Chapter 6
      Other Issues
      Effects on Australian Industry Development
      6.1 Digital conversion will involve expenditure for broadcasters of about 
        
        $1-$1.5 billion, [1] as well as the replacement 
        of Australia's 10-11 million analog television sets (or addition of set-top 
        boxes) during the simulcast period. The Committee considered the implications 
        of this for the Australian manufacturing industry. 
      6.2 It seems to be accepted that most of the transmission equipment will 
        have to be sourced overseas: 
      The most critical item is the ordering and delivering of transmission 
        and other equipment, most of which will be sourced from North America, 
        Europe and Japan
 Some significant costs, such as installation costs, 
        radiofrequency hardware and distribution equipment can be sourced from 
        Australian suppliers, but to specify Australian manufacture would probably 
        increase costs, due to lack of competition. For HDTV production, most 
        equipment could only be sourced from the main suppliers of such equipment, 
        particularly the main competing Japanese companies. [2] 
      
      6.3 In the case of television receivers, the question arises whether 
        the choice between the US and the European digital transmission systems 
        has any implications for opportunities for Australian industry. FACTS 
        commented: 
      At present there is only one significant manufacturer in Australia for 
        television receivers, Panasonic. As far as FACTS is aware, Panasonic has 
        allegiance to neither the US or European [digital transmission] system. 
        [3] 
      6.4 But it may be argued that in the choice of system, standard benefits 
        to consumers must be paramount: 
      At the end of the process, when we have considered each of these parameters, 
        we will produce a document which will be part of the recommendation we 
        make to the department. This will be the industry recommendation about 
        the system which will be best for Australia, in other words, what is going 
        to be best for the audience
 broadcasters are about maximising the 
        audience
 If we cannot find a benefit in this for the consumers, 
        the consumers are not going to spend money to buy new receivers. [4] 
      
      6.5 FACTS believes that in any case `it is unlikely that large-scale 
        manufacture or assembly of digital receivers will eventuate here, as this 
        is largely located in low-wage countries nowadays. However, opportunities 
        for developing areas of technical excellence will be present if Australia 
        commits to the early introduction of digital television
 We already 
        know of one local manufacturer who has benefited from digital television 
        studies in Australia for making a high-technology product attractive to 
        the United States broadcasting system.' [5] 
      
      6.6 The Committee recommends that the government should further consider 
        means of encouraging opportunities for Australian industry arising from 
        digital conversion, and should consider requiring commercial broadcasters 
        to file industry development plans. A provision on this could be analagous 
        to the industry development provisions of the Telecommunications Act 
        1997. 
      Recommendation 10 
      The Committee recommends that the government should further consider 
        means of encouraging opportunities for Australian manufacturing industry 
        arising from digital conversion. 
      Improved Access to Television Services for People with Disabilities 
      
      Captioning Standards  Clause 35
      6.7 The Television Broadcasting Services (Digital Conversion) Bill 1998 
        (Clause 35 of proposed Schedule 4 of the BSA) requires all programs transmitted 
        during prime viewing hours (6:00 pm to 10:30 pm) and all news and current 
        affairs programs transmitted outside prime viewing hours to be captioned. 
        [6] The Committee notes that `it is intended 
        that these standards would be required to be observed by free to air television 
        broadcasters in relation to programs transmitted in both analog and digital 
        mode'. [7] 
      6.8 Subclause 35(6) makes it clear that FTA broadcasters will not be 
        required to observe captioning standards for analog or digital television 
        services before 1 January 2001, when they commence digital broadcasting, 
        [8] and the date for the captioning of all programs 
        has not been specified in the legislation. The year 2010 has been mentioned 
        to the Committee. [9] 
      6.9 One of the concerns of the commercial television networks was partly 
        removed when, on 3 June 1998, an amendment introduced into the House of 
        Representatives inserted a new subclause 35 (8). As a result of the amendment, 
        captioning of commercial advertisements and sponsorship is recognised 
        as a decision for the advertiser rather than the broadcaster and is now 
        exempted from the captioning requirements in clause 35. 
      6.10 The extension of captioning will assist 1.7 million Australians 
        who are deaf, hard of hearing or of non-English speaking background. A 
        number of submissions supported the captioning initiatives in the Bill. 
        [10] The Australian Caption Centre congratulated 
        the `federal legislators on framing such forward-thinking and socially 
        responsible legislation'. [11] 
      6.11 Ms Germanos-Koutsounadis explained that, in addition to having a 
        hearing impairment, she supported captioning because as a representative 
        of the Ethnic Childcare Family and Community Services Cooperative, she 
        believed that: 
      
