Saturday, 24 October 2009
FOI Response
Paul Eaton
By email: paul_geaton@hotmail.com
23 October 2009
Dear Mr Eaton,
Freedom of information request – RFI20091332
Thank you for your request under the Freedom of Information Act 2000 (“the Act”) dated 20th
September, repeated below. Please accept our apologies for not meeting the 20 working days
deadline for this response.
For ease, I have broken your request into five parts and will respond to each in turn:
PART 1:
“I would like you to send me electronic copies of all reports and papers published by the BBC on
the subject of High Definition Television, since that published in Nov 06 regarding the HD Trial…”
All relevant reports and papers which have been published by the BBC are available online:
The minutes of the Executive Board meeting in June 2009 are available at:
http://www.bbc.co.uk/info/running/executive/index.shtml
The following papers have been published by the BBC Trust and are available via the BBC Trust’s
website: http://www.bbc.co.uk/bbctrust
The following are all the papers relating to HD during the period:
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/pvt_application.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/quantitative_research.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/deliberative_research.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/panel_survey.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave1.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave2.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave3.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave4.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/preliminary_mia.pdf
BBC submission to Ofcom on the choice of the UK transmission mode for high-power Multiplex B
using DVB-T2 modulation:
http://www.ofcom.org.uk/radiocomms/digital/hd_on_dtt/T2ModeDecision/
BBC R&D papers are freely available on the R&D website, which goes back to 2001:
http://www.bbc.co.uk/rd/pubs/whp
PART 2:
“…and including the Paper on the subject presented to the Executive Board in Mar 09.”
Please find this attached as “Disclosure 1”.
You will note that some information has been redacted from the Paper; this is because we
consider the information to be exempt under sections 42 (legal privilege) and 43(2) (commercial
prejudice) of the Act. Please see Appendix 1 for a detailed explanation of why we are withholding
this information.
PART 3:
Further, I would like e-copies of all email traffic dated Jul to Sep 09 sent between BBC HD
Department personnel and the Company supplying the new transmission encoders for BBC HD,
which were introduced into operations on Wednesday 5th Aug 09.
Please find attached, as “Disclosure 2”, email traffic dated July to September 2009 sent between
BBC HD Department personnel and the Company supplying the new transmission encoders for
BBC HD.
Where information, such as direct contact details, has been redacted this has been done under
section 40(2) of the Act. Personal information about living individuals is exempt if disclosure to a
third party would breach one or more principles of the Data Protection Act 1998. As the
individuals involved do not expect their details to be disclosed, to do so would be unfair;
therefore, disclosure would breach the First Data Protection Principle, fairness.
PART 4:
Finally, I would also like e-copies of all internal BBC email traffic between Head of Technology for
BBC HD, Andy Quested and Head of BBC HD, Danielle Nagler, sent during the months of Jul to
Sep 09,
This request was clarified to limit the email traffic to those:
…. containing information regarding: BBC HD transmission bit-rates, encoders, channel PQ, Ofcom
or BBC Executive or Trust directives, HD channel funding, Freesat bandwidth restictions, the BBC
Blogs, HD channel PR or messaging (lines to take) and, most particularly, my complaint about PQ,
sent to Danielle, and her response to it.
Please find attached, as “Disclosure 3”, emails between Andy Quested and Danielle Nagler
between July – September 2009 containing information regarding: BBC HD transmission bitrates,
encoders, channel PQ, Ofcom or BBC Executive or Trust directives, HD channel funding,
Freesat bandwidth restrictions, the BBC Blogs, HD channel PR or messaging (lines to take). The
last part of your request, for emails regarding your complaint, will be dealt with under Part 5
below.
Again, where information has been redacted this has been withheld under s40(2) of the Act, for
the same reasons given in Part 3 above.
PART 5:
I would also like e-copies... containing information regarding: … my complaint about PQ, sent to
Danielle, and her response to it.
Unfortunately, we are unable to process this part of your request under the Freedom of
Information Act 2000 as section 40 exempts the personal data of individuals when they seek
access to their own information. However, you have a right of access to your personal data under
section 7 of the Data Protection Act 1998 (‘the DPA’).
Before we can process your request under the DPA, please:
1. Print, complete and sign the attached application form
2. Send us copies of two pieces of identification -a copy of passport or photocard driving
licence and a copy of bank statement or utility bill dated within the last 3 months; this is to
ensure that we are only passing personal data on to the subject of that data and not to
third parties
3. Send a cheque or postal order payable to the British Broadcasting Corporation for £10
(cash is not accepted).
Please send the completed application form along with your proof of ID and the £10 fee to the
following address:
Data Protection Officer
Information Policy and Compliance
Room 2252, White City
201 Wood Lane
London
W12 7TS
You will receive a response within 40 days of the date that we receive the above items as required
by the DPA.
Appeal Rights
If you are not satisfied with this response you have the right to an internal review by a BBC senior
manager or legal adviser. Please contact us at the address above, explaining what you would like us
to review and including your reference number. If you are not satisfied with the internal review,
you can appeal to the Information Commissioner. The contact details are: Information
Commissioner's Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF, telephone
01625 545 700 or see http://www.ico.gov.uk/
Yours sincerely
Lynne Connolly
Cross Genre Project Manager
BBC Vision
Appendix 1
Section 42
The draft letter which was appended to the Executive Board paper formed part of legal advice
provided by a BBC regulatory lawyer. We consider this to be legally privileged information and we
are therefore withholding it under section 42 of the Act.
