DigiTAG

Web Letter

March 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.

DTT re-launch in Portugal

The DTT process has been re-launched in Portugal. The communications regulator ANACOM and the Government have respectively invited candidates to tender for a FTA and a Pay TV DTT operation license by 23 April. The process is expected to be concluded during the summer, which will allow for the launch of DTT services by the beginning of 2009. Viewers will be able to access new services, including more standard-definition services, HDTV and interactive services.

This is the second time that Portugal has launched the DTT process. In 2001, ANACOM allocated a DTT frequency license to Plataforma de Televisão Digital Portuguesa (PTDP), a consortium comprising the broadcasters RTP and SIC and the telecom operator SGC. However, because PTDP failed to launch DTT services within the required framework, the government revoked their license in 2003. Since then, DTT services have been put on hold as new technologies and business models were studied.

As part of the re-launched DTT process, a new business model will be adopted. Now available, and for a fifteen year period, are 6 frequency usage rights, allowing for 6 multiplexes (1 for FTA and 5 for Pay TV), all expected to use the MPEG-4 AVC compression format. The Pay TV tender will also license the distribution operator responsible for the selection and aggregation of programming services.

Obligations for MUX A

The first tender will grant the right to operate one DTT multiplex, MUX A, which will provide viewers access to free-to-air television services. This multiplex will broadcast the four television programme services currently on the analogue terrestrial platform, the regional services for the Azores and Madeira, and a fifth television programme service, in SDTV, and with a national scope, yet to be licensed. Any additional capacity that is available might be used to transmit the SDTV services in HDTV format.

The operation should provide national DTT coverage of both the mainland and the autonomous regions. Population coverage of, at least, 99% is expected to be reached within three years, although it will be possible for the service provider to use other television delivery platforms, such as satellite, to ensure that the full coverage requirement is met. However, a minimum DTT coverage of 85% of the population is expected.

ANACOM has detailed the criteria that will be used in the selection of the MUX A frequency usage rights holder. Most important will be the contribution to the “rapid and massive spread of DTT” as well as the feasibility of the technical plan. Other important factors include the adoption of technically innovative solutions, such as interactive services and the viability of the proposed economic plan.

Obligations for MUX B-F

The second tender, launched by the Government, but with the involvement of ANACOM and the media regulator ERC, will grant the right to operate five DTT multiplexes and provide pay-DTT services. Two of these multiplexes, MUX B and MUX C, will have a national coverage of at least 75% of the population, while the three remaining multiplexes, MUX D, MUX E and MUX F, will provide partial coverage of the population of the mainland.

In allocating these frequency usage rights and the license to provide pay TV services, several criteria have been established including the contribution to the widespread uptake of DTT services and to the production of European and Portuguese content. Similar to the evaluation process for MUX A, a formula will be used to assess candidates and include such criteria such as service offering, business plan and technologies used.

Most importantly, it is clearly stated that this DTT operator cannot be an entity that already holds a share equal to or exceeding 50% of the subscription television market or to an entity which has a relationship of dominance or significant influence with the referred entity. This is an implicit reference to TV Cabo, the leading cable and satellite provider in Portugal.

Current television landscape

In Portugal, the terrestrial platform is the most important television platform potentially used by over 65% of the households. It provides viewers with access to four free-to-air television services, RTP1, RTP2, SIC and TVI, plus regional services in Azores and Madeira.

The pay television platform is dominated by TV Cabo which is the leading provider of cable services and one of two satellite (DTH) providers. In some parts of the country, TV Cabo is the sole provider of cable services. Cable services are used by approximately 27% of households while satellite services are used by nearly 9% of households.

TV Cabo is part of ZON Multimédia which was spun-off from the Portugal Telecom group (PT) in November 2007. In January 2008, the ZON Multimédia brand replaced PT Multimédia. It is now Portugal's second-largest telecommunications firm after PT, providing cable, Internet and telephone services as well as producing premium content for TV Cabo. It was announced that ZON Multimédia can participate in the pay-DTT platform, although it can only do so as a minority stakeholder in a consortium.

