Spectrum in Transition
Analogue to Digital Broadcasting
Regional Seminar - economic and financial aspects
of telecommunications Study Group 3
Regional Group for Latin America and Caribbean
(SG3RG-LAC)
SG3RG - LAC – EL SALVADOR 2011
Adrian Foster
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Definitions: ASO, DSO, DD
Digital Switch-over (DSO)
•
Digital Switchover is a transitional process where analogue
television broadcasting signals are converted to and replaced by
digital television services.
Analogue Shut-off (ASO)
•
Analogue Shut-off occurs once DSO is completed (GE06 June 2015)
Digital Dividend (DD):
•
The amount of spectrum in the VHF and UHF bands that is above
that amount nominally required to accommodate existing analogue
TV programmes and that might be potentially freed up in the
switchover from analogue to digital television.
SG3RG – LAC, EL SALVADOR 2011
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DSO Migration Models
 The migration to digital can be divided into three distinct
phases:
• Digital Switch‐on: The introduction of digital
broadcasting services involving the development of the
digital broadcasting infrastructure – including
introduction of a signal distributor, availability of
set‐top boxes and/or integrated digital receivers.
• Simulcast Period: In order to ensure that television
viewers without set‐top boxes are not deprived of
services, analogue and digital will have to be broadcast
in tandem for some period – the ’simulcast’ period
• Analogue Switch‐off: Termination of analogue
transmission which assumes the completion of the
switchover process, so that it will not occur, before
almost all households can receive digital signals and
have digital receivers
SG3RG – LAC, EL SALVADOR 2011
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Spectrum in Transition
 Key question is how will spectrum be
used and by whom?
 Trends in the Use of VHF and UHF
• Trends in Media Usage
• Trends in Media Delivery
SG3RG – LAC, EL SALVADOR 2011
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Trends in Media Usage
 Trends in Media Usage:
•
Developed Markets - Traditional terrestrial TV viewership in decline
being replaced by increased Internet TV.
•
TV and radio continue to be primary means of news and
entertainment access for elderly and underprivileged.
 Ofcom’s Communications Market Study
•
•
•
Television - declining interest to many 16-24 year olds - on average
one hour less per day than the average;
Instead, the Internet plays a central role in daily life; more than 70%
of 16-24 year old Internet users use social networking websites
(compared to 41% of all UK Internet users).
Compared to 2007, a > number of 16-24s (8 percentage points) and
over 55s (7 percentage points) say that watching TV is the activity
they would miss the most.
ANRCETI 2010, CHISINAU, MOLDOVA
ANRCETI 2010 –
Chisinau, Moldova
Trends in Media
Delivery
 The trend away from accessing TV
through terrestrial means will likely
continue in developed countries and less
so in developing countries.
• In developed economies, new services such
as Digital Mobile TV access count as an
emerging market - great a potential as
Internet Radio.
 Terrestrial radio - continue as the leading
means of accessing digital throughout the
period with Internet Radio showing a
dramatic rise from its inception in the
early 2000's and appears on track to
overtake terrestrial radio sometime in the
future.
Trends in Media Delivery
Source: Bridge Ratings LLC, 2010
SG3RG – LAC, EL SALVADOR 2011
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Regulatory Frameworks Differ
 Circumstances are
different in the three
ITU regions - Region 1
has multiple sovereign
markets and attempts a
unified approach;
Region 2 developments
have been dominated
by the US and often
reflects a single market
approach whereas in
across Region 3
encompassing Asia,
Pacific, Australia and
Oceania, there multiple
sovereign markets and
no real unified
approach.
SG3RG – LAC, EL SALVADOR 2011
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Total Value Framework
 Even in highly liberalized

markets that allow for more
flexibility through service
and technology neutral
licensing, policy makers and
regulators usually consider
social, cultural and
developmental objectives.
Simply put there are tradeoffs between economic and
value considerations and
access to broad forms of
media and content.
A clear analytical framework
is needed where the
potential benefits and the
potential costs of
intervening are considered
and measured
Source: Ofcom, Digital Dividend Review, 2007
SG3RG – LAC, EL SALVADOR 2011
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Market Led vs. Intervention
Trade Off between Market Led and Interventionist
Approaches
 Regulators can chose
between market led and
regulatory intervention.
Even in highly liberalized
markets that allow for
more flexibility through
service and technology
neutral licensing, policy
makers and regulators
usually consider social,
cultural and
developmental objectives.
Simply put there are
trade-offs between
economic and value
considerations and access
to broad forms of media
and content.
Source: Ofcom, Digital Dividend Review, 2007
Valuing the Digital Dividend
 Europe has lead the way in studying the value
of the Digital Dividend in member economies,
believing that harmonization efforts at a
National and European level can help to
achieve significant benefits.
"As a result of the switchover from analogue to digital TV,
tremendous spectrum resources will become available for
other uses, especially for wireless broadband. The
incremental value of using the Digital Dividend spectrum
for wireless broadband across the EU is estimated to be
between EUR 150 – EUR 200 billion. The Digital Dividend
could allow Europe to extend its leadership in electronic
communications services, creating growth and jobs,
increasing productivity and giving greater access to
broadband services for all Europeans.
Valuing the Digital Dividend
 An excellent example of the value of Digital
Dividend spectrum determined by market
based methods is the 700 MHz Digital
Dividend spectrum auction completed by the
FCC in 2008 which raised over USD 15 billion.
The auction determined a spectrum price for
the spectrum. It did not determine the value
of Digital Dividend spectrum in terms of
overall benefits to the economy.
Estimated Values for the Digital
Dividend
:
Estimates in Value for the Digital Dividend
Use
Digital Terrestrial
Television
Mobile Television
Wireless Broadband
Assumptions
Valuation
Six DTT multiplexes in each Member State
requiring 48 MHz when using National SFN's
(8 MHz channels per SFN) and 384 MHz when
using MFN's (64 MHz spectrum channels per
multiplex).
One multiplex using either 8 MHz per SFN or
approximately 48 MHz for an MFN.
Between EUR 130 Billion and
EUR 370 Billion discounted
over 15 yrs.
Use of a 72 MHz sub-band within the 470-862
MHz band for wireless broadband services.
Between EUR 50 Billion and
EUR 190 Billion discounted
over 15 yrs.
Total
Between EUR 2.5 Billion and
EUR 25 Billion discounted over
15 yrs.
Between EUR 182.5 Billion
and
EUR
585
Billion
discounted over 15 yrs.
Source: Exploiting the Digital Dividend – a European Approach, Analysis Mason, DotEcon, Hogan & Hartson, 2009.
GSR 2010 – DAKAR, SENEGAL
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Challenges
 DSO is feasible when properly managed and
organized. In some cases social unrest could occur
– this will put the stop on most reform minded
agenda (communication, education and
incentives).
 Refarming can be a conflict ridden process
involving delay and court challenges.
 Resolving interference problems is very complex
especially in relation to service neutral
options…more process of nudging towards a
solution
 Industries may be transformed and businesses fail.
• Is DTT competitive in the face of HD-3D, IPTV and
Satellite?
SG3RG – LAC, EL SALVADOR 2011
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Guidelines and Roadmaps
for the transition from
analogue to digital broadcasting
 Guidelines developed for African countries
(involved in GE-06) and posted on ITU web
for free download
http://www.itu.int/publ/D-HDBGUIDELINES.01-2010/en
 ITU is currently providing assistance in
developing roadmaps in Africa, Asia and
Pacific regions through projects and expert
assistance
SG3RG – LAC, EL SALVADOR 2011
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THANK YOU
SG3RG – LAC, EL SALVADOR 2011
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