As section 42 is a qualified exemption, the BBC has to balance the public interest in disclosing the
legal advice against the public interest in maintaining the exemption. In favour of releasing the
information:
• The BBC accepts that there is a public interest in the BBC being accountable for the
decisions it makes with respect to matters which relate to the distribution of BBC
programmes.
• The BBC also accepts that releasing the information would help ensure that the public is
fully aware of the processes that are undertaken in order to provide the BBC’s HD
service.
In favour of withholding the information:
• The seeking of legal advice by all persons in order to enable them to order their affairs in a
lawful manner is strongly in the public interest. That public interest is perhaps at its
strongest where the client seeking and receiving legal advice is a public body or quasi-public
body whose decisions have the potential to affect large numbers of people. In order for the
seeking of advice to take place and for the advice given to be valuable, it is crucial that the
seeking and giving of such advice be carried out with absolute candour. This requires that
clients be secure in the knowledge that the information that passes between them and
their lawyers in the course of seeking and giving legal advice will be free from scrutiny by
outsiders. As the Information Tribunal recognised in Bellamy v Information Commissioner
EA/2005/0023:
“There is a strong element of public interest inbuilt into the privilege itself. At least equally
strong countervailing considerations would need to be adduced to override that inbuilt
public interest.”
On balance, the BBC believes that the public interest in maintaining the exemption outweighs the
public interest in releasing the information.
Section 43(2):
We are withholding information under section 43(2) because disclosure would be likely to
prejudice the commercial interests of both the BBC and various third parties by:
• Prejudicing the negotiating position of the BBC in ongoing contractual negotiations
between the BBC and other public service broadcaster’s for the future development of HD
services on the DTT platform.
• Weaken the BBC’s bargaining position with suppliers of goods and services; in relation to
producing HD content;
• Weaken the BBC’s and other public service broadcaster’s position in a competitive
environment by revealing market-sensitive information or information of potential
usefulness to competitors of DTT.
As section 43 is a qualified exemption, in accordance with section 2(2) of the Act, we have
considered the public interest factors in this case. Specifically, whether in all the circumstances of
the case, the public interest in maintaining the exemption outweighs the public interest in
disclosing the information.
In favour of disclosure, we recognised that there is a public interest in the following:
• that there is transparency in the accountability of the BBC for public funds;
• that the BBC is using public money effectively, and that the BBC is getting value for money
when purchasing goods and services;
• that the BBC’s commercial activities (including the procurement process) are conducted in
an open and honest way; and
• that business can respond better to opportunities with the BBC.
On the other hand, in considering factors that might weigh in favour of the public interest in
withholding, we took into account:
• That companies, or individuals provide the BBC with commercially sensitive information,
so that the BBC is able to make robust decisions regarding its suppliers of goods and
services, including ensuring that the BBC obtains the best value for money from each
transaction;
• That the BBC maintains a strong bargaining position vis-à-vis suppliers during contractual
negotiations in order to ensure that the licence fee is spent effectively;
• That the competitive position of companies in their particular market is not disadvantaged
by doing business with the BBC. It would not be in the public interest to disclose sensitive
information about a particular company if that information would be likely to be used by
competitors to gain a competitive advantage.
There is information in the public domain regarding the development of HD services on the DTT
platform, links to which were provided to you in Part 1.
I am satisfied, in terms of section 2 of the Act, that in all the circumstances of this case, the public
interest in maintaining the exemption outweighs the public interest in disclosing the information.
By email: paul_geaton@hotmail.com
23 October 2009
Dear Mr Eaton,
Freedom of information request – RFI20091332
Thank you for your request under the Freedom of Information Act 2000 (“the Act”) dated 20th
September, repeated below. Please accept our apologies for not meeting the 20 working days
deadline for this response.
For ease, I have broken your request into five parts and will respond to each in turn:
PART 1:
“I would like you to send me electronic copies of all reports and papers published by the BBC on
the subject of High Definition Television, since that published in Nov 06 regarding the HD Trial…”
All relevant reports and papers which have been published by the BBC are available online:
The minutes of the Executive Board meeting in June 2009 are available at:
http://www.bbc.co.uk/info/running/executive/index.shtml
The following papers have been published by the BBC Trust and are available via the BBC Trust’s
website: http://www.bbc.co.uk/bbctrust
The following are all the papers relating to HD during the period:
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/pvt_application.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/quantitative_research.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/deliberative_research.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/panel_survey.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave1.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave2.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave3.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/wave4.pdf
http://www.bbc.co.uk/bbctrust/assets/files/pdf/consult/hdtv/preliminary_mia.pdf
BBC submission to Ofcom on the choice of the UK transmission mode for high-power Multiplex B
using DVB-T2 modulation:
http://www.ofcom.org.uk/radiocomms/digital/hd_on_dtt/T2ModeDecision/
BBC R&D papers are freely available on the R&D website, which goes back to 2001:
http://www.bbc.co.uk/rd/pubs/whp
PART 2:
“…and including the Paper on the subject presented to the Executive Board in Mar 09.”
Please find this attached as “Disclosure 1”.
