WAIT 'TIL NEXT YEAR- CHILE'S DIGITAL TV DELAY

UNCLAS SANTIAGO 000130 STATE FOR EEB/CIP SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EINV PREL ECPS ITU OVIP TSPL TINT CI SUBJECT: WAIT 'TIL NEXT YEAR- CHILE'S DIGITAL TV DELAY ¶1. (SBU) SUMMARY: Despite lengthy studies and a draft law on the regulatory framework of digital TV, Chile does not/not appear close to selecting a digital TV standard in 2009. Government and industry contacts agree the Bachelet administration will put off the decision, leaving it for a future government. The North American ATSC standard can still win, but the industry will need to be patient as Chile takes its time entering the world of digital TV. END SUMMARY. ¶2. (SBU) In May 2008, the Ministry of Transportation and Telecommunications (MTT) announced it would conduct additional analysis of the ATSC, ISDB, DVB-T, and SBTVD (aka ISDB-TB) standards before selecting Chile's standard. Cristian Nunez, Chief of Regulation Policy and Studies in the Undersecretary of Telecommunications, told EPoloff the ministry completed its analysis, but the decision about the standard remains pending for "political reasons." Industry experts told EPoloff the government will not/not make a choice because it fears the issue could become another "Transantiago"- the poorly implemented, highly criticized public transportation system. The government would rather leave the decision for the next administration than risk being blamed for another public service disaster. ¶3. (SBU) MTT and industry contacts report the ATSC remains a competitive option in Chile. Concerns about mobility have been allayed, and the recent conversion delay in the U.S. is not associated with the technology at all. In the long run, Nunez believes the formats will converge, reducing the importance of choosing a standard. ¶4. (SBU) The government is taking action to advance the regulatory framework of digital TV. A draft law submitted to Congress in December 2008 proposes mechanisms to handle spectrum concessions and outlines the conversion process to digital TV, calling for complete conversion in 8 years. The draft law does not/not favor any particular standard, and the MTT said it was written to accommodate whatever standard the government eventually selects. ¶5. (SBU) COMMENT: Unanimous feedback from various contacts confirms that little progress should be expected on Chile's digital TV standard in 2009, an election year. Beyond 2009, it's much too early to know which standard the next government will select. END COMMENT SIMONS