Television New Zealand has finally worked through the issues to move towards digital television.
The state broadcaster announced that it will partner with Telstra Saturn to set up digital television, and it could be beaming into homes by next April.
When operational, the service will give access to free-to-air channels, and the internet, as well as pay TV channels, which will compete with the existing Sky operation.
The new service will give viewers choice of 16 channels to be transmitted from satellite operation by the Australian tele-communications company Cable & wireless Optus.
TVNZ has estimated its initial set up cost at $10 million, and the viewer’s cost will be around $300 for the set-top box, which sits on the television set.
TVNZ and Telstra Saturn also expect to use their combined strength to secure programming deals. Meanwhile Telstra Saturn, which has been operating from Wellington, expects to start out of Christchurch next year and has started building pay-TV and telephone network in Auckland.

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