By RICHARD BRADDELL
TVNZ and Telstra Saturn are setting up a digital television service that will be beaming into homes by April.
The service will give viewers access to free-to-air channels, e-mail and the internet, as well as some pay-TV channels - in direct competition with Sky Television.
The TVNZ-Telstra deal will give viewers a choice of 16 channels to be transmitted from a satellite operated by the Australian telecommunications company Cable & Wireless Optus.
Although the deal is costing TVNZ $10 million, the initial set-up cost to the viewer will be relatively cheap - about $300 for a "set-top box," which sits on top of the TV.
Digital broadcasts offer better-quality sound and vision and can be picked up anywhere in the country.
In addition to developing interactive content for TVNZ and Telstra Saturn, the two companies expect to use their combined strength to secure better programming deals.
TVNZ will also help Telstra Saturn to improve its local content, potentially using its archives and news services to provide in-depth content more suited to a pay-TV operator.
Telstra Saturn has begun building a pay-TV and telephone network in Auckland.
It has been operating in Wellington for several years and expects a network that is now near to completion in Christchurch to be operational next February.
The joint venture will also make capacity available to Government departments and agencies which want to use digital services to reach parts of New Zealand.
TVNZ going digital by April
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