digital switch-over - mobile asia expo | mobile asia expo 2013
TRANSCRIPT
Copyright © 2013 Farncombe
Digital Switch-Over:
Best Practices for Governments, Regulators and the Industry
June 2013
Confidential and Proprietary 2
An international firm specialised in DSO and digital video delivery
We have advised governments and broadcasters around the World on:
–Strategy for DSO;
–Specifications and Technology Strategy;
– Implementation of Subsidy Schemes.
–Connected TV Platforms/hybrid standards;
We are independent:
–Not owned or related to any vendor, service provider or standards body.
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EXAMPLES OF ASO TIMELINES It takes time to switchover with minimal disruption to users – it is worth learning
from the experience of other countries to avoid the same mistakes
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UK
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Source: DVB.org, DigiTAG
# of years
Countries that started later took
less time to switchover, as
technologies were more mature, devices were
cheaper and they could learn from the
experiences of others’
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DSO – KEY RISKS The key challenge is finding a balance between an attractive, future-proof
platform while keeping costs and complexity under control.
Loss of
Quality and Control
Cost and Complexity
Creation of legacy system makes service outdated and require second switchover;
Coverage and line-up worse than analogue;
STB base in the market is too fragmented to create feasible addressable market for new services.
“Overkill” specifications make decoders expensive and slow DTT adoption;
Too complex certification and conformance process inhibit development of manufacturers’ ecosystem;
Lengthy simulcasting period;
Premature or costly set-top-box subsidies and help scheme.
Source: Farncombe
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DSO KEY ACTION LIST FRAMEWORK
3. Develop funding policy
1. Develop DSO policy & Legal framework
3. Manage radio spectrum and coordination matters
2. Implement licensing framework
4. Establish principles for Help Scheme
4. Plan & Deploy DTT network
3. Develop Communications plan
2. Establish DTT branding & Conformance regime
1. Develop Consumer Proposition
5. Establish receiver specifications & costs
1. Decide on Technology & Standards
2. Establish plan for ASO Government
(G)
Regulator(s) (R)
Industry (I)
Source: Plum, Farncombe
In conjunction with Plum Consulting, Farncombe has developed a report with Practical Steps for the DSO to complement the ITU guidelines
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DSO KEY ACTION LIST FRAMEWORK
3. Develop funding policy
1. Develop DSO policy & Legal framework
3. Manage radio spectrum and coordination matters
2. Implement licensing framework
4. Establish principles for Help Scheme
4. Plan & Deploy DTT network
3. Develop Communications plan
2. Establish DTT branding & Conformance regime
1. Develop Consumer Proposition
5. Establish receiver specifications & costs
1. Decide on Technology & Standards
2. Establish plan for ASO Government
(G)
Regulator(s) (R)
Industry (I)
Source: Plum, Farncombe
This presentation will focus on some important aspects of DSO that are often given less priority
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GOVERNMENT: ASO PLAN – DSO TASK FORCE The DSO Task Force must have a clear mandate from the Government to lead the
planning and implementation of the switch-over programme.