captioning will benefit children from non-English speaking backgrounds 
        who speak their home language before they go to school, as they will be 
        able to hear and read the captioning content and this will assist them 
        to learn English. [12] 
      6.12 One issue before the Committee was that of timing, and a number 
        of views were represented in the evidence. The National Working Party 
        on Captioning would like to have the Bill amended so that all Australian 
        television is captioned by the year 2010. [13] 
        The Australian Caption Centre pointed out that the levels of captioning 
        reached in the United Kingdom and the United States are ahead of Australia. 
        [14] 
      6.13 A witness before the Committee, Mr Tayeh, encouraged the Committee 
        to consider the introduction of closed captioning of all programs by the 
        year 2000, to include the Sydney Olympic Games, instead of the year 2010 
        as planned. He indicated that he would support his submission to the inquiry 
        with a further petition to the Senate of more than 43 000 signatures. 
        [15] 
      6.14 By mandating closed captioning services for prime time television 
        programs, the Bill has focussed attention on an important social issue. 
        The Committee recognises that there is a cost involved but it would like 
        to encourage all broadcasters to continue to increase their level of captioning 
        at the earliest opportunity. 
      Captioning of Overseas News 
      6.15 The Special Broadcasting Service (SBS), while supportive of captioning, 
        expressed its concern that under clause 35 (4) (b), it could be required 
        to provide captioning for the overseas news bulletins that it broadcasts 
        (some 6.5 hours of news in 18 languages) direct from the satellite each 
        week: 
      The captioning in the languages concerned
would be so difficult 
        and so costly that SBS would almost certainly have to cease providing 
        this service. [16] 
      6.16 Since those broadcasts cater for a niche market and are likely to 
        duplicate the English language news on a particular day of broadcast, 
        the Committee acknowledges that SBS has a reasonable concern in this area. 
      
      Audio Description for the Visually Impaired
      6.17 The Committee received evidence that the needs of the visually impaired 
        as well as the hearing impaired should be further considered in the migration 
        to new technologies. [17] Conversion to digital 
        television provides an opportunity for the expansion of audio description 
        services. 
      6.18 `Audio description' provides narrated descriptions of the key visual 
        elements of films, videos and television programs without interfering 
        with their audio dialogue. It is anticipated that it will be used increasingly 
        in museums and other public spaces, in classrooms and on computers. `Video 
        description' is currently available in Australia for a limited number 
        of videos (for example, available for loan through support groups for 
        the blind and visually impaired such as the Royal Victorian Institute 
        for the Blind). [18] 
      6.19 In Australia, `audio description' is already being used for sports 
        or events, for example when the radio coverage of a cricket match is used 
        simultaneously with the images from the analog television set. 
      6.20 In North America, three organisations currently provide video description 
        over broadcast and/or cable analog television. Programming includes educational 
        and scientific shows as well as dramas and movies. Three different methods 
        of distribution to the audience are used (open description, description 
        over the Secondary Audio Program (SAP) channel and description over a 
        news reading service). [19] Broadcasters also 
        need to have a stereo broadcasting capability and a SAP exciter. [20] 
      
      6.21 With the advent of digital television, the whole process will become 
        much easier. The delivery of multiple audio channels is part of the basic 
        system. If a broadcast program contains audio description, then this can 
        be transmitted through one of the available channels. The impact on the 
        overall bit usage would be minimal. While the delivery cost would be minimal, 
        there would be costs associated with the production of the audio description. 
      
      6.22 The Broadcasting Act 1996 (UK) requires that from the 10th anniversary 
        of the introduction of a digital service (1998) at least 50 per cent of 
        non-exempt programming must be subtitled and 10 per cent of non-exempt 
        programming must include audio-description. 
      6.23 The Committee considered that a number of issues regarding audio 
        description in Australia were still to be resolved, such as: 
      
