With both public service and commercial broadcasters pushing to ditch traditional terrestrial TV service as they want to reduce distribution costs and monetise viewers online, a new report says the UK’s internet networks are not ready to become the sole method of receiving TV.
- Report by consultancy firm EY predicts gap in broadband uptake by 2040.
- 18% of homes will still be without a high-speed broadband internet connection unless action is taken.
- Availability of high-speed internet not the only barrier – with cost of full fibre services a problem for elderly, disabled and low-income households.
- Campaign group Broadcast 2040+ says report highlights need to retain traditional broadcasts.
TV broadcasters can’t wait to ditch traditional digital terrestrial TV (DTT, marketed as ‘Freeview’) and digital satellite services. The main public service broadcasters (BBC, ITV, Channel 4 and 5) have joined together to create streaming replacement ‘Freely’. Sky and Virgin Media have launched their own streaming based platforms.
Moving to streaming reduces the cost for broadcasters, as they no longer have to pay for expensive terrestrial TV distribution and can dispense of satellite transponder contracts. Streaming allows them to acquire user data and analytics, which can be used to monetise services or sold to third-parties.
But a report from consultancy firm EY says the UK isn’t ready to adopt online-only TV. It has highlighted barriers that stop broadband internet becoming the universal method of accessing TV.
Campaign group Broadcast 2040+ says the findings justify the safeguarding of traditional TV services until at least 2040.
Our report regarding Freely last week also prompted readers to get in touch with concerns over homes without high speed internet connections, who fear they’ll get a worse service in the coming years.
What’s the problem?
The report predicts that 5.5 million UK premises (18% of homes) will still be without access to high-speed broadband by 2040. That’s despite the Government’s commitment to 99% broadband covering by 2030.
The regions and nations where homes are most likely to be without a high-speed connection by 2040 are Northern Ireland (24% of homes), North East England (21%), Yorkshire and the Humber (20%), North West England (19%), Scotland (19%) and Wales (19%).
The reasons for the lack of connection include no connection available and cost of service. This, according to the report, will affect elderly, disabled and low-income viewers.
Among elderly users, currently 31% of over 65s don’t use the internet at home.
[Context]
At present, BT subsidiary Openreach has plans to rollout full fibre across more of its network in the next few years. But its current rollout plans still don’t cover every telephone exchange area in the country. In some areas, alternative networks aim to connect some areas. But this leaves some users with just the one full fibre network to choose from and no viable internet connection from a traditional copper phone line.
We note that where there is less competition, fibre broadband prices can be substantially more expensive once initial promotional periods end.
The report also highlights the cost as being a barrier to the elderly, disabled and low-income households. Some internet providers offer social tariffs, but these may be speed limited. As a result, the connection bandwidth may not be suitable for multiple users streaming content.
Broadcast 2040+, which is campaigning to keep TV and radio services on the airwaves, has called on the Government to take steps to safeguard broadcasts.
At the moment, Freeview multiplex broadcast licences are only valid until the end of 2034. The World Radiocommunications Conference (WRC-23) held last year agreed the UK and other European countries could continue to use frequencies for terrestrial broadcasting, although this position may be reviewed in the 2031 conference. Any resulting changes wouldn’t happen until the end of the 2030s.
Ofcom is preparing to launch a review of digital terrestrial TV (DTT). It has the power to trigger a early termination of those Freeview multiplex licences from 2030, giving five years notice.
▶ Universal TV provision in the UK
- Digital Terrestrial Television (DTT), marketed as ‘Freeview’, became the default universal way of accessing free-to-air TV services following digital switchover, which ran between 2007 and 2012.
- All main public service channels are delivered through a network of over 1,100 transmitters (including relays), reaching 98% of homes.
- Digital satellite TV – Freesat or Sky satellite (launched as ‘Sky Digital’) – is an alternative way of accessing TV. In some parts of the UK, satellite is currently the only way to access some free-to-air channels, as Freeview only offers a limited selection of channels from relay transmitters.
Responses to the EY report
Colin Browne from the Voice of Listener & Viewer:
It is crucial that all citizens in the UK are able to enjoy high quality, informative and diverse programming, available on a universal basis. This report indicates very clearly that terrestrial TV and radio will continue to have an essential role for many in our country for a very long time.”
Citizens Advice Cornwall Communications Officer, Wailim Wong:
We are concerned about the issues highlighted in the EY report. The disparities between coverage and actual usage underscore a pressing issue that directly impacts the most vulnerable members of our community, including the elderly, disabled and those in rural areas who make-up a large proportion of people who come to see us for help.”
David Coulson, Partner, Economic Advisory at EY
“The EY study indicates that, despite widespread broadband coverage, universal access for all viewers should not be taken for granted. It is crucial those least likely to have high speed broadband in 2040 continue to have access to television, particularly vulnerable groups such as the elderly, disabled individuals, low-income households, and rural communities.”
Marc Thornham