DigiTAG

Web Letter

March 2006 | # 49

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. The below web letter is based on a presentation given at the Central European Radiocommunications Days in Slovakia on 1 March.

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

DTT developments in Europe

Recent reports announce that 10 million digital terrestrial television (DTT) set-top boxes have been sold in the United Kingdom. Together with cumulative DTT set-top boxes sales in the rest of Europe, it is estimated that over 20 million set-top boxes have now been sold. It is no surprise that DTT is currently the fastest growing digital television platform in Europe.

Current DTT market

Since the first launch by the United Kingdom which took place in 1998, most of the other large countries in western Europe have now launched their DTT services. Those which have yet to launch fully are currently in the planning stages and in the process of operating significant technical and service trials.

The growth of the DTT platforms has been strong in 2005 and is likely to continue into 2006, especially as these countries continue analogue switch-off planning. The number of DTT households in Europe increased from 8.2 million at the end of 2004 to 11.6 million by mid 2005.

Of the five largest western European markets, those with established DTT markets, the United Kingdom, Italy and German, showed continued growth while two potentially large markets, France and Spain, launched (or in Spain's case re-launched) DTT services in 2005. In both France and Spain, set-top box sales exceeded initial industry estimates. This is a result, in large part, to significant publicity and media reports on the DTT service offering as well as the gadget price of set-top boxes in large retail outlets.

It can be expected that markets which traditionally showed a heavy reliance on the analogue terrestrial platform will continue to achieve strong levels of growth. However, this assumes that an enhanced television programme offer is provided.

France launched its free-to-air DTT services on 31 March 2005 with coverage provided to 35% of its population. Since October 2005, coverage has been extended to 50% and plans are underway to increase coverage to 65% by April 2006. Viewers are offered 18 free-to-air television programme services in addition to services on the pay DTT platform. Unique to the French market, DTT services on the free-to-air platform use the MPEG-2 video compression standard while pay DTT services use the MPEG-4 standard. Approximately 1.7 million DTT receivers were sold as of the end of 2005. DTT has reached a 7% penetration level countrywide, and a 14% penetration level in those areas able to access DTT services.

Spain re-launched its DTT services on 30 November 2005 with 20 free-to-air services, available to 80% of the population, in addition to some regional and local DTT services. The re-launch follows on an earlier attempt to launch a pay DTT platform in May 2000 which proved unsuccessful. Prior to the formal re-launch of DTT services, 400,000 set-top boxes had been sold in addition to the set-top boxes already in viewers' homes following the demise of the pay DTT platform. At the end of 2005, 1 million households could access DTT services, surpassing the initial industry estimate of 850,000.

Italy has continued to demonstrate strong growth of its DTT platform. First launched in December 2003, the platform offers 23 free-to-air television programme services to over 70% of the population. Viewers have been encouraged to purchase interactive set-top boxes, as opposed to cheaper "zapper" receivers, through government subsidies made available in 2004 and 2005. It is estimated that 3 million set-top boxes have been sold. The offer of a pre-paid pay-per-view service has helped boost set-top box sales especially with its broadcast of Premiership football matches. Approximately 200,000 set-top boxes were sold in a single week at the end of August, just prior to the football season's start.

Germany has launched DTT services and ended analogue terrestrial services using an island-by-island approach. DTT services have been launched in highly populated areas and, so as to minimize simulcast (the simultaneous transmission of analogue and digital terrestrial television services) and to make frequencies available for new services, analogue television services have been quickly shut down. In the Rhein-Main region, analogue switch-off took place 3 months following the initial launch of DTT services. Over 60% of the population can now access DTT services, including such areas as Berlin, North Rhine Westphalia, northern Germany, Bavaria, Frankfurt, Leipzig/Halle and Erfurt/Weimar. It is estimated that over 4.5 million DTT receivers have been sold.

With over 6 million households relying on the DTT platform as their main television reception platform, the United Kingdom has one of the highest DTT penetration rates in Europe. Offering viewers 30 free-to-air television programme services, Freeview has proven extremely popular. Already, planning is well advanced for analogue switch-off set to begin in 2008 and reach completion in 2012. Digital UK, the organisation tasked with coordinating digital switch-over, has announced that it will launch a £5 million advertising campaign starting in May.

