BNE General Assembly May 12, 2015

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1 BNE General Assembly May 12, 2015 Review of BNE activities 2014 The European Spectrum Discussion Digital Terrestrial Television (DTT) is a Great European Success Story Challenges for DTT Lars Backlund, Secretary General Broadcast Networks Europe Represents Terrestrial Network Operators in 20 countries BNE GA 2015 /LB, Page 1 {Format 16:10}

2 A trade association for terrestrial broadcast network operators in Europe Created February 23, 2010 after an initiative from TDF and Teracom BNE GA 2015 /LB, Page 2 {Format 16:10}

3 BNE 17 members, 20 countries UK Spain Czech Republic Greece Finland Serbia Italy Germany Norway, Belgium Croatia Austria Switzerland Romania Italy Ireland France, Estonia, Sweden, Monaco, (Poland) Denmark BNE GA 2015 /LB, Page 3 {Format 16:10}

4 BNE - Members operating in 21 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 Member Membership Discussions. Ex TDF. BNE Membership Discussions BNE GA 2015 /LB, Page 4 {Format 16:10}

5 Governance Full Members One voting representative from each full member General Assembly Board of Directors Minimum 5 members. Term 2 years. Internal Audit Associate Members Non voting representatives from associate members Chairman (rolling among CEOs) Vice Chairman (6 months periods) General Secretary (6 months periods) Treasurer (6 months periods) Association Internationale Sans But Lucratif (AISBL) Appoint, renew and remove Board members Admit new Members and dismiss Members Approve the policy, strategy and activities Approve reports of the Chairman Approve financial reports and examine and approve the accounts for the past financial year Grant a discharge to the Board members for the work performed during the previous financial year Approve the budget for the following financial year Fix the membership fees Amend, as necessary, the Articles of Association, at the proposal of the Board of Directors; Decide the signature authority for the Association Approve the rules of procedure Dissolve the Association Elect among its members a Chairman and a Vice Chairman. A General Secretary and a Treasurer may also be appointed. Appoint and remove the auditor and fix his remuneration Amend the working structure within the Association as required Decide the creation of working groups or dedicated tasks forces Approve reports, recommendations, requests and opinions on the Association s issues which, in the name of the Association, are intended for outside organisations Prepare work programme proposals Implement work programme Organize work (set up of working groups ) Prepare budget proposal for decision by the General Assembly Represent the Association based on the decisions taken by the General Assembly Address matters of Association administration, management and scheduling including procurement of administrative, accounting and auditing services Prepare and present annually for approval by the General Assembly the financial accounts BNE GA 2015 /LB, Page 5 {Format 16:10}

6 Organisation Year End 2015 Contracted services Secretariat Interel Commercial Working Group Arqiva (Peter Couch) Chairman TDF (Olivier Huart) Policy Working Group Abertis (Josep Ventosa) Vice Chairman Arqiva (Peter Couch) Secretary General Teracom (Lars Backlund) Communication Working Group TDF (Jean-Pierre Faisan) Technical Working Group RaiWay (Aldo Scotti) Office Management Interel Accounting, Tax and Legal formalities RSM InterFiduciaire WEB Site Updates and Maintenance Interel, HYPE3 Broadcast Networks Europe (BNE) Rue du Luxembourg I B 1000 Brussels Belgium Tel: Tel general: Fax BNE GA 2015 /LB, Page 6 {Format 16:10}

7 BNE GA 2015 /LB, Page 7 {Format 16:10} Looking back at 2014

8 Which were our targets for 2014 All issues related to the 700 MHz band and active participation in relevant meetings, consultations, etc. with Administrations, the Commission, the European Parliament, CEPT and ITU. Co-existence and interference issues between DTT and Mobile Broadband (MBB). Co-existence and interference issues between DTT and White Space Devices (WSDs). To avoid MHz becoming co-primary Broadcasting and IMT at WRC 2015 in Region 1 and avoid the risk that investment incentives may be lost. Certainty of UHF spectrum access well beyond A sensible output document from the HLG. Liaise with Region 1 stakeholders in Africa, Middle East and beyond to gain additional support for retaining UHF for Broadcasting. Active engagement with administrations. Closer coordination with EBU. The role of linear content in Europe. Is there a Low Tower Network configuration or a High Tower LTE alternative in the long term? To ensure that the Single Market Proposal does not result in disruptive regulatory outcomes that would be to the detriment of terrestrial broadcasting. Communication and lobbying around the above topics BNE GA 2015 /LB, Page 8 {Format 16:10}

