1. University of Pisa International Semester The Economics of the Information System in the EU Diffusion of the Digital Terrestrial Television in the EU Academic Year 2007-2008 Professor: Marco Guidi

2. Main Topics What is the DTT ? Digital Terrestrial Television DTT and Innovations Devices Interventions of the EU in the field of Telecommunication Switch-off in the EU Digital television and DTT in UK, Italy, Spain, Germany, France Conclusions

3. Digital Terrestrial Television - DTT digital signal analogical signal

4. DVB : Digital Video Broadcasting Digital Terrestrial Television - DTT a whole range of international standards created for the involvement and the diffusion of the digital television. 3 most important ways to receive the analogical and digital signals: satellite, cable and terrestrial. 3 different international standards: DVB-S : for satellite DVB-C : for cable DVB-T : for terrestrial

5. DTT and Innovations (1/5) The Dtt : whole range of new services and functions The most relevant innovations of the DTT are: 1 - High audio-video quality 2 – Multi-channel-TV 3 - Pay-tv 4 - Interactivity 5 - Less electromagnetic pollution

6. Improvement of the audio-video quality digital signal is cleaner than the analogical signal: technology of suppression of the noises digital images are free from the interferences that are typical of the analogical television DTT and Innovations (2/5)

7. DTT and Innovations (3/5) Multichannel-TV Frequency used by the digital standards : from 5 to 10 channels * Bigger offer of the programming: Frequency used by the analogical standards : only 1 channel Lots of channels For free Pay-per viewNazional foreign DTT: more powerfull in terms of quantity * n. channels depends on the type and the quality

8. DTT and Innovations (4/5) Interactivity Analogical TV : passive role of the customer To change channel To change volume Digital TV: exchange of messages and bidirectional communication Decoder Broadcaster Feedback Customer A system is interactive when its behaviour is not fixed, but it changes, when the input of the user changes

9. Interactivity Two big groups of interactive services: 1) CONTENT-RELATED2) NON CONTENT-RELATED T-commerce Tv-banking Enhanced broadcasting Internet Quiz-test Polls Games T-government (interaction between the users and the Public Administrations) Polls Healthy (interaction between the users and the healthy structures) Education and training EPG - Electronic Programming Guide

10. DTT and Innovations (5/4) Pay-Television DTT IS FOR FREE + PAY - DTT the possibility to pay for having some special television programs or contents In Europe several pay-tv companies failed: Quiero-tv: Spain ITVdigital-ONDigital : UK Stream and Tele+: Italy Pay per view : the programs are transmitted at a specific time for all the potential audience VS Video On Demand : the contents are transmitted only to the customers who have paid for them

11. WHAT YOU NEED TO RECEIVE THE DIGITAL TERRESTRIAL SIGNAL 1. Decoder or Set-top-box Analogical signal or 3. Digital Television 2. Remote control Digital signal It is not necessary to replace our television, but just to buy:

12. Lots of regulations: Program interventions of the EU in the field of Telecommunication Standardization e-Europe plans : eEurope2000 and eEurope 2005 Telecom Package New rules in the audio-video industry Pluralism, public information, digital literacy

13. Interventions of the EU in the field of Telecommunication Switch off : the most important step for the future of the DTT  Start of transition to the DTT: 2008  The decisions about regulating and ways of the transition appertain to the government of each Member State  Final Switch-off : 2012 (to switch-off the analogical signal)

14. Diffusion of digital TV and DTT in the EU 2007 - 2008 : the half of European television houses had one access to the digital television 2005 : this number was equal to one third Today: 80 millions of houses with at least one digital decoder : increase of the 50% compared with the year 2005 DTT is the second digital platform in Europe, after the digital satellite platform DATA: ITMedia Consulting Report about digital television in EU – published on March 2008 - Third conference of DGTVi

15. Diffusion of digital TV and DTT in the EU Some European States have already made the switch-off: Luxemburg, Netherlands, Finland and Sweden have not anymore the analogical television. Penetration digital TV = 48% of the television houses WESTERN EUROPE 2007 : Satellite is the most popular digital television : 43% of digital reception DTT: the highest rhythm of increase IPTV (Internet Protocol Television): 3.5 millions of subscribers

16. Diffusion of digital TV and DTT in the EU The houses with only the analogical television are decreasing : 2005 : 110 millions 2006 : 98 millions 2007 : 86 millions Analysis of 5 States: UK – Germany – France – Italy - Spain They have different characteristics, but very similar trends.

