Memorandum submitted by the Confederation
of Aerial Industries Limited
INTRODUCTION
The Confederation of Aerial Industries Limited
(CAI) is the UK's largest representative body for the TV and radio
signal distribution industry.
It exists as a subscription based trade association
with the aim of raising standards in the industry and to represent
its members to government, local authorities, housing decision
makers and broadcasters. It also maintains a very high public
profile with corporate advertising and the recommendation it receives
from the public broadcasting sector and broadcast operators.
Its 800-member companies range from the smallest
self employed aerial installer to the UK's largest manufacturers
and distributors of antennas and ancillary equipment for broadcast
reception and signal distribution.
The representation of the CAI covers around
10,000 installing engineers engaged in TV and radio signal delivery
in the individual home, communal dwellings and commercial premises.
The CAI self regulates membership entry criteria
by means of a full-time assessment programme financed completely
by CAI funds. All applicants are assessed before gaining entry
as to their ability to work to the mandatory codes of practice
for terrestrial and communal installations along with a code of
conduct. Membership is not granted and subscription payment is
not demanded until all the criteria for entry have been met.
The CAI has its own Education and Skills Programme
that offers a raft of training courses that will provide underpinning
knowledge for the new NVQ in Signal Reception it has helped launch
across the UK college network.
Annual roadshows are held throughout strategic
locations across the UK depending on the relevant broadcast reception
message needed at the time for those areas. An annual two-day
trade fair takes place in the Midlands that allows all aspects
of broadcast reception to be discussed in a conference and exhibition
environment. On average nearly 1,000 individuals attend this annual
event with over 600 attending the roadshows. The CAI therefore
communicates directly with its members and potential members and
enables direct feedback to broadcasters and government departments
via these conference meetings.
Other forms of communication are via the usual
channels. A comprehensive website enables the public to search
for their local installer or supplier. A latest news section has
open access, along with a member-protected area for trade access
only exchanges of information. A technical journal is produced
a least four times a year with a single news-sheet mailed out
monthly to the membership.
1. ON POLICY
OBJECTIVES, ECONOMIC
BENEFITS AND
RELATIVE ROLES
OF PLATFORMS
1.1 The CAI does not feel itself to be qualified
to comment at length on the objectives of switchover and has not
researched the economic benefits. It obviously recognises the
benefit to the antenna industry it represents in that the industry
is experiencing unprecedented growth.
1.2 With the launch of a digital TV market
we estimated that nearly 30% of the nation would have to carry
out some form of upgrade to aerial receiving systems in the home.
This percentage has obviously dwindled with over 60% of the nation's
household having converted at least one of their viewing sets
to digital capacity.
1.3 Before digital launched the UK's TV
aerial industry was probably valued at around £250 million
per annum. This has increased considerably particularly with efforts
to upgrade the necessary communal dwellings that are managing
with outdated signal distribution not capable of relaying digital
terrestrial TV or indeed satisfying the growing demand for satellite
services.
1.4 This leads us to the platform delivery
issues. The CAI can have little input on the role of the cable
industry but deals only with the representation of terrestrial
and satellite distributors and installers. That is not to say
a small number of CAI membership are heavily engaged in working
for the cable industry. (The CAI actually administers the Society
of Cable Telecommunications Engineers (SCTE) from its Wembley
office).
1.5 However, the CAI has always believed
that satellite would have a significant role to play in advancing
the uptake of digital services across the UK—particularly
where terrestrial has always and will continue to prove difficult.
Digital terrestrial TV (DTT) has proved to define "cut-off"
area demarcation as opposed to the analogue signals that have
allowed a somewhat "graceful degradation" before intolerance.
There are more defined areas where DTT will prove non-existent.
This is where a clear satellite alternative will provide the coverage
needed.
1.6 It appears we will have an unencrypted
version of ITV on the ASTRA satellite system early next year.
Unfortunately there are no such plans from Channel 4 or Five,
leaving the satellite option still unable to provide a complete
alternative platform for direct-to-the-home TV reception that
does not involve a smart-card purchase. A further loss here is
the enhanced interactivity that satellite offers with its extensive
bandwidth availability.
1.7 The CAI views this as a lost opportunity
to make digitally ready those consumers living in areas currently
unable to receive DTT. The more digital conversions that could
be made now—before any analogue switch-off—the less
pressure on resources when the first switch-offs occur.
2. FEASIBILITY
OF ACHIEVING
SWITCHOVER AND
THE COVERAGE
2.1 A massive amount of work went into examining
closely the details of how a switch from analogue to digital broadcasting
could be managed and achieved. The only close analogies and models
that could be referred to were the last major TV broadcasting
changeover—from VHF frequencies to UHF (leading into the
advent of colour TV) and also a nationwide changeover of gas supply
to natural gas.
2.2 With the switchover of TV frequencies,
here there was no specified timescale and the two frequency spreads
were not adjacent. The change was left to natural market progression
and the choice lay with the consumer. The only comparison we can
draw is that the public gradually absorbed the costs as product
became outdated and the desire for enhanced service choice—extra
channels and in colour—rendered the old service unnecessary.
Aerial costs were part of the required system purchase, as the
frequencies used demanded a totally new antenna.