The separation between the broadcast network, operated by PT, and the leading pay television provider, TV Cabo allows for greater competition in the television market by preventing the domination by one single media group with exclusive access to the broadcast network, content as well as other pay television platforms.

Analogue switch-off

Despite the late launch of DTT services, the government remains committed to following the European Commission’s recommendation to switch-off the analogue terrestrial television platform by 2012.

Recognizing that completing analogue switch-off in a short time frame may be difficult, ANACOM has stressed the importance of ensuring a successful uptake of services. It has called on the DTT multiplex operators to contribute to the “rapid and massive spread of DTT” and, in the case of the operator of MUX A, for the promotion of DTT services.

The government further recognized that the DTT platform operator must provide services with sufficient appeal to viewers so that they will voluntarily migrate away from analogue towards the DTT platform. The government has also rejected calls to subsidize DTT receivers for viewers.

With the upcoming launch of DTT services in Portugal, almost all countries in Western Europe will have begun the digital switchover process.

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

United Kingdom - 9.7 million DTT products sold in 2007

According to the latest figures published by GfK, 9.7 million Freeview branded products were sold in 2007. This includes both DTT receivers as well as Freeview Playback PVRs.

Source: Broadband TV News

Spain - 8.8 million DTT receivers sold since March 2003

According to the latest figures published by Impulsa TDT, 29.2% of households access DTT services. DTT penetration is highest in Madrid, where DTT services are accessed by over 40% of households.

Other regions with a high DTT penetration include the Canary Islands (38.5%), Catalonia(33.9%) and Murcia (29.9%).

Source: Rapid TV News

Germany - 7.8 million DTT receivers sold

According to the Deutsche TV-Platform, 7.8 million DTT receivers have been sold since the launch of DTT services in November 2002.

Source: Broadband TV News

New Zealand - DTT launch on 2 April

The free-to-air DTT platform, Freeview HD, will launch on 2 April. It aims to be available in over 50,000 homes by June 2009.

At the time of launch, services will be available to 75% of the population. Viewers will be able to access 11 television and 2 radio programme services.

It will be possible for the DTT platform to offer HD services and three services, TV One, TV2 and TV3 have expressed an interest in doing so.

Source: Rapid TV News

EC approves DVB-H in list of official standards

The European Commission (EC) has decided to add the DVB-H standard to the official EU List of Standards. Member States will be required to encourage the use of DVB-H.

As a next step, the EC will publish its guidance on the authorisation regimes and monitor the progress made towards the constitution of the DVB-H patent pool.

Source: EC press release

France - DTT tuner mandation begins

All television sets sold in France must include an MPEG-2 DTT tuner as of 5 March 2008. The law "Télévision du Futur" set the requirement for the MPEG-2 tuner mandation.

By the end of the year, all HD-ready television sets must include an MPEG-4 AVC HD tuner. The French specification for HD services is expected to be announced this summer and will include a new HD logo.

Source: Broadband TV News

Italy - Mediaset reports strong results for pay-per-view service

In its 2007 results, commercial broadcaster Mediaset noted the excellent performance of its pay-per-view service Mediaset Premium. At the end of the year, Mediaset had sold 2,067,000 rechargeable cards for the service.

In addition, a further 353,000 cards were sold in the two-month period between 1 January and 5 March.

Source: Mediaset press release

Czech Republic - ASO delayed until 11 November 2011

The Czech Telecommunications Office, CTU, has issued its digital switchover plan (TTP). The new plan delays analogue switch-off by one year to 11 November 2011.

Digital switchover is expected to take place region-by-region, with a short simulcast period.

Switchover was completed in the border region of Domazlice last August and is set to be completed in Usti nad Labern this summer.

Source: Broadband TV News

France - Arte to launch in HD on DTT platform

The Franco-German cultural service Arte is set to launch in HD on the French free-to-air DTT platform on 30 October.

The French HD/DTT platform is expected to comprise 8 television programme services, some which will be free-to-air.

Already, HD/DTT licenses have been allocated to France Télévisions, TF1 and M6 for free-to-air services while Canal+ is expected to receive a license for pay-HD services.