Draft Strategy TRANSITION FROM ANALOGUE TO DIGITAL BROADCASTING IN REPUBLIC OF KOSOVA July 2013 INTRODUCTION ............................................................................................................... 4 Drafting of the Strategy............................................................................................................... 5 1. INDEPENDENT MEDIA COMMISSION (BROADCAST REGULATORY AUTHORITY IN THE REPUBLIC OF KOSOVA) ....................................................... 6 2. REVIEW OF THE SITUATION IN BROADCASTING SECTOR IN KOSOVA6 TV channels .................................................................................................................................. 6 Radio channels ............................................................................................................................. 8 Broadcasting on Cable Networks ............................................................................................... 9 Broadcasting on IPTV Network & Satellite Platform .............................................................. 9 Media market ............................................................................................................................. 10 Media penetration in Kosova .................................................................................................... 10 3. BENEFITS FROM DIGITAL BROADCASTING ................................................ 12 Improved utilization of frequency spectrum ........................................................................... 12 Improved reception of the signal .............................................................................................. 12 Increase of television channels .................................................................................................. 12 Lower cost of broadcasting ....................................................................................................... 13 New picture format .................................................................................................................... 13 New services ............................................................................................................................... 13 I. REGULATORY FRAMEWORK .................................................. 14 4. REGULATION OF DIGITAL TERRESTRIAL TELEVISION (DTT) ............. 17 Functional description of the DVB-T2 transmitter chain parts ............................................ 17 Multiplex service ........................................................................................................................ 17 Content provider........................................................................................................................ 18 “Must carry” Rule ..................................................................................................................... 18 II. PROGRAM CONTENTS ............................................................... 19 Main Principles of Program Content ....................................................................................... 19 New technological forms ........................................................................................................... 20 Programs of General Interest ................................................................................................... 20 Non-profitable audio-visual media services ............................................................................ 21 Stimulated Programs – Fund for subsidizing of program contents ...................................... 21 Regional and local audio-visual media services ...................................................................... 22 III. TECHNICAL FRAMEWORK....................................................... 23 Technical characteristics of the elements that compose digitalization ................................. 23 Standards of broadcasting and compression........................................................................... 25 Logical Channel Numbering (LCN)......................................................................................... 26 2 Common interface ..................................................................................................................... 26 Electronic Program Guide (EPG) and Interactive Program Guide (IPG) ........................... 26 Radio frequency plan ................................................................................................................ 27 National allotment: Kosova ...................................................................................................... 29 Modification of existing assignments in Kosova ..................................................................... 33 Spectrum issues in accessing the benefits of the digital dividend .......................................... 34 Digital Radio Service T-DAB.................................................................................................... 34 Digital Dividend ......................................................................................................................... 36 5. THE PROCESS OF IMPLEMENTATION OF DIGITAL TERRESTRIAL TELEVISION (DTT) IN KOSOVA ................................................................................ 37 Transition period ....................................................................................................................... 37 Analogue Broadcasting Switch-Off period (ASO) .................................................................. 39 6. LICENSING OF DIGITAL TERRESTRIAL TELEVISIONS (DTT) ................ 39 Considerations during competition .......................................................................................... 40 Minimum coverage requirements and the dynamics for the establishment of multiplex service ......................................................................................................................................... 40 IV. FINANCIAL CONSIDERATION.................................................. 42 Financial cost for transition to digital broadcasting............................................................... 42 Financial impact on broadcasters ............................................................................................ 42 Operating costs (electricity, maintenance, personnel, etc.) .................................................... 42 Public Television (RTK) ............................................................................................................ 42 Commercial TV stations............................................................................................................ 43 Financial impact for viewers..................................................................................................... 43 Funding Models / The role of state institutions ....................................................................... 43 Subsidies for vulnerable groups of citizens ............................................................................. 43 V. INFORMATION AND AWARENESS .......................................... 45 7. ACTION PLAN FOR REALIZATION OF THE STRATEGY ON DIGITAL BROADCASTING ............................................................................................................ 46 APPENDIX A - List of abbreviations ...................................................................................... 48 APPENDIX B - Co-channels allotments in the region (7, 31, 44, 46, 48, 58, 67) .................. 49 1. 3 2. 1. INTRODUCTION This document addresses the overall process of the transition of terrestrial television broadcasting from analog to digital technologies. This document also addresses all stakeholders (such as industry, civil society, relevant state institutions, who in one way or another will be involved in the process of transition from analogue to digital broadcasting) and clearly defines the strategic directions, duties and timeframes. Digitalization will provide the citizens of Kosova better receipt of TV signal, greater variety of content, more television programmes, new services for users with disabilities and for senior citizens, enhanced additional services, portable and mobile programme reception, as well as convergence of services. Digitalization will bring the options for service providers to adjust the programme content to the needs of different target groups, provide interactivity, the potential to provide services on demand and lower broadcasting costs. The State will benefit from more efficient utilization of the radio frequency spectrum, from the exploitation of the digital dividend of the spectrum for implementing new services, promotion of technological development and new job opportunities, improved competition and more prospects for enhanced creativity and preservation of cultural identity. In 2006, a new frequency plan for terrestrial television broadcasting was agreed at the Geneva RRC-06 Conference. The result of the conference are the Final Acts of the Regional Radiocommunication Conference for planning of the digital terrestrial broadcasting service in parts of Regions 1 and 3, in the frequency bands 174-230 MHz and 470-862 MHz (RRC-06) and two frequency plans; GE-06A for analogue and GE-06D for digital terrestrial television. Both plans are in use since 2006 but because both includes frequencies of the same spectrum, the analogue plan is protected by the digital plan. This means that while analogue broadcasters recorded in the main register are still in operation, the digital broadcasting in that frequency band can not be used. This protection is guaranteed until 17th of June 2015 when the transition period will end and the GE-06A plan will be abandoned. Therefore, the analogue terrestrial television networks should be upgraded to digital technology which will change the way that viewers receive the audio-visual media services in the future. The results of the Agreement RRC-06 provide Kosovo with 8 channels (multiplexes) and 2 assignments but leaving almost half of the territory of Kosova out of coverage. The plan of 2006 should be modified to ensure full coverage for the whole territory. The Government of the Republic of Kosova shall take all the necessary measures to negotiate with International Telecommunication Union (ITU), specialized agency of the United Nations, for the membership of Kosova in this international organization. The modified plan needs to be coordinated with the neighbouring countries because the ITU requires consensus of member states for modification of the GE-06 plan. The process should be completed at the latest by the beginning of 2015. Because of the technological changes, a new legal framework should be established. In the process of transition to digital broadcasting, many stakeholders should be involved – such as government, national regulator, audio-visual service providers and citizens, with the purpose of successful realization of this national strategy. 4 This strategy aims at creating the legal framework, the spatial frequency plan for digital television broadcasting, setting limits and minimum standards on the programmes and the proposal of socio-economic support to the Republic of Kosova citizens. Thus, the implementation of this strategy provides better quality and efficient broadcasting of television and other audio-visual contents of great value for end users. In the Republic of Kosova, the strategy for transition from analogue braodcasting to digital broacasting is prepared by the IMC and will be adopted by the Government. A law on digitalization is drafted under the management of the Ministry of Economic Development (MED). The new law on digitalization shall regulate the method and conditions for digital terrestrial broadcasting, the procedures for switch over from analogue to digital broadcasting, planning, development and using of networks, the right to multiplex access for digital terrestrial broadcasting and other matters of importance for digital broadcasting. The law should have provisions for switch off process of analogue broadcasting and transition to digital terrestrial broadcasting and provisions on the rights and obligations during the switchover period (ASO). The purpose of new regulation should be to maintain the efficient use of radio frequency spectrum pursuant to international and national legal acts for electronic communications, audio-visual media services with available technological options. Legal provisions which regulate the field of electronic communication (Law on electronic communication) and media (Law on IMC) should apply accordingly to the matters relating to digital broadcasting. The Law on IMC has been amended and as a new one has entered into force on April 2012. The competences and the power of IMC remains the same. The new structure consists of the members of the Commission, the Executive Office and the Appeals Board. Drafting of the Strategy Working groups led and financed by the Independent Media Commission (IMC), the competent institution for the regulation and management of broadcasting spectrum and licensing of audio-visual media services in the Republic of Kosova, have worked on drafting this strategy. For this purpose, the IMC Commission established five working groups: Working Group on Legal Issues; Working Group on Program Content Issues; Working Group on Technical Issues; Working Group on Social-Economic Issues; and Working Group on Information and Awareness. The working groups were composed of different members representing different institutions and stakeholders. All working groups were chaired by IMC members. Their meetings started in August 2010. Based on the data provided by the IMC, but also by local and international experts, drafted specific parts of the strategy, such as: Regulatory Framework, Content/programming principles; Technical Framework; Economic and social feasibility and the Plan for Public Information. 5 3. INDEPENDENT MEDIA COMMISSION (BROADCAST REGULATORY AUTHORITY IN THE REPUBLIC OF KOSOVA) The Independent Media Commission (IMC) was established by the Assembly of Kosova in 2005 as an institution responsible for managing and regulating the broadcasting frequency band and the licensing of public and private media. The work of the IMC is organized at the decision-making level (IMC Council), executive level (the Executive Office) and with the appeal level (the Media Appeals Board). The Independent Media Commission is an independent body for regulation, management, and supervision of the broadcasting frequency spectrum. IMC regulates the rights, obligations and responsibilities of natural and legal persons that provide audio and audio-visual media services. According to the Law on IMC no.04/L-44, IMC prepares the strategy for the transition to digital broadcasting in the Republic of Kosova, as well as other strategic documents for audiovisual media services, for approval by the Government. 