DigiTAG

Web Letter

October 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.

Preparing for analogue switch-off in the USA

Analogue switch-off is set to take place on 17 February 2009 across the United States. On that single day, a total of 1,756 full-power broadcast stations will stop their analogue transmissions and provide only digital services (1). Already, as of April 2008, 91% of broadcasters were transmitting a digital signal, although only 68% of these broadcasters were using the frequency channel reserved for them after the completion of analogue switch-off and at the full power level.

While government officials are confident that broadcasters will not have difficulty in meeting their digital switchover targets, fears have mounted regarding viewer readiness.

Viewer preparation

The government estimates that approximately 15% of households depend on the terrestrial platform for their primary television viewing. Given the size of the US television market, this represents approximately 17 million households. In addition, many more households rely on the analogue terrestrial platform for their secondary television sets.

A recent survey conducted by the market research company Nielsen, has found that nearly 9.6 million households are completely unprepared for analogue switch-off. In addition, 12.6 million households have at least one analogue television set that has yet to be converted.

According to the survey, low-income and ethnic minority households are the least prepared. Thirteen percent of Hispanic households and 12.5% of African-American households are unprepared while households with a total annual income of $25,000 are five time more likely to be unprepared than households with a total annual income of over $75,000. The survey also showed that two cities in Texas, Houston and Dallas are the least prepared. Both of these cities have significant Hispanic populations.

Coupon programme

The Digital TV Transition and Public Safety Act of 2005 established a $1.5 billion fund to help ease the digital transition for viewers. The coupon program allows television households to apply for two $40 coupons each, to use towards the purchase of an analogue-to-digital converter box. However, these coupons must be used within 90 days of reception and cannot be re-issued. There are approximately 60 converter boxes available on the market, ranging in price from $40 - $90.

Coupons are available on a first-come, first serve basis and are available until funding runs out. However, because only 51% of issued coupons have been redeemed, the government agency responsible for the program, National Telecommunications and Information Administration (NTIA), estimates that it could find itself with a surplus. As a result, some members of Congress have proposed allowing households to reapply for coupons.

Critics of the government’s handling of the coupon program fear that the NTIA has not put in place specific plans to address the expected increase in demand for coupons as the analogue switch-off date approaches. They also fear that the last-minute demand for coupons may show that the program is underfunded.

Furthermore, the coupon program does not specifically target those that are in the most need. A report by the Government Accountability Office (GAO) has found that residents in areas the most likely to be affected by digital switchover are the least likely to redeem their coupons.

Because coupons can only be issued to households, individuals with analogue television sets living in prisons or nursing homes are not able to apply for coupons. Yet these individuals are the most likely to rely on analogue television. Since October, the NTIA has allowed family members or staff to apply for coupons on behalf of nursing home residents.

Trial in Wilmington

On 8 September, the city of Wilmington in North Carolina, with a population size of 100,000, completed digital switchover. It was selected by the communications regulator, Federal Communications Commission (FCC), to test the potential impact of digital switchover before undertaking the process on a national level.

The trial has been judged very successful given that very few households found themselves without television services. The FCC estimates that less than 1% of viewers were unaware of the switch-off. In the first week following the switch-off, the local call centre received 2,272 calls.

In some cases, viewers lost television services for technical reasons since the digital coverage area did not exactly correspond to the analogue coverage area. The FCC is proposing to allow broadcasters to use gap-fillers, or so-called distributed transmission systems (DTS), to expand their digital coverage, and solve this problem.

While almost all viewers were aware of the digital transition, some lacked technical information on how to prepare to receive digital television. The prevalence of reception issues, mostly due to antennas that either needed to be replaced or positioned in a different direction, has resulted in the development of public messages that focus more strongly on the technical challenges viewers face to receive television services.

After analogue switch-off

The FCC has already sold off the frequencies that will be released following the completion of analogue switch-off. A total of 1,090 licenses were sold in auctions in early 2008 and generated $19.6 billion of revenue for the government. The telecom operators, Verizon Wireless and AT&T, acquired 80% of these licenses.

