Deal paves way for digital TV

Television viewers can look forward to new digital television channels before the end of next year after the Government moved yesterday to establish a new transmission system for terrestrial television.

Under the plan, RTE will have to sell its television transmission business "as a going concern".

RTE will get a 28 per cent share in a new company that will transmit digital and analogue television signals for terrestrial broadcasters, the Minister for Arts, Heritage, the Gaeltacht and the Islands, Ms de Valera, announced yesterday.

However, RTE will have no share in a separate company that will sell digital television services to the consumer.

Last night RTE welcomed the proposals and said Ms de Valera's plan "accords with the authority's view of the future".

The Government accepted the new proposals at yesterday's Cabinet meeting. The decision opens the way for three new television stations planned by RTE.

The Broadcasting Bill had originally proposed a scenario where RTE would hold "up to 40 per cent" of a single digital transmission entity called Digico. However, the Minister subsequently let it be known that she favoured completely privatising the transmission network and months of difficult negotiations between RTE and her Department followed.

The new entity involving RTE will provide transmission services to a digital TV multiplex operator, in which the station will hold no stake. This operator will be chosen separately by the Minister and will retail packages of television and other services to viewers in a manner similar to the way in which cable television systems operate. RTE, TG4, and TV3 will be guaranteed access to space on the multiplexes.

RTE said it was glad it would continue its "involvement with the television transmission system which it established and developed over the years".

"The authority sees great potential for Ireland in the development of a digital environment and sees opportunities to develop and expand the range of public services available to the audience."

A dedicated news channel is likely to be among the three new digital services provided by RTE.