The 700 MHz Band

Darko RatkajEuropean Broadcasting Union

The impact of UHF spectrum reallocation on TV markets in Europe

Poznań Media Expo Conference 2014TV Day - The future of terrestrial television in Poland

09 April 2014

CONSUMER DEMAND FOR TELEVISION

2.7 mil. households (8 mil. viewers) in Polanduse DTT to access TV services.

Television is the medium used most by Europeans:87% say they watch it every day or almost every day and 97% at least once a week.

Standard Eurobarometer 80, November 2013

In 2012 every person in Poland watched on average 4 hours and 3 minutes of linear TV a day.

Evolution of linear and non-linear TV viewing Average in the EU ‘Big 5’

Source: IHS – ScreenDigest: Cross-platform Television Viewing Time FY 2012

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

50

100

150

200

250

300

218 217 217 219 219 226 230 233 232 232 231 230

0.5 1.0 2.2 4.1 6.8 10.2 13.6 17.5 22.0 25.5 29.1 32.5

Linear average Non-linear average

Min

utes

per

per

son

per d

ay

Linear TV

Non-linear(OTT, HBB, VoD)

Terrestrial Cable Satellite Broadband0

10

20

30

40

50

60

46

35

21

10

21

32

57

2

EU Poland

HOW IS CONSUMER DEMAND FOR TV SATISFIED?

TV reception by households

Sources: EU - Eurobarometer 396, Aug. 2013Poland – IHS, ScreenDigest

Note: Adds to more than 100% as households may use more than one platform.

% HH

These benefits cannot easily be replicated on other platforms.

• Free-to-air, live viewing• Near-universal coverage (in many countries >98% of the population)• Primary TV platform for 230 million viewers in the EU (46% population)

• More than 2000 TV channels in the EU (national, regional, and local)

• Efficient way to serve large audiences, affordable• Key platform for Public Service Media• Coexistence of Public Service and commercial TV (both FTA and pay-TV)• Synergies with other platforms (HbbTV, catch-up TV, second screen)• Ensures market competition and consumer choice• Resilient, essential infrastructure in emergency situations

THE CURRENT ROLE OF DTT

EBU VIEWS ON TERRESTRIAL BROADCASTING

EBU – Recommendation R 131

Terrestrial Broadcastingin Europe

tech.ebu.ch

Apr/20

09

Jun/2

009

Aug/20

09

Oct/20

09

Dec/20

09

Feb/20

10

Apr/20

10

Jun/2

010

Aug/20

10

Oct/20

10

Dec/20

10

Feb/20

11

Apr/20

11

Jun/2

011

Aug/20

11

Oct/20

11

Dec/20

11

Feb/20

12

Apr/20

12

Jun/2

012

Aug/20

12

Oct/20

12

Dec/20

12

Feb/20

13

Apr/20

13

Jun/2

013

Aug/20

13

Oct/20

13

Dec/20

130

500

1000

1500

2000

2500

Channels on DTT networks across the EU area

No.

dig

ital T

V ch

anne

lsMARKET DEMAND FOR DTT

Source: Mavise TV database

22 channels in Poland

Why is the 700 MHz important?

ON SPECTRUM MANAGEMENT• Spectrum allocations are a result of international negotiations

(e.g. within the ITU and the CEPT)• Frequency bands are divided amongst different radio communication

services (e.g. broadcasting, mobile, aeronautical, satellite, ...)

• The actual use of the spectrum is decided nationally• It must be in accordance with the allocations

in a given frequency band• In some cases bilateral coordination is required

before the frequencies can be assigned to users

• Harmonisation of the spectrum use is beneficial• easier coordination and cross-border operation• easier interference management• economies of scale• ...

