ࡱ> EGD'` 0>bjbjLULU 8..?.?>,D;"rlllllGGG!!!!!!!$#h&!>GG>>!ll!>Rll!>!h l` 0my" ! "0;"2 && & G^)LuGGG!! GGG;">>>>   Presentation to Local Television Forum, Sheffield, 6 Sept 2011 A new framework for local TV in the UK Steve Buckley CM Solutions is a social enterprise providing business and technical support for community media. We work UK wide and internationally from our base here in the Workstation. Locally, we have been supporting the development of a consortium for local television in the Sheffield City Region which brings together public, private, educational and voluntary sector partners. We are keen to do what we can to enable dialogue and help build consensus among aspirant and existing local television providers in response to the latest Government proposals. The DCMS consultation document provides a four point framework for taking local television forward in the UK, including an outline of the necessary legislation. The proposals are based on access to digital terrestrial television (DTT) channels where possible, which may also be accompanied by satellite and cable. In the longer term it is assumed that IPTV (high quality Internet-based television) will become the principal means of local TV distribution. These are the main points contained: (i) A single digital multiplex operating company (MuxCo) will be awarded a licence to install and operate DTT spectrum for local TV across the UK. The award will be made through a beauty contest. The spectrum will be sufficient for up to three local TV channels per location or a combination of local TV channels plus other multimedia or data services. (ii) Digital local television service content licences will be awarded according to demand and spectrum availability. The award of these licences will also be through a beauty contest process. The criteria for selection will include meeting local audience needs, broadening audience choice, increasing local content and ability to maintain the service. The MuxCo will be required to reserve sufficient capacity to carry the local TV services. (iii) The local TV services will have prominence assured on the Electronic Programme Guide (EPG) including possible use of the designation Channel 8. (iv) Part of the BBC licence fee will be used to support the development of local TV services including 25 million capital funding for the DTT distribution infrastructure and 5 million per annum revenue funding for 3 years for content acquisition in the form of a license for the BBC to use content produced by local TV services. Local TV services will not have to pay for capital infrastructure costs but will pay a contribution towards carriage costs. These are our preliminary observations: The separation of digital television content service licensing from the licensing of the multiplex operator leaves local TV services unnecessarily dependent on a third party provider whose interests are unlikely to be aligned with those of local TV services. Proposals for a single multiplex operating company are based on flawed assumptions that local TV service providers will be unable to commission their own transmission infrastructure and that a single operator will achieve significant economies of scale Instead the individual services should be allowed to own and operate their own local multiplexes. This would enhance the viability of local TV services because: Channelling the capital investment through the local TV service operator would assist in attracting additional investment from other sources. The local TV channel would be able to commercially exploit the additional spectrum as a revenue source to invest in local programme content Costs of commissioning the local multiplex would be reduced by creating a competitive market for technical installation and support service providers Local multiplex installation would be directly linked to the start-up of new local TV services with a reduced risk of building redundant infrastructure DCMS should review the proposed arrangements for the licensing of the multiplex to assure the model adopted is best designed to achieve local TV service viability If DCMS remains minded to proceed with a single MuxCo the licensing framework should assure any profits made by the MuxCo are re-invested in local TV services Prominence on the EPG is a necessary measure in building a viable economic model In addition to EPG prominence Government should introduce a must carry obligation for cable operators to include and give EPG prominence to digital local TV services On the technical plan for local TV, DCMS and Ofcom should assure that major city regions, and other viable locations with evidence of demand are included. 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