        - what types of programs are suitable for audio description (where the 
          content is not available from alternative sources such as radio) 
- whether audio description should be an obligation on broadcasters 
          for new (not archival) material, or simply an option 
- how much assistance from the not-for-profit sector would be required 
          and likely additional funding to that sector 
- introduction of audio broadcasting using analog television or wait 
          for digital. 
- Some audio broadcasting issues were specific to the introduction of 
          digital television, such as: 
- the adoption of either the ATSC or DVB standard and the resulting 
          compatability questions 
- the timing of the introduction of audio description services to accompany 
          digital television (year 2000 or 2010?). 
6.24 The Committee considered that audio broadcasting prior to the introduction 
        of digital television should be evaluated by broadcast and telecommunications 
        industry groups, user groups and consumer groups. 
      Recommendation 11 
      The Committee recommends that the issue of audio description for digital 
        television be referred to the high level Consultative Group on Digital 
        Television established by the Minister for Communications, the Information 
        Economy and the Arts on 29 April 1998 for report by the Minister to the 
        Parliament before the middle of 1999. 
      6.25 The Committee was concerned that with closed captions as well as 
        subtitles, and enhanced programming, the screen might be filled with text. 
        It sought clarification on this issue. Apart from open captions (subtitles), 
        which are `burned into' program footage, additional closed captions and 
        enhancements are optional and it is likely that they may be opened and 
        closed as required, in much the same way that windows on a PC may be opened 
        and closed. 
      Recommendation 12 
      The Committee recommends that the planning committee advising on standards 
        and compatibility requirements consider the issue of standardising open 
        and closed captioning, audio description and other enhancements for viewers 
        with disabilities in order to achieve a simple-to-use approach. 
      Conclusion
      6.26 This has been a very interesting inquiry for all the Committee members 
        who have been involved with it. The Committee has carefully considered 
        all the arguments put to it. The Committee recognises that much remains 
        to be resolved in order to ensure an orderly transition to digital broadcasting 
        for the current free-to-air broadcasting services. However, the Committee 
        is convinced that the passage of the Television Broadcasting Services 
        (Digital Conversion) Bill 1998 and of the Datacasting Charge (Imposition) 
        Bill 1998 is a necessary first step to ensure that when Australian television 
        operates fully in digital mode, Australia will still maintain its world 
        class television system and that there will be minimal disruption to consumers 
        during the transition period. 
      Recommendation 13 
      The Committee recommends that the Bills be passed. 
      Kay Patterson
        Chairman 
       
Footnotes
      [1] Submission No. 2a (Federation of Australian 
        Commercial Televisions Station), p. 10. This figure exceeds the figure 
        of $500-$750 million quoted in paragraph 1.25 by the addition of running 
        costs during the simulcast period. 
      [2] Submission No. 2 (Federation of Australian 
        Commercial Televisions Station), p. 17, No. 2a, p. 10 
      [3] Submission No. 2a (Federation of Australian 
        Commercial Televisions Station), p. 10 
      [4] Transcript of Evidence, p. 26 (Mr Knowles), 
        27 May 1998. 
      [5] Submission No. 2 (Federation of Australian 
        Commercial Televisions Station), p. 18. 
      [6] As the EM explains: Captioning may be either 
        `open' or `closed'. Closed captioning constitutes teletext based supertext 
        subtitles on television programs for the benefit or people with a hearing 
        loss. Closed captions are more extensive than subtitles, because they 
        give a written description of background noises as well as what is actually 
        being aid. Being a teletext service, closed captioning is not a broadcasting 
        service for the purposes of the BSA. At present, closed captions require 
        a decoder in order for the captions to be seen. By contrast, open captions 
        are `burned in' to program footage and can be seen at any time. 
      [7] Explanatory Memorandum, Television Broadcasting 
        Services (Digital Conversion) Bill 1998 and Datacasting Charge (Imposition) 
        Bill 1998, p. 52 
      [8] As above, p.53. 
      [9] Submission No. 6 (National Working Party 
        on Captioning), p. 4; Transcript of evidence, p. 54 (Mr Tayeh) 
      [10] Submission No. 6 (National Working Party 
        on Captioning), p. 4, Submission No. 7 (Australian Caption Centre), Submission 
        No. 11, 11 a, 11b (Mr Tayeh) 
      [11] Submission No. 7 (Australian Caption Centre), 
        p. 4. 
      [12] Transcript of evidence, p. 58 (Ms Germanos-Koutsounadis) 
      
      [13] Submission No. 6 (National Working Party 
        on Captioning), p. 4 
      [14] Submission No. 7 (Australian Caption Centre), 
        p. 2. The Australian Caption Centre considers that the levels of captioning 
        are directly attributable to the provisions of the Broadcasting Act 1996 
        (UK) and the Telecommunications Act 1996 (USA). 
      [15] Submission No. 11 and 11 a (Mr Tayeh) 
      
      [16] Submission No. 3 (SBS  Special Broadcasting 
        Service), p. 4. 
      [17] Submission No. 31b (Association for the 
        Blind), 30 pp. 
      [18] Submission No. 32 (Royal Victorian Institute 
        for the Blind), p. 1. 
      [19] Packer, Jaclyn, 1996, Video description 
        in North America in Burger, D. (ed) New Technologies 
        in the Education of the Visually Handicapped. John Libbey Eurotext, 
        p.103-107. 
      [20] Mr Larry Goldberg, briefing on `Closed 
        Captioning and Video Description of Broadcast Programming' to the third 
        meeting of the Advisory Committee on Public Interest Obligations of Digital 
        Television Broadcasters (January 16th 1998), p.19. Also at http://www.benton.org/policy/tv/briefing1.html