1. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 1 Mobile television Regulatory and Market Issues The French case François Rancy rancy@anfr.fr ASBU, Tunis, 30 April 2009

2. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 2 DTT development in France 2005 2006 2007 Source: CSA 85 % of population 35 % of population End- 2011: 95% of population

3. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 3 Digital broadcasting CSA Spectrum and digital dividend allocations in France 72 MHz Déf Mobile- ARCEP 320 MHz Digital dividend for Mobile services Digital dividend for broadcasting: more programs more coverage HDTV Mobile TV

4. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 4 DTT coverage extension Objective : ensure as many people as possible have access to DTT before analog switch-off DTT coverage must reach 95 % on a national lever and 91% in each regional administrative subdivision New services roll out Objective : increase the variety of services offered on DTT Additional national and regional programs High definition services started on 30 October 2008 Mobile Television (Mobile Personal television) DTT development strategy Based on Law (5 March 2007)

5. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 5 The regulatory agenda for mobile TV - 5 - Technical decisions Broadcasting : DVB-H and MPEG4 ESG standard : IPDC No CAS standard Audiovisual bill March 5, 2007 Audiovisual bill March 5, 2007 Gov decision on standards September 24, 2007 Gov decision on standards September 24, 2007 CSA consultation Publication of main findings June 15, 2007 Publication of main findings June 15, 2007 Beginning of selection process November 6, 2007 Beginning of selection process November 6, 2007 Launch Mobile TV regulatory framework Similar to DTT Licenses awarded to broadcasters through a comparative selection process No spectrum fee nor auction procedures Broadcasting and production quotas Specific anti trust rules Discussion and working groups with industry Authorisation date Selection procedure Consultation General agreement on the possibility to launch Mobile TV on the available resource But no agreement on the business model Necessity to organize working groups with the players before moving on Comparative selection procedure Coverage : 30% at T0 + 3 years ; 60% at T0 + 6 years 13 services + radio + interactive services Selection criteria : adequate programming ; coverage and quality of reception Where we are now

6. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 6 The selection procedure Negotiation between mux op and tower companies - Mobile TV network roll out January 2008 Tender procedure closure October 2008 Mobile TV services licensing April 2008 Publication of a short list of candidates 2010 ? Commercial start Tender procedure Network roll out

7. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 7 Selected DVB-H TV programs Limit the risks of a lack of appeal to consumer of this new medium, by selecting programs which are already attractive for the consumer (DVB-H line up = 48 % of national TV audience) Take into account the specificities of mobile TV with appropriate thematics (sport, information) or some new and innovative projects (Europa Corp TV) Ensure pluralism by diversification of the DVB-H program broadcasters (2 authorizations for each group, whereas 3 is the limit) 3 objectives for the selection

8. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 8 The access fees are an essential component for the BP Subscription fees, perceived by service retailer Fixed amount by device (unconnected and/or connected) Difficult negotiations between broadcasters and mobile operators Hypothesis : 6.5 M subscribers in 2012 DVB-H broadcaster BP : a hard to reach equilibrium Negotiations stalled since October 2008 Commercial negotiation for the distribution of the DVB-H programs

9. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 9 Roadmap for Mobile TV deployment Mobile TV roll-out Regulatory obligation to reach a coverage of 30% of pop in 3 years CSA has published a list of 30 urban area to reach this objective CSA has proposed a spectrum planning and TV protection control process, which involves both the CSA and the multiplex operator But discussions are under way regarding : The details of the planning process (allotment) The coverage priorities and sequence Head-end specifications The CSA has proposed a technical framework as technology neutral as possible Every CAS or ESG technology combination could be accommodated Difficult discussions between mobile operators and broadcasters The devices industry waits for final specifications

10. DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 10 Under the current regulatory constraints, no agreement on financing between program providers and mobile operators Mediator designated by government to facilitate agreement. Conclusions expected by end-April 2009 Among the questions to be answered : Possibility for a greater control of the mobile TV network and commercial roll-out by the players which are ready to invest (mobile operators and maybe some broadcasters) cost/benefit analysis of a change of technology in the UHF band (DVB-SH instead of DVB-H) taking into account the development of satellite services in the S band (EU authorizations expected end-April 2009) Conclusion