Simon Coveney (Cork South Central, Fine Gael)
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I am seriously concerned about the Government's plans to roll out digital terrestrial television. At the start of the week, the company that was due to roll out the commercial element of the DTT programme, Boxer, pulled out of the deal.

Last summer the Broadcasting Commission of Ireland went through a long process of selecting a preferred tender and then granted a 12 year contract to Boxer to provide DTT across the country. It offered three multiplexes which would have been able to provide 30 channels on a digital platform. The other multiplex is controlled by RTE but RTE is rolling out the masts and infrastructure required to allow digital terrestrial television to work. It must roll it out anyway to provide free to air digital services by the end of the year. In reality, RTE can only afford to do this on the back of the revenue it was to receive from the commercial operator that was going to use the same infrastructure. That commercial revenue is now gone. The public service broadcaster, having spent €40 million rolling out infrastructure to facility the roll out of DTT, still needs to spend €60 million to complete the job because we are switching off analogue television services in 2012 so we must have a DTT to fill the gap. A revenue stream that would help to finance the roll out of the infrastructure has now gone.

No one in their right mind will want to switch to free to air digital terrestrial television. Why would they bother switching from an analogue service to a digital service if it is going to cost them money in terms of purchasing a set top box if they are only getting the same or fewer channels? Why would someone switch from a Sky or cable subscription if he will only receive five channels? The DTT programme is now a shambles. RTE is being exposed to enormous costs to continue the roll out but it does not have the money needed.

The Broadcasting Commission of Ireland and the Minister have responded by saying there were three companies interested in rolling out commercial DTT in Ireland so we will go to the second preferred tender, One Vision, a joint venture involving TV3, Setanta and Eircom. It does not take a genius to work out these three companies face financial difficulties at present and are not in a position to spend the kind of money needed to roll out a DTT service across the State. The structure that has been put in place is not the Minister's fault but the Minister must get involved and recognise that the structure is broken. The public service broadcaster has been left holding the baby and the State must concede that a new tendering process is required. The Minister must sit down with the BCI to figure out a new way to deliver digital television to Irish people on a free to air basis, as well as on a commercial basis. The current plan is broken and we must recognise that and fix it. Time is of the essence if we are to reach the deadline of switching off analogue television by 2012. We cannot do that unless we find a way forward, and quickly, for the three multiplexes and their management for commercial DTT.

Seán Haughey (Dublin North Central, Fianna Fail)
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The Broadcasting (Amendment) Act 2007 puts in place a flexible framework for the licensing of digital terrestrial television, DTT, into the future. The Act provides for the establishment of a free to air DTT service to replace the existing analogue terrestrial services offered by RTE, TG4 and TV3. The Act also provides for the development of commercial DTT services, which are anticipated to provide further choice to those who wish to avail of additional channels to the Irish free to air channels. The current model proposes that RTE operate a single public service multiplex which provides access to the free to air Irish TV channels and that the Broadcasting Commission of Ireland, BCI, will offer licences for three commercial multiplexes.

Under the Act, RTE, BCI and the Commission for Communications Regulation, ComReg, have obligations to provide for the roll-out of DTT and to assist in the development of a plan for analogue switch off. The public service multiplex, being provided by RTE, will carry the existing RTE One, RTE Two, TV3 and TG4 channels and will have the potential to carry a further four public service television channels. RTE has already significantly progressed the roll-out of the public service multiplex and has indicated that services can be launched on a phased basis starting in autumn this year. It is expected that the first phase of DTT services will provide coverage of about 85% of the country.

On 7 March 2008, the BCI issued a call for applications for the award of a contract or contracts in respect of the operation of three national commercial DTT multiplexes and received applications from the following three consortia: Boxer DTT Limited, a consortium comprising a Swedish company, Boxer, Communicorp and BT Ireland; One Vision - a consortium comprising Eircom, TV3, Setanta and Arqiva; Easy TV - a consortium comprising RTE and UPC's parent company, Liberty Global. On 21 July 2008 the BCI announced its intention to enter into contract negotiations with Boxer DTT Limited for the award of the three national commercial DTT multiplexes.

On 20 April 2009, the BCI announced that Boxer DTT Limited had withdrawn from contract negotiations. Boxer cited prevailing and anticipated economic circumstances, in addition to challenges in agreeing the terms of a contract with RTE Networks Limited, to the satisfaction of both parties, for the provision of transmission services by RTE Networks Limited. The BCI has now approached the One Vision consortium with a view to entering into contract negotiations for the award of the three national commercial DTT multiplexes.

The BCI has confirmed that it is committed to pursuing the development of DTT services in Ireland and will continue its work in that regard. The Minister has no plans, at this time, to re-evaluate the process by which a commercial DTT licence is granted and expects RTE to deliver on its public service obligations. The switch off of the national analogue broadcasting system is planned to take place by 2012 and will bring major benefits by the reallocation of valuable wireless spectrum for other use. In this regard the Minister is closely monitoring the progress made by RTE, ComReg and the BCI in relation to the development of Irish DTT services.

A working group has been established - comprising representatives from the Department of Communications, Energy and Natural Resources, RTE, BCI and ComReg - to begin work on planning the steps necessary to achieve analogue switch-off. The Minister is cognisant of the fact that most European countries expect to switch off analogue services by 2012 and he remains committed to meeting this deadline so that Ireland can continue to compete at an international level in the broadcasting and broader communications markets. Both RTE and the BCI are also aware of the importance of meeting this deadline.