4. REVIEW OF THE SITUATION IN BROADCASTING SECTOR IN KOSOVA TV channels In Kosova, the television sector consists of 3 TV channels with national coverage and 18 TV channels with local and regional coverage. The public service broadcaster - Radio Television of Kosovo, first program (RTK1), broadcasts 24 hours a day, covering 62.7% of Kosovo’s territory and 80% of the population, through terrestrial broadcasting. Whereas RTK 2, licensed by the IMC as program service provider for broadcasting program in the Serbian language, is on the testing phase and actually the signal of RTK2 is distributed only on cable networks. The two private broadcasters with national coverage, TV21 and Koha Vision (KTV), reach the same coverage as the RTK. All three television stations broadcast terrestrially and via satellite. Via satellite broadcast all three broadcasters cover the whole territory of Kosova. The company named KTTN (Kosovo Terrestrial Transmission Network) performs broadcasting services for the needs of 3 national televisions (RTK, TV21 and KTV) and 4 radio stations (Radio 21, Radio Dukagjini and both public radio Radio Kosova 1 and Radio Kosova 2). KTTN was created as a part of a project financed by the USAID for Kosova Independent Media Project (KIMP), managed and implemented by IREX/Kosova. KTTN operates as shareholding company owned by RTK (25% of shares), RTV 21 (35%), KTV (35%) and the private national radio broadcaster Radio Dukagjini (with 5% of shares). For the coverage with TV signal, the KTTN network consists of 6 broadcasting sites: Vneshta, Zatriq, Cernusha, Maja e Gjelber, Koliq and Kranidell. The 18 regional and local TV stations: (TV Besa, TV Balkan, TV Dukagjini, TV Festina, TV Herc, TV Iliria, TV Liria, TV Men, TV Mir, TV Mitrovica, TV Most, TV Opinion, TV Prizren, TV Puls, TV Syri Vision, TV Tema, TV Vali and TV Zoom), operate using private broadcasting sites/networks and together they cover 68.14 % of the territory of the Republic. 6 Despite the fact that a considerable number of TV channels operate on terrestrial analogue network, there are regions of Kosova which have no access to their signals. The major concern remains the Region of Dragash with a population of 33.584 Albanians, Bosnians and Gorans, which does not have access to the terrestrial signal of broadcasters with national coverage. By the previous law (Law No. 02/L-47) on the Radio Television of Kosova, the public broadcaster of Kosova (RTK) should have covered 90% of the population but for 13 years they managed to reach coverage of 80%. Many of the broadcasting sites which RTK should have used are out of function because of destroyed infrastructure and they were not rebuilt because of lack of financial means. The major problem remains the neccessay broadcasting use of Golesh Peak. In fact, the upper part of this broadcasting site which is 1019m above the sea level (altitude) is used only for military purposes by KFOR forces. The lower part, which is 969 m above the sea level, has been allowed to be used only for FM broadcasters, four national broadcasters: two RTK channels (Radio Kosova 1 and Radio Kosova 2) and two commercial channels: Radio 21 and Radio Dukagjini, including here also conveyance of FM and TV signals for Zatriq. If TV stations could broadcast from the upper site of Golesh Peak, the coverage on the whole territory of the Republic of Kosova would increase up to 90%. With the reactivation of this broadcasting site, also the Dragash region could be covered using repeaters. Although the IMC has licensed a number of local broadcasters in Prizren and Dragash, there is no coverage with qualitative signal for the majority of citizens in this part of Kosova. The only way how the population of Dragash can ensure access to audio-visual media services is through satellite and cable platforms. In Dragash there is only one cable operator, located in Restelica, through which the popullation of this region can watch national TV chanels and local TV channels of Prizren. Whereas, through satellite platform the RTK program, which is shorter than the program broadcast in terrestrial network, and programs of other TV channels of Kosova that broadcast their programs in satellite platform can be seen. It is a legal obligation of RTK to fulfil its public remit to cover the territory of the Republic of Kosova and ensure access to its program to all citizens of Kosova. Besides Dragash, there is no qualitative receipt of the TV signal of RTK and the other commercial national broadcasters also in some parts of Mitrovica region (Skenderaj, Zvecan, Leposavic and Zubin Potok), of Podujeva region (Orllan), Kacanik, Hani i Elezit, and the Anamorava region (Pogragjë). Out of 21 TV stations licensed by the IMC, three (3) belong to the category with national coverage, eleven (11) with regional coverage, six (6) with local coverage and one (1) with low power transmission. The current categorization is based on the location of broadcasting site and technical parameters. Below is presented the current situation of audio-visual media services with respect to their coverage. The data used for the calculation of the population per municipality are based on the 2011 report of the Agency for Statistics of Kosova. New municipalities are not included as 7 well as the data on the population of the municipalities of Leposavic, Zvecan and Zubin Potok are missing. RTK (public service broadcaster, national category) covers 23 municipalities1 with 1,503,916 inhabitants; TV 21 (national category) covers 22 municipalities with 1,503,196 inhabitants; KTV (national category) covers 22 municipalities with 1,053,196 inhabitants; TV Besa (regional category) covers 5 municipalities with 426.009 inhabitants; TV Dukagjini (local categories) covers 3 municipalities with 172.602 inhabitants; TV Festina (local category) covers 2 municipalities with 135.978 inhabitants; TV Iliria (local category) covers 1 municipality with 46.959 inhabitants; TV Mir (regional category) covers 4 municipalities with 82.607 inhabitants; TV Mitrovica (regjional category) covers 7 municipalities with 554.696 inhabitants; TV Puls (regional category) covers 2 municipalities with 136.974 inhabitants; TV Balkan (regional category) covers 3 municipalities with 292.867 inhabitants; TV Tema (local categories) covers 6 municipalities with 296.677 inhabitants; TV Zoom (low power category) covers 1 municipality with 90.015 inhabitants; TV Herc (regional category) covers 10 municipalities with 375.916 inhabitants; TV Liria (local category) covers 2 municipalities with 135.978 inhabitants; TV Men (regional category) covers 3 municipalities with 172.574 inhabitants; TV Most (local categories) covers 3 municipalities with 141.482 inhabitants; TV Opinion (regional category) covers 5 municipalities with 426.009 inhabitants; TV Prizren (regional category) covers 5 municipalities with 426.009 inhabitants; TV Syri Vision (regional category) covers 6 municipalities with 360.797 inhabitants; TV Vali (regional category) covers 2 municipalities with 136.974 inhabitants; For the citizens of Kosova, television remains the most important source of information (85%). As a legacy from the past, Kosova is divided into 5 broadcasting regions: Prishtina, Peja, Prizren, Mitrovica and Gjilan. But, the media market remains dominated by the television stations based in Pristina, which broadcast nation-wide. All TV stations licensed in Kosova serve to every ethnic community in their language: 14 broadcast in Albanian Language, Television of Kosova (RTK) broadcasts around 15% of its programming also in the languages of minorities, 5 televisions broadcast in Serbian Language and 1 in Turkish Language. Radio channels Four nation-wide radio stations, in the technical aspect are broadcast by KTTN: two public radios (Radio Kosova and Radio Kosova 2), and two private radios (Radio 21 and Radio Dukagjini). Whereas, 79 other local radio stations broadcast from their own networks. 1Prishtinë,FushëKosovë,Obiliq,Vushtri,Lipjan,Shtimje,Ferizaj,Pejë,Gjakovë,Prizren,Klinë,Gjilan, Kamenicë,Viti, Mitrovicë,Rahovec, Podujevë, Istog, NovoBërdë, Decan, Malishevë, Suharekë dhe Zveqan. RTK covers one municipality more than the two commercial nationwide broadcasters (NovoBërdë) 8 All radio stations licensed in Kosova serve to every ethnic community in their language. Thus, 46 radio stations broadcast in Albanian Language, 26 radio stations in Serbian Language, 3 radio stations in Bosnian Language, 2 in Turkish Language, 2 in Goran Language, 1 in Roma Language and 4 are multi-ethnic radio stations. Broadcasting on Cable Networks Cable television has spread fast in the last couple of years and it has increased the diversity of programmes and channels in Kosova, bringing to the public of Kosova programmes from the region, Europe and the USA. Cable operators are licensed according to the regulation adopted by the IMC Council in 2007. Cable operators must submit an application for the licence to provide TV cable services in Kosova, and they are obliged to carry RTK free of charge in their networks and in exchange, RTK is obliged to provide cable operators with the same programming that it broadcasts terrestrially. Cable operators must apply must-carry rule for all local/regional TV stations based on their coverage area. Cable operators are responsible for the technical maintenance of their networks and are required not to cause harmful interference with each other’s subscribers. There are 17 licensed cable operators in Kosova: Ipko Telecommunications, and Kujtesa Net are cable operators with a national coverage and the other 15 cable operators are local: Eagle (Prizren), Elektra (Hani i Elezit), TV Eho (Reçan), Progres (Sterpce), Eurina (Skenderaj), TV Net (Lubinje-Prizren), Link Produkcija (Gracanica), Dream (Dragash), Kumanova (Suhareka), Intersat (Drenas), KDS Telestar IC (Ropotova/Kamenica), NSH Drinia Net (Ratkoc), Elektroni (Zhur), EGC (Vllashne/Prizren), BB Herc (Shterpce). In cable networks are accommodated also 37 licensed program service providers that distribute their TV programmes. In the absence of frequencies for TV license, the IMC Council in 2007 through the Regulation CIMC 2007/04 on Cable Distribution of Radio and TV Programs in Kosova, introduced the program service providers which were licensed individually. The majority of these televisions air music only and out of 50 licensed only 25 of them are active. The reason why 12 of them stopped working is of economic nature. This provides a basis to reconsider the policy for issuing new licenses for this category. The program service providers are not included in must carry rule and they have to ensure that they have a channel in the cable operator before getting a license from IMC. Broadcasting on IPTV Network & Satellite Platform The audio-visual market includes also an IPTV operator, Kosova Post and Telecom, which has delivered 3000 Set Top Boxes, but is not licensed for content by the IMC in the absence of the respective bylaw. There is no satellite broadcaster of Kosova which broadcast its program only via satellite. The rebroadcasting of audio-visual contents through other networks other than cable (IPTV and satellite) shall be regulated through a by-law of the IMC. 9 Media market In Kosova, there has been a lack of data on assessment and analysis on annual basis for the capacity of advertising - media market, for almost all media. The IMC, because of the lack of the budget, could not establish a system that would enable this assessment annually. However, in 2011, the IMC engaged a research company to conduct a survey on media market. Evaluation was done in these municipalities: Prishtina, Prizren, Mitrovica, Peja, Shtëprcë, Gjilan, Zubin Potok, Zvecan and Leposavic. (The IMC is in the process of carrying out a similar survey also for this year and the results will be published at the end of August). 361 companies have been interviewed based on which the results is concluded that these companies has spent 10,068,230.00 € for advertising on electronic media in 2011. Approximate similar amount has been estimated also from the calculations done by the IMC based on the annual reports provided by 76 broadacsters (out of 105 licensed broadcasters) to the IMC for the year 2011. While in 2012, from the data reported by 62 broadcasters (including also RTK, national commercial broadcasters and those regional and local ones), the IMC has estimated that their budget from advertisements, as a revenue, reaches the amount of 7,977,042.90 €. Broadcaster Incomes from advertising Kosovo Budget for RTK 2012 2012 RTK 1,776,000.00 € 8,910,000.00 € Commercial nationwide radios (R21 and radio Dukagjini) and TV stations 6,201,042.90 € (TV 21 and KTV) together with local/regional radio and TV stations Total 7,977,042.90 € Table 1. 