European Commission Consultation British Entertainment Industry Radio Group (BEIRG) Public consultation on the future use of the UHF TV broadcasting band - the Lamy Report Date: April 2015 Contact Details: Jamie Slavin Ranelagh International Ltd on behalf of the BEIRG Steering Committee One Ranelagh Road Westminster London SW1V 3EX Tel: 020 7828 1603 jamie.slavin@ranelagh-intl.com Executive Summary The British Entertainment Industry Radio Group (BEIRG) fundamentally opposes a reallocation of the 700 MHz band to use by wireless broadband services. BEIRG believes that the PMSE industry is more critically dependent on the favourable properties of the 700 MHz band than the Mobile Network Operators (MNOs), who can and do operate at much higher frequencies. BEIRG suggests that the forecasts of mobile demand are unreliable and exaggerated, meaning that any policy decisions based on this data will be fatally flawed.
BEIRG believes that it is critical that a sufficient quantity of alternative, clean, dedicated spectrum is allocated to the PMSE industry to properly compensate the sector for the loss of access to, the 800 MHz band and, in all likelihood, the 700 MHz band in the relatively near future. BEIRG emphasises the need for this to be completed before the 700 MHz frequency band is reallocated to the mobile sector. Although welcome, it should be well understood that the recent mandating of the 800 MHz duplex gap and the 1.8 GHz duplex gap to PMSE does in no way compensate the sector for the loss of access to the 800 MHz and 700 MHz bands. BEIRG suggests that the mobile industry s working practice is far from efficient and recommends that MNOs are made to put their current spectrum holdings to better use before being allowed to purchase more spectrum. BEIRG requests the European Commission to oppose any co-primary mobile allocation in any area of the 470 694 MHz band now, at WRC-15 and beyond. BEIRG suggests that the European Commission closely reflect on the common declaration (available here and a copy in Annex) made by the Wider Spectrum Group (of which APWPT is a member) calling for a fresh start and vision for spectrum as part of an industrial strategy for Europe s cultural and creative sector. The long term advantages and disadvantages in using the 700 MHz band for wireless broadband services in the Union The British Entertainment Industry Radio Group (BEIRG) fundamentally opposes a reallocation of the 700 MHz band to use by wireless broadband services. The potential long term disadvantages of such a reallocation, if not comprehensively mitigated through the allocation of a sufficient quantity and quality of alternative spectrum for Programme Making and Special Events (PMSE) use, would be catastrophic. The economic and social importance of PMSE, and the creative industries which rely on it, is growing. In the UK the creative industries are currently responsible for 1.5 million jobs, and contribute nearly 72 billion annually to the UK economy1. PMSE services contribute significantly to the economic, cultural and social wellbeing of Europe. For example, London theatres, which use PMSE equipment to produce much of their content, attract visitors from all over Britain and tourists from across the world. Including downstream revenue such as merchandise, the estimated annual economic impact of London theatres is 1.5 billion. Similarly, music festivals and live music concerts also contribute a significant amount to the British, and the international, economy. Without sufficient access to spectrum, the PMSE sector s ability to produce content for consumers will be severely hindered. It is essential to recognise that any impingement on PMSE usage poses a serious threat to the revenue generation of this sector and far beyond. Industry users will be directly affected and face a huge potential loss of earnings and consumer reputation. In any production uninterrupted, high quality audio is 1 https://www.gov.uk/government/news/creative-industries-worth-8million-an-hour-to-uk-economy 1
absolutely critical. Consequently, any interference experienced that causes a degradation of audio quality has severe repercussions for both the production and the audience alike. Therefore, new services need to recognise, respect and co-exist with PMSE users, as well as to make the most of the spectrum that they have, to ensure fair usage for all. Unlike other technologies, wireless microphones do not have the capability to move to platforms other than radio spectrum. Whereas current terrestrial television services may potentially be able to be broadcast online in the longer-term, PMSE equipment cannot function on any platform other than clean, interference-free spectrum. Currently there is only a limited pool of PMSE equipment that operates outside the UHF spectrum; the UHF bands offer the largest quantity of contiguous, good quality spectrum required for large professional events. This is not the case for other usable blocks of spectrum like 1.8GHz, 2.4GHz, or even 5GHz, for which some manufacturers make a small amount of equipment. Furthermore, interference from Digital Terrestrial Television (DTT) in the UHF bands is predictable and can be accounted for, while in other parts of spectrum where radio mics can operate, PMSE users must share