DigiTAG

Web Letter

May 2006 | # 51

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 provides a detailed look at the current DTT activities in the Czech Republic.

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DTT in the Czech Republic

With the approval of amendments to the existing media law, the Czech Parliament has confirmed its commitment to digital terrestrial television (DTT). Already, DTT services have been thriving in the Czech Republic: the public service broadcaster Czech Television launched its DTT services in October 2005 while the broadcast regulator RRTV allocated six DTT licences to commercial broadcasters in April 2006.

With the amendments to the media law, the legal framework for digital broadcasting is established as well as the necessary rules to guide the transition from analogue to digital broadcasting. However, it has taken five years for the Government, Chamber of Deputies and the Senate to approve the revisions to the media law. Political disagreement between members of Parliament and between the two key regulatory bodies - the Radio and Television Broadcasting Council (RRTV) and the Czech Telecommunications Office (CTU) - had slowed down the legislative process.

To accompany the revised media law, the Czech Government has also approved a policy document, Concept for the Development of Digital Broadcasting, submitted by the Minister of Informatics. This document sets out the government's plans for analogue switch-off.

Planning for analogue switch-off

Analogue switch-off will take place region-by-region beginning in 2007. While it is expected to end by 2010, analogue switch-off may be brought forward to 2009. The CTU is expected to finalise the Technical Plan for Transition by the end of 2006 which will establish the analogue switch-off roadmap.

However, before analogue switch-off is possible, the government has set several conditions which will first need to be met. These conditions include the availability of DTT services for a period of 3-12 months within the given area, the launch of a targeted information campaign 3 months prior to the planned switch-off date and the availability of set-top boxes at a reasonable price.

The government has also agreed to fund a two-part information campaign on digital switch-over. In the first phase, the government has allocated a budget of Kc82 million (€2.89 million) for a national advertising campaign in print and broadcast media. Starting in Autumn 2006, this campaign will provide information on the advantages of digital television. The second phase of the campaign will begin in June 2007 and focus on providing information on analogue switch-off.

The Minister of Informatics has proposed the establishment of a national body to oversee digital switchover under the direction of the government. The proposed group, tentatively named the National Coordination Group (NKG), will include representatives from seven government ministries, the regulators CTU and RRTV, broadcasters and network operators.

Current DTT status

Following the Parliament's changes to the rules governing the public service broadcasting, it has been possible for Czech Television to launch DTT services from a single multiplex (Multiplex A) on 21 October 2005. Coverage was initially limited to Prague and the surrounding area but has since been extended to Brno and Ostrava since early 2006.

Viewers are able to access 4 television programme services offered by Czech Television as well as one service provided by the commercial broadcaster TV Nova. Services from Czech Television include the simulcast of CT1 and CT2, CT24, a continuous news service and CT4 SPORT, dedicated to sports coverage. TV Nova simulcasts its analogue service. All services are available free-to-air using the MPEG-2 video compression standard.

In early April, the broadcast regulator RRTV allocated six DTT licences to commercial broadcasters. These licences have been awarded to a continuous news services (Z1), a regional service (RTA), a family service (TV Pohoda), a music service (Ocko) and two general entertainment services (Febio TV and TV Barrandov). Interest in the DTT licences was strong given that RRTV received 33 applications proposing 42 different projects.

While the DTT licence holders are required to begin broadcasting within the next 12 months (360 days), it is likely that services will be launched by the end of the year. The services will be available on two multiplexes, B and C, run respectively by Czech Digital Group and Cesky Telecom. Licences are valid for a period of 12 years.

The revised media law also guarantees that the two commercial services on the analogue terrestrial platform, TV Nova and Prima TV, receive DTT licences. While TV Nova already broadcasts its services in the multiplex managed by Czech Television, Prima TV is now guaranteed a slot on the DTT platform.

DTT transition period

Prior to analogue switch-off, the available frequencies will make it possible to launch only three multiplexes with limited national coverage. Multiplex A will have the highest coverage level, reaching 75% of the population, while Multiplexes B and C will have a population coverage of 29% and 49% respectively. Multiplex A is managed by Czech Television while Multiplexes B and C are reserved for commercial broadcasters.

Given the limited number of services possible, the period leading up to analogue switch-off is viewed as a transition. As more frequencies become available, it will be possible to increase the DTT coverage area and to offer new services. While Czech Television currently manages one multiplex, it will assume the management of two multiplexes following analogue switch-off.