You will note that some information has been redacted from the Paper; this is because we
consider the information to be exempt under sections 42 (legal privilege) and 43(2) (commercial
prejudice) of the Act. Please see Appendix 1 for a detailed explanation of why we are withholding
this information.
PART 3:
Further, I would like e-copies of all email traffic dated Jul to Sep 09 sent between BBC HD
Department personnel and the Company supplying the new transmission encoders for BBC HD,
which were introduced into operations on Wednesday 5th Aug 09.
Please find attached, as “Disclosure 2”, email traffic dated July to September 2009 sent between
BBC HD Department personnel and the Company supplying the new transmission encoders for
BBC HD.
Where information, such as direct contact details, has been redacted this has been done under
section 40(2) of the Act. Personal information about living individuals is exempt if disclosure to a
third party would breach one or more principles of the Data Protection Act 1998. As the
individuals involved do not expect their details to be disclosed, to do so would be unfair;
therefore, disclosure would breach the First Data Protection Principle, fairness.
PART 4:
Finally, I would also like e-copies of all internal BBC email traffic between Head of Technology for
BBC HD, Andy Quested and Head of BBC HD, Danielle Nagler, sent during the months of Jul to
Sep 09,
This request was clarified to limit the email traffic to those:
…. containing information regarding: BBC HD transmission bit-rates, encoders, channel PQ, Ofcom
or BBC Executive or Trust directives, HD channel funding, Freesat bandwidth restictions, the BBC
Blogs, HD channel PR or messaging (lines to take) and, most particularly, my complaint about PQ,
sent to Danielle, and her response to it.
Please find attached, as “Disclosure 3”, emails between Andy Quested and Danielle Nagler
between July – September 2009 containing information regarding: BBC HD transmission bitrates,
encoders, channel PQ, Ofcom or BBC Executive or Trust directives, HD channel funding,
Freesat bandwidth restrictions, the BBC Blogs, HD channel PR or messaging (lines to take). The
last part of your request, for emails regarding your complaint, will be dealt with under Part 5
below.
Again, where information has been redacted this has been withheld under s40(2) of the Act, for
the same reasons given in Part 3 above.
PART 5:
I would also like e-copies... containing information regarding: … my complaint about PQ, sent to
Danielle, and her response to it.
Unfortunately, we are unable to process this part of your request under the Freedom of
Information Act 2000 as section 40 exempts the personal data of individuals when they seek
access to their own information. However, you have a right of access to your personal data under
section 7 of the Data Protection Act 1998 (‘the DPA’).
Before we can process your request under the DPA, please:
1. Print, complete and sign the attached application form
2. Send us copies of two pieces of identification -a copy of passport or photocard driving
licence and a copy of bank statement or utility bill dated within the last 3 months; this is to
ensure that we are only passing personal data on to the subject of that data and not to
third parties
3. Send a cheque or postal order payable to the British Broadcasting Corporation for £10
(cash is not accepted).
Please send the completed application form along with your proof of ID and the £10 fee to the
following address:
Data Protection Officer
Information Policy and Compliance
Room 2252, White City
201 Wood Lane
London
W12 7TS
You will receive a response within 40 days of the date that we receive the above items as required
by the DPA.
Appeal Rights
If you are not satisfied with this response you have the right to an internal review by a BBC senior
manager or legal adviser. Please contact us at the address above, explaining what you would like us
to review and including your reference number. If you are not satisfied with the internal review,
you can appeal to the Information Commissioner. The contact details are: Information
Commissioner's Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF, telephone
01625 545 700 or see http://www.ico.gov.uk/
Yours sincerely
Lynne Connolly
Cross Genre Project Manager
BBC Vision
Appendix 1
Section 42
The draft letter which was appended to the Executive Board paper formed part of legal advice
provided by a BBC regulatory lawyer. We consider this to be legally privileged information and we
are therefore withholding it under section 42 of the Act.
As section 42 is a qualified exemption, the BBC has to balance the public interest in disclosing the
legal advice against the public interest in maintaining the exemption. In favour of releasing the
information:
• The BBC accepts that there is a public interest in the BBC being accountable for the
decisions it makes with respect to matters which relate to the distribution of BBC
programmes.
• The BBC also accepts that releasing the information would help ensure that the public is
fully aware of the processes that are undertaken in order to provide the BBC’s HD
service.
In favour of withholding the information:
• The seeking of legal advice by all persons in order to enable them to order their affairs in a
lawful manner is strongly in the public interest. That public interest is perhaps at its
strongest where the client seeking and receiving legal advice is a public body or quasi-public
body whose decisions have the potential to affect large numbers of people. In order for the
seeking of advice to take place and for the advice given to be valuable, it is crucial that the
seeking and giving of such advice be carried out with absolute candour. This requires that
clients be secure in the knowledge that the information that passes between them and
their lawyers in the course of seeking and giving legal advice will be free from scrutiny by
outsiders. As the Information Tribunal recognised in Bellamy v Information Commissioner
EA/2005/0023:
“There is a strong element of public interest inbuilt into the privilege itself. At least equally
strong countervailing considerations would need to be adduced to override that inbuilt
public interest.”
On balance, the BBC believes that the public interest in maintaining the exemption outweighs the
public interest in releasing the information.
