DigiTAG

Web Letter

August 2006 | # 54

DigiTAG seeks to inform members and non-members about important developments in the digital terrestrial television market. Each month, DigiTAG distributes its web letter with news updates and further exploration of one topic.

To subscribe to the DigiTAG Web Letter, send an email to the DigiTAG Project Office.

DTT services in Australia

The launch of DTT services in January 2001 provided viewers in the five largest cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) with access to high-definition television (HDTV) using the DVB-T standard. Since then, DTT coverage has increased to 96% of the population and several new television programme services have been launched.

Yet, despite the widespread availability of DTT services, the take up of services by the public had only reached 20% of all television households by the end of June 2006. Compared with European markets, this is relatively low especially since the DTT platform has been available for 6 years. In addition, the platform has a large market potential given that over 70% of the population relies on the terrestrial platform for their main television reception.

The relatively low penetration level may suggest that viewers do not find the DTT service proposition sufficiently appealing to justify its cost.

Unique viewer proposition

The DTT platform provides viewers with access to the same services as are available on the free-to-air analogue terrestrial platform. However, the digital services are distinguished by being broadcast in high definition (with a standard definition simulcast) using the MPEG-2 video compression standard.

The government allocated to each of the five national broadcasters on the terrestrial platform, (ABC, SBS, Seven, Nine and Ten) one frequency channel on which they are required to provide the simulcast of their analogue service in SD and HD with at least 20 hours per week of HD content.

Yet by choosing this approach, the government has effectively prevented new broadcasters from entering the DTT platform or allowing existing broadcasters to offer a wide variety of television programme services. This had been the intention of the government moratorium which prevented the launch of new television programme services (multi-channelling) until this year. With the moratorium, the government wanted to allow existing broadcasters to recoup their DTT investment and the help boost the nascent pay TV sector.

Only the public service broadcasters ABC and SBS have been allowed to offer new services and have launched ABC2, SBS Essential and the World News Channel. Datacasting had been heralded as a means to provide new services although, at this stage, services are only available in Sydney.

This service proposition contrasts with European DTT service model where viewers have been offered access to many new television programme services in standard definition. Instead, the Australian model more closely resembles the one used in the United States where DTT services have been launched in order to offer viewers access to high quality sound and video services.

However, because the quality difference between PAL and HDTV in Australia is not as significant as between many of the analogue NTSC services and the HD service which use the ATSC standard in the United States, viewers may not find the quality increase sufficient to merit the purchase of a new DTT receiver. And with the need to simulcast services in SD, the amount of capacity available in each frequency channel for HDTV services is reduced.

Viewers have been reluctant to purchase DTT receivers given the high cost of the equipment. The price for HD set-top boxes begins at AUS$299 (approximately €177) while integrated television sets while the cost for a flat panel display with an integrated HD tuner begins at AUS$2799 (€1660). In contrast, a DTT set-top box in Europe can be purchased for as little as €50 and is therefore made affordable to a much greater number of viewers.

New Media Framework

Given the low penetration up of DTT services, the government suggested changes to the existing media regime in July 2006. Under the proposed New Media Framework, commercial broadcasters would be able to provide one additional standard definition service from the beginning of 2009. In addition, broadcasters would no longer need to simulcast existing services in HD but rather could offer a separate high-definition service.

To provide viewers with access to a wider choice of services, the government has also proposed that two unassigned frequency channels be made available for the provision of more standard definition programming or mobility using the DVB-H standard. Already, a year-long commercial DVB-H trial had taken place in Sydney with 375 participants.

The New Media Framework also calls for a delay in the date for analogue switch-off. Rather than as originally planned at the end of 2008, analogue switch-off would be postponed to 2010-2012. This revised date is more realistic given the current DTT penetration level.

As a next step, the Senate will need to approve the government's proposed media regime, which could happen before the end of the year.

Favouring traditional broadcasters

In the planning stages which led to the launch of the DTT platform in 2001, the government did not have many helpful examples to follow. The pay DTT model attempted in Spain and the United Kingdom had proved unsuccessful and the Freeview model had not yet been launched. With a nascent pay television platform and the broadcasters on the analogue platform heavily investing in DTT services, the moratorium on new services seemed fair.

However, following the success of multi-channel services on the DTT platform in Europe, it might be expected that the Australian government may reconsider the moratorium and satisfy the market demand, as demonstrated in several countries, for a wider range of services on the DTT platform.

Source: Natalie Mouyal, DigiTAG Project Office

About DigiTAG

DigiTAG aims to encourage and facilitate the implementation and introduction of digital terrestrial television services using the Digital Video Broadcasting Project's Standard (DVB-T). It has some 60 members from broadcasting, network operators, regulatory, and manufacturing organisations throughout Europe and beyond.

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DTT NEWS ROUND-UP

For all articles, please go to DigiTAG News

Ireland - First phase of DTT trial launched

In the first phase of the pilot, expected to run for several months, the stability of the network and the technologies used is being tested. It is not until the second phase of the pilot that set-top boxes will be distributed to trial participants.

The content available during the first phase consists of national television and radio services (RTÉ 1, RTÉ2, TV3, TG4, RTÉ Radio 1, RTÉ 2 FM, RTÉ Lyric FM, RTÉ Raidió na Gaeltachta and Today FM). However, new content will likely become available when the second phase is launched.

Currently, the Broadcasting Commission of Ireland and the Department of Communications, Marine and Natural Resources are in the process of evaluating the nine applications received for Multiplex Programme Content Managers for the DTT trial.

Source: DCMNR website

Czech Republic - CTU announces 10 October 2010 analogue switch-off date

The Czech Communications Authority (CTU) has unveiled it roadmap for digital switchover in the Czech Republic and set 10 October 2010 as the date for complete analogue switch-off.

The reaction to this announcement has highlighted the tension between the commercial broadcasters on the analogue platform, TV Prima and TV Nova and the broadcasters that have been granted licenses to transmit on the DTT platform.

While both TV Prima and TV Nova have stated that the 2010 deadline set by the CTU is unrealistic, the new broadcasters on the DTT platform would instead prefer analogue switch-off to take place earlier.

Source: Prague Post

Italy - Mediaset prepares for DVB-H launch

Mediaset has announced its plans to launch its DVB-H services in October. Already, Mediaset has agreed to make its DVB-H services available to the mobile phone operators TIM, 3 Italia and Vodafone.

Although the content for the platform has not been confirmed, possible services include those of CNN and Endemol.

Source: advanced-television.com

Switzerland - Analogue Switch-completed in the Ticino region

The Italian speaking region of Switzerland, Ticino, completed the switch-off of its analogue platform on 24 July at 12:45. This makes it the first region in Switzerland to have completed digital switch-over.

A massive information campaign that began in February 2006 provided viewers with the necessary information on how to prepare for analogue switch-off.

Analogue switch-off began in March 2002 when two of the four available analogue channels were switched off across Switzerland. The process of switching off the remaining two analogue channels is now underway.

The next regions to complete analogue switch-off are the Engadine in November 2006 and the French-speaking part of Switzerland in June 2007. Analogue switch-off will take place in the German-speaking part of the country in November 2007.

Source: SRG SSR website

Sweden - DVB-H trial during the European Athletics Championship

Residents of the city of Gothenburg were able to test DVB-H services during the recent European Athletics Championship held in the Swedish city. Mobile operator Telia and the manufacturer Nokia led the pilot.

As part of the pilot, viewers were able to access five television programme services (SVT1, SVT2, TV4, Kanal 5 and Eurosport) offering coverage of the Championship. It used the Nokia N92 DVB-H receivers.