Senator the Hon Stephen Conroy

Minister for Broadband, Communications and the Digital Economy

DEPUTY LEADER OF THE GOVERNMENT IN THE SENATE

Address to the Australian Broadcasting Summit, Sydney, Wednesday 26 March 2008 

It is a pleasure to be here today at the Australian Broadcasting Summit.

This summit represents, amongst other things, a unique opportunity to discuss developments in broadcasting.

Today I would like to talk with you about one particular development that is shaping the future for Australian consumers and for Australian broadcasters.

This is, of course, digital television.

As many of you here today are aware, Australia is part of a world-wide move to introduce digital TV services.

Already a number of countries, such as the Netherlands, Sweden and Switzerland, have completed switchover and many others, such as Germany and the United Kingdom are in the process of doing so.

Switchover is both exciting and important for all Australians.

It will free up scarce transmission spectrum for the delivery of new and improved broadcasting and communications services .

This benefit is known as the “digital dividend”.

The freed spectrum is potentially available for reallocation and sale for new services such as wireless internet, mobile telephony and broadcasting.

The digital dividend is clearly a major benefit of digital switchover and one eagerly anticipated by industry.

Digital television also provides substantial consumer benefits such as:

• better picture and sound quality;
• extra services and features such as interactivity, multiple camera angles and an Electronic Program Guide (EPG) and
• greater viewing choices, with access to High Definition and Standard Definition channels.

Already in Australia , we can see many of these benefits on both free-to-air and subscription TV.

On free-to-air TV, viewers today have access to a range of additional content and channels including high-definition channels from Channels 7, 9 and 10 and standard definition multi-channels from the ABC and SBS.

Additionally, the recent re-branding of ABC TV as ABC1 and ABC2 and the announcement of the ABC's new 24-hour continuous news centre are reflections of the digital world all broadcasters now operate in.

With subscription TV it is now the case that in just over a 30-month period, FOXTEL now broadcasts 100 per cent in digital.

FOXTEL's digital broadcasts enable subscribers to:

• utilise FOXTEL's iQ to record what they want when they want;
• make use of additional interactive services such the ability to choose multi-camera angles on various sporting broadcasts; and
• operate FOXTEL's electronic program guide (EPG).

It is no secret, however, that digital television has been slow to take hold in Australia since its introduction in 2001.

This slow beginning can largely be seen as a result of a lack of initiative and drive by the previous Government in this area.

Under the previous Government, for example, no firm switchover date was set and no consumer education was undertaken.

There was industry uncertainty, broadcasters were not active in driving take-up and there was little focus to drive consumer interest.

Well, times have changed. The Government has changed. The attitudes of the broadcasters have begun to change.

And the attitudes of consumers are now changing too.

From 2009, existing regulations will allow the commercial broadcasters to offer further content through an additional standard definition channel within their existing spectrum.

It is pleasing to hear that the commercial broadcasters have all declared an intention to take up this option in 2009.

The global media industry is well on the way to digitising the entire production chain whereby images are captured, processed, played out and transmitted in digital format across a range of platforms including TV.

Of course, it is not only broadcasters who are jumping on board.

The manufacturing industry is continuing to promote its own digital technology with an emphasis on high-definition viewing.

Major television manufacturers are rapidly moving towards a product range that is wide-screen and entirely digital featuring an in-built digital tuner.

This integration along with generally decreasing prices in the market is leading to increased availability and choice, and making it easier for households to become digitally ready.

When you start talking about broadcasters, manufacturers retailers, and customers, you begin to see just how many stakeholders are involved in the switchover process

This certainly highlights how absolutely vital industry consultation is, and I will speak more about this shortly.

Switch-off date

The Rudd Government is serious about digital television and we are serious about completing the switchover by 31 December 2013.

Analogue to digital switchover could well be the largest change on a national scale since the introduction of decimal currency in 1966.

It will affect:

• every household and dwelling in the nation; and
• every TV receiver in every living room, bedroom, study or kitchen, including receivers in VCRs and other recorders.

According to ACMA's 2006 survey, Digital TV penetration had reached 30 per cent in Australia .

I expect the 2007 survey results to be published soon, but what this shows is we still have a long way to go and there are many challenges ahead.

The end date for digital switchover is December 2013.

We recognise there is a role for the Government to play in driving digital switchover in order to reach this target.

That is why the Rudd Government is prepared today to commit a further $37.9 million dollars to drive digital television.

This funding comprises five key elements, which I will now detail.

Digital Switchover Taskforce

Firstly, the Government will commit $16.9 million towards the Digital Switchover Taskforce, established within my Department.

This funding will ensure that the Taskforce can carry out its role in co-ordinating and managing the many complexities of the switchover program.

I am confident that the Taskforce will do a remarkable job to make sure that Australia meets the 31 December 2013 deadline for digital switchover.