Two-step process

THE UHF BAND ALLOCATIONS

470 MHz 862 MHz21 30 40 50 60 69

Broadcasting2006

470 MHz 862 MHz21 30 40 50 60 69

Broadcasting

790 MHz

61

BC + Mobile2007

470 MHz 862 MHz21 30 40 50 60 69

Broadcasting

790 MHz61

BC + Mobile

48

694 MHz

BC + Mobile2012

470 MHz 862 MHz21 30 40 50 60 69

790 MHz

61

BC + MobileBC + Mobile2015 ? 694 MHz48

XX

X

500, 600 MHz 700 MHz 800 MHz

THE IMPACT OF THE LOSS OF THE 700 MHZ BAND ON TERRESTRIAL BROADCASTINGDirect impact (short to medium term):• Transitional issues to free the band from DTT

• costs for broadcasters and the viewers• risk of disruption of services

• Loss of 30% of the bandwidth capacity(43% if the 800 MHz band is taken into account ) • reduced platform capacity• reduced scope for future development

None of this is in the interest

of the European audiovisual industry or the consumers!

Not the same in all countries!

Indirect impact (long term):• Weakened DTT platform; less competition• Negative signal about the future of DTT

• lack of certainty for future investments• no innovation; risk of decline, end of DTT• loss of the only free-to-air platform

with potentially universal reach

How important is DTT in your country?•penetration – how many households are receiving terrestrially•market potential – how much content is needed for a viable DTT

Public value of DTT•is there awareness amongst decision makers•how is the pubic value protected and promoted

National audiovisual media policy•is there a commitment to Public Service Broadcasting and Free-to-Air•which infrastructure will support the public policy objectives•what is the development roadmap for this infrastructure

Are there any alternatives to DTT•can they deliver the same benefits•when will they be available•at what costs•how to migrate the audiences

QUESTIONS FOR THE REGULATORS

These questions must be raised and

answered before any decisions on

the radio spectrum are taken!

RECOMMENDED APPROACH TO DECIDE ON THE 700 MHz BAND

• De-couple the decision on the actual use of the 700 MHz band in Poland from the ITU process leading to mobile allocation

• Scrutinise the mobile spectrum requirements before considering any additional spectrum allocation• Verify the assumptions about future demand• How much traffic growth is economically viable?• The use of the already allocated spectrum

• Cost / benefit analysis to be done before taking a decision• Overall social and economic impact of the change• Incremental benefits of using the 700 MHz band for mobile services?

• Take the necessary time to prepare the decision, there is no urgency• Mobile industry is busy deploying networks in the 800 MHz band• Lack of demonstrated market demand for more UHF spectrum• There are number of ways to increase mobile network capacity without

additional UHF spectrum

IN THE EVENT OF RE-ALLOCATIONOF THE 700 MHz BAND TO MOBILEEnsure ...

• Planned and well managed transition process

• Realistic time frame for freeing the band from DTT transmissions

• Recovery of the costs incurred by broadcasters and the viewers

• Replacement capacity for the affected DTT services• Replacement capacity for the affected PMSE services

(wireless microphones currently operating in the band)• Protection of DTT and PMSE services below 700 MHz

from the mobile interference• Long-term availability of the remaining part of the UHF spectrum

for broadcasting services to facilitate future development

• Continuation of free-to-air TV services

• Access to the new mobile broadband platform for public service media

THANK YOUFOR LISTENING TO ME!

QUESTIONS?

Darko Ratkajratkaj@ebu.ch

Additional information

Costs

Number of concurrent users

Broadcast platforms

The Internet

Costs of distribution of media services

Capacityper user

Number ofconcurrent users

Minimum capacityrequired for

a given service

progressive QoS degradation

Broadcast platforms

The Internet

Capacity available to individual users

Data volumes delivered via DTT compared to the Internet.

PB/month Cisco VNI 2012: Broadband traffic forecast in the EU

2011 2012 2013 2014 2015 2016 20170

5000

10000

15000

20000

25000

30000

Fixed broadband Mobile broadband

The total amount of data delivered via DTT networksin 2012

http://www.marketingcharts.com/wp/television/how-tv-and-online-video-consumption-stack-up-36594/

How much video content is delivered over broadcast networks compared to the Internet?

http://www.marketingcharts.com/wp/television/are-young-people-watching-less-tv-24817/

http://www.marketingcharts.com/wp/television/how-much-tv-is-being-time-shifted-26229/

http://www.marketingcharts.com/wp/television/mobile-viewing-remains-a-fraction-of-total-tv-hours-30058/

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