Memorandum submitted by the Department
for Culture, Media and Sport
A. THE CASE
FOR DIGITAL
SWITCHOVER
1. Digital television brings many benefits
to consumers:
greater choice of TV services (both subscription
and free-to-view);
more robust technical quality; and
2. Digital television was introduced in
the UK on satellite (D-Sat) and digital terrestrial (DTT) networks
in 1998 and on cable networks in 1999. DTT services were introduced
alongside analogue terrestrial television services with the long-term
aim that analogue terrestrial services could eventually be withdrawn.
i In 1999, the Government confirmed this aspiration to complete
digital switchover but set two key criteria: availability (everyone
who could get the main broadcasting channels in analogue form
should be able to receive them on digital systems free to view)
and affordability.
3. Work carried out by the joint Government/Industry
Digital TV Project between 2001 and 2004 concluded that the consumer
market would not produce these outcomes of its own accord, primarily
because the continuing use of analogue terrestrial constrained
the development of the DTT network, leaving around a quarter of
homes outside full DTT coverage areas and many more without a
signal strong enough to allow for indoor aerial reception. Whilst
digital satellite is very widely available, coverage is not universal
and required consumers to install a satellite dish. Therefore,
to ensure digital television is available for free for virtually
everyone in the country, it was necessary to establish a carefully
managed transition strategy to switch off the analogue signals
and convert the terrestrial network to digital.
4. In September 2003, the Government decided
that it was appropriate to proceed with switchover because the
benefits far outweigh the costs. The updated Cost Benefit Analysis
(CBA) Report published in February 2005 showed quantifiable benefits
to the UK economy of £1.1-£2.2 billion in net present
value (NPV) terms. ii
B. THE BENEFITS
OF DIGITAL
SWITCHOVER
Digital switchover will bring significant benefits
for viewers and will have a positive impact on the UK economy.
63% of the households have already decided to move to digital
television, adopting this new technology much quicker than for
instance video recorders, or colour TVs, and proving how much
consumers value digital television. In its report for the Secretary
of State for Culture Media and Sport Driving Digital Switchover,
in April 2004, OFCOM emphasised that : "Digital switchover
has the potential to transform TV broadcasting; [ . . . ] it could
unlock the creative talents of the broadcasting industry for the
benefit of consumers and citizens; and it would provide the scope
for new and exciting opportunities in broadcasting and in mobile
communications from freeing up a large amount of valuable radio
spectrum."
The benefits of extended coverage: more people
will be able to receive DTT services
5. Only 73% of homes are currently able
to receive the full range of DTT services. Another 7 to 10% can
get one or more (up to five) multiplexes, whilst 20-23% have no
DTT coverage at all. Most of these households should be able to
receive digital satellite services but may face higher costs due
to the need to install a satellite dish. In some cases too, satellite
reception is not possible.
6. At the moment, not everyone can receive
the BBC digital only services which they are funding through their
licence fee. Also, some households outside DTT areas face limitations
in analogue services due to spectrum constraints. Channel 5 is
only available on analogue terrestrial to around 80% of homes.
In Wales, households do not have access to Channel 4 from transmitters
based in Wales.
7. The current DTT network is severely constrained
by spectrum limitations. In spite of efforts by broadcasters and
the ITC in 2002 and 2003, DTT cannot be extended further whilst
analogue services continue. The switch-off of analogue terrestrial
transmissions allows the UHF spectrum to be completely replanned
and the six existing multiplexes to be transferred onto frequencies
currently used for analogue transmissions and cleared internationally
for higher power.
8. Switchover will enable the coverage of
DTT to be extended to the same level as analogue, and therefore
solve these issues. It will bring greater choice for households
who want digital television but who cannot or do not want to receive
satellite services cannot or do not want to receive satellite,
cable or DSL services on all their sets.
