Japan's Ministry of Posts and Telecommunications (MPT) has proposed that the Japanese government should shoulder the cost of the country's transition to digital terrestrial broadcasting, which is scheduled to begin in 2003.

Representatives from the MPT, public broadcaster NHK and the commercial networks presented estimates of the cost to a ruling party sub-committee for upgrading Japan's broadcasting infrastructure, on April 25. In turn, the sub-committee decided to ask the government to subsidise the total amount.

According to MPT estimates, the total cost of continuing analogue broadcasts from 2003 until they go off the air in 2010, including the purchase of new receiving equipment for households, is Y85.2bn ($811.4m). The ministry proposes that the government supply Y10.0bn ($95.2m) of that amount in the 2001 financial year and the remainder in succeeding years.

Digital terrestrial broadcasts are scheduled to begin in the Tokyo, Nagoya and Osaka metropolitan areas in 2003, extending to the rest of the country in 2006. In some areas, such as the island of Kyushu and the Seto Inland Sea, analogue channels will have to switch to other frequencies to make way for new digital services. Households affected by the shift will have to purchase new antennas and adapters if they want to continue receiving analogue broadcasts. In addition, TV stations will have to replace some of their transmission equipment to cope with the change to new frequencies.

According to MPT estimates, nearly 2.46 million households will be affected and total bill for new antennas and other receiving gear will reach Y54.0bn ($514.3m). Meanwhile, TV stations will have to spend a total of Y31.2bn ($297.2m) for new transmission equipment.

In return for supporting the continuation of analogue broadcasts, the MPT expects broadcasters to return unused broadcasting frequencies to the government after the transition to digital is completed. The ministry will then allot these frequencies to mobile phone and other services. First, though, it will have to negotiate with the Ministry of Finance, which may not be amenable to such a large increase in public expenditure.