Jackie Kelly (Lindsay, Liberal Party) Share this | Hansard source

On behalf of the Standing Committee on Communications, Information Technology and the Arts, I present the committee’s report entitled Digital television: who’s buying it?, together with the minutes of proceedings and evidence received by the committee.

Ordered that the report be made a parliamentary paper.

On behalf of the Standing Committee on Communications, Information Technology and the Arts, I am pleased to present this report on the uptake of digital television in Australia. In presenting the report, I must say that its tabling occurs at a time of discussion on changes in the broadcasting industry, particularly concerning the uptake of digital television. The committee trusts that its report will provide significant discussion and direction for the Australian government’s policies.

This report has examined the options for ensuring the smooth transition to digital television in Australia, taking into account the cost of continued simulcast and, in particular, the impost this places on regional broadcasters. The report has considered the financial burden that conversion to digital may place on the community, from the purchase of set-top boxes and ancillary equipment, such as updating antennae, to how to minimise the cost over an appropriate time frame. The report has also considered the needs and responsibilities of manufacturers and retailers in providing appropriate lead times and adequate product information.

To date, few Australians have bought into digital television technology. A low market base has limited the features and programming that are offered on digital television stations, which in turn has reduced its appeal for many viewers. A lack of consumer awareness has compounded the problem. The committee believes that the lack of certainty regarding analog switch-off is a key failure in the drive to take up digital television and recommends a nationwide analog switch-off on 1 January 2010.

Such a strategy will provide certainty for consumers, broadcasters, manufacturers and retailers. With switch-off certainty, manufacturers and retailers can begin awareness campaigns and will be able to plan production of digital reception equipment. Providing a certain analog switch-off date will ensure that the most competitive prices for digital equipment are offered to all consumers, regional as well as metropolitan. While the committee’s recommended switch-off date extends the scheduled switch-off date in some metropolitan areas by up to two years, it does not pose extended financial burdens on regional broadcasters to continue simulcasting for a prolonged period.

A key driver for the uptake of digital television is the availability of additional content to consumers. The committee believes that broadcasters should have the opportunity to make commercial decisions and offer a wider range of digital television services. These options have been tightly regulated until now. In line with the move to digital, the report makes a number of recommendations to lift restrictions on multichannelling. Ultimately, programming and broadcasting choices will be determined by market demand. The committee recommends that programming restrictions on multichannelling for national free-to-air broadcasters be lifted as soon as possible. A substantial investment has been made by the ABC and SBS to establish digital channels, yet programming restrictions severely hamper their viability. The restrictions also prevent utilisation of much of the archived ABC and SBS material.

The committee also recommends that commercial free-to-air networks be permitted to multichannel, if they choose to do so, from 1 January 2008. We believe that lifting multichannelling restrictions, and the subsequent provision of extra channels and services, will assist in driving the take-up of digital television, prior to our recommended 2010 analog switch-off.

The report makes several other key recommendations. The committee is of the opinion that high-definition broadcasting will drive digital television take-up amongst certain sectors of the population; therefore, the committee recommends that the current minimum high-definition broadcasting quota for free-to-air networks remain in place until 1 January 2011. Continued quota levels should be reviewed before that date. Maintaining high-definition quotas for the time being will ensure that Australian consumers have access to both standard-definition and high-definition broadcasting and that that choice exists in the marketplace as they make their consumer choices in the lead-up to analog switch-off.

The committee has also recommended that a testing and conformance centre for digital television equipment be established, with the Australian government to provide $1 million in seed funding in the first year. The committee urges the Department of Communications, Information Technology and the Arts to continue to work with industry and stakeholders to develop an appropriate model and set of objectives on how a new testing and conformance centre will be based. The committee is aware that there is a great deal of confusion amongst consumers concerning digital television equipment. The committee noted that energy rating and water rating label schemes are very useful guides for consumers in assessing and analysing products in the market. (Time expired)

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