1. DIGITAL ALBANIA A HARD CHALLENGE Beograd 27-30 April 2009

2. Public audiovisual sector The public sector is run by the RTSH (Albanian Radio-Television). Public television includes: 1 national television network : TVSh (Analogue terrestrial) 3 regional television networks (Analogue Terrestrial) Public Radio includes: 2 national stations (FM) 3 regional stations (FM) 1 satellite program

3. Private audiovisual sector Radio: 2 national radios FM (Top Albania Radio and +2 Radio) 53 local radios (FM) Television: 3 general national television networks: Klan TV, TV Arbëria and Top Channel (Analogue Terrestrial) 73 regional or local television networks (1 town up to 4 districts) of which 3 are news channels (Analogue Terrestrial) 44 cable networks, and 4 satelite networks (ALSAT, DIGITALB, Supersport, Tring).

4. Current digital networks DIGITALB DVB-T - Operates without a license Since July 2004. - Uses 4 frequencies over almost one third of the territory for broadcasting 38 programs. (9 to 10 programs per MUX, while the average number of programs is 5 to 7 channels - The number of subscribers is not known, however it is bigger than 100 000 households. - Decoders are locked for the frequencies other than the frequencies used by DIGITALB. - The frequencies used from DIGITALB are not respecting the Frequency Plan GE06 D DIGITALB MOBILE DVB-H DIGITALB does also broadcast, without a license, 16 personal mobile television channels (DVB-H norm) in an anologue frequency, which can be received by mobile phone (brand: LG model: KU 950), being sold by DIGITALB for 350. TRING DVB-T Broadcasts a package of programs from Dajti site only using one frequency within the Frequency Plan GE 06 D SHIJAK TV DVB-T Broadcasts a package of programs from Dajti site only using one frequency within the Frequency Plan GE 06 D

5. DIGITALB COVERAGE Current digital networks

6. DIGITALB 2. ORG. SCHEEM Current digital networks

7. DIGITALB MOBILE COVERAGE Current digital networks

8. TRING COVERAGE Current digital networks

9. SHIJAK TV COVERAGE CURRENT SITUATION ON DIGITAL BROADCASTING

10. One of the priority objectives of NCRT for the year 2008 was the licensing of the first digital operators - The parliamentary Resolution forcing the licensing of unlicensed operators - In an not fully completed legal framework - The switch over strategy not defined In the November 2008,The NCRT announced the organization of the public competition of candidatures for licenses to build and operate 3 private national digital terrestrial networks. (Council Decision nr.726, date 08.09.2008 About the organization of the competition of the candidatures for private operators of national digital terrestrial networks The deadline for presenting and the opening of applications, was set the date 24.11.2008. There were 10 applicants registered With the request of the candidates, the date of the competition was postponed a couple of times. In the last date, 21.01.2009, the competition failed, because none of the candidates were present.

11. Reasons of failure to license digital networks -Lack of a well defined legal framework -Lack of an approved strategy -High financial requirements (Euro 10 000 000 of assets, 10% warranty, Yearly fee, Auction, etc) -The cooperation between operators and service and content providers, unclear -Refusal to introduce MPEG 4 instead of existing MPEG 2 - The hope of decoder subsidizing from the state -2009 is the electoral year and it is not expected a relevant intervention to bring the situation under the law framework

12. Legal reform in the media field The legal reform in the media field was initiated by the Assembly, during 2008, with the drafting of a new law, aiming the improvement of the legal framework and bringing the media-related Albanian legislation in line with the standards and best practices of European countries. The legal reform in the media field was initiated by the Assembly, during 2008, with the drafting of a new law, aiming the improvement of the legal framework and bringing the media-related Albanian legislation in line with the standards and best practices of European countries. NCRT, as one of the stakeholders, has presented its proposals for the draft law. One of the main proposals of NCRT is to merge in one the two actual laws, namely No 8410 On public and private radio and television and 9742 On digital broadcasting. NCRT, as one of the stakeholders, has presented its proposals for the draft law. One of the main proposals of NCRT is to merge in one the two actual laws, namely No 8410 On public and private radio and television and 9742 On digital broadcasting. In December 2007, the Assembly approved the draft laws On ratification of Final Acts of Regional Radio communication Conference for planning of the digital terrestrial broadcasting service in parts of regions 1 and 3, in the frequency bands 174-230MHz and 470-862 MHz (RRC-06), and On ratification of Final Acts of Regional Radio communication Conference for the revision of the Stockholm 1961 Agreement. Ratification of these acts paves the way for the implementation of digital broadcasting in Albania. In December 2007, the Assembly approved the draft laws On ratification of Final Acts of Regional Radio communication Conference for planning of the digital terrestrial broadcasting service in parts of regions 1 and 3, in the frequency bands 174-230MHz and 470-862 MHz (RRC-06), and On ratification of Final Acts of Regional Radio communication Conference for the revision of the Stockholm 1961 Agreement. Ratification of these acts paves the way for the implementation of digital broadcasting in Albania. NCRT has approved a Regulation on the licensing of digital broadcasting, in April 2008. However, in order to start procedures for the licensing of the first terrestrial digital operators, in addition to this Regulation is also necessary the conclusion of the Strategy for the transition to digital broadcastings, which, in meantime, is in the drafting process. NCRT has approved a Regulation on the licensing of digital broadcasting, in April 2008. However, in order to start procedures for the licensing of the first terrestrial digital operators, in addition to this Regulation is also necessary the conclusion of the Strategy for the transition to digital broadcastings, which, in meantime, is in the drafting process.

