1. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 1 Digital Dividend Government Strategy of Greece Advisor to the General Secretary for Telecommunications and Post Ministry of Infrastructure, Transport & Networks n.katsanou@yme.gov.gr

2. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 2 Obligations re MoU (1) (Law 4046/2012) Regarding the Digital Dividend, the Government (and/or EETT): defines a legal framework in primary law that envisages a mandatory date for switch- off of analogue broadcasting for 30/06/2013 and a technologically neutral utilisation of the 800MHz band after the switch off, taking also into account the provisions of the draft Radio Spectrum Policy Programme (RSPP). [Q1 2012] Currently adoption by the Parliament of the Telecoms Package Law - Legal separation between network and content providers completes the studies on the evaluation of the value of the Digital Dividend and on the strategy for the granting of the Digital Dividend (800 MHz band). [Q1 2012]. Ministerial Decision to be issued on the use and exploitation of the DD based on the Advisors results resolves cross-border coordination issues with neighbouring countries. In alternative launches formal steps with a view to settle coordination (intergovernmental conferences, set up of intergovernmental working group) in order to define the available channels. If difficulties on international coordination make this date unfeasible, the frequency and broadcasting plans might indicate alternative channels for re-location of broadcasters, while continuing negotiations with third countries in view of the final assignment of frequencies to broadcasters and mobile operators. [Q2 2012] -practically not before Q3 2012

3. Obligations re MoU (2) (Law 4046/2012) launches the consultation for the amendment of the frequency and broadcasting plans. [Q2 2012] - The Digital TV Frequency Plan will be finalised Q3 2012 amends the frequency and the broadcasting plans, depending on the outcome/actual state of play of international coordination. [Q3 2012] adopts necessary secondary legislation for the assignment of licenses for broadcasting and for the establishment of licensing procedures, antennae specifications, etc. [Q3 2012] launch the public consultation on the tender procedure for the assignment of the digital dividend to broadband. [Q4 2012] – Auction of DD: Q2 2013 proceed to the tender for the assignment of definitive rights of use for broadcasting transmission. [Q1 2013] – Contest for DTT Licensing proceed to the tender procedure for the assignment of frequencies of the digital dividend, allocating and authorising the use of the digital dividend (800 MHz band) to Electronic Communications Services in line with EC Decision 2010/267/EU and in respect of the deadlines and procedures of the RSPP. [Q2 2013] - Auction 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 3

4. Important dates for Greece According to Troika MoU Contest for DTT Licensing : 1 st quarter 2013 Auction of 800 MHz band: 2 nd quarter 2013 Switchover:30/6/2013 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 4

5. Summary of actions needed Ministerial Decision to be issued on the use and exploitation of the DD based on the Advisors results Currently adoption by the Parliament of the Telecoms Package Law - Legal separation between network and content providers Completion of the final digital TV frequency plan International frequency coordination with our telecoms neighbors Licensing of broadcasters Removal of military forces from DD Auction of DD 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 5

6. 6 DIGITAL FREQUENCY PLAN (1) The study has been assigned to the National Technical University of Athens Timescales: Mid May: draft digital frequency plan & draft for the digital dividend Mid August: final version of digital frequency plan & final version for the digital dividend

7. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 7 DIGITAL FREQUENCY PLAN (2) Principles: Optimisation of spectrum Creation of digital dividend Migration of the army to alternative options Conformity with ITU requirements Continuous consultation with all stakeholders involved through a Working Group

8. Auction of the 800MHz band Six European countries have auctioned the 800 MHz band Results in the following table (source Analysys Mason) 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 8

9. Greece – TV Broadcasting(1) Analog Terrestrial Television Market Structure Public owned broadcaster ERT with 3 main programs national coverage. (Regionally transmits additional programs) Eight (8) national coverage private owned broadcasters 1 program each 126 regional and local coverage analogue broadcasters 2 pay TV terrestrial platforms Satellite and IP-TV 2 providers of satellite TV 3 providers of IP TV 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 9

10. Greece –TV Broadcasting (2) The country is currently running the transition phase (digital and analog transmissions coexist) The relevant common ministerial decision prescribes 23 sites for digital transmission Currently digital transmissions from 12 out of 23 sites. Network providers for serving content providers ERT public owned broadcaster DIGEA serves private owned national coverage broadcasters 5 more registered under the general license regime 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 10

11. Greece Mobile Market Three (3) mobile operators. Use of spectrum in 900, 1800, 2100Mhz 15,25 million connections (providers data for 2011) 380M in recent spectrum auction (2x35 MHz in 900, 2X20MHz in 1800 ) 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 11

