DTT Commercial Multiplexes (was OneVision, Boxer etc...)

Agreed Lars, may be a good reason to consider such option, RTÉ is right I believe to wait for Pay DTT so as to avoid the Danish situation by only retailing Pay DTT boxes. That way gives Pay DTT a chance. I think even if Eircom balked, that UPC would be interested and probably happy to take in Setanta, TV3 and Arquiva leaving them with the multiplexing and RTÉ. So I think then u'd move MMDS customers to DTT and you'd see agressive marketing. They could rebrand as Easy TV alround, either Easy TV cable or Easy TV DTT, wouldn't be really in competition with DTT but complimenting it. They could advertise, 'Where do you live? Go for cable-(Urban areas) or DTT, (no cable available or inside/outside cable areas go for DTT?)'. Its better ROI than what they've done in Denmark with early MPEG2. Now see where its landed them! I guess we're tired of waiting. Personally I hope for MPEG4 and DVB-T2 given 2010 launch and boxes available by launchtime, and future proofing for viewers and more capacity whenever RTÉ upgrade. And also Arquiva have DVB-T2 experience from testing also.

Some questions relating to DTT were answered in written reply by the Minister in the Dáil on Tuesday

Broadcasting Services.

5. Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the position regarding the provision of commercial digital terrestrial television here; the negotiation between the Broadcasting Commission of Ireland and a consortium (details supplied); the timescale for the roll out of a free to air DTT service; and if he will make a statement on the matter. [35842/09]

Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): The Broadcasting Act 2009 provides for the development of digital terrestrial television in Ireland and for the closure of the national analogue TV network. Under this Act, RTÉ is required to provide a national ‘free to air’ digital terrestrial television system with capacity to carry RTÉ 1, Network 2, TG4 and TV3. This new service will eventually replace the existing analogue free to air television service. The legislation also requires the newly established Broadcasting Authority of Ireland (BAI) to provide for the development of commercial digital terrestrial television services. A competition for commercial multiplexes was initiated by the Broadcasting Commission of Ireland (BCI) in 2008 and is still ongoing. The contract has been offered to the One Vision consortium.

The BAI has taken over the role of the BCI in finalising this competition. The BAI, which is an independent regulatory authority, is responsible under the 2009 Act for the licensing and competition issues raised by the Deputy. While I have no direct function in these matters, I am concerned on policy grounds to see an early agreement on the provision of commercial DTT services and an early time path for the implementation of such agreement. My policy objective is the earliest possible switch-off of the analogue system thereby releasing valuable spectrum to enable Ireland to reap the benefits of the digital dividend.

I am informed by RTÉ that 13 sites have been DTT enabled to accommodate both the single free to air DTT multiplex and also the three commercial DTT multiplexes. This represents the most difficult and costly element of the build plan as it includes the main transmitter sites in Ireland. It also involves costs associated with replacing several of these masts to accommodate the commercial multiplexes. In relation to the timing of the rollout of the ‘free to air’ DTT service, the legislation provides that RTÉ must provide a full national DTT service by the end of 2011 or such later date as the Minister decides. RTÉ have not yet set a date for launching their DTT services but have indicated a preference for launching in parallel with a commercial DTT operator as the availability of commercial DTT is important to assist RTÉ in getting a return on their investment and to ensure adequate viewer choice in the digital era.

Broadcasting Services.

7. Deputy Deirdre Clune asked the Minister for Communications, Energy and Natural Resources the position regarding the provision of commercial digital terrestrial television here; the further position regarding the ongoing negotiation between the Broadcasting Commission of Ireland and a consortium (details supplied); the timescale for the roll out of a free to air DTT service; and if he will make a statement on the matter. [35550/09]

48. Deputy Jack Wall asked the Minister for Communications, Energy and Natural Resources the position regarding digital terrestrial television; when he expects to finalise the contract for DTT with a company (details supplied); his views on reports that television stations have reduced their stake in the company; the amount spent on DTT by RTÉ to date; and if he will make a statement on the matter. [35504/09]

Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): I propose to take Questions Nos. 7 and 48 together.

As I have already stated in reply to an earlier question today, the Broadcasting Act 2009 provides for the development of digital terrestrial television in Ireland and for the closure of the national analogue TV network. Under this Act, RTÉ is required to provide a national ‘free to air’ digital terrestrial television system with capacity to carry RTÉ 1, Network 2, TG4 and TV3. This new service will eventually replace the existing analogue free to air television service. The legislation also requires the newly established Broadcasting Authority of Ireland (BAI) to provide for the development of commercial digital terrestrial television services. A competition for commercial multiplexes was initiated by the Broadcasting Commission of Ireland (BCI) in 2008 and is still ongoing. The contract has been offered to the One Vision consortium.