Section 43(2):
We are withholding information under section 43(2) because disclosure would be likely to
prejudice the commercial interests of both the BBC and various third parties by:
• Prejudicing the negotiating position of the BBC in ongoing contractual negotiations
between the BBC and other public service broadcaster’s for the future development of HD
services on the DTT platform.
• Weaken the BBC’s bargaining position with suppliers of goods and services; in relation to
producing HD content;
• Weaken the BBC’s and other public service broadcaster’s position in a competitive
environment by revealing market-sensitive information or information of potential
usefulness to competitors of DTT.
As section 43 is a qualified exemption, in accordance with section 2(2) of the Act, we have
considered the public interest factors in this case. Specifically, whether in all the circumstances of
the case, the public interest in maintaining the exemption outweighs the public interest in
disclosing the information.
In favour of disclosure, we recognised that there is a public interest in the following:
• that there is transparency in the accountability of the BBC for public funds;
• that the BBC is using public money effectively, and that the BBC is getting value for money
when purchasing goods and services;
• that the BBC’s commercial activities (including the procurement process) are conducted in
an open and honest way; and
• that business can respond better to opportunities with the BBC.
On the other hand, in considering factors that might weigh in favour of the public interest in
withholding, we took into account:
• That companies, or individuals provide the BBC with commercially sensitive information,
so that the BBC is able to make robust decisions regarding its suppliers of goods and
services, including ensuring that the BBC obtains the best value for money from each
transaction;
• That the BBC maintains a strong bargaining position vis-à-vis suppliers during contractual
negotiations in order to ensure that the licence fee is spent effectively;
• That the competitive position of companies in their particular market is not disadvantaged
by doing business with the BBC. It would not be in the public interest to disclose sensitive
information about a particular company if that information would be likely to be used by
competitors to gain a competitive advantage.
There is information in the public domain regarding the development of HD services on the DTT
platform, links to which were provided to you in Part 1.
I am satisfied, in terms of section 2 of the Act, that in all the circumstances of this case, the public
interest in maintaining the exemption outweighs the public interest in disclosing the information.
FOI Disclosure 1
STRICTLY CONFIDENTIAL
EXECUTIVE BOARD EB(09) 40
Title: High Definition (HD) services on DTT: moving forwards in the
light of new developments
Action: FOR DECISION
Meeting: 9 March 2009
Purpose:
Previous notes have updated the Executive Board on the proposed reorganisation of the Digital
Terrestrial Television (DTT) platform, with the aim of enabling Freeview viewers to receive freeto-
air, PSB High Definition (HD) services. This paper gives a further update,
[ Redacted under s43(2) ]
This paper sets out options for the way forward and requests decisions on the approach to be
taken – in particular, on the evolution of the BBC’s HD offer. It highlights the need to move with
some urgency in order to support other PSBs and explains the plans for a broader HD offer on
DTT which is even more compelling to audiences and will help to safeguard the platform’s future.
The proposal is that the existing BBC HD service should be extended from 9 to 18 hours by
2012, [ Redacted under s43(2) ] This paper sets out the outline
costs and risks around these plans.
Recommendation:
The Executive Board is invited to:
• Note the new situation [ Redacted under s43(2) ]
• [ Redacted under s43(2) ]
• [ Redacted under s43(2) ]
• Support the proposals outlined in Section 3.4.
• Agree that a finance case should be presented to the BBC Finance Committee.
• Agree that the BBC Trust should be provided with an outline of these proposals, ahead of the
presentation of more formal plans.
Name Title
Authors: Catherine Smadja
Danielle Nagler
Head of Special Projects, Policy & Strategy
Head of BBC HD
Sponsors: Caroline Thomson
Jana Bennett
Chief Operating Officer
Director, BBC Vision
Onward Date Board or Committee
approval path: 19 March 2009 BBC Trust
STRICTLY CONFIDENTIAL EB(09) 40
APPROVAL PATH TO DATE
Board or
Cttee
Date Summary of feedback on paper and resulting amendments
Executive
Board
9 February
2009
Decision requested on two main issues:
• Whether to purchase additional capacity from C4 (in the
context of how to use available capacity on Mux 1). It was
decided not to do so at this stage but to keep our options
open and to continue discussions.
• Whether to pursue the proposed negotiating approach with
the other PSBs. The negotiating approach was agreed.
STRICTLY CONFIDENTIAL EB(09) 40
1
HD ON DTT: MOVING FORWARDS IN THE LIGHT OF NEW DEVELOPMENTS
1. Context
1.1 The T2 Programme is well on track in terms of infrastructure and technology. DVB-T2
transmissions are on air from Crystal Palace, contributing to an industry-wide pilot which includes
a successful end-to-end test. Manufacturers are reasonably confident that they can produce
equipment in time for the planned launch, with volumes increasing during the course of 2010.
Subject to the signature of appropriate contracts by June 2009, the transmission network should
be ready for the launch of three HD services at Winter Hill and London in December 2009, with
coverage building so that 45-50% of the population will be able to access Freeview HD by the
World Cup in June 2010. It will be possible to launch a fourth HD service from mid-2010, for
which slot Ofcom has received two applications – one from Five and the other jointly from
Channel 4 and S4C.
