Challenges and Future of Terrestrial Broadcasting Bernard Pauchon BNE Vice Chairman & Chargé de Mission, TDF CEO soffice

Challenges and Future of Terrestrial Broadcasting Bernard Pauchon BNE Vice Chairman & Chargé de Mission, TDF CEO soffice

Agenda About Broadcast Networks Europe The importance of DTT Challenges for future of DTT Opportunities and challenges resulting from technology innovation Spectrum is DTT oxygen, and oxygen for DTT future is at risk Current International and European challenges around spectrum for DTT What BNE is doing Conclusion

16 Members with activities in 22 countries A trade organization for Terrestrial Broadcast Network Operators for Radio and TV in Europe Long term opportunities for terrestrial broadcasting Current issues: Spectrum Interference Future services on the Terrestrial Broadcast Networks

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

Households receiving TV from terrestrial networks >75% 50-75% 25-50% < 25% Terrestrials - approx: 120 million households 275 million people 2-4 hrs / day Data not collected

TV Reception, EU27 Households Data from Eurobarometer 362, 2011. Adds to more than 100%. Households may use more than one platform.

DTT has a spectacular growth and is an innovative technology and a lively service From just a few channels per country to more than 50 digital channels including HDTV and 3DTV DTT in Europe serves 275 million people and provides 1800+ TV channels Free-to-Air Public Service, Commercial TV and Pay-TV About 200 Million DTT enabled receivers sold in Europe Kitchen-TVs, Bedroom-TVs, Second Homes, Caravans etc represent an additional significant share Simple to use and install, reliable and universally available Demand for linear TV is growing quite the reverse of common myths

DTT in Europe serves 275 million people and provides 2000+ TV channels.

Technical innovation is essential, but be careful and smart when using it! Spectrum per programme programme 99 DVB-T + MPEG2 Early DTT Today DVB-T + MPEG4 Early HDTV +Other DTT Other HDTV +Final DTT DVB-T2 + MPEG4 DVB-T2 + HEVC Time

Technical innovation provides opportunities, but also challenges! Opportunities Spectrum is a scarce resource, but is needed for introducing new services, so that the DTT platform keeps its attractiveness in comparison with other plaforms Use of T2 for countries not having yet DTT, or for introducing new services( i.e. HD) for countries not having it yet( UK, Sweden ) is the right thing to do Challenges The current context where there is pressure for finding additional spectrum for Wireless Broadband, leads to create pressure on the early DTT adopters for migrating towards the more efficient technology that is T2 But introducing new technology at the occasion of launching new services( what France, Italy, Spain did with MPEG4 for HD, and UK, Sweden with T2) is one thing, to migrate existing services is a completely different thing, and is equivalent to a transition from Analogue to Digital, WITHOUT ANY BENEFIT FOR CONSUMERS!

Spectrum is DTT oxygen, Sufficient oxygen for DTT future is at risk due to appetite of Wireless Broadband for facing wireless data traffic growth

The Spectrum issues for DTT on International and European scenes

WRC-12 decisions 700 MHz band( ITU WRC 15 agenda item 1.2) Decision that WRC 2015 will decide to have immediately a co-primary allocation of 700Mhz band between broadcasting and with mobile services This will create an opportunity for whoever wishes, but no obligation for whoever does not wish so Identify additional spectrum for IMT( ITU WRC 15 agenda item 1.1) For that purpose, ITU has decided to carry out work related to items 1.1 & 1.2, including compatibility studies between MS and other services, in a joint task Group( JTG 4-5-6-7) 13

BNE comments on WRC decisions BNE fully understand why African and Arab States have pushed for the WRC decisions 800MHz often currently occupied by various services Late introduction of DTT allows for doing this with DVB-T2, the most efficient Digital Television Standard, and hence the least spectrum consuming Why then should they spend money for clearing 800MHz band, when they have enough spectrum available below for deploying DTT services Europe is in a completely different situation: 800 MHz band has been ( or is to be) cleared from broadcast services, and services start to be deployed in this band: Europe is still to reap the full benefits of the 800 MHz band (and 900 MHz), and with this as already roughly same amount of spectrum for IMT as the other regions The case for more sub 1GHz spectrum for Wireless Broadband is unproven Consumers have embraced DTT and any further displacement of DTT services will likely cause considerable disruption and cost BNE considers it important to remember that there has been no commitment to a European decision to use 700 MHz band for mobile broadband as an outcome of WRC-12

