Senator Crossin asked the Minister for Communications, Information Technology and the Arts, upon notice, on 25 November 1998:

(1) Is the Minister aware that the decision to transfer to digital transmission has resulted in rural and regional communities being required to purchase a new system of receiving radio and television signals.

(2) Is the Minister aware that this change in remote satellite services will cost these communities up to $6,500 per decoder and that some of these communities currently use three different decoders or more and that the subsidy available to these communities is only in the range of $2,500 to $3,500 for each decoder.

(3) Why are these rural and regional communities forced to bear the added burden of the cost of replacing these decoders when Australians in metropolitan areas receive the same television and radio signals at no cost to the individual communities, particularly given the reliance on these services in such remote communities.

Senator Alston (Communications, Information Technology and the Arts) —The answer to the honourable senator's question is as follows:

(1) Yes. Optus has previously delivered television and associated radio services by analogue satellite transmission to remote areas of Australia, beyond the reach of terrestrial transmission networks. Reflecting worldwide trends, Optus has decided for commercial reasons to digitise its satellite operations, including the delivery of remote area broadcasting services (RABS). Digital conversion of RABS services is occurring progressively this year and is currently scheduled to be completed by mid 1999.

Optus' decision necessitates the replacement of existing analogue decoders with digital units to continue to receive RABS. I understand that existing satellite dishes should in most cases be able to receive the digital signal without modification. This also applies to RABS digital transmissions by Telstra, using the PanAmSat PAS 2 satellite, in Western Australia. In the deregulated satellite and communications market, Telstra has competed with Optus for the digital transmission of RABS.

(2)—(3) The Government is making a significant contribution to ease the transition for remote area viewers to digital RABS transmission, even though transmission arrangements are primarily commercial matters for the industry. Technological changes must be expected over time to satellite delivery of broadcasting services, just as changes occur to terrestrial broadcasting—such as the conversion from black and white to colour television and the planned move to digital terrestrial television broadcasting.

Reflecting the Government's strong commitment to regional Australia, in November 1997 I announced an $11.2 million package under the Government's $250 million Regional Telecommunications Infrastructure Fund (RTIF) to subsidise the cost of digital decoders in remote areas. The independent RTIF Board set aside $8 million for this assistance from within the Fund, to which the Federal Government added a further $3.2 million.

The RTIF Board has determined that a subsidy of $750 is payable for the replacement of each existing analogue decoder in households with direct to home (DTH) reception, $2,500 for replacement of each analogue decoder at community self-help retransmission sites, and $3,500 for replacement of decoders at remote Aboriginal community retransmission sites. These subsidies represent a significant contribution towards meeting the cost of digital decoders which, I understand, retail for about $1,000, in the case of DTH units, and $3,500—$6,500 for most retransmission units.

For the subsidised cost of digital decoders, remote area viewers will also obtain access, for the first time, to national satellite-delivered ABC Triple J and Parliamentary and News Network radio services, and satellite-delivered SBS television in remote and regional Western Australia. Digital decoders also afford potential access to internet, data transfer and pay TV as these services are developed in regional areas. The Government is making a major separate contribution through the RTIF to facilitate the availability of online services in regional Australia through a range of projects.

The Government remains committed to further improving the quality and range of broadcasting services available to Australians, within the limits imposed by competing national budget priorities, and to ensuring equitable access to such services in regional Australia.

During the recent election campaign, the Government announced that it would establish a $120 million Television Fund to extend SBS television to transmission areas of more than 10,000 people, and to fix major "black spots" where the reception of television services is currently unavailable or where the quality of transmission is poor. The Television Fund will be established from the proceeds of the planned sale of a further 16 per cent of Telstra.

Legislation for the introduction of digital terrestrial television broadcasting services, which are scheduled to commence in regional areas between 1 January 2001 and 1 January 2004, provides for a review into whether any amendments to laws are needed to ensure that underserved regional communities are provided with up to the same number of commercial television services as are provided in metropolitan areas. The review is required to be conducted by 1 January 2000.