TESSA JOWELL RTS KEYNOTE SPEECH

TESSA JOWELL RTS KEYNOTE SPEECH

London, 15 September/GNN/ --

DEPARTMENT FOR CULTURE, MEDIA AND SPORT News Release (TJSPEECH) issued by
the Government News Network on 15 September 2005
CHECK AGAINST DELIVERY

TESSA JOWELL, SECRETARY OF STATE FOR CULTURE, MEDIA AND SPORT

RTS KEYNOTE ADDRESS, 7PM 15 SEPTEMBER 2005

Welcome

A pleasure to be in front of this august audience at last.

You might say that four years ago I was on this stage but wished I wasn't;
two years ago, stranded in traffic, I wasn't up here but wished I was.

Today I think I've got it right - I feel like the right woman in the right
place at the right time.

And I was so keen to make sure I got here on time I actually arrived on
Tuesday and have been in hiding at an undisclosed location ever since.

So I want to start by thanking the Royal Television Society for inviting me
back, and to thank you all for being here today.

I don't want to make a tour d'horizon of the entire media industry tonight. But
I want to talk about PSB in a digital world.

I want to say something about the benefits and the risks that digital world
presents, and how we will spread the benefits and minimise the risks.

And I am announcing today the go-ahead for the nation to go digital.

Preview

Because, we all know, broadcasting in this country is going through a
revolution. The rapid growth of broadband and new media providing audiences
with new ways to access content. The expansion of digital radio on DAB and
other platforms. And, of course, the continued success of digital TV.

The digital television revolution is one that 6 out of 10 of us have already
bought into. I want to focus today on our public policy responsibilities as
we navigate a way through for the remaining 40%. So we can switch off the
analogue signal with confidence that no one is being left behind.

But digital switchover and wider technological change are only part of the
story. They need to be understood in the context of our distinctly British
broadcasting market.

A market that is, in many ways defined by our public service broadcasting
tradition - the BBC of course, but also ITV and Channels 4 and 5, S4C and
Teletext.

The BBC will remain at the heart of PSB. But the future of PSB is not just
about the BBC.

As a nation our commitment to competition in broadcasting can and does sit
comfortably with a commitment to public service.

So we need strong public service broadcasters - 4,5, ITV as well as the
Corporation - as well as powerful, innovating companies like Sky, dynamic
independents, and bustling new entrants like Top-Up TV.

These are the principles that underpinned the Communications Act and the
BBC Green Paper alike.

Our approach is consistent because the values that underpin our policies
are constant.

And our ambition is bold.

The American academic Richard Florida says in his book 'The Rise of
the Creative Class' that "...human creativity is the ultimate economic
resource. The ability to come up with new ideas and better ways of doing things
is ultimately what raises productivity and thus in turn living standards."

In other words, we must face the challenge of digital, we must not duck it,
and the whole economy will benefit.

Platform neutrality/can't predict the future

The pace of technological change is fast , predicting consumer demands in the
future is an uncertain business so it would be foolish for any Government
to identify any one technology as 'the answer'.

As we can't guess the future, and to maximise consumer choice: we are not
wedded to any single platform or technology. We want a broadcast environment
in which a thousand technological flowers can bloom.

History is littered with examples of those who thought they could second
guess technology or consumers desires. I am reminded of that every time I
stub my toe on the beta max video in the cellar.

Just one case of apparently superior technology was undone by a combination
of consumer unfriendliness, cost and poor marketing.

So we are not telling people which technology to adopt. What we are saying is
that choice, universality and quality remain the cornerstone of our approach,
and that we need to make sure that the benefits of a changing broadcast
environment are available to as many people as possible.

The BBC

One of the implications of this is that, although modes of delivery may
change, the case for public service broadcasting will remain as strong as
ever in the future.

Moving forward the BBC will remain the bedrock - at the heart of public
service broadcasting.

In pure competition terms, the BBC is an intervention in the market, and one
of very large scale. But it is an intervention that, time and time again,
in survey after survey, the public tell us they want. They want it strong
and independent, with the flexibility to adapt to an uncertain future -
but not unfettered, and not at any cost.

So the Green paper published earlier this year set out a vision for a new
BBC, whose mission - and boundaries and relationship with its pay masters -
the license fee payers - are defined more clearly than ever before.

We set out some firm decisions: the BBC will have a 10-year Charter,
and will continue to be funded by the licence fee. And we will replace its
current governance structure with the Trust and Executive Board .

But there were many other issues on which we sought views.

Our proposals - already based in the most widespread consultation ever about
the future of the BBC - stimulated an enormous response, from every section
of the broadcast community and the public.

We are analysing those responses and will consider them carefully as we
draft the White Paper.