2012 budget of 62 broadcasters Media penetration in Kosova IMC managed to conduct a survey also for the assessment of the viewership and penetration of the media in the Republic of Kosova in late 2011. Research was done in these municipalities: Prishtina, Mitrovica, Peja, Gjilan, Prizren, Zubin Potok Shtërpcë, Zvecan and Leposavic. (The IMC is in the process of carrying out a similar survey also this year and results will be published at the end of August). This research included 3441 respondents. According to the results obtained by processing data collected in the field, it can be concluded that the television signal in the Republic of Kosova is received on various platforms. Besides acceptance of terrestrial television signal that reaches around 67%, the access to television is provided also through cable platform with a rate of 49.2%. The rest of the respondents receive television signals via other platforms such as satellite, IPTV and Internet. Only 0.5% of the respondents claimed to not have a TV set. 10 Based on the data of the survey, out of 3441 respondents, 2083 have digital LCD television, unlike the 1335 respondents who declared that they have analogue television sets. Of all respondents, 71.5% have only one television set while the rest have two or more television devices. From this research with the number of respondents considered that only 38.8% do not have digital TV (HD ready), while the rest according to the survey do not require additional equipment. About the viewership, the survey showed that 50.5% of respondents watch TV 3-4 hours per day, whereas the time they watch most is in the evening (prime time) with 79.2% of respondents. Regarding television preferences, 66.5% of respondents prefer to see national television channels (RTK, KTV and TV 21), while 33.5% of respondents prefer other TV stations. TV preferences are mainly focused on the categories as "best quality" - 41.1% of respondents, "entertainment shows" - 13.5% of respondents and "sport” - 12.8%, while the programming categories like movies and serials are reasons that remain at rest in the percentage of respondents and are less preferred. In 2009, for the purposes of preparation of this strategy, the IMC has conducted the survey "Assessing the willingness of TV stations in the Republic of Kosova for the transition to digital broadcasting", with all local and national television broadcasters licensed by the IMC. From a total of 21 television stations, only 19 responded to this survey. On this survey: - Half of television stations stated that they produce their content using technology DV/DVCAM, HDTV use 25%, 15% use DVCPRO25/50, while 5% use BETA SX and HDCAM. - In the field of signal transmission and contribution, 25% use SDI, 20% Composite and Optical analogue system, 15% MPEG2 TS and 10% ASI and Analog Component 1394/DV/HDV system. - More than half of the television stations (54.5%) are unable to upgrade their existing analogue transmitters. Only 27% of analogue television transmitters can be easily converted to digital. While 18.2% have the possibility of combining analogue/DVB. - Television stations are able to produce around 29 channels in SD (720x576 PAL) while only 4 channels in HD (1080i, 1080p or 720p). - 39.4% of interviewed television stations stated that their primary source of financing is advertising. Outsourcing of production capacities is another financial source representing 30.3% of total revenues. Donor financed projects represent 12.1%. Funding from other sources makes 18.2% of revenues (corporations which operate several local television channels). - Some television stations do not consider investing more in the technology, because they have already completed their investments in digital technology. Most stations have declared that they will invest from their own resources. A very small number of responses stated that they will try to cover the cost of digitization through loans. 11 - In general, most television stations share the opinion of increasing the number of professional staff during the transition to digital broadcasting. Television stations are ready to start the awareness campaign to inform the viewers to switch to the digital platform according to the strategy and law on digitalization. - Most of the television stations (69%) share the opinion that the transition to digital broadcasting will result in changes in their programme scheme, while 31% stated that they do not need to change their programming schedule. - All television stations stated that they will not have a problem to execute internal changes and modifications in the transition to digital broadcasting. They also stated that the beginning of these preparations depends on strategy and law on digitalization in Kosova. 5. BENEFITS FROM DIGITAL BROADCASTING Improved utilization of frequency spectrum The digital terrestrial broadcasting system is based on the Orthogonal Frequency Division Multiplex (OFDM) using a high number of carriers in the same frequency channel as analogue television. Therefore, the channel is much more efficiently used reaching the capacity of maximum 31.67 Mbit/s which can accommodate up to 10 standard television channels compressed in MPEG-4 format. In case of using DVB-T2/MPEG-4 the capacity is increased to 50.59 Mbit/s which corresponds to 14-18 standard television channels. In a digital network TV channels are sharing the same frequency while in analogue each TV channel requires its own frequency channel. With the application of Single Frequency Network (SFN) all transmitters in the network share the same frequency while in analogue each TV transmitter in the network uses different frequency. Using the digital terrestrial system DVB-T2 a substantial improvement utilization of the frequency spectrum can be achieved. Improved reception of the signal The propagation of the OFDM signal is much more robust compared to analogue. The digital signal from the propagation nature differs from analog signal and, as a result, has significant reduce of interferences. In addition, the signals from several transmitters using the same frequency in the SFN network will improve the reception. When digital, the received television picture is free of “ghosts” and “snowy” effects which are typical in analogue technique. Increase of television channels In analogue terrestrial broadcasting in Europe the broadcasting spectrum can accommodate 3 to 4 national networks, whereas in the digital frequency plan, each country has the possibility to establish much larger number of national networks. Each digital network can provide 10 television channels, respectively 80 television programs in DVB-T or 16 television channels which enables 128 television programs in DVB-T2, which is 10 to 16 times more than analog television channels. However, the broadcasting spectrum is still considered as a scarce resource. The capacity of the digital networks encourages the production of more television channels, mostly thematic. 12 Lower cost of broadcasting Digital networks are 30 to 40% more expensive compared to the analogue, but due to the fact that the same digital network is used by more than one TV channel, the price per channel is lower than in analogue, which means that broadcasting cost is lower. New picture format While in the analogue television system the picture has standard format with aspect ratio 4:3, digital television offers the possibility to broadcast content in aspect ratio 16:9 and in high definition format (HDTV). New services Aside from television channels, digital television can provide also other services, additional services, such as electronic programme guide and multimedia services. Digital DVB-T can provide any digital content such as for example “Data casting”. 13 I. REGULATORY FRAMEWORK The legal framework that supports the creation and functioning of free media in Kosova is quite advanced, which resulted in a relatively high number of licensed media, such as through analogue terrestrial broadcasting and rebroadcasting of broadcasts on digital cable platforms. IMC has built a legal basis through secondary laws (the Code and relevant regulations) which is adapted to European legislation. The authority of IMC is also confirmed by the institutional and legal framework, the Constitution of the Republic of Kosova. The Constitution guarantees the protection of human rights and international community and European standards, respects democratic principles of subsidiarity and local government and includes basic provisions relating to citizenship. The Public Broadcasting Service is regulated by the special law (lex specialis) Law no.04/L-046 on Radio Television of Kosova. There is a clear need to update the existing Kosova legal framework so that it may increase the efficiency of its license scheme, introduce new roles for the new players of the digital television sector and pave the way for the regulation of convergent services. Other laws in Kosova which relate to media and the authority of IMC, in particular with respect to the broadcast regulation, are the ones that cover public broadcaster, copyright and related rights, cinematography, local and general elections, the law on defamation and insult, consumer protection, competition, public private partnership and public enterprises: Law no.04/L-046 on the Radio Television of Kosova adopted on 29 March 2012 Law no.04/L-065 on Copyright and related rights adopted on 21 October 2011 Law no.2004/22 on Cinematography adopted on 8 July 2004 Law no.03/L-73 on General Elections in the Republic of Kosova adopted on 5 June 2008 Law no.02/L-65 – Civil Law Against Defamation and Insult adopted on 15 June 2006 Law no.2004/17 on Consumer Protection adopted on 16 June 2004 Law no.2004/36 on Competition adopted on 8 September 2004 Law no.04/L-045 on Public-Private Partnership adopted on 21 October 2011 Law no.03/L-087 on Public Enterprises adopted on 20 April 2012 Law no.04/L-109 on Electronic Communications, adopted on 04 October 2012. In accordance with the Law on IMC No.02/L-15 adopted in 2005, the IMC approved the following regulations: Decision IMC - 2007 - 01 on Determination of the Level and Manner of the Payment of License Fee for Radio and Television; Regulation CIMC – 2007/04 on Cable Distribution of Radio and Television Programs in Kosova; Decision CIMC - 2007/05 on Determination of the Level and Manner of Payment of License Fees for Cable Operators and Service Providers through Cable Programs, as well as Regulation CIMC - 2007/06 on Advertisement for broadcasters. In 2009, in preparation of secondary legislation and package for long-term licensing of broadcasters, the IMC adopted the by-laws on Protection of Children and Minors from Harmful Program Contents, Qualifications for Issuing the License of IMC for Broadcasting, Compliance with the Copyright Obligations, Audio-visual Commercial Communications, in accordance with the AVMS Directive of the EU. During 2013, Independent Media Commission amended the following regulations in order to harmonize them with the IMC Law No. 04/L-44, which were adopted on 28 May 2013: 1. Regulation KPM 2013/01 on Protection of Children and Minors on the Audio-Visual Media Services; 2. Regulation KPM 2013/02 on Copyright 3. Regulation KPM 2013/03 on Audio-Visual Commercial Communications. 4. Regulation KPM 2013/04 IMC Regulation for Issuing the License; 5. Part one – General terms and conditions of the IMC License. In 2010, the Code of Conduct for Electronic Media was amended, as well as Decision 2007/05 on the Determination of the Level and the Manner of Payment of License Fee for Cable Operators and Program Service Providers, Decision CIMC 2008/01 Determination of the Level and the Manner of Payment of License Fee for Radio and Television that have been determined for cable operators, program services providers and especially for the broadcasters, which have been implemented since 2008 for the payment of the license fee. Amendments to these two important acts adopted by the Council of IMC have entered into force on 15 December 2010 resulting in the new Code for Audio-Visual Media Services and with the Regulation on the Level and Manner of the Payment of License Fee for Audio-Visual Media Services (KKPM 2010/02), which in accordance with the IMC Law, sets payment and the level of fees for all categories and types of licenses. The regulations of the Council of Europe (CE) are mostly embodied in the applicable legislation of the Republic of Kosova, either as part of laws or as separate legal acts adopted by the IMC. Referred CE regulations particularly imply the following acts: European Convention on Human Rights; European Charter for Regional or Minority Languages; Resolution on the Right of Reply; Declaration on the Freedom of Expression and Information; Recommendations on media pluralism and diversity of media content; Declaration on the role of community media in promoting social cohesion and intercultural dialogue; Declaration on freedom of political debate in the media; Recommendation on the right of reply in the new media environment. The IMC has harmonized its regulations with the Directive AVMS as well as with the EU regulations related to this field, which includes the following acts: Audio-visual Media Services Directive; Protocol on the system of public broadcasting in the Member States; Communication from the Commission on the application of State aid rules to public service broadcasting; Decision on the media program; 15 Recommendation on the protection of minors; Conclusion on principles for Community’s audiovisual policy; Decision on inter-active media content; Recommendations on the protection of minors and human dignity; Recommendation on the development of competition; Resolution to intensify exchange of information; Conclusion on the application of recommendations on the protection of minors. The Republic of Kosova shall reform legal framework governing radio-diffusion in Kosova, keeping in mind binding EU legal instruments and the expected transition from the analogue to digital terrestrial broadcasting, and shall clearly define the role, rights and obligations of all participants in the audio-visual media content production and distribution chain. Reformed legal framework shall enable public and transparent procedure for awarding licenses, on platform-wise neutral basis and on request by content providers, under the in-advance prescribed and non-discriminatory conditions, adjusted to the type of service, linear or non-linear, that the applicant plans to provide. The license-awarded right to provide media service by digital terrestrial broadcasting or analogue broadcasting, before the expected complete transition to digital terrestrial broadcasting, shall be granted in a public competition. After the transition to digital broadcasting in the Republic of Kosova, new licenses for digital terrestrial broadcasting will be issued in accordance with the procedures determined with the legal framework, based on the analysis on the needs of citizens and social groups related to media content, based on market analysis, but also evaluation of the influence of new providers on market content. Decision on issuance of licenses shall be made for the coverage areas and types of programs, for which new licenses shall be awarded. Same procedures shall apply also in the case of any request for the development of program offer offered by the public broadcaster. By reformed legal framework, the Republic of Kosova shall strongly guarantee citizens’ right to broad choice of media content through different platforms for their distribution (satellite, cabledistribution, terrestrial broadcasting, etc.). Obligations of the dominant platform operators shall be set to broadcast certain content (must carry) and the obligations of dominant public service providers to offer their content to operators under non-discriminatory conditions. With the view of realizing public interest in the sphere of information, important for the life and work of citizens in local and regional communities, proportionate minimum quotas of local and regional programs shall be determined by law for the media holding licenses issued by the IMC. The Republic of Kosova shall guarantee free competition on the electronic public media market. It shall suppress restrictive agreements prohibited by regulations on the protection of competition, both when horizontal - between media themselves, and when vertical - between media and mediators on advertisement market, or between media and operators of the media content distribution platforms. The Republic of Kosova shall ensure consistent respect of laws concerning advertising, along with concurrent liberalization of these regulations, in the extent in which that is in accordance with international practice and internationally obligations. 