Pacific Telecommunications Council 2001 Honolulu, Hawaii, January 14-18, 2000 Analog Switch-Off Spectrum Auctions in the Digital Age Dr. Andreas Grünwald Institute for Information, Telecommunications and Media Law (ITM) University of Münster, Germany
Outline Television s Turn to Digital Digital Television Technologies Advantages and Disadvantages Towards the Analog Switch-Off The Need for Regulation Current Regulatory Efforts The Case of Auctions Use of Auctions to Regulate the Radio Spectrum Advantages and Disadvantage January 14-18, 2001 PTC 2001, Honolulu, Hawaii 2
Digital Television (1) Broadcaster Multiplex EPG Conditional Access Viewer January 14-18, 2001 PTC 2001, Honolulu, Hawaii 3
Digital Television (2) Free-TV Pay-TV Multiplexing 6 MHz EPG Signal Data Service Set-Top-Box Pay-TV Free-TV Analog TV Set EPG Data Service January 14-18, 2001 PTC 2001, Honolulu, Hawaii 4
Digital Television (3) Television Programming in HDTV Quality VHS VHS VHS VHS VHS VHS VHS Data Service Television Radio Internet Download 6 MHz Back Channel January 14-18, 2001 PTC 2001, Honolulu, Hawaii 5
Digital Television (4) Disadvantages of DTV Technological difficulties Network costs Replacement of analog TV sets by digital equipment Consumer costs January 14-18, 2001 PTC 2001, Honolulu, Hawaii 6
Digital Television (5) Advantages of DTV Spectrum Efficiency Enhanced Distribution Models Convergence T-Commerce January 14-18, 2001 PTC 2001, Honolulu, Hawaii 7
Analog Switch-Off (1) The Need for Regulation Scarce Terrestrial Frequencies Limited Simulcast Capacities Regulatory Goals Ensuring a smooth transition Establishing a clear legal framework Fostering the market developement January 14-18, 2001 PTC 2001, Honolulu, Hawaii 8
Analog Switch-Off (2) Australia Mid 2000 to Jan 2001: DTV field testings 1 Jan 2001: DTV transmission starts in metropolitan areas Until 1 Jan 2004: regional areas to follow From 1 Jan 2003: HDTV quotas become effective 2008: Switch-off and return of additional channels January 14-18, 2001 PTC 2001, Honolulu, Hawaii 9
Analog Switch-Off (4) The U.S. Scenario Analog Switch-Off in 2006, if at least 85% of households have gone digital 1997: Every existing broadcaster is given an extra 6 MHz of spectrum Limited Simulcast Requirements 2006: Return of additional frequencies 03/2001: FCC auctions analog spectrum January 14-18, 2001 PTC 2001, Honolulu, Hawaii 10
Spectrum Auctions (1) New Zealand Radiocommunications Act of 1989 Property rights in radio spectrum Management rights Licenses Vickery Auction Sealed Bid Second Price January 14-18, 2001 PTC 2001, Honolulu, Hawaii 11
Spectrum Auctions (2) United States FCC has auctioning power since 1993 Auctioning becomes mandatory for radio and television frequencies in 1997 C-Block Auction in 1996 Entrepreneurs Block Followed by controversial discussion Over $ 20 billion raised thus far January 14-18, 2001 PTC 2001, Honolulu, Hawaii 12
Spectrum Auctions (3) Advantages Speed Transparency Promoting Efficient, High-Value Use Preserving the Public Interest (?) Disadvantages Indifferent Criteria High Financial Investments Required January 14-18, 2001 PTC 2001, Honolulu, Hawaii 13
Conclusion DTV to Replace Analog Broadcasting Analog Switch-Off Requirements: Detailed Spectrum Planning to Overcome Scarcity Problems Consistent Legal Framework to Ensure a Smooth and Quick Transition Use of Spectrum Auctions Should be Considered as Part of Switch-Off Scenario January 14-18, 2001 PTC 2001, Honolulu, Hawaii 14
Further Information at... www.tkr-newsletter.de (International Mailinglist) www.switch-off.com gruenwald@digital-law.net January 14-18, 2001 PTC 2001, Honolulu, Hawaii 15