TVNZ hooks up with Telstra Saturn in digital turnaround

By Michele Simpson

Friday 10th November 2000

DIGITAL DIVIDE: TVNZ moves to retain its independence from Murdoch's Sky

State broadcaster Television New Zealand has signed up for a $6 million slot on a satellite owned by Australian telco Optus and is poised to announce a digital deal with Telstra Saturn before Christmas.

TVNZ this week signalled it was resurrecting its plans for digital television but would not reveal its digital partner.

Opposition broadcasting spokesman Murray McCully was set to publicly identify Telstra Saturn as the other party in a letter to constituents today.

The moves are the first proof TVNZ - and its minister, Marian Hobbs - is taking a new tack on digital television.

Cable & Wireless Optus New Zealand country manager Tony Hill confirmed TVNZ had first right of refusal to buy transponder 8 on its Optus B1 satellite - the same satellite Sky Network Television uses to broadcast its digital service.

TVNZ spokesman Liam Jeory said that first right of refusal had now been taken up and the decision was outlined to Parliament's commerce select committee hearing yesterday morning. The Optus B1 satellite would allow the broadcaster to deliver digital television to the whole country.

The government thwarted TVNZ's digital television plans in January and until now no clear direction had been announced for the new technology. Accusations were raised in Parliament this year that the TVNZ board was divided over getting into to bed with Sky and using its platform to broadcast in digital.

The select committee was told if TVNZ went ahead with digital it could broadcast early in 2001.

Sky chief executive Nate Smith is still hoping to forge a partnership with TVNZ but those at yesterday's meeting said the state broadcaster hinted it had already done a deal. Sources said the final shape of the deal could see Sky involved as well as Telstra Saturn. Telstra Saturn chief executive Jack Matthews was unavailable for comment.

Mr Smith said: "They know we are here with uplink capabilities [bringing digital TV into the home]. They haven't spoken to us about it yet but we assume that if they are interested they will."

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