Free-to-air TV wins battle

By KARYN SCHERER

Free-to-air broadcasters have won a year-long battle with the Government over the allocation of spectrum for digital TV.

Communications Minister Maurice Williamson confirmed yesterday the Government would reserve a UHF network for each of the free-to-air players to begin simulcasting in digital as soon as 2001.

He also confirmed the Government had frequency set aside for a yet-to-be launched Maori channel to convert to digital.

The decision is a backdown from the Government's previous insistence that free-to-air broadcasters, inlcuding TVNZ, CanWest and Prime TV, would have to share two UHF networks for their digital simulcasts - a situation the broadcasters claim was neither technically possible nor desirable.

However, the networks have not yet won their battle over whether they will have to pay for the frequencies.

The Television Broadcasters Council, which was set up by the free-to-air networks last year to lobby the Government, has been arguing that New Zealand broadcasters, like their counterparts overseas, should be given the frequencies free of charge to help offset the cost of converting to digital.

To help its case, the council commissioned a report from the Institute of Economic Research which estimated that digital simulcasts are likely to cost the free-to-air stations an extra $150 million over the next decade without adding a single cent in revenue.

The Government has previously argued the networks should have to pay regardless, but made no reference to the issue in yesterday's announcement.

Nevertheless, the networks have welcomed the latest move, describing it as a milestone in the development of digital television in this country.

None of the New Zealand networks has yet decided when they will begin their simulcasts, although the Government has hinted broadcasts are likely to begin in 2001.

Its hands-off approach to the development of digital tv is in stark contrast to Australia, where legislation has already been passed requiring the main free-to-air broadcasters to simulcast in digital by 2001.

The Australian free-to-air networks have also been guaranteed no new free-to-air competition for at least seven years, unlike in New Zealand, where the Government is encouraging the possibility of further competition by auctioning up to five additional networks to the highest bidder.

The auction was to have been held in August but has now been tentatively rescheduled for June next year.

Meanwhile, the Government has also left open the question of how long the existing system is likely to continue, unlike Australia, which has already signalled it plans to switch off its analogue service in 2008.

Former TVNZ executive Bruce Wallace, who is now executive director of the Television Broadcasters Council, said yesterday the free-to-air networks believed it was more likely competition would come from further pay TV channels.

"We already have five free-to-air players and all the pay channels. In a population of three-and-half million people, that's asking an awful lot but at the end of day the auction process will decide that."