During the transition period, it may be possible for broadcasters to test new services including MPEG-4 technology, HDTV and DVB-H services with the aim of eventually launching such services following analogue switch-off.

Short-term DTT prospects

Given that 75% of households depend on the terrestrial platform to receive television services, DTT has the potential to gather a significant market share assuming that these households convert to DTT services. With an attractive free-to-air offer providing viewers with access to many new television programme services unavailable on the analogue platform, the DTT platform has good reason to be optimistic. Already, by March 2006, the DTT platform had achieved a penetration of 4.2% in those areas where services are available.

However, the competition from other television platforms is also strong. Currently the fastest growing market for broadband services in the European Union, the Czech Republic may be fertile territory for IPTV services. Satellite services are available and digital cable is expected to be launched soon. To continue to be successful, the terrestrial platform will need to provide an appealing digital offer that can compete with other platforms.

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

United Kingdom - Raising PVR awareness

The free-to-air DTT consortium, Freeview, has unveiled its plans to raise consumer awareness about personal video recorders (PVR). With support from the consumer electronics industry, Freeview will launch the Freeview Playback brand.

Research conducted on behalf of Freeview shows that while consumers show high interest in being able to record digital programmes there is little awareness of PVRs and the uptake of digital terrestrial PVRs has been limited.

The Freeview Playback brand is expected to be in the market by September. The Digital Television Group will ensure that Freeview Playback products carry a quality assurance for consumers.

Source: DTG website

Austria - DTT information campaign to begin

In conjunction with the launch of DTT services in September, a public information roadshow will begin in Austria.

The Chamber of Commerce together with the consumer electronics industry will make information on digital switchover available to consumers.

Digital switch-over is to begin by region as of Spring 2007 and will be completed by 2010. By 2008, it is expected that 90% of the population will be able to access DTT services.

Source: Aon.at

Ukraine - DTT services to be launched by end 2006

The National Council of Ukraine for TV and Radio Broadcasting has allocated four DTT multiplex licences. The multiplexes are to be used for test transmissions, lasting no more than one year, followed by the official launch of commercial services.

The multiplex licences have been allocated to Ukrainian Digital TV Network (UDTVN) and JSC, Era Production, Express Inform and Gamma Consulting.

In addition, UDTVN is planning to launch a DVB-H trial in June 2006.

Source: UDTVN

Finland - Preparations for DVB-H launch underway

The network operator Digita and Nokia have signed the world's first commercial DVB-H mobile TV platform supply contract. As part of the contract, Nokia will provide Digita with its DVB-H service management solution Broadcast Solution (MBS) 3.0.

Digita is responsible for the DVB-H broadcast network for which it holds a licence. In a first stage of roll-out, DVB-H services will cover the Helsinki region (Ring Road III) as well as the cities of Turku, Tampere, and Oulu.

It is expected that 29% of the population will be able to access DVB-H services by the end of 2006. Further plans to extend the DVB-H network are underway.

Source: Nokia website

Ireland - DTT trial to begin in August

The Minister for Communications, Marine and Natural Resources, Noel Dempsey, has called on Ireland to meet the 2012 digital switchover deadline set by the European Commission.

As a first step, a two-year trial will begin in mid August and serve as a precursor to a national rollout of DTT services.

BT Communications Ireland will provide multiplexing and distribution services while NEC UK will supply and install the transmission systems. RTÉ Transmission Network will assist the Minister in the development and operation of the pilot project.

Source: Silicon Republic

France - CSA announces next phase of DTT roll-out

The Conseil supérieur de l'audiovisuel (CSA) has announced the next phase of DTT roll-out in France. By 31 March 2007, 70% of the population will be able to access DTT services.

The new regions that will be able to access DTT services are Bourgogne, Rhône-Alpes, Provence-Alpes-Côte d'Azur, Lorraine, Champagne-Ardenne, Franche-Comté and Poitou-Charentes.

While current DTT coverage stands at 50%, it is expected to reach 66% by October 2006.

In addition, the CSA has presented a plan to provide DTT services in the border region of Alsace. Because the plan calls for the use of frequencies currently utilised for analogue services, the CSA has proposed that a digital switchover pilot takes place this year.