The benefits of enhanced reception: a better signal
9. Switchover will also bring benefits to
those who can currently receive DTT services. The existing DTT
network will be completely renewed and modernised as part of the
switchover programme. Increased power levels and frequency changes
will deliver more robust reception in areas of existing coverage
and prevent in most cases the need for aerial changes. This will
improve digital reception for people who currently have unreliable
DTT services, and enable households who can now receive good analogue
pictures through a set-top aerial to receive digital signals via
the same means for their main set or a secondary one.
The benefits of released spectrum: new services
10. Spectrum is a finite and valuable resource,
particularly frequencies in the UHFiii band. Not only the continued
use of analogue transmission is wasteful of this public resource,
but also prevents the development of innovative services of value
to the economy and the consumers. It is therefore in the UK's
economic interest that this scarce resource be used as efficiently
as current technology allows.
11. Digital television transmissions are
much more efficient than analogue broadcasting. On terrestrial
networks, between five and 10 digital services can be compressed
and transmitted (in a process known as multiplexing) iv in the
space used by a single analogue service.
12. A spectrum plan was developed by Ofcom
and the broadcasters following the Government's statement in January
2003, v which stated that spectrum should be available after switchover
for up to six national multiplexes, but that these six multiplexes
should be accommodated in no more than 32 frequency channels,
releasing at least 14 frequency channels (each of 8 MHz) nationwide
for reuse.
13. Until the results of the ITUvi Regional
Radio Conference (RRC06) vii are known it is not possible to make
any firm decisions about how and for which services the released
spectrum should be assigned; future uses will depend not only
on international coordination, but also on technological advances,
spectrum planning and the prospects for the different services
to bring economic and social benefits to the country. Potential
candidates are more televisions services, standard or high definition,
mobile broadcasting or telecommunications. For instance, these
new services. However, Ofcom is working to ensure that maximum
flexibility is preserved in the capacity that does become available
and is currently considering, with Government, the most appropriate
means to make it available to the market.
Benefits for the broadcasters
14. At present, public service broadcasters
are required, as a condition of their licences (or in the BBC's
case, its Charter and Agreement) to broadcast simultaneously using
analogue and digital modes of transmission. This carries costs
for broadcasters, which switchover will end. Also, much of the
analogue terrestrial transmission equipment is nearing the end
of its useful life and would need significant investment to replace
in any case. Switchover will allow public service broadcasters
to save the costs of dual transmission and avoid this future capital
investment to renew the existing analogue network. They will also
benefit from the increase in the number of households able to
receive their new services on DTT.
Other Benefits
15. The Regulatory and Environmental Impact
Assessment published by DCMS and DTI on 16 September 2005 details
other benefits, which are summarised below. The Government's announcement
of the firm timetable for digital switchover will increase demand
for digital television on all platforms, bringing benefits to
all the broadcasters, and to platform operators for both free
and pay services.
16. Benefits for the supply chain: Digital
switchover will result in benefits for other sectors including
retailers, UK-based manufacturers of digital receivers and aerial
equipment manufacturers, suppliers and installers. viii A report
on the manufacturing and retail sectors commissioned by DTI from
Optaix found that if digital switchover were completed by 2010,
revenues for retailers and UK-based manufacturers would be higher,
though revenues might fall back in subsequent years. The aerial
installer industry is also expected to benefit from increased
demand. The overall increase in revenuesx over the period 2005-10
was estimated at around £2,400 million for the retailers,
£1,000 million for the UK manufacturing and R&D industry
and £21 million for aerial manufacturers.
17. Potential to develop local television
services: Local television has not yet found a way to develop
and grow in the UK and, only eight services, mainly city-based
are currently on air. However, local television can provide a
focus for the community, contribute to local economies, and give
good opportunities for training in media skills. Switchover offers
the possibility of identifying additional spectrum which could
be used for new services including local television services,
though the amount of spectrum which will be available depends,
inter alia, on the outcome of the RRC. DCMS, jointly with Ofcom,
is currently undertaking research to gain a better understanding
of the issues and economic models for sustainable local television
on a range of platforms. Following this, the Government intends
to consult on the options for a specific licensing regime, as
provided for in section 244 of the Communications Act 2003.
