Telecom firms set to battle for digital contract

A number of large overseas telecommunications companies are vying to build a new digital TV infrastructure for the Government…

A number of large overseas telecommunications companies are vying to build a new digital TV infrastructure for the Government as preparations begin for turning off the analogue TV signal.

The Department of Communications has invited expressions of interest from firms willing to build and operate a digital multiplex system and network service for the Government, on a pilot basis initially.

While the Department has yet to announce a shortlist of applicants, it is understood a number of companies have approached the Department expressing an interest in such a project.

Digital transmission, either by terrestrial means, cable or satellite, offers a number of advantages over analogue broadcasting.

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These include better reception quality, increased programme capacity, new features such as programme guides, multi-view and interactive services, as well as potential convergence with the internet.

It is understood that National Grid Wireless, formerly known as Crown Castle UK, have been in touch with the Department about the idea, as have Arqiva, formerly known as NTL Broadcast. It is the sole transmission provider for British TV services like ITV, Channel 4, S4C and Five.

Another company believed to be interested in the project is BT Ireland which can draw on the backing of BT internationally.

BBC Technology, now owned by Siemens, is also likely to be interested in the project.

Some of the main players in the Irish telecoms business like 02 and Vodafone could yet come forward, but neither company has any experience operating digital TV infrastructure.

Most companies involved in the expressions of interest phase are waiting to see whether RTÉ's transmission company, RTÉ Transmission Network Limited, gets involved in the project.

However as a publicly funded broadcaster it could face problems under State aid rules if it was awarded the contract.

Planning for a new digital terrestrial television network has intensified since the European Commission announced it wanted all EU states to provide a date for when they will switch off their analogue networks. The British government has indicated it will switch off its analogue signal by 2012.

The Irish Government has yet to submit a date to the European Commission, but it will have switch at some point over the next decade according to most observers.

When that happens a new digital terrestrial television system will be needed. While this technology is the focus of the Department right now, some telecoms companies are championing a new technology called digital video broadcast handheld or DVBH. This is essentially digital terrestrial television for mobile phones.

The technology guarantees wireless quality transmission identical to that offered by terrestrial digital broadcasting.