DigiTAG

Web Letter

January 2010

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.

Allocating broadcast spectrum to wireless operators: the debate in the United States

At the end of last year, the Federal Communications Commission (FCC) opened a consultation on the National Broadband Plan (Public Notice #26). The consultation sought opinions on the use of spectrum by broadcasters and the possibility of re-allocating broadcast spectrum for wireless broadband use.

As can be expected, the National Association of Broadcasters (NAB), together with its engineering arm, the Association for Maximum Services Television (MSTV), submitted a response defending broadcasters' current use of spectrum for the provision of terrestrial television services.

Terrestrial television in the US

In the United States, analogue switch-off was completed on 12 June 2009. Since then, 108 MHz have been licensed to wireless broadband providers (from 698-806 MHz) through an auction that raised a total of $19.6 billion through the sale of 1,090 licenses, of which 80% were acquired by the leading telecom operators Verizon Wireless and AT&T.

As a result of digital switchover, broadcasters on the terrestrial television platform can offer HD services as well as multicast services and are soon expected to launch mobile television services. While it is estimated that only 10-15% of viewers rely on the terrestrial platform for their primary television services, the terrestrial television signal is used by cable and satellite operators to provide certain television services, especially the local ones, to their subscribers.[1]

Key NAB/MSTV arguments

In their response to the FCC’s consultation, the NAB/MSTV arguments focus on four key areas: the benefits of broadcast services, the cost of digital switchover to viewers, refuting some of the claims made by wireless broadband industry, and scoping future broadcast services.

Benefits of broadcast services
According to the NAB/MSTV response, the services provided by local television broadcasters are essential to all viewers, whether they rely on the terrestrial television platform or subscribe to cable or satellite services. Viewers benefit from free programming, universal services, local journalism, emergency information and alerts, the promotion of local organizations and businesses, and such social benefits as community building and a forum for civic participation. In addition, many of these benefits cannot be replicated by other service providers nor can they be fully valued using traditional economic assessments.

The NAB/MSTV response notes the importance of live television viewing in comparison with play-back or online viewing. Citing figures from Nielson for the third quarter of 2009, the average viewer watched 31 hours of live television per week, 32 minutes of which were in playback mode using a DVR and 22 minutes were online. As the response mentions, broadcasting technology, which uses a point-to-multipoint system, is a more efficient means for distributing popular video to viewers in comparison to point-to-point broadband systems.[2]

Cost of digital switchover to viewers
The NAB/MSTV document reminds the FCC that American viewers were told by the government that digital switchover would bring benefits such as free programming, HDTV, and additional multicast services. It urges the FCC to remain faithful to such promises especially given the high investment made by viewers to purchase new digital equipment. Since 2003, consumers have spent $109.8 billion on HDTV sets.  

Taking away spectrum from broadcasters could reduce service offerings and undermine the ability of local broadcasters to invest in news operations and other services. Moving broadcast stations to other sites could also cause serious disruptions which NAB and MSTV predict would be worse than the disruptions caused by digital switchover.
 
Refuting the claims made by the wireless broadband industry
According to the NAB/MSTV response, it is not correct to assume that the allocation of additional spectrum to the wireless broadband industry will lead to greater broadband penetration, spectrum efficiency, and public benefits. Using the European experience as an example, the response notes that in some countries higher broadband penetration rates have been achieved yet less spectrum has been allocated for wireless broadband services.

NAB and MSTV call on the FCC to consider how wireless broadband providers can use existing spectrum resources more efficiently. They note that 749 MHz of allocated spectrum between 225 MHz and 3.7 GHz has not been deployed. They also call on the FCC to undertake a comprehensive inventory of present and future spectrum usage by all parties and to assess the relative costs and benefits of re-allocating spectrum from one type of usage to another.

The NAB/MSTV response notes that the wireless broadband industry has claimed that the demand for mobile video will increase. However, such demands may best be met using digital broadcasting technology since it is more spectrum efficient (point-to-multipoint). Other non-spectrum based broadband delivery mechanisms such as landlines, cable, and fiber should also be considered in developing a national broadband strategy as well as their impact on the anticipated demand for wireless broadband services.

Scoping future broadcast services
The NAB/MSTV response clearly notes that broadcasting and wireless broadband should both be viewed as essential and complementary parts of the communications ecosystem and that they should not be viewed as 'either/or' propositions.

The imminent roll-out of mobile broadcasting television can help to meet viewer demand for mobile video. Because the demand for mobile video focuses on the content offered by broadcasters, the broadcasting industry believes that it should play a leading role in meeting the demand for mobile video and thereby reduce capacity demands on wireless broadband systems.

Further information
The full NAB/MSTV response as well as the additional Framework for Discussion can be found on the NAB website.

Situation in Europe

In Europe, countries are considering the allocation of frequencies in the VHF/UHF bands that will become available following the completion of digital switchover. Already, 10 countries have announced plans to allocate the frequencies 790-862 MHz to wireless broadband services while several other countries have opened consultations on the topic.

In a communications issued last October, the European Commission recommended that its Member-States set aside the frequencies from 790-862 MHz to support new wireless services using harmonized technical conditions.

DigiTAG position paper

Recently, DigiTAG published a position paper on the digital dividend and the future of the digital terrestrial television (DTT) platform.

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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