1. Click to edit Master title style 1 Digital Television: Tomorrow is Today 12 th February 2007 UK Switchover David Mortimer, Head of Public Affairs

2. Click to edit Master title style 2 Digital UK: leading UK switchover Ownership: Public service broadcasters and multiplex operators Board Representation:Retailers, installers and manufacturers Programme Co-ordination:Government, Ofcom Platform Advisors: Consumer Interests:The Consumer Expert Group

3. Click to edit Master title style 3 Digital Switchover Programme Status 1999200520082012 Policy Development & Planning Communication & Mobilisation Implementation & Switchover 1999Secretary of State suggests ‘digital switchover’ 2001Government ‘Digital TV Action Plan’ launched 2003Secretary of State commits to switchover 2004‘Digital TV Action Plan’ report Apr ’05Digital UK formed Sept ’05Digital UK launches to public May ’06Digital UK launched first major communications campaign Oct ’07Switchover starts in Whitehaven Q4 2008Regional switchover begins with Border Q4 2012Switchover completes with Ulster

4. Click to edit Master title style 4 Sweden - 50% of the Swedish population have now switched over Finland - remain on track for switch-off by 31 August 2007 Germany - remain on-track to achieve a 2008 switch-off Italy - switchover slated for completion by 31 December 2008 Norway - will then switch-off analogue terrestrial between end of 2008 and late 2009 or early 2010 USA - have set a switchover date of 17 February 2009 Vs Australia – have set a target switchover timeframe of 2010- 2012 Year Starting: UK Finish UK Start TODAY Switchover completed Switchover in progress Switchover plan set Tentative switchover dates Switchover is a global phenomenon

5. Click to edit Master title style 5 The benefits of digital TV Digital TV also offers features for those with hearing and sight impairments

6. Click to edit Master title style 6 The switchover timetable Re-engineering the UK’s terrestrial network:  Conversion of 1,154 transmitters  Delivering universal coverage of 98.5% (equivalent to analogue today)  Finalising transmitter timetable By ITV Region starting in: 2007Whitehaven 2008Border 2009Westcountry, Wales, Granada 2010West, Scottish 2011Central, Yorkshire, Anglia 2012Meridian, London, Tyne Tees, Ulster

7. Click to edit Master title style 7 Programme Structure ’ Communications 1 Consumer & Market Research 2 Consumer & Public Affairs 3 Broadcast Infrastructure 4 Housing & Property 5 Digital Equipment 6 Help Scheme 7 Ofcom Regulatory 8 Government Statutory 9 Digital UK Programme Office Switchover Programme Group [Digital UK, Government & Ofcom] Digital UK Board [broadcasters, multiplexes, supply chain] Ministerial Group [Government, stakeholders]

8. Click to edit Master title style 8 Digital Switchover Funding Industry Costs Terrestrial network upgrade Digital UK Operations Digital UK Communications / Assistance Switchover Help Scheme Source of Funds All broadcasters£500m All broadcasters £25m BBC Licence Fee£200m BBC Licence Fee£600m BBC Licence Fee Funding  Switchover costs are being ring-fenced  Agreement between Government and BBC  One off and non-recurring cost

9. Click to edit Master title style 9 Most homes already multi-channel Source: Ofcom Q3 Digital TV Progress Report Market share of UK multichannel TV homes, Q3 2006  75% of homes are multi-channel (73.3% digital)  Three-quarters of current conversion via DTT  More than 50% of TV equipment sales were digital for the first time

10. Click to edit Master title style 10 Half of all TVs are still analogue Source: Ofcom / Digital UK Switchover Tracker, Q2 2006 Digital TV on all TV sets, June 2006

11. Click to edit Master title style 11 Consumer Costs Digital box:  DTT (Freeview) from £25-£100 one-off payment or  Satellite (Sky) / Cable (Ntl:Telewest) subscription  Freesat from Sky £150 one-off payment And potentially:  Digital TV £99-£1,000+  Digital TV recorder £100+  Rooftop aerial (if required) £80-£150  Set-top aerial (if required) from £10 Ofcom estimate average £130 per household

12. Click to edit Master title style 12 Information leaflet Website Television Retail Press ads  Commercial TV in May/October  BBC TV in October  Press advertising – national & regional  BBC TV and radio  Website with postcode checker  Call Centre – 0845 6 50 50 50  Information leaflets to 3m homes in May, further 3m homes in October  Retail information and promotion Switchover Communications

13. Click to edit Master title style 13 Switchover Logo (1) General Promotions Non-certification mark For use in switchover promotions (e.g. by Digital UK, broadcasters, platforms, or retailers) (2) Product Certification Scheme Certification mark For use by digital equipment manufacturers and service package providers (the digital TV platforms) to show which products will work through switchover (3) Retail Advisor Scheme: “Ask Digital” Certification mark For use by trained retail staff who sit test and receive badge Launched October 2006 (4) Registered Digital Installer Scheme Certification mark For use by qualified aerial installers belonging to the Registered Digital Installers (RDI) scheme (managed by DTI) Launched 16 March 2006

