Why the digital delay?

Digital television was going to transform my life

Digital television was going to transform my life. The promise of hundreds of channels, videoon-demand and a high-speed Internet connection meant I was determined to become a so-called "early adopter" of this technology.

As a confirmed couch potato, I even bought a brand new 28-inch television and considered moving closer to Tallaght, the first area where NTL laid broadband pipes to deliver the digital TV signal and highspeed, "always on" Internet access.

Several months later and - like the rest of Dublin, Galway and Waterford - I'm still waiting for the digital revolution to cement me to my sofa.

Just 6,000 customers are connected to NTL's digital network and no more can get connected following a decision by the group to put the project on hold.

READ MORE

NTL Group, like most telecoms companies worldwide, has fallen on hard times recently, and is reviewing its expensive digital strategy. A decision on whether it will proceed with its Irish digital strategy is due in the next few weeks. Some experts believe the firm may delay for as long as a year to cut costs.

Waiting for digital television is nothing new. A Government plan to launch a national Digital Terrestrial Television (DTT) service - where the digital signal is transmitted though the air via radiowaves rather than through cables - has already been delayed by a year.

Disputes over "how" and "who" should run the service forced a redrafting of the Broadcasting Bill, which will establish the rules for the establishment of DTT. The Bill looks set to become law shortly, but consumers will have to wait for the digital network to be built before they can actually go digital.

DTT technology will not provide the same interactivity as cable or digital subscriber line technology - which telecoms companies such as Eircom and Esat want to deploy. While consumers will get 30 extra TV channels and better sound and picture quality, they will not be able to log on to the Internet on their televisions to shop and bank online.

This is also true for Irish customers who use BSkyB's digital service. There is simply not enough radio spectrum available for large chunks of digital signal to make a return path to the satellite - although simple tasks such as checking news stories at any time or changing camera angles are possible with the service.

However, the most disappointing feature of BSkyB's Irish offering is its failure to provide BBC, ITV or the existing Irish channels.

Sky says it is talking to the British channels about distributing them in the Republic, but for now customers will have to pay other providers for these channels.

Customers of the cable and MMDS provider Chorus do not have to suffer such inconveniences. But as the RTE 1 radio show Liveline highlighted last week - during three separate shows - they have other more fundamental problems on their mind.

Floods of calls were made by customers complaining about poor customer service and inadequate technical support. On top of this, Chorus is proposing to charge customers up to £45 for a maintenance call-out unless customers agree to pay an extra £2.50 charge per month.

If this charge is interpreted as a price increase and is not withdrawn, the telecoms regulator, Etain Doyle, would have the right to revoke Chorus's operating licence. Similarly, she may revoke NTL's licence if it chooses not to complete its digital roll-out.

While neither of these scenarios is likely, all this uncertainty will inevitably result in a a prolonged "digital delay" and a slower uptake of Internet technologies.

Just one in five Irish households connect to the Internet through a home personal computer. And the vast majority of users still have to endure slow dial-up modems. (Readers who have downloaded video or music will appreciate this means hours of dedication and phone bills which could break the bank.)

Compare that to the US, where almost 50 per cent of homes have at least one Internet-ready personal computer. In the US last year, more than five million homes were connected to high-speed, "always on" digital Internet lines which can download multimedia files in seconds.

And it is not just in the US where they are storming ahead. A recent survey by Nelison NetRatings shows Ireland placed 11th out of 14 key competitors in terms of households that can access the Internet. This is hardly a record that a Government which has spent millions marketing Ireland as Europe's e-commerce e-hub will want to publicise.

Without a variety of low cost "always on" Internet connections provided by competing digital networks, this gap is sure to widen rather than close. The dream of an e-society where people shop, bank and learn online is unlikely to take-off if the price is not right or access to the Internet remains unpredictable.

Likewise, a delay in introducing digital TV will make it more difficult to bridge a growing digital divide between rich and poor. For those households without a computer, digital TV offers a low-cost method of accessing the Internet and embracing a digital society.

A survey by analysts Continental Research released last week showed one in four British homes has embraced the digital TV revolution and some 12 million adults subscribe to a digital service.

In contrast, the number of Irish digital TV subscribers is probably below 20,000. And with both cable companies having difficulties with their digital plans, it may be some time before my new television will go digital.