DigiTAG

Web Letter

January 2008

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.

Digital services in Denmark

Plans are underway to provide viewers in Denmark with new television services on the terrestrial platform. The broadcast regulator, the Danish Radio and Television Board, has formally invited candidates to tender for the operation of four DTT multiplexes that will be available following analogue switch-off. Candidates have until 4 February to submit their application with the final decision on the license allocation expected on 28 March 2008.

Current television landscape

Cable is the leading television platform in Denmark with a penetration of over 60% of television households. While only 18% of households rely on the terrestrial platform for their primary television reception, its actual use is much higher. A majority of households with satellite reception need the terrestrial platform for access to local and regional broadcast services, effectively meaning that secondary television sets and those in vacation homes are often not connected to a pay television service.

The popularity of the terrestrial platform has become increasingly evident following the launch of the first DTT multiplex on 1 April 2006 offering programmes from the public service broadcasters DR (Danish Broadcast Corporation) and TV2. This digital service allowed viewers to access the two services already available on the analogue terrestrial platform, DR1 and TV2, as well as DR2 which otherwise has limited analogue terrestrial coverage. Furthermore a service with signing for the hearing-impaired is available two hours each day.

Despite the limited number of services available to viewers, the DTT platform has been remarkably successful. Already, more than 500,000 DTT receivers have been sold which represents a penetration of 21% of all television households.

A second multiplex has been allocated to DR. Services on this multiplex will be launched on 1 November 2009 and use the MPEG-4 AVC compression format. It will offer up to 5 new services from DR as well as a parliamentary service.

New DTT services

The Radio and Television Board will issue a twelve-year license for the operation of four national multiplexes (MUXs 3-6) using a "beauty contest" method, valid until March 2020. The license-holder will serve as a commercial DTT operator, with the responsibility for building, operating and financing the DTT network.

In their application, candidates have the flexibility to select the type of broadcast services that they wish to offer and which can include high-definition, standard-definition, and/or mobile services. They can also offer a wide-range of content from regional, national and international broadcasters, although they are obliged to provide different news services for at least seven regional areas and the broadcast service from a neighbouring country (Sweden, Norway or Germany).

In addition, candidates must provide the Radio and Television Board with detailed information on their service plans, including the total number of services to be offered, type of content as well as the pricing packages since it can be expected that some, if not all, of the services will be available as a pay subscription. A limit is placed on high-end services, with no more than 25% of the capacity available to services that each cost more than DKK 30 (EURO 4) per month.

Services on all multiplexes must be available to 97% of the population using a roof-top antenna for reception. However, it is not necessary that the multiplexes cover the same areas, only that they each reach 97% of the population. This could mean that the coverage area for each multiplex varies slightly. Given the rather flat geographical topology of Denmark, reaching such a high level of coverage is economically feasible. Multiplex 1 reached a coverage of nearly 100% of the population within the first six months following its launch.

Mobile TV services

The Radio and Television Board encourages the provision of mobile television services using the DVB-H standard as a mobile television offer will be a criteria in the selection process. Of the four multiplexes available, one multiplex can be used for the provision of mobile television services. However, 15% of the capacity must be reserved for the public service broadcaster DR while 35% of the capacity must be made available to other operators on a wholesale basis.

Should a multiplex offer DVB-H services, it will be exonerated from the obligation to provide coverage to 97% of the population.

The government has also decided that some of the frequencies in the L-Band can be used to provide mobile television services which may impact the decision to provide mobile television services in the UHF band.

Compression format

The Radio and Television Board has called for the use of the MPEG-4 AVC compression format in the four multiplexes it is allocating to the commercial service operator despite the use of the MPEG-2 compression format in the first multiplex. However, multiplex 1 must migrate towards MPEG-4 AVC by 2012. In addition, multiplex 2 must use MPEG-4 AVC by 1 November 2009, which corresponds to the date when digital switchover will be completed.

The Radio and Television Board calls for the use of open standard for encryption and interactive (API) services.

Allocating the license

To provide candidates with a better understanding of the selection process, the Radio and Television Board has outlined the three factors that will guide it in its attribution of the DTT operator license.

The proposed service offering and the ability of the operator to carry out the proposed plan are two important factors that have each been given a weight of 25% of the total assessment. However, the most important factor is the need to promote effective competition in the television market. Hence, the Radio and Television Board expects to allocate the license to an operator that does not already have links to other television sectors in Denmark, such as the cable and satellite sectors. If, however, this is not the case, measures will be taken to counteract any competitive distortions. This factor is given a weight of 50% of the total assessment. The aim is to prevent a single operator from having the dominant position across several different television delivery platforms.

