TVNZ digital just six months off

By RICHARD BRADDELL and CHRIS BARTON

TVNZ and TelstraSaturn are going ahead with their digital satellite television joint venture, which will be kicked off in time for All Black internationals at the end of the year.

The duo announced yesterday that they had finalised an alliance, outlined last November, in which TVNZ would launch a digital free-to-air service on October 1, and TelstraSaturn a pay TV satellite service in the third quarter of this year.

The partnership is a major challenge to Sky Television, and TelstraSaturn has already signalled its intent by outbidding Sky for rights to All Black internationals against Ireland and Scotland at the end of the year.

As part of the deal, TelstraSaturn has sub-leased a space from TVNZ on its satellite transponders that has the capacity to provide up to 23 digital channels.

But although the arrangement appears to bring more viewing choice to the consumer, it is fraught with complications.

To view any of the new services will require a TV set-top box and dish antenna, a setup much the same as for Sky's digital service. Viewers who want both Sky and the TVNZ or TelstraSaturn services will need two set-top boxes. TVNZ general manager of strategy James Munro said ideally TVNZ wanted "a one box and one antenna world," and that the only reason two were required "was commercial, not technical."

TVNZ and TelstraSaturn are hoping Sky will join the "open access" system it proposes, and that free-to-air providers other than TVNZ would join as well. Discussions are already taking place with CanWest about including TV3 and TV4 in the digital service.

Sky's director of communications, Tony O'Brien, reiterated the company's enthusiasm for the partnership when it was announced in November. He said it would be welcomed as long as the free-to-air signals complied with international MPEG2 DVB standards that would enable Sky to pick them up for its own satellite service.

"We can but reiterate our long-standing offer to carry the state-owned broadcaster's free-to-air channels, TV One and TV2, on our digital satellite network at no cost to the New Zealand taxpayer," said Mr O'Brien.

The stumbling block however appears to be differing encryption standards.

News of the deal came as TelstraSaturn announced that it had won the rights to this year's FA Cup final, to be played on May 13, depriving New Zealand soccer fans outside Wellington of coverage.

Wellington-based TelstraSaturn will show it only to their cable subscribers in and around the capital.

The final has been shown live throughout New Zealand since 1973 when, in one of the biggest upsets in cup history, second division Sunderland beat first division Leeds United 1-0.

VIEWER OPTIONS


* Do nothing. Keep your existing TV and the free-to-air channels it receives at present. Eventually everyone will need a digital TV.

* Buy a digital set-top box for your existing TV. These are not yet being sold in New Zealand but are likely to cost between $600 and $700 installed. You will need one of these and a dish antenna to get TVNZ's new digital free-to-air service starting in October. The box is likely to have the ability to make your TV interactive and provide e-mail and internet access.

* Subscribe to TelstraSaturn's service. Prices have not been worked out yet, but the service will include a subsidised TV set-box and antenna - probably for a monthly subscription cost similar to Sky.

* Subscribe to both TelstraSaturn and Sky. That is likely to mean you have two set-top boxes perched on your TV.

You will probably get away with one antenna, but only if Sky allows the installer to put a "splitter" box on the aerial wire running from your dish to the TV.