EU spectrum activities EU has set up an RSPP, and spectrum inventory will be key for the implementation of this RSPP Efficiency of spectrum use and future needs under investigation, with the support of RSPG and different consultants so to meet EC July 2013 deadline for defining the methodology to be utilised by Member States Activities of the European Commission, RSPG and RSCOM RSCOM mandate to CEPT for studies related to700 MHz RSPG draft Opinion on Wireless Broadband CEPT/ ECC activities about future strategy for the use of the whole UHF band Some Administrations already ahead of any EU harmonization! Finland Italy 15

Other rumors contributing to challenge DTT spectrum DTT could better use spectrum with other network architectures? DTT could better use spectrum by using SFN? LTE could do everything?

What is BNE doing Challenge amount of wireless data traffic growth and ways to face it Show that DTT is well using spectrum Contribute to express needs for DTT spectrum Meet with EC Vice President Neelie Kroes Comment on RSPG draft Opinion on wireless broadband Participate to ITU, CEPT and EU activities Actively coordinate with other interested parties( EBU, DigiTAG, ACT )

Analysys Mason on the mobile data explosion Most mobile data growth forecasts are wildly exaggerated Fixed broadband soaks up a huge share of small- and mid-screen wireless device data. Long-term demand for bandwidth-intensive data in locations where the fixed/wi-fi default is not available is not great. Year to year mobile data traffic growth rate is declining 19 out of 20 surfpads sold in Europe are WiFi-only Ref. The collapse in the value of the mobile gigabyte: myth and reality. Analyses Mason Jan 6, 2012

GSM Base stations in central Amsterdam Source: www.wigle.net

Recorded WiFi networks along streets in central Amsterdam Source: www.wigle.net

Data traffic comparison DTT networks vs Cisco Mobile Traffic Forecast Data Traffic Consumed 2013 from DTT Networks for ONE standard Definition Television channel across EU27 120 mio households 4 hours per day (A conservative estimate) 19,4 EB/month Global Mobile Data Traffic Forecast ExaByte/month (1E+18) By region Cisco VNI Mobile 2013

Spectrum use Actual measurements of spectrum use show that services like FM radio, TV, GSM 900, GSM 1800, 3g and WiFi fill assigned spectrum well whereas other spectrum exhibits less actual FM Radio TV GSM 900 GSM 1800 3G WiFi Source: Valenta, V. et al. (2010) Survey on Spectrum Utilization in Europe

EU RSPP Spectrum Inventory The first results of the EC Spectrum inventory show that spectrum for TV is well and efficiently used in most EU member states. Certain other parts of spectrum can be seen to be barely or inefficiently used

DTT Networks: Cost efficient, Spectrum efficient, Reliable 0,1 2 per household per month to distribute up to 60 TV channels 24/7 with high Quality of Service Distribution cost per channel 0,01 per household per month BNE is currently conducting studies showing that using High Power/High Towers whenever possible is the most cost efficient way of DTT delivery ( white paper planned for Q2 2013)

Use of SFN networks Regional SFNs already in use, as well as seminational in critical cases( Italy) Requires lower power network architecture, hence increased cost for the service operation BNE white paper to be finalized in Q2 2013

Could LTE do everything? Certainely not for replacing DTT at home : The typical data volume limits in current mobile communications providers LTE contracts (e.g., 10 or 15 GB per month) would be exceeded after just a few hours of using high-quality audio-visual content on mobile devices. Users of a regular current LTE contract could watch 8 hours of SD video per month, the equivalent of less than three days of average TV viewing time. Ulrich Reimers (17 Jan 2013). Systems for mobile, wireless broadcasting. Presentation at the TKLM Mobile TV - Networks and benefits symposium. Technical University of Braunschweig The transmission of mass appeal content, particularly linear TV programmes, solely via mobile will not be possible at an acceptable cost even in the future neither for operators nor for consumers. What about for delivery to tablets PCs and similar devices? We have no technology [other than DTT] that has proven that it can [do]it» U.Reimers, March 12th, DVB World 2013 Among others( i.e.: M3 consortium-france), TDF(with B2M partners) is currently having trials and is assessing economical interest of the use of DTT for addressing data traffic offload by broadcast technology.

