Contribution
Thank you, Mr Twigg; I will do my best to keep to your limit.
I congratulate my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) on obtaining the debate. This is an important issue, and he is absolutely right that not enough discussion has taken place. Even though the potential for switch-off is a number of years away, it is an important issue that we need to start considering now. However, I will take a slightly different line from my right hon. Friend, although I will try not to fall into his category of media elite—I do not think I would include myself in that.
Twenty years ago, I became Chair of the Culture, Media and Sport Committee, and the first report that we conducted was into analogue switch-off. Older Members may remember that there was a time when television was broadcast in analogue, and it was decided to switch off the analogue signal and move fully to digital. There was real concern about the consequences: blank screens would feature across the nation and reliance on the digital network was going to undermine the universality of the service. A lot of money and time was spent to meet that. Now, of course, nobody would ever suggest going back to analogue transmission of television.
Internet protocol television is growing. Obviously, take-up of streaming services such as Netflix, Amazon and Disney is possible only through smart television sets that are capable of receiving streaming services. As we know from Ofcom, more and more people are turning to those services. Four years ago, I purchased a Sky Glass TV. I think it is still the only television that has no digital terrestrial television receiver in it at all; it operates only on IPTV and, without wishing to give too much of a plug to Sky, it is very good. I think that is where we will eventually head. Switching off the DTT signal and moving purely to IPTV is, I think, inevitable, but it is a long way off. For that reason, I welcome my right hon. Friend’s initiative in starting the discussion publicly now.
There are benefits to switching off for consumers, and indeed for taxpayers. It opens up the possibility of using the existing DTT spectrum for something else. We can speculate about what that might be, but the spectrum is already under pressure from mobile services, the internet without things and all those things, so spectrum is a valuable commodity. It will save the broadcasters a bit of money, because at the moment they have to meet the cost of simulcasting on DTT and online. I think there will be advantages and, as Ofcom said, there will come a tipping point when it really becomes no longer economically viable to continue to maintain a DTT service.
The other reason why I think a switch-off is worth considering is the future of the BBC. Fewer and fewer people each year choose to pay the licence fee, and we need to look at alternatives. Lots of people say, “Well, in that case, why can’t we just operate like Netflix or Amazon and charge people?” The reason is that the BBC cannot, unless it has streamed services with conditional access that allows people to choose not to receive it. That is also an important part of the debate.
My right hon. Friend is absolutely right that there are real challenges. The cost has already been referred to. In government, I had responsibility for Project Gigabit—the Minister will be all too familiar with that—and the initiative to extend gigabit broadband coverage across the country. We still have some way to go. It would be unthinkable to turn off DTT before we reach the point at which gigabit broadband is universal.
In addition to reach, there is also the question of cost. We are reaching a moment at which it will be very difficult to operate without access to broadband because more and more services are going online. We need to look at all those issues before we decide to turn off. I personally think that the date that has been set as a guarantee for DTT continuing—2034—is about right. I would not want to go further than that; I am not saying that we should switch off in 2034, but it is still nine years away, and at that time the world may look very different. I think the moment will come when it clearly makes sense for broadcasting and for consumers that we move to pure internet protocol television.