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Current Issues
Digital Television and Datacasting
E-Brief: Online Only issued November 2000; updated 3 January 2002
Kim Jackson, Analysis and
Policy
Social Policy Group
Key Sites
The most useful sites relating to the introduction of digital television
and datacasting in Australia are:
Recent Developments
Datacasting Review
During the Federal Election the Government announced that it would undertake
a review of datacasting in 2002. On the 19 December 2001 it released an
Issues Paper and called for submissions to be made by 25 January 2002.
The Issues Paper and a media release are available from this
DCITA page.
Receiving Equipment
On October 10 2000 the three commercial television networks announced
plans to jointly call for expressions of interest in the manufacture of
the set-top boxes (STBs) necessary to receive the digital television and
datacasting signals from 1 January 2001. The CEO's of the three networks
stated that it had become clear that without a joint approach there would
be no suitable equipment available to receive digital broadcasts by January.
The networks planned a $6 million subsidy to underwrite the manufacture
of the boxes, which would retail at between $500 and $600.
According to newspaper reports, the joint approach followed discussions
with Senator Alston who was concerned with the lack of progress in the
development of consumer equipment, as the networks and manufacturers bickered
over specifications. It had become apparent that there was little prospect
of any consumer equipment being available before June 2001 ('Alston
tunes in to an ugly picture', Sydney Morning Herald, 19 October 2000).
Manufacturers were said to be unwilling to take a risk on the new product,
so the commercial TV networks were forced to subsidise the production.
Thompson Multi Media
was awarded the contract, and in December 2000 they announced that the
STBs would be available in January at a suggested retail price of $699.
In February 2001 TEAC
announced a standard definition STB at the same price. In August Cormac
Prestige Services announced that it would supply a high definition (HDTV)
STB for $759. On the 21 November Sony announced
Australia's first digital television: a standard definition receiver at
a retail price of $4499. Specifications for these products can be obtained
from this
DBA page.
Take-Up of Digital Services
In April 2001 it was reported that only 3000 digital STBs had been sold
and that the Federation of Australian Commercial Television Stations (FACTS)
had established a 'high level group' to help drive implementation ('Only 3,000
cough up for digital TV', Sydney Morning Herald, 20 April 2001).
In July the Herald Sun reported that TCE Australia, which imports the
Thompson STB, had sold only 1500 of the 6000 units delivered to stores
and installers (Peter Familari, 'Our
Digital Disaster', Herald Sun, 18 July 2001).
New Products and Services
Digital television broadcasting began in the major metropolitan areas
on 1 January. The DBA site has a
News section which provides details of new products and services as they
become available. New services in 2001 included:
- two new digital channels for young people by the ABC, 'ABC Kids' and
'ABC Fly';
- Channel 9 electronic program guide;
- Channel 10 high definition demo channel.
Auction
of Datacasting Transmitter Licences
The auctioning of datacasting transmitter licences is the responsibility
of the Spectrum Marketing Group of the Australian Communications Authority
(ACA).
On the 17 January 2001 the Minister for Communications, Information Technology
and the Arts directed the ACA to impose competition limits on the auction
of datacasting transmitter licences. A media release
on the subject is available.
On the 23 January 2001 the ACA invited applications for the licences
and on 22 February it reported that seven applications had been received.
Four of these applicants eventually made eligibility payments. On 12 April
Telstra
announced that it was withdrawing from the auction because the cost
of developing a datacasting business was unlikely to make a sufficient
return to justify the investment. On the 9 May the Minister directed that
the auction be cancelled. The Minister's media release can be obtained
from this
page. News reports on the subject can be obtained from this Yahoo page.
Documents relating to this issue can be obtained from the ACA's Datacasting page.
Datacasting Charges
On 4 April 2001 the ACA made available its report on the Principles
for Determining the Amount of Datacasting Charge. The report made
recommendations on the determination of fees to apply to commercial television
broadcasters who transmit datacasting services. These fees are required
under the provisions of the Datacasting Charges (Imposition) Act 1998
to ensure that the commercial broadcasters do not have an unfair advantage
over other potential datacasters, who must bid for transmitter licences.
The ACA's Datacasting
Charge (Amount) Determination 2001 was notified in the Commonwealth
of Australia Gazette No. GN 25 of 27 June 2000.
Review of Digital Transmission of Community
Television
On the 5 June 2001 a discussion paper seeking comments on the issues
relevant to the review of digital transmission of community television
was released by DCITA. The review will investigate the regulatory arrangements
that should apply to the digital transmission of community television
broadcasting services using spectrum in the broadcasting services bands.
