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ABC wins Australia Network contract over SKY News

The ABC has won the contract for Australia Network following delays and controversy surrounding the tender process.

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The ABC has won the contract for Australia Network following delays and controversy surrounding the tender process.

The public broadcaster retains the the 10-year $223 million contract to operate the regional television service, in a fierce tussle with SKY News.

Last month the government cancelled the tender bid and following several delays to the tender process and a change of portfolio from Kevin Rudd’s Foreign Ministry to Stephen Conroy as Minister for Communications.

The Australian Federal Police were appointed to investigate leaks which compromised the tender process amid media reports two reviews had recommended SKY be awarded the contract.

The ABC was then set to continue management until August 2012.

Senator Conroy said in a statement today, “The government believes it is unfortunate that this process did not reach a satisfactory solution, however, in light of the circumstances it is now in the national interest to make a clear decision about the future of the service rather than allowing uncertainty to continue.

“Having reflected upon the process to date, and what the service really needs to provide, the government has determined that Australia’s international broadcasting service should be delivered by the national broadcaster.

“The government also believes that the ABC is well placed to explore the opportunity to combine the Australia Network with its current international radio service, Radio Australia, and potentially with new online services to provide a multi-platform international media operation to embrace the converged media era.”

ABC managing director Mark Scott welcomed the decision, saying, “The ABC takes seriously the responsibility to take Australia into the Asia Pacific Region, building on the outstanding services we have delivered over 70 years.”

Last month Head of the Australia News Channel Angelos Frangopoulos said SKY was considering its options in the wake of the cancelled tender.

“We are concerned that both tender outcomes were rejected after each of the tenders had closed and the independent tender evaluation board had delivered its recommendations,” he said.

Source: The Age

25 Responses

  4. A very good point made by Kenny & Secret Squïrrel. This is Rudd’s mess & Conroy is just cleaning it up.

    But can’t this happen again as long as Australia Network is manged *for* DFAT? Shouldn’t they formalise its operation within ABC by simply making it another arm of ABC like Radio Australia?

  5. @Jen13 – well, you can believe News Ltd propaganda if you want but this “inept” govt has made the correct decision here. Vent your bile against Rudd – he was the one who originally put it out to tender before it was taken from him and given to Conroy.

    I don’t want our public international TV in the hands of any private company but News Ltd would be near the bottom of that list.

  9. Conroy made the right decision and Im glad he made it now rather than stretched out over another long tender process. The overwhelming support for the ABC in these comments just shows how little trust News Ltd has in this country and what a respected broadcaster the ABC is. I realise News only had a stake in Sky but we all know what that means.

  11. Didn’t Kevin Rudd put it out for tender? If so, why shoot Stephen Conroy? Regardless, it’s the right decision to maintain it with the ABC. No other country has non-government entities running their international radio/TV services.

  12. It should never gone out to tender. I’m sure the fit and proper broadcaster has won teh right. I’m sure News Ltd will retaliate against teh government and the ABC. It’s their style.

  13. To be clear, It most certainly is a News Corp channel. Just as Foxtel is a Newscorp run business despite having multiple shareholders (Didn’t News Limited Australia do a “swapsie” with Foxtel for CEO’s? – also worth noting RE Austar takeover)!!

    Furthermore, Newscorp already own Star, Fox Int and the Nat Geo channels in the region, so god knows why our government would have even considered this proposal. Conroy has proved himself incompetent once again.

  16. Des, thanks for the stats, but if you’ve read any edition of Monday’s (Limited News, wholly owned) Australian newspaper in the last couple of years you’d realise that Rupert has an agenda with this & editorial control would’ve stayed with him. Clearly Australia Network would become a mouthpiece for Limited News, rather than Canberra, if Sky Snooze “won” the contract.

    Jen13, The Australian said that Sky was “awarded” the nod twice. If you believe that, then clearly you’re on Limited News’ payroll.

    Anyone who wanted Sky to win the bid doesn’t seem to believe in free speech & democracy!

  17. Wow! I don’t believe it!
    An independent tender process twice awards the contract to Sky, but the Gov doesn’t like it so changes the rules!
    On reflection nothing this inept government does should surprise anyone.

  19. Quite right, too. The process has been shambolic but it should never have been put out to tender in the first place. Why on earth would a govt place such an awesome propaganda tool into the hands of private enterprise?

  20. Having watched Australia Network while overseas, I’m glad it has stayed with the ABC. I would hate to think what News Corp would have done to the channel.

  21. @Alvin C – It’s only a 1/3 News Ltd company…

    Sky News Channel’s parent company Australian News Channel Pty Ltd is owned by British Sky Broadcasting, Seven Media Group and Nine Entertainment Co., each with a 33% stake in the company respectively.

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