Presentation on theme: "Poznań Media Expo Conference 2014"— Presentation transcript:
1 Poznań Media Expo Conference 2014 TV Day - The future of terrestrial television in PolandThe 700 MHz BandThe impact of UHF spectrum reallocation on TV markets in EuropeDarko RatkajEuropean Broadcasting Union09 April 2014
2 Consumer demand for TeleVision Television is the medium used most by Europeans: 87% say they watch it every day or almost every day and 97% at least once a week.Standard Eurobarometer 80, November 2013In 2012 every person in Poland watched on average 4 hours and 3 minutes of linear TV a day.2.7 mil. households (8 mil. viewers) in Polanduse DTT to access TV services.
3 Non-linear (OTT, HBB, VoD) Evolution of linear and non-linear TV viewing Average in the EU ‘Big 5’Non-linear (OTT, HBB, VoD)Linear TVSource: IHS – ScreenDigest: Cross-platform Television Viewing Time FY 2012
4 how is consumer demand for TV satisfied? TV reception by householdsSources:EU - Eurobarometer 396, Aug. 2013Poland – IHS, ScreenDigestNote: Adds to more than 100% as households may use more than one platform.% HH
5 The current role of DTTFree-to-air, live viewingNear-universal coverage (in many countries >98% of the population)Primary TV platform for 230 million viewers in the EU (46% population)More than 2000 TV channels in the EU (national, regional, and local)Efficient way to serve large audiences, affordableKey platform for Public Service MediaCoexistence of Public Service and commercial TV (both FTA and pay-TV)Synergies with other platforms (HbbTV, catch-up TV, second screen)Ensures market competition and consumer choiceResilient, essential infrastructure in emergency situationsThese benefits cannot easily be replicated on other platforms.
6 ebu views on terrestrial broadcasting EBU – Recommendation R 131Terrestrial Broadcastingin Europetech.ebu.ch
7 market demand for dtt22 channels in PolandSource: Mavise TV database
9 on spectrum management Spectrum allocations are a result of international negotiations (e.g. within the ITU and the CEPT)Frequency bands are divided amongst different radio communication services (e.g. broadcasting, mobile, aeronautical, satellite, ...)The actual use of the spectrum is decided nationallyIt must be in accordance with the allocations in a given frequency bandIn some cases bilateral coordination is required before the frequencies can be assigned to usersHarmonisation of the spectrum use is beneficialeasier coordination and cross-border operationeasier interference managementeconomies of scale...Two-step process
11 the impact of the loss of the 700 MHz band on terrestrial broadcasting Direct impact (short to medium term):Transitional issues to free the band from DTTcosts for broadcasters and the viewersrisk of disruption of servicesLoss of 30% of the bandwidth capacity (43% if the 800 MHz band is taken into account )reduced platform capacityreduced scope for future developmentNone of this is in the interest of the European audiovisual industry or the consumers!Indirect impact (long term):Weakened DTT platform; less competitionNegative signal about the future of DTTlack of certainty for future investmentsno innovation; risk of decline, end of DTTloss of the only free-to-air platform with potentially universal reachNot the same in all countries!
12 Questions for the regulators How important is DTT in your country?penetration – how many households are receiving terrestriallymarket potential – how much content is needed for a viable DTTPublic value of DTTis there awareness amongst decision makershow is the pubic value protected and promotedNational audiovisual media policyis there a commitment to Public Service Broadcasting and Free-to-Airwhich infrastructure will support the public policy objectiveswhat is the development roadmap for this infrastructureAre there any alternatives to DTTcan they deliver the same benefitswhen will they be availableat what costshow to migrate the audiencesThese questions must be raised and answered before any decisions on the radio spectrum are taken!
13 recommended approach to decide on the 700 MHz band De-couple the decision on the actual use of the 700 MHz band in Poland from the ITU process leading to mobile allocationScrutinise the mobile spectrum requirements before considering any additional spectrum allocationVerify the assumptions about future demandHow much traffic growth is economically viable?The use of the already allocated spectrumCost / benefit analysis to be done before taking a decisionOverall social and economic impact of the changeIncremental benefits of using the 700 MHz band for mobile services?Take the necessary time to prepare the decision, there is no urgencyMobile industry is busy deploying networks in the 800 MHz bandLack of demonstrated market demand for more UHF spectrumThere are number of ways to increase mobile network capacity without additional UHF spectrum
14 in the event of re-allocation of the 700 MHz band to mobile Ensure ...Planned and well managed transition processRealistic time frame for freeing the band from DTT transmissionsRecovery of the costs incurred by broadcasters and the viewersReplacement capacity for the affected DTT servicesReplacement capacity for the affected PMSE services (wireless microphones currently operating in the band)Protection of DTT and PMSE services below 700 MHz from the mobile interferenceLong-term availability of the remaining part of the UHF spectrum for broadcasting services to facilitate future developmentContinuation of free-to-air TV servicesAccess to the new mobile broadband platform for public service media
15 thank you for listening to me! questions?Darko Ratkaj
17 Costs of distribution of media services The InternetCosts of distribution of media servicesCostsBroadcast platformsNumber ofconcurrent users
18 progressive QoS degradation Capacity available to individual usersCapacityper userBroadcast platformsprogressive QoS degradationMinimum capacityrequired for a given serviceThe InternetNumber of concurrent users
19 Data volumes delivered via DTT compared to the Internet. Cisco VNI 2012: Broadband traffic forecast in the EUPB/monthThe total amount of data delivered via DTT networks in 2012Broadband networks are not capable of taking over a substantial part of services (and audience) that are currently delivered over terrestrial broadcast networks. This is because of their:- insufficient capacity- incomplete coverage- too high costsData in this slide data represent the following:1. Fixed broadband traffic as predicted by Cisco VNI 2012 for Western Europe (http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c pdf).2. Mobile broadband traffic as predicted by Cisco VNI 2013 for Western Europe (http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c pdf).3. The data volume delivered via DTT networks in 2012 is based on the following assumptions for terrestrial broadcast networks:average TV viewing: 4 h /day per householdin the EU27 countries: mil households receive terrestrially1 hour of SDTV @3 Mbps => 1.35 GB1 hour of HDTV @7 Mbps => 3.15 GBmix of broadcast programmes in 2012: 80% in SD, 20% in HDIn reality the DTT traffic has not been delivered in a unicast (one-to-one) mode and therefore cannot be directly compared with broadband traffic.However, if the same TV services had been delivered over one-to-one connections (instead of DTT broadcast) the equivalent traffic would have been: PB/month
20 How much video content is delivered over broadcast networks compared to the Internet?