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