spectrum with license exempt devices and find that access can therefore be much more unreliable and of inconsistent quality. BEIRG challenges the stated advantages of a reallocation of the 700 MHz band to use for wireless broadband. The chief claim is that the additional spectrum will help cope with the highly questionable projected increased future mobile data demands. BEIRG remains unconvinced of the accuracy of predictions for increased future mobile data demand. If the projected rates of demand are indeed flawed, then the reallocation of the 700 MHz frequency band is unnecessary. Before any further disruption is caused to the current radio spectrum allocations, BEIRG asks that the European Commission undertakes a fully independent study into future mobile data demand. There are strong suggestions that reports which have previously been relied upon have been shown to be seriously flawed. For example, Overestimating Wireless Demand: Policy and Investment Implications of Upward Bias in Mobile Data Forecasts, a report authored by Aalok Mehta and J. Armand Musey (August 2014), found that regulators have come to rely on reports that have repeatedly proven to be inaccurate, and have taken few measures to adjust policies or mitigate the risk of error going forward. The report cites several examples of faulty data being used by regulators, including Ofcom in the UK. It notes that, in the Real Wireless spectrum demand forecast (June 2013), a prediction of a demand of 10petabytes per square kilometre by 2020 was made. This figure was heavily criticised and the forecast was later revised downward by a factor of 1,000 to 10 terabytes per square kilometre in the final version of the report (March 2014). This alteration, although never explained, demonstrates the inherent uncertainty of spectrum predictions. The report lists several possible causes of bias, such as a refusal to take into account the increasing popularity and ease of Wi-Fi deployment or an inability to predict business and product developments. For example, Mehta and Musey point out that modelling often does not take into account that the price per MB will undoubtedly shift over time; consumers will not increase their data usage several times over if it remains at its current price. The commercial value of spectrum, the report suggests, means that MNOs should shoulder the burden of proof in this scenario. Mehta and Musey admit that prediction data is likely to remain a key feature of spectrum policy, despite its questionable validity. They suggest that regulators should demand higher standards of submitted evidence and, most importantly, admit when a figure is doubted presentation of the theoretical as fact has already had a damaging and distorting effect. 2
Likewise, the European Broadcasting Union has cast doubt on the projections used by regulators. It believes that current models offered by ITU-R SG 5D overestimate mobile traffic density in 2020 by a magnitude of two orders - a factor of one hundred. BEIRG has long argued that the available sources of information upon which administrations rely are far from definitive. And yet it is the predictions supplied by these sources that have been used to justify the continual erosion of the PMSE sector s access to spectrum. As the quantity and quality of spectrum available diminishes, the quality of production within the PMSE sector, and its contribution to the UK economy, will also be diminished. As Mehat and Musey state, Government agencies have a strong obligation to manage spectrum as efficiently as possible due to its zero-sum nature and public ownership. The ultimate irony is that it is the content produced using PMSE equipment that is driving the MNO s predicted increases in data demand, a point readily conceded by many MNOs, whose representatives have stated that demand will be driven by film and video content. The audio portion of the most desirable content (the content that citizens actually want to consume) is invariably made using significant numbers of pieces of PMSE equipment. If this equipment can no longer be deployed then the content will be uninspiring, therefore the demand to consume it will be low, ergo; no data demand. Increasing the efficiency with which MNOs make use of spectrum BEIRG believes that if MNOs were made to use their current, not inconsiderable, spectrum holdings more efficiently there would be less, or potentially no, need to allocate additional spectrum to them. The past actions of extending mobile broadband spectrum access, without supporting or demanding the reuse of existing resources, have not encouraged sufficient efficiency amongst the mobile telephone industry. Whilst PMSE is an efficient user of spectrum, able to utilise interleaved spectrum and to operate alongside other users such as DTT, mobile telephone technology is, at present, not and is unable to coexist with other users. Additional spectrum should only be allocated for use by MNOs once they have shown that they have made efficient use of their current spectrum and their need for additional spectrum has been confirmed by critical, independent analysis. Currently, BEIRG does not believe that MNOs have made a convincing case in this regard. Much more efficient and cost-effective use could be made of this