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

scath wrote: »

http://www.advanced-television.com/2009/nov16_nov20.htm#t2 which I spotted at the DVB.org-Ireland section. We were all wondering weren't we. I guess the BAI have learned, have September 2010 in mind & don't want to get more slack for letting it drag on,not going to wait 9 months again. I'm guessing that Eircom's takeover by STT means Eircom management may have to confer with STT, on this for a decision. I wonder what Arquiva will do if Eircom say No. I wonder will Aquiva just up there stake, pay it and charge Eircom multiplexing or will they put their lot in with Liberty Global (UPC parent). I would expect that Easy TV should be in a position to decide quickly given RTÉ would be a direct partner and there wouldn't I expect be the €20 million bond to be an issue given RTÉ would be directly involved. I had suspected that being an issue and had suggested to the stakeholders, Arquiva taking a stake in the network in a joint venture vehicle with RTÉ NL rather than the bond. Maybe RTÉ mightn't be interested in that. Who knows. Maybe UPC would suit them better. This would certainly be good for UPC if Onevision dropped out, because UPC could drop MMDS, go for a likely more successful DTT product. I guess they would probably streamline the pricing so that cable wasn't competing with DTT. Of course it wouldn't be good for competition. What UPC could do is use the cable capacity to drop cable TV in favour of faster broadband speeds and just go totally with DTT subscription against Sky. Wouldn't be great for competition but in a way it makes more sense economic point of view to have 2 strong players rather than 2 strong and 1 weak. At least UPC would have an interest DTT pay being successful.


I guess we'll get clarity then by Christmas. I guess that if it went to Easy TV that given RTÉ's involvement in Easy TV, that they would be in a position to progress at speed given they know the ins and outs.

Digital Terrestrial Television.

34. Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the position regarding the provision of commercial digital terrestrial television here; the future 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. [43460/09]

35. Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources his views on the EU Commissioner for the Information Society’s call for EU countries to expedite the move to digital terrestrial television; the reason for his failure to ensure the signing of a contract to deliver DTT on time; and if he will make a statement on the matter. [43549/09]

Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): I propose to take Questions Nos. 34 and 35 together.

The Broadcasting Act 2009 provides, consolidates and updates broadcasting legislation. Part 8 of this Act replaces and updates the Broadcasting (Amendment) Act 2007, which provided for the development of digital terrestrial television in Ireland and for the closure of the national analogue TV network. Under the 2009 Act, RTE continues to have responsibility for the provision of a national free to air digital terrestrial television system with capacity to carry RTE 1, Network 2, TG4 and TV3. This new service will eventually replace the existing analogue terrestrial television service.

The legislation also requires the newly established Broadcasting Authority of Ireland, BAI, to provide for the development of commercial DTT services. The BAI, which is an independent regulatory authority, is responsible under the 2009 Act for the licensing and competition issues raised by the Deputies. In this regard, a competition for commercial multiplexes was initiated by the Broadcasting Commission of Ireland, BCI, in 2008 under the 2007 Act 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. While I have no direct control over or 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 achievement of the earliest switch-off of the analogue system, thereby realising valuable spectrum to enable Ireland to reap the benefits of the digital dividend..

With regard to the roll-out of DTT services, I am informed by RTE that, to date, 13 sites have been DTT enabled to accommodate both the single free to air DTT multiplex and also 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 replacing several of these masts to accommodate the commercial multiplexes. With regard to the timing of the roll-out of the free to air DTT service, the legislation provides that RTE must provide a full national DTT service by the end of 2011 or such later date as I decide. RTE has not yet set a date for launching the free to air DTT service but has indicated a preference for launching in parallel with a commercial DTT operator as the availability of commercial DTT is important to assist RTE in getting a return on its investment and to ensure adequate viewer choice in the digital era.

