DigiTAG

Web Letter

February 2007 | # 59

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.

French legislative update

Late in the night of 31 January to 1 February, the French National Assembly approved a new bill. Entitled Télévision du Futur (television of the future), the bill provides the necessary legal framework to allow for the shut down of the existing analogue terrestrial platform and the launch of new broadcast services.

While this bill received strong support from the government and its political allies, it failed to satisfy the left and centre-left opposition parties. The more controversial elements of the proposed bill could not escape being politicised in a year of a contentious presidential election.

First proposed by the government in June 2006, the bill received the approbation of the broadcast regulator, Conseil Supérieur de l'Audiovisuel (CSA), with some reservations. In November, the Senate provided its approval, albeit with a few amendments. The latest version, approved by the National Assembly, will be reviewed by a joint National Assembly / Senate committee prior to a final vote expected by the end of February.

Analogue switch-off

Analogue switch-off is one of the key elements of the new bill. Switch-off is to take place by region beginning on 31 March 2008 and ending by 30 November 2011. The CSA is expected to prepare the analogue switch-off timetable and make it available in July 2007.

Information is viewed as an essential component to a successful digital switchover. In preparation for switch-off, the bill calls for information campaigns to be launched in each region in the months prior to switch-off. In addition, manufacturers will need to label their products clearly, indicating which products contain a digital tuner.

To ensure that all households are able to access digital television, funding will be made available to low-income households, based on those households exonerated from paying the television license fee. These households will be provided with access to the DTT platform, if services are available where they live. Alternatively, access to digital satellite services will be provided.

More controversially, an amendment proposed and approved by the National Assembly mandates that all television sets sold in the next year must have a digital tuner. In effect, it will no longer be possible for manufacturers to deliver analogue-only television sets to retailers in 9 months while retailers will no longer be able to sell analogue-only television sets in the 12 months following the entry into force of the new law. In addition, all HD television sets will need have an HD MPEG-4 AVC decoder included by 1 December 2008. It could be anticipated, however, that tuner mandation encounters some opposition from the European Commission given its stance on technology-neutrality.

DTT services after switch-off

Following analogue switch-off, DTT services will be available to 95% of the French population. To enable the remaining 5% to access the same services as are available on the DTT platform, a free-to-view satellite services will be provided by the government. It is expected that the satellite services will be available as of the summer of 2007.

Viewers will be able to access 20 free-to-air and 19 pay-DTT services after switch-off. The increase in the number of DTT services is due in part to the allocation of a bonus DTT service slot to the three commercial broadcasters on the analogue platform, TF1, M6 and Canal+, to compensate for the switch-off of their analogue terrestrial services prior to the expiration of their analogue licenses.

In addition, all broadcasters on the DTT platform will be given a five-year extension on their current DTT license in exchange for their agreement to increase the coverage of their DTT services beyond 85% of the population.

Using the digital dividend

The approved bill provides the necessary legislative framework to allow for the introduction of high-definition and mobile television services. The CSA been given the authority to allocate licenses for these services and has already opened two public consultations in order to understand better the broadcast industry's expectations regarding these services.

While it is not known how many multiplexes will be made available for HDTV services, one nationwide multiplex is expected to launch HD services by September 2007, in time for the Rugby World Cup. For mobile television, it may be possible to launch services on one multiplex, although coverage will be limited to large city centres. It does not seem likely that country-wide coverage will be possible prior to analogue switch-off.

In choosing an operator for mobile television license, the CSA must consider such issues as the news content provided, the amount of funding the operator has allocated for new content creation and the type of new services to be made available. Depending on the frequencies available and the roll-out of the network, these services could be rolled out as early as Autumn 2007.

Opposition to the new framework

The new legislative framework has become enmeshed in national politics due, in part, to the upcoming presidential election. Opposition parties took a position against the allocation of the so-called "bonus channel" to the commercial broadcasters TF1, Canal+ and M6. For one presidential candidate, this allocation is a "gift rather than a compensation."

