HE ABC will hold onto its prized international television service – and keep it in perpetuity – with cabinet last night ruling commercial broadcasters will not get access to the Australia Network service.The cabinet decision, taken while Foreign Minister Kevin Rudd was overseas, has enraged News Corporation, part-owner of Sky television, which had tendered for the Australia Network.

Communications Minister Stephen Conroy, who blamed leaks for what has become a compromised and botched multimillion-dollar tender process, said cabinet’s ruling was a ”policy decision” ensuring the Australian Network stayed permanently with the ABC.

The decision effectively brings the Australia Network quarrel full circle – with the service bouncing back to the ABC, wasting millions of dollars, and generating, in the end, unnecessary acrimony between the Gillard government and the Murdoch empire.

Angelos Frangopoulos, chief executive of Sky owner Australian News Channel, said Sky expected to be compensated for its participation in the $223 million tender. It was reported to be seeking up to $2 million.

Notwithstanding any of the above, it would appear that, under the ABC’s stewardship, we will continue to receive good coverage of the AFL in Asia. And that’s good for football.

• To read the full article, click here.
• To read an account in the Murdoch press, see the Herald Sun’s Julia Gillard defends network decision.