Digital Broadcasting: Decoder Boxes (Hansard, 23 June 1998)

§ Lord McIntosh of Haringey
My Lords, as I told the House in April, the design of the receivers of broadcasting services is a matter for the manufacturers and broadcasters operating on those platforms, subject to the relevant regulations and licence conditions which apply. It is still not clear whether the digital receivers which will go on sale later this year will provide access to both digital terrestrial and digital satellite services. The Independent Television Commission which licenses and regulates all commercial digital television issued a consultation paper on interoperability and open access on 13th May. The ITC is discussing the issues set out in that consultation paper with all interested parties, including digital satellite and terrestrial television broadcasters.

§ Lord Razzall
My Lords, in thanking the Minister for that response, which is very much in line with his Answer to a Question that I tabled three months ago, does the noble Lord agree that this is a significant issue in which the Government have an interest? Does he agree that if the result of the consultation exercise that is being carried out by the ITC is that people will have to buy decoder boxes to watch digital terrestrial that are different from those required to watch satellite television it will be a significant set-back for the Government's digital television programme? Does the noble Lord agree that the danger is that the switch-off of analogue television that the Government want to see as soon as possible will be postponed?

§ Lord McIntosh of Haringey
My Lords, the Government have an interest in the sense that it would be deplorable if there were no interoperability between digital satellite and digital terrestrial broadcasting and, therefore, members of the public had to buy two set top boxes. It would not be quite as bad as that because, as in France and Italy, it would be perfectly possible to establish Simulcrypt arrangements whereby both sides provided interoperability. Although the Government's interest on behalf of the public is clear, it does not extend to being able to dictate to the broadcasters what they should do.

§ Baroness O'Cathain
My Lords, is it government policy that all terrestrial channels should be available on digital satellite and, if so, why?

§ Lord McIntosh of Haringey
My Lords, the Government do not have a policy on these matters. This is a matter for the Independent Television Commission as I indicated to the noble Lord, Lord Razzall.

Viscount Astor
My Lords, does the Minister agree that the ITC has insisted that both terrestrial digital and satellite digital should be compatible but what is needed is a commercial agreement between the two companies? Further, does the noble Lord agree that in order to make the two systems interoperable a simple adapter is required to operate the two systems, bearing in mind that in order to receive digital satellite one must buy a new satellite receiver and dish?

§ Lord McIntosh of Haringey
My Lords, I am afraid that it is more complicated than that. It is not just a matter of having a commercial agreement. There are two levels of interoperability: one is the application's programming interface and the other is what is provided for conditional access. The noble Viscount is quite right that it is possible to provide interoperability by way of an adaptor or sidecar that goes on the back of the BDB set top-box, but that does not meet all of the requirements of interactivity; still less does it provide for a full electronic programme guide.

§ Lord Monkswell
My Lords, can my noble friend confirm or deny the statement of the noble Lord, Lord Razzall, that it is government policy to close down analogue broadcasting of television channels? The noble Lord's statement appeared to imply that everyone would be forced to enter the new digital era.

§ Lord McIntosh of Haringey
My Lords, I did not understand the noble Lord, Lord Razzall, to say that. The Government issued a consultation paper on the future of analogue broadcasting in February of this year. We have always made it clear that, although it is too early to set a date, we do not want to close down analogue television until digital is at least as widespread as analogue television is today.

The Viscount of Falkland
My Lords, does the noble Lord agree that one will have take-up of these new services only when the public is offered something simple and cheap on top of the box? At the moment one has a battle between two titans, British Digital Broadcasting and BSkyB, for perfectly good commercial reasons. That process may take some time. How long will the Government tolerate the continuation of that battle and when will they wish to intervene?

§ Lord McIntosh of Haringey
My Lords, I am not sure that I follow the noble Viscount's somewhat emotive language. To an extent he is right. Clearly, it is in the public interest and also in the interests of both digital satellite and digital terrestrial television for the two systems to be interoperable, because that is the way 113 in which digital television will catch the public imagination and develop successfully. Unfortunately, that recognition does not yet appear to be in the minds and hearts of both broadcasters.

§ Lord Thomson of Monifieth
My Lords, can the noble Lord give the House an estimate of the cost of one box, if not two?

§ Lord McIntosh of Haringey
My Lords, it is difficult to say what the boxes will cost. The price will start high and go down as demand increases. If demand is held back by the need for two set top boxes, clearly it will take longer to get down to the £200 or so which we expect with mass production.

§ Lord Brougham and Vaux
My Lords, the Minister mentioned the word "sidecar". I thought a sidecar went on a bicycle. What is a sidecar in relation to a television set?

§ Lord McIntosh of Haringey
My Lords, among the many technical terms that I have had to learn, and which I have tried to spare the House, is the word "sidecar". It means the adaptor put on the back of the set top-box. It is nothing more complicated than that.