The impact of the UHF spectrum reallocation on TV markets in Europe

Report
Poznań Media Expo Conference 2014
TV Day - The future of terrestrial television in Poland
The 700 MHz Band
The impact of UHF spectrum reallocation
on TV markets in Europe
Darko Ratkaj
European Broadcasting Union
09 April 2014
CONSUMER DEMAND FOR TELEVISION
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.
2.7 mil. households (8 mil. viewers) in Poland
use DTT to access TV services.
Evolution of linear and non-linear TV viewing
Minutes per person per day
Average in the EU ‘Big 5’
Linear average
300
Non-linear average
250
0.5
1.0
2.2
4.1
6.8
10.2
Non-linear
(OTT, HBB, VoD)
13.6
17.5
22.0
25.5
29.1
32.5
233
232
232
231
230
2012
2013
2014
2015
2016
200
150
100
218
217
217
219
219
226
230
2005
2006
2007
2008
2009
2010
2011
50
0
Source: IHS – ScreenDigest: Cross-platform Television Viewing Time FY 2012
Linear
TV
HOW IS CONSUMER DEMAND FOR TV SATISFIED?
60
57
EU
% HH
50
Poland
TV reception by households
Sources:
EU - Eurobarometer 396, Aug. 2013
Poland – IHS, ScreenDigest
46
40
35
32
Note: Adds to more than 100%
as households may use
more than one platform.
30
21
21
20
10
10
2
0
Terrestrial
Cable
Satellite
Broadband
THE CURRENT ROLE OF DTT
•
•
•
•
•
•
•
•
•
•
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
These benefits cannot easily be replicated on other platforms.
EBU VIEWS ON TERRESTRIAL BROADCASTING
EBU – Recommendation R 131
Terrestrial Broadcasting
in Europe
tech.ebu.ch
Dec/2013
Oct/2013
Aug/2013
Jun/2013
Apr/2013
Feb/2013
Dec/2012
Oct/2012
Aug/2012
Jun/2012
Apr/2012
Feb/2012
Dec/2011
Oct/2011
Aug/2011
Jun/2011
Apr/2011
Feb/2011
Dec/2010
Oct/2010
Aug/2010
Jun/2010
Apr/2010
Feb/2010
Dec/2009
Oct/2009
Aug/2009
Jun/2009
Apr/2009
No. digital TV channels
MARKET DEMAND FOR DTT
Channels on DTT networks across the EU area
2500
2000
1500
1000
22 channels in Poland
500
Source: Mavise TV database
0
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
Broadcasting
2006
21
30
40
50
60
69
862 MHz
470 MHz
700 MHz
BC + Mobile
Broadcasting
2007
30
40
50
60 61
470 MHz
Broadcasting
2012
21
30
BC + Mobile
40
470 MHz
48
50
BC + Mobile
2015
21
470 MHz
30
40
48
BC + Mobile
60 61
694 MHz
50
694 MHz
862 MHz
X
790 MHz
69
790 MHz
69
862 MHz
X
21
800 MHz
X
500, 600 MHz
BC + Mobile
60 61
790 MHz
69
862 MHz
THE IMPACT OF THE LOSS OF THE 700 MHZ
BAND ON TERRESTRIAL BROADCASTING
Direct 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!
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
Not the same
in all countries!
QUESTIONS FOR THE REGULATORS
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
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-ALLOCATION
OF 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 spectrum
for broadcasting services to facilitate future development
• Continuation of free-to-air TV services
• Access to the new mobile broadband platform for public service media
THANK YOU
FOR LISTENING TO ME!
QUESTIONS?
Darko Ratkaj
[email protected]
Additional information
Costs of distribution of media services
Costs
Broadcast platforms
Number of
concurrent users
Capacity available to individual users
Capacity
per user
Minimum capacity
required for
a given service
Broadcast platforms
progressive QoS degradation
Number of
concurrent users
Data volumes delivered via DTT compared to the Internet.
Cisco VNI 2012: Broadband traffic forecast in the EU
PB/month
30000
25000
The total amount of data
delivered via DTT networks
in 2012
20000
15000
10000
5000
0
2011
2012
2013
Fixed broadband
2014
2015
Mobile broadband
2016
2017
How much video content is delivered over
broadcast networks compared to the Internet?
http://www.marketingcharts.com/wp/television/how-tv-and-online-video-consumption-stack-up-36594/
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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