6.3.2 Terrestrial transmission

The current digital terrestrial network covers 75 per cent of the New Zealand population in nine main centres (Auckland, Waikato, Tauranga, Hawkes Bay, Manawatu, Kapiti, Wellington, Christchurch and Dunedin). See Appendix 3 Digital Terrestrial Transmission Coverage.

A number of regional broadcasters are presently using this network, (or a satellite facility) to broadcast a digital service. There are several other regional broadcasters who, while within the current terrestrial footprint, remain broadcasting using solely analogue technology. These broadcasters have a technical option to acquire capacity on an existing licence, or if operating on a commercial licence to seek to operate using their own digital licence.

There remain approximately 10 regional stations which operate in areas not included within the present 75 per cent population coverage. Even if coverage was extended as far as 87 per cent, some regionals would still be outside such coverage.

If the present terrestrial footprint was extended it may offer further opportunities for regional broadcasters who are currently outside the current footprint. Any extension would need to be supported by a business case assessing the related costs and benefits. Areas of future extension would be to less heavily populated areas with smaller potential audiences for broadcasters and higher costs per viewer.

The extension of the present terrestrial footprint by the present licensees seems unlikely to be commercially viable in the present economic circumstances. Any Government support would therefore need to be weighed against other government priorities and the benefits to be gained from any extension; and the availability of funding cannot be assumed.

Extension of the footprint also becomes increasingly unlikely as the country moves closer to a DSO date. At present there are around 60 per cent of viewers who are watching a digital service, and as DSO nears the other 40 per cent will gradually adopt digital reception. Viewers in areas outside the terrestrial footprint will only have the option of satellite reception, so as digital take-up increases, this would further weaken the case for extension of the terrestrial service. That is, households outside the existing coverage will already have purchased satellite television equipment and are unlikely to make a second purchase of terrestrial equipment. The Ministry is nevertheless interested in views on terrestrial expansion in relation to regional services.

The cost of transmission is also a consideration for regional broadcasters. While terrestrial digital transmission costs are considerably less than satellite transmission, they are still higher than the costs of analogue transmission currently used by regional broadcasters. Additional costs would also be incurred through being included on the electronic programme guide on the Freeview platform. Section 6.3.5 below discusses these requirements more fully.

Question 24

Would geographic expansion of the terrestrial coverage provide a solution to you as a broadcaster or other interested party? Please state reasons why, or why not.

What level of expansion do you see as desirable and economically viable?

UHF spectrum allocation

A number of regional broadcasters hold commercially allocated analogue licenses which could conceivably be converted to digital use. However separate spectrum licenses for each regional broadcaster have not been envisaged. Digital technology is very efficient in its use of spectrum, enabling about 8-10 digital television services¹⁹ to be combined (or ‘multiplexed’) on one UHF digital licence. This is fundamentally different from the analogue system where one licence is required for each television service, whereas digital licences are designed so several services can be carried on one licence. Where workable, regional broadcasters will therefore need to access transmission capacity on available licences in their local area rather than acquire a full licence.

The licences currently operated by TVNZ and MediaWorks are currently used for their own services while the licence held by Kordia provides carriage for non-licence holding broadcasters (including some regionals). There is capacity for some additional services to be carried provided that regional broadcasters only seek to transmit in their current areas. Some further “regionalisation” of the Kordia network may be necessary.

If there is inadequate capacity available, it may be necessary to consider a further licence allocation process. This is considered in Section 5 of this paper.

Question 25

What difficulties or opportunities do you perceive for your regional service in gaining access to transmission capacity on digital licences held by another party?

Question 26

Could you envisage co-operating with other regional broadcasters to share a digital licence?

If so, how would this work?

Question 27

What other options are there for providing licence capacity for regional broadcasting?

How would you envisage these working?

Footnote

¹⁹ In the digital system, it is technically more correct to refer to a television service or “programme” rather than a channel, as several services will occupy the one frequency or channel. Under the analogue system, one service uses one frequency or channel.