By Keith Newman
Free-to-air broadcasters can begin investing tens of millions of dollars in new digital television networks following a Government guarantee on access to the required frequencies.
The Government has reserved the equivalent of two UHF channels for TVNZ, TV3 and Prime to broadcast existing television channels in digital format for
a transitional period of 10 years.
This will enable the broadcasters to continue to offer existing analogue programming while they build the equivalent digital networks.
How much they will have to pay for that right will depend on the average price paid for six nation-wide frequencies - each capable of up to four digital channels - when they are auctioned some time before next August.
As TVNZ chief executive Rick Ellis said last month, free-to-air broadcasters cannot afford to invest millions of dollars simply replicating in digital what they are already doing, without the ability to add services to cover the cost.
But TVNZ, TV3 and Prime will have to share the frequencies set aside by the Government for simulcasting, which will not be available for interactive services.
At the auction, they will have to contend with every other interested party for pay-TV, on-demand movie channels and on-line services to recover their investment.
A TVNZ spokesman, Liam Jeory, said a digital network might require 20 individual licences in 20 places for national coverage and at auction it would have been easy for someone to take key frequencies.
"The ability was there for someone who didn't want the DTT [digital terrestrial television] system to develop, or speculators, to stymie the network. You only have to buy certain bits to stop the development of the industry, for example the key frequency for Auckland," he said.
A Ministry of Commerce discussion document went out to the industry in November with a request for submissions. Cabinet considered 10 responses, including ones from Telecom and Sky.
The submissions ranged from broadcasters wanting free access to the spectrum to simulcast programming, through to an entirely free market approach.
Graeme Hunter, chairman of the Television Broadcasters Council, said the announcement was excellent news for viewers, who would benefit from exceptional picture quality, reception, colour and CD quality sound.
"This brings certainty to advance the major investment decisions required for digital TV."
