REGULATORS ADVISE GOVERNMENT ON SWITCH-OFF

THE MAIN industry regulators have issued a report advising the Government not to commit to a set cut off date for analogue television.
The advice is given on the basis that the Government’s targets are unlikely to be achieved in the timeframe envisaged.
Produced by the ITC, OFTEL and the Office of Fair Trading (OFT), the report is based on the responses to the Consultation Paper issued in May 2000: “ The availability, affordability and accessibility of Digital Television”.
The Government’s three main pre-conditions for the switch from analogue to digital are: ‘The Availability Test’ which states all viewers who can receive analogue television now (99.4 per cent) must be able to receive the main free to air channels digitally; ‘The Take-up Test’ which states 95 per cent of consumers must have a digital receiver in the home; and ‘The Affordability Test’ which says the switch to digital must be within reach of people on low or fixed incomes.
The Government expect these criteria to be met between 2006 and 2010, however the report found insufficient evidence to suggest that these conditions can be met in the given timeframe.
The Report states: “Despite this very positive start, estimates by consultation respondents suggest that market developments could drive the UK digital penetration figure upwards to reach between 55 and 79 per cent of homes by 2008, but not the 95 per cent needed to meet the Government’s availability test for switchover.
“In general, however, the consultation responses recognised that Government or regulators should not intervene unless absolutely necessary in such a new and vibrant market, especially one which was growing so positively at present.”
Responses to the paper include proposals for the Government to subsidise the costs of a simple-free-to-air DTT box or a simple idTV not associated with pay-TV. Suggested options include tax breaks for the industry, reduced VAT for consumers and a reduced television licence fee for digital viewers.
The report proposes further study of market developments in 2002 to assess whether or not the market has developed sufficiently without substantial intervention.
The ITC are to review their rules on cross-promotion, continue through the Joint Planning Project with the BBC, transmission operators and digital broadcasters to improve the core DTT coverage where possible. They will also investigate new techniques for increasing the DTT capacity available before switchover, and carry out economic forecasting studies on digital TV take-up.