ITC Notes

Digital Television

No. 32 DIGITAL TELEVISION


Background


Digital television allows for a substantial expansion of broadcasting services, bringing greater choice both of free-to-air and subscription or pay-per view channels. Services available include those currently broadcast in conventional analogue form – with the additional benefit that many of the programmes are available in the widescreen format. There is also the potential for a variety of new services, including broadcast multimedia and dedicated interactive services.

There are three principal platforms through which digital television services can be accessed – digital terrestrial, digital satellite and digital cable. In some areas, ADSL allows consumers to access video on-demand digital television services via existing telephone lines and a special set-top box.

Many of these new digital services rely on the use of a return connection from the consumer back to the service provider, typically provided by a connection to a standard telephone line, or via a cable television network. The use of an online connection from the digital receiver back to the service provider opens up the possibility for internet access to be made available via the digital receiver.

A simple example of a broadcast multimedia service is digital teletext, which can combine text, graphics, pictures and video, in a more attractive way than is possible with conventional teletext on the analogue services.
Examples of dedicated interactive services include:

· video-on-demand, where the viewer can select and authorise payment for premium programming such as movies;

· home shopping or banking services where the generic information is broadcast while personalised transactions are carried out online;

· games or educational information broadcast or made available online;

· an enhanced TV service in which supporting information is broadcast alongside the main TV service, or links are provided to online supporting information; an example of this type of interactivity is the ability to choose to view different camera angles of, say, a sports event, together with related news and information.

Other new services are also likely to be introduced as the technology and the market develop. For example, there will be services designed to manage hard disk storage in future digital receivers, enabling customised recording of programmes and data without the need for videotapes or for complex user interaction.

Receiving digital

· Consumers can buy an integrated digital terrestrial television set (idTV) which gives access to a range of free-to-air television and digital text services. An additional plug-in conditional access module (CAM) will be required to view digital terrestrial pay services available from ITV Digital. The reception of digital satellite or cable would require the addition of the relevant set top box.

· Consumers can buy an idTV which incorporates the conditional access and interactive software used by either the digital satellite or digital terrestrial operators. Changing from one provider to the other would currently require the consumer to add the relevant set-top box .

· Consumers can attach a set-top box, available from one of the digital platform operators such as ITV Digital, Sky Digital or a cable operator (digital cable and broadband internet services are offered by both ntl and Telewest), either to an existing television sets or to a new widescreen television.

Digital switchover

The Government has stated that the analogue signal will be fully switched to digital when three tests - relating to availability, affordability and take-up - have been met. Under the availability test, all viewers who can receive analogue television now (99.4 per cent) must be able to receive the main free-to-air channels digitally; under the take-up test, 95 per cent of consumers must have a digital receiver in the home; and under the affordability test the switch to digital must be within reach of people on low or fixed incomes. The Government anticipates that the tests to be met between 2006 and 2010. The ITC is discussing with government and with industry as to how best to facilitate switchover.








Digital terrestrial television (DTT)

The legislative framework for licensing DTT is set out in the Broadcasting Act 1996. The main provisions for DTT contained in Part I of the 1996 Act are as follows:

Digital terrestrial television is licensed under a two-tier structure whereby the carriage and delivery system, the multiplex, is licensed separately from the programme and additional services which are carried on the multiplexes.

There are six initial frequency channels, or ‘multiplexes’ available for DTT. Each is able to carry four or more television channels.

Existing terrestrial broadcasters were guaranteed capacity on a digital multiplex and as part of their licensing simulcast on digital their existing analogue broadcasts. On the rest of their capacity they are free to provide new services.

Any company is permitted to operate up to three of the six multiplexes.

A code relating to subtitling, audio description and signing on digital programme services has been published by the ITC (see ITC note 36 for details).

Of the six available multiplexes, two are wholly reserved by government for existing broadcasters. The first is dedicated to BBC services. The second multiplex is reserved for ITV licensees, Channel 4 and the public teletext service. ITV and Channel 4 have formed a separate operating company, Digital 3 and 4 Ltd, to run the multiplex. Channel 5 and S4C in Wales have capacity on the third multiplex which has been licensed to SDN Ltd, which also carries some Gaelic programming in Scotland during peak hours.
Award of the multiplex service licences
Digital multiplex licences are awarded for a 12 year12-year licence term. For the first term of these licences no payment to the treasury is required because the Government believes this would be a deterrent to investment in digital terrestrial broadcasting. However, from the second licence period payments based on a percentage of revenue earned from the use of the spectrum, in terms of advertising, sponsorship, subscription and pay-per-view revenue, could be payable. Each of the digital terrestrial multiplex services began broadcasting in November 1998.
Following the demise of ITV Digital during 2002, the ITC re-advertised licences for Multiplexes B, C, and D. Multiplex Service Licence B was awarded to the BBC, and Multiplex Service Licences C and D to Crown Castle. The two new licensees have collaborated to provide the Freeview service which launched on 30 October 2002, offering a wide range of free-to-air television and radio channels.

Digital terrestrial programme licences
Digital terrestrial programme licences are available to any applicant who is a fit and proper person and is not disqualified by virtue of the ownership restrictions in Schedule 2 of the Broadcasting Act 1990, as amended by the 1996 Act. The holder of such a licence will only be able to provide a programme service through a contract with a multiplex provider and subject to the multiplex provider’s licence conditions.

Digital satellite television

Digital satellite operators under the same legislative framework for licensing on analogue satellite services. Sky Digital began broadcasting a digital service in October 1998 and provide more than 250 television channels.

Electronic Programme Guides

Digital television platform services facilitate viewer navigation through the use of Electronic Programme Guides (EPGs). In broad terms, an EPG service has two main functions. It provides information about programmes or additional services, packaged in a manner which is likely to be convenient for viewers, and it helps viewers by providing information about the television services and programmes available to their receiver and helps them select the service or programme of their choice. With the expansion of the number of television services through digital transmission, EPG services have become increasingly important for viewers in selecting which service or programme to view. There are a number of levels an EPG service may take, ranging from a simple TV listing guide to a sophisticated electronic magazine allowing the viewing of programme previews and featuring linkages with conditional access and subscriber management systems.
Further references
ITC notes: Channel 5 (24), Conditional access (45), Broadcasting Act 1996 (3), Provision for the hearing and visually impaired (36).
July 2003