service licensee for running of in-house distribution channel subject to such terms and conditions and payment of fee and other charges as the Authority may prescribe:
             
              Provided that only Pakistani content shall be distributed on such channel.
 
              (3) International scale broadcast shall also include satellite television.
 
5. Duration and renewal of licences.- (1) The licence shall be granted for a period of five, ten or fifteen years subject to payment of fee as set out in Schedule-B.
 
              (2) The licence shall be valid for the term for which it is granted subject to the payment of annual fee or any other charges as set out in the Schedule-B.
 
              (3) The fee relating to the grant of a licence, renewal thereof, late payment surcharge and fine, if any, shall be deposited in the account of the Authority.
                                         
6. Application for grant of licence to operate broadcast media or distribution service.- (1) Any person desirous of obtaining a licence in any category or sub-category of broadcast media or distribution service, shall apply to the Authority on the application form.
 
              (2) Every application form shall be accompanied by a non-refundable application processing fee as set out  in the Schedule-B for respective categories or sub-categories, and such documents as the Authority may specify. The Authority may however require an applicant to file such additional documents as it may deem fit.
 
              (3) The Authority may, where applicable, forward the application to the Frequency Allocation Board (FAB) through Pakistan Telecommunication Authority for frequency allocation.
 
              (4) The application may be processed simultaneously, however, the licence shall not be granted until the approval of frequency allocation is received from FAB.
 
7. Criteria for evaluating licence application.- Applications for the grant of a licence shall, in the first instance, be short listed by adopting the following criteria, namely:-             
              (a) financial viability;
              (b) technical feasibility;
              (c) financial strength;
              (d) credibility and track record;
              (e) majority shareholding and management control shall vest in Pakistani nationals ;
              (f) prospects of technical progress and introduction of new technology;
              (g) market advancement, such as improved service features or market concepts;
              (h) contribution to universal service objectives; and
              (i) contribution to other social and economic development objectives.              
 
8. Fees and security deposits.-  (1) Each successful applicant shall, within time prescribed by the Authority and before the issue of the licence, deposit the applicable licence fee and make a security deposit, if applicable, as set out in the Schedule-B. The security deposit shall be refundable after the expiry of one year of operation of the station to the satisfaction of the Authority.
 
              (2) Every licensee shall follow the specified time line relating to the payment of any dues of the Authority.
 
9. Grant of licence.- (1) The Authority shall, if it is satisfied that the applicant fulfils the criteria as provided for in the Ordinance, these rules and regulations made thereunder and has paid the prescribed fee and other charges, if any, grant licence to the applicant.             
 
              (2) Every licensee shall follow the general terms and conditions as set out in  Schedule-C.
 
              (3) The Authority shall, except where the application for grant of licence relates to Islamabad Capital Territory, invite the comments of the Provincial Governments concerned, as provided for in section 21 of the Ordinance.                           
 
              (4) The Authority, if satisfied that the grant of the licence to a particular person is not in the public interest, may, for reasons to be recorded in writing and after giving the applicant an opportunity of being heard, refuse to grant a licence.                                         
 
              (5) The Authority shall, within one hundred days from the date of  its receipt, take decision on the application for grant of a licence subject to clearance from the Ministry of Interior and frequency allocation by FAB in relevant cases.                           
 
              (6) The Authority shall prescribe procedures for an open and transparent bidding in such cases where number of the applicants is likely to exceed the number of licences which the Authority has fixed for that category or sub-category.                           
 
10. Subscription fee.- (1) A licensee shall charge from its subscribers such subscription fee which shall not exceed maximum limit as set out in the Schedule-B.                           
 
              (2)The Authority may, on a formal written request from a licensee or on its own initiative after recording reasons, revise the subscription fee rates as set out in the      Schedule-B.                                         
 
              (3) The licensee shall, not later than thirty days prior to the enforcement of the revised rates, notify to its subscribers any change in the subscription fee as approved by the Authority.
 
11. Decoder fee.- A licensee may charge such fixed fee not exceeding the limit prescribed by the Authority from time to time for decoders and set-top boxes provided to the subscribers.
 
12. Renewal of licence on expiry of the licence term.- (1) A licensee may, at least six months prior to the expiry of the licence, apply to the Authority for renewal of its licence and the Authority may renew the licence subject to-
 
(a) satisfactory past performance of the licensee;
(b) the opinion of the concerned Council if the Authority so requires;
(c) payment of the prescribed fee prevalent at the time of renewal and payment of outstanding dues, if any; and
(d) fulfillment of any other terms and conditions as prescribed, or varied in the public interest,  by the Authority from time to time.
 