1.2 In order for Multiplex (Mux) B to be able to carry BBC HD and three other HD services
selected by Ofcom, we need to commission Siemens to build new coding and multiplexing systems
and Arqiva to upgrade some critical components of the DTT transmission infrastructure. The
annual incremental cost of these upgrades, from the completion of switchover, is estimated to be
[ s43(2) ] a year above the existing costs of transmission attributable to Mux B [ s43(2) ]. From
the end of switchover, which broadly coincides with the time when we expect the mux to be able
to carry five HD services, the annual charge per service will be in the order of [ s43(2) ] (including
a small allowance for overheads). As we will gradually upgrade our mux following the switchover
process, the total cost of the upgrade from now to the end of the licence fee period will be in the
region of [ s43(2) ], in addition to the [ s43(2) ] for the existing costs of Mux B. On a full cost
recovery basis, each HD broadcaster would pay in total around [ s43(2) ] between December
2009 and April 2013.
1.3 These figures were well known by Ofcom and the PSBs at the time of the initial selection
process last autumn. In addition, we have always made it clear that we would only be able to sign
contracts with our suppliers and deliver the T2 upgrade if we had secured long-term contracts
with the selected HD broadcasters which ensured that they would pay their share of the full costs
of Mux B. In order for Ofcom to reserve capacity on Mux B for the broadcast of PSB HD
services, this capacity needs to be available – and it will only come into existence once the T2
upgrade has been funded and implemented. The upgrade can only legitimately be funded by the
BBC – and, subsequently, generate value for the BBC, DTT and licence fee payers – if (i) there is a
critical mass of HD services on DTT during switchover, at the time when consumers are
upgrading their equipment; and (ii) the BBC can offset some of its distribution costs by sharing
them with other broadcasters.
1.4 [ Redacted under s43(2) ]
STRICTLY CONFIDENTIAL EB(09) 40
2
2. Current situation
2.1 At the time of writing, ITV is considering the BBC’s revised terms. They recognise that we
have made significant efforts and cannot go further without raising state aid issues, but the
indications are that they are very unlikely to consider that HD on DTT fits with their new
strategy.
2.2 Both Five and C4/S4C have applied for the fourth HD slot to be allocated by Ofcom. Ofcom
is considering their applications and will make a decision by the end of April.
[ Redacted under s43(2) ]
2.3 In the meantime, Ofcom seem keen to continue with their plans – regardless of the
circumstances – and they have issued a second version of the draft licence for Mux B which, we
believe, is still not acceptable, as they have not taken into account our very serious reservations
on their first draft. (Attached as Appendix 1 is a letter which we are sending to Ofcom, outlining
our concerns). This new licence would reserve capacity for ITV and C4/S4C on Mux B and
require the BBC to upgrade it, bearing all the costs whether or not it receives appropriate
compensation from the other broadcasters. In parallel, Ofcom has issued draft licences for ITV
and C4/S4C HD services. It plans to issue all final licences by the end of March.
[ Redacted under s43(2) ]
STRICTLY CONFIDENTIAL EB(09) 40
3
[ Redacted under s43(2) ]
3. BBC HD service offer
3.1 In December 2007 the BBC launched BBC HD, now available to just over 1 million homes
through Sky, Virgin, and Freesat. The channel – which operates for 9 hours a day, with a mix of
‘true’ HD content from across the BBC portfolio – routinely reaches over 600,000 viewers a
week and, on occasions, has claimed over 7% of viewing in HD homes. BBC HD content will also
STRICTLY CONFIDENTIAL EB(09) 40
4
become available through iPlayer in April 2009, and it is available internationally through BBC
Worldwide HD channels (currently in Australia and Scandinavia) and programme sales.
3.2 The migration of our content to HD has value to the BBC in terms of international sales, longterm
archive usage, and overall production quality. In some genres production across the industry
is migrating to HD and, in other areas, we are leading the way. In 2008/9 around 23% of original
content commissioned by the BBC (excluding news) will be delivered in HD. In 2009/10 we are
targeting a minimum of 30% of hours, with continuing stepped increases over subsequent years.
Aside from the desirability of showcasing content we have available in HD to the rapidly growing
HD-enabled audience, research and feedback consistently suggest that audiences want longer
broadcast hours on BBC HD. Almost all other HD channels available in the UK offer a 24 hour
service, using either content loops or a simulcast of an existing channel combining ‘true’ HD
programmes with upconverted SD content.
3.3 The upgrade of Mux B to DVB-T2 will allow HD content to be offered on DTT for the first
time, future-proofing Freeview. Under the reorganisation as planned, the BBC has one of the first
four PSB HD slots, and it should also be awarded the fifth slot, potentially available in 2012.1
3.4 [ Redacted under s43(2) ]
3.5 We have also considered both the possibility of doing nothing in relation to our existing BBC
HD service (i.e. leaving it at 9 hours) [ Redacted under s43(2) ] . We have rejected these
options due to a combination of factors, including:
• the channel mix which is best able to support HD on DTT and the BBC’s public purposes;
• the rate at which we can migrate BBC-commissioned content to HD, considering the costs
of doing so and the speed at which those costs will decrease;
• the rate of growth in the number of HD homes;
• the need to use spectrum efficiently; and
1 Note: The availability of a fifth slot is subject to ongoing capacity efficiencies and, subsequently, to Ofcom’s decision
that the additional slot can be provided without degradation of picture quality for the first four services.