spectrum, and it is therefore imperative that MNOs make the most of their large spectrum holdings, as meeting any likely future demand will be greatly dependent on this. The outcome of a re-farming effort by the mobile industry should be modelled and they should be made to comply with this to ensure the greatest possible level of spectral efficiency. The increasing complexity of handsets has already led to a steady decline in mobile handset radio performance, which in turn leads to an increase in the required number of base stations to maintain network coverage. BEIRG believes that MNOs should be encouraged to exclude poor performing handsets from their networks. Ofcom UK has already identified several ways by which MNOs could increase their mobile data capacity. MNOs should be required to employ these options before, not after, they are allocated additional spectrum. A mobile telephone industry that in general refuses, for example, to share network infrastructure resources such as masts, clearly has more interest in its market penetration than in the efficient use of spectrum. Mobile users already offload onto Wi-Fi to make voice calls and to send and receive data in an already overloaded SRD Band. As a more efficient, reliable and better quality means of data transfer, this raises the question of how 3
much more spectrum the mobile community actually needs in future. The future may see most consumers offloading services onto Wi-Fi, as a preference to mobile broadband, especially with increasing amounts of people working from home. Use of Wi-Fi could allow for a much larger capacity and faster throughput of data. This offloading of voice calls and data is not accurately reflected in predictions for future data use. It should also be noted that mobile broadband is only one mechanism for data delivery; one which cannot deliver the benefits of a wired connection. All spectrum regulators should encourage the use of wired Wi-Fi systems to facilitate data delivery wherever possible. While there is a difference in relative costs, the life of a wired network is 30-50 years, compared to 10-15 years for wireless. Spectral efficiency should be Ofcom s primary focus in this area, and a focus on Wi-Fi provision to provide data access would help to relieve a great burden on spectrum use, therefore allowing PMSE to continue operating at its current level. Alternative Spectrum and Harmonisation Assuming that the re-alloacation of the 700 MHz band goes ahead, the importance of providing a sufficient quantity and quality of alternative spectrum in which PMSE users can operate cannot be overstated. Without access to dedicated, clean spectrum, the PMSE sector as we know it will no longer be able to function. A Study by the German Federal Network Agency in October 2008 2 identified that 96 MHz of spectrum was the minimum requirement for PMSE audio equipment to operate productions on a daily basis. This study was carried out in an urban area, and took into consideration the operation of PMSE systems in close proximity to each other. Both practical application and the report show that at least 96 MHz is required for each of these locations to operate PMSE services at the current standard of production and without interference or difficulty. The UK is a heavy user of PMSE equipment, meaning that these figures are even more worrying for those who operate there; at each performance in the West End there are over 1000 pieces of wireless PMSE equipment in use across all venues. At the same time, news crews and other content producers are also operating in this area, requiring further spectrum access. Furthermore, this study did not include special events, such as royal occasions, national and international political gatherings and conferences, VIP visits, elections, large open air events, national and international sports events, religiously motivated meetings, parades and more all of which rely on PMSE equipment. Until alternative spectrum is finalised, PMSE manufacturers cannot begin research and development into new equipment designed to work at these alternative frequencies. There is, obviously, a time lag between spectrum being identified and suitable equipment being made available. The PMSE sector requires a period of years between spectrum access being allocated and migration in order for suitable equipment to reach the market. This raises the prospect of there being a period of time during which PMSE users have access to a new set of frequencies, but not to equipment which operates at those frequencies. Manufacturers will not produce suitable equipment capable of tuning to any alternative bands until those alternative bands are clearly identified and long-term access is guaranteed. Many events which rely on PMSE services involve touring around Europe and so it is crucial that the alternative spectrum allocated to PMSE is harmonised across Europe. PMSE equipment is designed to work within a single frequency band, meaning that, if countries across Europe allow PMSE to work in different bands, touring companies will have to purchase several versions of the same equipment to put on a single show. This is 2 http://www.apwpt.org/downloads/reportonthefrequencyresourcerequirementsofpwms.pdf 4
