T.V. WORLD 291 - 293 High Street Chatham Kent ME4 4BN Tel: (01634) 830340 Fax: (01634) 830626 Dear Ed Richards 2~/Z(o-;r My name is David Frais, I am the owner of TV World LTO an independent TV retailer in Chatham Kent. It is with great concern that I write to you about the future of public service broadcasting in this country and the potentially devastating effect that an uncompetitive digital terrestrial platform would have on the UK consumer and the consumer market for open standard, compatible television products in this country. The UK's terrestrial platform has for 50 years been at the forefront of worldwide performance quality and its 625 line PAL system has been the envy of other major developed countries such as the USA and Japan. Today, terrestrial television is playing a major role in the re-equipping of the UK population in readiness for Digital Switch over. Yet again, its competitive performance quality and value for money has proven critical in encouraging the mass consumer market to adopt the governments' digital television switchover objectives. The performance quality of terrestrial television broadcasting has been core to the specification and development of all television products sold in the UK since the introduction of Colour. This has continued through to teletext, nicam stereo, and widescreen and through to today where widescreen panel HO ready IDTV's have become the standard specification for all television sets above 26". A year from now this will be all sets above 20". Why HO ready? Because the consumer is now preparing, not just for digital switch over, but, for the next quality change in television performance, High Definition, which is widely expected to be the broadcast standard of the future, for all television software and broadcasting. Despite the undisputed evidence of the consumer market moving completely to Integrated Digital HO ready products in readiness for the pending change in performance quality, Of co m are suggesting that they have research that states the consumer is not expecting the Terrestrial Platform to offer an HO service. Market facts suggest that they are totally wrong. With HO performance developing in the Pay TV sector, in games, in pre-recorded DVD and hard drive player recorders and in the Camcorder market, it is our view that consumer expectations for a free to view HO performance from their digital terrestrial public service broadcasters will be very high. Their experience today is that PSB programme and performance quality on all platforms is comparable and competitive, why do they suggest this will change? Do they really believe people will accept a better quality BBC1 and ITV on Sky? This letter is to ask for your personal intervention in preventing Of co m auctioning off the Spectrum that will make HO services possible on the Terrestrial Platform. This is a once only opportunity to keep the Digital Terrestrial Platform competitive for the benefit of the consumer, for the benefit of the open standard television industry and for the benefit of governments' switchover plans. It should not be lost or wasted. Of co m are currently four weeks into a twelve week consultation with Industry before the final decision is taken to auction off the Spectrum made available from switchover. Their Launch document suggests that they have research that shows that any use of this Spectrum would be more in the consumer's interest than HO on the Terrestrial Platform. This is misleading. TV World is a Limited Company. Registration No: 4685870. VAT Reg. No: 662299019 They suggest Mobile TV, local TV and wireless Broadband are all better candidates to use the Spectrum, but fail to offer the evidence of the last five years where the mobile operators have blatantly failed to encourage the consumer to use their phones for a host of entertainment options. Despite having spent £25 billion on 3G Spectrum to provide these services, which they can obviously afford, mobile phones continue to be purchased, primarily as phone call and texting devices with built in cameras and mp3 players. Digital Television, on the other hand, is being successfully sold to the consumer on the promise of the benefits of entertainment "quality and choice". Currently DTT is competitive with all other platforms in delivering both digital "quality and choice". Evidence is available that Public Service Broadcasters, in developing the quality promise, are now producing virtually all new programming in widescreen HD format. Evidence is also available to show that consumers buying a new television set are buying integrated digital terrestrial sets, in a widescreen, HD ready format. Evidence is also available to show that consumers buying a new television set are buying integrated digital terrestrial sets, in a widescreen, HD ready format. Evidence is also available that confirms the fact that without additional Spectrum, the public service broadcasters can not maintain both the "quality and choice" offerings on the terrestrial platform. However, to maintain a competitive terrestrial platform in the UK it is imperative that the public service broadcasters are able to deliver their programmes in HD. Our fear is that without a competitive open standard terrestrial platform, the consumer would turn to competing platforms for their quality PSB services. This, for the first time in history, would make the terrestrial platform a second class platform, development of new open standard television products would potentially stop and as a result the consumer, our Industry and the switch over programme would suffer. Intervention in the next two months is critical if we are to maintain a competitive terrestrial television platform in this country, because the public service broadcasters need to be given the use of this extra spectrum and there is currently no obvious way of bringing this about. Yours sincerely
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