Fortunately, the need to go digital, one, day, has been recognised for some time and much of the network plant in place is capable of handling the digital signals. The cost of a head-end and digital settops will vary according to complexity and volumes. Training staff is an additional burden. So, the technology works, the longer term opportunities seem limitless, but there is little customer demand and the service reasons for the transition are unclear. On top of this there is this substantial cost.
Competition is a big factor.
Satellite and terrestrial TV have gone digital and will be able to offer some of the services which cable can already offer, starting in 1998. There is greater pressure than ever before from programmers to achieve carriage on cable and cable is itself starting to originate services which need bandwidth, but there is no analogue capacity left. The key decision is the one to start the transition to digital. Analogue and digital service can co-exist in the same network, and even be received by neighbouring subscribers. And sitting behind the political curtain is the Government seeking to create a National Grid for Learning, the Digital College, University for Industry, New Libraries Network, and electronic services in pursuit of its aims of better government.