Ofcom Chief Calls For Confirmed Digital Switchover Date
Ofcom chief executive Stephen Carter has called on the Government to confirm a date for analogue TV switch off and warned of problems caused by increasing uncertainty and confusion among viewers.
Speaking at a seminar held by the Westminster Media Forum the regulator chief said that a report from Ofcom on digital switchover was submitted to the secretary of state for culture, Tessa Jowell, on Friday and that it would be published in full next week.
Carter acknowledged that digital TV has “by any standard, been one of the most successful market-led technologies ever”, but warned that, while the market alone could achieve somewhere between 75-80% penetration, unaided it will then “stall”.
He added that a confirmed switchover date is the single most important factor in pushing the switchover forward, stating: “A clear commitment from all the key parties involved, broadcasters, platform owners, manufacturers, retailers, government and Ofcom to a specific switchover date as soon as practicable it will be the biggest single galvanising factor to ensure, as a nation, that we meet the date.”
He added: “We recognise the social and political repercussions but we would call on all politicians to endorse this as a non-party political, UK PLC opportunity sooner rather than later.”
Carter explained that Ofcom have proposed a new body entitled SwitchCo be created to oversee progress towards full digital take-up. He said: “We need a more focused and purpose built vehicle for implementation. We’ve called it SwitchCo for short. In our view it should probably not be the sole preserve of any one of the individual parties. It should reflect the relative contribution of each party in achieving integration, but it also needs a good measure of autonomy to be effective.”
Ofcom have also proposed changes during the forthcoming BBC charter review to ensure the BBC’s commitment to delivery and rollout of switchover is on the same footing as that of the other terrestrial broadcasters. Ofcom have demanded that the corporation’s promotion of the switchover be neutral, favouring no particular digital platform.
Research published yesterday by the Department for Trade and Industry indicated that 50% of viewers in the UK are opposed to the Government’s plan to switch-off analogue television signal by the current 2010 deadline, while 5% of viewers claim they will never switch to digital television (see Government’s Digital Switch-Off Plan Alienates Viewers).
Concerns have already been raised over the quality of content on digital television with research by the Generics Group showing that the majority of digital refuseniks are more concerned with the quality of channels on offer than the technical aspects which have so far pre-occupied the Government (see Government Faces Backlash Against Analogue Switch-Off).
Aside from the prospect of digital switchover, Carter highlighted the challenges faced by Ofcom following its relatively smooth first months. The regulation chief promised a 5% reduction in costs, stating: “Ofcom is unarguably too expensive. There are undoubtedly legitimate questions from stakeholders about why a light touch regulator with 25% fewer staff is costing more money than the previous 5 regulators.”
He added: “The total cost of Ofcom is equivalent to one quarter of one per cent of the industries that we regulate. Having said that, it’s still £144 million in cash. We have already reduced our costs by 5% but recognising the facts of these costs, and doing something about it are two separate things. Consequently I am confirming today that we will commit to a rolling 5% reduction in our costs over the next two years.”
Prior to the media regulator’s official launch last year it was forced to admit that its operating costs would be 27% higher than its five predecessors and that it would require a £36 million increase in funds, provided by a government loan, to operate effectively.
Ofcom: 020 7981 3040 www.ofcom.org.uk
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