17. Diffusion of digital television in UK The biggest market of digital television : 84% of British families = twice over of the other Stases (Germany, France, Italy, Spain) DTT has surpassed the digital satellite: DTT : 12 millions of families; a regular growth rate - equal to 20% per year 2007: there were less than 4 millions of analogical houses to convert 17 October 2007 Switch-off started in Cumbria

18. Diffusion of digital television in France 41% of French families has the digital television, a little bit less than 10 millions of houses The DTT was launched on March 2005 today DTT has already surpassed the satellite: the 19.5% of dtt houses against the 18.9% of satellite-houses 9.4 millions of French families to convert to the digital technology, but with the actual growth rhythm it is possible that at the end of the year 2008 the penetration of the digital television will be equal to the 60%

19. Diffusion of digital television in Germany Delay in the process of transition because of the big presence of analogical cable TODAY: 20% of the houses continues to use the analogical technology to watch TV the analogical cable allows a very big offer of free channels very similar to the offer of the digital terrestrial (30-40 channels). the incentive to make transition from analogical cable to digital cable is very less strong than the incentive to make transition from analogical terrestrial television to digital terrestrial television

20. Diffusion of digital television in Spain Spain is making up for lost time in the process of digitalization thanks to the DTT Penetration of digital TV: 2006 : 20% June 2007: 40% At the end of 2007: 50% DTT is the most prevalent digital platform Spain is the second European market for the diffusion of IPTV Spanish houses

21. Diffusion of digital television in Italy Penetration June 2007 : 45% of the total Satellite : 5.8 millions of families and 4.2 millions are subscribers of pay-services IPTV : 2 most important operators: Fastweb + Alice = 250.000 subscribers

22. Diffusion of DTT in UK 1/3 of the television houses – 9.1 millions of families – has one access to the DTT From the year 2002, 20.6 millions of receivers for the DTT have been sold DTT represents the driver of the increase of the access to the digital technology The number of the televisions that use the DTT is twice over of the number of the analogical terrestrial televisions

23. Diffusion of DTT in France June 2007: 4.7 millions of houses were endowed with at least one receiver for the DTT 400.000 houses are subscribers of some pay-bouquets of DTT = 1.6% of French television houses From the launch of DTT - March 2005 – 8.2 millions of televisions to receive the DTT has been sold

24. Diffusion of DTT in Germany The DTT is marginal Germany adopted a Regional approach to make the switch-off The DTT allowed to increase the use of terrestrial television there are 600.000 analogical houses to convert “Ard” - public service operator - planned to complete the switch-off within the end of 2008

25. Diffusion of DTT in Spain Failure of Quiero-TV - pay-platform of DTT November 2005 : re-launch of DTT for free with a wide offer of 20 channels for free Penetration: 2005 : 4.4 % 2006: 14.4% 2007: 19.4% March 2003 – June 2007 : 5.8 millions of DTT devices sold

26. Diffusion of DTT in Italy Dtt is the second digital platform for diffusion, after the digital satellite platform February 2004 - June 2007 : 5.6 millions of Dtt devices sold The 41% of the sold decoders enjoyed the incentives pay in force as of 2004 until 2005 and only for the Regions called “all-digital” (Sardinia and Valle d’Aosta which were the first Italian Regions to start the switch-off) until 2006 From February 2009, all the sold televisions will have to hold a digital tuner

27. Conclusions (1/2) Western Europe : almost the 40% of the television houses is digital Satellite is still the most diffused tool to receive the digital television The DTT is the second platform for diffusion, but it has a growth rate very superior compared with the satellite one 5 big Nations analysed: some peculiarities, but very similar trends

28. From today until the year of the European switch-off (2012) the increase of the use of the digital technology will be mainly represented by the DTT The cable and the satellite will increase as well, but with less important growth rate Big obstacle for pay-tv : low proneness to spend lots of money for television contents 2012 : the DTT will be the most diffused modality of television signal reception in European Member States Conclusions (2/2)

29. THANK YOU FOR YOUR ATTENTION PLEASE MAIL US: Prof. Marco Guidi: mel.guidi@ec.unipi.it Valeria : valeria.puddu@gmail.com