16 6. REGULATION OF DIGITAL TERRESTRIAL TELEVISION (DTT) The competent bodies and organizations in the Republic of Kosova are actively engaged in completing the process of transition from analogue to digital broadcasting of terrestrial television signals, implementing all activities relevant to this process, respecting the rights of the broadcasters ensured by their current licenses for television broadcasting in accordance with the international obligations and the existing regulatory framework. Digital television brings great changes in comparison with analogue. Current broadcasters become providers of audio-visual media services, whereas services of broadcasting and transmitting of TV programs are provided by Multiplex service. Thus, the transmitting frequency spectrum will be more efficiently utilized, the market competition will increase, along with an increase in the capacity for improving creative work and preserving cultural identity. Process of transition from analogue to digital broadcasting also includes some costs for citizens in the form of obtaining a receiver for digital signal. Republic of Kosova will in this respect pay special attention to vulnerable social categories, the poor and persons with disabilities. Through various incentives and subsidies, they will be provided a special status in the process of digitalization. The State, in the process of digitization will pay special attention to privacy and data protection for the media service providers. In order to introduce digital terrestrial television in Kosova, minimum requirements for the changes would be to introduce provisions to regulate new players/participants in the digital broadcasting chain: content providers and multiplex service as well as definition of the “must carry“ rule in the audio-visual sector. Functional description of the DVB-T2 transmitter chain parts Multiplex service "Multiplex service" as the service provider, is licensed to install and operate digital terrestrial television multiplex. Necessary frequencies are given to the service and not to the television channels as it was a regulative practice in the past, while in digital terrestrial channels content providers share the same service. A multiplex service will use the specified frequencies in the national frequency plan for digital terrestrial television broadcasting, ensuring efficient use of the frequency spectrum and the avoidance of harmful interference. Service must comply with the technical standards specified in the license. Multiplex service must ensure the reliability of system functioning, implementing procedures for the control and management of installed equipment, as well as providing qualified personnel in order to guarantee the maximum quality of the system. Multiplex service must give access in the system to all licensed content providers under equal, nondiscriminatory and transparent conditions. In case when a multiplex service is also a content provider, a structural separation will be foreseen which will be regualated by law. Service providers of conditional access must act in accordance with the technical standards set by the IMC, especially with regard to synchronization algorithm to avoid market share. Service provider is required to prepare the Service List for end users. Service List approved for the providing of conditional access services will be mandatory also for content providers that provide programs, and for multiplex services. Service List must contain information on the costs of services and how they are activated, the procedures for termination of the contract and the modalities of activation (by phone, on-line, or service centers). 17 Content provider "Content provider" is basically the broadcaster. In a digital terrestrial television platform the right to use the frequency is replaced with the right to enter into the digital terrestrial multiplex. The licence to produce and distribute a television programme does not cover the right to enter into the multiplex despite the digitalisation, as the terrestrial platform is still considered as a scarce resource. Therefore, a general authorisation licence defines the content related issues while an additional licence is needed to distribute a TV channel via the digital terrestrial platform. “Must carry” Rule The “Must-carry” rule ensures the access to the networks and to the platforms operated by the service provider under affordable (ideally cost oriented), non-discriminatory and transparent conditions. The “Must-carry” rule is used for the public television programmes and for the programmes holding the status of special importance. Most EU countries, enforce some form of must-carry rule. In the European regulatory framework on electronic commications, for example, article 3(1) of the Universal Service Directive permits Member States to impose “must-carry” proportionate and transparent obligations on cable television network operators, but these obligations may also be imposed on terrestrial and satellite networks. Must carry rule should be limited to a reasonable number of channels, especially public service channels. Must carry status supersedes the additional licence to enter the terrestrial digital multiplex. 18 II. PROGRAM CONTENTS Based on the IMC Law, the European Convention on Transfrontier Television as well as on the EU Audiovisual Media Services Directive, namely AVMS Directive, the IMC creates the basic framework of the programme content, depending on the type of audio-visual media service that operates in the Republic of Kosova. “Program” means a set of moving pictures with or without sound constituting a single unit with no schedule or catalogue set by the media service provider and whose form is comparable to the form and content of television broadcasting (for example long films, sports events, comedies, documentaries, children programs and original dramas). Main Principles of Program Content Having in mind the objective of the Kosovar society to build a free and democratic society with regard to equality between all citizens, aiming toward the creation of a favourable climate of tolerance between different ethnic, religious, gender, cultural and political groups, aiming toward the faster integration of the country in the Euro-Atlantic structures, and for encouraging the continued improvement of cultural and educational life, general living conditions of citizens of Kosova as well as ensuing the preservation of peace and security; Having in mind the need to ease the undertaking and developing of activities for individuals and the industry that deal with production of programmes containing information, educative and cultural aspects; Having in mind the need that the Kosova broadcasters ensure that the audio-visual services under their jurisdiction give priority to the promotion of the production and access of Kosovar and European content; Having in mind the cultural diversity and the possibilities of development of the professional quality of the programme content; Having in mind the reality and the diversity of broadcasters in the Republic of Kosova as well as their interests; The Independent Media Commission, as a regulator of the audio-visual media services, during the process of the switch over of transmission from analogue to digital, sets out the main criteria of the programme content of the audio-visual media services of the Republic of Kosova. Audio-visual programs should respect main values of society and individual freedoms guaranteed by the Constitution of the Republic of Kosova as well as by the European Convention on Human Rights. First of all, the audio-visual programs should respect and affirm dignity, freedom, equality, solidarity, and citizen’s rights on information of the citizens in a general and objective manner. Audio-visual program content should reveal correctness, trustworthiness and professionalism. In this regard, the audio-visual content or radio programmes should reveal correctness, trustworthiness and professionalism. Events shown on the audio-visual programmes should be based on facts, be unbiased, respecting differences of opinion regarding phenomena or different problems, not allowing influences of either of the parties involved or groups of interests. Producers and broadcasters of audio-visual programmes are obliged, in accordance with the Law on Copyright and the IMC regulations, to strictly respect copyrights and similar rights during the process of production of their own programmes as well as during the process of broadcasting of foreign programs. New technological forms Directions in which are opened new technological forms of presentation of audio-visual and multimedia content can be divided into the following categories: Pay TV; Mobile TV; High Definition TV (HDTV); and Interactive Television. Considering that the convergence of networks offers the possibility to separate program content production from broadcasting and its distribution, which enables program content producers, concentrating only on the production of these contents, which also is their main activity, within the regulation should be defined categories of specific subjects, respectively, clearly to be separation of activity of program production from that of broadcasting and its distribution. Creation of legal and regulatory framework should take into account the convergence process, and possible effects in the area regulated by this strategy. Programs of General Interest Audio-visual contents in the interest of general public of the Republic of Kosova consist on: Informative and political programs through which the citizen of Republic of Kosova realizes the right to public information, independent and unbiased information regardless of ethnic, gender, religious or political affiliation; Programs that promote human rights aiming the development of a free and democratic society; Programs dedicated to children and adults with educational, cultural and entertaining content; Programs for persons with disabilities and specific needs; Programs that promote cultural identity and heritage of Kosova; Programs that promote and affirm cultural developments and artistic creations in the Republic of Kosova; Programs that promote the culture of public dialogue; Programs with educational, scientific, and artistic content; Programs dedicated to protection of environment; and Programs that promote academic education, promotion of academic writing, linguistic culture, and eloquence. Main audio-visual contents will undergo the program scheme which defines: The audio-visual type of the program, respectively, their categorization in different types; Volume of program contents of different types; Defining the maximum scale of broadcasting of commercial communications; Defining of the volume of own-programs and audio-visual programs produced in the Republic of Kosova; and 20 Defining the schedule of broadcasting of program types. Obligations on proportionality of broadcast of European origin programs are established by law. IMC as a regulator of audio-visual media services in the Republic of Kosova, is obliged to submit the reports on proportionality of program schemes, in particular for national broadcast network televisions, to the Assembly of Kosova in the annual reports. Radio Television of Kosova is obliged to dedicate at least 60% of its general program schedule to Kosovar and European audio-visual works/creations. This quota is preferred to all Kosovar audiovisual media services but it is not obligatory. Radio Television of Kosova is obliged to dedicate at least 20% of its general program schedule to independent producers. This quota is preferred to all Kosovar audio-visual media services but it is not obligatory. In the best practices of European Union, the member states ensure that audio-visual media services, based on the request offered by media service providers, promote production and access to European productions. Non-profitable audio-visual media services Community audio-visual media services are a type of service that offers a third model of broadcasting beyond commercial broadcasting and public broadcasting. Community audio-visual media services can serve geographic communities and communities or groups of interest. They broadcast content that is popular and relevant to a local/specific audience but which may often be overlooked by commercial or mass-media broadcasters. Community audio-visual media services are operated, owned, and driven by the communities they serve. Community audio-visual media services are non-profitable. Non-profitable audio-visual media services, which could be established by educational institution, students associations, association of pupils, associations of citizens and non-governmental organizations in the capacity of legal persons, are part of the spectre of audio-visual activity in Kosova. This kind of media service has a wide usage in the countries of European Union and its main purpose is to fulfil the informative vacuum for community, specialized programs of scientific, artistic, educational content and for other specific needs of the community. Stimulated Programs – Fund for subsidizing of program contents IMC will establish the Fund for program quality which will be financed by license fee, donations and other manners that will be defined later. This Fund will be open for all broadcasters and for institutional producers or independent producers. The Fund will subsidize a spectre of different programs. Subsidizing will be realized though a public competition for different program genres. Best projects for subvention will be selected by a independent professional commission. The fund will subsidize these types of program content: Programs that stimulate development of composition/TV drama; Documentary programs that treats social problems; TV movies and documentary movies in the languages spoken in Kosova; Programs that deal with educational, cultural and scientific development; Programs that deal with cultural diversity and cultural inheritance; Special programs for categories with special needs; 21 Programs for national minorities in the Republic of Kosova; Programs that stimulate awareness raising for equality and social rights; Programs dedicated to children and youth; and Itinerary Programs. By a specific regulation, the IMC will determine criteria and the manner for realization of this stimulation for certain programs. Regional and local audio-visual media services The IMC, during the switch over to digital broadcsting, will encourage local and regional audiovisual media services to create some kind of identity and program ownership, by cultivating as a basic postulate program content which treats certain regional problems or the problems of the local communities where they operate. For regional and local audio-visual media services is preferred to fill at least 30% of the program scheme with educational and informative documentaries which exclusively treat the problems of the enviroment where they operate. 