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tory
Programme Office
DSO Task Force
Wo
rk-s
trea
ms
Media
Supply chain (OeMs,
retailers, installers)
Government (NRA,
Ministries, etc)
Consumer Groups &
Institutions
Industry (Broadcasters, Trade Bodies & Associations)
Source: Farncombe
Confidential and Proprietary 8
GOVERNMENT: DSO HELP SCHEME – KEY COMPONENTS
A Help Scheme strategy must have clear objectives and cost allocation
Roles and responsibilities
Relations with other bodies
Communication
Implementation plan
Financial resources
Budget, schedule and cost allocation
Type of assistance
Level of assistance
Conditions for eligibility
Applicable period of availability
Exclusions
Governance & Implementation
Framework
Assistance Scope
(Eligibility Criteria)
Funding & Expenditure
Source: Farncombe
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GOVERNMENT: SUBSIDY TIMING IS IMPORTANT Most countries cannot wait for total spontaneous migration, but timing of
introduction of subsidies must be carefully planned
Subsidise STBs 2013
Subsidise STBs 2015
2013 2015 20xx (Analogue Switch off)
Cost savings from delaying
Cost impact for subsidy delay
Source: Farncombe
Waiting until after there is a
established market for
devices can save money as device
costs fall with time and some
people will adopt DTT naturally as they change TVs
or buy STBs
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REGULATORY: MARKET STRUCTURE & LICENSING
Source: Farncombe
It is essential that processes are in place to issue licenses before the DSO starts
Content creator
Broadcaster/TV service provider
MUX owner/ operator
Site owner Network/
Transmission operator
Device manufacturer
Aggregation Multiplexing Distribution Network
Transmission Reception/
Presentation
Content Creation
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REGULATORY: TECHNOLOGY & STANDARDS It is critical to evaluate options and understand the long-term implications of
technology choices
Key implications
Standard STB price;
Risk of creation of legacy device base and “second DSO”.
Security Lower barrier to entry for paid-for DTT services in the future;
Ability to enable addressability and geographical control.
Network Specifications
Overall cost of coverage, availability of services;
Ability to enable mobile TV.
HD vs. SD Number of services available for each broadcaster;
Adoption and attractiveness to consumers .
Interactivity Cost of royalties for manufacturers and developers; required time
for conformance and integration;
Long term structure to enable connected TV services.
Source: Farncombe
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EXAMPLE OF NEW FREE-TO-AIR PLATFORM:TNT 2.0
HbbTV1.5 – based initiative to enable
– Live streaming: video services, live channels, event channels, etc;
– Premium content and pay-TV services on connected TVs;
Mandates specifications for DRM, adaptive streaming, as well as other features
Technical specifications published in July 2011, test suite for OeMs released in July 2012
Standard adopted this year in France, Spain, Belgium, Finland, Netherlands, Russia, Poland
Source: farncombe
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EXAMPLE OF HbbTV APPLICATION: PROGRAM RESTART
France Television launch a Program Restart application on HbbTV in September 2012
– When viewers are switching to the programme after it began, an HbbTV Pop Up is offering to “restart the program”
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EXAMPLE OF HbbTV APPLICATION: CATCH UP TV & VOD
Most channels are already offering Catch UP TV service on the television through IPTV.
HbbTV 1.5 enables these offers to be made available on all compatible Connected TVs
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EXAMPLE OF CONTENT –OWNERS INITIATIVE: YOUVIEW
A “walled garden” to protect advertising
An unified UI and backwards EPG to avoid multiple integration processes
A centralised search engine
Collection of usage statistics and viewing behaviour;
Centralised and managed security
A brand identified with content availability
YouView Shareholders
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SOME OF THE DECISIONS THAT DID NOT TURN RIGHT
Decision
France chose to launch HD, MPEG-4 using DVB-T
The UK Freeview service was introduced without any means to monetise additional services
The French DTT service did not mandate an EPG ecosystem
Italy mandated (MHP) to ensure its penetration on the base
Multiple Pay DTT operators in Europe launched with proprietary systems and expensive STBs
Impact
Now it is clear that DVB-T2 is a more efficient standard - it will require a second digital switchover to get there
A small specification change would have enabled paid for enhanced services across the whole STB platform
Now it is too late to implement it
MHP implementation did not have a conformance regime – many STBs cannot be used for interactive applications
Many failed– standards can drive down costs and make Pay-DTT feasible.
There are many interlinked and complex decisions that need to be taken into account.
Source: Farncombe research
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INDUSTRY – GROUPS Industry co-ordination is key. Countries with cross-industry support tend to benefit
from shorter transition timescales.
