Industry News

Where were we 2.5 years ago?
Early 2009, according to the Tracker, 47% of Australian households overall had converted compared with 43% of households that were in block of units. The uptake of digital TV and the conversion rate of MDU households has improved considerably over the past two and a half years.

What’s the situation in 2011?
In 2011 it is estimated that there are more than 2.4 million Australian households in flats, units, apartments and townhouses. This represents almost 30% of Australia’s 8.1 million households. According to the weighted estimates from the Digital Tracker (Quarter 2, 2011) 79% of MDU households had converted to digital TV compared with 81% of Australian households as a whole.

This indicates that as at Q2 2011 there could be up to 504,000 MDU households (out of a total stock of 2.4 million) MDU households that may not yet have converted. This equates to around 27,720 residential buildings of which 75% (20,790) are in metropolitan centres.

(21% of the 71,123 blocks of units ˃10 and est. 61,000 in blocks of ˂10)

Progress with switchover
As an overall goal we would aim for the entire stock of MDUs in Australia to be fully digital ready by 31 December 2013.

We now have 25 months timeline until December 2013 when digital switchover concludes in the metropolitan areas.

Timing is important
Those who collectively own and/or manage MDUs should optimally be aware of the technical and financial scope of any necessary upgrades 6-12 months prior to the switchover date for their area. This allows time for any additional funds to be raised and governance processes to be followed.

Who are the stakeholders?
MDU residents

• Strata lot owners
• Strata committees
• Strata managers
• Landlords and rental property managers
• Accommodation providers
• Commercial and public facilities managers

Who are the stakeholders?
Antenna installers
MATV systems vendors and service providers
Data network and communication service providers
Building maintenance service providers
Peak bodies (strata, real estate, building services, DRT sector, tourism, local/State government, community providers/charities.

How will we measure success?
The Digital Tracker serves as the primary instrument by which to measure progress with conversion in MDUs.

The survey results currently provide information on whether a respondent is a renter or landlord, what type of antenna they use, including whether they rely on a shared antenna system, along with some basic information on whether they live in a “flat within a house” or a “flat within a block of units.”

Issues for strata and property managers

• Master Antenna TV systems (MATV)
• Headendsand channelisedsystems
• Owners corporations are responsible for the antenna systems in MDUs
• Potential problems with an antenna system: cabling and signal reception, e.g. resulting from the ‘digital cliff’ effect
• Limitations on tenants’ ability to upgrade antenna

Advice to all Strata and Property Managers

• Without appropriate attention some occupiers and tenants in MDUs could be left without TV after switchover
• Landlords and owner occupiers of MDUs need to collaborate to arrive at effective technical solutions
• There are tax deductions for upgrades to rental property
• Digital readiness is a market expectation
• The Taskforce is working closely with property sector groups to share information and develop strategies for switchover

Issues for strata and property managers
As the surveys become more metropolitan-focused we will derive a proportionately larger and therefore statistically more reliable indication of the status of MDU households.

Further refinements to the survey instrument are being made to provide more detailed data on specific MDU building categories, such as 2-4 storey walk-ups, mid-rise and high-rise buildings, as well as the age of the building.

What are the key success factors and risks?
The key success factors are effective, timely engagement with relevant stakeholders and reliable, compelling advice on how to achieve MDU conversion.

The critical areas of risk exposure are in the possibility of not reaching key stakeholders in time, not providing current, comprehensive advice and stakeholders not taking action in time. The first two areas are internal and fully addressable within the strategy and the third is a function of the adequacy of engagement and the resources to implement.