Fair competition in a free market is very important to the current government. It plans to adopt an Act on spectrum frequency allocation with the aim of promoting innovation and growth through the rapid access to radio frequencies. The Act will allow for spectrum trading and auctions in frequency allocation. It is expected that the Act will come into effect on 1 January 2009. However, it is not expected to have a major impact on the broadcasting sector.

Analogue switch-off

Denmark has set 31 October 2009 as its date for analogue switch-off which will take place on a national level. This means that the process in principle will be completed on a single day and affect all viewers simultaneously. Already, DKK 50 million (EURO 6.7 million) has been budgeted for an information campaign to be led by the Radio and Television Board.

The frequencies needed to launch the four new multiplexes on the DTT platform will only be available following analogue switch-off. Three of these multiplexes will be available as of 1 November 2009 while the fourth multiplex will only become available on 1 November 2010, when analogue switch-off has been completed in neighbouring countries.

Source: Natalie Mouyal, DigiTAG Project Office

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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 access to the full articles archive, please go to DigiTAG News

France - 32 candidates for DVB-H broadcast licenses

A total of 32 candidates have applied for DVB-H broadcast licenses by the 15 January deadline for the available 16 broadcast licenses. In addition, 3 licenses have already been reserved for the public service broadcaster France Télévisions.

Companies seeking licenses include TF1, M6, Lagardère Active, Canal+, Orange and Nextradio TV.

As a next step, the CSA will meet with candidates in April and intents to deliver the licenses in June-July.

Source: CSA website

Spain - Over 7.4 million DTT receivers sold

With over 7.4 million receivers sold, DTT penetration has now reached 26.7% of Spanish television households.

DTT penetration is highest in Madrid with 34.1% of television households accessing DTT services. It is followed by Cataluña with a penetration of 31.4%.

Of all the DTT receivers sold in December 2007, 52.8% were iDTVs.

Source: Rapid TV News

Norway - ASO to begin on 4 March

The region of Rogaland in the south-west is set to switch off its analogue television channels on 4 March at 11.30.

The region has 30,000 television households, of which 98% will be able to access DTT services by the analogue switch-off date.

Switch-off is being coordinated by NTV, the DTT license holder which is jointly owned by NRK, TV2 and Telenor.

Source: Broadband TV News

Italy - Mediaset to launch pay-DTT bouquet

Commercial broadcaster Mediaset is set to launch a new pay-DTT service on 19 January that will be named "Premium Gallery".

It is expected that Mediaset will offer a small bouquet of six television services priced at under EURO 10 per month. Services will likely include TV series, second-window movie rights, entertainment, documentaries, and kids programming.

Source: Rapid TV News

Switzerland - Swisscom to launch DVB-H in June

Swisscom Broadcasting has announced its plans to launch DVB-H services in June 2008, in time for the EURO 2008 Football Championship. Services will be available in the cities of Basel, Berne, Geneva and Zurich.

The DVB-H service is expected to be named "MoTV" and will offer viewers with access to 20 television programme services.

Pre-commercial services are likely to begin in February 2008.

Source: Broadband TV News

Austria - New service on DTT platform

The new national commercial broadcast service Puls 4 will launch on the DTT platform on 28 January at 18.00.

It will also be available on the cable, satellite and mobile television platforms.

The broadcast service is owned by ProSiebenSat.1 following its acquisition of the local Viennese broadcaster Puls TV last summer.

Source: Broadband TV News

Lithuania - DTT coverage to expand to 95% of the population

The leading telecom operator, TEO, has completed its acquisition of UAB Nacionaline Skaitmenine Televizija, the holder of two DTT broadcast licenses. UAB Nacionaline Skaitmenine Televizija has been spun off from UAB Mikrovisatos TV.

With this acquisition, TEO will be able to formally launch DTT services.

Already, TEO provides DTT services in the five largest cities, covering over 75% of the population and plans to expand coverage to 95% of the population by the end of the year.

Source: TEO press release

Portugal - New free-to-air service for DTT platform

As part of its strategy for digital switchover, the government has announced its plans to launch a new national television programme service. The new service, which will be free-to-air, will be available on the DTT platform.

The tender for the free-to-air service will take place 180 days after a separate tender for the operation of the DTT platform. However, a date has not yet been set when the tender for the operation of the DTT platform will take place.

Source: Reuters