1. Poznań Media Expo Conference 2014
TV Day - The future of terrestrial television in Poland
The 700 MHz Band
The impact of UHF spectrum reallocation on TV markets in Europe
Darko Ratkaj
European Broadcasting Union
09 April 2014

2. Consumer demand for TeleVision
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.
2.7 mil. households (8 mil. viewers) in Poland
use DTT to access TV services.

3. Non-linear (OTT, HBB, VoD)
Evolution of linear and non-linear TV viewing Average in the EU ‘Big 5’
Non-linear (OTT, HBB, VoD)
Linear TV
Source: IHS – ScreenDigest: Cross-platform Television Viewing Time FY 2012

4. how is consumer demand for TV satisfied?
TV reception by households
Sources:
EU - Eurobarometer 396, Aug. 2013
Poland – IHS, ScreenDigest
Note: Adds to more than 100% as households may use more than one platform.
% HH

5. The current role of DTT
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
These benefits cannot easily be replicated on other platforms.

6. ebu views on terrestrial broadcasting
EBU – Recommendation R 131
Terrestrial Broadcasting
in Europe
tech.ebu.ch

7. market demand for dtt
22 channels in Poland
Source: Mavise TV database

8. Why is the 700 MHz important?

9. 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

10. THE uhf BAND ALLOCATIONS
470 MHz
862 MHz 21 30 40 50 60 69
Broadcasting
2006
700 MHz
800 MHz
500, 600 MHz
470 MHz
862 MHz 21 30 40 50 60 69
Broadcasting
790 MHz 61
BC + Mobile
2007 X
470 MHz
862 MHz 21 30 40 50 60 69
Broadcasting
790 MHz 61
BC + Mobile 48
694 MHz
2012
470 MHz
862 MHz 21 30 40 50 60 69
790 MHz 61
BC + Mobile
2015 ?
694 MHz 48

11. the impact of the loss of the 700 MHz band on terrestrial broadcasting
Direct 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!
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
Not the same in all countries!

12. Questions for the regulators
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
These questions must be raised and answered before any decisions on the radio spectrum are taken!

13. 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

14. in the event of re-allocation of the 700 MHz band to mobile
Ensure ...
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

15. thank you for listening to me!
questions?
Darko Ratkaj

16. Additional information

17. Costs of distribution of media services
The Internet
Costs of distribution of media services
Costs
Broadcast platforms
Number of
concurrent users

18. progressive QoS degradation
Capacity available to individual users
Capacity
per user
Broadcast platforms
progressive QoS degradation
Minimum capacity
required for a given service
The Internet
Number of concurrent users

19. Data volumes delivered via DTT compared to the Internet.
Cisco VNI 2012: Broadband traffic forecast in the EU
PB/month
The total amount of data delivered via DTT networks in 2012
Broadband networks are not capable of taking over a substantial part of services (and audience) that are currently delivered over terrestrial broadcast networks. This is because of their:
- insufficient capacity
- incomplete coverage
- too high costs
Data in this slide data represent the following:
1. Fixed broadband traffic as predicted by Cisco VNI 2012 for Western Europe (
2. Mobile broadband traffic as predicted by Cisco VNI 2013 for Western Europe (
3. The data volume delivered via DTT networks in 2012 is based on the following assumptions for terrestrial broadcast networks:
average TV viewing: 4 h /day per household
in the EU27 countries: mil households receive terrestrially
1 hour of SDTV @3 Mbps => 1.35 GB
1 hour of HDTV @7 Mbps => 3.15 GB
mix of broadcast programmes in 2012: 80% in SD, 20% in HD
In reality the DTT traffic has not been delivered in a unicast (one-to-one) mode and therefore cannot be directly compared with broadband traffic.
However, if the same TV services had been delivered over one-to-one connections (instead of DTT broadcast) the equivalent traffic would have been: PB/month

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

21. http://www. marketingcharts

22. http://www. marketingcharts

23. http://www. marketingcharts