The 700 MHz Band Darko Ratkaj European Broadcasting Union The impact of UHF spectrum reallocation on TV markets in Europe Poznań Media Expo Conference 2014 TV Day - The future of terrestrial television in Poland 09 April 2014
Mar 31, 2015
The 700 MHz Band
Darko Ratkaj
European Broadcasting Union
The impact of UHF spectrum reallocation on TV markets in Europe
Poznań Media Expo Conference 2014TV Day - The future of terrestrial television in Poland
09 April 2014
CONSUMER DEMAND FOR TELEVISION
2.7 mil. households (8 mil. viewers) in Polanduse DTT to access TV services.
Television is the medium used most by Europeans:87% say they watch it every day or almost every day and 97% at least once a week.
Standard Eurobarometer 80, November 2013
In 2012 every person in Poland watched on average 4 hours and 3 minutes of linear TV a day.
Evolution of linear and non-linear TV viewing Average in the EU ‘Big 5’
Source: IHS – ScreenDigest: Cross-platform Television Viewing Time FY 2012
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20160
50
100
150
200
250
300
218 217 217 219 219 226 230 233 232 232 231 230
0.5 1.0 2.2 4.1 6.8 10.2 13.6 17.5 22.0 25.5 29.1 32.5
Linear average Non-linear average
Min
ute
s p
er
pe
rso
n p
er
da
y
Linear TV
Non-linear(OTT, HBB, VoD)
Terrestrial Cable Satellite Broadband0
10
20
30
40
50
60
46
35
21
10
21
32
57
2
EU Poland
HOW IS CONSUMER DEMAND FOR TV SATISFIED?
TV reception by households
Sources: EU - Eurobarometer 396, Aug. 2013Poland – IHS, ScreenDigest
Note: Adds to more than 100% as households may use more than one platform.
% HH
These benefits cannot easily be replicated on other platforms.
• Free-to-air, live viewing
• Near-universal coverage (in many countries >98% of the population)
• Primary TV platform for 230 million viewers in the EU (46% population)
• More than 2000 TV channels in the EU (national, regional, and local)
• Efficient way to serve large audiences, affordable
• Key platform for Public Service Media
• Coexistence of Public Service and commercial TV (both FTA and pay-TV)
• Synergies with other platforms (HbbTV, catch-up TV, second screen)
• Ensures market competition and consumer choice
• Resilient, essential infrastructure in emergency situations
THE CURRENT ROLE OF DTT
EBU VIEWS ON TERRESTRIAL BROADCASTING
EBU – Recommendation R 131
Terrestrial Broadcastingin Europe
tech.ebu.ch
Apr/2
009
Jun/
2009
Aug/2
009
Oct/20
09
Dec/2
009
Feb/2
010
Apr/2
010
Jun/
2010
Aug/2
010
Oct/20
10
Dec/2
010
Feb/2
011
Apr/2
011
Jun/
2011
Aug/2
011
Oct/20
11
Dec/2
011
Feb/2
012
Apr/2
012
Jun/
2012
Aug/2
012
Oct/20
12
Dec/2
012
Feb/2
013
Apr/2
013
Jun/
2013
Aug/2
013
Oct/20
13
Dec/2
013
0
500
1000
1500
2000
2500
Channels on DTT networks across the EU area
No
. d
igit
al
TV
ch
an
ne
lsMARKET DEMAND FOR DTT
Source: Mavise TV database
22 channels in Poland
Why is the 700 MHz important?
ON SPECTRUM MANAGEMENT
• Spectrum allocations are a result of international negotiations(e.g. within the ITU and the CEPT)• Frequency bands are divided amongst different radio communication
services (e.g. broadcasting, mobile, aeronautical, satellite, ...)
• The actual use of the spectrum is decided nationally• It must be in accordance with the allocations
in a given frequency band• In some cases bilateral coordination is required
before the frequencies can be assigned to users
• Harmonisation of the spectrum use is beneficial• easier coordination and cross-border operation• easier interference management• economies of scale• ...
