Digital Terrestrial Television (DTT) is a Great European Success Story. Challenges for DTT. The European Spectrum Discussion

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1 Digital Terrestrial Television (DTT) is a Great European Success Story Challenges for DTT The European Spectrum Discussion ITU-D and National Media and Infocommunications Authority Seminar Budapest, January 2014 Lars Backlund, Secretary General, Broadcast Networks Europe (BNE) Represents Terrestrial Network Operators in 22 countries BNE ITU-D Budapest /LB, Page 1 {Format 16:10}

2 BNE - Members operating in 22 countries A trade organisation for Terrestrial Broadcast Network Operators for Radio and TV in Europe based in Brussels Long term opportunities for terrestrial broadcasting Current issues: Spectrum 700 MHz, UHF-band Interference, Co-existence New Services BNE ITU-D Budapest /LB, Page 2 {Format 16:10}

3 BNE 16 members, 22 countries Spain UK Czech Republic Greece Finland Serbia Italy Norway, Belgium Croatia Austria Switzerland Romania Italy Ireland France, Germany, Estonia, Sweden, Hungary, Poland, Monaco Denmark BNE ITU-D Budapest /LB, Page 3 {Format 16:10}

4 Households receiving TV from terrestrial networks >75% 50-75% 25-50% < 25% Terrestrials - approx: >100 million households >250 million people 45-50% of Europeans Based on Eurobarometer 396, 2013 Data not collected BNE ITU-D Budapest /LB, Page 4 {Format 16:10}

5 TV Reception, EU28 Households Terrestrial; 46% Cable; 31% Satellite; 23% Broadband; 10% Terrestrials - approx: >100 million households >250 million people 45-50% of Europeans 2000 TV Channels Data from Eurobarometer 396, 2013 and Mavise. Adds to more than 100%. Households may use more than one platform BNE ITU-D Budapest /LB, Page 5 {Format 16:10}

6 DTT is a Great European Success Story DTT is now launched in nearly all EU member states. DTT networks now serves some 2000 TV channels, about 50% of European households with 250 million viewers, each spending some 4 hours watching linear TV every day. In addition, secondary TVs rely on DTT. European consumers have embraced DTT and are investing in new receiving equipment. More than 1 billion TV receivers with integrated DTT tuners are now in use around the world. Low cost for media delivery. Network cost is typically between per household per month for up to 60 channels distributed 24/7. Per channel distribution cost can be as low as 1c per household per month. Very easy access for consumers and no cost at point of consumption of a wide offering of free-to-air content. DTT is a key pillar for European content creation BNE ITU-D Budapest /LB, Page 6 {Format 16:10}

7 DTT and the Importance of Spectrum DTT depends on UHF spectrum for provision. Consumers and the Broadcasting Industry have made substantial efforts and investments in the Digital Switchover and in making the 800 MHz band available for other services than TV. Currently available spectrum for DTT is fully utilized in many countries. Migration to more efficient technologies for DTT is underway to meet demand for additional and higher higher bandwidth services, e.g. HD. The 700 MHz band represents 30% of available spectrum for DTT. Any changed use would imply severe constraints for service delivery, prevent innovation and technology migration, require a long time to re-plan current usage and demand very significant investments for Consumers and the Broadcast Industry. The emerging discussion on the long term use of the whole UHF TV spectrum is a threat and may lead to a regulatory induced failure of DTT. This is not in the interest of the European Consumer BNE ITU-D Budapest /LB, Page 7 {Format 16:10}

8 BNE ITU-D Budapest /LB, Page 8 {Format 16:10} DAE

9 It s about telecom policy, money, job creation, BNP growth, and who will use radio spectrum for what BNE ITU-D Budapest /LB, Page 9 {Format 16:10}