Defining digital standards &
specifications
Managing technical platform
Co-ordinating and selling
digital transition
Supporting vulnerable
groups
“Digital TV Group” “DTT Multiplex Operators Co.” “DSO Task Force” “Help Scheme”
Publishes and maintains the technical specification of the DTT platform
May provide interoperability and certification regime for standards-compliance
Operational oversight of all multiplexes
Manages new channel launches, channel numbering, including EPG requirements, ensuring consistency across different STBs and iDTVs
Independent, platform-neutral, non-profit organization appointed for co-ordinating the implementation of switchover
Works closely with government and regulator(s), industry and supply chain
Tasked with subsidising/assisting vulnerable groups with digital conversion
Option of contracted-out but overseen/ advised by Government
Source: Farncombe
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INDUSTRY – DTT CONSUMER PROPOSITION DTT must be more attractive than analogue services to ensure an easier transition
and take-up by users
The extended channel choice given by DTT has proven to be a key driver of adoption; re-broadcast (+1) services offer flexibility and attract new audiences.
EPG, subtitling, middleware that enables VoD, e-learning, e-government services, etc, increase the value of the platform.
High-definition improves the overall perception of the service although in most countries it is less of an adoption driver than multichannel.
Portability/ mobility can address new niches (e.g. bus services) and enable multi-screen experience.
Free-to-view is an important driver for adoption – but paid components can make it more attractive. Paid platforms that co-ordinate technical standards are more likely to succeed.
Importance Service Dimension
Additional Channels
Interactivity
HD services
Portable/ Mobile reception
Free or Pay?
Source: Farncombe
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COMMUNICATIONS MODEL Adopting a layered Communication model with emphasis on local activity can
increase the effectiveness of the Communications Plan.
National Advertising
Regional Communications
Local Communications
Community
1-on-1
Third-party support
National Broadcasters; Online outlets; Magazines;
Industry trade publications
Charities and Associations;
Retailer & other POS material
Local TV and Radio; Daily newspapers;
Events
Communications Model
Broadcast messages on mobile phones
Source: Digital UK, Farncombe
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INDUSTRY – DTT CONFORMANCE LOGOS A well-planned conformance regime can ensure that devices in the market are
sound and gives consumers more confidence when buying new devices
Conformance logos can give confidence to
consumers of which services they can receive when they are buying devices, e.g.:
– Basic DTT Channels;
– DTT Channels plus VoD/catch-up functions over e.g. HbbTV;
– DTT Channels including HD channels;
– Pay Channels (e.g. devices with a CA slot).
DigiTiVi
DigiTiVi
Illustrative: DTT platform conformance logos
DigiTiVi+
Source: Farncombe
DigiTiVi
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SUMMARY: SOME OF THE KEY LESSONS LEARNT
Extended channel choice has been proven to be a key driver of adoption, but other features such as high-definition, mobile reception, EPG and on-demand functionality (catch-up TV integrated with linear TV also help attract viewers.
Product differentiation: DTT must be attractive to users 1
Countries which initially advertised DTT benefits and only later advertised the switch-off deadline have enjoyed easier transitions, especially if tied to a clear receiver conformance regime and DTT brand/logo.
Clear communications 2
Subsidies for DTT devices help speed up the process, but support to installation of antennas, and good co-ordination and logistics are also essential. Specifications for devices must be thought through to enable long-term competition and enable new services.
Well-managed subsidy/ Help scheme 3
Independent of the time taken to plan the switch-off and implement subsidies most people will leave until the last minute to migrate – a gradual transition process helps spreading resources more efficiently and learn from the initial experiences.
Gradual Transition Process 4
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SUMMARY: SOME OF THE KEY LESSONS LEARNT (cont.)
Many of the features that can help make DTT attractive depend on cross-industry co-ordination such as the creation of a EPG, communications, numbering and hybrid TV
Cross-industry co-ordination 5
The DTT plan cannot be imposed to the industry – broadcasters and manufacturers must be in-line with objectives, support trade-offs required. Deadlines must be realistic, otherwise services will not be ready when expected and users will not migrate.
Develop a credible plan with the participation of all key stakeholders 6
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CONTACT INFORMATION
Adriana Menezes Whiteley Head of Strategy Practice [email protected]
+44 203 008 8547