DigiTAG

Web Letter

July 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.

Allocation of the digital dividend in Sweden

Allocation of the digital dividend has been completed in Sweden. A minimum of 6 multiplexes in the UHF frequency bands and 1 multiplex in the VHF band will be available for broadcast services while the UHF Band V spectrum located above 790 MHz is planned to be auctioned and allocated for other services.

Sweden completed digital switchover in October 2007. Three analogue channels, SVT1, SVT2, and TV4 were switched off in a process that began in September 2005. As neighboring countries switch-off their analogue terrestrial platform, Sweden is prepared to benefit from its digital dividend.

The allocation of the digital dividend, based on a decision taken by the government at the end of last year with the agreement of broadcasters, fully complies with the application of the Geneva 2006 Agreement and the Radio Regulations agreed at the World Radio Conference in 2007. This decision is valid until March 2014, at which time further discussions may take place.

Initial broadcast position

Broadcasters had called for the full allocation of the UHF band until 2014 to allow for the migration of the DTT platform from the MPEG-2 to the MPEG-4 AVC compression format as well as the possible transition to DVB-T2.

Using the capacity available following analogue switch-off, broadcasters wanted to provide viewers with an appealing offer using the new compression format and thus encourage their migration. While SVT favoured the launch of HD services, some commercial broadcasters preferred offering more standard-definition television programme services. Once the migration to the new technologies would have been completed, around 2015, broadcasters believed that a re-allocation of the digital dividend would then be possible.

For broadcasters on the DTT platform, it remains vital that the DTT platform can continue to compete with the other television delivery platforms such as cable, satellite and IPTV. As these platforms increasingly offer HD services, it will be important for the DTT platform to do likewise, especially given the high sales of HD-ready displays into the Swedish market.

Current DTT platform

DTT services are currently available from 5 nationwide multiplexes that range in population coverage between 70% and 99.8%. While multiplexes 2 to 5 offer commercial services, multiplex 1 is reserved for the public service broadcaster SVT. Building out a sixth multiplex is underway and services will start later this year. All six multiplexes will eventually reach at least 98% of the population. A seventh multiplex, available to 27% of the population in the region of Stockholm, offers Finnish language television as well as high-definition services from SVT.

With the sixth national multiplex becoming available for DTT services, the broadcast regulator RTVV has licensed 10 television programme services using MPEG-4 AVC. The licenses for these services, as well as the services on multiplexes 2 to 5, are valid until March 2014. By introducing MPEG-4 AVC for new services, the RTVV is hoping to encourage the adoption of this format for all DTT services.

However, these new services may not offer a sufficiently compelling reason for viewers to migrate to the new format and, without a very high percentage of viewers, it will be difficult to justify a change in compression format for services on the other multiplexes. A decision on a possible migration for existing multiplexes will be taken in 2009. The RTVV will decide for the commercial services on Multiplexes 2-5 while the Parliament will decide for the public services on Multiplex 1.

Intervention by the European Commission

The licensing of new services on the DTT platform opens the possibility for new operators to launch services on the DTT platform and to compete with the existing pay-DTT service provider Boxer.

According to the European Commission, Boxer’s position as the sole provider of pay-DTT services had contravened the EU’s ‘competition directive’ for electronic communication markets. In October 2006, the Commission had decided to refer Sweden to the European Court of Justice for this breach of EU law. Following the Swedish decision to allow new service providers on the pay-DTT platform, however, the Commission has withdrawn its case.

With the possibility of different pay-DTT service providers, it will be a challenge to ensure that a single conditional-access card system is used. Furthermore, the competition between the different pay-DTT service providers can weaken the necessary commitment for a migration towards MPEG-4 AVC.

Co-existence between broadcast and telecom services

As a next step, the frequency regulator PTS will submit a report on frequency coordination to the government by the end of the year. This report will investigate interference levels between telecom and broadcast services to determine how such services can co-exist in nearby frequencies. Such a report is similar to the ITU’s mandate to study the impact of the use of frequencies 790-862 MHz by mobile applications. The results of the ITU studies will be presented at the next meeting of the World Radio Conference in 2011.