22 III. TECHNICAL FRAMEWORK Technical characteristics of the elements that compose digitalization Meetings held in the context of the drafting of this strategy have shown that all parties in Kosovo are proposing approval to use in Kosovo: MPEG-4 version 10 (H.264/AVC) as a standard for digital signal compression, while as possible option is promoted the newest standard in preparation: H265 HEVC (High Efficiency Video Coding); DVB-T2 as a standard for radio-difussive broadcasting of digital TV signal; SFN (Single Frequency Network), as a type of radio-diffusive network; Contributory Network and Distribution. The below description is presented graphically and detailed as follows: I. Signal compression format MPEG-4 v.10 or AVC (Advanced Video Coding) is standardized by ISO / IEC 14496-10. The use of the new standard H265 is recommended, which enables an increase of 39% to 44% of the transportation capacity compared to H264 and provides more TV programs within the same channel. II. Standard DVB-T2 has many parameters, which are determined according to the type of network, configuration, quantity of contents, the required quality etc. III.1. IP Network Contributory, for reunification and processing of program content from TV content providers, which transmitt encoded signal to multiplex, in TS (Transport Stream). It is recommended to transport the signal from the content provider to the MUX by optical fiber for better opportunities that offers regarding the quality, cost and safety. IV.2. Head-End (Central Multiplex), to form a multiplex unique output of DVB, where the encapsulation of all the received program contents and eventually other information (data) according to the principle Multiple-PLP (Physical Layer Pipes - different branches of data for different types of services) included as the final module so-called DVB-T2 Gateway, which serves for the formation of T2-MI interface defined by the standard: ETSI TS 102 773. Besides Multiple-PLP (in which can be entered content also from the Internet), through this module is enabled the network work in SFN principle. Within the Head-End, the protection of program content is also enabled from the so-called scrambling (CAS).Transport of this complete package is done through IP Distribution Network. V.3. IP Distributive Network to distribute the signals from the central multiplex to broadcasting sites, is done using RTP via UDP. Distributive network must ensure the availability of 100% signal up to broadcasting sites, using annular technique and protection 1 +1 at all levels. The IP distributive network must support synchronization, classification and priorities in level network to ensure the highest level of distributive service to the transmitters, which is done through the IP Network. Service Provider of distributive network must support synchronization according to standards of ITU G.8262 for all multiplexes. Network operators decide how to send the signal to the transmitter respecting these criteria (mentioned above). VI.4. Radio-diffusive Network, broadcasts digital TV signals, through transmitters placed in high sites, to the end-user. VII. SFN – enables that within an allotment all transmitters work synchronized and in the same frequency, so as to end-user TV signal arrives at the same time and stage. Nowadays, this is provided via the GPS network, but it should be noted that there are efforts that synchronization between transmitters is done through the IP Network. Service Providers of the distributive network must support synchronization according to standards of ITU G.8262 for all multiplexes. Based on best practices in the implementation of the DVB-T2 in Europe, it is proposed that the primary distribution of signals (within Contributory Network and Distribution) is done using IP technology, namely RTP (Real-time Transmission Protocol) via UDP (User Datagram Protocol), so that in addition to more efficient processing and exchange opportunities, even at this level to be compatible with other technologies such as IPTV, etc.. 24 Standards of broadcasting and compression The meetings held in the context of the draft of this strategy have shown that all the stakeholders in Kosova are proposing the application of the avantages that are provided by the format MPEG-4, as the compression technique, and DVB-T2 standard. Compression MPEG-2/DVB-T MPEG-4/DVB-T MPEG-4/DVB-T2 SD channels 4/8 8/12 14/18 HD channels 1 2/3 4/6 As it is shown above, design of MPEG-4 standard provides the most current balance between coding efficiency, implementation complexity and cost, based on the current state of designing technology of VLSI (CPUs, DSPs, ASICs, FPGAs, etc.). This standard is recommended also by ITU (Recommendation ITU-R BT.1737), and many countries which have started with MPEG-2, now are going through a transition to MPEG-4 because of its technical advantage and a better quality. Initiated by the need of those countries with highly developed broadcasting markets that experienced a lack of DTT networks/frequency spectrum capacity, the DVB consortium issued specifications (2009) for DVB-T2 technology as a successor of the standard DVB-T. New DVB-T2 standard offers a 30-50 % better efficiency compared to DVB-T. Due to the incompatibility with widely used DVB-T standard, the new standard DVB-T2 is not designed to replace DVB-T in the short to medium term. The problem is very similar to the MPEG-2/MPEG-4 incompatibility situation resulting in a new transition period and involves market uncertainty and additional costs for the viewers as well as for the broadcasters. For this reason, the DVB-T2 standard is expected to coexist with DVB-T for some years. It is also worth noting that countries with developed broadcasting markets will introduce both MPEG-4 and DVB-T2 simultaneously related to the new content format (HDTV). There is no doubt that DVB-T2 is a technically significantly better standard while it offers better signal protection, is suitable for transmitting in surrounding with lots of noise and interference and provides a higher bit rate (50Mbit/s) within the same television channel of 8MHz/7MHz. The cost of transmission broadcasting equipment is neglibly higher, and the price of the receiving equipment is decreasing due to the recent decision of big television markets to start broadcasting in DVB-T2. DVB-T2/MPEG-4 receivers have been made available in selected European retail markets as of 2010. Several consumer manufacturers are currently producing and distributing such equipment and the sales were increased significantly during last year. Receiver based on DVB-T2/MPEG-4 technology directly distributed from pay-service provider in Europe costed approximately 50-60 Euro, plus a monthly subscription approximately 7 to 20 Euro. Receivers DVB-T2/MPEG-4 supports both HD and SD picture quality and incorporates two tuners, one for DVB-T reception, and the other for DVB-T2 reception. Some manufacturers are using chip sets where both receivers are integrated in the same integrated circuit. After announcements of decisions from many countries to use DVB-T2, prices dropped to approximately 30 Euro for DVB-T2/MPEG-4 receivers. Those low cost receivers can not be used 25 to display HD television channels but regarding that HD is mainly considered as a premium service, the higher price of HD receivers (60-80 Euro) should not slow down the switchover process. It was expected that the reduction of the price of DVB-T2 receivers will decrease for about 50% every two-three years, but the current development of DVB-T2 networks superseded expectation of the industry. Logical Channel Numbering (LCN) One of the features of the DVB-T2 standard is the possibility to introduce automatic sorting of television channels stored in each individual television set. In the multi channel environment such as digital terrestrial television platforms the position of a specific TV channel on the user remote control is important. Namely, the channel positioned at number 1 on the remote control will have a higher probability to attract viewers than a channel positioned on channel 87 of the same remote control. The criteria to be adopted in order to assign the numbers to the channels, shall be clearly determined in a specific regulation of the IMC. The numbering plan shall be defined on the basis of transparency and non-discrimination, but also taking into account existing consumer habits. Common interface The development of digital television (on satellite frequencies, terrestrial frequencies and cable) and, most of all, the introduction of Pay-TV and conditional access platforms, has generated a wide number of encryption tools, aimed at enabling only the viewer identified with a specific decrypting code to watch the desired programme. The problem with encryption is that each service provider offering Premium content through PayTV channels may use an encryption code that differs from the others. Consequently, the consumer who wishes to view channels available on more than one platforms, encrypted differently, might have to buy a decoder for each encryption system. This is one of the problems that any regulator should avoid. Consumer behaviour statistics show that when there is more than one decoder available in the market, the consumer has more problems in choosing service providers. In case of implementation of Pay TV services, the receivers must be equipped with “Common Interface”, a defined standard that enables the addition of a conditional access module (CAM) in a DTV Receiver, to adapt it to different kinds of cryptography. The Common Interface equipment must comply with the EN 50221standard. This is a defined standard that enables the addition of a conditional access module (CAM) in a DTV receiver to adapt it to different kinds of cryptography. Indeed, one of Digital Video Broadcasting's main strengths is the option of implementing the required conditional access capability on the Common Interface. Electronic Program Guide (EPG) and Interactive Program Guide (IPG) Electronic Program Guide (EPG) is a continuously updated menu which provides users of television, radio, and other media applications to navigate, select and view (or listen to) content using a remote control, mouse, keyboard or other input device. Information on the broadcast program or schedule is constantly updated too. 26 Standards for delivery of scheduling information on television - based on IPG, vary from application to application, and by country. In Europe, the European Telecommunications Standards Institute (ETSI) published standard ETS 300 707 to standardize the delivery of IPG data over digital television broadcast signals. Listings data for IPG integrated into today's digital terrestrial television and radio receivers is typically sent within each station's MPEG transport stream, or alongside it, in a special data stream. The IMC should set specifications and criteria that all network operators and service providers will have to comply with, in order to create an EPG/IPG compatible with the guides provided by other operators/providers. Radio frequency plan According to the GE-06 agreement, one allotment (“Kosova”) is planned to cover the territory of the Republic of Kosova, but the test points of the respected allotment do not correspond to the actual borders of the country. The results of the regional conference RRC - 06 - for the Republic of Kosova one allotment and two assignments are planned to accommodate eight (8) SFN (Single Frequency Network) digital terrestrial networks. One (1) frequency channel is allocated in frequency band III and seven (7) frequency channels are in frequency band IV/V. All channels are assigned and recorded in the plan to both transmitting sites Goles and Cvilen. The allotments are planned on the basis of the reference planning configuration type 2 (RPC-2). This reference configuration is to be used when portable outdoor reception or lower coverage quality portable indoor reception or mobile reception is planned. The network is based on the reference network 1 (RN1). Allotment name Kosova Channels 7, 21, 31, 44, 46, 48, 58, 67 Table 2. Planned frequencies for the allotment “Kosova” The first problem of the GE-06 plan is that effective radiated power (ERP) of both planned assignments is 40 dBW instead of 49,7 dBW, which corresponds to the typical power according to the Reference Network 1 (RN1) which is used to plan the coverage of a large SFN service area. According to this hypothetical network, seven transmitters are situated in the centre and at the vertices of a hexagonal lattice (see Table 3). 27 Table 3: Parameters of the Reference Network 1 (RN1 – Large service area) Transmitting systems with the effective radiated power of 49,7 dBW have non-directional antenna patterns and the service area is assumed to be 115 km in diameter. Both transmitting sites are currently under the jurisdiction of KFOR, what makes the situation even more complex. The existing analogue TV networks, based on 20 transmitting sites (6 national and 14 local/regional) with appropriate infrastructure which can be used for digital broadcasting, has not been taken into the consideration. The second problem is the fact that about 48% of the territory of Kosova is not covered with the proposed allotment “Kosova”. Two assignments included in the Plan provide 28% coverage of the current allotment, but if we take into the account that the borders allotment does not comply with the borders of the country only 16,1% of the territory of Kosova can be provided with DTT signal. 