Switchover–related Changes to DTT Licences

Summary

Summary

Purpose of consultation

1.1 The move towards digital switchover in the UK (DSO) has progressed considerably across the EU in the last twelve months. Four Member States – Germany, the Netherlands, Finland and Sweden – are scheduled to complete switchover by the end of 2007. In the UK, the Government announced in September 2005 that DSO should be complete by 2012 and made public the regional timetable for switchover to achieve this objective. In Ofcom’s view it is now necessary and desirable to insert appropriate switchover-related conditions in:

• the five multiplex licences held under the Broadcasting Act 1996; and
• all digital television programme service (DTPS), digital television additional service (DTAS) and relevant digital sound programme service (DSPS) licences. In this consultation, these DTPS, DTAS and DSPS licences are referred to as DTT ^(-1-) service licences.

Ofcom sets out proposals for such conditions in this consultation.

1.2 Ofcom’s aim with these proposals is to ensure that the multiplex operators and holders of DTT service licences are under clear duties to cooperate with, and participate in, the complex process of digital switchover in the public interest. The purpose of this consultation is to seek views on whether Ofcom should include the proposed DSO-related conditions in these licences.

1.3 The deadline for sending responses to this consultation is 5pm on 27 September 2006.

MULTIPLEX LICENCES

Provision of television multiplex service

1.4 The purpose of the proposed amendments to condition 2 of the current licences is to set out the obligations on the licensee as to the coverage to be achieved by the service at DSO. The new condition 2(3) would impose a duty on the licensee to ensure that, as switchover takes place in the various regions of the UK, so the licensee’s obligations to broadcast from the DTT broadcasting stations required to achieve the necessary level of coverage come into force.

1.5 Ofcom proposes that the licensed PSB multiplex operators ^(-2-) should be under a new duty to broadcast at DSO from an increased number of sites. The aim is that by 2012 DTT coverage of the PSB multiplexes should be around 98.5 per cent of the population.

1.6 When power levels for DTT transmission are increased at DSO, it is now estimated that the commercial multiplex operators ^(-3-) will be able to achieve around 90 per cent coverage. These licence holders are presently under a duty to broadcast from 80 sites and Ofcom proposes that this obligation should be unchanged at DSO subject to the following: if the holders of commercial multiplex licences wish to broadcast from more than these 80 sites, they must inform Ofcom by the close of this consultation by making an unconditional commitment to adopt such sites. Ofcom will then consider whether to vary their licences to include additional sites, broadcasting from which at DSO would then become a duty.

1.7 The following duties, Ofcom suggests, should be added in new annexes to the licences.

Cooperation and coordination with other parties

1.8 Ofcom thinks it appropriate to include in the multiplex licences an obligation on licensees to co-operate with everyone involved in the implementation of digital switchover in the UK.

Annual report and information relating to Digital Switchover

1.9 This proposed new condition would place a duty on a multiplex licensee to send Ofcom an Annual Report giving details of his compliance with the conditions in the licence relating to digital switchover, and to provide information requested by Ofcom about DSO.

Communications with viewers

1.10 At DSO it will be necessary in some parts of the UK for “rescanning” to take place (ie retuning viewers’ set top boxes). The multiplex operators will have a central coordinating role to play in informing viewers about this procedure. To help ensure it proceeds smoothly, Ofcom is minded to include in their licences a duty on the holders to inform viewers about rescanning or other viewer actions required at switchover, and agree in advance with Ofcom a plan for doing so.

Digital Switchover Date and timetable

1.11 Ofcom proposes to insert a date for the final completion of switchover in the UK of 31 December 2012 (except for the Channel Islands where it will be 31 March 2013) and the region by (Channel 3) region switchover timetable to reflect the Government’s announcement in September 2005.

List of digital terrestrial broadcasting stations and Wireless Telegraphy Act licensing

1.12 This proposed new condition would include in the licence an obligation on the multiplex licensees to broadcast from an expanding list of DTT broadcasting stations as DSO takes place on a regional basis. There is an important difference between this obligation as set out in the two PSB multiplexes at switchover (i.e. multiplexes 2 and B); and the remaining three commercial multiplex licences.

1.13 Ofcom proposes to include in the two PSB multiplex licences a list of 1,154 DTT broadcasting stations and dependent relays set out by reference to the various (Channel 3) regions where digital switchover will take place. These lists will reflect those in the various digital replacement licences, and the frequency allocations set out in the relevant Wireless Telegraphy Act (WTA) licences relating to the radio spectrum used for DTT broadcasting.

1.14 Currently the WTA licences relating to this spectrum are held by Arqiva (concerning the spectrum used for multiplexes 2 and A), while NGW holds the WTA licences as regards the spectrum used for multiplexes 1, B, C and D. Ofcom is minded at switchover to change who holds the relevant WTA licences. When DSO occurs Ofcom intends to issue new WTA licences for the spectrum needed to the operators of the six DTT multiplexes, so that these licences are held by the multiplex operator, not the transmission service provider.

1.15 The proposed list of DTT transmission stations is different in the planned commercial multiplexes i.e. muxes A, C and D. Ofcom proposes to include in the commercial multiplex licences the same list of 80 sites from which the licence holder shall broadcast at DSO as binds the licensee currently. If the commercial multiplex operators wish to adopt any DTT broadcasting sites in addition to the current 80, they must take an unconditional decision as to which (if any) additional sites they wish to build and inform Ofcom of this commitment in writing in their response to this consultation. Ofcom will then consider any such offer and, if appropriate, include additional sites in the licences.

1.16 Once Ofcom has included the list of DTT broadcasting stations in the multiplex licences, the regulator intends to keep it under regular, probably annual, review as DSO proceeds. The multiplex licences, both PSB and commercial, will be amended accordingly.

DTPS, DTAS and DSPS LICENCES

Cooperation and coordination with other parties

1.17 Ofcom proposes to include in the DTT service licences some minimal duties relating to DSO. These are set out in a new annex to be added to these licences. The first is an obligation to co-operate with the main parties involved in the administration, organisation or implementation of digital switchover in the UK.

Communications with viewers

1.18 The second concerns “rescanning” of set top boxes, analogous to that which Ofcom proposes to insert in the multiplex licences (see above). The direct relationship with viewers and listeners on the DTT platform is managed by the DTT service licensees. Ofcom considers that it is therefore appropriate to include an obligation in these licences that the holders must use their reasonable endeavours to inform viewers/listeners about rescanning or other viewer/listener action required at switchover, to ensure this takes place, and that the multiplex licensees have a means of ensuring they can fulfil their parallel obligation.

Footnotes:

1.-digital terrestrial television

2.-ie multiplexes 2 (Digital 3 and 4 Ltd, owned by Channel 3 and Channel 4) and B (BBC Free to View Ltd). The new Agreement between the Secretary of State for Culture, Media and Sport and the BBC (June 2006) requires the BBC to achieve a similar level of coverage for the unlicensed Multiplex 1

3.-ie multiplexes A (SDN Ltd), and C and D (National Grid Wireless Ltd)

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