KEY POINTS:
Media companies are resisting calls for a combined telecommunications and broadcasting commissioner to regulate the converging industries.
Ministry for Culture officials have opened a hornets' nest of ill feeling in their review of broadcasting regulations.
It is the first time in 20 years that the Government has considered pulling back from New Zealand's laissez faire broadcasting rules.
TVNZ and TV3's owner MediaWorks have called for radical changes including a Telecom-style break up of Sky TV and unbundling its sports rights.
But despite the tough talking against Sky, TVNZ and MediaWorks have joined Sky steering the bureaucrats away from a powerful regulator like the United Kingdom's Ofcom.
In a summary of submissions last week ministry boss for the regulations review, Jo Tyndall, said that most submitters supported some rule changes. The clear majority of submitters supported a converged regulator, looking after both telecommunications and broadcasting, the ministry found.
It is unclear if any government - whether led by Labour or National after the election - would support a tough regulator. Politicians from both sides have resisted regulations.
Under Labour the Government has cracked down on Telecom with the Telecommunications Commissioner and the Commerce Commission now playing a key role in the running of the industry.
According to a summary of the submissions there was a consensus that a converged regulator should not have both cultural and financial obligations. "Broadly speaking media companies were against media ownership rules of any kind while a number of consumers, though not all, were in favour," it said.
One of the few regulatory changes championed by Sky was to allow pay TV programmes to be given taxpayer subsidies.