28 National allotment: Kosova Channels 7, 21, 31, 44, 46, 48, 58, 67 enable the extension in the entire territory of Kosova of digital TV signals of the service providers (Multiplex Services) selected for this extension. Channel 67, assigned for digital dividend, until 17 June 2015 will be used for the testing puposes. Network type for national coverage is SFN. For the economy purposes, reduction of ionizing radiation, more effective coverage, is recommended to use main existing transmitting sites (assignments): Golesh, with circular radiation diagram, horizontal polarization and with radiation power up to 100KW (UHF) and up to 25KW (VHF). Vneshta, with the radiation diagram in three main directions and a support one, horizontal polarization and radiation power up to 5KW (UHF) and up to 1.5KW (VHF). Zatriq, with radiation diagram in three directions and a support one, horizontal polarization and radiation power up to 20KW (UHF) and up to 5KW (VHF). Cërnusha, with radiation diagram in three main directions and a support one, horizontal polarization and radiation power up to 5KW (UHF) and up to 1.5KW (VHF). Maja e Gjelbër, with radiation diagram in three main directions and a support one, horizontal polarization and radiation power up to 5KW (UHF) and up to 1.5KW (VHF). Figure 1 – Transmitting network 29 Figure 2 – Regional division Transmitting sites presented in the figure 1, represent the primary network of broadcasters, which are part of the first phase of planning; second phase of planning should include those parts of Kosova, which would only partially be covered in the first phase, such as the Municipality of Sharr with Opoja, Municipality of Kamenica, parts of the Municipality of Gjilan, Municipality of Kacanik, northern part of Kosova, etc.. In the end, the third phase of coverage should be planned and carried out with DVB-T2 signals with so-called “gap fillers”. Completion of the coverage of Allotment Kosova - In order to start the process of digitalisation of terrestrial broadcast networks in the Republic of Kosova, this modified plan should be approved because of the advantage it provides. This strategy of digital broadcasting ensures four regional allotments, one sub-allotment for the Capital and main allotment for digital broadcasting in the whole territory of the Republic of Kosova (figure 2), in comparison with only one allotment as it was planned by Geneva Conference in 2006. The reason why this modification is proposed is, except more qualitative and quantitative coverage with digital TV signals, to become equal to the neighbouring countries (Kosova is the only country that has ended up with only one allotment, while comparing it to the Republic of Macedonia that has a similar coverage but with 8 allotments together with the separate one for the capital. Albania has 11 allotments and one for the capital, Serbia has 20 allotments and one additional for the capital, Montenegro has 3 allotments and one additional for the capital). Such division in allotments is done in geographical aspect, assessing that from this we can establish a possibilities for regional broadcasting networks. The new proposed channels and those which will be proposed after adoption of this strategy (except those approved by the ITU), are not a result of RRC-06 and, as such, they have to be coordinated with the neighbouring countries (Albania, Macedonia, Serbia dhe Montenegro) since the same in the Geneva plan exist as free frequencies, leaving the possibility that each of the neighbours can use them for local/regional networks. Overview of channels foreseen for national coverage according to the frequencies approved by the ITU and new frequencies for regional allotments and sub-allotment: The name of allotments Channels Kosova Kosova Valley Dukagjini Valley Mitrovica Anamorava Prishtina 7, 21,31, 44, 46, 48, 58 and 67 will be coordinated will be coordinated will be coordinated will be coordinated will be coordinated The criteria for coordination that will be used should be in line with the provisions of the GE-06 Agreement, respecting the existing entries of the GE-06 Agreement, with some modifications which will not cause harmful interferences to neighbouring countries. An alternative to coordination of new allotments could be the use of existing planned allotments with modification of the coverage area to reach the actual borders of the country, using frequencies which are already a part of the Agreement. To provide coverage for regional TV channels, frequencies in the existing GE-06 plan can be used with reduced coverage (not to use the whole area of the existing allotments 30 for broadcasting). The digital dividend should be also taken into account so the frequencies above 790 MHz should not be used. Modification of the assignment Cvilen is proposed to be moved to a different location (Zatriq) in order to achieve better coverage. Interferences, levels of interferences in neighboring countries will be lower, due to the geographical position of Zatriq and lower altitude compared with Cvilen. It should be noted that the shift is within the permitted diameter of the ITU criteria, within 30 km in air distance. The existing allotment can be extended to the north to cover the rest of the country. The typical coverage of the RPC2/RN1 network has a diameter of 115 km and the Kosova territory is a little larger than this hypothetical coverage area, which means that the distance from the west to the east border of Kosova is approximately 135 km and the distance between north and the south is 154 km. This means that receiving digital terrestrial signal in portable outdoor or mobile mode will not be possible outside the perimeter of the 135 km service area where average field strength is 78 dBµV/m. The portable outdoor mode term is used where the signal is received by portable devices with low antenna gain. Mobile reception means to receive the signal in moving vehicles. However, outside this area the average field strength will be high enough to offer the reception via roof top antenna (56 dBµV/m). Considering that the roof top antennas are widely being used to receive analogue television signals, the rest of the country will be sufficiently covered with digital television signals as well. In case of using DVB-T2, rotated constellation provide significantly improved robustness and offers up to 5dB gain which means that even when the average field strength is 51 dBµV/m, the roof top antenna reception is possible. It is worth mentioning that the size of the area of the new proposed allotment is comparable e.g. similar to areas of the neighbouring countries. This is important in the scope of equitable access to the frequency spectrum. Changing the allotment size could have an effect on the co-channel allotments (neighbouring allotments that use the same frequency) while the distance between them should be high enough not to cause harmful interference and vice versa. In Figure 3 the existing allotment is extended towards the north (striped area). The size is similar to other allotments in the neighbouring countries and the distance between co-channel allotments in the Republic of Serbia should not be a problem while the distance in the direction of Macedonia is far shorter and also agreed at the RRC-06 between Serbia and Macedonia. The picture displays the situation on channel 21, whereas the situation of other channels (7, 31, 44, 46, 48, 58, 67) in the GE-06 plan for Kosova is presented in the Appendix. Figure 3. Expansion of the Allotment Kosova Modification of allotment “Kosova” is proposed with the new testing points as displayed in the table 4. These testing points will be used when the change of the allotment shape will be proposed, according to the provisions of the GE-06 Agreement. 31 Proposed modification of the “Kosova” allotment Longitude Latitude 1 21°E37’30’’ 42°N15’20’’ 2 21°E27’16’’ 42°N17’30’’ 3 21°E21’4’’ 42°N14’0’’ 4 21°E17’39’’ 42°N9’22’’ 5 21°E17’34’’ 42°N6’37’’ 6 21°E13’47’’ 42°N6’47’’ 7 21°E10’43’’ 42°N12’43’’ 8 21°E5’15’’ 42°N13’2’’ 9 20°E46’14’’ 42°N5’16’’ 10 20°E43’36’’ 41°N59’12’’ 11 20°E45’4’’ 41°N55’29’’ 12 20°E37’8’’ 41°N52’19’’ 13 20°E38’27’’ 41°N57’55’’ 14 20°E32’15’’ 42°N13’16’’ 15 20°E20’57’’ 42°N20’28’’ 16 20°E16’0’’ 42°N20’19’’ 17 20°E12’30’’ 42°N29’12’’ 18 20°E4’16’’ 42°N34’11’’ 19 20°E08’30’’ 42°N40’04’’ 20 20°E03’52’’ 42°N45’46’’ 21 20°E13’07’’ 42°N45’43’’ 22 20°E30’48’’ 42°N52’57’’ 23 20°E42’30’’ 43°N06’56’’ 24 20°E37’44’’ 43°N12’26’’ 25 20°E48’13’’ 43°N15’55’’ 26 20°E50’18’’ 43°N10’18’’ 27 21°E09’37’’ 43°N00’21’’ 28 21°E24’25’’ 42°N50’16’’ 29 21°E23’04’’ 42°N44’59’’ 30 21°E38’43’’ 42°N40’29’’ 31 21°E45’36’’ 42°N41’05’’ 32 21°E37’59’’ 42°N27’24’’ 33 21°E30’56’’ 42°N20’31’’ Existing RRC-06 allotment “Kosova” Longitude Latitude 0 21°E9’46’’ 42°N49’58’’ 1 21°E37’30’’ 42°N15’20’’ 2 21°E27’16’’ 42°N17’30’’ 3 21°E21’4’’ 42°N14’0’’ 4 21°E17’39’’ 42°N9’22’’ 5 21°E17’34’’ 42°N6’37’’ 6 21°E13’47’’ 42°N6’47’’ 7 21°E10’43’’ 42°N12’43’’ 8 21°E5’15’’ 42°N13’2’’ 9 20°E46’14’’ 42°N5’16’’ 10 20°E43’36’’ 41°N59’12’’ 11 20°E45’4’’ 41°N55’29’’ 12 20°E37’8’’ 41°N52’19’’ 13 20°E38’27’’ 41°N57’55’’ 14 20°E32’15’’ 42°N13’16’’ 15 20°E20’57’’ 42°N20’28’’ 16 20°E16’0’’ 42°N20’19’’ 17 20°E12’30’’ 42°N29’12’’ 18 20°E4’16’’ 42°N34’11’’ 19 20°E22’9’’ 42°N33’54’’ Table 4: Proposed modification of the “Kosova” allotment 32 Figure 4 and 5: The shape of new allotment and the old and new allotment – comparison (Black-country border, White-allotment border) Modification of existing assignments in Kosova In the GE-06 plan two assignments are planned to be used in Kosova. The transmitting site Golesh is situated close to Pristina and Cviljen is a hill above Prizren. Both have maximum effective radiated power of 40 dBW. Transmitting sites are not being used for analogue terrestrial television network but are being used by KFOR. An alternative location for Golesh Peak would be very difficult to find, but the assignment of Cviljen can be modified to an existing analogue transmitting site in Zatriq. The location of Zatriq is positioned 32 km north of Cviljen and is closer to the centre of the country. The new transmitting site has a lower altitude but provides better coverage of the Kosova territory. Modification of the assignment Cviljen to Zatriq does not increase interferences to the co-channels with neighbouring countries. Regarding the effective radiated power, both transmitting sites may use the power of 49,7 dBW, as this power corresponds to the hypothetical reference network model RN1. The power of 49,7 dBW is ten times higher than the power of 40 dBW. In Watts it means that instead of 10.000 W, the effective radiated power of the proposed modification would be 93.325 W. Name of Longitude transmitting site Golesh 20.5859 Cvilen 20.4454 Zatriq 20.37315 Latitude Altitude Recorded 42.3407 42.1020 1019 m 1380m 42.26793 1036m GE-06 GE-06 Mod. of CvilenZatriq Table 5: Proposed modification of assignment Cvilen 33 The simulation of propagation of modified assignment displays that the impact on the neighbouring countries has not changed. See Figure 5. Figure 6: Calculation of modified coverage (Cvilen–left, Zatriq-right). Cvilen: 49,7 dBW (56 dBµV/m for fixed reception), Zatriq: 40 dBW (56 dBµV/m for fixed reception, 78 dBµV/m for portable, mobile reception) Spectrum issues in accessing the benefits of the digital dividend Since the digital dividend must be used by wireless broadband services, all over the world (or at least all over the region), frequency harmonization is a required condition. Such harmonization would create enormous benefits in terms of social impact and increased productivity. In particular, mobile operators and equipment manufacturers would be able to address a large market, raising their economies and reducing high costs for tele-communication technologies. Before the digital transmitters are put into operation on these channels, the analysis of harmful interferences should be done, which are possible with the operation of analogue channels in the neighbouring countries. Until 2015, analog plan GE-06A and digital plan GE-06D should be respected. The use of a digital channel which is still in use for analogue television should be agreed with neighbouring countries. Analysis of potential harmful interference should be investigated for each potential channel, based on data of the GE-06A and GE-06D plan. Digital Radio Service T-DAB According to GE-06, digital radio service T-DAB, the entire territory of Kosova is designated in one allotment, and test points determined the borders of this zone, so dimensions of allotment are identical to the dimensions of allotemnts for digital TV services DVB-T in frequency bands VHF and UHF. 34 For radio service T-DAB are reserved 2 blocks (11B and 12D) in the VHF band. Technical characteristics of the allotment and assignment according to the GE-06 are: Allotment name Reference Network Type of recipiency Reserved channels Frequency band Channel Width :Cvilen : RN5 : RPC4 : 11B and 12D : 216 - 230 MHz : 1.75 MH For T-DAB, are defined two reference planning configurations (RPC), RPC 4 for cases of mobile receipt and RPC 5 for portable internal receipt, as in the table below. Reference planning RPC 4 configurations Probability of 99% establishment Reference C/N (dB) 15 Reference (Emed)ref (dB(µV/m)) at fr = 60 200 MHz RPC 5 95% 15 66 (Emed)ref: Reference value for the average minimum of field intensity RPC 4: RPC for mobile receipt RPC 5: RPC portable internal receipt Implementation of T-DAB service largely depends on the dynamics of the transition process, especially when it comes to switching off analogue transmitters, which broadcast television programs in VHF band. In Kosova, frequency band TV/VHF is used for broadcast of the RTK television programs. Taking this into consideration, the beginning of the implementation of the TDAB is going to happen in the later stages of the transition process, with the creation of the conditions for switching-off the analogues transmitters that broadcast television signal in the TV/VHF band (ASO). After the period of switch off analog TV transmitters (ASO), a new strategy is planned to be drafted, with regard to digital audio terrestrial broadcasting services. In European countries, the