Regarding the target date for switching off the analogue terrestrial television services, the Broadcasting Act 2009 provides for me to establish a date or dates for analogue switch off, after consultation with RTE and the BAI, on, among other things, the availability of digital television services in the country, the availability of suitable televisions and other receivers and the take up of these services. I am in close contact with the BAI and RTE on progress in these areas. The European Commission has set 2012 as the timeline for analogue switch off throughout Europe and recent papers from the European Commission are requesting that member states should endeavour to adopt 1 January 2012 as the target date. I consider that it is in the best interests of Ireland to switch off the analogue services in 2012. In this regard, I have established a group to advise me on planning for analogue switch off and I expect to report on this in the first quarter of 2010.


Deputy Simon Coveney: To say the Minister’s attitude towards this issue has been lethargic is an understatement. The response when I tabled the same question on 13 October was more or less the same with a few slight amendments, which do not offer anything new. We do not know whether licences will be auctioned or will be granted on a roll-over basis and we do not know anything about the spectrum allocation generally, which also needs to be addressed by the Minister in the context of the renewal of existing licences. Since the Boxer consortium pulled out of the process for the commercial provision of DTT services on a multiplex structure that RTE was to provide through its network, there has been little or no progress. The Minister said negotiations are ongoing between One Vision and RTE on the one hand and One Vision and the BAI on the other.

Will the Minister please outline some dates in order that people’s attention can be focused and a target date is ensured by which the switch off of the analogue service will be facilitated? Does the Minister agree with RTE that a free to air multiplex service should be launched at the same time as the three commercial multiplexes, which, hopefully, One Vision will provide?


Deputy Eamon Ryan: I, too, have been deeply frustrated about the delays. It is not a lack of ambition or intention on my part that has delayed the process. However, a process is set out in the 2007 Act, which was adopted by the 2009 Act, and we must follow it. The process will comprise a free to air service and the commercial multiplex. The contractual arrangements for the multiplex must be negotiated between the BAI and the commercial operator and between the operator and RTE regarding the transmission network. Earlier this year, I indicated when the Boxer consortium failed that I was confident the second choice in the BAI process would get up and running. I had expected that the contractual arrangements would be much clearer by early autumn and it is deeply frustrating that the process has not led to a result. I cannot have direct control over this. I must be careful not to interfere with a process set out in legislation, but I have concerns about the delays and all parties should be aware of this.

With regard to the Deputy’s two questions, I have said to all the parties at each stage that the 2012 deadlines still holds. There is an urgency for us in switching off our analogue system to use the released spectrum for alternative uses, particularly in the broadband sector. That is an imperative and I am still looking to implement that deadline.

The Deputy’s second question related to whether it is best to launch a unified single service. That is the preferred solution but if we cannot achieve a satisfactory outcome in the current process and it cannot deliver something that is commercially viable for the operator, which meets the requirements set out in legislation, we will have to examine alternatives and we will find a solution that meets our objectives.


Deputy Liz McManus: The Minister is not inspiring confidence. I would like clarity on the deadline. The EU Commission has made it clear that the aim is to have analogue switched off by 1 January 2012 but the Minister has referred to 2012 in such a way as to imply this could happen some time that year and, therefore, this could happen at the end of the year. Were that the case, Ireland would be at a great disadvantage because the EU is moving ahead to ensure the exploitation of the digital dividend is realised for the economic benefit of those who can avail of it. There is an urgency, therefore, about this matter.

Is the Minister aiming to meet the deadline of 1 January 2012? What will be the nature of this process? The Minister is a key player, not a spectator. Will this process go on indefinitely or will a timeframe be set? Mr. Michael O’Keeffe, the chief executive officer of the BAI, stated in the newspapers in September, “Next month will be critical”. Next month in that context was October but it is almost December now. Were the critical actions taken in October or are we in a stasis, with no progress being made? What are the stumbling blocks?


Deputy Eamon Ryan: I would aim for the 1 January deadline if we could make it. When we have our system up and running, the switch off may give a commercial advantage. It may help the market to deliver but I cannot commit to this because we do not know yet. We have not signed off on the contractual arrangements for the commercial multiplexes. That is a deadline I will look to achieve but if it does not happen by 1 January, it will happen during 2012. There are complexities in that we will seek to co-ordinate our switch off with Northern Ireland for a variety of reasons. It will lead to much greater efficiencies in the transmission network and so on and the Northern Ireland authorities may not be ready for that date. We will have to negotiate that but we can only do so when we have a clear indication as to what platform will deliver the alternative television service to run that system.