18. Benefits for the rural communities:
Digital switchover will generally benefit rural households as
those who cannot get a good analogue service now, many of whom
are in rural areas, will receive DTT signals for the first time
when switchover happens in their region. However, switchover will
not significantly improve terrestrial access for the 350,000-400,000
households—most of whom live in the remotest areas—who
have either no access or only very poor and unreliable access
to analogue services. Many of them have already switched to digital
satellite.
19. Though these historic difficulties are
unrelated to switchover, we believe it important to seek to address
them in our strategy. Ofcom announced on 1 June 2005, that it
is carrying out comprehensive researchxi into reception issues
for households in remote areas (including those with no satellite
coverage). The Government welcomes this and will continue to work
with Ofcom to ensure that the impact of switchover on very remote
communities is fully considered.
20. Provision of e-Government services by
digital television: One of the key attractions of digital television
is that the environment is more familiar to people who have made
only limited use or no use of internet-based services, and could
provide an effective low cost way for delivering e-Government
services to people who do not have access to the internet or broadband.
However, two main barriers still remain to be addressed: (a) the
equipment allowing to access internet through a television set
is often more expensive than simple digital converters and not
always very user-friendly; and (b) the need to connect the television
to a phone line or another return path. Where these barriers are
removed, consumers enjoy getting internet-based services on their
television, as is shown by the success of projects developed by
a number of local authorities throughout the UK.
C. THE COSTS
OF DIGITAL
SWITCHOVER
21. Sixty-three per cent of UK households
have already chosen digital television, and a significant minority
have converted more than one set. However, switchover carries
costs for consumers who have not yet switched to digital or do
not want to convert all sets when analogue signals are switched
off. It also carries costs for non-domestic users of television
services. This may include the cost of upgrading communal TV reception
systems that are found in flats, hotels and in residential care
and nursing homes. Public service broadcasters and multiplex operators
will incur the capital investment costs in building out the network
and any switchover-related costs that may be conditions of commercial
PSB licences, or which will fall to the BBC under the terms of
its new Charter.
Consumer costs
22. Since 2001, the Government and the regulators
have worked with broadcasters and industry to develop a switchover
strategy that minimises costs to consumers :
(a) The framework set out in the Communications
Act 2003 enabled Ofcom to require public service broadcasters
to extend the DTT network to substantially match the coverage
currently provided by analogue terrestrial services.
(b) The transmission framework plan adopted
by Government in January 2003 provides will allow most households
to receive DTT without the need to change their aerial (less than
10% of all UK households might need a new aerial because of switchover).
xii
(c) The Government has worked extensively
with manufacturers and retailers to ensure that the consumers
can have access to reliable consumer information, signalled by
the digital switchover certification mark. xiii It welcomes the
constitution of Switchco Ltd, xiv which under the commercial name
of Digital UK launched its public information campaign on 16 September.
Digital UK will be a major source of information until switchover:
itwill publish leaflets, send at least two letters to every household),
provide training packs and information updates for retailers and
installers, manage a web-site and a Call Centre.
(d) As recommended by the Consumer Expert
Group, consumers have been given a minimum of three years before
switchover happens in their region, and there is therefore plenty
of time for them to get ready, following the advice given by digital
UK, broadcasters and the industry. In particular the consumers
who will buy one of the nearly 6 million sets sold every year
in the UK will have the opportunity to choose a digital integrated
set.
23. However, we do recognise that switchover
will impose compulsory costs on some consumers. When digital switchover
takes place, all households that have not yet switched and who
wish to continue to receive television services will need to obtain
a set-top box or purchase an integrated digital television (iDTV).