implementation of T-DAB service, so far has been limited. The main reason for the stagnation of the implementation of T-DAB service refers to the relatively high cost recipients (receivers), even in countries that have carried out almost entirely the transition from 35 analogue to digital broadcasting, by which are created the conditions for release of a part of the frequency band in VHF from analog TV broadcasters. According to the experiences of European countries, the transition to digital broadcasting of the audio signal in T-DAB standard is foreseen for 2017. Therefore, taking into account technological developments, the review the effectiveness of the proposed standard, respectively proposed advanced standards for digital audio terrestrial broadcasting services should be done before 2015. Digital Dividend The transition from analogue to digital broadcasting of television programs will provide for the broadcasting a considerably larger number of television programs within an existing television channel, both in standard (SDTV) and high definition (HDTV), enabling the release of a large number of television channels. The strategy for the transition from analogue to digital television broadcasts foresees for the broadcasting of television programs using the currently most efficient standard (DVB-T2), and in this manner it provides a large number of programs within a single frequency channel. On the other hand, the compression standard for video and audio signals, within a single television program (MPEG-4 v.10), will efficiently reduce the bandwidth required to broadcast a single television program. The choice of using the latest technology, as well as the network architecture for the distribution of television programs in the Republic of Kosova, efficiently provides for the utilization of the radio frequency spectrum, thereby maximizing the digital dividend. Relying on study results from European Union countries, as well as the results of the World Radio Conference (WRC-07), Strategy defines the digital dividend. The Strategy foresees for the radiofrequency range corresponding to the television channels within the 61-69 UHF range (790-862 MHz) to be used not for television broadcasts, but for wireless broadband services. The EU likewise adopted recommendation EU C(2009) 8287 of 20 October 2009 (Facilitating the release of the digital dividend in the European Union) regulating the use of this range, better known as 800MHz, i.e. “Dividend 1”. The European Parliament, in addition to the 800MHz range, also proposes the designation of channels from the 700MHz range to be set aside as “Digital Dividend 2”, also for the development of broadband services. The International Telecommunications Union (ITU), as well as the European Union, set the goal for the development of broadband systems, networks and services by 2020. The European Union adopted the Digital Agenda 2020. These goals indicate that it is necessary to set aside the largest possible segment of the radiofrequency spectrum as the digital dividend and assign it to mobile broadband systems. The estimate of the total digital dividend capacity in the Republic of Kosova must take into account the number of required television channels in standard resolution and high definition resolution during the period after the transition to digital broadcasting. Parties responsible for managing the spectrum shall define the size of the digital dividend. 36 The Strategy incorporates the issue of the digital dividend and takes into account the existing EU acquis2. Particularly, chapter 4 omits the strategic importance of the effective use of the digital dividend, which is closely linked to an efficient spectrum management – a key to the Europe 2020 and DAE objective for sustainable and inclusive growth. This is particularly important to boost roll-out of and access to broadband/fast internet. The Broadband Transmitting Communication of September 2010 (COM 2010 472) states that: "The Radio Radio Spectrum Policy Programme proposed by the Commission would ensure that part of the digital dividend – the radio frequencies released by the transition from analogue to digital broadcasting – reserved for the use by wireless broadband technologies”. This is particularly important because wireless broadband can bring high-speed connection to people in remote areas, or others, where it is not economically viable to install a fixed line. The Commission is asking Member States to step up a gear by issuing quickly licenses to operators to use spectrum bands which have already been technically harmonized at EU level for the use of wireless broadband and to open up the 800 MHz band to wireless broadband by 2013”. 7. THE PROCESS OF IMPLEMENTATION OF DIGITAL TERRESTRIAL TELEVISION (DTT) IN KOSOVA DTT in Kosova shall go on two phases. The first phase is the transition period which will start in 2013 and the second phase is after the ASO period which will happen in June 2015. Transition period This is the period of simulcasting of analogue and digital television broadcasting. The transition period has two major characteristics: First characteristic- TV channels using the analogue spectrum should migrate to the digital networks due to the decision of the country to switch off analogue terrestrial television networks. Regarding those channels that are holding the licence for analogue terrestrial broadcasting they are Relevant EU legislation in this respect: Framework Directive (Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services), Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on reviewing the interoperability of digital interactive television services pursuant to Communication COM(2004) 541, Communication from the Commission to the Council, the European Parliament, the European Economic and Social committee and the Committee of the Regions on accelerating the transition from analogue to digital broadcasting COM(2005) 204 final. 2 37 considered as “historical” channels therefore the new selection procedure is not needed as they have to move to the new platform because of the technology changes. Instead of a selection procedure a simple notification process is needed to convert the analogue licence into the licence for digital distribution of the programme. The second characteristic - is the low capacity of DTT networks, as all analogue transmitters are still in use, and therefore very few frequencies are available for the new digital networks. Frequency is a national resource and will be given in concession in accordance with a reasonable fee which will be determined by the Government and the IMC, while the annual fee will be determined by the IMC with a specific regulation. After the adoption of the Strategy and the Law on Digitalisation, the transition period in Kosova will start with 5 channels (multiplexes); two of which will be given through a public competition and three (3) will be given to actual national broadcasters. On disposal will be also channel 67 which can be used until 17 June 2015. Three (3) historic national channels, public broadcasters and two (2) commercial channels licensed by IMC, have the right that frequency resources at their use, to use them for building digital terrestrial broadcasting infrastructure SFN according to the ITU standards for parameters of Reference Network RN1, respectively one frequency for each television. 90 days after the adoption of this strategy, national TV stations are obliged to submit to IMC a dynamic and business plan for the implementation of digitization. Full implementation of the plan in the terrain must be completed no later than April 2015. Sub-Allotments To supplement the needs of the population in the regions, based on Chapter 4 of the Final Agreement Geneva 2006, IMC will make coordination with neighboring countries to ensure channels without interference. Coordination will be made in regional areas, division of which was based on the following criteria: - Geographic - Demographic - Economic - Maximal potential reduction of ionizing radiation concentrating on transmitting points. IMC will determine the frequencies needed for the division of sub-allotments. Groupings of existing historical regional-local channels will be licensed in consortia of relevant sub-allotment. 90 days after the adoption of this strategy, local/regional TV stations are obliged to submit to IMC a dynamic and business plan for the implementation of digitization. Full implementation of the plan in the terrain must be completed no later than April 2015. 38 With the standards proposed to be used for DTT networks (MPEG-4, DVB-T2) one multiplex can accommodate from 14 to 18 SD channels or from 4 to 6 HD channels. Based on Article 141 of the Constitution of the Republic of Kosova and Article 3 of Law No. 04/L44 on the Independent Media Commission, the IMC shall prepare the criteria and competition documentation for licensing of network and multiplex service and content providers, within the timeframe determined on an action plan following the adoption of the strategy. The documentation shall be prepared in cooperation with the Regulatory Authority of Electronic and Postal Communications (ARKEP). Analogue Broadcasting Switch-Off period (ASO) This is the period when the frequency spectrum is released by switching off all analogue transmitters. Open competition for new multiplex services and new channels should be published giving the IMC the possibility to select the qualified operators and new content, balanced and attractive, for the DTT platform. After 2015, two (2) other channels for new services of network and multiplex will be released. In this case, the IMC will announce new competition for licensing of new operators based on RRCGE06. Channel 67 will be released and can be used as soon as possible for “wireless broadband” services. 8. LICENSING OF DIGITAL TERRESTRIAL TELEVISIONS (DTT) Multiplex Services as Service Providers should be selected by a public competition process. The selection process shall be based on a public competition in which case shall be required from the interested parties to fulfill qualifying criteria. All bidders who meets the terms can take part in the competition process where the frequency will be given with concession to the economic operator who fullfills all criteria determined by the IMC. In DTT, the competition processes are normally based on the criteria published in the competition documentation, where the multiplex service is selected depending on most favorable financial offer and specific criteria defined by the IMC. Specific criteria defined by the IMC are: -Participation requirements (type of company, ownership structure, experience and so on); -Criteria for the evaluation of the application: (for example applicant experience, financial aspects financial situation or credibility of the business plans, technical aspects - technical quality of the project, technical experience of candidates, technical plan for the network establishment, adoption of technologically innovative solutions); -Obligations of the rights holder to use frequencies (coverage obligations in terms of population to be covered for a certain period). 39 Considerations during competition There are two main approaches to license the DTT multiplex service and content providers. One is issuance of licence for content of multiplex service in a separate competition process, whereas the second approach is to license content providers and multiplex service in a single competition procedure. According to the experiences in countries which already implemented DTT, the second approach is more efficient. The main problem of the separate competition processes is that the procedure does not involve the agreements between Multiplex Services and content providers. In practice it happened that content providers tried to dispute the price of the multiplex service, which can not be the case when the contracts for multiplex/content are agreed by parties during the competition tender process. For this reason, the competition procedure should define: -Technical requirements for providing the DTT service; -Geographical areas (allotments) to be covered; -Frequency channels for each allotment which should be based on the SFN network; -Minimum signal field strength ensuring the reliable reception; -Standards for picture and sound coding; and -Minimum bit-rate of network and multiplex capacity. Technical parameters defining the capacity of the DTT network are modulation and code rate of convolution coding. The higher modulation (265-QAM) and lower code rate ratio (5/6) gives the highest capacity of the multiplex. This capacity can vary by choosing different guard intervals which depend on the physical design such as distances between transmitters of the SFN network and potential self interference areas due to the geographical/propagation situation. The guard interval is best decided by the multiplex service. Considering the parameters of the DTT multiplex the safe way is to define the minimum bit rate of multiplex capacity and to leave the decision on the rest of the technical parameters to the multiplex service itself. The minimum capacity of the multiplex service should be at least 35 Mbit/s. Minimum coverage requirements and the dynamics for the establishment of multiplex service Multiplex service should comply with the requirements of the competition regarding the dynamics of the coverage of the DTT network in order to meet the planned switch off date when the digital network should reach the same coverage as analogue networks. This is important as the viewers should be able to receive the digital television signal after ASO. The result of the competition is the licence for allotment granting the use of the frequency for multiplex on a particular territory (allotment) without specific data of single transmitters in the network, which are defined (in the addition to the allotment) for particular transmitting site (assignment) with the parameters such as: 40 Location of the transmitter with the geographical coordinates and altitude (above above sea level); Effective radiated power of the transmitter; and Antenna type and the radiation pattern, gain and elevation angle, polarisation and the direction of the main radius. 