BCI may offer three digital TV licences to one firm

The Broadcasting Commission of Ireland (BCI) said yesterday that it might award the three digital terrestrial television (DTT…

The Broadcasting Commission of Ireland (BCI) said yesterday that it might award the three digital terrestrial television (DTT) multiplex licences to just one company if this proves to be the most viable way of operating the system.

"The BCI position is to leave open the possibility for applicants to apply for one or more multiplexes, thereby maximising the possibility of a greater number of applications," the BCI said yesterday.

It is not clear who will pitch to operate the multiplexes but industry sources have suggested that UPC, Sky, Eircom and BT Ireland could be among those who submit applications.

The regulator has three multiplex licences to award and plans to advertise for operators next March. It expects to issue the licences by the middle of 2008 with services likely to begin in 2012 when the analogue signal is due to be switched off.

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DTT will replace the current analogue signal and offer greater content and interactive services.

Four multiplex licences have been issued by Comreg: one for RTÉ and three for the BCI to allocate.

At a media briefing in Dublin yesterday, the BCI said each multiplex would be able to broadcast up to 12 standard channels or about three high-definition stations. The four terrestrial channels - RTÉ1, RTÉ2, TV3 and TG4 - will be carried on RTÉ's multiplex and will continue to be free to air.

The BCI said it would seek submissions from multiplex operators as to what content they would carry.

Licence applicants are free to suggest whatever content mix they see fit, but the commission said it was likely to choose services that reflected viewing patterns here.

Each household in the Republic will have to buy a set-top box to receive DTT. At present, about 27 per cent of the 1.48 million households do not have any form of pay television, be it Sky, NTL, Chorus or other operators. These homes are expected to be the main target for DTT multiplex operators.

DTT will spice up competition in the digital television market. At present, digital television is provided by Sky, which is carried in 34 per cent of homes, and cable operator UPC, the owner of NTL and Chorus, which is in 39 per cent of homes.

The BCI said the multiplexes it licenses could be operated as free to air, subscription services or a mix of both. Operators will have to pay a fee to the BCI, which has yet to be determined. They will also have to pay a spectrum charge to Comreg.

Multiplex operators will be required to provide 90 per cent population coverage at launch.