10 Stakeholders BNE ITU-D Budapest /LB, Page 10 {Format 16:10}

11 Wireless Broadband and DTT Spectrum, RSPG Opinion Wireless Broadband (WBB) Currently Available 1701,5 MHz Mobile 990 MHz Satellite 172 MHz WiFi 538,5 MHz Near term +140 MHz Mobile 140 MHz Satellite WiFi - Medium term (>2015) +886 MHz Mobile 566 MHz Satellite - WiFi 320 MHz [Very long term??] [+224 MHz] Mobile 224 MHz Satellite WiFi - Potentially 2951,5 MHz Mobile 1920,5 MHz Satellite 173 MHz WiFi 858,5 MHz WBB DTT MHz 392 MHz *RSPG: Radio Spectrum Policy Group 1 701, Short term 800 MHz band 1701,5 MHz 1841,5 MHz 2727,5 MHz Medium term Possibly > 2015 Source: RSPG Opinion, June 2013 Possibly Very Long Term 2951,5 MHz Amount of Spectrum in MHz 224 MHz (5-600 MHz band) Heavily used by DTT 96 MHz (700 MHz band) Heavily used by DTT To be discussed on WRC15 72 MHz Digital Dividend (800 MHz band) Released from analogue TV to WBB. Short term -72 MHz (800 MHz) Medium term -96 MHz (700 MHz) Very long term (??) -224 MHz ( Everything?! ) Digital Terrestrial Television (DTT) BNE ITU-D Budapest /LB, Page 11 {Format 16:10}

12 Data traffic generated by ONE DTT Standard Definition TV Channel Data traffic comparison DTT networks vs. Cisco Mobile Traffic Forecast Data Traffic Consumed 2013 from DTT Networks for ONE standard Definition Television channel across EU28. 16,2 EB/month 18 Global Mobile Data Traffic Forecast ExaByte/month (1E+18) By region Cisco VNI Mobile 100 million households 4 hours per day. (A conservative estimate) BNE ITU-D Budapest /LB, Page 12 {Format 16:10}

13 Data traffic on Fixed and WiFi Fixed and WiFi will carry 90% of data traffic BNE ITU-D Budapest /LB, Page 13 {Format 16:10}

14 GSM Base stations in central Amsterdam Source: BNE ITU-D Budapest /LB, Page 14 {Format 16:10}

15 Actually recorded WiFi networks along streets in central Amsterdam Source: BNE ITU-D Budapest /LB, Page 15 {Format 16:10}

16 The DTT Challenge 100 million households 2000 TV channels 300 (?) million receivers DVB-T1 DVB-T2 MPEG 2 MPEG 4 SD TV HD TV UHF VHF Everything to HDTV! Everything to DVB-T2! Everything to MPEG 4 / HEVC! Everything in less spectrum? Uncertain timing! Uncertain regulatory framework! Manage cross border coordination! Mange to justify network investments! Manage to retain customer base!! Upgrade of consumer equipment! Introduce new services OTT, HbbTV BNE ITU-D Budapest /LB, Page 16 {Format 16:10}

17 A sustainable DTT Future How to migrate all channels to HD? How to introduce T2 and other technology improvements gracefully? Which other services can add value for consumers and broadcasters? What decisions on future spectrum use will be made on European level? BNE ITU-D Budapest /LB, Page 17 {Format 16:10}

18 Migration and Development NEW SERVICES OTT, VOD, 3D HEVC UHDTV? Time Frequency Slicing Advanced Network Planning Modulation and Error Control DVB-T1 DVB-T2 MPEG 2 MPEG 4 SDTV HDTV SIMULCAST DVB-T2 MPEG 4 HDTV (SDTV) WRC 15 EU DECISIONS SPECTRUM REPLANNING SIMULCAST THE 700 MHz ISSUE CLEARING COSTS CONSUMER SUPPORT MIMO Interference Cancellation > ? BNE ITU-D Budapest /LB, Page 18 {Format 16:10}

19 Minutes per person per day Evolution of linear and non-linear TV viewing Minutes per person per day Average in the EU Big LINEAR TV NON LINEAR OTT, VOD, HbbTV ,5 1,0 2,2 4,1 6,8 10,2 13,6 17,5 22,0 25,5 29,1 32, * Source: IHS ScreenDigest: Cross-platform Television Viewing Time FY 2012 Note: Forecast from 2012 / * 2020 forecast by EBU BNE ITU-D Budapest /LB, Page 19 {Format 16:10}

20 DTT is a Spectacular European Success Story It will continue to develop 250 million consumers 2000 TV channels The largest distribution platform in Europe A sustainable DTT future = Certainty of Spectrum Access BNE ITU-D Budapest /LB, Page 20 {Format 16:10}

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