41 IV. FINANCIAL CONSIDERATION Financial cost for transition to digital broadcasting Realization of the national strategy for digital broadcasting requires a special financial cost. The State must ensure that the population has access to television programs for families who can not bear the costs required, respectively subsidies for families of social assistance category should be planned. According to the Statistics Agency of Kosova, at the end of 2012 is estimated to be 31111 families who benefit from social schemes. For subsidy of this category, respectively for ensuring STB for them the amount that should be invested reaches the amount of 1,088,885.00 Euro (calculating the value of one STB, MPEG4 DVB-T2 of 35 Euro). However, in addition to this category are also some other beneficiaries who should be subsidized. Great assistance in securing funds for digitization, for EU member countries and those who claim to join the EU, was given also by the European Commission. Substantial incomes can be realized also by private investors or concessioners. Relying on political reality in Kosova access to important international mechanisms, it results that the realization of digitization process completely will depend on our possibilities. Financial impact on broadcasters In order to determine what would be the right cost of access to the networks, the first step should be an accurate cost estimation of each element composing the digital network. The elements3 that build up a digital network, typically, are: IP Contributive Network; Multiplex - Head-End; Distributive Network; and Radio-Diffusive Network. Operating costs (electricity, maintenance, personnel, etc.) Networks are in reality 30-40% more expensive compared to analog ones, but due to the fact that the same digital network is used by more than one TV channel, the price per channel is lower than in analogue. Public Television (RTK) Public broadcasters in the EU countries have played an important role during the transition to digital broadcasting. Many states have provided various forms of financial support to public broadcasters to successfully switch from analogue to digital. Besides the cost of subsidies, the cost for digitalization of public broadcaster should also be considered in order to enable citizens of Kosova have access to programs of public interest. On the Law on Digitalization, for RTK is set to have a Multiplex in which will be accomodated only programs which itself produces. The Assembly of the Republic of Kosova, as the founder of Radio Television of Kosova, should ensure 3 Their definitions are given at the technical part the necessary financial support to the RTK, which has the legal obligation of coverage of all the territory of Kosova. Commercial TV stations All television stations will be faced with additional costs during the digitalisation process, particularly during simulcasting period, when both the analog and digital networks are in operation. However, the financing of the analog networks during the simulcasting period for those TV channels broadcasting also in digital network is a viable option. The burden of double network costs should be shared between broadcasters while long-term double operation (analog and digital) is actually not in the interest of the broadcasters. To reduce the costs of the transition period the fast transition period in preferable. Financial impact for viewers Consumer protection is an important aspect during the transition to digital broadcasting. Consumers should be protected from spending on inadequate television apparatus while at the same time market competition must be preserved. It is therefore very important to define the technical specifications and standards of equipment needed by households. Technical solution provided in strategy implies high cost of purchasing digital signal receiving devices (Set-top-box), which should be subsidized by the Government. The promotional campaign for the digitization process should contribute to consumer protection. During the campaign, the consumer must be informed about the process and modalities of any subsidies. Funding Models / The role of state institutions Regarding the role of the state and acceptable forms of public support, there are different European best practices. Subsidies for vulnerable groups of citizens Best practices and European experiences shows that the best option is the subsidizing of the purchase of the receivers (Set-top-box). Subsidy schemes should encourage all households to buy a DVB-T receiver in order to minimise the transition period and thus reduce the overall costs of the analog to digital switchover process. Experiences in the region shows that subsidies have been used in the following ways: -The provision on DVB-T receivers or -Subsidizing a portion of the price of the DVB-T receiver in the form of coupons. The following are some examples of subsidies in the EU: Country Austria Czech Republic 43 Description The Austrian government established a digitization fund of 6,75 million EUR. DVB-T Network is commercial and not subsidized by the state. Czech government funding for conversion to digital terrestrial television was direct as well as indirect. Government funded: Information campaign and market monitoring, reimbursed partial costs of the hardware for some broadcasters with the help of European grants. Italy Germany Croatia Slovenia 110 million EUR was spent from the state budget to help households buying a digital receiver (Set-up box) of the amount of 50 to 70 EUR. The primary objective was to strengthen the digital terrestrial broadcasting. The transition was successful because the period of parallel transmission (simulcasting) was short (10 months) also due to the successful awareness and information campaign. Government subsidy scheme for vulnerable families. Subsidies of the cost of the analogue networks in the simulcasting in transition period (broadcasters), government has paid for the DVB-T receivers for the low income families. The Government of Kosova should establish a working group to develop a plan for subsidies for the vulnerable categories of households. The subsidy scheme should take into the account the best practices in the EU. According to data from MPMS (Ministry of Labour and Social Welfare) in 2011: - 31.111 kosovar families with 132.626 members are currently involved in the social scheme. The number of households has changed from year to year due to adoption of new laws, strengthening internal control of MPMS, adoption of new criteria and application of new legal acts. Social aid is in the process of reduction in the past two years. - In Kosovo there are 113.043 pensioners and 34.722 pensioners based on individual savings. MPMS does not have information on pensioners living alone, without support from other family members. MPMS suggests that this category is not included in the subsidy scheme. - 13.232 families of martyrs are receiving assistance from the scheme. These families are divided into 11 categories. MPMS suggests that all these families are included in the subsidy scheme for digitalization. - In Kosovo there are 2.600 families (17.531 pensioners-persons with disabilities) who are caring for children with disabilities. MPMS suggests that all these families are included in the subsidy scheme for digitalization. 44 V. INFORMATION AND PUBLIC AWARENESS An awareness campaign of the citizens of the Republic of Kosova is very important in the process of transition from analogue to digital. The citizens should be aware of the changes in the reception of television programmes, about the important dates (date of switch off analog broadcasting) and where and how to buy the necessary approved reception equipment (receivers). For this purpose, the IMC continuously informs about activities throughout the process of digitization and raise awareness of the opinion and competent bodies, on the changes that will occur during the digitization process, so that the process be accomplished within the time planned. In line with the strategic development plan and action plan, the IMC has designed its activities, tasks, dynamics of their performance, stages and directions of development of its strategic plan to ensure effective transition from analogue to digital broadcasting. IMC will coordinate informative activities with the Government, relevant ministries, other institutions and civil society. For the information and awareness campaign of the public, along with the commitment of local and international experts, the IMC will contribute to the realization of the planned tasks: Identification of individuals and groups of interest who need to be engaged in activities of information campaign and public awareness; Proposal of idea-concepts for television and radio spots, billboards and printed informative materials; Conception of debates, round tables, meetings and interviews with various structures of society, through the media and direct meetings with the public; Supervision and reporting on the effects of public communication during implementation of the digitization process; Arranging special meetings of the IMC with media representatives; Realization of specific programs, with members of the Independent Media Commission, media representatives, experts of digital technology and other parties in this process; Notification of local and international mechanisms, in particular the International Telecommunication Union - ITU, regarding unfavorable situation of Kosova in digital frequency plan, which was negotiated by the administration of Serbia, and which plan leaves 48% of the area of Kosova outside the coverage; Realization of thematic visits in different environments, bodies, institutions, neighborhoods, municipalities, districts to explain the importance and benefits of digital broadcasting; Placement of billboards, materials and distinctive signs of digitalization, presentation of audiovisual spots and sponsorship of cultural and sports activities on the importance of digital broadcasting; Opening of call centers during the switch-off of analogue signal to provide practical information in order to help citizens regarding the problems of technical nature; Providing of the information on how can be equiped with the receipt device (receiver); Providing the necessary information on digitalization through the official website of the IMC and social networks as well. 45 9. ACTION PLAN FOR REALIZATION OF THE STRATEGY ON DIGITAL BROADCASTING IMC Finalization and adoption of the strategy by the IMC / September 2012 GOVERNMENT Adoption of the strategy prepared by IMC – last quarter of 2013 ASSEMBLY Adoption of the Law on Digitalization drafted under the patronage of the Ministry of Economic Development (MED) / last quarter of 2013 (after the adoption by the Government of the strategy prepared by the IMC) IMC Amendment of IMC existing bylaws – last quarter of 2012 1. IMC Regulation of Cable Distribution of Radio and Television Programs in Kosova adopted in 2007 will be amended in a new Regulation for the Distribution of Audio-Visual Media Services and Radio Media Services through Network Operators. 2. Regulation on the Level and Manner of the Payment of the License Fee IMC Adoption of the new IMC regulations for the new audio-visual media service – Adoption of the Regulation for the Categorization of Broadcasters (division on regional and local) – last quarter of 2013 Adoption of the Regulation on Determination of criteria on the program content in a Multiplex – first quarter of 2014 Regulation for the realization of stimulated programs (first quarter of 2014) Adoption of the Regulation on Logical Channel Numbering (LCN) – first quarter of 2014 Adoption of the Regulation on Electronic Program Guide (EPG) and Interactive Program Guide (IPG) – first quarter of 2014 Adoption of Documentation Package for DTT licensing (Digital Terrestrial Television) – second quarter of 2014 IMC – Awareness campaign of the public for the process of digitalization Information is a process which will occur continuously until the switch-off the analogue system and it will be implemented in phases: 1. Before the adoption of the strategy (to provide necessary information and also to ensure data to enable fulfillment of the action plan of the IMC) 2. After the adoption of the strategy by the Government (to make public information how is decided to realize the Digitalization in the Republic of Kosova) 3. During the transition stage (to facilitate the process for the population of Kosova to start having access to available digital signals) 4. Before the stage of switch-off analogue broadcasting (to ensure that the population of Kosova is not left without access to television signals) 46 IMC Beginning of transition period – 2014 Analogue switch off (ASO) is determined to be not later than 17 June 2015 47 APPENDIX A - List of abbreviations ASO - Analogue Switch-Off. Switching off of the transmitters for analogue terrestrial broadcasting; DVB-T - Digital Video Broadcasting-Terrestrial. A DVB standard for transmission and broadcasting of digital television signal over a terrestrial network of transmitters; DVB–T2 - The next generation of DVB–T standard; EPG - Electronic Program Guide. Electronic program guide is an application (including service content) that enables direct access to broadcasting and additional contents (for example, teletext with additional contents); IPG – Interactive Program Guide; GE06 - an international radio frequency allocation plan for the needs of digital terrestrialtransmission of radio and television programs, adopted at RRC06 in Geneva in 2006. According to this plan, the switchover to digital terrestrial broadcasting in VHF band III and in UHF bandwidths IV and V was stipulated. H.264 AVC - H.264 Advanced Video Coding. An ITU-ΠΆ recommendation that defines the improved video coding standard, which is identical to the MPEG-4 v10 standard; HDTV - High Definition Television. A television standard with high resolution of video and audiosignals; ITU - International Telecommunication Union; MPEG - Moving Picture Expert Group; RRC06 - A Regional Radiocommunication Conference held in Geneva in 2006; SDTV - Standard Definition Television. Digital television transmission with standard resolution ofvideo and audio signal, with 4: 3 picture aspect ratio, with 625 (Europe) lines; SFN - Single Frequency Network. A broadcast network where all transmitters simultaneously sendthe same signal over the same frequency channel; STB - Set Top Box. An external digital television receiver connected to the analogue television through SCART or HDMI connector to display digital television programme on analogue television set; UHF - Ultra High Frequency. Frequency spectrum from 300MHz to 3GHz; VHF - Very High Frequency. Frequency spectrum from 30MHz to 300MHz. 48 APPENDIX B - Co-channels allotments in the region (7, 31, 44, 46, 48, 58, 67) 49