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Issue 3: Analogue "Switch Off"
- It is expected that present analogue services will be replicated on digital platforms, with a period of "simulcasting" when both existing analogue and new digital transmissions will be available to viewers. The choice of either analogue or digital reception would allow viewers to purchase digital receiving equipment at a time of their choice, perhaps when an existing television set was to be replaced. This choice would, of course, only occur in areas where digital services were available.
- The operation of parallel analogue and digital transmissions in some areas will have added costs for broadcasters. At some stage it would therefore be desirable to discontinue analogue transmissions. Such a decision would normally involve an assessment of:
- the extent of direct viewer take-up of the digital technology;
- arrangements necessary to feed input signals to any remote, dependent translators;
- the present value of the existing transmitter and its remaining economic or technical life;
- the operational cost savings that are available from discontinuing analogue transmissions.
- From a viewer perspective, it is desirable to have a relatively long period of parallel transmissions as this allows a choice of when to invest in digital technology and minimises the potential for unnecessary expenditure. Decisions on when to invest in digital reception capability will be influenced by:
- the attractiveness of other, non-simulcast, digital programming;
- the availability and cost of set top boxes and/or digital receivers;
- the serviceability of the existing television receiver.
- Until a certain critical mass of viewers receiving digital transmissions is reached, broadcasters will have an incentive to continue analogue transmissions. Conversely it is difficult to foresee viewers purchasing digital equipment unless there are strong incentives to do so. In some cases, even once digital equipment is purchased, an analogue receiver may be relocated to another location (bedroom, holiday home etc). Many homes already have more than one analogue receiver.
- A key question for the Government is whether a date for the termination of analogue services should be mandated (and if so, when and on what criteria), or left to the industry to determine. A related question is whether, as in Australia, broadcasters should be required to "simulcast" in both digital and analogue formats.
- The rationale for Government action is that a clear termination date will:
- provide certainty for investment in digital services;
- set a limit on the cost of parallel digital and analogue transmission;
- encourage viewers to buy digital reception equipment.
- A disadvantage is that any termination date set now would be based on limited information and may, in the light of actual experience, prove to be impracticable or unnecessarily severe. There have been technical or policy problems associated with virtually every implementation of digital technologies overseas, which have tended to push out projections for complete conversion to digital. Setting a termination date would also force viewers to invest in receiving equipment before a receiver would normally be replaced. This in itself may be difficult for some sections of the community. Legislation would almost certainly be needed to enforce a termination decision. Most governments overseas have turned away from setting a firm termination date, preferring instead to establish criteria or timeframes for the issue to be reviewed.
- It is noted that the majority of the TV One, TV2, TV3, and TV4 services utilise VHF spectrum with licences that are due to expire in 2015. Other services (Prime, TAB, Sky terrestrial) use licences which expire in 2010. The Government is presently considering what policies should apply upon the expiry of these rights. These considerations recognise that a decision on the individual spectrum bands should be made prior to expiry, typically five years before expiry, to allow for certainty and appropriate investment decisions. Consideration of terminating analogue services could be linked to such reviews, although there may still be inadequate information available in 2005 (five years before UHF rights expire in 2010) to assist in determining any analogue termination issues in relation to UHF licences.
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Should analogue services should be "switched off" at a certain date, and if so, what policies should apply?
3.1 Should a policy of mandatory termination be established, and if so, at what time should the Government consider establishing the actual termination date, and what criteria should be used in determining the date?
or
3.2 Should the termination issue should be left for industry to manage in light of their costs and viewer take up?
or
3.3 Should the termination issue be left open, to be reviewed at a future date, and if so when should such a review be undertaken?
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