Technical and Policy Issues Clouding U.K.’s DTV Switch-Over

The govt. has tentatively set 2012 as the deadline for converting to standard-definition digital PAL (625i) from analog broadcasting, but deep cracks in its plan have recently come into public view. Anxiety over the switch- over’s timing is especially acute among CE makers and retailers, which must grandfather product parts and service for 7 years and are concerned about managing analog inventory. Meanwhile, some observers contend satellite HDTV may arrive before the U.K. converts to terrestrial SDTV, causing market turmoil.

New digital licenses for the U.K.’s commercial public service broadcasters call for them to switch from analog by Dec. 31, 2012, Ofcom said. The plan assumes 3 of the frequencies now used by the nationally available analog terrestrial services will be reused for the 3 digital public service multiplexes at switch-over, Ofcom said. But the regulator said the frequency conversion process requires “careful management” to allow analog viewers time to convert before the transition phase is complete.

Conversion is expected to take place region by region 2008- 2112. Three technical considerations determine the sequence, Ofcom said: (1) Minimizing interference among transmission sites as analog is changed to digital. (2) Ensuring about the same number of transmitters must be converted yearly. (3) Minimizing the risk that the switch-over will be affected by the international negotiations underway for a Europe-wide digital switchover. Although the govt. will decide when the switch-over takes place, Ofcom said it “remains committed to the earliest practicable” date.

Confounding the govt.’s switch-over plan is the lack of a single entity to coordinate it. Instead, planning remains subject to debate among different govt. agencies and industry groups with different axes to grind. The U.K.’s delays on frequency planning mean broadcasters from the Continent may land-grab by transmitting with high power on some of the U.K.’s released frequencies, and so block their later use in the U.K., such as for HDTV, some observers contend.

Supposedly working together on the plan are the Dept. for Culture, Media & Sport (DCMS) and the Dept. for Trade & Industry (DTI). They set up an “Action Plan with Market Penetration Group” that was to work for 2 years on a strategy but went on for 3. The Digital Television Group (DTG), chaired by David Youlton, is funded by broadcasters and the “supply chain” -- CE manufacturers and retailers. A subgroup of the DTG, the HD Forum, is charged with studying HDTV’s prospects. Additionally, the terrestrial broadcasters formed a group called SwitchCo, which also will work toward switch-over. A variety of consumer panels and experts, and watchdog Ofcom also are involved.

The DCMS and DTI moved on one of the Action Plan’s recommendations and created a “Digital Ready” logo. This is to be applied on TV sets, antennas and even coax cable to tell customers they can be used to receive digital broadcasts, or can be connected to a digital set-top receiver. Retailers are supposed to be trained to advise consumers, too. The logo was unveiled in Sept. by the DCMS and licensed by the DTI. The unveiling was low key. Few people have heard of it, and the logo was seldom in place on equipment during the holiday selling season.

Frustrations and antagonisms among the various groups burst into the open last Nov. at a seminar titled “Managing Digital Switchover,” where DCMS Minister Andrew McIntosh, told the audience: “I need your help. This is a formidably complex project.” McIntosh, who’s in charge of the process, said: “We can’t tell the public when analog will switch off, but we must tell them it will happen and that we will not be giving away free equipment to people that have not connected. The BBC’s role needs to be more clearly defined, too.”

McIntosh’s plea brought a sharp retort by DTG’s David Youlton: “You said you needed our help. Well, the DTG has been going since 1996 and accumulated the largest database of information on digital TV. I wrote to the DCMS, DTI and Ofcom many months ago, asking for meetings. The only reply I got was from the DCMS, who arranged a meeting with you… and that was then canceled. I've heard nothing since.”

Youlton’s remarks opened the floodgates to acrimony. Sheila Cassells, head of economic policy at satellite service BSkyB, reminded McIntosh that although he admitted 27% of the U.K. population can’t receive terrestrial DTV - - and those who can often need a large outdoor antenna -- antiquated planning laws often prevented householders from installing even small satellite dishes.

Danny Churchill, representing retailer Dixons and the DTG, and Panasonic’s Peter Hamblin then went public on the mounting bitterness over the make-up of the SwitchCo group. Its chmn., Barry Cox, is deputy chmn. of broadcaster Channel 4, and 10 members of the SwitchCo board are broadcasters, too, they complained. Only 2 board members are from the “supply chain,” they said -- Laurence Harrison of Intellect, the largely silent CE manufacturers’ trade group, and Marcus Coleman of the DTG.

“It’s the supply chain that runs the biggest risk in all this,” said Hamblin, “and there are only 2 of us with any say.” Retailer Churchill reminded the audience that, under U.K. law, customers who buy a TV or other CE gear are guaranteed parts and service for 7 years. “When I sell a TV set, I am married to that consumer for seven years. The broadcasters are naive. They don’t understand the supply chain,” Churchill said. “At the very least SwitchCo needs an independent chairman. We have been asking for that for 5 months and today we've heard from Andy Townend [BBC controller-distribution] that there is only one nominee. I did not want to mention names, but Barry Cox is a broadcaster. We need someone from outside, from the mobile phone industry perhaps. But there has been no effort made to find someone.”

Although the issue of digital switch-off was far from settled and the Digital Ready logo seldom deployed, calls for an “HD Ready” logo already were being advanced by the DTG’s HD Forum. That group, chaired by Simon Fell of broadcaster ITV, said the aim of the logo was to ensure that when consumers buy a large screen TV, they will know it is future-proof and able to do display HDTV and blue- laser HD prerecorded media. Such a logo was recently approved by a European standards body and was already being applied to 7 of 8 plasma TVs by Pioneer (CED Jan 20 p4).

“We have spent the whole day talking about standard definition digital TV,” Fell said. “But Astra is already broadcasting two channels of HD, Premiere is starting next year and Sky the year after. ITV is restoring its old films to HD format. Switch-over to standard definition will not even have started before HD arrives.” The HD Ready logo specifies widescreen 720p or 1080i displays. “There should also be a digital video input, either DVI or HDMI,” Fell said. Only the higher priced screens now on sale in the U.K. would qualify for the logo. “People will need new boxes before we have finished selling them the first lot,” Fell warned. “Unless we get an HD Ready logo, people will soon be throwing away today’s digital equipment because it’s obsolete.”

About 5 million U.K. households had free terrestrial DTV reception as of year-end, according to the BBC, which provides the Freeview DTV service. Based on weekly sales figures, the broadcaster estimated 1.5 million terrestrial DTV set-tops and integrated DTVs were sold in the 3 months up to Dec. 25. In all, 13.9 million U.K. households were receiving DTV as of Sept. 30 -- 7.4 million through satellite, 2.5 million through digital cable and 3.9 million through terrestrial Freeview, the BBC said.