STRICTLY CONFIDENTIAL EB(09) 40
5
• the need to ensure that Freeview remains an effective partnership with other PSBs.
3.6 [ Redacted under s43(2) ].
4. Costs
4.1 Distribution costs for the BBC HD service are currently [ Redacted under s43(2) ]
The additional cost of launching the current BBC HD service (plus three of four other HD
services) on DTT is expected to be [ s43(2) ] (from the completion of switchover). This cost is fixed,
irrespective of the number of HD channels which are ready to share this capacity or, indeed, the
number of hours during which each of these channels requires capacity.
4.2 [ Redacted under s43(2) ]
4.3 We have examined all other areas of cost in relation both to an extension of hours
[ Redacted under s43(2) ]. There is no significant difference in whether we offer [ Redacted under
s43(2) ], or a service which runs through peak or, indeed, in relation to the particular content
offer which we develop. This is because in extending hours we are already close to the limits of
the volume of content which we can sensibly migrate to HD. [ Redacted under s43(2) ]
4.4 The main area of cost associated with an extension of the existing BBC HD service is in
content migration – funding additional costs across the production process for delivery in HD (e.g.
HD camera hire, hire of HD post-production resources, additional studio and OB costs, and set
upgrade where required for new shows etc). These costs vary by genre and, while they are falling,
they are not yet close to zero and we have limited ability to reduce many of these costs. We are,
therefore, looking at alternative methods of HD investment to reduce the cost per hour more
STRICTLY CONFIDENTIAL EB(09) 40
6
rapidly. Our estimates reflect these new initiatives, to support our assumptions that we will
achieve substantial year-on-year cost reductions.
4.5 An extension of hours for BBC HD requires some limited increase in our playout costs.
[ Redacted under s43(2) ]
Other costs associated with these proposals include connectivity (FM&T),
Sport content (Sport), Marketing (MC&A), channel management, acquisitions and repeats (BBC
Vision). None of these costs varies significantly in these scenarios. The table below outlines the
projected costs and income.
Projected costs/income for increased delivery of BBC HD services (£m)
2009/10 2010/11 2011/12 2012/13 Total Vision total
separated outt
From
2013/14
Existing 9 hour service
Extension of BBC HD Channel
[ costs redacted under s43(2) ]
[ s43(2) ]
[ s43(2) ]
[ s43(2) ]
[ s43(2) ]
[ s43(2) ]
4.6 Issues around the funding available for our existing BBC HD service are already being
addressed within BBC Vision, as part of the work on reprioritisation. BBC Vision is, therefore,
already carrying a risk of around [ s43(2) ] over the four year period in relation to content
migration funding required to sustain the service over the period (for which we have not currently
budgeted). [ Redacted under s43(2) ].
5. Conclusion
5.1 The BBC is committed to finding a way forward for Freeview HD, in order to build on the
DTT platform’s strength and support the BBC’s move to HD production and broadcast.
[ Redacted under s43(2) ].
This has resulted in a proposal to develop the BBC HD service.
5.2 The Executive Board is asked to:
• [ Redacted under s43(2) ].
• [ Redacted under s43(2) ].
• [ Redacted under s43(2) ].
• Support the proposals (outlined in Section 3.4) to develop the BBC HD service.
• Agree that a finance case should be presented to the BBC Finance Committee.
• Agree that the BBC Trust should be provided with an outline of the updated HD on DTT
proposals, ahead of the presentation of more formal plans.
STRICTLY CONFIDENTIAL EB(09) 40
7
Appendix 1: [ Redacted under s42 ]
EXECUTIVE BOARD EB(09) 40
Title: High Definition (HD) services on DTT: moving forwards in the
light of new developments
Action: FOR DECISION
Meeting: 9 March 2009
Purpose:
Previous notes have updated the Executive Board on the proposed reorganisation of the Digital
Terrestrial Television (DTT) platform, with the aim of enabling Freeview viewers to receive freeto-
air, PSB High Definition (HD) services. This paper gives a further update,
[ Redacted under s43(2) ]
This paper sets out options for the way forward and requests decisions on the approach to be
taken – in particular, on the evolution of the BBC’s HD offer. It highlights the need to move with
some urgency in order to support other PSBs and explains the plans for a broader HD offer on
DTT which is even more compelling to audiences and will help to safeguard the platform’s future.
The proposal is that the existing BBC HD service should be extended from 9 to 18 hours by
2012, [ Redacted under s43(2) ] This paper sets out the outline
costs and risks around these plans.
Recommendation:
The Executive Board is invited to:
• Note the new situation [ Redacted under s43(2) ]
• [ Redacted under s43(2) ]
• [ Redacted under s43(2) ]
• Support the proposals outlined in Section 3.4.
• Agree that a finance case should be presented to the BBC Finance Committee.
• Agree that the BBC Trust should be provided with an outline of these proposals, ahead of the
presentation of more formal plans.
Name Title
Authors: Catherine Smadja
Danielle Nagler
Head of Special Projects, Policy & Strategy
Head of BBC HD
Sponsors: Caroline Thomson
Jana Bennett
Chief Operating Officer
Director, BBC Vision
Onward Date Board or Committee
approval path: 19 March 2009 BBC Trust
STRICTLY CONFIDENTIAL EB(09) 40
APPROVAL PATH TO DATE
Board or
Cttee
Date Summary of feedback on paper and resulting amendments
Executive
Board
9 February
2009
Decision requested on two main issues:
• Whether to purchase additional capacity from C4 (in the
context of how to use available capacity on Mux 1). It was
decided not to do so at this stage but to keep our options
open and to continue discussions.