But we believe these costs are limited and affordable for the
very vast majority of the consumers. For the small minority who
will face higher costs because of their age or disability, we
will require the BBC to set up assistance schemes (cf part F).
What are the minimal costs for consumers?
24. The digital TV market is very competitive.
Sky has launched a free-to-view satellite service allowing consumers
to access digital television services via satellite for a one-off
payment of £150 (this currently only applies to first set
installations). The BBC and ITV announced plans for a similar
service earlier this month, and they might be joined later by
the other public service channels as well as other free-to-air
broadcasters.
25. No exact equivalent for cable or for
DSL exists at present. Subscribers to cable/DSL have to pay for
the minimum TV service unless they take a broadband service (in
which case the basic TV package may come with the telephone package
at no extra cost), though there are some indications that cable
companies are reviewing whether to develop low cost access initiatives
to support subscriber growth.
26. Basic set-top boxes to receive DTT services
are available for less than £40. The price may fall further
by switchover.
27. However, in addition to the equipment
for their main set, consumers may also face other costs: xv
— Cost of conversion of additional
sets not yet converted; and which they wish to use for receiving
broadcast televisionxvi after switchover. Costs may include, in
some cases, a new indoor aerial or rewiring.
— Costs of any extra leads for video-recorders
(VCR).
— Those who wish to record a different
television channel to the one they are watching will need to replace
their VCR.
— Households who opt for DTT may have
to upgrade aerials (between 2% and 10% according to studies).
The costs can vary depending on the work to be done and on regional
variations, ranging from £80 to £300 (average around
£150).
— Households in blocks of flats, who
rely on communal TV systems, may, depending on their covenants,
be required to pay small additional service charges to cover the
digitisation of the system by their landlord. The total costs
per system vary, generally between £600 and £1,000,
xvii, xviii but will be shared between all the tenants and very
likely to be paid over a period of years.
— Research carried out for the Digital
TV Project by Scientific Genericsxix found that around two million
people over 75 would not be able to install a set-top box without
assistance. In most cases, help will be available from friends
and family, but a minority might have had to pay someone for this
service, for a cost ranging from £20 to £100. The assistance
schemes already mentioned will provide support to these consumers.
28. The cost of switchover for a household
will greatly vary according to several factors, including
— how much digital equipment the household
already has when switchover happens.
— how much additional equipment the
householders wish to continue to be able to use for receiving
broadcast television after switch-over.
— their platform, equipment and service
choices.
— prices at the time of their purchases.
29. The table sets out possible costs for
an average household under three possible scenarios. xx The household
is assumed to have three television sets: one main set, two bedroom
sets and one VCR, connected to the main set. Scenario 1 assumes
the first set already converted (as 63% of the population), B
the first set to be converted to DTT and C the first set to be
converted to free satellite.
| Scenario | First set
| Outside aerial
(if needed)
| Second sets
| Third Sets
| Indoor aerials
(if needed)
| Total
|
| A | Nil | Nil |
£40-£80 | £40-£80
| £30 | £80-£190
|
| B | £40-£80 | £80-£300
| £40-£80 | £40-£80
| £30 | £120-£570
|
| C | £150
| £40-£80 | £40-£80
| £30 | £230-£340
|
| | |
| | | |
30. The Government considers that switchover is now affordable
for the vast majority of households and costs may fall further
in the period up to and after the start of switchover, due to
the increased volumes of digital equipment produced for the UK,
Europe and the world. However, we do recognise that some people
will face higher costs because of their age or disabilities. In
particular, they might need practical support to understand their
options, as well as to install and use the appropriate equipment.
This is why specific schemes will be set up for the elderly and
disabled people.
Costs to broadcasters
31. The process of achieving digital switchover will
have a number of direct and indirect financial implications for
public service broadcasters.
32. Switchover-related costs. The PSBs will need to contract
with the network operators to upgrade the network. xxi This will
involve the installation of transmission equipment optimised for
the higher digital television power levels needed for switchover.
