A discussion paper released by Communications Minister Helen Coonan on Tuesday outlined a major overhaul of media regulation in Australia.
Under the plan, the current media-specific foreign ownership rules and newspaper-specific foreign ownership restrictions would be removed.
But proposals by foreign interests to directly invest in the media sector, irrespective of size, would be subject to prior approval by the Federal Treasurer.
The cross-media rules - which prevent an operator from owning television, radio and newspaper interests in one market - would be removed.
They would be replaced with a system whereby there would need to be a minimum number of commercial media groups in a single market - four in regional markets and five in state capitals.
Existing limits on broadcasting licences would be retained. That is, a maximum of two commercial radio licences in a radio licence area, one television licence in a licence area, and no more than 75 percent national television reach.
Regional stations would still be required to provide minimum levels of local content.
Media mergers would continue to be subject to the general merger provisions of the Trade Practices Act.
The plan offered two options for the timing of the media ownership reforms - next year or between 2010 and 2012 when the current analogue television system would be gradually replaced by a digital system.
The plan also pushes back from 2008 the proposed switchover date from analogue to digital TV transmission.
Under the plan, the ban on a fourth commercial television station would remain in place after the expiry of the moratorium on December 31.
"The government considers that a clear case for allocation of a new free to air commercial terrestrially-delivered network has not been established at this stage," the discussion paper said.
"The government considers that the existing arrangements for conventional commercial television are meeting the current needs of consumers in providing quality free to air television to Australian viewers.
"In addition, competing platforms such as subscription TV, the internet and mobile content platforms are providing additional and diverse services to viewers."
Two digital services on the broadcasting spectrum will be allocated in 2007 and may include subscription TV services, free to air narrowcasting services, as well as interactive and short video or datacasting services, delivered to fixed or mobile television receivers.
Commercial and national broadcasters would continue to be permitted to provide datacasting services on their existing digital spectrum.
The current restrictions on commercial TV broadcaster multi-channelling would be removed at the end of 2012, but could be removed earlier if the changeover from analogue goes well.
Restrictions on what sort of programs could be multichannelled would also be removed.
The government has also proposed a review in 2009 of anti-siphoning rules, which ensure free to air networks get first crack at major sporting events.
But from January 1 next year a "use it or lose it" scheme would be introduced for events on the anti-siphoning list.
Ministerial discretion would be retained in respect of any decision to remove events from the anti-siphoning list.