Pay television and the ABC are in a battle to be allowed access to the spectrum allocated for community television as broadcasters prepare for a new era of scarcity due to the buying power of telephone companies.

Foxtel has made a submission to Minister for Communications Stephen Conroy, arguing that the SkyNews A-Pac public affairs channel should be allowed access to spectrum put aside for community television, because it is a “community-like” television channel.

Meanwhile, the ABC is understood to have argued that it should be allowed some of the community television spectrum to give it the space for two more television channels.

The battle emerges because despite the savings in spectrum as a result of the switch from analogue broadcasting to digital, the industry understands that Conroy plans to sell large amounts to the highest bidder, and  telephone companies needing it for mobile and wireless internet services will easily outbid broadcasters.

This means that broadcasters will be squeezed when it comes to expanding their offerings, let alone preparing for future developments such as 3-D television.

The result is pressure on the so-called “Channel A” space, which was provisionally allocated to Community Television late last year, to allow that sector to make the transition to digital broadcasting.

In an aggressively argued response to the Federal Government’s Green Paper on how to harness the benefits of spectrum freed up by the switch to digital broadcasting, Foxtel argues that spectrum the Government proposes to set aside for Community Television could support at least five television channels, possibly more, and should be used to carry not only existing community television, but also A-PAC and National Indigenous Television.

Meanwhile, the ABC is understood to have argued that the spectrum should carry Community television, National Indigenous Television, plus two more ABC Channels — ABC 5 and 6.

The Government’s Green Paper on “restacking” the spectrum to make maximum use of the Digital Dividend was released in January, and submissions closed last Friday.

Foxtel also argues for a “rational” pricing system for spectrum, particularly for that left in the hands of free-to-air broadcasters, and again gives a kicking to the Federal Government’s licence rebate to free-to-air commercial television broadcasters.

Spectrum has been used wastefully, Foxtel claims, because:

“The broadcasters have not run efficient, co-ordinated broadcasting networks in the past is because successive governments have allocated them too much spectrum, not charged correctly for it, protected them from competition and rewarded them for failing to meet their obligations.”

The claim by Foxtel that A-Pac is a “community-like” television service is another example of the growing battle between pay content providers and public broadcasters.

ABC managing director Mark Scott made a barbed remark at the Melbourne Press Club a few weeks ago about A-Pac. Noticing that A-Pac’s staff preparing to film his address, he  commented that he was always glad to contribute to the effort to see less New Zealand parliament on Australian television.

Meanwhile, Foxtel sees the ABC’s recently announced plans for a 24-hour television news service — ABC 4 as direct competition for its SkyNews service.

Foxtel hopes hopes to persuade the Department of Foreign Affairs and Trade to let it, rather than the ABC, run the Australia Network television service — the face of Australia’s soft diplomacy in the region.

The executive summary of the Foxtel submission can be read here.