Backchannelmedia

Dominion Post

By SCHWARZ, Reuben

Some customers claim TelstraClear's new digital service is a disappointment. By Reuben Schwarz.

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TELSTRACLEAR is drawing fire for skimping on its just-launched digital TV service, which some punters claim gives below-par picture quality on large-screen plasma and lcd televisions.

At issue is the composite video output connection of its new digital set-top boxes, used to transfer signals to the TV. Composite video is the most common but also the lowest quality form of connection.

Some customers are upset the boxes don't have higher quality video outputs, such as component or S-Video. Most plasma screens and lcd TVs now have component inputs and most new TVs support S-Video.

The difference is comparable to that between VHS and DVD image quality.

The criticism is unfortunate for TelstraClear, which has identified its cable networks in Wellington and Christchurch as one of its strengths, despite raising line rentals by $2 per month last month.

Roger Thompson, technical manager at Unitec Electronics, an independent TV retailer and repair shop, has been trialling the digital boxes for a month and is unimpressed by the picture.

"They tried to sell it on the quality of the picture, but from my point of view the quality of the picture isn't different," he says.

"The facility should be there for more than just composite for people who want higher quality."

As far as he is concerned, the digital service might as well be analogue if it only has composite output, though other members of his family believe they can see a difference between the digital and analogue service.

Mr Thompson says the difference between composite and other inputs would be noticeable to most people with lcd or plasma screens.

His disappointment is echoed in several postings to online news groups such as Geekzone.co.nz, frequented by consumer electronics buffs.

However, TelstraClear stands by its set-top boxes, saying they deliver the quality "most customers expect" and that component or S- Video would have been a waste of money.

"Ninety-eight per cent of customers wouldn't notice the difference," says product marketing manager Jeff Doyle. "The bulk of customers would be penalised through increased cost. We didn't feel that the benefit would be worth it."

Since its launch late in August, 1500 of TelstraClear's 40,000 cable TV customers in Wellington and Christchurch have converted to digital.

"We've got customers who are finding it definitely a better picture than the analogue service," says Mr Doyle.

TelstraClear's marketing material stresses the suitability of the digital set-top boxes for larger TVs.

"If you've invested in a large screen plasma, lcd or wide-screen television, you'll appreciate the quality digital (over cable) will bring," the material reads.

Mr Doyle acknowledges some customers are dissatisfied but says they represent a minority.

He nevertheless says the company is looking at "other options to enhance our service which may involve other set-top boxes", including ones with personal video-recorder (PVR) features.

PVRs let customers pause and rewind live TV and record while watching another station.

Sky's latest set-top box includes a PVR and will be available from December 5. Both its PVR and its current set-top box support S- Video.

Mr Doyle says Australian pay-TV operator Austar uses the same product as TelstraClear, though Austar says its boxes support S- Video.

TelstraClear chief executive Allan Freeth says he believes the company's digital service is a fantastic product and suggests people might check their plasma screens if they are unhappy. "To my eye, it's a pretty impressive result."

Dr Freeth says TelstraClear will market its cable networks much more heavily in future, noting that before joining the telco's advisory board, he didn't realise TelstraClear had cable running down his street.

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