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S U B M I S S I O N

FAIRFAX'S POSITIONS ON DATACASTING

Establishing a viable datacasting and digital TV industry depends on 4 key issues:

  • the adoption of a broad definition of datacasting which will allow innovative new services;
  • the government requiring that all HDTV signals be accompanied by a SDTV signal within the same 7MHz channel so Australians can use cheap, world standard set top boxes (STBs);
  • the adoption of STB standards that ensure interoperability and allow consumers to choose a basic STB rather than an expensive STB with enhanced HDTV functionality; and
  • the efficient planning of spectrum to allow the maximum number of new services.

Broad Datacasting Definition

Fairfax’s position is that a broad definition of datacasting should be achieved by refining the definition of broadcasting to focus on its well understood characteristics (continuous stream of audio and video programming; broadcaster rather than user control of content; and all viewers experience same content at same time). This broad definition of datacasting would allow all interactive services, irrespective of whether the interactivity was achieved at the STB or at the transmission source, as well as certain non-interactive multimedia services with only a limited amount of unrepeated audio and video.

In the recent round of submissions on the datacasting and enhanced programming definitions, 8 out of the 11 submitters including Telstra, News Corporation, the ABC, the Australian Consumers Association and NTL advocated a broad datacasting definition. Most also advocated a definition based at least partly on the concept of interactivity, while some also recognised, as Fairfax has, that the datacasting definition should allow some non-interactive content as well as interactive content.

HDTV must be accompanied by SDTV

Australia is alone in the DVB world in proposing (as FACTS has) to transmit HDTV with Dolby Digital sound without any accompanying SDTV digital signal. All 18 other DVB countries (the UK, all of Europe, Singapore and India) have adopted an approach of broadcasting SDTV at all times, with HDTV being transmitted as an optional extra, if at all.

The STBs being produced for the more than 1.4 billion consumers in these DVB markets are only capable of decoding SDTV and will go blank if a HDTV only signal is broadcast. American STBs are not compatible with the DVB transmission standard adopted by Australia. If SDTV signals are not broadcast with HDTV, Australia will become a digital TV backwater cut out of the world market economies of scale and consumers will pay much higher prices for STBs.

The transmission of both HDTV and SDTV within the FTA broadcasters’ 7MHz digital channel is not only technically feasible, it is the HDTV implementation method advocated by the chairman of the relevant DVB committee. Most consumers will suffer if HDTV only is adopted because technical studies have shown that HDTV only transmissions will produce worse pictures on PAL and SDTV sets than SDTV transmissions (because of the need to upconvert and downconvert).

Requiring the simultaneous transmission of SDTV whenever HDTV is broadcast preserves the governments original policy decision to adopt HDTV while ensuring compatibility with the rest of the world.

STB Standard

Fairfax is advocating STB standards which allow consumers to choose a cheap SDTV only STB, rather than an expensive STB which will receive and output HDTV signals. If an SDTV STB is not included in the Standards Australia receiver specification, this will mean:

  • consumers will pay hundreds of dollars more for a STB;
  • all consumers will be paying for features such HDTV decoding and Dolby digital sound that only a few will have the equipment to use (i.e. HDTV display and Dolby Digital amplifier);
  • Australia will be unable to import world standard STBs and will have little or no overseas market for STBs produced here.

It is therefore critical that Standards Australia includes a standard definition STB as part of the terrestrial digital TV receiver standard; or the government must intervene to require it. Consumers should also be able to purchase them without being subject to the fear that their screens will "go black" (as FACTS has threatened). This can be achieved by requiring SDTV to be simulcast with HDTV as outlined in the point above.

Efficient Spectrum Planning

The broadcasting spectrum is a valuable public resource that for too long has been allocated in a way that minimises broadcasters’ costs rather than maximises efficient use of the spectrum. The move to digital TV provides the opportunity to use broadcasting spectrum far more efficiently.

In particular, the biggest waste of spectrum is the use of additional 7Mhz channels for translators to fill in gaps in the coverage of the FTA broadcasters’ main transmitters. This can be avoided by:

  • the widespread use of single frequency networks (SFNs) which allow the main transmission frequency to be reused for translators;
  • minimising coverage gaps by using conditional access systems (encryption) rather than reduced transmission power to prevent reception outside of a broadcaster’s licence area.

Studies indicate that efficient spectrum planning can create at least eight new 7MHz digital channels around Australia, of which three can be for new entrant datacasters.

24 August , 1999

 

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