Memorandum submitted by City Broadcasting
DEATH KNELL
OR OPPORTUNITY?
New Local Television channels broadcasting on
digital television could fill the vacuum that will be left as
ITV withdraws from regional programming.
Yet existing local television channels will
lose their licences at analogue switch-off and have no guarantee
of a digital replacement.
After switchover how will local TV be able to
afford digital spectrum if it is auctioned to high bidders willing
to pay a premium for mobile TV and high definition channels?
So, if existing local channels lose their analogue
frequencies and cannot afford a digital replacement, how can we
expect new local TV services to emerge?
BACKGROUND
1. A handful of local television channels
have pioneered local television since the introduction of restricted
service licences in 1999. Currently they are all operating on
the basis of short-term analogue RSL licences from Ofcom—in
Oxford, Londonderry, Leicester, Manchester, Isle of Wight and
York—which will expire when analogue TV is switched off
in each region.
2. The existing analogue licences were awarded
as short-term licences.
3. Existing licencees have been told by
Ofcom that they will lose their analogue frequencies when analogue
switch-off takes place in each region.
4. Ofcom argues that local channel operators
knew they would lose their licence when analogue TV is switched
off and is currently reviewing the future of existing local channels.
It will launch a local television consultation in January—it
is scheduled to finish in mid 2006.
5. Nonetheless the existing local channels
have built local television businesses despite this uncertainty
about their future.
6. National analogue broadcasters already
know what their Digital Replacement Licences (DRL) will be and
can plan accordingly.
7. There is currently no provision for DRLs
for existing local TV operators.
8. In the interim existing local TV licencees
have met DCMS and Ofcom to ask to simulcast their local channels
on digital in order to secure the future of their businesses after
analogue switch-off.
If digital spectrum is auctioned to mobile TV
premium services and high definition national services will local
TV news channels be able to afford it?
1. Ofcom has announced it is to explore
how digital spectrum freed up by the analogue switch-off could
provide opportunities for new services. Ofcom describes this released
spectrum as "The Digital Dividend".
2. Local television channels have met Ministers
and Ofcom officials to argue that a worthwhile use of the Digital
Dividend would be to build a new tier of local digital TV services
which could fill the vacuum that is left by the contraction of
ITV's regional services.
3. However commercially valuable spectrum
is likely to be auctioned by Ofcom in packages designed to attract
premium users such as Mobile phone video and wireless broadband.
4. Although there is an assumption that
analogue switch-off will provide plentiful spectrum, new High
Definition services on Freeview are likely to absorb a considerable
amount of the freed spectrum.
5. Competition for this released digital
spectrum could drive up prices in the same way that broadcasters
have been paying premium prices to secure scarce Freeview channels.
6. Will local television be able to afford
the released spectrum?
7. As an alternative to the released spectrum,
Ofcom says "interleaved spectrum" can be used for a
variety of local or regional services and the future use of this
spectrum will also form part of the Digital Dividend Review.
8. However this Spectrum will also be required
for microphones in studios and outside broadcasts (PSME) and it
is unclear if this will leave sufficient interleaved spectrum
to accommodate local television channels throughout the country.
9. If local TV cannot afford released spectrum
and must compete for interleaved spectrum, how can we be sure
that new local TV channels will emerge?
10. Yet there is considerable evidence that
the public value the local news which existing channels can provide
and Ofcom's research indicates viewers would prefer more local
rather than regional news.
11. Could "reserved spectrum"
be secured from the "interleaved spectrum" to ensure
local television channels are not squeezed out of the market by
commercial operators with no public service obligations?
Has Ofcom undertaken detailed frequency planning
for the provision of a range of new local television services?
1. When asked at the recent Westminster
Media Forum whether spectrum could be available for local television,
the major transmission companies said they have focussed only
on metropolitan markets as these markets are the only ones which
have commercial value.
2. If so, it suggests that there may not
be spectrum available for smaller towns and rural areas.
3. Ofcom officials argue that detailed frequency
planning for local TV cannot be undertaken until a policy for
local television has been set by DCMS.
4. But without a dedicated spectrum plan
for local television, the frequencies which will best serve towns,
cities and regions might be assigned to other applications.
Should local television concentrate on being a
broadband-only service?
1. There is growing interest in using broadband
to provide local digital services.
2. However existing local television companies
believe it is essential to offer local television news through
a TV set using digital terrestrial television so that they can
reach the maximum number of people in an area. Broadband can then
be used to complement the DTT channel.
3. However if the future cost of local DTT
spectrum reflects the rates currently being paid for national
Freeview channels (ie £12 million paid by Channel 4), then
DTT spectrum could be so expensive that local channels will only
be able to operate as broadband channels.
4. While broadband can be used to complement
a broadcast service, it is no substitute for a local television
channel which can connect with an audience in the same way that
a local radio station connects with its listeners.
5. It is important that existing local channels
can experiment with new services by simulcasting their services
on digital television prior to analogue switch-over.
6. Meetings have been held with Ofcom and
DCMS to request digital simulcasting for pilot schemes operated
by existing local TV channels.
ABOUT CITY
BROADCASTING
City Broadcasting is a television consultancy
company which has considerable specialist experience of local
television in the UK and in 2000 launched Channel M in Manchester
for the Guardian Media Group.
City Broadcasting is currently developing a
local channel in Carlisle, which is where analogue switch-off
will begin in 2008.
City Broadcasting is also co-ordinating plans
for the North West Digital Platform, a project which will provide
open access to digital distribution to public sector stakeholders,
community groups and members of the public in the North West of
England.
4 November 2005
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