Two-step process
THE UHF BAND ALLOCATIONS
470 MHz 862 MHz
21 30 40 50 60 69
Broadcasting2006
470 MHz 862 MHz
21 30 40 50 60 69
Broadcasting
790 MHz
61
BC + Mobile2007
470 MHz 862 MHz
21 30 40 50 60 69
Broadcasting
790 MHz
61
BC + Mobile
48
694 MHz
BC + Mobile2012
470 MHz 862 MHz
21 30 40 50 60 69
790 MHz
61
BC + MobileBC + Mobile2015 ? 694 MHz
48
XX
X
500, 600 MHz 700 MHz 800 MHz
THE IMPACT OF THE LOSS OF THE 700 MHZ BAND ON TERRESTRIAL BROADCASTINGDirect impact (short to medium term):
• Transitional issues to free the band from DTT• costs for broadcasters and the viewers• risk of disruption of services
• Loss of 30% of the bandwidth capacity(43% if the 800 MHz band is taken into account ) • reduced platform capacity• reduced scope for future development
None of this is in the interest
of the European audiovisual industry or the consumers!
Not the same in all countries!
Indirect impact (long term):
• Weakened DTT platform; less competition
• Negative signal about the future of DTT• lack of certainty for future investments• no innovation; risk of decline, end of DTT• loss of the only free-to-air platform
with potentially universal reach
How important is DTT in your country?•penetration – how many households are receiving terrestrially•market potential – how much content is needed for a viable DTT
Public value of DTT•is there awareness amongst decision makers•how is the pubic value protected and promoted
National audiovisual media policy•is there a commitment to Public Service Broadcasting and Free-to-Air•which infrastructure will support the public policy objectives•what is the development roadmap for this infrastructure
Are there any alternatives to DTT•can they deliver the same benefits•when will they be available•at what costs•how to migrate the audiences
QUESTIONS FOR THE REGULATORS
These questions must be raised and
answered before any decisions on
the radio spectrum are taken!
RECOMMENDED APPROACH TO DECIDE ON THE 700 MHz BAND
• De-couple the decision on the actual use of the 700 MHz band in Poland from the ITU process leading to mobile allocation
• Scrutinise the mobile spectrum requirements before considering any additional spectrum allocation• Verify the assumptions about future demand• How much traffic growth is economically viable?• The use of the already allocated spectrum
• Cost / benefit analysis to be done before taking a decision• Overall social and economic impact of the change• Incremental benefits of using the 700 MHz band for mobile services?
• Take the necessary time to prepare the decision, there is no urgency• Mobile industry is busy deploying networks in the 800 MHz band• Lack of demonstrated market demand for more UHF spectrum• There are number of ways to increase mobile network capacity without
additional UHF spectrum
IN THE EVENT OF RE-ALLOCATIONOF THE 700 MHz BAND TO MOBILE
Ensure ...
• Planned and well managed transition process
• Realistic time frame for freeing the band from DTT transmissions
• Recovery of the costs incurred by broadcasters and the viewers
• Replacement capacity for the affected DTT services
• Replacement capacity for the affected PMSE services(wireless microphones currently operating in the band)
• Protection of DTT and PMSE services below 700 MHz from the mobile interference
• Long-term availability of the remaining part of the UHF spectrumfor broadcasting services to facilitate future development
• Continuation of free-to-air TV services
• Access to the new mobile broadband platform for public service media
Additional information
Costs
Number of concurrent users
Broadcast platforms
The Internet
Costs of distribution of media services
Capacityper user
Number ofconcurrent users
Minimum capacityrequired for
a given service
progressive QoS degradation
Broadcast platforms
The Internet
Capacity available to individual users
Data volumes delivered via DTT compared to the Internet.
PB/month Cisco VNI 2012: Broadband traffic forecast in the EU
2011 2012 2013 2014 2015 2016 20170
5000
10000
15000
20000
25000
30000
Fixed broadband Mobile broadband
The total amount of data delivered via DTT networksin 2012
http://www.marketingcharts.com/wp/television/how-tv-and-online-video-consumption-stack-up-36594/
How much video content is delivered over broadcast networks compared to the Internet?
http://www.marketingcharts.com/wp/television/are-young-people-watching-less-tv-24817/
http://www.marketingcharts.com/wp/television/how-much-tv-is-being-time-shifted-26229/
http://www.marketingcharts.com/wp/television/mobile-viewing-remains-a-fraction-of-total-tv-hours-30058/
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