9 In addition responses to a number of Public Consultations BNE GA 2015 /LB, Page 9 {Format 16:10}

10 BNE GA 2015 /LB, Page 10 {Format 16:10} The Spectrum Battle

11 It s about telecom policy, money (lots of), job creation, BNP growth, the European audiovisual model and who will use radio spectrum for what BNE GA 2015 /LB, Page 11 {Format 16:10}

12 Some of the issues The Spectrum Context BNE GA 2015 /LB, Page 12 {Format 16:10}

13 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 *RSPG: Radio Spectrum Policy Group 1 701, Source: RSPG Opinion, June DTT 224 MHz MHz 392 MHz Digital Terrestrial Television (DTT) 224 MHz (5-600 MHz band) Heavily used by DTT Near term 800 MHz band 96 MHz (700 MHz band) Heavily used by DTT To be discussed on WRC ,5 MHz 1841,5 MHz 2727,5 MHz 700 MHz Medium term Possibly > MHz Digital Dividend (800 MHz band) Released from analogue TV to WBB. Possibly Very Long Term?? 2951,5 MHz Amount of Spectrum in MHz Short term -72 MHz (800 MHz) Medium term -96 MHz (700 MHz) Very long term (??) -224 MHz ( Everything?! ) BNE GA 2015 /LB, Page 13 {Format 16:10}

14 BNE GA 2015 /LB, Page 14 {Format 16:10} The Market Context

15 57% of TV households receiving DTT on primary or secondary TV sets (Source EBU) Penetration across Europe of TV HHs with DTT on primary sets 100% Notes: EU 28 only. Size of bubbles represent number of TV households 90% Source: EBU/IHS, Informa, Eurostat, Redshift analysis 80% DTT dominant primary platform CY ES 70% IT 60% EL 50% LT 40% LV HR MT UK BG CZ 30% SI DK SK FI 20% SE PT RO EE FR 10% BE DE NL IE AT PL HU LU 0% 0% 20% 40% 60% 80% 100% BNE GA 2015 /LB, Page 15 {Format 16:10} Penetration across Europe of TV HHs with DTT on any set DTT in Europe summary 59.8m DTT primary households 118.7m DTT households 6 countries where DTT is the dominant primary platform Over 2000 channels on DTT across Europe with c.200 available in HD

16 What is the future after 700 MHz Are there motives to give away more spectrum BNE GA 2015 /LB, Page 16 {Format 16:10}

17 Newsletter clip OFCOM no longer supports earlier projections and says that it is necessary to go back to the drawing board before more spectrum is removed from other users and that data demand may be overestimated by a factor of 1000 (!) Other analysts come to similar conclusions and challenge the models used by the ITU and the mobile sector BNE GA 2015 /LB, Page 17 {Format 16:10}

18 The Aetha report value of spectrum to mobile Our results show that even in the most aggressive mobile traffic forecast, the costs of clearing DTT from the spectrum (EUR38.5bn) significantly outweigh the potential value of using the spectrum for mobile (EUR10.3bn) by a factor of almost four. When a less aggressive traffic forecast is used, the costs of clearing DTT are unchanged but the value of using the spectrum for mobile would be near to zero BNE GA 2015 /LB, Page 18 {Format 16:10}

19 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) Note that most of Mobile Data Growth will occur in North America and Asia Pacific according to the Cisco forecast BNE GA 2015 /LB, Page 19 {Format 16:10}

20 Decision process Practical aspects 700 MHz Rest of UHF BNE GA 2015 /LB, Page 20 {Format 16:10}

21 What is process leading to decisions on 700 MHz and the remaining UHF band HLG Lamy Report TG6 report on Long Term future of UHF EU Convergence Study EU Spectrum Inventory Report Spectrum Demand Forecasts subject to doubt Aetha Study and the importance of MHz for DTT RSPG Opinion All the evidence points to the long term sustainability of terrestrial broadcasting and the need for security of access to spectrum over the long term But the process is complex has many stakeholders, involves numerous committees and requires a realistic migration plan BNE GA 2015 /LB, Page 21 {Format 16:10}

