THE DENIS O'Brien-backed consortium bidding for the 12-year commercial digital terrestrial television (DTT) licences plans to invest more than €145 million rolling out its service and expects to break even by the fifth year.
The figure emerged yesterday in the executive summary of Boxer DTT Ltd's submission to the Broadcasting Commission of Ireland. The consortium has forecast that it will attract 215,000 customers and deliver revenues of more than €50 million by 2013.
"Boxer will invest in excess of €115 million in world-class broadcast network and multiplexing services capable of achieving a minimum 92 per cent population coverage by analogue switch-off in 2012," Boxer states.
"We also plan to spend over €30 million to provide a support service to assist consumers with all aspects of the new DTT service."
It is understood that Boxer does not intend to build its own DTT transmission network, but will piggyback on RTE's system.
The State broadcaster will charge DTT operators €3.375 million a year for each multiplex.
The Boxer consortium comprises Mr O'Brien's Communicorp media group and Swedish DTT operator Boxer TV-Access, with the "support" of telecoms provider BT Ireland. Boxer said it will offer an entry-level product at "below" €10 a month. Viewers will also be able to access its pay channels on a "pay as you go" basis.
DTT is aimed at replacing the analogue signal, which is due to be switched off between 2012 and 2015. A free-to-air multiplex terrestrial channel will be operated by RTÉ, while three commercial platforms will be licensed by the BCI.
Three bids have been received to operate the commercial multiplexes: EasyTV, which comprises RTE and Liberty Global, and OneVision, which comprises TV3, Setanta Sports, Eircom and DTT operator Arqiva, are the others.
The BCI yesterday posted the executive summaries of all three bids on its website.
Boxer's summary was by far the most detailed. No investment figure is supplied by either EasyTV or OneVision, although it has that this group plans to spend €40 million on its proposed DTT service.
EasyTV said its service would offer up to 35 channels across the three multiplexes. Its rollout would start in the third quarter of 2009 and initially cover 85 per cent of the population, rising to 93 per cent by the time of analogue switch off.
It said its set-top box would provide for high-definition broadcasts, digital video recorders and interactive services. It proposes "seamless integration" with RTÉ's public-service multiplex.
OneVision, meanwhile, said its "basic" offering would comprise 23 channels and cost €9.99 a month. It also plans to offer premium sports and movie content.