There may also be the need for strengthening work on some transmission
masts to account for the larger loads during switchover. In some
cases masts may need to be rebuilt. Assumptions about the notional
capital and running costs involved are included in the baseline
assumptions used to calculate the costs and benefits of digital
switchover. Because broadcasters are currently negotiating their
transmission contracts, it would not be appropriate to publish
any estimate of these costs.
33. The PSBs will also meet the costs of managing and
communicating the switchover process. The BBC, in line with the
Charter Review Green Paper, will take a prominent role in Digital
UK and be a major contributor to the marketing and communications
activities linked to switchover. Ofcom has separately required
the commercial PSBs to inform viewers about switchover and to
cooperate with SwitchCo through conditions of the Digital Replacement
Licences issued in December 2004.
34. Indirect costs. The migration to digital is likely
to put pressure on the audience share and therefore the income
of commercial public service broadcasters. However, it is difficult
to distinguish the net overall impact of digital switchover from
the impact of the market-led growth in digital television, and
from the effect of technological changes such as new recording
and storage devices, or market moves such as increased use of
video on demand services or new digital media. The Regulatory
and Environmental Impact Assessment develops this analysis and
gives more details on the impact of switchover on advertising
and commercial revenues.
Costs to non-domestic TV owners
35. A large number of businesses use broadcast television
from analogue networks. In the majority of cases, television plays
a marginal role but in a small number of sectors, its role is
more significant. Amongst those, pubs and betting shops are already
nearly fully converted to digital satellite or cable. In the hotel,
bed & breakfast and the residential care and nursing home
sectors, the market-led shift towards digital television has been
weaker so far (except for the hotel chains). Public sector organisations
also own and operate television services. For most public sector
organisations, the use of broadcast television services is small
and decisions on conversion to digital television will depend
upon their business need for the provision of television services.
In some areas however, television plays a more important role.
This includes televisions used in local authority care homes,
hospitals and schools. DCMS and DTI are working with other Departments
to make sure that public services are ready for switchover.
Conclusion
36. The Government has designed a strategy to minimise
the costs for consumers by maximising their options, giving them
enough time to prepare, and enough information to make the best
choice. The Government believes the positive benefits of the strategy
based on maximising choice by replicating analogue coverage with
DTT are compelling and outweigh the costs of switchover to consumers,
broadcasters and non-domestic users.
D. THE RELATIVE
ROLES OF
THE DIFFERENT
PLATFORMS IN
THE DELIVERY
OF DIGITAL
TELEVISION FOR
SWITCHOVER
37. DTT, satellite, cable and broadband can all play
a major role, whilst none of them can today achieve universal
coverage. The Government's strategy for digital television is
based on maximising competition in the provision of broadcasting
services and enhancing the choice for the consumers. As far as
possible, consumers should have the choice between at least two
delivery mechanisms and should have the option to receive free
to air services if they do not want any subscription, contract
or bundling with other services.
38. To minimise extra costs for consumers, we want to
ensure that people who currently get their television services
through an aerial, whether on their main set or on a secondary
one can continue to do so if they wish.
Digital terrestrial television
39. The Government's long-term objective has been to
ensure that coverage of PSB services on digital terrestrial should
substantially match existing analogue coverage, as set out in
the Communications Act 2003. On 1 June 2005, Ofcom announced its
favoured approach for meeting this objective.
40. The three so called "public service multiplexes"
(which will carry all the BBC services, ITV, C4, S4C the public
Teletext service and Five, as well as other services such as ITV2
and E4) will have the same coverage as the four main analogue
channels today, ie 98.5% for the UK. DTT coverage figures at switchover
for England, Scotland Wales and Northern Ireland will also match
the effective analogue coverage in the respective nations.
