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UK government has assured the TV industry


Even just as it is about to embark on perhaps the fiercest economic cuts seen in more than a generation, the UK government has assured the TV industry that establishing local TV in the UK is still a policy priority.

Following discussions between the UK’s Department for Culture, Media and Sport and his team, UK TVregulator Ofcom has published a report comparing the benefits and costs of using the different platforms: terrestrial, satellite, cable and via broadband. It sets out for each platform their own advantages and disadvantages for carrying local television services.
In order to put its money where its mouth is, the UK government has set up an enquiry to examine what conditions might be necessary to make local TV commercially viable.

Following discussions between the UK’s Department for Culture, Media and Sport and his team, UK TVregulator Ofcom has published a report comparing the benefits and costs of using the different platforms: terrestrial, satellite, cable and via broadband. It sets out for each platform their own advantages and disadvantages for carrying local television services.

The study considered how local television could be delivered to the most populous urban areas in the UK as it was considered likely that economic drivers for local television will be most favourable in those areas. The starting point was an indicative list of twenty five urban areas including the four UK national capital cities and twenty one of the largest urban areas.

THe report did not consider how spectrum or existing capacity could be secured for local television; that was considered a matter for government to decide how, if at all, to intervene to secure spectrum resources or multiplex capacity for local television or to rely upon commercial mechanisms.
One finding was that the choice of approach depends upon objectives for the local service including considerations such as localness, delivery, coverage and economics. Furthermore each platform presented opportunities and also constraints.

Satellite was seen as providing reliable coverage across the UK to nearly all households and can offer a single channel number for local services but has associated constraints and costs if a finer localness than the existing broadcaster regions was desired. Also, any local service on satellite would be broadcast across the UK but would only potentially be relevant to a few areas. To provide many local services in this way is likely to involve a high cost.

Even though broadband was seen to offer a low-cost entry to delivery of video with costs that scale according to demand, the report was optimistic for the mainstream use of delivery of video content via broadband connections. It noted the growing adoption of IP-enabled television sets (IPTVs) and other initiatives that incorporate broadband delivery of content.

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