22 28 Countries EC+MS+Admins+Industry 48 Countries All 193 countries World The full picture DVB-T1 DVB-T2 RSC MPEG 2 MPEG 4 SDTV HDTV NEW SERVICES OTT, VOD, 3D EC EC+MS Report 224 Future of UHF TG6 SG5&WP:s SG6&WP:s HLG Lamy report EU convergence study EU spectrum inventory Spectrum demand contested RSPG opinion Mandate to CEPT on Harmonized DVB-T2 Conditions MPEG 700 MHz4 SIMULCAST ECC HDTV JTG4567 Report 053 HEVC WRC 15 EU DECISIONS PTD NETWORK CPG REPLANNING Co-primary? CPM Policy and Strategy UHDTV EC Decision PT1 SIMULCAST ECP:s CPM report 28 Countries 48 Countries Technical EC ECC Decision >= 10+;<= 6- EP Council RSPG 700 MHz IN EC EC+MS+ADMINS THE LONGER TERM EC MS Multi country proposals CEPT Admins MIGRATION COSTS CONSUMER SUPPORT Co-primary? RSPP Decision WRC15 RCC ARNS 700 MHz DTT BEYOND 2030 Communication on WRC15 Reg3 Africa Reg2 Arab states BNE GA 2015 /LB, Page 22 {Format 16:10}

23 Stakeholders BNE GA 2015 /LB, Page 23 {Format 16:10}

24 28 Countries The 700 and UHF decision process EC RSC EC+MS HLG Lamy report EU convergence study EU spectrum inventory Spectrum demand contested RSPG opinion Mandate to CEPT on Harmonized Conditions 700 MHz Policy and Strategy EC Decision EC RSPG 28 Countries EC+MS+ADMINS EP Council EC MS EC Sub No change? RSPP Decision ARNS 700 MHz Communication on WRC15 Report 224 Future of UHF Report 053 PT1 ECC Decision 48 Countries CEPT Admins Reg3 Reg2 EC+MS+Admins+Industry 48 Countries TG6 ECC PTD CPG ECP:s >= 10+;<= 6 WRC15 Arab states All 193 countries World SG5&WP:s SG6&WP:s JTG4567 Sub No change? CPM CPM report Technical Multi country proposals RCC Africa BNE GA 2015 /LB, Page 24 {Format 16:10}

25 Some meetings attended by BNE during 2014 EU High Level Group* Brussels Spectrum Conference Brussels EU High Level Group Sherpas* Brussels WSG* Brussels ITU Tech Seminar Budapest IBC Amsterdam CEPT TG6* Copenhagen, Lyon, Lisbon CEPT PTD* ITU JTG 4567* Geneva CEPT PT1* Rome, Maisons-Alfort, Luxembourg, Zagreb, Rome, Luxembourg, Zagreb EC Convergence* Brussels CEPT CPG* Marseille, Riga EBU Tech Assy Prague EC meetings* Brussels BNE Aetha* London EP meetings* Brussels EBU Coordination Meetings Geneva * Indicates meetings on several occasions BNE GA 2015 /LB, Page 25 {Format 16:10}

26 ITU meetings in Geneva BNE GA 2015 /LB, Page 26 {Format 16:10}

27 ITU meetings in Geneva BNE GA 2015 /LB, Page 27 {Format 16:10}

28 ITU meetings in Geneva BNE GA 2015 /LB, Page 28 {Format 16:10}

29 ITU meetings in Geneva BNE GA 2015 /LB, Page 29 {Format 16:10}

30 ITU meetings in Geneva BNE GA 2015 /LB, Page 30 {Format 16:10}

31 ITU meetings in Geneva BNE GA 2015 /LB, Page 31 {Format 16:10}

32 CEPT ECC Meeting, Budapest BNE GA 2015 /LB, Page 32 {Format 16:10}

33 The Commission High Level Group Composition Broadcast sector Telecom sector Wireless production Report by summer Next generation systems Public interest and consumer impact Market transformation Strategic elements spectrum use UHF-band Business, financial and cost implications BNE GA 2015 /LB, Page 33 {Format 16:10}

34 Chairman and the Commission Representatives Chair Pascal Lamy Vice President Kroes Cabinet Members Commission Services Main Points (Kroes) Constructive outcome Win-win Predictable regulatory framework Retained investment incentives Secured (European) content production BNE GA 2015 /LB, Page 34 {Format 16:10}

