±«Óătv

Trust assessment of 'Canvas' proposals

The ±«Óătv Executive has applied to the Trust for permission to form a joint venture that would promote a standards based open environment for internet-connected digital television devices. For consumers this would enable subscription-free access to on-demand television services and other internet-based content, through a new broadband connected digital device. The Trust commenced its assessment of the Executive's application on 26 February 2009 with a seven week consultation which ended on 17 April 2009.

On the basis of the information submitted by the Executive, the Trust applied a non-service assessment process which involves two periods of consultation and a detailed evaluation of both the public value and the market impact of the proposals.

The Trust is satisfied that the process adopted is an appropriate one based on the application submitted, consistent with the requirements of the Charter and Agreement. It is the responsibility of the Trust to ensure that the principles which underlie the treatment of a non-service are, where relevant, consistent with those which would be applied to a service. This involves independent analysis, which takes account of the potential public value and market implications, and applies the same principles – evidence-based assessment and transparency in decision-making – that apply to the consideration of public services.

During the first consultation the Trust met with over 60 stakeholders from a range of sectors, which included internet service providers, pay-TV operators, content aggregators, consumer groups, industry bodies and consumer electronic manufactures. It received over 800 submissions from stakeholders and licence fee payers.

The consultation found widespread support for the delivery of IPTV into the home via broadband. A large number of stakeholders also recognised that the ±«Óătv could potentially help both coordinate and accelerate this process.

However, many expressed concern over a lack of detail in some key areas of the Executive’s application. These included the choice of technical standards to be adopted by Canvas and the way in which the ±«Óătv would work with industry bodies; control of the Electronic Programme Guide; governance arrangements for the joint venture; and the use of editorial controls. Some stakeholders argued that, without such detail, it was difficult to assess fully the potential public value and market impact of proposals.

The Trust must ensure that its assessment takes full account of relevant issues raised by stakeholders, and has therefore identified several areas of the application where the Executive needs to develop further detail and explain its proposal to enable the Trust to reach a fully informed decision, including an assessment of the potential market impact of the proposal. The Trust will therefore ask the Executive to provide more detail on key aspects of the application before it continues with its assessment. This will allow the Trust to reach a decision that is delivered in good time and based on a thorough assessment of the proposals and their implications for the ±«Óătv, licence fee payers and the market as a whole.

Consequently, the Trust does not now intend to publish a decision on the 24 July. We intend to delay the second consultation until after the Executive has returned with further detail in support of its application. This additional information and a revised timetable to complete our assessment will be shared with stakeholders in due course.

Conclusions

On 22 December 2009, the Trust published its from its assessment. were published on 25 June 2010.