12. Greece Mobile Auction results Vodafone: 2x15 MHz @ 900 MHz and 2x25 MHz @ 1800 MHz 168.502.000 Wind: 2x10 MHz @ 900 MHz and 2x15 MHz @ 1800 MHz 93.200.000 Cosmote: 2x10 MHz @ 900 MHz and 2x35 MHz @ 1800 MHz 118.833.000 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 12 ΠΑΡΟΧΟΣGSM 900MHzDCS 1800 MHzPRICE () Vodafone2x15 MHz (6 blocks ) 2x25 MHz ( 2 blocks ) 168.502.000 Wind2x10 MHz ( 4 blocks ) 2x15 MHz 93.200.000 Cosmote2x10 MHz ( 4 blocks ) 2x35 MHz ( 2 blocks ) 118.833.000 ΣΥΝΟΛΟ 298.280.000 82.255.000 380.535.000

13. Digital plan RRC 06 Greece is divided in 34 allotment areas An allotment area is a planned service area intended to be protected against interference Allotment planning serves mainly SFN approach 10,5 frequencies on average per allotment area 357 frequencies in total 36 in VHF (on average ~ 1 per allotment area) 321 in UHF band Most of frequencies planned in RRC 06 for Greece under the assumption of RPC2 :portable outdoor reception RN2 :suitable for small area SFN 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 13

14. Allotment areas Greece 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 14

15. Spectrum budget: Mobile vs DTT UHF Band 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 15 ScenarioDTTMobile broadband 470-862MHz to DTT 357 frequencies ~10,5 freq per allotment - 790-862 to Mobile broadband 316 freq ~9,3 freq per allotment 2x30MHz 790-862 plus 694-790 to Mobile 238 frequencies ~7 freq per allotment 2x30MHz plus up to 2x45MHz

16. TV Separation of network & content Spectrum reserved for armed forces will alter proportionally the above spectrum budget Capacity of DTT can be estimated by assuming 6 SD channels (at least) or 3HD channels per frequency. Network provider will be assigned frequency rights offer transmission services to content providers Ministry will provide the available frequencies for DTT in accordance with RRC 06 plan EETT will run an auction procedure to assign frequency rights to network providers NBC will license content providers 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 16

17. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 17 Advisory support for the Hellenic Republic In order to assess the options for the management of the rights through concession agreements, for the following frequencies: digital dividend spectrum (i.e. 790–862MHz, the so- called 800MHz band) UHF spectrum bands IV and V 2500–2690MHz frequency band.

18. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 18 The tasks of the study Review the current market conditions and provide an analysis of the demand forecast for: digital dividend spectrum UHF spectrum bands IV and V 2500–2690MHz frequency band.. Conduct a valuation of the relevant concession rights. Recommend available options for the exploitation of the spectrum property rights. Assist the Hellenic Republic in the design of the selected transaction(s) for the award of the identified bands.

19. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 19 ANALYSYS MASON Modelling Scenaria (1)

20. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 20 ANALYSYS MASON Modelling Scenaria (2)

21. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 21 ANALYSYS MASON FINDINGS the largest welfare impact from use of spectrum derives from the mobile, rather than the DTT, market.

22. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 22 ANALYSYS MASON CONCLUSIONS (1) KEY FINDING: there is a significant benefit to the Greek economy of around EUR3.5 billion if part of the UHF band (800 MHz band) is awarded for mobile use, rather than for DTT the total economic impact would be around EUR26.2 billion, over a period of 20 years: ~ EUR15.9 billion generated from mobile services EUR10.3 billion is derived from the digital switchover The value generated if all available UHF spectrum is awarded for DTT use is EUR11.0 billion

23. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 23 ANALYSYS MASON CONCLUSIONS (2) The economic value for DTT is slightly higher if DVB-T2 is used to accommodate HD programmes in one multiplex than if DVB-T is used. The total economic value also increases if we assume a mixed SD/HD use of DTT multiplex capacity, rather than assuming all multiplexes are used just for SD. If the 700MHz and the 800MHz band were to be allocated for mobile use in Greece, a further EUR1.0 billion of economic benefit is derived, assuming the entry of a fourth operator in the Greek market. the loss of value from the entire 700MHz band not being available for mobile services, as a result of military systems occupying part of this band, is around EUR1.6 billion, loss of value being smaller if not available for DTT, around EUR326 million. CONCLUSION: optimal configuration would be mixed use of the UHF spectrum, with the 800MHz band being allocated for mobile use.

24. 1st CEE REGIONAL MEETING BUCAREST 29/3/2012 24 ANALYSYS MASON CONCLUSIONS (3)