clearly economically unviable and would lead to a significant decrease in the number of shows touring Europe. BEIRG urges the European Commission to promote harmonisation of alternative spectrum for PMSE use, as well as the 700 MHz band. BEIRG is currently working with the UK regulator Ofcom to identify alternative spectrum for PMSE use; announcement of a final decision is projected for the end of 2015. BEIRG recognises that the provision of alternative frequency bands is, at present, largely a national issue, but asks the European Commission to follow the progress made by Ofcom and, if appropriate, to encourage other administrations to follow their example. Engaging with the PMSE sector is key to securing a successful future for the creative industries in Europe. In light of the above, BEIRG urges the European Commission to prioritise the search for alternative spectrum over the sale of existing bands to MNOs. If the latter is completed before the former it will be too late for the PMSE sector, while MNOs are already in possession of more spectrum than is necessary for their industry. 470-694 MHz A co-primary mobile allocation in the 470 694 MHz band should be opposed by the European Commission now, at WRC-15 and beyond. For the reasons outlined earlier in this consultation response, BEIRG does not believe that MNOs need to be allocated additional spectrum. Indeed, BEIRG believes that the interests of consumers and other users of spectrum would be best served through more efficient use by MNOs of spectrum which they already hold. By opposing the co-primary mobile allocation, the European Commission would help to provide some stability for the PMSE sector which, in the past, has been sorely lacking it. The industry had been racked with uncertainty for several years as discussions regarding the clearance of the 800 MHz band progressed. PMSE users hoped that that clearance would mark the end of this uncertainty and the creation of a stable environment in which they could work. Instead, almost immediately, discussions began about the clearance of the 700 MHz band. In effect, manufacturers, suppliers and users of PMSE equipment have not enjoyed the stability, on which any industry relies, for over a decade. Instead, the PMSE industry in Europe has faced serious upheaval. The clearance of the 800MHz band has placed a serious financial burden on the industry. The threat of interference from White Space Devices (which would compete with any future potential Cognitive systems for PMSE ) and the proposed clearance of the 700MHz band are providing further concern for PMSE professionals and undermining investor confidence. At the same time, consumer demand for PMSE produced content is rising. BEIRG believes there will soon be insufficient clean spectrum available to operate necessary quantities of PMSE equipment for large-scale productions to be staged at prime venues across Europe. BEIRG requests that the European Commission use its considerable influence to persuade its international partners to oppose a co-primary mobile allocation of the 470-694 MHz band. Flexible downlink-only use of the 470-694 MHz 5
BEIRG absolutely opposes any downlink-only use of the 470-694 MHz band. LTE wireless broadband is a notoriously bad sharer of spectrum and so the risk of interference with DTT or PMSE transmissions is far too high. Furthermore, with the 700 MHz band likely to be reallocated, and with the limited progress currently being made towards allocating alternative spectrum for PMSE use, it is critical that as much interleaved spectrum as possible is reserved for PMSE use. Although welcome, it should be well understood that the recent mandating of the 800 MHz duplex gap and the 1.8 GHz duplex gap to PMSE does in no way compensate the sector for the loss of access to the 800 MHz and 700 MHz bands. Again, it is crucial to acknowledge the inherent contradiction between supplying additional spectrum for content distribution at the expense of providing content producers with sufficient spectrum in which to operate. By allowing supplemental down link in the 470-694 MHz band, the European Commission would be creating massive insecurity and jeopardising producers willingness to invest in content production. Conclusion BEIRG asks the European Commission to prioritise the protection of vulnerable incumbent users of spectrum. If greater attention is not paid to the need to identify, clean, harmonised, alternative spectrum for PMSE users, the creative industries across Europe will face severe disruption without any hope of support. The European Commission should commission independent research into future mobile data demand, as there is considerable evidence that current predictions, on which policy decisions are mistakenly being based, are inaccurate. MNOs should be required to use existing spectrum holdings more efficiently before being allocated additional spectrum. The 470-694 MHz should not be designated as a co-primary mobile allocation. The European Commission should oppose this in all international forums, as well as the use of the band for downlink-only wireless broadband services. Annex British Entertainment Industry Radio Group The British Entertainment Industry Radio Group (BEIRG) is an independent, not-for-profit organisation that works for the benefit of all those who