Digital TV

No Minister No Portfolio

Steve Maharey launches Free-to-Air Digital TV
Digital TV

The Labour-led government believes a transition to digital television is essential to securing viability of free-to-air broadcasting in New Zealand.

Our commitment is to ensure all New Zealanders are able to enjoy the benefits of digital television, and that public broadcasting, and local content, remain a strong part of the free-to-air mix in this country.

The government's plan paves the way for free-to-air digital television to begin reaching the homes of New Zealanders from 2007.

Free-to-air digital will be delivered through a jointly run platform called Freeview.

The Freeview group of broadcasters comprises:

Broadcast Communications Ltd will deliver and maintain the digital infrastructure.

To ensure there is an option for all New Zealanders, digital will be delivered through a hybrid model.

This will combine terrestrial, or land-based, transmitters – which reach around 75 percent of households initially - and satellite services, which offer nationwide coverage. By comparison with other OECD countries that have launched digital TV, this is a significant stage one rollout.

Rollout

Transmission by satellite is expected to begin early to mid 2007, with progressive introduction of terrestrial – or land-based - services to follow over a 12-18 month period.

It is intended that the terrestrial service - which can be viewed without a satellite dish – will be extended so it is more widely available, possibly to up to 90 percent of households.

The onus will, of course, be on broadcasters to make digital a compelling proposition, and on consumers to take it up.

As I mentioned earlier, the land-based infrastructure will be delivered by Broadcast Communications Ltd, using the towers it currently owns and operates for analogue television transmission.

Government support

The government has agreed in principle to provide up to $25 million over five years to assist with establishment of Freeview, with the bulk of costs to be met by broadcasters.

Broadcasters will also be granted free access to digital frequencies during the transition phase, with an estimated commercial value up to $10 million.

Freeview will operate on a non-profit basis, with open access for new services.

Why digital is better

For New Zealanders, digital will mean:

  • better pictures and sound,
  • more content to choose from and
  • crystal clear reception.

Free-to-air channels currently on analogue will be broadcast through Freeview, along with the introduction of new content and services as broadcasters develop them.

Digital television will remove the current constraint on the number of channels and amount of content.

New channels and services may include specialist channels, widescreen formats, and access to New Zealand’s television archive heritage.

Digital also offers the scarcely tapped potential of interactive services, which could include:

  • health advice,
  • education,
  • e-mail,
  • consumer services and
  • choice in coverage from sports events.

Connecting to Freeview

New Zealanders won't need to buy a new television to get Freeview – digital works on any colour television. But they will need a set top box, which is expected to retail at an initial cost of around $200.

This is a one-off cost, which I expect will reduce over time as more households move to digital.

As people replace their television sets in the future there will be models on sale that are digital capable, and won't require a set-top box.

The 'switch-off' of analogue television will occur in the next six to ten years, once the majority of New Zealanders have made the transition to digital.

Moving NZ into the digital era

The transition to digital broadcasting, and the convergence with other technologies, is essential to New Zealand’s broader economic transformation.

The findings of an independent study released today – and which Spectrum will expand on later – make a strong case for moving ahead now with the shift to digital.

As well as highlighting the benefits to New Zealand, including a net financial benefit of up to $230 million, the study reinforces the considerable risks of delaying the switch to digital.

The issue now is not whether to go digital, but whether we are getting there soon enough.

The 'joined-up' approach to digital – developed through the FreeView model - provides the best opportunities, not only commercially, but also in giving expression to our shared cultural identity and strengthening our broadcasting sector for the benefit of all New Zealanders.

Now that we have established a way forward, the government is keen to see the industry roll out digital as rapidly as possible.

The government has been impressed with the attitude and commitment of all of the broadcasters involved in Freeview, including their genuine commitment to delivering a high quality free-to-air service that works for all New Zealanders.

Steve Maharey
Broadcasting Minister
15 June 2006

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