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Fairfax
Submission to Productivity Commission - Executive Summary
- Early
release of the spectrum allocated to analogue television broadcasting,
which is currently planned to be utilised in simulcast alongside
digital transmission, would speed up the digitalisation of Australian
broadcasting, provide consumers with more choices and produce net
economic benefits to the community
- Current
planning favours a roll-out of digital transmission technology using
High Definition standards, with a simulcast period of at least 8
years subject to review in 2005
- However,
discussions are underway regarding the choice of transmission standards
between High Definition (HD) and Standard Definition (SD) digital
broadcasts, including the dual transmission of HD and SD.
- The
choice of HD alone over dual HD/SD transmission is inefficient,
as it removes choice and increases costs to the community from HD
equipment which are not compensated by significant improvements
in the quality of the picture, particularly on existing television
sets, or those with smaller screens.
- Furthermore,
the adoption of HD alone limits the range of broadcasting choices
available to the Australian public, as the number of channels and/or
services would be greater with a SD standard
- With
consumers facing the prospect of significant price increases attached
to HD digital television, unless they also perceive significant
benefits the migration to digital will be slow and valuable spectrum
will continue to be required for analogue simulcast
- The
economics of early release indicate strong benefits to the community:
- The
likely value of the spectrum released ten years early (~$4.3B)
would more than compensate for the cash costs ($3.7B) associated
with the installation of SD set-top boxes throughout Australia,
while uniquely providing Australia with universal digital infrastructure
- Social
benefits from an early release would more than compensate social
costs incurred for the roll-out and avoid the potential for pockets
of digitally disadvantaged within the community
- Government
should therefore actively consider undertaking a program to capture
these economic benefits by accelerating the move to digital television
by all Australian households.
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