Because the government is awaiting the results of the PTS report, it will not be possible to launch telecom services in bands 790-862 MHz before 2009. Meanwhile, broadcasters will need to move transmissions out of frequencies above 790 MHz.

Consequences

The Geneva 2006 Agreement allocated 7 DVB-T ‘layers’ in the UHF band and 1 DVB-T ‘layer’ in the UHF band. Considering that the 3 existing analogue channels could fit into half of one DVB-T multiplex, Sweden has a digital dividend of 6.5 multiplexes in the UHF band according the definition established by the European Commission.

Currently, 6 multiplexes have been allocated for broadcast services and it is expected that the 1 multiplex available in the VHF band will be allocated for HD/DTT services. Broadcasters can feel relatively satisfied with such an allocation.

However, it is likely that broadcasters will continue to face further pressure. The government may expect further frequencies to be released by means of the migration towards MPEG-4 AVC and/or DVB-T2. This will be difficult to carry through without viewers being offered sufficiently appealing content to encourage such a migration. The telecom industry can also be expected to continue lobbying for access to more frequencies, including those located below 790 MHz.

Sweden has made a constructive and forward looking spectrum decision leaving room for both broadcasters and telecom operators to develop their respective businesses. However, it may yet be too early to determine the final balance between public interest, media pluralism, availability of appealing content, competition issues and the telecom industry’s proposals to use spectrum for mobile applications.

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

Italy - 54% DTV penetration

The communications regulator AgCom has published its annual report which states that 54.3% of households receive digital television services.

In addition, half of all households could be digital-only within the next two years. Already, analogue switch-off has begun in Sardinia and Val d'Aoste.

AgCom is expected to soon issue licenses for new television programme services on the DTT platform. It has received 25 bids from 18 broadcasters.

Source: advanced-television.com

Spain - Nearly 11 million DTT receivers sold

In the first five months of the year, 2.7 million DTT receivers were sold, representing 24.7% of all DTT receivers sold since the launch of services.

With nearly 11 million DTT receivers in home, penetration has reached 37%. In addition, the DTT platform has a viewing audience of 14.9%.

However, sales of analogue television sets continue with 62,000 units sold thus far in 2008.

Source: Rapid TV News

Norway - HD/DTT services for the Olympics

Public service broadcaster NRK plans to provide coverage of the forthcoming Olympic Games in high-definition.

The HD services will be available on NRK1 and NRK2 which are on multiplex 1.

The DTT platform used the MPEG-4 AVC compression format and DTT receivers can decode both HD and SD services.

HD services will begin on 8 August, in time for the opening ceremony.

Source: Broadband TV News

United Kingdom - 9.6 million DTT households

The latest figures published by Ofcom show that 87.1% of television households access digital TV services on at least one TV set at the end of March 2008.

In the first quarter of 2008, over 3 million DTT receivers were sold, a 55% increase in sales compared the same period last year. Integrated digital TVs (iDTVs) accounted for approximately 1.9 million receivers.

Ofcom estimates that there are over 9.6 million households that rely on the DTT platform for their primary television reception.

The number of TV sets relying on the analogue terrestrial platform decreased from around 44% in Q1 2007 to 32% in Q1 2008.

Source: OFCOM website

United States - More government funding for DSO

Congress has approved legislation allowing the National Telecommunications and Information Administration to spend previously allocated funds on digital switchover educational activities.

Information will target residents of rural and remote areas, the elderly and minority groups.

The proposed legislation also enables low-power TV stations to receive funding to upgrade their equipment from analog to digital.

In addition, an NAB sponsored survey conducted between 29 March and 13 May with 5,535 terrestrially dependent households showed that 64% have already taken steps to prepare for analogue switch-off on 17 February 2009.

Source: Mediaweek

Portugal - Airplus challenges decision on pay-DTT license allocation

Airplus TV has confirmed that it will appeal the preliminary decision to award the pay-DTT license to Portugal Telecom (PT).

The independent commission appointed by the regulator Anancom had favoured the bid of PT over that of Airplus TV.

Airplus TV claims that the commission did not have the necessary expertise to evaluate the candidates.

PT has already been awarded the license to operate free-to-air DTT services on Multiplex A. It had been the only candidate for the license.

Source: advanced-television.com