To take one example: one of the clearest messages that came through
from the public was about the importance of the BBC's role in providing
entertainment. Some were concerned that, in placing so much emphasis on its
new public purposes, we were in danger of losing sight of this .

And I shall want to make sure their concerns are reflected in the White Paper.

Poor old BBC, one might think. . Sometimes berated for being obsessed with
"entertain" at the expense of "educate" and "inform". Sometimes the other
way round. Theirs is a tightrope to walk. But it is the price they pay for
public subsidy and public support.

WOCC

Which is one of the reasons why, in framing our proposals on production,
for example, our focus is firmly on what is best for the viewer. Our aim is
to find a system that gets the best programmes on the screen, whatever the
source. The licence fee, as I never tire of saying, is venture capital for
the nation's creativity.

The BBC has had great success both from in-house production (Dr Who, The
Office) and independent commissions (Spooks, Casanova, Catherine Tate).
It is important to get the balance right for the future: we are not yet
at the end of the debate, and Ofcom are doing their own review of the TV
production sector.

As you know PACT and the BBC have been working hard to develop the WOCC. And,
whilst it is not a Government proposal, I am encouraged by the progress that
has been made.

And we should continue to look at other options here, the WOCC is not the only
possibility and there is a legitimate discussion to take place over quotas.

Place in the wider market

The BBC should be creative and entertaining. But it must also be highly
sensitive to its potential impact on the wider market - another issue which
has featured prominently in the consultation responses (not least from people
in this room).

I am clear that the new structure must incorporate robust mechanisms for
ensuring this. Proposed new activities must be subject to rigorous market
impact assessment. The Fair Trading arrangements need to be reformed and new,
more transparent complaints procedures established.

Channel 4

But in championing public service broadcasting the BBC is not the only game
in town. We must be equally robust to ensure the Corporation's activities
do not prevent other broadcasters from bringing high quality PSB or other
programming to market.

Channel 4 has consistently shown its ability to innovate, to take risks,
and to provide competition for the BBC in quality PSB programming. Its
innovative cricket coverage, Jamie's School Dinners; The Boy Whose Skin Fell
Off; Green Wing; and Grand Designs to name but a few.

I want that kind of programme-making to continue, irrespective of the
technology that broadcasts it. I want Channel 4 to have a secure future,
because I believe it is an important part of securing a healthy future for
PSB in the UK.

Channel 4 is doing fantastically well at the moment but, like all public
service broadcasters,it will need to adapt to the challenges of an all-digital
world. I do not believe that this warrants any direct intervention by
Government at this point in time, after all the Chanel 4 schedule is in
good shape, but it does mean we need to keep our options open and retain
the regulatory levers to enable us to react appropriately according to
future circumstances.

Other PSB levers

The plurality of our PSB system is one of the UK's great strengths.

And a vital part of plurality are ITV - to whom happy 50th birthday - and
Channel Five who once we go digital will realise their ambition to become
a universal service provider

Nobody knows quite how the future will unfold and how far the commercial market
may provide competition in areas traditionally considered PSB content. That
is why the Government, together with OFCOM retain a range of levers to ensure
PSB - and plurality of PSB provision - endures.

The Communications Act gave OFCOM a duty to secure a wide range of diverse
and high quality services and specific obligations in respect of public
service broadcasting.

We also gave OFCOM a number of regulatory levers to help secure PSB in the
future, such as broadcasters' licence conditions, Statements of Programme
Policy, and periodic reviews of public service broadcasting to identify how
PSB can be maintained and strengthened in the face of the constant evolution
of the broadcast market.

Of course public service broadcasting will need to develop and adapt to new
media, audiences' desires to get content in new ways - on demand, on the move
etc. And we may need ultimately to broaden our thinking beyond the existing
players, to consider possibilities such as the public service publisher.

But these are not decisions for now - that is why we have said in Charter
Review that we'll review PSB funding models towards the end of the switchover
process. But there are lots of options available.

And, of course, no doubt broadcasters will continue to innovate and find
new ways to reach audiences as they adapt to the financial, structural and
technical questions posed by new technologies.

Alongside that we have to ask how should regulation evolve - where the review
of the Television Without Frontiers Directive raises serious questions about
the scope, content and practicality of regulation in Europe.

As you know, we will shortly be holding a Conference in Liverpool on this
particular matter and I would encourage everyone here from industry to play
their part in ensuring we get the Directive right.

Digital Switchover

There is, of course, one piece of Government intervention more immediately
important than all the others. Switchover.

When I travelled to Berlin and saw first hand how that City had switched
off its analogue signal. Admittedly, they were filling the gap through the
provision of multi channel services over cable, but nevertheless it showed
me that, across Europe, Governments were grappling with the problems of
convergence and what it meant for their consumers and industry.

