Dáil Éireann Debate, Tuesday - 27 April 2010
48 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the plans he has in place to facilitate the roll out of commercial digital terrestrial television, DTT, should the consortium (details supplied) fail to reach agreement with RTE and the broadcasting regulator. [16855/10]
Amharc ar fhreagraPart 8 of the Broadcasting Act 2009 provides for RTE to develop a free-to-view digital broadcasting service as a replacement for the national analogue television service offering access to RTE 1, RTE 2, TV3 and TG4 and for the subsequent closure of the national analogue television service.
The Act also provides opportunities for the development of a commercial digital terrestrial television, DTT, service. The Broadcasting Authority of Ireland, BAI, an independent regulatory authority, is required to provide for the development of commercial DTT services.
The BAI's predecessor, the Broadcasting Commission of Ireland, BCI, initiated a competition for a commercial DTT service provider. The highest placed consortium withdrew from the process in April 2009. As a result, negotiations commenced with the next placed bidder, OneVision, which are still ongoing.
As stated in earlier replies to this question, I am not prepared to speculate or hypothesise on the outcome of what is a commercial licensing process which is a matter for the independent regulator, the BAI.
I have made it clear to the authority that I would like to see this process concluded as soon as possible so that clarity and certainty with regard to commercial DTT can be provided to broadcasters and viewers alike. However, the legislation does not provide for a role for me, as Minister, in the competition process for a commercial DTT service.
My priority, in accordance with national policy is to provide for the closure, in 2012, of the analogue free-to-view broadcasting service. The European Commission has set 2012 as the timeline for analogue switch-off across Europe and the Council of Ministers has asked member states to complete switch over by 2012 in so far as possible. It is my intention that this switch off will be no later than the last quarter in 2012. RTE is aware of this and is supportive of the deadline for analogue switch-off.
In this regard, and in the continuing absence of commercial DTT, I recently signed an order, S.I. No. 85/2010, RTE (National Television Multiplex) Order, under section 129 of the Broadcasting Act 2009 requiring RTE to launch a free-to-view DTT service to approximately 90% of the population by 31 October 2010.
The 2009 Act also requires RTE to provide the full national free-to-view digital service, capable of carrying RTE 1, RTE 2, TG4 and TV3, by the end of 2011, or such date as I may specify. I have informed RTE the date for the provision of a national service is 31 December 2011.
Additional information not given on the floor of the House
From a broadcaster perspective, the development of DTT services provides more for television viewers in terms of choice and services. The RTE multiplex has sufficient space for eight to ten TV channels, radio channels and electronic programme guides and the legislation provides for RTE to exploit space on the multiplex for commercial purposes. A second RTE multiplex, provided for under the 2009 Act, provides for RTE to roll out high definition, HD, services which will also be made available to TV viewers in Ireland on a free-to-view basis.
More significantly, there are considerable economic benefits for Ireland resulting from the switch off of the analogue broadcast services and the consequent release and reuse of this valuable spectrum, which is known as the digital dividend. The digital dividend is a clear enabler of economic and social growth. By extrapolating from a recent European study, the value of the digital dividend to Ireland is expected to be between €2 billion and €10 billion, over 15 years. In this regard, it is vital for Ireland's economic health that this spectrum is released as early as possible.
I raised this issue more than a year ago because I was concerned the tendering process to provide a commercial DTT service was collapsing, following the pull-out of Boxer which had won the competition. I am not asking the Minister to interfere with the competitive tendering process. However, will he recognise the tendering process put in place two years ago to ensure a commercial DTT operation and to facilitate the viability of a free-to-air service will not achieve this?
It is my understanding the negotiations between OneVision and RTE have broken down.
Does the Deputy have a question?
Please allow me to finish because this is important. The Minister bluffs every time he is asked this question, claiming he has no responsibility in the matter, and just sets the date for when RTE must do the business.
The first and second chosen bidders are out of the equation.
They are gone.
The remaining and only other bidder involves RTE itself.
When does the Minister intend to intervene to put a new policy structure in place to get commercial DTT multiplexes up and running? Will he continue to let the BAI handle the process while he takes a hands-off approach when everyone involved concedes it is collapsing?
The legislation passed by this House gives the BAI that task. Yes, I would like to go back to 2006 and change the legislation——
It is the tendering process I am raising.
——but one cannot undo legislation is such a manner. It is not appropriate for the Minister to ignore the legislation and the authority the BAI has to implement the task set out for it. When it is unable to complete the task and decides what the process should be, I will happily look at taking other action. It would not, however, be appropriate for me to ignore the legislation in the middle of a process which has large commercial implications by taking over the role given to the authority by this House four years ago.
The Minister is saying that the process he set up through legislation——
It was set up by the previous Government.
Yes, but the legislation in question is now the Minister's responsibility.
The first two preferred bidders in the tendering process established by the legislation are out of the game. Will the Minister confirm he expects the BAI to move on to the third best bidder? It may not have been a chosen operator at all but, because it was the last man standing, it could potentially be the next operator of commercial multiplexes. That is not the way to roll out digital television. The Minister needs to ask the BAI if it is satisfied that it has exhausted the tendering process set up by the previous Government and how it should deal with the matter as time is running out. At what stage will the Minister have that meeting or will he continue to keep his head in the sand while the system collapses?
I have had a series of meetings with all parties involved on the State side including the Broadcasting Authority of Ireland, the Networks company and ComReg, which has had a role in this on the spectrum side. At all stages I have done that on the basis of trying to get an outcome. I regret that that outcome has not come quicker and that the negotiations have taken so long. I have said that repeatedly in the House. However, my response cannot be to get involved in the middle of what could be a difficult legal and commercial process. That would only draw it out longer. I have said to all parties at a certain point that when it comes down to the commercial negotiations it is up to the BAI, RTE and the other parties to work through that. It would be wrong and improper if the Minister took on the negotiating position. It must follow the legislative course and if that comes to an end, we will act but we have made it clear that regardless of that process the switch off will occur at the end of 2012. That is certain, and that gives me confidence that we will get an outcome that will work.
There is no market for DTT without a commercial service.
I am deeply unsatisfied with the delays that occurred but that is the difficult commercial world we live in and I would not make that any easier by stepping inside——
There is no market for DTT without a commercial service. The Minister knows that.