The DTT platform has also progressed strongly in the Nordic countries. Finland and Sweden. Finland currently holds the highest DTT penetration rates in Europe with nearly 30% of its population accessing DTT services. In addition, it provides a coverage level of nearly 100% for two out of its three multiplexes. The government plans to launch two further multiplexes, one for new DVB-T services and a second for DVB-H services.

In Sweden, DTT is currently the fastest growing digital platform and is expected to become the largest digital platform in 2006. Nearly 600,000 households access the available free-to-air and pay DTT services. Analogue switch-off commenced in September 2005 and will continue on a region-by-region basis until completion in February 2008.

DTT growth has been slower in Belgium, the Netherlands and Switzerland where cable reception dominates the television market. In Belgium and Switzerland, the service offering has been limited and does not offer viewers an attractive alternative to the cable platform. In the Netherlands, the DTT service package offered by telecom operator KPN, accompanied by a massive marketing campaign, has doubled the number of DTT households in the past year.

New markets ready for growth

Central and eastern Europe may also be poised for growth. Already, the Czech Republic launched its DTT services in October 2005 and 150,000 DTT set-top boxes have been sold. DTT launches have been announced in Estonia, Slovakia and Lithuania. Ongoing DTT trials are in place in Croatia, Estonia, Hungary, Lithuania, Macedonia, Poland, Serbia-Montenegro, Slovakia and Slovenia.

It can be expected that once the DTT platform is launched, these markets will experience high levels of growth given the importance of the terrestrial platform, and assuming that the public will be tempted by the offer of new services. However, cable and satellite operators may benefit from any delay in the launch of DTT services to increase their market share.

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

Estonia - DVB-T service launch using MPEG-4 expected at the end of 2006

The government has decided that DVB-T services will be launched in Estonia by the end of 2006. Services will by launched by broadcast network operator Levira and provide content from Estonia's largest radio broadcaster and its public service broadcaster, Eesti Television (ETV).

Levira has announced that it will roll-out 2 multiplexes this year while a third multiplex will be launched in 2007-2008. A fourth multiplex may be launched in 2009.

In addition, it has been decided that the MPEG-4 video compression standard will be used.

Source: Levira

Austria - DTT licence awarded to ORS

The government has awarded the broadcast network operator ORS the licence to launch DTT services in Austria. It had been the only application received by the government.

DTT services are expected to be launched in Autumn 2006. Viewers will be able to access three television programme services, ORF1, ORF2 and commercial service ATV+. In addition, a second regional version of ORF2 will also be made available to viewers. These services will be operated from MUX A.

By 1 March 2007, MUX A must reach 60% of households and increase its population coverage to 90% by March 2009. A second multiplex, MUX B, is also likely to be launched. It is required to have a population coverage of at least 60% by the beginning of 2008 and provide access to a minimum of three television programme services.

It is expected that analogue switch-off will be finalised in 2010.

Source: Heise online

New Zealand - Government finalising DTT planning

The government is expected to put in place the necessary legislative framework to allow for the launch of DTT services in New Zealand. Should legislation be approved, it is possible that free-to-air DTT services could be launched in 2007.

The government has indicated that it favours the adoption of a DTT services similar to the Freeview model in the United Kingdom. It would like the public service broadcaster to play a leading role in the DTT platform and increase the number of television programme services available to viewers.

Source: Digital Spy

Finland - Further DTT programme licences available

The Ministry of Transport and Communications has invited candidates to tender for new programme licences available on the DTT platform. Applications must be submitted by 2 May 2006.

The programme licences are available on the third and fifth multiplexes. While the third multiplex is already in use, the fifth multiplex is expected to be rolled out in the coming years. Two programme licences in this multiplex will be reserved for Swedish language services.

The fourth multiplex has been reserved for mobile television services.

Source: advanced-television.com

Sweden - New DTT services to be launched

The Swedish government has allocated the licences for 7 new television programme services. These new services will be placed in the existing DTT network.

Viasat’s entertainment channel TV6, music channel The Voice, Storstads-TV and Axess TV will be available as part of the free-to-air service. BBC Prime, a film channel from NonStop Television and a new service from Kanal 5 will be offered as part of the Boxer pay-DTT package.

Boxer has announced that it will make its services available as of 31 May.

Source: Broadband TV News

Via Licensing announces revised MHP licensing terms

Via Licensing has announced its revised licensing terms for patents essential to the DVB-MHP 1.0 standard.

Under the new terms, free-to-air broadcasters will need to pay a fee based on the total number of homes within the reach of MHP services.

However, these license fees will not be charged until 1 January 2009.