41. This means that a household currently getting an
analogue signal of acceptable quality, including those currently
outside the digital terrestrial coverage areas, will get a digital
terrestrial signal at switchover and will be able to receive the
public service channels currently available in analogue as well
as new digital television services (for example ITV2 and 3 and
the BBC's new digital services). Households outside the coverage
area for Channel 5 and DTT will receive Five services via terrestrial
networks for the first time.
42. The coverage of the three so-called "commercial
multiplexes" will depend on decisions made by their operators,
on financial considerations. Unlike the public service broadcasters,
commercial multiplex operators have no obligations to extend their
coverage. However, we expect that they will want to improve their
coverage whilst moving to new frequencies during the switchover
process. This could lead to an increase in their coverage (and
therefore the coverage by all 6 multiplexes) from around 73% now
to around 90% of households at switchover.
Digital Satellite
43. Digital satellite signals cover the vast majority
(96-98%) of UK households; however, in some cases reception of
the signal or installation of a dish may not be possible, for
instance, where the line of sight to satellite is hidden by trees,
high hills or tall buildings, or planning laws do not permit the
installation of a dish. The planning rules are currently being
reviewed to strike the right balance between environmental and
aesthetic concerns and access to satellite services for those
who want it.
44. The launch of a free to air satellite service from
BSkyB and the announcement by the BBC and ITV that they will be
working to offer a similar service, without any contract are very
good news and will help increase the choice of free options for
the consumers.
Digital cable
45. Cable is only available to 50% of households, and
is not yet fully digital. However, cable operators have plans
to convert their analogue networks fully to digital. They currently
offer subscription services and often bundle telephony and internet
access with digital TV services.
Digital Television via DSL/Broadband
46. Using a technology known as Internet Protocol Television
(IPTV), TV signals can be carried over ordinary telephone lines.
As most households already have access to a telephone line, this
delivery method has great potential for development. At present
coverage is geographically limited (Greater London, Stevenage
and Hull) but is expected to spread more widely over the next
12-18 months. Like cable, telephony and internet access are offered
in a bundle with digital TV services on a subscription basis.
E. FEASIBILITY OF,
AND STEPS
NEEDED TOWARDS
ACHIEVING SWITCHOVER
TO THE
GOVERNMENT'S
TIMETABLE AND
WITH SUFFICIENT
GEOGRAPHICAL COVERAGE
The switchover process
47. The analogues services will be switched off and the
existing digital multiplexes moved to new frequencies. This process
requires careful technical management and extensive communication
with viewers.
48. All transmitters including those which already broadcast
digital signals will have to be upgraded during the process. This
conversion process will be carried out over a period of four years
between 2008-12 on a region-by-region basis. The process will
follow the pattern of the ITV regions, which are well known by
viewers.
49. The process in each region will take between one
and six months. The transition process will begin with one analogue
service being replaced by a digital multiplex service (carrying
the digital version of that analogue service plus other channels).
This digital multiplex will be broadcast throughout the region
with sufficient power to replicate the coverage of the analogue
broadcasts. The other analogue services will continue to be broadcast
over a few weeks to give time for the remaining analogue-only
viewers to get ready for the full switch-off.
50. At the end of this transition, the remaining PSB
digital multiplexes will move to their new high coverage assignments
and the remaining analogue broadcasts in that region will be switched
off. At this point the other three commercial multiplexes will
also move to new high power frequencies at the sites that they
intend to adopt at switchover.
Technical constraints
51. The regional sequence has been determined by broadcasters
and Ofcom according to three technical factors:
Interference management. The sequence in which regions
switch has to be managed very carefully in order to avoid interferences
from one region to another. This significantly limits the number
of alternative sequences which are technically feasible.
Infrastructure and engineering resources constraints.
To allow for the most efficient management of these resources,
approximately the same number of transmitters has to be converted
in each year of the switchover process. Also, considerations had
to be given to the time required for planning permission, but
also for the need for manufacturers, platform operators and retailers
to ensure adequate supply for consumers in each region.
