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

Broadcasting Legislation.

48. Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the plans he has in place to facilitate the roll out of commercial digital terrestrial television, DTT, should the consortium (details supplied) fail to reach agreement with RTE and the broadcasting regulator.

Deputy Eamon Ryan: Part 8 of the Broadcasting Act 2009 provides for RTE to develop a free-to-view digital broadcasting service as a replacement for the national analogue television service offering access to RTE 1, RTE 2, TV3 and TG4 and for the subsequent closure of the national analogue television service.

The Act also provides opportunities for the development of a commercial digital terrestrial television, DTT, service. The Broadcasting Authority of Ireland, BAI, an independent regulatory authority, is required to provide for the development of commercial DTT services.

The BAI’s predecessor, the Broadcasting Commission of Ireland, BCI, initiated a competition for a commercial DTT service provider. The highest placed consortium withdrew from the process in April 2009. As a result, negotiations commenced with the next placed bidder, OneVision, which are still ongoing.

As stated in earlier replies to this question, I am not prepared to speculate or hypothesise on the outcome of what is a commercial licensing process which is a matter for the independent regulator, the BAI.

I have made it clear to the authority that I would like to see this process concluded as soon as possible so that clarity and certainty with regard to commercial DTT can be provided to broadcasters and viewers alike. However, the legislation does not provide for a role for me, as Minister, in the competition process for a commercial DTT service.

My priority, in accordance with national policy is to provide for the closure, in 2012, of the analogue free-to-view broadcasting service. The European Commission has set 2012 as the timeline for analogue switch-off across Europe and the Council of Ministers has asked member states to complete switch over by 2012 in so far as possible. It is my intention that this switch off will be no later than the last quarter in 2012. RTE is aware of this and is supportive of the deadline for analogue switch-off.

In this regard, and in the continuing absence of commercial DTT, I recently signed an order, SI No. 85/2010, RTE (National Television Multiplex) Order, under section 129 of the Broadcasting Act 2009 requiring RTE to launch a free-to-view DTT service to approximately 90% of the population by 31 October 2010.

The 2009 Act also requires RTE to provide the full national free-to-view digital service, capable of carrying RTE 1, RTE 2, TG4 and TV3, by the end of 2011, or such date as I may specify. I have informed RTE the date for the provision of a national service is 31 December 2011.

Additional information not given on the floor of the House

From a broadcaster perspective, the development of DTT services provides more for television viewers in terms of choice and services. The RTE multiplex has sufficient space for eight to ten TV channels, radio channels and electronic programme guides and the legislation provides for RTE to exploit space on the multiplex for commercial purposes. A second RTE multiplex, provided for under the 2009 Act, provides for RTE to roll out high definition, HD, services which will also be made available to TV viewers in Ireland on a free-to-view basis.

More significantly, there are considerable economic benefits for Ireland resulting from the switch off of the analogue broadcast services and the consequent release and reuse of this valuable spectrum, which is know as the digital dividend. The digital dividend is a clear enabler of economic and social growth. By extrapolating from a recent European study, the value of the digital dividend to Ireland is expected to be between €2 billion and €10 billion, over 15 years. In this regard, it is vital for Ireland’s economic health that this spectrum is released as early as possible.

Deputy Simon Coveney: I raised this issue more than a year ago because I was concerned the tendering process to provide a commercial DTT service was collapsing, following the pull-out of Boxer which had won the competition. I am not asking the Minister to interfere with the competitive tendering process. However, will he recognise the tendering process put in place two years ago to ensure a commercial DTT operation and to facilitate the viability of a free-to-air service will not achieve this?

It is my understanding the negotiations between OneVision and RTE have broken down.

An Leas-Cheann Comhairle: Does the Deputy have a question?

Deputy Simon Coveney: Please allow me to finish because this is important. The Minister bluffs every time he is asked this question, claiming he has no responsibility in the matter, and just sets the date for when RTE must do the business.

The first and second chosen bidders are out of the equation.

Deputy Noel J. Coonan: They are gone.

Deputy Simon Coveney: The remaining and only other bidder involves RTE itself.

When does the Minister intend to intervene to put a new policy structure in place to get commercial DTT multiplexes up and running? Will he continue to let the BAI handle the process while he takes a hands-off approach when everyone involved concedes it is collapsing?

Deputy Eamon Ryan: The legislation passed by this House gives the BAI that task. Yes, I would like to go back to 2006 and change the legislation

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Deputy Simon Coveney: It is the tendering process I am raising.

Deputy Eamon Ryan:

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but one cannot undo legislation is such a manner. It is not appropriate for the Minister to ignore the legislation and the authority the BAI has to implement the task set out for it. When it is unable to complete the task and decides what the process should be, I will happily look at taking other action. It would not, however, be appropriate for me to ignore the legislation in the middle of a process which has large commercial implications by taking over the role given to the authority by this House four years ago.

Deputy Simon Coveney: The Minister is saying that the process he set up through legislation

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Deputy Eamon Ryan: It was set up by the previous Government.

Deputy Simon Coveney: Yes, but the legislation in question is now the Minister’s responsibility.

The first two preferred bidders in the tendering process established by the legislation are out of the game. Will the Minister confirm he expects the BAI to move on to the third best bidder? It may not have been a chosen operator at all but, because it was the last man standing, it could potentially be the next operator of commercial multiplexes. That is not the way to roll out digital television. The Minister needs to ask the BAI if it is satisfied that it has exhausted the tendering process set up by the previous Government and how it should deal with the matter as time is running out. At what stage will the Minister have that meeting or will he continue to keep his head in the sand while the system collapses?

