Post Implementation Review

Going Digital

Prepared By:Ministry for Culture and Heritage

Date: 31 March 2014

Table of Contents

1.Introduction

1.1.Programme overview

1.2.Purpose of the post implementation review

1.3.Review scope

1.4.Review methodology

2.Overall findings

3.Programme summary

3.1.Purpose

3.2.Objectives

3.3.Governance

3.4.Management

3.5.Stakeholders

3.6.Budget

4.Programme implementation

4.1.Pre-digital switchover environment

4.2.Overseas experience

4.3.Going Digital’s strategy

4.4.Regional roll-out

4.5.Key milestones

4.6.Programme risks

4.7.Programme methodology

4.8.Post digital switchover environment

5.Programme benefits

5.1.Building a stronger economy

5.2.Reduced transmission costs

5.3.Enhanced television viewing

6.Programme workstreams

6.1.Key programme workstreams

6.2.Related workstreams

7.Other project factors

7.1.Christchurch earthquakes

7.2.Accessible television receiving equipment

8.Key project outcomes

8.1.Digital switchover achieved

8.2.Digital dividend realised

9.Project strengths

10.Project learnings

11.Next steps

12.Recommendations

13.Appendices

13.1.Post implementation review participants

Page 1

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.

1.2.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.

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 Digitalalso 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’sprogramme 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.

3.2.Objectives

Objective / Was objective achieved? / Completed
New Zealanders are aware of the need to have gone digital by the regional switchover deadline and are aware of how to stay digital / Yes. By December 2013, quarterly Digital Tracker surveys undertaken by Colmar Brunton showed 99 per cent of New Zealand households were aware of the need to go digital – up from a pre-programmelaunch base level of 35 per cent in 2010. /
New Zealanders have the information they need to go digital successfully and have access to easy to understand information (0800 number, supply chain, providers, online resources) / Yes. Going Digital operated a nationwide community outreach programme. This was supported by comprehensive and easy to understand 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. /
Targeted Assistance Package is successfully delivered within budget and the required timeframes / Yes. The Targeted Assistance Package provided 31,979 eligible households with the necessary equipment to 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 the required timeframes / Yes. By December 2013, post switchover research showed the proportion of New Zealand households watching digital television was 98 per cent – up from a pre-programmelaunch base level of 61 per cent in 2010. /

3.3.Governance

Going Digital was a business unit within MCH and there was no formal governance group. However, it was accountable to the Minister of Broadcasting. Whilst not a typical ICT project, given its significance and scale, Going Digital was monitored from early 2012 by the Major Projects Monitoring Group (initially located at the State Services Commission, then at the Treasury). In addition, a Senior Officials Group was established to ensure effective co-ordination between relevant departments.

Going Digital worked closely with the Broadcasting Sector Group (BSG) over policy and implementation, and regularly attended its meetings to exchange views about the programme and to receive advice. The BSG was established in 2010 to represent the interests of the national free to air networks, regional broadcasters, transmission providers and pay television companies. BSG members included TVNZ, Mediaworks, SKY, Māori Television, Kordia, JDA, NZ Racing Board, and a representative of regional broadcasters.

3.4.Management

The programme was administered within MCH, in order to minimise overhead costs. The Chief Executive of MCH remained ultimately responsible for the delivery of the programme. However, the programme office had an independent public profile, as well as a direct relationship with Ministers that enabled advice to be provided on the implementation of the switchover and the management of programme risks.

National Manager

The National Manager’s role was to oversee strategy and programme management, act as the main spokesperson for the Going Digital programme, manage risk, and liaise with Ministers, the BSG and other stakeholders such as community groups and local government.

Other staff

A small number of Wellington-based staff was responsible for delivering the Going Digital programme, with support from a team of regionally based community advisers.

The Wellington team, which evolved over time, comprised:

  • a Marketing Manager
  • a Community Outreach Manager
  • a Procurement and Contracts Manager
  • a Communications Adviser
  • a Programme Co-ordinator and
  • an Administrator.

Community advisers were the local contacts for community groups and were charged with getting the message outusing grass-roots networks and direct engagement with the public. They were also responsible for delivering a minimum number of substantive contacts with stakeholders.

Outsourced work

Significant aspects of Going Digital’s work were outsourced to:

  • MBIE, to answer and respond to Going Digital’s two 0800 freephone help lines (one line for general information and the other line for households eligible for the Targeted Assistance Package)
  • Hills SignalMaster, to install the necessary equipment for those eligible for the Targeted Assistance Package and to offer on-site instructions and after-service assistance
  • Liverton, to develop a customer database to manage the Targeted Assistance Package
  • Designworks, to develop Going Digital branding, logo, mascot and website
  • OMD, to provide media strategy and buying
  • Draft FCB, to develop the television campaign
  • Ideas Shop, to provide public relations
  • Moxie Communications, to provide design and print services, and
  • Colmar Brunton, to undertake Digital Tracker research (a quarterly telephone survey tracking awareness, conversion and intention to convert to digital television).