International spectrum negotiations. In order to minimise
any risk that the switchover process will be affected by the international
negotiations currently underway (RRC06), it was decided to convert
regions most affected by these negotiations last—the south
and east of England, Northern Ireland and the Channel Islands.
52. Once all the parameters were factored into detailed
planning, the optim sequence for the regional order quickly emerged.
Following more detailed work, this order was endorsed by the Government
on 15 September 2005.
Regional timetable
53. In February 2005, Ofcom published an indicative timetable,
allowing a more detailed implementation schedule to be worked
through by the broadcasters and transmission companies. Since
then, a more detailed plan has been prepared by broadcasters,
through Digital UK, allowing the definitive timetable to be confirmed.
Whilst the order, the start date and the end date remain the same,
a few adjustments have been operated, to give more time to allow
any technical amendment (design of antennas) made necessary by
the outcome of the RRC to be taken into account, and most importantly
to deliver appropriate support to the consumers. The definitive
regional timetable is as follows:
|
| Region | Year
| Regional Start Date |
|
| Border | 2008 | 2nd Half
|
| West Country | 2009 | 1st Half
|
| HTV Wales | | 2nd Half
|
| Granada | | 2nd Half
|
| HTV West | 2010 | 1st Half
|
| Grampian | | 1st Half
|
| Scottish Television | |
2nd Half |
| Yorkshire | 2011 | 1st Half
|
| Anglia | | 1st Half
|
| Central | | 1st Half
|
| Meridian | 2012 | 1st Half
|
| Carlton/LWT | | 1st Half
|
| Tyne Tees | | 2nd Half
|
| Ulster | | 2nd Half
|
|
| |
|
54. Government and broadcasters believe this timetable is
achievable and appropriate. It allows for some contingency (ie
bad weather delays work on transmitter masts), gives enough time
for consumers and retailers/manufacturers to get ready, protect
the interests of consumers and will help the UK to get significant
benefits.
F. THE ASSISTANCE
FOR THE
VULNERABLE GROUPS
Objectives
55. The Government has always been clear that, at switchover,
everyone who can currently get the main public service broadcasting
channels in analogue form should be able to receive them on digital
systems, and that switching to digital is an affordable option
for the vast majority of people.
56. The first condition will be met, as the level DTT
coverage will be similar to that of analogue, and as we expect
even more people to be able to receive television signals through
one of the digital platforms. The second condition has also been
met as corroborated by the high level of take-up (63% end June
2005), digital terrestrial set-top boxes being sold from around
£40, smaller-size and cheaper integrated digital television
sets available on the market and a free to view satellite option
being offered.
57. However, the cost of the cheapest set-top boxes is
not the only factor relevant to assess affordability of switchover:
some people will struggle to understand DTV, select and install
equipment, and have difficulty with set up and familiarisation.
Scientific Generics found that 50% of over 75s (around 2 million
people) would have difficulty in installing a set-top box due
to sensory or cognitive impairments or an inability to manipulate
wires and connections in the tight space behind a TV set. These
barriers have resulted in a slower rate of digital take up for
older households, particular those with a member over 75.
58. The DCMS commissioned two reports: from the Consumer
Expert Group (October 2004) and from Ofcom's Independent Consumer
Panel (November 2004). xxii Both reports concluded that there
was a significant risk of vulnerable households being left without
television after switch-off and that a package of assistance would
be essential to support switchover. Both emphasised the need for
practical in-home support to avoid loss of services. However,
when elderly or disabled people are given digital television and
some support to install and use it, usually by their family, they
enjoy it and value the enhanced choice of services.
What are the needs of these groups and how to meet them?
