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08|11|05

Indicative cost and power consumption projections for digital switchover

In September 2005 the Government confirmed that analogue television signals would be switched off around the UK in a four-year rolling programme starting in 2008. By the end of 2012, UK terrestrial television will be entirely digital, with a net benefit derived thereafter from the release, auction and re-use of spectrum. At present, 63% of UK households watch digital television, with an additional 200,000 households moving to digital each month.

It is estimated that around 10% of UK households will be reluctant to move to digital voluntarily or may find it difficult to do so for a range of reasons. Ofcom today publishes research which sets out the associated cost and power consumption requirements for those who would not have switched. Key findings include:

• By 2008, average purchase price per television set-top box to view Freeview digital terrestrial television (DTT) will be around £26. Other digital television choices include digital satellite, digital cable and television over broadband services, where the set-top box can be provided for free or bundled together with a subscription to other services.
• Existing VCR video recorders will still be able to record and play back programmes which are broadcast digitally and DVD players will not need to be replaced. However, viewing one channel whilst recording another could require a new hard-disk recording device with an average retail price of £80.
• At a per-household average of two television sets and one VCR, indicative equipment purchase costs for all-digital television viewing over DTT together with simultaneous digital recording would be £132.
• Power consumption requirements for digital equipment will account for between £2 and £8 of average annual household electricity bills.
• Around 2% of roof-top aerials belonging to non-voluntary households will be at an average per-installation cost of £125. A round half of television set-top aerials (typically used with smaller portable televisions) will need replacement at a cost of £20-£40.
• Preparing the last 10% of households for all-digital television broadcasting between 2008-12 will cost £572 million, equivalent to 2% of UK consumer spending on all home entertainment equipment over the same period.
• The addition of these remaining households will not have a material effect on the UK’s total electrical power consumption needs, which will increase by 31MWh per day, equivalent to each UK household running a child’s nightlight for around ten minutes per day. Over time, as older equipment is replaced and technology becomes more power efficient, this differential is expected to move towards zero.

Ofcom commissioned Scientific Generics in April 2005 to analyse the cost and power consumption aspects of digital switchover. Its report is available from the Ofcom website at: http://www.ofcom.org.uk/research/tv/reports/dsoind/cost_power/

Ends.

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