Satellite will play an important role as the United Kingdom moves from analog to all-digital transmissions by 2012, according to Digital U.K., the organization responsible for overseeing the switch.

“I think the consumer benefits if they have a choice on how to receive digital TV, whether via the aerial, satellite, cable or DSL,” Ford Ennals, CEO of Digital U.K., said. “The more choice the better, as there will be competitive offers and pricing for consumers. We have around 70 percent of the population who can receive digital terrestrial television (DTT) today. So 30 percent can’t. Satellite has much higher coverage, so it provides a very important fill-in capability.”

The switch is scheduled to begin in 2008 with the Border region which could offer an early barometer on the importance of satellite in the whole process, Ennals said, “If I look at the early regions where we are doing switchover, as in the Border ITV region, there is only 50 percent DTT coverage there,” he said. “So 50 percent of people cannot get digital TV until we switchover. If they want to get the benefits now, they have to go satellite.”

BSkyB Freesat Offer Could Benefit

The United Kingdom already has a digital television penetration rate of more than 65 percent, which makes it one of Europe’s leaders. However, the process to switchover is not expected to run smoothly, with as much as 10 percent of the population seen as strongly resistant to the whole digital process.

“We would be very disappointed if ultimately people chose not to get digital TV and we will be working very hard, either through our communications programs, or through our local assistance programs, to make sure people are fully informed of their options and they understand what they need to do and that they are in position to receive digital TV before switchover,” Ennals said.

Consumers who opt for DTT will have a choice between BSkyB’s Freesat offer or the new BBC/ITV offer scheduled to launch in 2006. The BBC/ITV offer is closely modelled on the successful Freeview DTT Freeview. These could be important options to consumers, particularly in rural areas.

“I think the fact Sky is actively marketing its Freesat offer is very good news and very helpful,” Ennals said. “We know the BBC/ITV have announced a Freesat initiative of their own, but they haven’t provided full details of that and we anticipate that won’t be in the market until next year. I think what satellite allows people to do is have a choice of offer and particularly, those people outside of coverage areas to get digital TV before switchover.”

–Mark Holmes

(Adam Murray, Freud Communica-tions for Digital U.K, adam.murray@freud.com)