Fed: Cabinet stalemate on digital TV

AAP General News (Australia)
12-14-1999
Fed: Cabinet stalemate on digital TV

By James Grubel, Chief Political Correspondent

CANBERRA, Dec 14 AAP - Federal cabinet has reached a stalemate on the future of digital
television.

After a two-day meeting in Canberra, cabinet broke up for the year late today with
no agreement on standards for digital television broadcasts, which are due to make their
debut in Australia on January 1, 2001.

However, government sources said the issue remained under active consideration, meaning
a decision could still be made before the new year if several issues could be resolved.

But at this stage, it was unclear if the government could make a final decision in
time for the major networks to set up for the switch to digital broadcasts.

Cabinet is not due to meet again until early February.

Cabinet must decide whether to accept the high definition broadcasts promoted by the
ABC, Nine and Ten networks, or the standard definition broadcasts favoured by the Seven
Network and the Fairfax and News Limited newspaper groups.

The newspapers want standard definition broadcasts so there will be room on the spectrum
to transmit data and Internet services to television sets.

It's believed cabinet spent some time discussing the high cost to rural and regional
TV stations of the switch to digital broadcasts.

Deputy Prime Minister and National Party leader John Anderson confirmed the cost to
country stations and viewers was a key issue to be resolved.

"Plainly we've identified that as one of the issues that has to be worked through,"

Mr Anderson told reporters.

But he said he was not worried about the high cost of digital television sets, which
could cost up to $8,000 each.

Mr Anderson said the price compared with the early cost of a black and white television,
and competition would force prices down.

"I suspect that in 1956 in real terms, that's what a black and white television cost," he said.

"But it didn't take very long for the price to collapse.

"It's just making the point that as these technologies come on stream, and start to
sell, the price folds very rapidly indeed."

AAP jg/mfh/apm/de

KEYWORD: DIGITAL NIGHTLEAD

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