• Whether to pursue the proposed negotiating approach with
the other PSBs. The negotiating approach was agreed.
STRICTLY CONFIDENTIAL EB(09) 40
1
HD ON DTT: MOVING FORWARDS IN THE LIGHT OF NEW DEVELOPMENTS
1. Context
1.1 The T2 Programme is well on track in terms of infrastructure and technology. DVB-T2
transmissions are on air from Crystal Palace, contributing to an industry-wide pilot which includes
a successful end-to-end test. Manufacturers are reasonably confident that they can produce
equipment in time for the planned launch, with volumes increasing during the course of 2010.
Subject to the signature of appropriate contracts by June 2009, the transmission network should
be ready for the launch of three HD services at Winter Hill and London in December 2009, with
coverage building so that 45-50% of the population will be able to access Freeview HD by the
World Cup in June 2010. It will be possible to launch a fourth HD service from mid-2010, for
which slot Ofcom has received two applications – one from Five and the other jointly from
Channel 4 and S4C.
1.2 In order for Multiplex (Mux) B to be able to carry BBC HD and three other HD services
selected by Ofcom, we need to commission Siemens to build new coding and multiplexing systems
and Arqiva to upgrade some critical components of the DTT transmission infrastructure. The
annual incremental cost of these upgrades, from the completion of switchover, is estimated to be
[ s43(2) ] a year above the existing costs of transmission attributable to Mux B [ s43(2) ]. From
the end of switchover, which broadly coincides with the time when we expect the mux to be able
to carry five HD services, the annual charge per service will be in the order of [ s43(2) ] (including
a small allowance for overheads). As we will gradually upgrade our mux following the switchover
process, the total cost of the upgrade from now to the end of the licence fee period will be in the
region of [ s43(2) ], in addition to the [ s43(2) ] for the existing costs of Mux B. On a full cost
recovery basis, each HD broadcaster would pay in total around [ s43(2) ] between December
2009 and April 2013.
1.3 These figures were well known by Ofcom and the PSBs at the time of the initial selection
process last autumn. In addition, we have always made it clear that we would only be able to sign
contracts with our suppliers and deliver the T2 upgrade if we had secured long-term contracts
with the selected HD broadcasters which ensured that they would pay their share of the full costs
of Mux B. In order for Ofcom to reserve capacity on Mux B for the broadcast of PSB HD
services, this capacity needs to be available – and it will only come into existence once the T2
upgrade has been funded and implemented. The upgrade can only legitimately be funded by the
BBC – and, subsequently, generate value for the BBC, DTT and licence fee payers – if (i) there is a
critical mass of HD services on DTT during switchover, at the time when consumers are
upgrading their equipment; and (ii) the BBC can offset some of its distribution costs by sharing
them with other broadcasters.
1.4 [ Redacted under s43(2) ]
STRICTLY CONFIDENTIAL EB(09) 40
2
2. Current situation
2.1 At the time of writing, ITV is considering the BBC’s revised terms. They recognise that we
have made significant efforts and cannot go further without raising state aid issues, but the
indications are that they are very unlikely to consider that HD on DTT fits with their new
strategy.
2.2 Both Five and C4/S4C have applied for the fourth HD slot to be allocated by Ofcom. Ofcom
is considering their applications and will make a decision by the end of April.
[ Redacted under s43(2) ]
2.3 In the meantime, Ofcom seem keen to continue with their plans – regardless of the
circumstances – and they have issued a second version of the draft licence for Mux B which, we
believe, is still not acceptable, as they have not taken into account our very serious reservations
on their first draft. (Attached as Appendix 1 is a letter which we are sending to Ofcom, outlining
our concerns). This new licence would reserve capacity for ITV and C4/S4C on Mux B and
require the BBC to upgrade it, bearing all the costs whether or not it receives appropriate
compensation from the other broadcasters. In parallel, Ofcom has issued draft licences for ITV
and C4/S4C HD services. It plans to issue all final licences by the end of March.
[ Redacted under s43(2) ]
STRICTLY CONFIDENTIAL EB(09) 40
3
[ Redacted under s43(2) ]
3. BBC HD service offer
3.1 In December 2007 the BBC launched BBC HD, now available to just over 1 million homes
through Sky, Virgin, and Freesat. The channel – which operates for 9 hours a day, with a mix of
‘true’ HD content from across the BBC portfolio – routinely reaches over 600,000 viewers a
week and, on occasions, has claimed over 7% of viewing in HD homes. BBC HD content will also
STRICTLY CONFIDENTIAL EB(09) 40
4
become available through iPlayer in April 2009, and it is available internationally through BBC
Worldwide HD channels (currently in Australia and Scandinavia) and programme sales.
3.2 The migration of our content to HD has value to the BBC in terms of international sales, longterm
archive usage, and overall production quality. In some genres production across the industry
is migrating to HD and, in other areas, we are leading the way. In 2008/9 around 23% of original
content commissioned by the BBC (excluding news) will be delivered in HD. In 2009/10 we are
targeting a minimum of 30% of hours, with continuing stepped increases over subsequent years.