Going Digital closely monitored all outsourced work, and partner organisations were considered to be part of the programme team. Going Digital held weekly work-in-progress meetings and contract meetings as required and ensured accountability and delivery by suppliers.

Related work

Going Digital worked closely with:

  • MBIE,to move a number of existing digital television channels into a lower portion of the spectrum (a process known as restacking), and
  • the Ministry for the Environment (MfE), to help promoteTV TakeBack (a subsidised programme designed to encourage the safe disposal of analogue televisions).

3.5.Stakeholders

A Consumer Reference Group (CRG) was established to provide advice on marketing, communications,and community outreach. The CRG comprised senior membership from organisations such as Consumer NZ, Deaf Aotearoa, National Foundation for the Deaf, Disabled Persons’ Assembly, Grey Power, the Royal New Zealand Foundation for the Blind, the Association of Blind Citizens, the Federation of Family Budget Advisory Services, SeniorNet and learning disabilities group PeopleFirst. The Māori Women’s Welfare League was also invited to participate.

There was regular communication with the head offices of major retail chains (such as Noel Leeming, Bond and Bond, DTRand Harvey Norman), with local stores, digital equipment installers and technicians, and with operations/supply managers for communal dwellings such as apartments, hospitals, rest homes, boarding schools, university hostels and prisons.

3.6.Budget

Going Digital had a total budget of $47.403million over four years to fund a programme of activities including:

  • a targeted consumer and supply chain communications campaign across all media channels
  • a Targeted Assistance Package to provide receiving equipment and practical support for particular disadvantaged and vulnerable households
  • a community outreach programme to provide practical support to those households requiring assistance but not eligible for the Targeted Assistance Package
  • the extension of digital terrestrial television (DTT) services and the restacking of television licences
  • assistance for regional broadcasters to go digital (via a fund administered by NZ On Air), and
  • quarterly Digital Tracker research.

The actual total cost of delivering the overall Going Digital programme was $37.591 million. This was $9.812 million (21 per cent) under budget.

Item / Budget / Total cost / Variance
Programme costs / $28.654 m / $27.186 m / $1.468 m
Targeted Assistance Package / $18.749 m / $10.405 m / $8.344 m
Total / $47.403 m / $37.591 m / $9.812 m

Going Digital’s budget was relatively modest compared to overseas programmes. In Australia the total budget (including its help scheme) was AUD346.7 million, and in the UK the budget was
£831.6 million. On a per household basis, New Zealand’s budget was half that of the UK.[2]

Country / Budget
(in NZD) / Number of households / Cost per household
(in NZD)
New Zealand / $47.403 m / 1.6 m / $29
Australia / $369.500 m / 8.7 m / $42
United Kingdom / $1,607.000 m / 26.7 m / $60

4.Programme implementation

4.1.Pre-digital switchover environment

Free to air digital television has been available in New Zealand (alongside traditional analogue transmission) since the launch of Freeview in 2007. Digital television was also available through SKY since 1998 and through TelstraClear (later Vodafone)[3] in Wellington and Christchurch.[4]

At the timethe Going Digital programme was established, 61 per cent of New Zealand households were already watching digital television either through Freeview, SKY or TelstraClear.[5] This relatively high take-up was driven by the decreasing price of large-screen digital televisions as well as SKY’s success in penetrating the market. These viewers were already set up for the switchover and did not need to do anything further (unless they had secondary sets to convert).

The remaining 39 per cent of analogue television viewers needed new equipment to go digital but not a new television. The challenge for Going Digital was that these viewers included vulnerable households and hard-to-reach groups, and there was a risk they would lose access to television – and their sense of social connectedness – following switchover.

It was estimated that as many as 41 per cent of households also had a secondary television set that required conversion to digital. The focus of the programme was on ensuring each household had at least one television that went digital. While Going Digital provided advice and support, it did not focus on secondary televisions either in a primary household or another dwelling.

4.2.Overseas experience

Most developed countries have gone or are going digital. The Netherlands and Luxembourg were the first to do so in 2006, followed by Sweden in 2007. The US went digital in 2009. All of Europe is expected to go digital by the end of 2015.

Australia began its digital switchover earlier than New Zealand but finished slightly later. Its programme was undertaken over three years with completion on 10 December 2013, compared to a 16-month roll-out in New Zealand and completion on 1 December 2013. The UK took five years to roll out its switchover, completing this in 2012.

New Zealand’s programme was informed by overseas experiences, particularly those of the UK and Australia. Key Going Digital personnel visited Australia in 2010 and 2011 and met senior officials from the Australian Digital Switchover Taskforce. From New Zealand, teleconferences and meetings were also held with Digital UK staff.

In both Australia and New Zealand, television was recognised as a critical medium for social interaction and as a way of bridging distances between communities. In Australia, pay television had penetrated fewer homes and Australia started its switchover programme from a lower take-up base of 49 per cent digital television conversion (compared to New Zealand’s 61 per cent).

The key advice from the UK and Australia was to adhere to strict switchover deadlines and to be clear about the consequences of viewers not going digital in time. UK research indicated around
15 per cent of viewers just would not convert unless they had a firm date.