              (2) In case of refusal to renew a licence the Authority shall record reasons in writing.
 
              (3) The Authority may renew a licence for such term as the original term of the licence beginning from the date of expiry of the licence.
 
13. Media ownership concentration and exclusion of monopolies.- (1) To ensure  that fair competition is facilitated, media diversity and plurality are promoted in the society and undue concentration of media ownership is not created. Maximum number of licences that may be issued to a person or any of its directors or partners where such person is a company or firm, who is directly or indirectly, controlling, owning or operating more than one media enterprise, shall not exceed a total of four satellite TV, four FM Radio licences and two landing rights permissions.
 
              (2) A licensee having direct or indirect interest in any other media enterprise shall ensure -

  1. appointment of separate editorial boards and monitoring facilities for each medium under its control;
  2. establishment of separate management structures for each medium under its control; and
  3. maintenance of separate accounting record for each medium under its control.

             
              (3) A licensee who owns, controls or operates directly or indirectly any other distribution service licence shall not be granted a landing rights permission or broadcast media licence.
 
              (4) A licensee who owns, controls or operates directly or indirectly broadcast media licence or landing rights permission shall not be granted a distribution service licence.
 
14. Proscription of a foreign broadcasting service.- No foreign channel shall be distributed unless landing rights permission for such channel has been obtained from the Authority:                                                       
 
              Provided that a distribution service operator shall relay only TV channels licensed by the Authority.
                           
15. Programms and advertisement content.- (1) The contents of the programmes and advertisements which are broadcast or distributed by the broadcast media or distribution service operator, shall conform to the provisions of section 20 of the Ordinance, these rules, the code set out in the Schedule-A and terms and conditions of the licence.
 
              (2) The programmes shall also conform to the provisions of the Motion Pictures Ordinance, 1979 (XLIII of 1979), the rules and code of conduct made thereunder, whereas the advertisements shall also conform to the TV Code of Advertising Standards and Practices in Pakistan and Advertisement Code issued by the Authority.
 
              (3) During a regular programme a continuous break for advertising shall not exceed three minutes and duration between two such successive breaks shall not be less than fifteen minutes.
 
              (4) The licensee shall maintain a record and register of the programmes being broadcast or distributed by him and shall, for a period of not less than forty-five days, preserve such programmes.
                           
16. Mergers and transfers.- (1) Without prior approval of the Authority, a licensee shall not transfer, merge or amalgamate with any other person any rights conferred under the licence.                           
              (2) Without prior approval of the Authority, any person shall not transfer or dispose of his shares or interest which he is holding or owning in a company which is a licensee:
 
              Provided that in the case of a listed company, the shares, representing not more than two per cent of the issued and paid up share capital, may be transferred without such approval.           
  
17. Maintenance of accounts.- The licensee shall maintain proper accounts, as required by the applicable laws, and shall cause to be carried out the audit of his accounts by one or more auditors who are chartered accountants within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961) and shall submit the audited financial statement to the Authority not later than three months of the closing date of its financial year.
 
18. Councils of complaints.- Each Regional General Manager of Authority shall act as Secretary to the respective Council and may issue notices or summons on behalf of the Council established under section 26 of the Ordinance.
 
19. Area of operation.- A licensee to whom a licence has been issued for a particular area shall not extend or shift its operations beyond the territorial limits of that area without prior permission of the Authority and up-gradation of its existing licence or issuance of a new licence shall also be subject to permission in writing by the Authority:
 
              Provided that an FM radio licensee shall not be allowed to shift its station from the city for which it has been licensed.
 
20. Repeal and savings.- (1) The Pakistan Electronic Media Regulatory Authority Rules, 2002, hereinafter referred to as the said rules,  are hereby repealed.
 
              (2) Notwithstanding anything contained in sub-rule (1)-

  1. any licence, permission or lease granted or renewed under the said rules which are not inconsistent with provisions of the Ordinance, these rules and regulations made thereunder shall be deemed to have been so granted or renewed under these rules;
  2. any fee, security deposit, fine and surcharge etc. chargeable under these rules shall apply to such licence, permission or lease granted or renewed under the said rules;
  3. any application made for the grant of a licence and pending consideration under the said rules, shall be deemed to have been so made and pending consideration under these rules; and
  4. the repeal shall not-
  5. revive anything not in force or existing at the time at which the repeal takes effect; or
  6. affect the previous operation of the said rules or anything duly done or suffered thereunder except as aforesaid; or
  7. affect any right, privilege, obligation or liability acquired, accrued or incurred under the said rules; or
  8. affect any penalty, forfeiture or punishment incurred in respect of any offence committed against the said rules; or
  9. affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid.
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