CanWest and TVNZ reach digital satelitte agreement

State-owned enterprise BCL will lease a full transponder on the Optus D1 satellite and sublease to both CanWest MediaWorks and TVNZ. TVNZ currently leases capacity from the Optus B1 satellite directly from Optus, but will move to subleasing capacity from Optus D1 from BCL.

The Optus D1 satellite is due to launch later this year. TV Works chief operating officer Rick Friesen said the company was looking forward to providing New Zealand with an alternative digital service, "and all the challenges that will bring". Announcements about potential launch dates for free to air digital television services are not expected until later this year. The digital system would carry the existing free-to-air channels from TVNZ and CanWest - TV1, TV2, TV3 and C4 - plus others such as Maori TV and any new channels developed.

Under the free-to-air model, broadcasters would not generate any more revenue out of digital television than under the traditional analogue system.

The Government has commissioned a report on digital TV from New Zealand On Air chief executive Jo Tyndall.

The report is due to be presented in May to Broadcasting Minister Steve Maharey and Communications Minister David Cunliffe.

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