Wow, there are so many interesting responses to Ofcom’s DDR consultation. They are great for two reasons. First, many of them persuasively argue for whatever outcome they think should result. More importantly for regulation watchers, however, in this proceeding many of the respondents criticise Ofcom’s regulatory process and implementation of its principles. Sony is a good example of both — supporting HDTV but also criticising Ofcom’s approach.

Click here to link to Sony’s submission to Ofcom. [7 page pdf] Sony writes in relevant part:

Research shows that the number of HD ready sets sold has grown from under half a million in 2005 to nearly 3 million by the end of last year and is forecast to more than double that figure this year rising to a cumulative total of nearly 37 million by 2012 when Digital Switch Over occurs.

And adds:

TV is the most watched and used technical equipment in the UK. Most homes have and use multiple TV receiving devices. There is no doubt that HD will become the standard in the future (indeed as already established in other countries around the world). Failure to allocate additional spectrum to FreeView will mean that it remains a Standard Definition broadcaster for the next generation. Investment by broadcasters and TV manufacturers into the platform will cease in 2012 and the millions of consumers who have invested substantially in to the platform by purchasing IDTVs, Digital TV recording devices and set-top-boxes will have to be told that their platform of choice will be second class.

And with respect to auctions says:

We believe this is a major error in the whole consultation process and we believe Ofcom are asking the wrong questions. The consultation should have offered Auction as one of the options rather that suggesting it is the preferred course of action. Auctioning fails to recognise that the PSBs may have the strongest case but due to changes in business models do not have the funds available to bid for spectrum.

I agree with Sony on this last point and actually would go a little further. Normally decisions on radio spectrum start with an allocation decision and don’t discuss allotments and assignment mechanisms (such as auctions or beauty contests) until the allocation decision has been made. Ofcom lean toward a flexible allocation for the digital dividend and that’s fine, but Ofcom should fully consult on that before trying to determine what type of auction would best suit the spectrum. Otherwise, it makes Ofcom appear as if it has prejudged its allocation decision.