Similar trials were taking place in Italy, Norway and Sweden, and it brought
home to me that this was an issue which we in Britain needed to grip and
which I wanted us to not only take part, but lead.

Because switchover offers us not simply the chance to provide more choice
and better quality television but also a once in a lifetime opportunity to
increase access to new services, including public services.

Simulcasting in analogue and digital is inefficient for broadcasters and
wasteful of spectrum.

A key benefit of digital switchover is that it will allow a large amount of
spectrum to be released for new uses.

These frequencies could in future be used for a huge array of different
services, for example: innovative types of mobile device; more channels on
Freeview; and wireless broadband.

We made it clear in our response to the Cave review that the Government
favours the use of market mechanisms to allocate spectrum. The market is
best placed to decide who should use the spectrum and how.

Our policy since Cave has been to favour technology-neutral auctions when
considering mechanisms for assigning spectrum. This gives as much flexibility
as possible to the market to decide on services, technologies and providers.

Of course, in approaching and designing any spectrum auction, Ofcom will
need to consider all the issues including: the optimal use of the spectrum;
the likely effect on competition; and the particular needs of all potential
users of the spectrum - including, of course, broadcasters

Switchover is a highly complex process. Indeed in many ways it has parallels
with decimalisation and North Sea Gas conversion in that it will touch every
household in our country.

I do not underestimate the scale of the technical challenge - requiring
the transmission infrastructure to be in place, and viewers to be informed
and prepared, so that no household that can get TV now is deprived of their
service in the future.

Nor do I shrink from the inevitable battle for hearts and minds as we seek
to convince a minority about the merits of switching to digital.

But equally, we must not understate the immense opportunities switchover
will bring for viewers, who in the overwhelming majority are demanding it,
for broadcasters who can realise a wealth of new commercial opportunities
and reach out to consumers via new media, and for our economy which stands
to benefit to the tune of £1.1 to £2.2 billion. Our population are already
choosing digital TV. The freedom of many others will be constrained unless
we take the lead in extending digital terrestrial coverage by turning off
the analogue signal.

Britain is changing, and consumer demand for digital television is strong.

Already 63% of UK homes have digital television, with over 2 million
households having adopted it in the last12 months, an increase of 18.4%
on the previous year. And more people want it.

The available research shows overwhelmingly that when people get digital
TV they like it and want to keep it. It also indicates that more people
would be willing to take up digital TV if given the right information and
if switching were made easy and cost-effective.

That is why we have taken the time to talk to consumers and industry, to
undertake extensive trials such as those in Llansteffan, Ferryside and the
one we are about to begin in Bolton.

Around 25% of the UK cannot currently receive Freeview.

Our plans are based on building out the digital terrestrial network so that
virtually everyone can have access to a choice of platforms. The level
of coverage at switchover will match existing coverage - around 98.5% of
households - in line with our commitment that everyone who can currently
receive analogue services today should be able to receive them in digital form.

That still leaves around 1.5% of households potentially outside the terrestrial
net. While almost all such households have difficulty receiving even the
four main analogue channels today, it is important that they too have every
opportunity to go digital.

Many have already opted for alternative platforms, predominantly digital
satellite. And the very welcome announcement by ITV and the BBC this month of
plans to establish FreeSat, alongside Sky's free satellite option, will further
help to ensure that the benefits of digital are available to all who want them.

In our Manifesto, we said "we will achieve digital switchover between 2008 and
2012 ensuring universal access to high-quality, free-to-view and subscription
digital TV".

It is also a process that will take time which is why we intend to rollout
switchover on a region by region basis. Today, in conjunction with Alan Johnson
at the DTI, I am publishing the regional timetable for digital switchover.

This timetable was developed and led by industry, in conjunction with OFCOM
and the Government, and I want to thank everyone in broadcasting for the
hard work that has been done here.

We'll start with Border in the second half of 2008 and end with Tyne Tees
and Ulster in the second half of, a schedule determined by technological
requirements and the need to ensure that switchover causes minimum disruption
to the viewing public.

That means Carlton/LWT switching over in 2012. For anyone worried about
potential clashes with the London Olympics, I can assure you that I did not
slog for two years to bring the games here just to see Londoners reduced
to huddling round the wireless to find out who won the hundred metres. I am
completely confident that our timetable is a sensible one which will ensure
that digital services are delivered with no disruption to the viewing public
during the Games themselves.

For Government, these dates are not simply a vision, they are a reality,
and we intend to ensure that they are achieved.

Of course a timetable by itself is not enough., Consumers will not truly
embrace digital television until they are convinced it's worth the hassle -
that it will be simple, content-rich and affordable.

