Net access decoder bait

By SIMON HENDERY media writer

Television New Zealand and TelstraSaturn may offer discount internet access as a way of enticing viewers to fork out for set-top boxes to receive their planned digital service.

TVNZ executive Chris Lambourne told a digital television conference in Auckland yesterday that market research showed strong customer demand for television-based internet access.

Mr Lambourne, who is also chief technology manager for the TVNZ-TelstraSaturn joint venture, said offering a special deal on such a service was one option to encourage the sale of decoder boxes, which are expected to cost $200 to $300.

TVNZ and TelstraSaturn said last November that they were going into partnership to launch a nationwide satellite-based digital service to beam out TVNZ's two channels, other free-to-air broadcasts and pay channels.

The service is due to be launched by the end of June.

Mr Lambourne told yesterday's "Television@Evolution" conference that TelstraSaturn's existing internet service provider business could be a springboard to offer viewers the television-based system.

The joint venture had yet to finalise a supply of set-top boxes, Mr Lambourne said, but they would include a built-in modem to connect to customers' phone lines.

TVNZ and TelstraSaturn aimed to keep their technology options open to allow compatibility with Sky Network Television's decoder boxes, he said.

"We'd love to have interoperability with Sky, but it's not something we are going to be held hostage to."

If a deal on decoder compatibility is not struck, viewers will need two set-top boxes to receive both services.

Australian-based interactive television consultant Miranda Dyson told the conference that NZ viewers were poised to benefit from a price and content war between competing digital broadcasters, although there could be "huge cost implications" if a single platform was not agreed upon.

Miss Dyson said Britain's BSkyB pay network offered subscribers a free e-mail service, which increased customer loyalty and provided advertising opportunities.