Digital TV a step closer

By Phil Boeyen, ShareChat Business News Editor

Wednesday 4th April 2001

State broadcaster TVNZ and communications company TelstraSaturn have formalised their move into digital television.

The two companies have today signed detailed agreements that form their digital television alliance, originally outlined in November last year.

"This is the beginning of the national transition to digital broadcast in New Zealand," says TVNZ boss Rick Ellis.

"Both TelstraSaturn and TVNZ have talked previously with Sky (NZSE: SKY) in the hope of achieving a true open access approach to the New Zealand market. Now that TelstraSaturn and TVNZ have agreed an open access approach, we are hopeful that Sky will join us."

The partners say they have signed an interconnection agreement that provides for open access to each other's transmission networks and set-top boxes, and have agreed to set up a joint venture to develop interactive television content and services.

Discussions are also underway with TV3 and TV4 operator CanWest to include those channels in both the free-to-air and pay services.

TelstraSaturn plans to offer a digital pay-TV service nationwide by the end of the year while TVNZ will launch its free-to-air digital service at the start of October.

Users of TVNZ's service will need to purchase a set-top box, which will be capable of delivering an increasing number of non-traditional services such as e-mail, Internet, home shopping, games and radio.

TelstraSaturn says pricing details of its service will be revealed closer to the launch

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