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RADIO TELEFÍS ÉIREANN Operational Review RTÉ Network RTÉ Transmission Network Limited (RTÉNL) is a wholly-owned RTÉ subsidiary company which provides Broadcast Transmission services to all Irish television and radio broadcasters and provides mast and tower rental services to a range of telecommunication service providers and operators. In overall terms the market for mast and tower rental services continues to grow but remains very competitive due to the large number of mast and tower sites that have become available. RTÉNL’s infrastructure is primarily situated at high altitude and remote locations that are not always appropriate for some emerging technologies, such as 3G, which require compact cell size local to the consumer. Analogue Terrestrial Television (ATT) services remain static as they are to be replaced by Digital Terrestrial Television (DTT) services over the next five years. Commercial Revenue The growth of revenue was driven by a steady overall increase in services provided across all markets. • A number of new customers were secured in the local and regional radio market • The DTT trial run by the DCENR ceased in August 2008. However RTÉNL has continued to run one multiplex carrying the four national television services (RTÉ One, RTÉ Two, TV3 and TG4) • Digital Audio Broadcasting (DAB) radio services were expanded to Cork and Limerick cities however near the year-end the DAB service was reduced to a single multiplex for the RTÉ radio channels. The commercial radio operators decided not to continue broadcasting for the moment; it is anticipated that commercial services will recommence in 2009 when the appropriate policy and licensing arrangements are in place for a permanent service • The Digital Video Broadcasting - Handheld (DVB-H), which is TV on mobile phones, made an entry in the Irish market with some positive tests and trials in 2006. These trials continued from 2006 into the second half of 2008. The DVB-H trial service has now stopped but should recommence in 2009 when the appropriate policy and licensing arrangements are in place for a permanent service. The decision by RTÉ to cease MW567 radio in March had a significant negative impact on revenue. However this was expected as LW252 had been put on air in 2004 and fully refurbished in 2006/7 with the purpose of replacing MW567 with an improved long wave service. Operational Issues Overall system availability in coverage areas for television and radio is again comparable with previous years, running at over 99.9% for all national television and radio services. The main operational challenge in 2008 was facilitating the installation of infrastructure for the upcoming Digital Terrestrial Television (DTT) services. Digital Terrestrial Television (DTT) The Broadcasting (Amendment) Act 2007 (the “Act”) lays out the process by which Ireland will implement DTT with the resulting switch-off of analogue signals. DTT broadcasting is separated between Public Service DTT and Commercial DTT. The Act obligates RTÉ to provide one Public Service Multiplex to ensure the availability of the free-to-air Irish channels and the Act also obligated the Broadcasting Commission of Ireland (BCI) to licence Commercial DTT in Ireland. In March 2008 the BCI ran a tender competition for three Commercial DTT licences and it was won by Boxer DTT Limited, a joint venture comprising Communicorp Group Ltd and the Swedish digital terrestrial television operator, Boxer TV-Access AB. A total of six national DTT multiplexes are catered for in the Act however, for spectrum availability reasons, multiplexes five and six are not possible until analogue television is switched off. At the time of writing RTÉNL had commenced the construction of the necessary infrastructure to facilitate the launch of DTT in 2009 should RTÉ and Boxer DTT Limited wish to do so. DTT offers the following advantages over traditional analogue television system: • Extra TV channels as standard Within each multiplex it will be possible to deliver a number of television and radio services. It is anticipated that between eight and ten standard definition (SD) television channels will fit on a multiplex. It is also anticipated that between two and three high definition (HD) channels will fit on a multiplex (and/or various SD/HD combination). • Subscription channels A number of subscription services will be available in addition to the free-to-air services. If a viewer wishes to take out a subscription, it will be possible to access dedicated television services including sports, film, and music channels, and also access to services that allow viewers to watch what they want, when they want. • Improved Quality DTT will improve both the television picture and sound. • New Features DTT will include television listings onscreen, true widescreen picture, enhanced teletext and red-button interactivity. • Access Services DTT incorporates the potential to make available special features for people with visual and hearing impairments e.g. audio description, screen zooming and subtitling. 18
ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2008 BROADCAST TRANSMISSION SERVICES 19
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