Digital Tracker

Secondly, of critical importance to the management of digital switchover is the ability to measure consumer behaviour and to gauge the success of the switchover program.

To do this, the Rudd Government will commit $4.8 million to establish a ‘Digital Tracker'.

The ‘Digital Tracker' will assess a range of factors that affect a household's readiness to convert to digital TV.

These include public awareness of digital switchover, intention of households to convert, and actual conversion rates.

The Digital Switchover Taskforce will conduct quarterly national market research and prepare a summary and a report of the results of this research.

These measures will:

• facilitate monitoring and reporting on the progress of switchover;
• provide an indication of Australia 's digital readiness; and
• assist the Digital Switchover Taskforce to identify areas requiring attention.

The report will operate as a management tool to enable the Taskforce to respond to the individual requirements of a region when preparing for and assessing the success of analogue switch off.

The Digital Tracker will be a vital tool for planning and implementing the enormous logistical exercise that is converting every household to digital.

It will also help inform industry and stakeholders in their efforts to promote digital uptake.

The Digital Tracker's importance to digital switchover is unambiguous and that is why it is one of our first priorities in the switchover process.

Multi-Unit Dwelling Research

Thirdly, the Rudd Government recognises, of course, that there are some potential barriers to switchover and we are committed to addressing these.

A key issue identified by industry is the digital reception problems in multi-unit dwellings with a shared TV antennae system.

These multi-unit dwellings include such premises as units, flats and apartments, and some hotels, hospitals and schools.

The Government will commit $1 million to fund research in this area over the next two years.

The Taskforce will also establish ways to engage the many stakeholders involved in converting these dwellings to digital.

This will identify the extent of the issues and will assist industry in finding best practice solutions to address them.

Logo development

Another key ingredient recognised by the Government in the switchover program is consumer information.

Research* currently indicates that some 100,000 new televisions are purchased every month [* Most recent Sony Benchmark Report , researched by GfK].

As we move towards digital switchover, it is important that consumers purchasing new equipment know what they are buying and whether it will meet their future needs.

Digital switchover also involves new technology and new terminology, which we recognise may lead to some confusion among consumers.

In order to simplify the process and help people deal with these changes, the Government will commit $6.7 million towards a logo and labelling scheme for TV equipment and services.

The new labels will clearly indicate which products are digitally ready and those that are not.

This will ensure Australian consumers can be informed and confident about which products will suit their needs.

ACMA research

I would like to announce that the Government will provide an additional $8.5 million to the Australian Communications and Media Authority (ACMA).

This will allow ACMA to undertake additional technical switchover-related projects, such as an evaluation of the digital TV transmission and reception throughout Australia .

Industry Advisory Group & Consultation

As I mentioned earlier, consultation with the many stakeholders involved in the switchover process is vital to its success and its timeliness.

Accordingly, I have additionally established an Industry Advisory Group which brings together broadcasters, retailers, manufacturers, antenna technicians, public and commercial housing agencies and government departments.

The Industry Advisory Group will be very important to the work of the Digital Switchover Taskforce.

It will provide support, advice and act as a sounding board in the development of a coherent cross-industry strategy to raise awareness of switchover, build understanding and drive digital take-up.

Additionally, there are four working groups which will meet separately and report to the Industry Advisory Group .

These working groups will cover the areas of:

• Communications;
• Transmission and Spectrum;
• Supply Chain; and
• Housing & Buildings.

This is where the real work toward switchover will be done and these working groups are a vital part of making sure the many challenges ahead are dealt with in an effective and appropriate way.

I will address the first meeting of the Industry Advisory Group on 9 April 2008.

As a first priority, we need industry cooperation in the development of a workable switchover timetable, driving the complete switch off of Australia 's analogue signals by 2013.

This is vital so that consumers from Perth to Cape York will know when the analogue signal in their area is to be turned off and — before it is — what they must do to prepare.

Consultation on the switchover timetable will start immediately, and I expect that all industry stakeholders will contribute positively to the complex planning effort involved.

After appropriate consultation, I expect to announce an indicative switchover timetable at the end of 2008 .

And so, in conclusion.

As I have pointed out today, the Australian Government is serious about achieving Digital switchover and ensuring Australians can enjoy the many benefits it offers.

Too much has time has passed since the introduction of digital television;

• with too little action on the part of industry to drive take-up;
• and too much Government inaction.

Well no more.

The Rudd Government recognises that there is a great deal of work to be done in order to ensure a seamless transition to digital switchover in 2013.

And it is prepared to roll up its sleeves to get this work done.

We have established a sound framework to meet the challenge and today committed an extra $37.9 million to ensure that it is done without delay.

Today we have laid yet further foundations to ensure that the nation's journey to digital switchover will be as smooth as it can be.

We recognise that industry cooperation is a vital part of achieving digital switchover and we look forward to working closely with many of you here today in the months and years ahead to achieve this end.

[END.]