Local TV Firm to bid for Digital Licence

DMC

Interesting article...

http://www.ireland.com/newspaper/finance/2002/0215/3543962338BWSOUTHCOAST.html

Local TV firm to bid for digital licence
By Jamie Smyth

Southcoast Community Television will apply for a licence to supply digital television services to 100,000 homes in Cork, Kerry and Waterford next month

The application, which may be replicated by local deflector firms in other regions, could pose serious competitive and technical challenges for rival TV services offered by Chorus and BSkyB.

The application will be submitted by Southcoast following a formal call for expressions of interest for regional licences, which will be made by the telecoms regulator, Ms Etain Doyle. A spokeswoman for the regulator confirmed yesterday these would be made before the end of the month.

If a licence is granted by Ms Doyle, Southcoast Community Television plans to target one of Chorus's core cable markets, Cork city, according to Mr John Hurley, chairman of Southcoast.

"We've had to keep out of Cork city due to exclusivity clauses [in cable operators' licences\] but, with very little extra money, we could provide a choice for these people," he said yesterday.

Southcoast currently offers analogue television services to 11,000 customers but plans to raise cash to fund a digital system that could reach about 100,000 homes in Cork, Kerry and Waterford.

Next week at Southcoast's annual general meeting, the management will propose changes to its structure to enable it to offer shares in the firm to customers who invest in its digital plans.

"Present customers will be able to invest in Southcoast," said Mr Hurley.

"People who buy a minimum amount of shares will also get a free television service."

Mr Hurley estimates the cost of providing a digital TV system would be €10 million.

The firm has already invested €7 million in technology and conducted trials with MDS International.

According to Mr Hurley, the greatest challenge facing Southcoast will not be financial but is more likely to be slow movement by the telecoms regulator to create a licensing framework.

"We've already submitted a comprehensive licence application with all technical details back in November 2000," he said. "As time goes by we could miss the boat. . . we've been put on the backburner because we are not large."

Mr Hurley said legal action had not been ruled out against the regulator's office if there was a further lengthy delay.

One of the main reasons for the delay in granting licences to local deflector firms will not be a factor by March 1st. Exclusivity clauses in NTL and Chorus's licences will be removed then following a deal struck between the two operators and the regulator over granting price increases for their services. This removes the threat of legal challenges from cable firms, something that occurred frequently throughout the 1980s and 1990s.

A failure by the Government to act against these firms provoked Chorus, formerly known as Princes Holdings, to sue the State for £100 million. It is understood this case has yet to be settled.

The success of local digital TV services would also hit the British satellite operator Sky. The firm recently complained to the regulator that its customers would be "adversely affected" by interference from local digital services.

These services would operate on the 12 GHz band, the same one on which Sky operates. Sky told the regulator that if local firms were allowed to use this band it could lead to interference and loss of service for customers.

But Sky's complaints are unlikely to be given much consideration by the regulator as the firm is not regulated in the Republic.

dmeehan

Can they legally broadcast on a frequency that another operator is using, even if they are nor regulated within the state?
(referrring to Sky, obviously)

DMC

I think we would have to look at the international frequencies arrangements for that, its peculiar that the ODTR would use the frequencies, when throughout Europe, they are already used for satellite.

Weird.

icdg

As we know these people have a lot of clout, managing to get a TD elected in Donegal (even if he has turned out to be one of the most lacklustre preformers in Dail Eireann).

It's well known that the government are no fans of Sky. They seem to have a begrudging approach to the company and a "how dare they, they should subscribe to Irish services" attitude towards anyone subscribing to Sky. Never mind that Chorus is 50% owned by AT&T and that NTL is registered in Delaware (though based in Cheshire). Even It'sTV will have significant foreign venture capital.

I can see one problem with this. If there is interference with Sky's services, how do they propose to recieve them, so they can relay them? And get a carrige deal from Sky? I can see legal action coming out of this. The BBC and ITV may have had a lax attitude towards these people, but Sky values every subscriber it can get, and if these people cause intereference with Sky's signals AND illegally carry Sky's channels without a carrige deal, I can see Sky going to court. Over the use of the band they may have no authority, but relaying their channels, they definitely do have a case.

Well whatever about the interference issues,Sky have some cheek complaining to a regulator that has no influence on their platform(except on Irish based outfits that want to join it).

I do have plenty of Salt and pepper here for a big meal, the main course of which will be my hat(its one I got in Oz a few years ago and I'm quite attached to it...;) )if they manage to get adequate investment to get this off the ground properly.

There are loads of headaches involved with a quasi MMDS operation like what SSCTV are proposing, that would give it serious disadvantages towards what "it's TV" want to do.

Considering the RED tape involved in these licence applications and the amount of hard cash needed for set up, and considering "it TV " are well down the road in the process,I'd be giving the SCCTV collectors the same treatment my Mother gives to the Jehovah's withness'es when they come a calling:D
She tells them she's heard enough good news...! and doesn't want to hear anymore.
mm

triple-play

ICDG moderator-

It's well known that the government are no fans of Sky. They seem to have a begrudging approach to the company and a "how dare they, they should subscribe to Irish services" attitude towards anyone subscribing to Sky. Never mind that Chorus is 50% owned by AT&T and that NTL is registered in Delaware (though based in Cheshire). Even It'sTV will have significant foreign venture capital.

This may all be true but don't forget that ntl and Chorus (and it'sTV when they get licenced) pay 3.5% of revenue (that's gross not net) to the ODTR as a spectrum licencing fee. In addition, ntl and Chorus pay Irish VAT on subscriber revenue (as will it'sTV).

In total the Cable & MMDS operators pay around 4m euro in fees and 24m euro in VAT every year. I'm sure they'd rather not so why should Sky get away without paying their far share.

Sky do not pay spectrum licencing fees or Irish VAT on Irish revenue. Any legal Irish operator, paying spectrum fees and VAT, should get priority over Sky. Sky can't have it every way... they should either pay their way or shut up moaning.