I share the frustration with the delay. Negotiations are continuing. There have been extensive negotiations between RTE and the consortium but also between the Broadcasting Authority of Ireland and the consortium. As I am not party to the negotiations I cannot give details of them. I understand they deal with transmission costs, the nature of the consortium and how it is putting its own programme together. It is frustrating that the negotiations are taking so long. If it is not possible for us to achieve an outcome in this area the Broadcasting Authority of Ireland, BAI, must, by proper legal means, set its own deadlines with regard to how we move on to alternative solutions.


Deputy Simon Coveney: The Minister likes to paint himself as a helpless observer who is frustrated like the rest of us. He is the Minister. He has powers within the legislation to set timelines and deadlines. What happens, for example, if OneVision pulls out, as Boxer did last spring? We would have to start from scratch again. We warned about this in the spring when we said we were concerned about OneVision’s capacity to deliver. The Minister said he had full confidence it would happen. He also said RTE was required to produce free-to-air digital services by the end of this year, and not by the end of 2010. He said RTE would be required to proceed with free-to-air digital television regardless of whether there was a commercial element to the multiplexes or not. I disagreed with the Minister on that point at that time. He has now changed his position. He says the preference is to launch the free-to-air and commercial multiplex services at the same time because the only way to get people to buy into the switch-over is to give them something new.

The thing is drifting along and the Minister is not taking a grip of it. He is allowing someone else to deal with the problem. He has a legal obligation and the power to set timelines. Will he set a time within which OneVision, RTE and the BAI must come to an agreement, after which he will change the rules and find a different way to roll out digital terrestrial television, DTT, in Ireland? He needs to do that. Otherwise we will continue to drift and the deadline will continue to move beyond 2012.


Deputy Liz McManus: It is up to the Minister to set a timeframe. He is not convincing in saying the BAI should take total control, even if it is the negotiating body.

The Minister now says it will be up to the BAI to look at alternatives. He is the Minister responsible. Can he outline his Department’s view of the alternatives available if the current negotiations are not successful? Everyone knows about the disagreement about the tariff and this does not engender confidence. Clearly, the Minister has looked at options. Can he outline them, as well as outlining the timeline for the conclusion of the process?


Deputy Eamon Ryan: With regard to whether RTE should already have switched from analogue to DTT, we deliberately changed the legislation to give us flexibility in this regard and not to impose a legal requirement on RTE to switch off at the end of this year. I thought about the matter and considered it better to give a certain flexibility. This was fortunate in the event of what has happened, that is, a delay in the process, which no one wanted.

The Deputies seem to be saying that if the process is not working we should change the rules.


Deputy Simon Coveney: No, the Minister should set a timeframe and only change the rules if the parties cannot get things done in that time.


Deputy Liz McManus: The Minister raised the matter of changing rules.


Deputy Eamon Ryan: One must be very careful in that regard. When one is in a commercially contractual and legally binding process one cannot change rules half way through.


Deputy Simon Coveney: We are not half way through. We are into extra time.


Deputy Eamon Ryan: We are into extra time and I am far from satisfied


Deputy Noel J. Coonan: The Minister should not handle the ball.


Deputy Eamon Ryan: I am far from satisfied with the timelines that have evolved. That is a clear indication to the BAI that we need to seek resolution one way or the other. If we fail to reach a solution by one route, having gone through the proper legal process and procedures which are fair to all parties, we will find a resolution by other means.


Deputy Simon Coveney: What is the timescale? The Minister will not set one.


Deputy Eamon Ryan: No. I want a timescale which meets the objective of our being able to switch off in 2012. That is a very urgent timescale because it takes time to set up any alternative or new DTT service. The masts are built, by and large.


Deputy Simon Coveney: I accept that.


Deputy Eamon Ryan: The difficult infrastructural part is done. What must be agreed are the contractual arrangements for content provision.


Deputy Simon Coveney: What is the timescale for that?


Deputy Eamon Ryan: The timescale must be a matter of months if we are to reach the 2012 deadline.