In a bid to become the first all-digital broadcasting company in the world Swedish Sveriges Television (SVT) aims to cease analogue terrestrial broadcasting in 2005. To make the plan work, it is suggested that one million households will get free digital decoders.
SVT's ambitious plan would mean that Sweden could beat both Finland and Great Britain, which intends to stop analogue terrestrial broadcasts in 2006. While the Swedish Digital Television Committee favours a final transition in 2007, SVT's plan is the most aggressive one, leading up to the parliamentary debate. Elektroniktidningen has learnt that as an incentive for quicker transition, the company suggests distribution of free digital decoders to about one million households, which currently rely on signals from the analogue terrestrial network. However, the cost of these decoders will be in the region of SEK1bn ($100m) and it is not yet clear who will be prepared to pay this bill.
Switching to digital broadcasts is viewed as very advantageous by many. The broadcasters SVT and TV4 would save between SEK400m and 500m ($40-50m) each annually if they were to broadcast only digitally. However, it is equally important that the telecom industry would get access to new frequencies for 3G mobile phone networks. Therefore, it is hardly surprising that SVT's plan is applauded by the telecom industry. Thomas Sidenbladh, frequency expert at Ericsson says:
"It is very positive if broadcasting goes all-digital. Then, 350MHz of the television band could be used for telecom services, like 3G networks, and it would make it cheaper to extend these networks to rural areas."