Spectrum needs for broadcasting(1/2) (quote from BNE answer to ITU questionnaire) Whilst the means by which you introduce DTT service enhancements(hd, 3D, 4K ) is likely to initially be via the widespread introduction of DVB-T2 services there is currently no plan to or timetable for the current services to be delivered utilising DVB-T2. Furthermore, since the spectrum ch. 21 60 is extensively utilised to provide existing services it is unclear how such a transition may be facilitated, i.e. where will the additional spectrum for any simulcast arrangements come from and this aspect needs to be considered within the long term provision of spectrum for terrestrial broadcasting, i.e. how can platform evolution be taken account of in future spectrum arrangement. Finally, whilst a move from DVB-T to DVB-T2( or FoBTV) service delivery would provide for spectrum efficiency gains in the long run, in the short term it is very likely that transitional spectrum would be needed to facilitate such a service / consumer migration and such a transition would take a number of years.

Spectrum needs for broadcasting(2/2) Whilst gains associated with a move to DVB-T2 could make it easier to enable the introduction of DTT service enhancements, the extent to which these services are introduced will determine the long term requirements of spectrum for the provision of terrestrial broadcast services. It is therefore difficult to be definitive over the exact amount of spectrum needed. What is meant by enhancement of services? Introduction of HD: depends on countries, but many have already HD 4K: not only a question of resolution, but may be needed for having 3D without glasses What we do not know yet However, it is likely that the amount of spectrum necessary will not be dissimilar to that which will be utilised after clearance of the 800MHz band, i.e. ch. 21 60, recognising that spectrum efficiency gains realised through the adoption of DVB-T2 and future higher performing standards will be offset by the higher bandwidth requirements of new enhanced services.

Key messages related to the 700MHz band ( BNE meeting with EC Vice President N. Kroes) 1. Terrestrial Broadcasting is efficient, drives competition and is the consumer s choice approaching 60% of European households for primary TV reception 2. DTT quality of service and capacity to continue to innovate is based on the availability of the necessary amount of Spectrum. 3. The consideration of removing part or totality of the 700 MHz band from broadcasting use lead to key concerns for Broadcast Networks Operators, and more generally for the broadcasting industry as a whole

Key BNE comments on the RSPG draft Opinion on Wireless Broadband Important role played by DTT across Europe Further displacement of DTT services out of existing spectrum should be subject to detailed Cost-Benefit Analysis Refarming of existing IMT spectrum which is currently occupied by legacy systems, e.g. GSM and EDGE, should be prioritised Greater emphasis on the importance of Wi-Fi offload and Small Cells to deliver the growth in data traffic Due consideration given to the extent to which traffic is truly mobile, i.e. subject to cell handover Greater scrutiny be given to growth forecasts for wireless broadband traffic with key forecasts recently revised down. Wireless Broadband is not limited to Mobile Broadband, and includes WiFi as well as satellite. The goal set in the RSPP of identifying 1200 MHz spectrum for Wireless Broadband by 2015 is already met

Last but not least: Activities related to the whole UHF band

CEPT / ECC activities related to the future of the whole UHF band In the context of the ITU WRC 15 Agenda item 1.1( finding more spectrum for IMT ), the CEPT / ECC /CPG which is in charge of defining European Common Position for ITU activities is looking for considering or not the whole UHF band for being allocated on co-primary basis to IMT This has lead ECC to consider to undertake strategic studies on the future of the whole UHF band( this is also part of draft EU RSPG Opinion) Decision to create an ECC task group will be taken in June, based on current preparation by correspondance

BNE comments on the issues related to a future strategy for the whole UHF band DTT needs spectrum certainety to innovate and develop new services( HD, 3D, UHD ) Debates around 700 MHz are already creating disturbances for the DTT service. There is no need to further add on this The 470-694MHz band has been tentatively identified by RSPG as a possible long term option for Wireless Broadband services subject to convergence between wireless broadband and broadcasting services, even though the notion of convergence has neither been substantiated nor demonstrated to be practical. Further, a number of Administrations have indicated that the UHF band should be retained for DTT when responding to previous ITU and RSPG questionnaires ( i.e.:the UK regulator Ofcom has recently stated that the 470-694MHz frequency range in particular will be relevant and necessary for DTT services in the UK until 2030 and beyond)

CONCLUSION Spectrum is DTT oxygen, Let s all interested parties of the Broadcast Industry, at International, European and National levels work together for ensuring that DTT will keep sufficient oxygen for continuing to best serve European citizens Cooperation is already ongoing between BNE, DigiTAG, EBU, Commercial TVs at International and European levels, but let us work all together for actions at National levels which are crucial, since, at the end, decisions are taken by National Administrations

Thank you for your attention www.broadcast-networks.eu