The Broadcasting Services Act 1992 requires that the review must
be conducted by 1 January 2002. The Discussion Paper and other documents
are available from this page.
Regional Digital Coverage
Digital services will be progressively introduced throughout regional
Australia, with all areas receiving services by January 2004. Under the
Regional Equalisation Plan, the Government will assist regional broadcasters'
transition to digital through the allocation of additional spectrum, free
of charge, for simulcasting their analog and digital services. In addition,
no new broadcasting entrants will be allowed in the medium term and the
existing operators will receive licence fee rebates. Details of the assistance
available for regional broadcasters can be obtained from this DCITA
page.
Regional implementation plans and other information on digital services
in regional areas can be obtained from this ABA page.
Interactive Television
In October 2001 the pay TV operator Austar launched
Australia's first interactive television service. Services included
T-Mail (e-mail on your television), Quick Shop (shopping related to programming
on The LifeStyle Channel), an electronic program guide, games, interactive
advertising and channel enhancements on The Weather Channel and Channel
V. Most of these services are free to Austar subscribers.
Commercial free-to-air television broadcasters are also planning to deliver
interactive services through digital STBs. They
have announced that they will use the open standard, Multi-Home Platform (MHP), to provide
these services. They have also expressed concerns that the proprietary
systems used by the pay TV operators will complicate the adoption of interactive
television in Australia. See Kate McKenzie, 'iTVs blurred future' (17
October 2001), available from the Centre
for Telecommunications and Information Engineering news archive.
Policy and Legislation
Background to
the Government Decision
On the 24 March 1998 the Minister for Communications, the Information
Economy and the Arts, Senator the Hon. Richard Alston, announced the Government's
decisions on the introduction of digital television. The text of the Minister's
statement can be obtained here.
Following a number of reviews of technical and policy matters relating
to digital broadcasting, the Government announced further decisions on
high definition television (HDTV) and datacasting on the 21 December 1999.
These can be obtained here. The Minister,
Senator Alston, has also provided a set of questions and answers
on digital broadcasting and datacasting.
The decision followed extensive consideration of the issue by the ABA
which had monitored developments in digital television since 1993, when
it established a specialist group comprising industry and government experts
to examine options for digital television systems suitable for Australian
conditions. In January 1997 the final report of the specialist group,
Digital Terrestrial Broadcasting in Australia was presented to the
Authority.
In July 1997 the ABA responded to the Specialist Group's report with
its Paper, Digital Terrestrial Television
Broadcasting (pdf file), which recommended to the Government that
it support the early introduction of digital television into Australia.
It considered that it should be a free-to-air service rather than a form
of pay TV and it endorsed the loan of a 7MHz channel to each of the ABC,
SBS and the three commercial networks, as this would enable the introduction
of high definition television from the outset. This was the approach adopted
by the Government.
Television
Broadcasting Services (Digital Conversion) Act 1998
The conversion to digital broadcasting required amendments to both the
Broadcasting
Services Act 1992 and the Radiocommunications
Act 1992. The former sets out the ownership and programming conditions
for broadcasting licences and is administered by the ABA. The latter regulates
the usage of the spectrum, including the licensing of transmitting apparatus,
and is administered by the Australian
Communications Authority (ACA).
These amendments were contained in the Television
Broadcasting Services (Digital Conversion) Act 1998 ("the Digital
Conversion Act"), which provides the legislative basis for the scheme.
The Act instructs the ABA to formulate digital conversion schemes for
commercial and national (ABC and SBS) broadcasters in accordance with
the policy objectives described in the legislation. Datacasting charges
are the subject of related revenue legislation, the Datacasting
Charge (Imposition) Act 1998.
Datacasting was defined in the Digital Conversion Act as a service (other
than a broadcasting service) that delivers information to persons having
equipment appropriate for receiving that information, where the delivery
of the service uses the broadcasting services bands. This form of definition
was required because the market for datacasting services had not yet developed
and the precise nature and scope of the services was unknown.
On 21 December 1999 the Government announced its decisions
on the limitations that would apply to datacasting services. The Broadcasting
Services Amendment (Digital Television and Datacasting) Bill 2000 and
the Datacasting Charge (Imposition) Amendment Bill 2000 were introduced
on 10 May 2000 to implement these decisions.
