TVNZ and TelstraSaturn delay their digital service

The launch of TVNZ's long-awaited digital service has been delayed by several months while technical issues are ironed out with partner TelstraSaturn.

Both companies pledged yesterday that the satellite-based system would still be up and running in time for TelstraSaturn subscribers across the country to see live coverage of the November All Black tour of Scotland, Ireland and Argentina.

In January, TelstraSaturn, which has cable subscribers in Wellington and Christchurch, outbid competitor Sky TV for live rights to the All Black tests.

TelstraSaturn has been hoping to recoup the multimillion-dollar cost of the deal by signing up customers to the satellite system, which will also broadcast TVNZ's two channels free to viewers who buy a decoder.

In November, TVNZ and TelstraSaturn said they hoped to launch the service in April or May.

Early last month, a TVNZ executive predicted June, but yesterday TelstraSaturn said it would probably be July.

TVNZ chief executive Rick Ellis would commit himself only to a date "well before the end of the year." He denied industry rumours that the deal was at risk because the partners were arguing over technical issues, including quality of the set-top decoders needed to receive the signal.

"As the project has progressed, we've come to appreciate that there is a greater complexity of issues that have to be addressed, so we've become a little more circumspect about getting those things right," he said.

TelstraSaturn's director of corporate development, Deanne Weir, said a raft of issues had to be worked through. A likely launch date for the satellite service was "more towards July than August."

TelstraSaturn cable television in Christchurch begins today.