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Post Implementation Review – Going Digital 31 March 2014

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Post Implementation Review – Going Digital 31 March 2014 Post Implementation Review Going Digital Prepared By: Ministry for Culture and Heritage Date: 31 March 2014 Page 1 Post Implementation Review – Going Digital 31 March 2014 Table of Contents 1. INTRODUCTION 4 1.1. Programme overview 4 1.2. Purpose of the post implementation review 5 1.3. Review scope 5 1.4. Review methodology 5 2. OVERALL FINDINGS 6 3. PROGRAMME SUMMARY 6 3.1. Purpose 6 3.2. Objectives 7 3.3. Governance 8 3.4. Management 8 3.5. Stakeholders 9 3.6. Budget 10 4. PROGRAMME IMPLEMENTATION 11 4.1. Pre-digital switchover environment 11 4.2. Overseas experience 11 4.3. Going Digital’s strategy 12 4.4. Regional roll-out 13 4.5. Key milestones 15 4.6. Programme risks 16 4.7. Programme methodology 17 4.8. Post digital switchover environment 18 5. PROGRAMME BENEFITS 18 Page 2 Post Implementation Review – Going Digital 31 March 2014 5.1. Building a stronger economy 18 5.2. Reduced transmission costs 19 5.3. Enhanced television viewing 19 6. PROGRAMME WORKSTREAMS 19 6.1. Key programme workstreams 19 6.2. Related workstreams 27 7. OTHER PROJECT FACTORS 29 7.1. Christchurch earthquakes 29 7.2. Accessible television receiving equipment 30 8. KEY PROJECT OUTCOMES 30 8.1. Digital switchover achieved 30 8.2. Digital dividend realised 30 9. PROJECT STRENGTHS 31 10. PROJECT LEARNINGS 32 11. NEXT STEPS 33 12. RECOMMENDATIONS 34 13. APPENDICES 35 13.1. Post implementation review participants 35 Page 3 Post Implementation Review – Going Digital 31 March 2014 1. Introduction 1.1. Programme overview Going Digital was a significant four-year programme that was responsible for driving the country's transition from analogue to digital television by the end of 2013. It touched almost every household in a way that no other programme has since the introduction of decimal currency in 1967. Viewers needed to buy equipment to make every television go digital, if they wanted to keep using it. New Zealand went digital in four stages beginning on 30 September 2012 with Hawke’s Bay and the West Coast of the South Island and ending on 1 December 2013 with the upper North Island (north of Taupo). All of New Zealand is now a digital-only television zone.1 Going Digital was established as a stand-alone programme in May 2010. It was administered within the Ministry for Culture and Heritage (MCH) but with an independent brand and profile and a clearly defined remit to complete the transition to digital television in a simple and straightforward way. Going Digital’s campaign was publicly launched in November 2010 to give viewers plenty of time to prepare for the change. Going Digital delivered a nationwide community outreach programme supported by comprehensive marketing and targeted assistance for disadvantaged households. This made sure New Zealanders were aware of the country’s move to digital television, and encouraged households to go digital before the digital switchover occurred. Going Digital was a major contributor to the Government’s objective of building a stronger economy. Switching off analogue transmission signals freed up radio spectrum in the 700 MHz band and enables the deployment of fourth generation (4G) mobile communications services. 4G mobile services in the 700MHz band provide wider coverage and faster speeds at lower prices than if the services are deployed in other bands. As well as delivering a direct return to the Crown from the sale to telecommunications companies of radio spectrum used previously by analogue services, Going Digital is expected to deliver significant benefits to the economy at large from the downstream economic impacts of rolling out 4G mobile services. 1 Minor exceptions exist in Queenstown where a local tourist information channel is still broadcasting in analogue and in the Far North where Te Hiku has an analogue licence until December 2014 (on VHF, not UHF). Page 4 Post Implementation Review – Going Digital 31 March 2014 1.2. Purpose of the post implementation review The purpose of this post implementation review is to evaluate the Going Digital programme. This includes: reviewing whether the programme met its objectives reviewing whether the programme achieved the benefits that were expected comparing the programme’s financial performance against the budget identifying programme strengths so they can be incorporated into future projects, and identifying programme learnings as well as weaknesses or possible areas for improvement. 1.3. Review scope In scope components The scope of this review includes the following: programme purpose and objectives governance programme structure and management implementation technical solutions key milestones benefits to date (and future) programme strengths and critical success factors programme learnings, and impact of the Christchurch earthquakes. Out-of-scope components The scope of this review refers to but excludes detail of the following: TV TakeBack funding to assist regional broadcasters, and spectrum allocation. 