14. Click to edit Master title style 14 Manufacturers Retailers Support from across industry Broadcasters / Platforms

15. Click to edit Master title style 15 Assistance for everyone Digital UK and Government working with consumer groups: The Consumer Expert Group Information & Advice  Call centre: 0845 6 50 50 50  Web site: www.digitaluk.co.uk  Focus on ‘hard-to-reach’ groups - Tailored communications (e.g. large print, other languages) - Alternative distribution (e.g. ethnic minority press) Public Protection  All advice platform neutral  ‘Registered Digital Installer’ scheme for qualified aerial installers  ‘Ask Digital’ staff training programme to provide reliable advice at retail  Retail mystery shopping programme  Promoting usable and accessible equipment (working with consumer groups and manufacturers)  Advising on energy efficiency Regional Co-ordination  Regional Managers working with: - Local Authorities - Housing Associations - Local services - Charities / Volunteers  Regional Events: - Roadshows (Carlisle, Exeter Plymouth) - Schools - WI, parish council meetings etc.

16. Click to edit Master title style 16 The Digital Switchover Help Scheme Who?  7 million eligible individuals: - Over 75s (free TV licence) - Severely disabled (on Disability Living Allowance or Attendance Allowance) - Registered blind / partially sighted What?  Programme providing: - Digital TV receiver for 1 TV - Installation (including aerial if needed) - User support (how to use your digital TV)  Platform neutral (choice of satellite, cable or DTT) How Much?  Subsidised to all (will pay modest fee)  Free to those on income support, job seeker’s allowance or pension credit A Government scheme to provide practical assistance to those who most need help, and ensure no one is left behind in the digital switchover

17. Click to edit Master title style 17 NationalRegional Communications Timetable - 3 years 1.Why wait to enjoy digital on all of your sets 2.Why buy anything but tv equipment with digital logo? 3.Mythbusting (Including Landlords) 4.Family word-of-mouth (Why wait to help your Nan?) 5.Advertorial/Infomercial Conversion Driving immediate action through urgency and removal of barriers Consideration Driving active engagement through positive encouragement 1.The digital switchover countdown reminder - with postcode checker message 2.Mythbusting (Including Tenants) -1 year 1.The digital switchover countdown reminder 2.Mythbusting 3.If you don’t switch, you’ll lose your tv (test kick) 4.It’s going to take 4 weeks to switch 5.If you don’t have a signal, it’s because you didn’t switch - 2 years Support for the Hard-to-reach 1.The digital switchover countdown reminder - with postcode checker message 2.Mythbusting (Including VCRs) 3.If you don’t switch, you’ll lose your tv (test kick)

18. Click to edit Master title style 18 Regional Programme Phasing

19. Click to edit Master title style 19 Whitehaven will be lead region Border region switches first:  Whitehaven October 2007 25k homes  Selkirk Q4 2008 60k homes  Caldbeck Q2 2009 215k homes Whitehaven Whitehaven switching one year prior to start of regional switchover roll-out – programme of monitoring being established to gather lessons

20. Click to edit Master title style 20 The Switchover Tracker: Measures of Progress Awareness Understanding Attitudes Intention Conversion Satisfaction Of switchover Of digital tick logo Of what to do Of regional date Of policy With process To convert one set To not convert any set Primary set converted Full household converted Of digital TV vs. analogue 80% 58% 61% 11% 69% 82% 91% 2% 79% 45% 78% 95% 76% 77% 62% 69% 84% 90% 0% 73% 32% 78% NationalWhitehaven

21. Click to edit Master title style 21 Consumer Learnings Satisfaction- People like digital TV (78% think digital is better) -Installation easier than you think Awareness- Growing steadily and well placed in lead regions -Will next step be more difficult? Understanding-Six out of ten people understand what to do (61%) -Older and Non-English have lower understanding -Date understanding low (11%) Attitudes-People are going along with switchover - Only a minority see benefits Intent to Convert-People likely to convert (only 2% say they won’t) - Resister group has diminished over time -Most non-adopters will leave it to switchover Conversion-Primary set conversion may be slowing - Increase in secondary set conversion -VCR replacement slow

22. Click to edit Master title style 22 2007/08 Programme Priorities Driving awareness / understanding and conversion Order and build antennas on time 1 2 -Launch comms in STV + West in Q4 ‘07 -Awareness = 89% by March ‘08 -Conversion = 81% by March ’08 -Engineering to complete in Whitehaven -To begin in Border, Westcountry, Wales, Granada, STV and Anglia Successfully switch Whitehaven and capture learnings -Local communications launched Sept ‘06 -Monitoring throughout -Switchover in October 2007 Establishment and communication of Digital Switchover Help Scheme -Publication of Help Scheme detail -Procurement and creation of ‘HelpCo’ -Launch of Whitehaven Help Scheme Accelerate conversion of social housing and private rental property -Programme of direct engagement -‘Good Practice Guide’ and practical advice to assist conversion 3 4 5

23. Click to edit Master title style 23 Thank You David.Mortimer@digitaluk.co.uk Digital Television: Tomorrow is Today 12 th February 2007