Patent royalty charges were payable to Amalgamated Wireless (A/asia) Limited, the basis being that the Company should charge the Class "A" companies not more than 5/- per licence per annum. Other arrangements were made in regard to Class "B" stations. In November, 1927, when the Commonwealth Government agreed to pay Amalgamated Wireless a proportion of the listeners' fees, a new basis was introduced covering the use of the Company's patents, both in the Class "A" and Class "B " stations, and also in wireless receivers. The agreement provided that Amalgamated Wireless (A/asia) Ltd. should be paid 3/- per licence fee per annum.
The Class "B" stations were permitted to broadcast advertisements or other paid publicity without restriction by the Department, but the extent of advertising by the Class "A" stations was limited in the Regulations to a total period not exceeding 60 minutes per day.
The licence period for a Class "A" or Class "B" station was five years from the date of issue.
The schedule hereunder shows particulars of the Class "A" Licences issued under the 1924 Regulations:-
|2BL||(a) New South Wales Broadcasting Co. Ltd||855||*350||5,000||21/7/29|
|2FC||(b) New South Wales Broadcasting Co. Ltd||665||*451||5,000||16/7/29|
|3AR||(c) Dominion Broadcasting Co. Ltd||620||*484||5,000||7/8/29|
|3L0||(d) Dominion Broadcasting Co Ltd||808||*375||5,000||21/7/29|
|4QG||Queensland Radio Service||760||*394.5||5,000||29/1/30|
|5CL||Central Broadcasters Ltd.||730||*412||5,000||13/1/30|
|6WF||(e) Westralian Farmers Ltd||690||*435||5,000||21/7/29|
|7ZL||(f) Tasrnanian Broadcasters Pry. Ltd||580||516||3,000||13/12/30|
|*2BE||Burgin Electric Co. Ltd||100||949||316||7/11/24||7/11/24|
|2GB||Theosophical Broadcasting Station Ltd.||3.000||949||316||13/5/26||23/8/26|
|2KY||Trades & Labour Council||1,500||1,070||280||20/5/25||31/10/25|
|2UE||Electrical Utilities Supply Co.||250||1,024||293||7/11/24||26/1/25|
|(a) 2UW||Radio Broadcasting Ltd.||500||1,124||287||13/2/25||13/2/25|
|(b) 2HD||W. W. Johnston||600||1,415||212||1/12/24||27/1/25|
|(c)3DB||3DB Broadcasting Station Pty Ltd.||500||1.179||255||18/10/26||21/2/27|
|8UZ||0. J. Nilsen & Co||500||930||322||6/2/25||8/3/25|
|4GR||Gold Radio Service||150||1,019||294||5/6/25||9/8/25|
|5KA||Sport Radio Broadcasting Co.Ltd.||1,000||1.199||250||26/8/26||25/3/27|
The success of the new scheme may he gauged from the fact that the listeners' licences increased from 38,000 in June, 1925 to 310,000 in July, 1929.
Notwithstanding the general success of this scheme, however, there were certain features in it which favoured some States more than others. For instance in Victoria, a much greater revenue was available for the Companies owing to the fact that 140,000 licences were issued. It was largely a matter of distribution of population. The cost of providing a service for a small population was almost as great as that for a much larger population, and the States of great extent of territory, such as Queensland and Western Australia, were more in need of relaying stations in the country districts than a small State like Victoria.
These and other factors relating to broadcasting led the Government to appoint in January, 1927, a Royal Commission to investigate broadcasting conditions throughout the States. The Commission made certain recommendations involving, among others, the pooling of a portion of the licence fees of all states with the object of guaranteeing a minimum revenue to the companies in each State. The Commission's report was considered exhaustively by the Government, and finally in October, 1927, a conference of all the Class "A" companies was called by the Prime Minister. The representatives were unable to agree on any common scheme, but the Government asked the Companies to consider the matter exhaustively with the object of arranging for co-ordination between the companies, so that the larger States could help the smaller States in providing a satisfactory service throughout the Commonwealth. Negotiations along these lines continued during the ensuing seven months, but in July, 1928, the Government decided that it was desirable to introduce a new scheme.