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VLV pushes for launch of Free-to-Air Digital Satellite
23/6/05: Viewers, broadcasters, manufacturers and the nation would benefit from the immediate launch of an independent free-to-air digital television satellite service, says Voice of the Listener & Viewer (VLV), the independent watchdog representing citizens and consumers in broadcasting.
Government and Ofcom, the communications regulator, should work together to facilitate the immediate launch of an independent, digital satellite because it will benefit viewers - and every section of the industry, says VLV, by creating a competitive horizontal market in the provision and delivery of digital satellite services for the very first time. It would also facilitate the process of digital switch-over by removing some of the political pressures the Government will face if it is to meet its target of switching the UK from analogue to digital television by 2012.
Ofcom is given the duty in the 2003 Communications Act of ‘furthering the interests of consumers in relevant markets where appropriate by promoting competition’. VLV’s proposition, which takes note of this duty and the lack of a horizontal market in digital satellite services, is based on the findings of a seminar held by VLV in May, immediately after the General Election, when the Government’s timetable for digital switch over was confirmed. Ofcom sees the process of switch over starting in the west and north of the UK in 2008 then proceeding, region by region, until it ends in the Channel Islands in 2012.
One of the problems that the Government and Ofcom face, is that more than a quarter of UK households can not, and will not be able to, receive the free-to-air digital terrestrial television (DTT) service Freeview until after existing analogue transmissions are switched off. In the meantime, many of those who cannot receive Freeview on DTT will have to turn to BSkyB’s satellite service if they wish to watch the five public service broadcasters (PSBs) - the BBC, ITV, Channel 4, Five and S4C. Sky currently provides a digital satellite service which includes all the PSBs and many other channels on a free-to-air basis. But the Sky service is encrypted and to access it users must obtain a Sky ‘solus’ viewing card which guarantees them free access only for the next five years. Viewers who sign up today, therefore, could face the risk of Sky withdrawing its card, or of a change in its terms, just at the time that switch over is completed.
The launch of an independent free-to-air satellite would introduce for the first time, the benefits of a horizontal market with competition at every level of digital satellite delivery and access - the kind of horizontal market that is now serving DTT Freeview users so well.
Among the benefits that a competitive horizontal market would bring are:
2.1. For Viewers
* a choice of delivery platforms and service providers;
* potentially lower costs;
* a larger choice of channels and services;
* a wider choice of receiving equipment;
* freedom from dependence on a ‘solus’ access card which has no guarantee of renewal after five years or of the terms on which it might be renewed.2.2. For Broadcasters:
* the opportunity to appear on competing platforms;
* the opportunity to develop new software applications and services, including High Definition Television (HDTV).2.3. For Manufacturers and retailers:
* the freedom to develop a new market in digital receiving equipment.
2.4. For Government:
* easier implementation of its digital strategy because:
* it would remove the resentment many viewers’ currently feel because they are paying for the BBC’s digital channels via their TV licence fee whether or not they can access them;
* it would remove the controversy that would surround any forced migration to a DSat service provided by a commercial company, especially if associated with the loss of a solus card giving access to the Free-to-Air broadcasts of the public service channels of the BBC, ITV, Channel 4, Five and S4C.Commenting, VLV chairman, Jocelyn Hay said: "Digital technology is now the accepted standard for UK television in the future; it will not go away. It will bring many benefits for viewers and for the nation but there is a problem with distribution during the transition period in that more than a quarter of British households will not be able to receive the digital terrestrial free-to-air service Freeview.
"For most of these their only option will be to sign up to BSkyB’s free-to-air satellite service. BSkyB’s service is good but Sky is a monopoly supplier and at the present time Sky provides a ‘solus’ viewing card that guarantees free access only for the next five years. Many viewers are reluctant to sign up under these conditions and will continue to resist attempts to persuade them to switch to digital unless an independent alternative is provided.
"We have considered all the issues and believe that Ofcom, which has been given the duty in the 2003 Communications Act to serve the interests of consumers, where possible through competition, must work with the Government to facilitate the launch of an independent Free-to-air digital satellite service on which all the public service broadcasts and other channels can have a place. The success of the Government’s digital strategy could depend on it."
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Last modified: Thursday, June 23, 2005
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