Deputy Eamon Ryan: I have had a series of meetings with all parties involved on the State side including the Broadcasting Authority of Ireland, the Networks company and ComReg, which has had a role in this on the spectrum side. At all stages I have done that on the basis of trying to get an outcome. I regret that that outcome has not come quicker and that the negotiations have taken so long. I have said that repeatedly in the House. However, my response cannot be to get involved in the middle of what could be a difficult legal and commercial process. That would only draw it out longer. I have said to all parties at a certain point that when it comes down to the commercial negotiations it is up to the BAI, RTE and the other parties to work through that. It would be wrong and improper if the Minister took on the negotiating position. It must follow the legislative course and if that comes to an end, we will act but we have made it clear that regardless of that process the switch off will occur at the end of 2012. That is certain, and that gives me confidence that we will get an outcome that will work.

Deputy Simon Coveney: There is no market for DTT without a commercial service.

Deputy Eamon Ryan: I am deeply unsatisfied with the delays that occurred but that is the difficult commercial world we live in and I would not make that any easier by stepping inside

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Deputy Simon Coveney: There is no market for DTT without a commercial service. The Minister knows that.

Broadcasting Services.

65. Deputy Mary Upton asked the Minister for Communications, Energy and Natural Resources if he will provide an update on digital terrestrial television here; when he expects the signing of the contract with a consortium (details supplied); the concerns he may have if the delays in implementing DTT continues; and if he will make a statement on the matter. [16629/10]

67. Deputy Olivia Mitchell asked the Minister for Communications, Energy and Natural Resources his plans to facilitate the roll-out of commercial digital terrestrial television services should a consortium (details supplied) fail to reach agreement with RTE and the regulator. [16623/10]

Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): I propose to take Questions Nos. 65 and 67 together.

Part 8 of the Broadcasting Act, 2009 provides for RTÉ to develop a “free-to-view” digital broadcasting service as a replacement for the national analogue TV service currently offering access to RTÉ 1, RTÉ2, TV3 and TG4 and for the subsequent closure of the national analogue TV service. The Act also provides opportunities for the development of a commercial digital terrestrial television (DTT) service in Ireland. In this regard, the Broadcasting Authority of Ireland (BAI), an independent regulatory authority, is required to provide for the development of commercial DTT services.

The BAI’s predecessor, the Broadcasting Commission of Ireland (BCI), initiated a competition for a commercial DTT service provider. The highest placed consortium withdrew from the process in April of last year. As a result negotiations commenced with the next placed bidder, OneVision. These negotiations are still ongoing. As I have stated in this House in reply to previous questions on this matter, I am not prepared to speculate or hypothesise on the outcome of what is a commercial licensing process. This is a matter for the BAI. I have repeatedly made it very clear to the Authority that I would like to see this process concluded as soon as possible so that clarity and certainty with regard to commercial DTT can be provided to broadcasters and viewers alike.

My priority, in accordance with national policy, is to provide for the closure, in 2012, of the analogue “free-to-view” broadcasting service. The European Commission has set 2012 as the timeline for analogue switch off throughout Europe and the EU Council of Ministers has asked Member States to complete switch over by 2012 in so far as possible. It is my intention that this switch off will be no later than quarter four 2012. RTÉ is aware of this and is supportive of the quarter four 2012 deadline. In this regard, and in the continuing absence of commercial DTT, I have recently signed an Order, Statutory Instrument 85 of 2010, under section 129 of the Broadcasting Act, 2009 requiring RTÉ to launch a “free-to-view” DTT service to approximately 90% of the population by 31st October 2010. The 2009 Act also requires RTÉ to provide the full national “free-to-view” digital service, capable of carrying RTÉ 1, RTÉ 2, TG4 and TV3, by the end of 2011 or such date as I may specify. In this regard I have informed RTÉ that the date for the provision of a national service is 31st December 2011.

From a broadcaster perspective, the development of DTT services provides more for TV viewers in terms of choice and services. The RTÉ multiplex has sufficient space for 8-10 TV channels, radio channels and electronic programme guides and the legislation provides for RTÉ to exploit space on the multiplex for commercial purposes. A second RTÉ multiplex, provided for under the 2009 Act, provides for RTÉ to roll out high definition (HD) services which will also be made available to TV viewers in Ireland on a “free-to-view” basis. More significantly, there are considerable economic benefits for Ireland resulting from the switch off of the analogue broadcast services and the consequent release and reuse of this valuable spectrum, which is known as the digital dividend. The digital dividend is a clear enabler of economic and social growth. By extrapolating from a recent European study, the value of the digital dividend to Ireland is expected to be between €2 billion and €10 billion, over 15 years. In this regard, it is vital for Ireland’s economic health that this spectrum is released as early as possible.

carrolls wrote: »

By extrapolating from a recent European study, the value of the digital dividend to Ireland is expected to be between €2 billion and €10 billion, over 15 years.:D

Take the lowest figure, €2 billion, thats €133 million per year.
How can that be achieved with 150,000 households paying €0 -€15 per month? If commercial DTT takes off, which is highly unlikely, the top dividend for the taxpayer will be in the low millions. Less than €5 million P/A after the commercial operator takes its cut.
He must be thinking of using the spare bandwidth for services other than broadcasting. Ryan is away with the fairies.:rolleyes: