Memorandum submitted by BBC Cymru Wales

1. Overview

The BBC has welcomed the UK Government's Action Plan for Digital Inclusion and the Government's interim Digital Britain report. It particularly welcomes their shared aim to ensure that all citizens, particularly those disadvantaged, realise the benefits of digital technologies.

The proposals to introduce a Charter for Digital Inclusion and appoint a Digital Inclusion Champion, supported by an expert taskforce, represent a positive step forwards, bringing together the UK Government and other stakeholders in the coordinated pursuit of

common goals.

As the report outlines, the BBC is already committed to improving digital inclusion in the UK. Under its Royal Charter, the BBC must have regard for "the need to promote media literacy" and has a requirement under its sixth public purpose to help to "deliver to the public the benefit of emerging communications technologies and services and, in addition, taking a leading role in the switchover to digital television."

What the BBC is doing to deliver this purpose is explained in more detail in the Emerging Communications Purpose Remit, published by the BBC Trust and the related Purpose Plan (both supplied separately).

This remit includes a commitment for the BBC to "help everyone in the UK to get the best out of emerging media technologies now and in the future" and to "work with other UK bodies to end the 'digital divide' between those who enjoy the benefits of digital technologies and those outside that group."

2. Digital access in Wales

The BBC is already playing a crucial role in delivering the benefits of the digital opportunity to all audiences in Wales through its contribution to digital TV switchover, beginning in Wales later this summer.

We believe that this role - supporting the BBC's sixth purpose of building Digital Britain - is likely to become even more important over the coming years. There are two particular areas where the BBC, in partnership with UK and Welsh Government, Ofcom, ISPs and the other PSBs, can help make the most of the digital opportunity:

· Helping to close the broadband digital divide by bringing audiences online through the use of trusted brands, media literacy initiatives and attractive content

· Securing the future of digital radio (DAB) and helping to bring its benefits to the whole of Wales.

3. Increasing Broadband availability and take-up

Achieving a truly broadband Wales is increasingly important to the delivery of all of the BBC's purposes:

· As an institution charged by the UK Government with 'delivering to the public the benefit of emerging communications technologies and services', the BBC is keen to help all citizens benefit from the internet whether for entertainment, information, education or democratic participation

· As a major public service content provider, we want to ensure universal access to our services in the most convenient way consistent with a reasonable cost

· As a publicly funded technology innovator, we have a role in developing technologies that require cross-industry collaboration - such as multicast, allowing the delivery of linear channels over IP

· As a producer of innovative public service output, we believe that extending the limits and speeds of networks will allow creativity to flourish.

3.1. Broadband take-up in Wales

Although the number of households connected to broadband in Wales passed 50%[1] by late 2008, we still lag behind countries such as Canada (68%), the Netherlands (81%) and South Korea (76%). We should also be mindful that take-up across Wales varies significantly both by region and socio-economic background.

Though penetration of broadband in the UK is, on some measures, expected to grow to around 79% by 2012, this will still leave a significant proportion of the Welsh population unconnected. Audiences recognise this as a concern; in Ofcom's research, 72% of those with broadband access agreed that it was important that the internet was available to everyone.

Over the last five years, regulatory intervention in the broadband market has grown the number of urban homes in Wales who benefit from local loop unbundling (LLU). This has resulted in significant investment in the network, raised headline speeds, kept costs down for consumers and created significant social value. BT's 21CN will further increase headline speeds towards 'Next Generation' levels.

Meanwhile, rural and remote homes are served largely by ISPs who rely on BT Wholesale (BTW). Recent Ofcom research has shown that connections to these homes are on average 13% slower.

3.2 The Digital Britain report

Distance from the exchange has meant that remote homes are also hampered by 'last mile' infrastructure and left even further behind. The BBC welcomes the proposal in the Digital Britain report to move towards a converged solution to universal broadband access using fixed and wireless networks. We also welcome the policy of committing spectrum usage to deliver new services with universal coverage to audiences.

3.3. The BBC's role in driving take-up

The BBC helps drive demand for broadband, including amongst those who are otherwise reluctant to adopt the internet. The elderly and socio-demographic group C2DE are those with the highest numbers unconnected.

This is concerning given that they are amongst the groups most likely to benefit from the social benefits the internet provides - including participating in public debate, learning new skills and engaging in communities of interest. The BBC believes strongly that the wider availability of high-quality connections would play a powerful role in reducing social exclusion.

Audience research indicates that the main barrier to internet take-up is its apparent lack of relevance. The main reason for not having the internet at home, for half of the unconnected, is that they think they have no need of it. The BBC can and does play a very significant role here; indeed a number of surveys have confirmed bbc.co.uk as an important reason given by people for connecting to the internet in the first place.

Many of our initiatives have targeted specific groups successfully. Both BBC Wales' Coal House project and the pan-UK WW2 People's War, for example, encouraged older users to go online for the first time - creating an important legacy of thousands of stories and photos. In all, some 60% of the Welsh population engaged with Coal House, and 90,000 over 65s said that they had started or would start to use the internet following attendance at a WW2 People's War event.

In addition, there remain many opportunities to collaborate with others who provide internet-based services that harder-to-reach groups find attractive. Such opportunities could include, for example, assisting in improving findability for third-party content on financial guidance; access to local services; job centres; transactions with government; or access to public institutions' websites (such as those of galleries and museums).

The BBC can also help people to become more confident, media-literate internet users. Already, the resources available on our Webwise service provide practical support to around 130,000 users a week. The BBC will also continue to encourage user-generated content, giving people growing confidence to participate in new media opportunities.

4. Delivering the benefits of digital radio (Digital Audio Broadcasting)

DAB radio offers audiences a number of significant benefits over analogue radio, including a wider choice of stations, improved sound quality, ease of tuning, an Electronic Service Guide, and live text services.

Furthermore, the new generation of hybrid DAB/IP radios offers even more exciting ways for radio to engage audiences in the digital age, including enhanced interactivity and access to content on demand. The BBC believes strongly that digital radio adoption is therefore critical for radio to continue to play its central role in the social and cultural life of Wales, and the UK.

Audiences appear to agree too. Digital radio - in particular, DAB - offers the radio industry a proven means of improving the audience experience and increasing the breadth and quality of radio listening: 61% of DAB owners claim to listen to more radio since their purchase, and 73% listen to more stations.

4.1 DAB coverage in Wales

The economics of distribution in Wales means that coverage of DAB in Wales lags behind the UK. It's estimated that the two UK-wide DAB multiplexes (one BBC-owned and one commercial) cover about 75% of households in Wales (the UK figure is approximately 86%). These provide UK-wide radio services, including all the BBC's UK radio networks. By contrast, the rollout of local commercial multiplexes in Wales has been much slower, and actual household coverage in Wales is estimated at around 40-45%.

Under the 1996 Broadcasting Act, both BBC Radio Wales and Radio Cymru are reliant for carriage on the provision of spectrum on these local commercial multiplexes, licensed by Ofcom.

As a result, it is estimated that approximately 55-60% of people in Wales are currently unable to receive BBC Radio Wales and BBC Radio Cymru on DAB because there is no local commercial multiplex available to carry these services. The BBC is developing an action plan to address this poor provision.

4.2 Usage of DAB in Wales

The most recent BBC Wales-commissioned tracking survey showed that overall 28% of adults in Wales claim to have a DAB set in their home. Claimed ownership is highest among 45-64 year olds. Levels of ownership across the different regions of Wales naturally mirror the current coverage of DAB.

% radio listeners in Wales who claim

to have 'ever listened' via DAB[2]

Cardiff/Vale 27%

Gwent 19%

West South Wales 18%

NE Wales 12%

NW Wales 11%

Mid & West 7%

The Valleys 4%

4.3 The future coverage of DAB

The interim UK Government Digital Britain report identifies extended DAB coverage as a linchpin of the switchover process for radio. The BBC is already committed to building out its own DAB multiplex to 90% UK population coverage and expects this work to be completed during 2011.

Futhermore, the BBC has a pledged to work with partners to develop a plan to extend coverage of both BBC Radio Wales and BBC Radio Cymru, along with their sister stations in Scotland and Northern Ireland.

The BBC is also considering proposals to extend DAB coverage further towards FM equivalence, although the investment required to achieve this will represent a significant challenge in the context of increasing pressure upon BBC resources, within and beyond the current licence fee period.

Were funding for full network build-out on this scale not secured, there could be alternative means of providing digital radio services to the very small proportion of the population that lives in the most remote areas of the UK.

These digital alternatives could include high-speed wireless or wired broadband. In all scenarios, it will also be essential to ensure that DAB coverage of roads and highways provides a good level of support for in-car listening.

5. Promoting digital inclusion

BBC Cymru Wales is committed to ensuring that everyone in Wales gets the best out of emerging media technologies now and in the future. Our activity in this area in recent years has been considerable.

Examples include:

BBC Cymru Wales community strategy

Over the past four years BBC Wales's community strategy Here for You / Yma I Chi has visited fourteen locations the length and breadth of Wales - holding roadshows, workshops, talks and screenings, and working closely with local people who are represented on working groups as part of the experience. This helps BBC Wales forge stronger links with audiences across Wales and gives an opportunity for us to work with them on developing technologies.

bbc.co.uk/wales and bbc.co.uk/cymru

BBC Wales produces Wales' most popular indigenous websites, providing coverage of news, sport, travel, weather, arts, history, children's, education and a range of other subjects.

Mosgito - bbc.co.uk/cymru/mosgito

Mosgito is a Welsh language factual TV series and website for 10 to 15 year olds. It broadcasts live twice weekly on S4C. The primary objective is to offer younger people a voice and allow them to interact with the presenters and other guests regarding issues and matters that arise in each programme. Recent subjects covered include:

· Film production and uploading content to the website

· Animation production

· Mobile phones and their uses

· Safety on the web

· Cyber bullying

· A guide to using the web for parents who are technophobes

BBC iPlayer

This new online service enables people to catch up through the internet with TV and radio programmes from the last seven days on demand (users can navigate through the medium of either Welsh or English).

iPlayer is used by more than two million people a week in the UK (estimated from return-path data) and 57% of adults are now aware of iPlayer, bringing on-demand programming into the mainstream. iPlayer bring all BBC Wales' content under one roof - with a dedicated sub-site for Wales offering instant access to all BBC Wales tv and radio content in English and Welsh.

iPlayer's availability on mobiles provides greater opportunity for younger users and lower income groups to engage with the BBC's content as both audience segments have strong relationships with this platform. It is also available on the cable TV platform, allowing access for non-internet users.

Computer Tutor

This service helps people to get started online - beginning with the most basic things like how to use a mouse. Feedback indicates this has benefitted a range of licence payers, including people wanting to start shopping online and grandparents wanting to use online chat to keep in touch with their grandchildren.

Webwise Guides

This is a series of online guides, developed by the BBC, using familiar presenters to demystify new technology, providing practical support to around 77,000 UK users a week. Questions answered include what is a podcast, how can I share photos, what is social networking and

what can broadband do?

6. Building partnerships to accelerate progress

There is clear evidence of the BBC making a difference: for example 9% of internet users agree that "the existence of the BBC's website www.bbc.co.uk was one of the main reasons why I first accessed the Internet".

However, the BBC recognises that there is still more to be done to drive media literacy and promote digital inclusion in the UK and it needs to consolidate and improve coordination of its activities to ensure a coherent and comprehensive offering of value to licence payers. The BBC also proposes doing more going forwards to achieve these goals through partnership.

The BBC has been exploring a number of opportunities involving partnership with other organisations around the UK as part of its engagement in Ofcom's review of public service broadcasting.

This work resulted in the publication in December 2008 of the BBC's Public Service Partnerships proposals, describing how the BBC, supported by the privilege of licence fee funding, can work with partners to help sustain public service broadcasting in the UK[3]. The document outlines four areas in relation to the development of Broadband Britain in which the BBC and its partners can have a significant impact:

· Making the internet relevant for people who are not yet connected by providing attractive content, including video on demand, focused marketing and media information campaigns

· Helping people feel more confident online by building on the BBC's digital literacy campaigns

· Improving discoverability by driving recommendations and click-throughs to other websites from the BBC's website

· Using BBC content to support other public service institutions, such as museums, the NHS and other media organisations.

The BBC believes these partnership activities could provide a number of potential public service benefits:

· Through increased take-up and media literacy, the digital divide could be reduced with greater numbers of people taking up broadband-enabled services

· Access to public service content - both online and offline - would increase, with greater traffic to partner sites, such as the NHS, museums and galleries or to community media

· Higher traffic to commercial PSBs would increase the reach and impact of their content, and would increase online revenues.

The BBC is now engaged in discussions with the UK Government, the Welsh Assembly Government, Ofcom and others to determine the best way to maximise public benefit from the types of partnership activity outlined above and is fully committed to delivering that. It is also reviewing and refreshing its media literacy strategy to ensure it uses its resources and its existing relationship with audiences most effectively to make a major contribution in this area, benefitting the whole UK.

March 2009

[1] Source: Beaufort research for BBC Cymru Wales Autumn 2008

[2] Source: Beaufort research for BBC Cymru Wales Autumn 2008

[3] [3] The full partnership proposals can be read at www.bbc.co.uk/thefuture