2.3 With the gas changeover, infrastructure
was in place but there was the necessity to adapt equipment in
the home. Valuable lessons on house service calls was transferable
to more recent plans that enabled the introduction of the UK's
fifth TV channel—now called Five—which necessitated
the retuning of approximately nine million VCRs.
2.4 Again we face the prospect of many householders
needing to call on outside expertise to execute equipment changeovers
to adapt TV receiving equipment for digital. Despite the work
done within the Digital Action Plan (DAP), the question stills
remains as to the capacity of the independent market to provide
the amount of service needed once a transmitter channel is lost
in its analogue form.
2.5 With regard to necessary aerial upgrading
for digital the DAP identified a capacity shortfall in the number
of engineers qualified to carry the amount of work necessary in
the communal aerial market. With possibly another four million
homes relying on shared aerial feeds still unconverted for digital,
the industry will be severely stretched should there be little
or no incentive for the housing industry to implement or encourage
system upgrading.
2.6 A further unknown is the number of individual
householder aerial systems, within strong primary service coverage
area, that will fail when a switchover occurs. Statistical analysis
can facilitate a count of the number of households outside DTT
coverage as mapped today, however we know there is certain percentage
of normal aerial system replacement—but the exact amount
is the unknown. It is dependent on installation date and the unpredictability
of UK weather conditions. Many householders inherit installations
when purchasing property and as aerials are purely a distress
purchase there are a substantial number of installations that
will only be replaced as and when needed.
2.7 An early start to a campaign that warns
people of a possible aerial upgrade need would be beneficial in
avoiding a backlog once an analogue channel is lost to switchover.
Part of a campaign could highlight the switch so that people having
to replace aerials at this point in time consider it as the digital
option now rather than have to reinvest with prejudice again later.
2.8 In the metropolitan and conurbations
there is a considerable number of tenanted multi-dwelling properties
that still have no provision of digital signals—although
signals cover the area. The DCMS has made efforts to inform the
housing associations and other multi-dwelling landlords of the
impending switch, but response has been slow. There appears to
be an apathy linked to a lack of obligation in that provision
of TV signal is not an amenity like essential utilities.
3. THE COSTS
ASSOCIATED
3.1 The CAI carried out and submitted considerable
estimation calculations to the DAP on the pricing structures found
in the UK's aerial market. Since the dawn of satellite broadcasting
we have attempted to categorise installation rates that helped
with the marketing of dish installations that would be environmentally
friendly. With the advent of DTT similar exercises were needed—and
included in the DAP—that would help evaluate the cost of
the necessary aerial installation for DTT compatibility.
3.2 The calculations were originally related
to the transmitter coverage that ITV digital had to contend with
during the early days of pay-TV via DTT. ITV digital spent considerable
sums of money purchasing installations for prospective pay-TV
customers.
3.3 To summarise the outcome, the DAP decided
to publish a UK average price for service calls involving house
visit and engineer time and a very broad average UK price for
a digitally compatible aerial installation. In line with other
service trades making house calls it was concluded that service
charges could be averaged across the UK at between £45 and
£50. The CAI did further work on categorising aerial installations
related to transmitter service areas. The research divided the
installation of a DTT compatible aerial into three broad spectrums,
the details of which are available from the CAI's technical executive.
3.4 The installation of a TV aerial or the
means to receive signal adequate for TV viewing has always been
the responsibility of the viewer. Only TV rental companies and
ITV digital are exceptions to this rule, with BSkyB occasionally
marketing subscription packages that include dish installation.
We must conclude—unless the Secretary of State's plans for
the vulnerable change this—the cost of an aerial will have
to be fully met by the viewer when or if an aerial upgrade is
required for the householder to switchover to digital.
4. THE PROTECTION
OF VULNERABLE
GROUPS
4.1 The CAI does not have a viewpoint on
funding or subsidy provision for the groups deemed to be financially
disadvantaged. It will argue that any fiscal help will have to
be given directly to the household for them to direct at whatever
service they chose. We believe a sensible approach maybe a similar
mechanism to heating allowance could be workable. The CAI membership
executing aerial upgrades will not have the resources, or indeed
want to bother with, entering into unwieldy contracts with government
departments over payments for installations. The private market
will be lucrative enough and the disadvantaged will be ignored
if a clumsy system of reclaiming expenses is instigated.
4.2 A voucher system may be operable; redeemable
in retail premises or with an installer willing to enter into
a contract, but again this may cause unnecessary delay to the
switchover process and the timetable disrupted.
IN CONCLUSION
— The CAI believes there are sufficient
resources in place in the aerial industry to cope with the scheduled
switchover timetable with regard to individual domestic aerials.
The communal housing industry may have problems in finding the
necessary installation resources for shared aerials unless they
begin a strategy of system upgrade immediately.
— Immediate financial action is required
if the digitalUK logo (the digital "tick") is to be
part of the aerial installation strategy. At the moment funding
issues is hampering the national vocational qualification rollout
and there is a shortage of qualified engineers in the shared aerial
system market.
— A comprehensive "Freesat"
solution that includes all public service broadcasters is still
lacking with Channel 4 and Five still encrypted via the ASTRA
satellite system that covers the UK.
September 2005
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