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

Telecommunications Services

23. Deputy Simon Coveney asked the Minister for Communications; Energy and Natural Resources the way he intends the facilitate the rollout of a commercial digital terrestrial television platform here in view of the break down of the tendering process in recent weeks [23543/10]

Deputy Eamon Ryan: Part 8 of the Broadcasting Act 2009 provides for the development of digital terrestrial television, DTT, in Ireland and for the closure of the national analogue TV network. In addition, the 2009 Act requires the Broadcasting Authority of Ireland, BAI, to provide for the development of commercial digital terrestrial television services.

As the Deputy is aware a competition for a commercial DTT service provider was initiated by the Broadcasting Commission of Ireland in 2008. Three applicants were shortlisted. In July 2008, the BCI announced its intention to enter into negotiations with Boxer DTT Limited, the highest placed consortium. Boxer withdrew from the process in April 2009. As a result, negotiations commenced with the next placed bidder, the OneVision consortium.

In April 2010, BAI withdrew the contract offer from OneVision as that consortium was unable to reach agreement with the network operator, RTÉNL for the provision of transmission services. Following this, the BAI offered the contract to the third place consortium, Easy TV in May but, as the Deputy is aware, that consortium declined the offer.

I regret that the BAI process did not result in a commercial DTT operator as it would have delivered additional consumer choice. As a result of the outcome of the BAI’s commercial DTT process, I am in detailed discussions with the BAI, ComReg and RTE to consider the broadcasting, telecommunications and spectrum policy issues that arise. Meanwhile, it is important to note that commercial DTT is not essential to provide for analogue switch-off. It is the transition from free-to-air analogue to free-to-air digital that will yield the digital dividend. RTE’s plans for the national DTT service are advancing.

In this regard, I signed an order, SI 85 of 2010, under section 129 of the Broadcasting Act 2009 requiring RTE to launch its DTT service to approximately 90% of the population by 31 October 2010. RTE advises me that it is on target to meet this date. The 2009 Act also requires RTE to provide the full national digital service by the end of 2011 or such date as I may specify. I have informed RTE that the date for the provision of a full national digital terrestrial television service is 31 December 2011. In conjunction with this, the memorandum of understanding I signed earlier this year with the United Kingdom will facilitate co-ordination around the roll-out of digital terrestrial television and analogue switch-off with Northern Ireland.

I would like to set out clearly today that we will be switching off our analogue system in the final quarter of 2012. I look forward to that event and the ability it gives us to get other broadband services and other service up and running, in particular across rural Ireland.

Deputy Simon Coveney: This is an issue we have been raising for about 15 months, ever since Boxer DTT Limited pulled out of the tendering process. People have been warning the Minister that this fiasco was likely to happen. The proposition for DTT in Ireland was that a commercial operator would provide channels on four of six multiplexes and that RTE would provide free-to-air channels on two of the multiplexes, providing eight to ten channels. The infrastructure to facilitate all of that was to be paid for by RTE and on the back of that it would get a revenue stream from a commercial DTT operator. That process has now collapsed.

I want to ask the Minister a number of specific questions. First, I agree with him that the focus must now be to ensure that we meet our legal obligations under the targets which have been set for analogue switch-off. If that means leaving a potential commercial operator for the current time then so be it. What is the Minister’s Department doing now to prepare the approximately 1 million people who receive their television service on an RTE analogue platform at the current time for the arrival of digital terrestrial television within 18 months? Some 22% of households or 32% of televisions are affected.

Deputy Eamon Ryan: We are progressing. We are starting the DTT service in October 2010, which is a crucial time. It will take time to test it and get it right before it is fully launched in a public way, that is, where we are pushing and selling it to the public. We are now on a tight time line. That gives us two and a half years from now before we switch off. It will be tight to get public awareness campaigns in place in order to inform people how it happens. Crucially, we have to first get the DTT service up and running. We had a series of meetings today and last week with RTE, the BAI and ComReg and we have set out a project management course, in terms of getting set top box regulations in place and clarity around which standards should be in place and what channels we will put on our public service.

When they are up and running we will engage in the very serious job of letting the Irish public know how it will be able to switch over. It is a two and a half year project. I very much regret that we were not able to get a commercial operator up and running, but given that we have not done so it is incumbent on us now to get our digital terrestrial service up and running, to let the Irish public know that and to see a whole range of enhanced services on it, such as higher definition television.

Deputy Simon Coveney: It is important that the Minister recognise that even though he is talking about DTT being made available from October 2010 onwards, the reality is that nobody will be accessing it from October. We do not even have set top boxes. We do not know what they will look like, how much they will cost, who will make them, who will provide them or who will install them. There is total uncertainty around how we can access digital television. Even though RTE has to have the infrastructure and capacity to broadcast digital terrestrial television from October to, potentially, 90% of the population, none of the 1 million or so people who will need to have DTT installed in their homes, ready to go by the time analogue switch-off happens, will have it in October. Let us not pretend that they will. At best, they will potentially have it in the first quarter of next year. Would the Minister agree with me on that?

My final question concerns the cost of all of this. Is the Minister satisfied that RTE has already spent €40 million putting in place an infrastructure which it thought it would get a revenue stream from? The Minister can correct me if I am wrong, but I understand that it has a commitment to spend another €30 million. How does the Minister propose that be funded?

Deputy Eamon Ryan: The Deputy is correct; we start in October and it will take a number of months to get it technically correct, have all the standards in place and make sure the set top boxes work before it is properly launched widely to the public, although it will be available from October. I am told that set top boxes and other kit is ready to go. We needed clarity on that, and it was unfortunate we could not have it as the commercial bidding process was in train. As soon as that came to an end I brought in RTE, the BAI and ComReg. I set up a working group for us to get the technical standards and other arrangements in place in order that we will have digital terrestrial television in the autumn and we will meet, with absolute certainty, our switch-off schedule which is the end of 2012. We have until then to get the Irish public ready for the switch over.

In terms of the €40 million cost, costs are incurred. There are certain advantages if there is a not a full six mix solution; I would prefer if there was one but if there is not some of the transmission costs and technical arrangements are easier with just a public service offering. Crucially, the economic benefit to the State from us switching off our analogue system is a multiple of that cost, in terms of the new transition system. There is an initial cost to RTE but in the long run there is a real benefit for the country, in terms of switching on a digital system and switching off our analogue system, and RTE is aware of that.

Sam Russell wrote: »

The problem with STBs is that the SAORview spec calls for HD and some STBs have MPEG4 @ level3, not MPEG4 @level4. This will give trouble as they will work for the current broadcasts, but could not receive a broadcast in HD. RTE may decide to actually go with HD from launch.

Deleted User wrote: »

Next they'll be telling us that their advisors are warning that dtt is dangerous and banned in several countries... :rolleyes:

Mr. Browne (Carlow-Kilkenny): ...

The Bill will open the floodgates to a certain extent. We will be able to access many new stations if DTT comes into play. When I saw the letters “DTT” first, it reminded me of my youth when DDT managed to clear the country of all forms of parasites, fleas and crickets, which used keep everyone awake. DDT was magical. I hope that DTT does for television what DDT did for all the vermin that survived after the war.