The BAI has taken over the role of the BCI in finalising this competition. The BAI, which is an independent regulatory authority, is responsible under the 2009 Act for the licensing and competition issues raised by the Deputy. While I have no direct function in these matters, I am concerned on policy grounds to see an early agreement on the provision of commercial DTT services and an early time path for the implementation of such agreement. My policy objective is the earliest possible switch-off of the analogue system thereby releasing valuable spectrum to enable Ireland to reap the benefits of the digital dividend.

I am informed by RTÉ that 13 sites have been Digital Terrestrial Television (DTT) enabled to accommodate both the single free to air DTT multiplex and also the three commercial DTT multiplexes. This represents the most difficult and costly element of the build plan as it includes the main transmitter sites in Ireland. It also involves costs associated with replacing several of these masts to accommodate the commercial multiplexes. RTÉ has informed me that the accumulated capital expenditure on DTT as at 30th September 2009 is €31.5m approximately.

In relation to the timing of the rollout of the ‘free to air’ DTT service, the legislation provides that RTÉ must provide a full national DTT service by the end of 2011 or such later date as I decide. RTÉ has not yet set a date for launching their DTT services but have indicated a preference for launching in parallel with a commercial DTT operator as the availability of commercial DTT is important to assist RTÉ in getting a return on their investment and to ensure adequate viewer choice in the digital era.

Elmo wrote: »

He repeat what he said why didn't he take all 3 PQs together?

The first question was one of five nominated for priority to be answered orally in the Dáil by the Minister on Tuesday but due to the resignation and election of the Ceann Comhairle no time was available so all question were published with written answers, because of this the opposition were unable to ask any supplementary questions or debate with the Minister.

Elmo wrote: »

Anyone got a copy of RTÉ NL Annual Report?

2008 RTÉ Annual Report here, RTÉ NL is a wholly-owned RTÉ subsidiary company.

scath wrote: »

For RTÉ to go ahead in my view would not attract enough viewers to switch over to DTT until they had to.

UNTIL THEY HAVE TO. WE ALL WILL HAVE TO. END OF. I have being saying this for years, if RTÉ are to continue to wait for the commercial operator RTÉ NL will continue to be forced to upgrade for the 2012 ASO. This won't be good for RTÉ and why should RTÉ let a commercial operator benefit from their upgrades? After all it is a public network.

People who aren't interested in pay TV aren't interested RTÉ will have to pay for their STBs for switch over this means at least 200,000 Free or Subsides basic STBs.

One Vision is only interested in one thing and that is ARPU.

Multiroom, oh that is extra, triple play with eircom brilliant sure it brings up or ARPU, sports, movies sure keep our ARPU up it looks good for are shareholders.

And you can be guaranteed that Digital will only be rolled out as OneVision, forget about your DigiFreeView option even being marketed. I wouldn't be surprised if RTÉ, TV3 and TG4 are encrypted.

Elmo wrote: »

UNTIL THEY HAVE TO. WE ALL WILL HAVE TO. END OF. .

Of course, but I think end of June 2010 is reasonable, with a plan D. Plan A, pulled out, Plan B is negotiating. That means by end of 2010 we have launch of Pay TV.

I wouldn't say its necessarily true that many people won't be interested in Pay TV via aerial. Many of the technology illiterate either can't be bothered with what arent' familiar with, ie satellite. If they aren't familiar with it with regards to aerial, except via overspill it was never an option. Don't underestimate the the power of impulse purchase. One thing it could affect is pubs down the country, because if subscription TV becomes pretty much most households then inevitably some lads will get together at each others houses with drink to watch a match instead of going to the pub, and then go out later.

Elmo wrote: »

I have being saying this for years, if RTÉ are to continue to wait for the commercial operator RTÉ NL will continue to be forced to upgrade for the 2012 ASO. This won't be good for RTÉ and why should RTÉ let a commercial operator benefit from their upgrades? After all it is a public network.

You're assuming no-one will be interested in Pay DTT and they'll be waiting til 2012. But I would be confident that Sky would be more than happy to rent capacity and come out with a subscription card for DTT, likewise UPC, Setanta, ESPN. They'd have pay license costs to the BAI, make some Irish programming probably-why not, Sound & Vision Fund, news etc, and pay RTÉ NL carraige costs also. so commercial operators wouldn't be benefitting from RTÉ's upgrades without paying rental for usage for the public network.

The reason I think, RTÉ waited is exactly because there was no material benefit for them to upgrade until now, then they had no commercial partner, and no ASO on the horizon. The model of selling the network was the wrong model, it should have been a flexible model that allowed RTÉ take on a co-investor rather than sell the infrastructure for a minority stake. The legislation was all wrong. The politicians were at fault totally back in 1999 when the economy was in full flow. Then after DTT didn't work out, we went for a trial when in fact the trial should have strarted after the DTT process failed in 2002/3, so that a fair wind would have been there for DTT in 2006 for launch from the economic point of view. This basically was the a government Dept, in 1999, 2 depts, this time Comms, waiting just like in 1999 to get clarity from the UK market. In this time Freeview UK picked up the ball after ITV Digital, they didn't wait around long unlike us, did they? About 18 months was it?

Elmo wrote: »

People who aren't interested in pay TV aren't interested RTÉ will have to pay for their STBs for switch over this means at least 200,000 Free or Subsides basic STBs.

Its hard to determine how many people aren't interested in pay TV down the country. Some of those for sure wouldn't be bothered, but there are some who might get it, but don't really know anything about satellite or cable and don't want to be getting dishes up on their house, too much hassle. They know aerial, and it'll be simple for them, so they may well become Pay TV subscribers, some of them.

The point is to avoid free to air stb on the market by going for official pay TV only stb's either subsidised by Dept of Social in the case of the aged or social welfare recipients. Its all about making the business sustainable which is in RTÉ's ultimate best interest, ie If a small number of consumers go for FTA set top boxes or just digital TVs, then so be it but unsuccessful Pay DTT won't give RTÉ a good return which is why RTÉ are waiting. I guess RTÉ etc can't stop FTA DTT boxes being retailed by retailers etc, but promoting them wouldn't be in RTÉ's interest.

The sales line in my mind would be, why get FTA now and then have to pay for a subscription box later. Own the pay TV compliant stb now and subscribe any time u want to if not now, then later.

Elmo wrote: »

One Vision is only interested in one thing and that is ARPU.Multiroom, oh that is extra, triple play with eircom brilliant sure it brings up or ARPU, sports, movies sure keep our ARPU up it looks good for are shareholders

That's also good for RTÉ then rental costs it gets from Onevision, if Onevision doesn't go well, then RTÉ's revenue to pay back for loans for DTT infrastructure build is difficult isn't it putting them under more strain, possible a help out from the taxpayer or privatised? That's why it would be less riskier to have Arquiva invest in a joint company with RTÉ so as to give defray RTÉ NL from taking out a big loan for the DTT infrastructure.

Seeking, good APRU, I wouldn't blaim them for this. I'm not against enterprise here. Its getting the mix right. Because our population is small, big FTA depends on UK broadcasters paying the premium to make a decent sized Freeview, on its own its not sensible economically for RTÉ to launch ahead of pay DTT because its their network infrastructure and they want the best return on it for the benefit of the finances of RTÉ to spend later on HD channels. That has to be taken into account to. You can't just think of the viewer, we don't have the luxury the UK has of market size, population, amount of home content available.

They are not a charity. Of course we'd like a strong Freeview mix, but the reality is we haven't enough Irish programming and content channels for that.

What may emerge is an alternative to UPC that'll kick the hell out of UPC. That is where UK broadcasters see more benefit paying to be FTA on DTT because every TV unlike cable will have it. They might have more to gain from that than the royalties from UPC. That'll mean you'd see UPC's package resemble Sky's closer with similar charges and content between platforms instead of the current discrepency between satellite and cable in Ireland where its charged on cable and free on FTA satelite.

There's nothing to stop Onevision providing quite a few free-to-air channels if broadcasters from the UK want that and pay Onevision the premium that they'd otherwise get on subscriptions. There's no problem in Onevision and RTÉ agreeing to extend the Digiview brand to cover these so that Digiview covers all Irish Free-to-air channels.

Remember that APRU means jobs, possibly jobs in Ireland, more investment potentially from TV3, Setanta In Irish programming. Of course these are not guaranteed. But its good news for RTÉ and that does mean more Irish programming if pay DTT successful.

It ultimately does come down to money much like we like to forget about that in the interests of the viewer. But reality dictates that a mix is the best we can get, and the market dictates the need here for a better balance than in the UK DTT market. To my mind Top-up TV should have been launched at the same time as Freeview and together with the Top-UP TV box. Its ridiculous of the UK broadcaster in terms of license fee, to give Freeview precedence, a mix is much better because that gives everyone a fair crack of the whip. I'm certainly not in favour of all subscription as with cable. But all FTA isn't good for the economy either.

Elmo wrote: »

And you can be guaranteed that Digital will only be rolled out as OneVision, forget about your DigiFreeView option even being marketed. I wouldn't be surprised if RTÉ, TV3 and TG4 are encrypted.

I think they'll want to differentiate it for platform reasons. In the UK they are seperate. But you could be right about that. Again I couldn't disagree with it, because it saves RTÉ money if there is one brand. One can see the logic in it.

Onevision Free
Onevision Packagename

I doubt they'll encrypt RTÉ unless it was for the benefit of the TV license. That wouldn't go down well with the public, I doubt that that will happen, because of the uproar they'd be with people comparing it with the Uk situation. Can you imagine the complaints that would be going to politicans, and Eamon Ryan would get it in the neck and would have to direct RTÉ under pressure from colleagues to unencrypt.

Anyhow, RTÉ will be in charge of their own Mux because it was gifted to them and they don't need a license from the BAI as far as I understood legislation so they won't have to encrypt.

Since RTÉ is not part of the Onevision consortium it then wouldn't want to encyrpt. RTÉ launching a Freeview brand in advance simply isn't economically sensible for it.

I think the main thing now is the deadlines, that consortium 3 gets offered in January then must conclude by end of June. July you go to broadcasters direct ie Sky, UPC since the other model would have failed. It wouldn't be feasible to restart the whole process again. Basically it just means if Easy TV weren't interested then go to the seperate multiplex model (change the model) since players who turned down the previous plan surely wouldn't be interested to bid again. No point any more waiting around with ASO now playing a factor. DTT->ASO needs at least a year to bed down. That's my view anyhow.

You're assuming no-one will be interested in Pay DTT and they'll be waiting til 2012. But I would be confident that Sky would be more than happy to rent capacity and come out with a subscription card for DTT, likewise UPC, Setanta, ESPN. They'd have pay license costs to the BAI, make some Irish programming probably-why not, Sound & Vision Fund, news etc, and pay RTÉ NL carraige costs also. so commercial operators wouldn't be benefitting from RTÉ's upgrades without paying rental for usage for the public network.

They will be waiting on till 2012, I am going to be pesimistic and state that it isn't people but One Vision/BAI/RTÉ/DCERN that will be the problem.

Sky will not rent capacity on RTÉ NL, RTÉ NL will collect subs from cust for Sky and just like UPC, they will get 10% of these subs which I suppose is payment.

BAI have no interest in regulating TV3, City, Setanta what makes you think they have any interest in regulating Sky.

Any satellite service can already get Sound and Vision Fund as long as the unencrypt those TV shows. Setanta, C4, BBC have already received funding.

The BAI could licence FTA channels which would pay to be on RTÉ NL just as TV3 and TG4 do at the moment and RTÉ NL could provide a commercial pay service for sports and movies. Giving subs to Discovery, Viacom etc doesn't help the Irish industry.

You makes some good points Elmo. I guess pay DTT is challenging, but one end that you aren't factoring in is laptop DTT ie usb DTT. Subscriptions on that still have an advantage over mobile broadband contention rates. Okay that is shrinking, TV license etc, TV on your mobile. Its challenging.

I guess dates need to be set by the BAI now otherwise danger of us not making ASO. Sky in the UK were looking for Sky Picnic to replace their Freeview slot. So why not in Ireland, obviously, retailers would sell the card subscriptions as Sky do in shopping centres, you suggested the other situation with RTÉ NL collection on their behalf.

I think we're gonna see something happen anyways. I think if consortia pull out then the BAI need to open it out to interested parties or RTÉ to get on with it. One thing for sure, we need a definite 2011 launch commitment by RTÉ and to make money they need to offer Pay DTT for sports, movies etc.. I agree, problem is no deadlines. But the Minister has the power to set it and has ASO pencilled in for end of 2011 meaning RTE would have to go ahead themselves from January 2011. I clarity is needed from July 2010 on and RTE need to put the stb order in themselves at that stage if consortia don't go ahead. Then they can see do they want to allow consortia sell directly, collect subs, or have their own brand. They should be able to discover that in negotiations and put in the stb order anyhow. So beginning 2011 launch should be possible.

But deadlines do need to be set in the background for scenarios. Hopefully One Vision sign off and we're ready for take-off in 2010. They might aswell go for Christmas launch rather than September when people are coming back from holidays but start pre-launch in September.

We'll see what'll happen. And you didnt do bad on the detail either for the hour u replied. Return on investment is more important for RTÉ really which makes pay DTT a requirement even if that return is small its something, better than nothing. Sky won't mind trying to grab a few customers on DTT also, they're open to multiplatform & have stated so before and in recent times. They're on UPC. No reason they won't be on DTT either.