produce, distribute and ultimately consume content made using radio spectrum in the UK. Venues and productions that depend on radio spectrum include TV, film, sport, theatre, churches, schools, live music, newsgathering, political and corporate events, and many others. BEIRG campaigns for the maintenance of Programme Making and Special Events (PMSE) access to sufficient quantity of interference-free spectrum for use by wireless production tools such as wireless microphones and wireless in-ear monitor (IEM) systems. As well as being vital in producing live content, wireless PMSE technologies play a key role in helping to improve security and safety levels within the entertainment industry and other sectors. Their benefits include improving the management of electrical safety, the reduction of noise levels, the development of safety in 6
communications and reducing trip hazards as well as providing an essential tool for the security orientated services. Wireless equipment and the spectrum it operates in are now crucial to the British entertainment industry. BEIRG is a member of the Association of Professional Wireless Production Technologies (APWPT) 3, which promotes on an international level the efficient and demand-driven provision and use of production frequencies for professional event productions, as well as safeguarding such production frequencies for the users on the long run. Common Declaration of the Wider Spectrum Group A fresh start for Europe: building an industrial strategy for creative and cultural industries based on growth, innovation and jobs A shared vision from the members of the Wider Spectrum Group Europe s unique audiovisual model sustains its creative and cultural sector s economy and jobs. It is a huge asset for Europe s competitive position in the digital world, cultural diversity and media pluralism. The creative and cultural sector, acknowledged as a leading employer and value driver in Europe, deserves a strong industrial strategy that reinforces the pillars it rests on. Spectrum allocation is one of those pillars. Free-to-air TV and radio make available to the general public local, diverse and plural European works and information. The Lamy report 4, amongst others 5, made explicit the need for a change of mindset from platform convergence to co-existence 6. This in order to meet different consumer expectations, support Europe s cultural diversity, support original content creation, promote media pluralism and sustain the development of an inclusive audiovisual and radio sectors. European leaders have called for a fresh start for growth and jobs 7, resting on investments surpassing 300 billion and a priority on Digital. The cultural, creative and media industries are an essential pillar of the digital economy and one of the key assets of Europe, in every dimension: Accounting for 6.8% share of GDP ( 860 billion) and 6.5% of Europe s employment (approximately 14 million direct and indirect jobs) 8 ; 3 http://www.apwpt.org/ 4 Pascal Lamy, Report to the European Commission, Results of the work of the high level group on the future use of the UHF band (470-790 MHz), September 2014 5 See recent RSPG opinion and ECC report 224 6 Co-existence' in the sense of simultaneous deployments of terrestrial broadcasting and mobile broadband platforms. 7 Jean-Claude Juncker, My priorities, Priority 1 put policies that create growth and jobs at the centre of the policy agenda of the next Commission 8 Laurent Benzoni and Philippe Hardouin, The economic contribution of the creative industries to EU GDP and employment - Evolution 2008-2011, Paris, September 2014 7
Combining the forces of flagship European-based companies competing in a global market alongside more than 1.4 million small and medium sized enterprises 9 (who generate over 80% of the total revenue for the sector); Employing a highly skilled, non off-shorable and well-educated workforce that is deeply rooted within local territories, economies and cultures; Creating and investing in digital platforms and leading in technological innovations; Europe s digital market for cultural products and services are providing more and more choice to consumers. European enterprises and employees from the creative and cultural industry stand together at the forefront of Europe s fresh start to provide more growth and jobs for Europeans. A fresh start based on: A vision for its future digital economy and society that integrates all existing components to optimise opportunities and potential rather than drive fragmentation and conflict between sectors and players; A strategy that embraces cultural diversity and pluralism as valuable assets in the EU; A commitment to enshrine fair access and support for creation, innovation and finance. EU policy-makers in close consultation with all stakeholders and civil society need to define a European industrial policy, which will recognise the cultural, creative and media industries as a growth enabler for Europe and as a key component of European construction. This means policies that: Acknowledge the business, investment and funding 10 models for the works produced; including content creation, distribution and licensing models that ensure sustained levels of efforts and investments in content from employees and enterprises; and