At present, most of the television programmes that we watch in our homes are broadcast in traditional analogue format.

Over the next decade or so, the old analogue format will give way to digital broadcasting which, among other things, will provide better picture quality and allow more channels to be broadcast.

There may also be changes in the nature of transmission systems. Today, most New Zealanders receive television signals transmitted from high sites around the country using VHF or UHF radio spectrum. An increasing number of New Zealanders are receiving television services by way of satellite or cable.

The shift from analogue to digital broadcasting, of course, is not unique to New Zealand. All countries which broadcast television will be affected. But the timing of the change, and how this is managed, will vary from country to country in line with international trends and national circumstances and policies.

This paper addresses the question of a digital television policy for New Zealand. In particular, the paper considers what role the Government should have, if any, in facilitating digital television. For example, should the Government go further than ensuring that adequate radio spectrum is made available to broadcasters?

In answering this general question, it will be necessary to take into account a number of considerations, including:

• the Government's objectives for broadcasting, and wider goals such as promoting the "knowledge economy";
• the nature of broadcasting in New Zealand;
• New Zealand's regulatory framework for broadcasting, and communications more generally;
• decisions arising from the Telecommunications Inquiry, and a charter for Television New Zealand, where these have implications for the industry as a whole;
• the example and experience of other similar countries.

It is not the intention of this paper to provide a detailed technical discussion of digital television broadcasting. This can be found elsewhere. Nor is it the intention to base the discussion on the Government's ownership interests in Television New Zealand. The issues addressed in the paper essentially concern the Government's regulatory and policy interests in the broadcasting industry as a whole.

At this stage, the Government has not developed a firm view on the role it should have in relation to digital television. While this is not a matter of the utmost urgency, it is important for some key decisions to be made in the near future to allow broadcasters to plan with more certainty.

This paper is intended to advance that process. We would encourage all those with an interest in the topic to consider the issues discussed in the paper, and to make submissions so that their views can be taken into account as the Government develops its policy in this area.