Broadcasters plan fast track on digital TV despite Maori claims

By Keith Newman

Free-to-air broadcasters are going ahead with plans to introduce digital television despite the postponing of this month's radio frequency auction forced by the Waitangi Tribunal.

The broadcasters claim they are exempt from the claims in a Waitangi Tribunal report, which asserts Maori rights over the radio waves. They say the Government's promise to "reserve" spectrum for free-to-air channels is outside any Treaty of Waitangi claims.

While cabinet is currently considering its response to the claims on the radio spectrum, including personal communications and digital TV management rights, it is now unlikely they will be up for auction until at least mid-2000.

The digital TV auction set down for this month is the second to be stalled.

The Ministry of Commerce auction of 2GHz frequencies was called off in March after the Waitangi Tribunal requested time for a full hearing and report.

While there is general annoyance across the telecommunications industry over the delays in opening up new communications options, free-to-air broadcasters are not too concerned.

Technically state-owned TVNZ and TV3 and TV4 owned by Canadian TV operator CanWest, along with Prime and Triangle, could establish a digital presence ahead of any auction.

Ministry of Commerce spectrum manager Hugh Railton agreed the Crown could allocate frequencies but there would need to be a revision by cabinet, which originally tied the eventual price paid to that reached at the auction.

He said everyone was treading very carefully over spectrum issues, although the ministry was now trying to work out the "optimum provision for free-to-air broadcasters".

The Television Broadcasters Council, representing the free channels, was involved in the discussions to determine the "reserved" spectrum, what coverage could be expected, and when they could get access to it.

Reserved spectrum was being set aside to broadcast digital alongside the existing analogue signal. It could not be used for adding any other value such as data transmission. The parties would have to wait for an auction to obtain additional frequencies for data casting, pay-TV or interactive services.

"Clearly our focus is on the reserved spectrum and working out the best and most efficient way to introduce digital television," said Bruce Wallace, chief executive of the council.

"At the same time as reserving spectrum for simulcast of digital television the Government also said it was reserving spectrum for a Maori television network, so everyone's being treated the same."

Mr Wallace said there was much planning to do, including building in infrastructure and whether that would be a shared investment by the broadcasters.

The Institute of Economic Research, in a broadcasting council-commissioned report, estimated simulcasting in digital format was likely to add $150 million to the overall operating costs of free-to-air stations over the next decade without adding a single cent in revenues.

Broadcast Communications, a wholly-owned transmission arm of TVNZ, has been transmitting digital TV pictures for test purposes for nearly a year and TV3 and TV4 are about to begin tests by sending their own digital signals.

The Waitangi Tribunal report, which follows a full hearing in April, recommends Maori be involved in any future auction of radio waves and planned auctions be delayed until they get "a fair and equitable" share. It is recommended Maori "retain a substantial ownership stake", even if they decide to lease some frequencies or enter joint partnerships. It also seeks compensation. A hui this month will further consider the claims.

In Australia spectrum has been allocated and broadcasters told exactly how they can use it. Here the process is a free-for-all with the free-channels being asked to pay an average of what is achieved at auction.

The sticking point will be determining a price when the auction has not been staged.