Digital Reviews
The Digital Conversion Act required the Minister to cause to be conducted
a number of reviews
dealing with issues related to the introduction of digital television
broadcasting in Australia. The following links are to DCITA pages which
provide access to any Issues Papers, Discussions of Options and submissions
associated with each review.
The final reports for the reviews were tabled in Parliament on 10 May
2000 and can be obtained here.
Industry Action Agenda
The Digital Conversion Act also requires the Communications minister
to prepare an action agenda to assist the development of the Australian
electronics industry in the digital broadcasting area. The Digital
Broadcasting Industry Action Agenda (March 1999), together with a
consultant's paper and a Newsletter, are available from this DCITA page.
Digital
Television and Datacasting Act 2000
The Broadcasting
Services Amendment (Digital Television and Datacasting) Act 2000 made
substantial amendments to the Broadcasting
Services Act 1992 to refine arrangements for the introduction of digital
television. The most significant of these were:
- the requirement for broadcasters to transmit a standard definition
digital television (SDTV) signal at all times and at least 20 hours
per week of high definition digital broadcasts (HDTV);
- provisions to enable the ABC and SBS to multi-channel certain kinds
of programs; and
- provisions to permit digital program enhancement content and electronic
program guides.
All mainland capital city stations must begin transmitting full-time
digital services from 1 January 2001, although the analog signals will
be simulcast until at least 2008. The requirement for 20 hours of HDTV
will take effect from the end of 2002.
The legislation also added a new schedule (Schedule
6) to the Act. This comprises the regulatory regime for datacasting
services: it establishes the licensing system (Part 2) and contains detailed
specifications for datacasting services to ensure that they will not become
de facto television broadcasts (Part 3). In broad summary, these provisions
ensure that datacasting licensees will not broadcast matter that would
be equivalent to a television news, drama, sports, documentary, lifestyle
or entertainment program, or a commercial radio program. They are allowed
to transmit extracts of TV programs, so long as they are no longer than
10 minutes and not strung together so as to constitute a single program.
Datacasters are allowed to transmit information and education programs,
parliamentary and court proceedings, text and still images, interactive
computer games and Internet-style services.
The Datacasting
Charge (Imposition) Amendment Act 2000 was enacted at the same time
as the above legislation. It made consequential amendments to the Datacasting Charge
(Imposition) Act 1998 to reflect the new regulatory scheme for datacasting.
Reactions to the Legislation
Some of the provisions of the legislation have been subject to considerable
criticism:
- the Final Report of the Productivity Commission's Inquiry
into Broadcasting criticised the mandatory requirements for HDTV
and the restrictions on datacasting (see Chapter 7);
- Telstra
announced that it was withdrawing from a datacasting trial because
it was disappointed with the legislation;
- News
Ltd claimed that the legislation would put the free-to-air broadcasters
beyond competition and retard the social benefits of datacasting;
- Mr
Kerry Packer has criticised the datacasting regulatory regime because
it permits newspaper proprietors to obtain datacasting licences;
- the Federation of Australian Commercial Television Stations (FACTS)
has supported the mandatory HDTV requirements and the restrictions on
datacasting.
The Senate Environment, Communications, Information Technology and the
Arts Legislation Committee's Report
into the Broadcasting Services Amendment (Digital Television and Datacasting)
Bill 2000 contains many extracts and references to those who expressed
a view on the legislation.
On the 22 August 2000 it
was reported that the secretary of the coalition communications policy
committee, Mr Gary Hardgrave, had criticised the digital broadcasting
regime as 'last gasp' laws which protected commercial television broadcasters
at the expense of consumers.
Implementation
The ABA is responsible for the implementation of the digital conversion.
It has prepared a timeline
summarising the process. It is required to develop digital channel plans
which will determine the channels to be allotted in each area and assigned
to each broadcaster as well as the technical limitations and characteristics
of those channels. Broadcasters are required to prepare implementation
plans relating to the conversion.
Other information on the implementation process is available from the
ABA's industry page.
Other Sites
The Centre
for Telecommunications and Information Engineering at Monash University
has a good archive of digital television news.
The United States Federal Communications Commission has a page ('Advanced Television Systems and Their Impact Upon
the Existing Television Broadcast Service') containing links to sites
of relevance for US digital television policy.
DigitalTelevision.com
is a US site with a broad range of information on digital television issues.
The 'digital
tv' page of the Department for Culture, Media and Sport in the United
Kingdom describes the approach adopted in the UK.
For copyright reasons some linked items are only available to
Members of Parliament.
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