Most recently, the FCC’s Office of Engineering Technology published a report supporting the use of so-called ‘white spaces’ by devices that can detect frequencies that appear to be unused through sensors and geo-location. White space frequencies between television services could be used for mobile broadband purposes. While the FCC is not expected to vote on the issue until 4 November, at the earliest, the National Association of Broadcasters has requested that the FCC hold a public consultation on the topic.

Endnote_1: There is currently no requirement for low-power stations (community TV) and analogue gap-fillers to convert to digital. However the government has set aside $65 million to help these stations upgrade to digital. Viewers have been warned that if they want to continue receiving these services they will need to purchase converter boxes that allow for analogue pass-through.

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

France - Allocation of the digital dividend

The government published its strategy for a digital future entitled France numérique 2012.

The report calls for the use of the frequencies 790-862 MHz for the provision of broadband services.

In addition, 11 multiplexes will be available for DVB-T services with a 95% population coverage while 2 multiplexes will provide DVB-H services to 70% of the population.

Source: France numérique 2012

Portugal - PT allocated pay-DTT license

The communications regulator Anacom has confirmed the decision of the review board to allocate the pay-DTT frequency license to Portugal Telecom (PT).

The only other candidate for the license, AirPlus TV, had earlier lodged a complaint with the initial findings of the review board.

As a result, PT will operate the five pay-DTT multiplexes (Muxes B-F) as well as the one free-to-air DTT multiplex (Mux A).

Source: Anacom

Belgium - ASO set for 3 November in Flanders

The Flemish-speaking community of Belgium has confirmed that analogue switch-off will take place on Monday, 3 November 2008.

An information campaign has been launched, including a website Wegmetsneeuwopjetv.be (down with snow on your TV).

It is estimated that 60,000 households rely on the terrestrial television platform.

Source: Government news portal

Italy - Airplus to enter pay-DTT market

Telecom Italia has agreed to sell its pay- per-view DTT services to Airplus TV, a Swedish pay-DTT service operator.

Airplus will create an Italian subsidiary for the Telecom Italia pay-per-view activities and continue to offer the same content as is currently available on the platform.

Telecom Italia will hold a 9% stake in the Airplus Italian subsidiary.

Source: Telecom Italia

United Kingdom - Consultation opened on using temporary frequencies for HD/DTT

The communications regulator OFCOM has opened a consultation on the use of temporary UHF frequencies to allow for the launch of HD/DTT services prior to the completion of analogue switch-off.

Currently, HD/DTT services will be launched as analogue switch-off takes place in a given region. While viewers in the Granada TV region will be able to access HD/DTT services by the end of 2009, viewers in London will need to wait until 2012.

However, by using temporarily assigned frequencies, it will be possible to launch a multiplex offering HD services ahead of the digital switchover schedule.

Source: OFCOM

France - HD/DTT launch officially set for 30 October

The official launch of HD/DTT services is expected to take place on 30 October at 15.30. The platform will include HD TF1, France 2 HD, Arte HD, Canal+ HD and M6 HD.

At launch, HD TF1, France 2 HD, and M6 HD will reach 40% of the population, increasing to 60% of the population by 31 May 2009. They will be broadcast from the multiplex R5.

Canal+ HD and Arte HD, broadcasting from multiplexes R3 and R4 respectively, will both reach 85% of the population.

Source: Broadband TV News

Hungary - Work underway to prepare for 1 December launch

The network operator Antenna Hungaria has announced that the free-to-air DTT platform, MinDig TV, will launch on 1 December.

Work to prepare for the launch has begun on the transmissions network.

This will allow for services to be made available in the regions covered by the transmitters located in Széchenyi Hill, Kabhegy and Szentes.

At the time of launch, DTT services will be available to 60% of the population.

Source: Antenna Hungaria