Satellite and cable race for digital TV

Television is about to change before our eyes as we enter the revolutionary era of digital with its promises of wider choice, …

Television is about to change before our eyes as we enter the revolutionary era of digital with its promises of wider choice, more variety and better technical quality.

The competition within Ireland between satellite and cable to bring digital services into our homes is already taking place, although digital has yet to actually reach us.

Cable companies are testing their networks to see how they will handle digital, while satellite dealers are already selling dishes on the basis that they will be the mechanism for carrying digital in the future.

Mr Frank Furlong, from Peats World of Electronics in Dublin, advocates the purchase of a satellite dish by customers because, he says, "that is where people will be looking to receive their digital service in the near future".

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He adds that the recent decision by BBC, Channel 4 and Channel 5 to simulcast (broadcast by satellite) on Astra 2 has added to the appeal of buying a satellite dish.

"Very soon a satellite dish will give you the likes of BBC, Channel 4 and ITV, plus 45 or more other channels," he maintains.

Ms Claire Noctor of Satellite Link says that with the main British terrestrial channels prepared to offer a satellite service, the only channels not available to the future satellite buyer will be RTE 1, Network 2 and Telefis na Gaeilge. But she says a cheap pair of "rabbit ears" are generally used by satellite customers now to pick up RTE's television service. She sees no reason why this will change.

While satellite may become more popular, cable and MMDS companies say their products are winning out and will survive the digital age. "We will be able to give our customers RTE and hundreds of other stations, when digital takes off," says Mr Ray Doyle, of Cable Management Ireland, one of the State's largest cable companies.

"Cable and MMDS have the infrastructure that is capable of delivering the service and have carried out tests to assess the emerging technologies," he says.

While technology has brought us this far, media mogul Mr Rupert Murdoch has speeded up the process even further. His company, BSkyB, is about to embark on a campaign to sell one million television set-top boxes (similar to decoders) needed to facilitate a digital service.

About 40 channels will be offered initially with these boxes, but the number of channels which may become available after that is almost limitless.

The advent of digital is likely to test RTE, Cablelink and other cable/MMDS operators. Television in the future will be transnational and people will be able to choose from a range of options. It all seems very different from the existing television market in the Republic.

Apart from choosing a satellite dish, Irish people can only legally receive their television service from the licensed provider in their area, which is a cable or MMDS company. So as the survey below indicates, even though a person living up the road may be paying less than you for the same service, you can only avail of the service of the company licensed for your area.

For example, the majority of people living in Dublin can only receive their service legally from Cablelink, even though some people may regard the company's standard package of channels as somewhat restrictive.

The director of Telecommunication Regulation, Ms Etain Doyle, is responsible for the whole area and is currently putting together a report on the future of television services.

This report, which will be presented to the Minister for Public Enterprise, Mrs O'Rourke, will address the issue of illegal deflectors, MMDS and cable operators and the forthcoming digital revolution.

Ms Doyle also oversees the charges applied by cable and MMDS companies. While it is estimated that 450,000 households are served by cable television and another 90,000 by MMDS, Ms Doyle has no role in overseeing the charges these households have to pay for additional services such as sport and movie channels.

The Cable Communications Association of Ireland says the operation of illegal deflectors is costing cable and MMDS companies a large amount of money as they have to resort to the courts to have illegal operators stopped.

The association claims that if illegal operators were halted, the prices paid by cable and MMDS consumers would come down. However, the various illegal deflector operators say the reason they exist is because of the high cost of cable and MMDS services. For example, most deflector services offer about 10 channels or more for about £30 a year, which compares with at least £100 a year for most legitimate cable/MMDS services.

While that debate continues, no one quite knows what the future will bring. Few are prepared to say that the increase in channels will mean a rise in quality. In fact, many look to the US where a n explosion in television channels has not meant any great leap forward in terms of programming.

"A lot of people are simply saying at the moment, I have enough channels and I haven't any interest in getting more - digital or otherwise," says Mr Doyle.