35 Typical Public Hearing with the Commission BNE GA 2015 /LB, Page 35 {Format 16:10}

36 Wider Spectrum Group (WSG) European Parliament breakfast Hosted by BNE, EBU, EP, UNI-MEI, EJF BNE GA 2015 /LB, Page 36 {Format 16:10}

37 Before Lamy and Now Starting point for GSMA was to start closing DTT by 2017 and clear all DTT spectrum for mobile broadband by 2020 Now The Lamy report and the RSPG (Radio Spectrum Policy Group) concludes that DTT is important for the foreseeable future which is 2030 and beyond. Aetha Report: No economic case to give sub 700 MHz spectrum to mobile EC Convergence Study: No case for converged DTT Mobile networks A European Common Proposal (ECP) is underway to the WRC-15 with no co-primary allocation for the mobile service at the WRC BNE GA 2015 /LB, Page 37 {Format 16:10}

38 If you are not at the table You are on the menu BNE GA 2015 /LB, Page 38 {Format 16:10}

39 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! Introduce (some) UHD! 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 GA 2015 /LB, Page 39 {Format 16:10}

40 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 GA 2015 /LB, Page 40 {Format 16:10}

41 It s here to stay BNE GA 2015 /LB, Page 41 {Format 16:10}

42 700 MHz transition - key aspects to be considered From the transition roadmap in the Lamy report: International frequency coordination (including broadcast transmissions, PMSE, local and community services, etc.) Planning and preparations including funding Management and coordination of activities Communications Technical activities including network changes Support to trade stakeholders User support BNE GA 2015 /LB, Page 42 {Format 16:10}

43 Migration and Development NEW SERVICES OTT, VOD, 3D HEVC UHDTV DTT BEYOND 2030 DVB-T1 DVB-T2 MPEG 2 MPEG 4 SDTV HDTV DVB-T2 MPEG 4 HDTV SIMULCAST 700 MHz IN THE LONGER TERM SIMULCAST WRC 15 EU DECISIONS NETWORK REPLANNING MIGRATION COSTS CONSUMER SUPPORT 2014 > BNE GA 2015 /LB, Page 43 {Format 16:10} Simulcast requires the availability of the 700 MHz band

44 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. 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 GA 2015 /LB, Page 44 {Format 16:10}

45 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. 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 currently available spectrum for DTT. Changed use will imply constraints for service delivery, require significant time to re-plan current usage and demand very significant investments. The additional discussion and the forthcoming decisions on the long term use of the whole UHF band may lead to a regulatory induced failure of DTT. This is not in the interest of the European Consumer BNE GA 2015 /LB, Page 45 {Format 16:10}

46 BNE Studies and Seminars DTT Value Study (Deloitte) HTLT Network Topologies (Progira) Interference calculations EBU, DigiTAG, BNE Future use of the MHz band (Aetha) Connected TV (London) Digital Radio (Stockholm) Connected TV (Barcelona) B2M (Paris) LTE Training Course (Stockholm) Strategy (Brussels. Barcelona ) High Tower-Low Tower Network Topologies (Stockholm) High Tower Low Tower Network Topologies Workshop in Stockholm BNE GA 2015 /LB, Page 46 {Format 16:10}

47 BNE Work Program 2015 Main Objectives To avoid a co-primary allocation for the MHz frequency band at the WRC 15 in November. To secure that DTT is granted long term access to spectrum in the next EU Radio Spectrum Policy Program (RSPP) Make DTT recognized as a part of the new Commission s EU Digital Agenda to underpin growth of the EU economies. To ensure that the transition roadmap as defined by the Lamy report and agreed within the High Level Group should be adopted by the European Commission. Maintain momentum and BNE s financial viability by enlarging Membership and fine tuning the working group missions in accordance with the objectives and a mind-set of conquest. Develop the Wider Spectrum Group (WSG) to support the importance of DTT for the European content industry BNE GA 2015 /LB, Page 47 {Format 16:10}

48 DTT constantly developing MHz Analogue only. Typically 3-5 ch MHz Simulcast. Typically 5-7 Analogue plus 24 SD Digital MHz All digital. Typically 50 SD channles and interactive services > MHz Typically mix of 50 SD, HD and UHD channels and interactive services Analogue Simulcast Digital tv Mobile Guard band BNE GA 2015 /LB, Page 48 {Format 16:10}

49 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 GA 2015 /LB, Page 49 {Format 16:10}

50 ITU meetings in Geneva BNE GA 2015 /LB, Page 50 {Format 16:10}

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