59. Understanding what is happening, and what needs doing:
Through the adoption of a comprehensive communications campaign
for the general public, Government, Digital UK, broadcasters and
retailers/manufacturers (each according to their role) will ensure
that their messages are adapted to the different needs of the
vulnerable groups. This will cover the provision of Braille/larger
fonts/audiotapes, of simple and multilingual leaflets, the appropriate
training of the call centre staff, and cooperation with the existing
network of support and charities. Digital UK will lead this campaign,
managing a website and a call centre, sending direct mail to consumers
(at least two letters for each household) and running an extensive
information campaign using all media. The BBC is also expected
to promote digital television, and the commercial public service
broadcasters will inform their viewers on what they need to do
to continue to receive their services.
60. Affording costs of more sophisticated equipment:
This is a relative issue: whilst the cost of simple equipment
to convert one television set is affordable, some people might
not afford more sophisticated products required by their specific
needs nor extra costs related to installation. Whilst we expect
most households to be able to install the equipment themselves,
the severely disabled and older people might need extra help provided
at no or low cost. There is a risk that the increase in demand
on installation support around the time of switchover leads to
an increase in prices and or long waiting lists, but also that
unreliable installers target vulnerable people and get them to
pay much more than they should. The provision of an assistance
scheme for vulnerable groups will help prevent this. As this could
also be a concern for the general public, the Government has sponsored
a Registered Digital Installer Scheme which will be launched later
this year, more information on which is given in Annex B.
61. Using the equipment: Though leaflets and general
information programmes can go some way, some people will really
need practical help and hands-on demonstration to understand how
to use the equipment. In most cases, people will get it from their
younger siblings, relatives or friends. It might take several
"lessons" for an older person to be able to sort out
the main issues (sound has disappeared, subtitles have gone, I'm
stuck on the EPG/interactive games etc). Sometimes, this help
will not be readily available, as is likely to be the case for
many elderly or "socially isolated" people as identified
by the Consumer Panel. This is where charities and social workers
can be most helpful, but also, as shown in the technical trial
in Ferryside and Llansteffan, where the local community and neighbours
can play a major role.
The proposed assistance schemes
62. The Government's primary objective is to ensure that
the most vulnerable consumers do not lose television services
(in particular PSB services) at the point of switchover. Therefore,
we will ensure that they have at least one television set converted
to digital, benefit from an aerial upgrade if necessary and that
they are helped to understand how to use their new equipment.
63. The equipment provided needs to be easy to use and
to allow consumers to get all the services they have now (including
Teletext) and all the specific functionalities they need (subtitles,
audio-description). The scheme itself needs to be easy to access
and be designed around the specific needs of those who will need
assistance.
64. The extensive package of support announced by the
Government on 15 September will meet these objectives. A comprehensive
equipment and fitting service will be provided to
(a) households where someone is aged 75 or over; and
(b) households with people with severe disabilities (defined
as those people eligible for either Disability Living Allowance
or Attendance Allowance).
65. Assistance will consist of providing the necessary
equipment to convert one TV set and the relevant help to install
and use such equipment. Though the procurement process, it will
be possible to ensure that the equipment is produced to specifications
which make it most relevant to these consumers (eg audio-description,
good subtitles display, user-friendly remote control).
66. Some consumers will be able to install the equipment
themselves, may be with some help from a friend or relative, or
guidance over the phone. But, where required, the scheme will
provide a full service, relying on trained installers to fit the
equipment and check or upgrade the aerial and wiring where necessary.
67. This help will be free for the poorest eligible households,
those on Income Support, Job Seekers' Allowance or Pension Credit.
But we will charge a modest fee to others in order to encourage
early take up from those for whom affordability is not an issue.
This fee will be determined nearer the time and be linked to the
cost of a basic set-top box.
68. We also propose to offer some additional support
to those who are registered blind so they can benefit from the
audio description facilities provided by digital technology.
69. These assistance schemes will be funded by the BBC,
and their costs will be taken into account in the next licence
fee settlement starting from April 2007. The Government and the
BBC are currently running a pilot project in Bolton, and will
use the outcomes of this pilot to refine the implementation of
these schemes. We expect the results to be available by the end
of the year. Annex C gives more information on the Bolton project.
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