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Technology Stocks : C-Cube
CUBE 37.27+0.5%10:32 AM EST

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To: John Rieman who wrote (35791)9/11/1998 1:04:00 PM
From: DiViT   of 50808
 
Even more DTV networks to launch....

Task force plans three DTV networks for launch by 2002
Eddy Hawkins

09/30/98
World Broadcast News
Copyright 1998 by PRIMEDIA Intertec, a PRIMEDIA Company. All rights reserved.


HELSINKI-A joint task force of the Communications Ministry and broadcast media representatives has issued a proposal for the phased construction of three digital TV networks in Finland by 2002. Plans called for the capacity to provide nationwide coverage for a total of 12 new terrestrial channels.

The group has drawn up a timetable that proposes the start-up of regular DTV operations in 2000 over two networks that would serve a minimum of 70 percent of Finnish households. Initially, viewers will need compatible set - top transcoders. At least one local manufacturer, the Finnish-based Nokia Corporation, is already well advanced in the design and production of sets for the European market. They are expected to be generally available to consumers next year.

Finland's Communications Ministry estimates that by the end of 2000, at least 1 percent of households will be ready for reception of DTV. The transitional period to the widespread use of digital sets is forecast at 10 to 12 years if no special measures are implemented to encourage households to make the switch.

Finnish broadcasters - the public YLE and the commercial operators MTV3 and TVNel-onen-4 - already have plans in place for migrating to a digital format. All three intend to gradually shift their present channels to DTV and to establish new programming services. A sports channel and the development of interactive services are to be established as cooperative ventures among the three.

The Finnish Broadcasting Company (YLE) has plans for a new 24-hour news and current affairs channel and a channel dedicated to cultural affairs, documentaries and science/technology. YLE's Swedish-language service, FST, is also planning a channel of its own that will carry what the company calls public information society services, as well.

Plans by commercial operators include at least two new MTV3-owned channels. The company's present market strategies are to be expanded with a new youth and brand-named oriented channel, plus a channel for nationwide local services. Meanwhile, the owners of TVNelonen-4, Helsinki Media, have plans in the works for at least two movie channels, one of which is to provide video on demand.

Broadcasters costs for the DTV network system are projected at around (US)$185 million for 1999 to 2002, plus an investment of another $92.5 million in the actual physical networks. The task force report does not contain a position statement on financing for the project, but the first phase being undertaken this year is being jointly financed by the broadcasters themselves. WBN
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