13. Digital networks characteristics

14. RPC and reception type RPC 1 Fixed antenna RPC 2 Portable outdoor and mobile RPC 3 Portable indoor Type of networkOpen Geometry of service areaHexagon Number of transmitters333 Geometry of transmitter latticeTriangle Distance between transmitters d (km) 4025 Service area diameter D (km) 5333 Tx effective antenna height (m)150 Tx antenna patternNon-directional e.r.p.* (dBW) Band III24.126.634.1 Bands IV/V31.839.046.3 Digital networks characteristics

15. Rezultatet e konferences Main Characteristics for DVB-T 1.Network Type: SFN 2. System Variant:C2 - Modulation Type 64 QAM - Guard Interval:¼ 3. Reference Network: RN2 Service Area Diameter: 30- 40 km 4. Reception type: Mobile 5. Raster for DVB-T in Band III: 7 MHz GE 06 D Plan for Albania

16. Kapacitetet Transmetues Digital broadcastings in Band III 174-230 MHz T- DAB and DVB-T T- DAB T-DAB Sub Allotment In Tirana City 8 DVB-T Allotments (VHF) Coverage Number Allotment 01 (Nord) Allotment 02 (South) Tirana Sub allotment (03) 111 D11 B11 A 212 B12 C12 A Blloqet e frekuencave per allotmentet t-dab vhf GE06 D Plan For ALBANIA DVB- T T- DAB Transmission Capacities GE 06 D Plan for Albania

17. Kapacitetet transmetues GE06 D Plan For ALBANIA Digital broadcastings in Band IV and V 470 - 862 MHz DVB-T 11 DVB-T Allotments (VHF) Transmission Capacities GE 06 D Plan for Albania

18. Assignments GE 06 D Plan for Albania

19. CALCULATION OF COVERAGE National Digital Terrestrial TV Network NR-001K COVERAGE Venia ne pune e stacioneve transmetuese do te behet konform procedurave te nenit 5 te akteve finale te marreveshjes GE-06.

20. Kapacitetet Transmetues Number of coverage Allotmenti 01 (Veri) Allotmenti 02 (Jug) Sub allotmenti i Tiranes (03) 111 D11 B11 A 212 B12 C12 A FREQUENCES GE 06 D Plan for Albania

21. NCRT has initiated the process of preparing a draft-strategy aiming to ensure a sustainable transfer from analogue to digital broadcasting. In realizing this process, the NCRT is working in close cooperation with the OSCE presence in Albania. In the framework of this cooperation, an expert from the CSA, France, has evaluated the Albanian audio-visual sector and produced a report stressing the main issues to be addressed in order to have a well-defined strategy. The key conclusion of the report is that, the ambitious project of transfer to digital broadcasting introduces the need for cooperative relations between the NCRT and the interested groups, operators in particular. European experience shows that the harmonic transfer to digital broadcasting requires a broad consensus between the involved parties, especially during the process of approval of a strategy of common interest. Task Force

22. For this purpose, NCRT has organized, during the period April –June 2008, and December 2008 a number of local and national conferences, by inviting all the stakeholders, private operators, state institutions and international organizations, to share with NCRT their comments and opinions concerning with transition to digital system. After accomplishment of the consultation process, NCRT has already finished the first draft, which is submitted to all state institutions and other stakeholders concerned with. The draft proposes the measures to be taken to insure the transition to full digital broadcasting within 2012, as the law in force provides.