Some fear that the proposed legislation favours the existing media groups, to the detriment of new broadcasters that have recently launched services on the DTT platform. Rather than reinforcing pluralism and encouraging new voices, the media legislation instead concentrates influence among the incumbent broadcasters. It is for this reason that the Socialists, the leading opposition party, have announced their intention to bring the bill before the Constitutional Council (Conseil Constitutionnel) for its review.

IPTV service providers have also protested against the proposed law. The bill requires that television service providers finance new content development through a tax on a portion of their profits. This fund, COSIP, already financed by operators on the terrestrial, cable and satellite platforms, will now include contributions from IPTV service providers. As part of its campaign to oppose the law, IPTV service provider Free started an online petition against the so-called "Internet tax" and generated half a million signatures in just a few days.

While the proposed framework may provide advantages to existing media groups, it ensures that a majority of frequencies made available following analogue switch-off are reserved for broadcast services and allows viewers to begin to benefiting from new services such as mobile and HD television.

Further criticism to the new framework could be made on the basis that it does not take into account new media offerings already made available on the Internet such as Joost, YouTube or BitTorrent. These new offerings will likely become part of the television landscape, although how they are used and controlled is yet to be determined. Rather the French media bill provides a legislative framework consistent with a traditional broadcast industry that clearly delineates between the service provider and viewer.

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

Upcoming Plenary / Steering Board meeting for DigiTAG members

DigiTAG members who wish to attend the next Plenary/Steering Board meeting on 27 February are asked to register their attendance.

Further information on the meeting, including the meeting agenda, can be found on the members' only section of the DigiTAG website.

United Kingdom - HDforAll campaign launched

A coalition made up of television manufacturers, retailers and public service broadcasters has launched a campaign with the intention of securing HDTV services on the free-to-air DTT platform (Freeview).

The coalition is opposed to Ofcom's plans to hold an open auction for the spectrum released through digital switchover as this could compromise the launch of HDTV services on the DTT platform.

Source: HDforAll press release

France - DTV penetration reached 37.9% at the end of 2006

In a report published by the network operator TDF, together with the consultancy firm NPA Conseil, 15.1% of French households are equipped with a DTT receiver. This compares with 9.4% in Q3 2006.

According to the report, DTT coverage has reached 63.65% of the population. In terms of cost, DTT receivers for less than €30 were available at the end of 2006. A price point below €25 is expected this year.

The full report can be downloaded from the TDF website.

Source: TDF website

Switzerland - Next step for ASO set for 25 June

Analogue switch-off continues to progress in Switzerland with most of the country ending analogue terrestrial services by the end of 2007. By the end of the year, analogue services will only be available in the Valais (Rhone Valley) region.

Analogue switch-off in the regions of the Jura, Bassin Lémanique and Gros de Vaud is set to take place on 25 June. It will be following by switch-off in the regions of Northern Switzerland, Berne, Lucerne and Graubunden on 27 November 2007.

Source: Broadcast.ch

Indonesia likely to adopt DVB-T standard

The Indonesian government is likely to select the DVB-T standard for its DTT services. Services are expected to begin in 2009 while analogue switch-off is expected in 10 years' time.

The government had also considered systems from Japan (ISDB), the United States (ATSC) and China (DMB).

Source: Broadband TV News

United Kingdom - 2 million DTT receivers sold during Xmas period

The fourth quarter of 2006 proved to be strong for the DTT platform with the sale of 2 million DTT receivers. This compares with 1.1 million DTT receivers in the fourth quarter of 2005.

DTT-PVRs had the strongest level of growth, registering double digit growth year-on-year. During Q4 2006, 90,000 DTT-PVRs were sold, compared wth 43,0000 during Q4 2005.

Source: Broadband TV News

Italy - Vodafone uses Nagravision for DVB-H security

Vodafone has selected Nagravision to protect the content rights for its newly launched DVB-H services, Vodafone SKY TV. With Nagravision's solution, Vodafone can offer a wide range of business models such as pay-per-subscription to pay-per-view and pay-per-time.

Viewers are able to access such services as Fox 1, Sky Sports and the Disney Channel as well as premium TV services such as Serie A football. The service is using LG KU950 handsets.

Already, Nagravision provides service to 3 Italia and TIM for their DVB-H service offering in Italy.

Source: Nagravision website