§ Mr. AllenTo ask the President of the Board of Trade if it is his policy that additional regulation is needed to ensure fair access to conditional access services. [31915]
§ Mr. Ian TaylorAt present, conditional access services for subscription or pay television are provided by cable TV operators and by the satellite operator, BSkyB. The activities of these companies in respect of conditional access services are subject to general competition law, as well as conditions contained in the relevant licences issued under the Telecommunications Act 1984. The 1225W Government consider this sufficient to deal with any anti-competitive behaviour which might arise.
The introduction of digital television services will mean a greater role for conditional access services and associated subscriber management systems. The Government are keen to encourage the substantial investment needed to establish digital services in the United Kingdom, and to provide consumers with wider choice of programming.
The Government therefore welcome the agreement reached last week among EC member states on a draft directive on advanced television services. This will allow important technical standards to be established, paving the way for digital services. The directive also contains reference to the regulation of conditional access services, as a result of an amendment proposed by the European Parliament. The Government have secured agreement from all other member states and the Commission to interpretative declarations, making clear that this will provide an appropriate level of regulation for conditional access services—but not transmission networks—without leading to an unwelcome open access requirement, which would deter investment and delay the launch of innovative new services. Definitive versions of these declarations will shortly be released by the Council secretariat, and a copy will then be placed in the Libraries of both Houses.
§ Mr. AllenTo ask the President of the Board of Trade (1) what the Government are doing to encourage the development of a common digital platform; [31912]
(2) what assessment he has made of (a) whether conditional access systems will remain proprietary and (b) when a common digital platform will be developed; [31913]
(3) what steps the Government have taken to encourage the major media organisations in the United Kingdom to develop a common digital set-top box as opposed to proprietary systems. [31955]
§ Mr. Ian TaylorI am replying to these questions because of my responsibility for policy on broadcasting technology.
1226WThe United Kingdom Government have played an active role in bringing into being the European digital video broadcasting project—DVB—a body which now comprises about 150 organisations, including major media organisations in the UK. The DVB has been developing specifications for the transmission and reception of digital television signals, and, as a result, European standards for satellite, cable and terrestrial digital television, based on DVB specifications, have been agreed or are in prospect. The DVB has been successful in ensuring a high degree of commonality in these standards, which will greatly ease the development of set-top boxes designed to receive signals over more than one transmission medium.
The Government have also supported the adoption of a directive on the use of standards for the transmission of television signals. This stipulates that digital television services in the EU use a transmission system which has been standardised. The Government's earlier concerns that European Parliament amendments to this directive would deter investment in digital services have now been met by declarations to be adopted by the Council and Commission.
The directive also follows DVB recommendations on the provision of a common descrambling system in set-top boxes which have conditional access facilities. The DVB recognised that the most practicable way of countering the threat to pay-TV braodcasters' revenues from "piracy" was by using proprietary conditional access systems and have developed a "common interface" which, if fitted to a set-top box, would enable the use to "plug in" additional conditional access systems.
In general, the Government look to private investment to develop future digital conditional access or subscription television systems as part of the more general move by the broadcasting industry to introduce digital television services. Such systems are likely to include a proprietary element.
The Government's policy is to avoid impediments to private sector investment in digital television, whether terrestrial or satellite transmission. The advantages to UK-based industry and to the consumer of an early move to digital television are considerable.