1.4. Review methodology The MCH Media Policy Team completed this review. The review included examining key documents such as Cabinet papers, regular updates and briefings to Ministers, strategic plans, communications and marketing plans, operational guidelines, issues and risks registers, findings from a pilot regional roll-out of Going Digital, and analysis of roll-outs in subsequent regions. Input was sought from key MCH and Going Digital personnel and from key programme stakeholders such as the Treasury and the Ministry of Business, Innovation and Employment (MBIE), broadcasting sector and consumer group representatives, and creative agencies. See Appendix 1 for a full list of those consulted. Page 5 Post Implementation Review – Going Digital 31 March 2014 2. Overall findings This document confirms the key objectives of Going Digital were achieved. These objectives were: to ensure New Zealanders were aware of the need to go digital (with a target of 99 per cent awareness) to inform New Zealanders how to go digital to ensure particular vulnerable and disadvantaged households were not left behind and also went digital, and to ensure New Zealand converted to digital television by the end of 2013 (with a target of 98 per cent of analogue households going digital in each switchover region). Going Digital achieved these objectives on time and significantly under budget. Going Digital had the benefit of being able to learn from similar switchover programmes overseas. Prior to developing its programme, officials sought out international lessons learned (particularly in the UK and Australia). Going Digital also learned new lessons along the way and put these into practice as the campaign progressed. Going Digital also had the benefit of a ‘tail wind’ in the form of decreasing prices for large-screen digital televisions. This helped incentivise and increase the number of households that went digital on their own and, in turn, this reduced the number (and cost) of households requiring Going Digital’s Targeted Assistance Package. Nevertheless, the Treasury has indicated that Going Digital’s programme management was a notable success. It successfully rolled out a high-profile digital switchover programme with easy to understand messaging and with comprehensive targeted assistance. The Treasury also noted Going Digital was extremely successful at managing a technology change affecting a large proportion of the population, with minimal disruption or complaint. As a consequence of Going Digital, the clearance of the 700MHz band enabled the sale of analogue spectrum space and the proceeds of this exceeded expectations. 3. Programme summary 3.1. Purpose The primary purpose of Going Digital was to enable the clearance of the 700MHz band. This was to realise an estimated $100 million in revenue for the Crown through auctioning off this spectrum space for use by other telecommunication purposes such as next generation mobile phone services. In addition, analogue technology is costly, inefficient and becoming increasingly obsolete around the world. Page 6 Post Implementation Review – Going Digital 31 March 2014 3.2. Objectives Objective Was objective achieved? Completed New Zealanders are aware of the need Yes. By December 2013, quarterly to have gone digital by the regional Digital Tracker surveys undertaken by switchover deadline and are aware of Colmar Brunton showed 99 per cent how to stay digital of New Zealand households were aware of the need to go digital – up from a pre-programme launch base level of 35 per cent in 2010. New Zealanders have the information Yes. Going Digital operated a they need to go digital successfully and nationwide community outreach have access to easy to understand programme. This was supported by information (0800 number, supply comprehensive and easy to understand chain, providers, online resources) marketing and communications. Going Digital established two freephone numbers, a contact centre and a website. It provided information sheets in 10 different languages and a video clip with sign language and captions. Going Digital worked with consumer groups, the supply chain and the broadcasting industry to ensure viewers knew how to go digital. Yes. The Targeted Assistance Package Targeted Assistance Package is provided 31,979 eligible households successfully delivered within budget and with the necessary equipment to the required timeframes convert one television to go digital. Over 90 per cent of installations were completed within 14 days (with the average installation time just under 10 days). There were 138 written compliments and 19 complaints. A total of $18.749 million was budgeted to assist eligible households. To date, the actual cost of this assistance is $10.405 million - $8.344 million under budget. New Zealanders have gone digital within Yes. By December 2013, post the required timeframes switchover research showed the proportion of New Zealand households watching digital television was 98 per cent – up from a pre-programme launch base level of 61 per cent in 2010. Page 7 Post Implementation Review – Going Digital 31 March 2014 3.3.
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