23. NETWORK OPERATOR CLASSIFICATION Nr.ClassificationCoverage Area Number of coverages occupied Number of possible networks (SFN or MFN) 1 National public Operator Albanian Territory2 2 (Defined by the law) 2 Operatorë Kombëtare Privatë Albanian Territory33 3 Regional Operator type 1 Tiranë-Durrës - Fier0.31 4 Regional Operator type 2 2 regions0.74 5 Local Operator 1 Region111 6 Tirana city operator Tirana City and sourroundings 17 Spare: 1 National Coverage and some local coverages Strategy for conversion to digital broadcasting broadcasting

24. Nr.Allotment Analog Network Licensing Area TOTAL ANALOG NETW.L Digital networks needed 1 Region 4 Region s Repeat ersNationalMPEG 2MPEG 4 1Shkodër 71241421 2Kukës 01 4511 3Diber 2 4611 4Lezhe 35 41221 5Tiranë 11163434 2 6Elbasan 27241521 7Fier 55141521 8Berat 41141021 9Korce 51 41021 Gjirokastër 4 241021 11Vlore 72341621 12SubTiranës 0 0 DIGITAL CAPACITIES NEEDED TO SUPPORT EXISTING ANALOG NETWORKS Strategy for conversion to digital broadcasting

25. broadcasting INVESTMENT ASSESMENT

26. Strategy for conversion to digital broadcasting INVESTMENT ASSESMENT

27. KOSTOT E PERAFERTA Investment for the construction of the network Strategy for conversion to digital broadcasting

28. KOSTOT E PERAFERTA Needs for decoders Strategy for conversion to digital broadcasting

29. Decoder subsidies evaluation Nr.Zona Allotme nti Popullsi aPërqindjaFamilje Subvencioni shtetëror (Euro) 100%50%37% 1Q.Tiranë – Q.DurresAL005D79178725.84158357633428031671602343680 2Qarku i FieritAL007D38254412.4976509306036015301601132320 3Qarku i ElbasanitAL006D36863512.0373727294908014745601091160 4Qarku i LezhesAL004D1735995.67347201388800694400513840 5Qarku i ShkodresAL001D2564728.375129420517601025880759160 6Qarku i VloresAL011D1929826.3385961543840771920571240 7Qarku i KorcesAL009D2651828.665303621214401060720784920 8Qarku i BeratitAL008D1930206.3386041544160772080571320 9Qarku i DibresAL003D1893766.18378751515000757520560560 10Qarku i GjirokastresAL010D1334324.36266861067440533720394960 11Qarku i KukesitAL002D1167433.8123349933960466960345560 Territori i Shqipërise 306377210061275424510120122550809068720 Strategy for conversion to digital broadcasting

30. Digital islands

31. Building the Local Platforms Digital islands Idea: Current analogue operators will be authorized to build 1local digital network without going through the competition process. Advantages: - Immediate migration of existing analogue programs in the digital platforms. - The costs of building and maintenance are shared. - The spare (not used) capacity can be commonly utilized to ensure supplementary income Disadvantages: - Requires an agreement between the participants. - Not all existing operators might be capable to afford their share of investments. Strategy for conversion to digital broadcasting

32. Alternatives 1. Middle-term soft loan guaranteed by the state for all shareholders. 2. Shareholders which can afford the costs agree to cover the costs for the shareholder which can not, provided that the later pays a reasonable yearly fee and is exempted from the common mux exploitation. 3. If the deal between the participants its not achieved, the competition for the selection of the operator of the local network will be organized. 4. The State build the network and the program operators use it against a yearly payment controlled by the Regulatory Authority. 5. Partial or full subsidizing (according to the approved standards) by the Development fund of. Digital islands Building the Local Platforms Strategy for conversion to digital broadcasting

33. Current analogue operators are authorized to build 1 local network (continued) Implementation of this version requires: - Law amendment to avoid the competition procedure of the candidatures for license of local network operator (for local platforms only). - New License Regulation which obliges the current analogue operators to continue to broadcast their programs free to air after migration to digital platforms. - Specialized enterprise for building and operation of the networks for audiovisual broadcast. - Decoder Subsidizing from the state. Digital islands Building the Local Platforms Strategy for conversion to digital broadcasting

34. The creation of the Digital Development Fund The fund will be created: 1. By a part of the payment from licensing of audiovisual operators (Network Op, program and services Op) 2. Funds from the State budget. 3. Donations It will have a temporary duration: until 2012 Conditions - It will serve to support the building of local digital networks, to sustain current analogue programs that will continue to broadcast free to air. - There will be no subsidies for program operators. - After the 2012 there will be no need for subsidies to avoid the deformation of the audiovisual market, already established. Strategy for conversion to digital broadcasting