And we must face up to the fact that there will be people who will find digital
television confusing and feel unsettled by the technology. Added to that,
will be those who are socially isolated from community and family support
and information networks and those simply not able to cope easily with the
practicalities of the switchover process.

These are not insurmountable challenges but we do need to recognise that
they exist.

As the author William Gibson once said "The Future is already here, it is
just not evenly distributed".

That is why we said in our Manifesto we want "to make sure that the interests
of elderly people and other vulnerable groups are protected".

That is why the Government will ensure that a comprehensive package of
support for the elderly and the vulnerable is available as part of the
switchover process.

We have since the election taken the time to ensure we got the package of
support for the vulnerable people right.

The evidence shows us that the equipment to access and record digital
television is now affordable for the vast majority of households. However,
the same research shows clearly that the elderly and those with significant
disabilities will face a variety of difficulties installing and using the
equipment.

These people will need more than information - they will need our practical
support.

And they will get it.

But encouragingly, one key lesson that came out of the Llansteffan and
Ferryside, was that you should never underestimate people's ability to adapt
to new technology.

Households in the two villages embraced the equipment readily. Around
20% of households received some assistance, mostly over the phone with
installation. Some (but not all) elderly and disabled people also needed
more help to install and set up their equipment. But once they received it
they became keen digital TV users.

The trials also showed 81% of trial participants were able to install their
equipment without help from the trial team.
And 99.2% of respondents voted to keep digital television.

In the last few months, my Department has worked with relevant charities
- including RNIB, RNID, Age Concern, Help The Aged and the Consumers'
Association - the DWP and the BBC to develop a package of support to help
vulnerable households with digital switchover.

We will provide targeted support to those who most need it: households where
someone is aged 75 or over; and households with people with severe disabilities
(defined as those people eligible for either Disability Living Allowance or
Attendance Allowance).

Assistance will consist of providing the necessary equipment to convert one
TV set and the relevant support to install and use such equipment.

This help will be free for the poorest eligible households, those on Income
Support, Job Seekers' Allowance or Pension Credit. But we will charge a
modest fee to others.

We also propose to offer some additional support to those who are registered
blind so they can benefit from the audio description facilities provided by
digital technology.

We made clear in the Green Paper that the BBC has a big role to play in
digital switchover. In particular, we stated that the BBC would pay for
the schemes required to help vulnerable consumers. Digital switchover will
ensure that the BBC's digital channels are available to every licence fee
payer, and it is right that the licence fee should itself play a major part
in making this happen.

We will work closely with the BBC in the coming months to refine the details,
to ensure the support delivered is both focused and cost-effective. The
costs of the schemes will be reflected in our assessment of the BBC's future
funding needs, leading to a new licence fee settlement from April 2007.

These proposals strike the right balance between helping those who will have
genuine difficulty in coping with switchover whilst not distorting the market
or placing excessive burdens upon licence fee payers.

However, while specific assistance for the vulnerable minority is important,
good communication will be essential for everyone.

From here on, everyone will hear much more about Switchover.

The task of implementing switchover will be for Switchco to lead. They are
launching, under the title "Digital UK" tomorrow, with press advertising, a
call centre and a web site, and they will be available to offer help and advice
to all who need it for the seven years between now and the end of 2012. They
will ensure that everyone will know exactly when their transmitter is going
digital and what they have to do to ensure they receive the new signal.

I would like to take this opportunity today to thank Ford Ennals, Barry
Cox and all their staff, who I know will be working tirelessly to ensure a
smooth transition.

I also want to thank all the manufacturers and retailers - at last count
covering over two-thirds of TV retail outlets - who have registered to use
the Switchover Certification Mark. And I would encourage those who haven't
yet done so, to sign up. And special thanks to to Colette Bowe and OFCOM
consumer panel, and to Leen Petre and the consumer expert group.

Conclusion

Digital switchover is no longer a probability, it is a certainty. And I
believe it can leave us with a legacy of more choice, for more people,
than anywhere else in the world.

When a new technology comes along, Governments have two choices. And only
two. They can follow it, trying to make retrospective sense of how society
is changing as a result.

Or they can be ahead of the curve, shaping the future and ensuring that the
fruits of technology are evenly spread.

We have chosen the latter course. Nearly two thirds of the population have
already exercised their private choice to go digital. They have already
voted with their wallets.

Yet many of those yet to go digital are exactly the people that the State
has a duty to protect - the elderly, the disabled, the poorest.

They have in many cases the most to gain from a fully digital world. And we
have to make sure they aren't left behind.

Because otherwise, we aren't on the cusp of a revolution, but of a coup.

Thank you. I look forward to your questions.

Source: DEPARTMENT FOR CULTURE, MEDIA AND SPORT

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