infrastructure investments to spark innovations that meet evolving EU audience expectations; Uphold the importance of local/national works 11 as supporting European employment, diversity and plurality with a thorough consideration of the added value these industries, driven by broadcasters, create through contextualising works 12 and investing 13 for citizens; Enshrine guaranteed access to critical resources such as spectrum for services that enable and sustain Europe s creative and cultural industry, to maintain free-to-air as a capacity for citizens to participate in the public discourse, have choice and preserve their local identity. Europe s preference - Low cost, accessible, local, reliable, regulated, plural 250 million Europeans choose television via the digital terrestrial television (DTT) broadcasting platforms as one of their preferred means of media consumption. 80% of the EU population listens to the radio for 2 to 3 hours a day, mostly through broadcasting (analogue and digital). Traditionally and increasingly PMSE 14 equipment is used to create this content. Television and radio are the most intimate, most trusted and most economic rational means to address the reality of national identities and to uphold Europe s unique, comprehensive and virtuous model. This model 9 Idem 10 For example, recognising public contributions as well as advertising revenues key role in funding content in Europe, especially for media; e.g., almost 100% of commercial radio revenues come from advertising, and up to 90% for commercial free-to-air TV 11 Dr Alice Enders, The value of territorial licensing to the EU, October 2013 12 Pr Olivier Bomsel, Why territories matter, October 2013, contextualisation [...] is a complementary good that enhances the meaning value of the copyrighted expression 13 Enders on conclusions of AVMS 2011- Final Study Report - 13 December 2011, every euro of net broadcaster revenue funds 54 cents of investment, of which about 29 cents to mainly national works 14 Programme Making and Special Events / SAP/SAB (radio microphones, wireless in ear monitor system, and wireless communication systems) 8
spreads the production base across Europe creating jobs and growth. Broadcasting platforms, and in particular DTT and radio platforms, will continue to play a crucial role in delivering linear broadcast content to European citizens. This diversity of supply ensures a diversity of choice to Europeans allowing for platform competition, innovation and investment over the long-term. Reducing spectrum for content creation and terrestrial broadcasting has far-reaching consequences beyond just arbitrating between broadcasting and mobile. Moving away from DTT would result in a loss of 38.5 billion to the EU economy 15 before any account of losses to the creative sector. The current debate has pitched mobile services against terrestrial broadcasting when in reality these services should be seen as complementary and supporting different needs. Mobile services ensure one-to-one communications (phone calls, mobile internet...). Terrestrial broadcasting is indispensable for spectrum-efficient one-to-many transmissions (free-to-air TV and radio, coverage of major live events, emergency communications...). The latter makes the platform more cost effective and selfsustaining due to the economies of scale involved with equal quality. Europe s broadcast industry has scale and can invest to deliver high impact / quality cultural and creative works. Scale is manifested in reach, coverage of the service, which enables low cost delivery of media works on consumer devices affordable to all. Scale raises advertising income enabling more money to be re-invested in cultural oriented creation and national / local distribution. The benefits of terrestrial broadcasting are recognised in European law as an integral part of the general interest. More specifically as promoting social, regional or territorial cohesion and cultural and linguistic diversity and media pluralism 16. For many European countries, no terrestrial broadcasting would equate to significantly weakening this general interest objective with the loss of the national media industry and no production of local works and hence jobs. In 2015, European policy-makers can bring about an industrial policy that will: 1. Position creative and cultural industries at the heart of Europe s Digital Single Market objectives 2. Guide new and sustain existing investments to increase certainty for employers, employees and the public alike as well as to maintain innovation, plurality and diversity 3. Take decisions on critical resources such as spectrum allocation on the basis of a comprehensive examination of the impact on cultural and creative sector growth and jobs, particularly in forming common positions for EU in reviewing the RSPP 17 and for global negotiations at the WRC-15 18 It is urgent to adopt a wider vision, an industrial strategy, a fresh start for Europe. 15 Aetha study, Future use of the 470 694MHz band, October 2014 16 Electronic Communications Framework Directive, 2009/140/EC, 2009 17 The Radio Spectrum Policy Program (RSPP) defines common policies within the European Union 18 The World Radio Conference 2015 (WRC-15) will take crucial decisions on spectrum matters 9