Aside from the desirability of showcasing content we have available in HD to the rapidly growing
HD-enabled audience, research and feedback consistently suggest that audiences want longer
broadcast hours on BBC HD. Almost all other HD channels available in the UK offer a 24 hour
service, using either content loops or a simulcast of an existing channel combining ‘true’ HD
programmes with upconverted SD content.
3.3 The upgrade of Mux B to DVB-T2 will allow HD content to be offered on DTT for the first
time, future-proofing Freeview. Under the reorganisation as planned, the BBC has one of the first
four PSB HD slots, and it should also be awarded the fifth slot, potentially available in 2012.1
3.4 [ Redacted under s43(2) ]
3.5 We have also considered both the possibility of doing nothing in relation to our existing BBC
HD service (i.e. leaving it at 9 hours) [ Redacted under s43(2) ] . We have rejected these
options due to a combination of factors, including:
• the channel mix which is best able to support HD on DTT and the BBC’s public purposes;
• the rate at which we can migrate BBC-commissioned content to HD, considering the costs
of doing so and the speed at which those costs will decrease;
• the rate of growth in the number of HD homes;
• the need to use spectrum efficiently; and
1 Note: The availability of a fifth slot is subject to ongoing capacity efficiencies and, subsequently, to Ofcom’s decision
that the additional slot can be provided without degradation of picture quality for the first four services.
STRICTLY CONFIDENTIAL EB(09) 40
5
• the need to ensure that Freeview remains an effective partnership with other PSBs.
3.6 [ Redacted under s43(2) ].
4. Costs
4.1 Distribution costs for the BBC HD service are currently [ Redacted under s43(2) ]
The additional cost of launching the current BBC HD service (plus three of four other HD
services) on DTT is expected to be [ s43(2) ] (from the completion of switchover). This cost is fixed,
irrespective of the number of HD channels which are ready to share this capacity or, indeed, the
number of hours during which each of these channels requires capacity.
4.2 [ Redacted under s43(2) ]
4.3 We have examined all other areas of cost in relation both to an extension of hours
[ Redacted under s43(2) ]. There is no significant difference in whether we offer [ Redacted under
s43(2) ], or a service which runs through peak or, indeed, in relation to the particular content
offer which we develop. This is because in extending hours we are already close to the limits of
the volume of content which we can sensibly migrate to HD. [ Redacted under s43(2) ]
4.4 The main area of cost associated with an extension of the existing BBC HD service is in
content migration – funding additional costs across the production process for delivery in HD (e.g.
HD camera hire, hire of HD post-production resources, additional studio and OB costs, and set
upgrade where required for new shows etc). These costs vary by genre and, while they are falling,
they are not yet close to zero and we have limited ability to reduce many of these costs. We are,
therefore, looking at alternative methods of HD investment to reduce the cost per hour more
STRICTLY CONFIDENTIAL EB(09) 40
6
rapidly. Our estimates reflect these new initiatives, to support our assumptions that we will
achieve substantial year-on-year cost reductions.
4.5 An extension of hours for BBC HD requires some limited increase in our playout costs.
[ Redacted under s43(2) ]
Other costs associated with these proposals include connectivity (FM&T),
Sport content (Sport), Marketing (MC&A), channel management, acquisitions and repeats (BBC
Vision). None of these costs varies significantly in these scenarios. The table below outlines the
projected costs and income.
Projected costs/income for increased delivery of BBC HD services (£m)
2009/10 2010/11 2011/12 2012/13 Total Vision total
separated outt
From
2013/14
Existing 9 hour service
Extension of BBC HD Channel
[ costs redacted under s43(2) ]
[ s43(2) ]
[ s43(2) ]
[ s43(2) ]
[ s43(2) ]
[ s43(2) ]
4.6 Issues around the funding available for our existing BBC HD service are already being
addressed within BBC Vision, as part of the work on reprioritisation. BBC Vision is, therefore,
already carrying a risk of around [ s43(2) ] over the four year period in relation to content
migration funding required to sustain the service over the period (for which we have not currently
budgeted). [ Redacted under s43(2) ].
5. Conclusion
5.1 The BBC is committed to finding a way forward for Freeview HD, in order to build on the
DTT platform’s strength and support the BBC’s move to HD production and broadcast.
[ Redacted under s43(2) ].
This has resulted in a proposal to develop the BBC HD service.
5.2 The Executive Board is asked to:
• [ Redacted under s43(2) ].
• [ Redacted under s43(2) ].
• [ Redacted under s43(2) ].
• Support the proposals (outlined in Section 3.4) to develop the BBC HD service.
• Agree that a finance case should be presented to the BBC Finance Committee.
• Agree that the BBC Trust should be provided with an outline of the updated HD on DTT
proposals, ahead of the presentation of more formal plans.
STRICTLY CONFIDENTIAL EB(09) 40
7
Appendix 1: [ Redacted under s42 ]
Friday, 16 October 2009
Welcome
Later today, Fri 16 Oct 09, I hope to get an answer to an FOI request I put in to the BBC last month. I'm hoping that, although new to Blogging, by setting this account up I will find some way of sharing, with the WWW, all the knowledge gained from the BBC's response.
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