Research Report Analogue switch-off: the implications of ITU recommendations for policy makers and regulators February 2013 Morgan Mullooly
2 Contents Slide no. 5. Executive summary 6. In May 2010, the ITU published guidelines designed to help countries transition from analogue to digital terrestrial TV broadcasting 7. The ITU guidelines should be particularly useful for regulators in emerging markets in ITU Region 1 that have not completed analogue switch-off 8. The framework for digital switchover is defined by five layers of guidelines by the ITU 9. Policy and regulation (Part A) of the guidelines covers several major thematic areas 10. Recommendations 11. We have identified several recommendations for regulators that are implementing the ASO process 12. ASO planning 13. Several factors will force regulatory authorities to act on ASO 14. Early planning for ASO can help avoid complications and lays the groundwork for a successful digital transition 15. The ITU does not give clear guidelines as to where the most favourable areas are for beginning the ASO process 16. The ITU guidelines are singularly focused on DTT and largely neglect the role that satellite may play in ASO 17. Transition models 18. A set of interdependent factors will determine the ease of digital transition, and the approach chosen for the ASO process Slide no. 19. At the most fundamental level, the digital transition process has three stages 20. A simulcast period often takes place during which the DTT and analogue television networks operate in parallel, but this is optional 21. The two basic models of digital transition are ASO with a simulcast period and ASO without 22. The overnight switchover approach is not often employed because the risks are perceived to be greater if something goes wrong after ASO 23. The third stage in the process involves setting a date by which all current analogue terrestrial broadcasters will be migrated to a digital platform 24. Regulators can choose an ASO that takes place on a region-by-region basis or on a national basis 25. Licensing 26. Licensing of DTT services is typically organised at two levels broadcast stream and multiplex 27. Several procedures can be used to assign multiplex and broadcast licences 28. The ITU guidelines advise that a public tender is the preferred assignment procedure 29. Assigning frequencies by MUX is the method of licensing most commonly used worldwide 30. but the approach to DTT licensing is influenced by the broadcast market structure that exists in each country
3 Contents Slide no. 31. and DTT licensing can be more complicated in non-vertically integrated markets 32. Cost considerations and public financing 33. Financing the digital transition can pose a major challenge 34. Implementation of different encryption schemes by MUXs can increase the price of DTT receivers 35. DTT take-up may be affected if people are not be able to afford digital receivers (STBs) 36. Caution should be exercised in relying on market players to subsidise the cost of STBs 37. Technical aspects of the digital transition 38. Of the several transmission standards for DTT, the ITU guidelines recommend adopting the DVB-T standard 39. but since the ITU guidelines have been published, the DVB-T2 standard has become mainstream and is widely supported by the industry 40. Regulators must also address the important technical issue of LTE systems co-existing with DTT 41. Regulators can insist on a number of mitigating measures that can be applied to reduce the risk of interference occurring Slide no. 42. Further issues for developing countries to consider 43. Emerging markets may be delaying digital transition because of a lack of available funding and/or political will for ASO 44. Formulating an ASO communication plan will require particular attention in emerging markets 45. Particular attention must be given to the important role that broadcast liberalisation can have in promoting ASO in emerging markets 46. The introduction of DTT may prompt a regulatory organisational overhaul in segmented regulatory environments, typical in emerging markets 47. About the author and Analysys Mason 48. About the author 49. About Analysys Mason 50. Research from Analysys Mason 51. Consulting from Analysys Mason
4 List of figures Figure 1: Status of analogue switch-off, worldwide, November 2012 Figure 2: Major thematic areas covered in Part A of the ITU guidelines for ASO Figure 3: Drivers of ASO Figure 4: ITU-recommended initial actions for regulators in the digital transition process Figure 5: Factors influencing the transition to full ASO Figure 6: Stage 1 of the digital transition process Figure 7: Stage 2 of the digital transition process Figure 8: Decision tree for digital transition Figure 9: Process steps for simulcast and non-simulcast approaches to digital transition Figure 10: Stage 3 of the digital transition process Figure 11: Phased and nationwide ASO approaches Figure 12: Broadcast rights can be assigned per broadcast stream and per multiplex Figure 21: Ways to communicate ASO information Figure 22: Segmented and centralised approaches for regulating the communications industry Figure 13: Alternative approaches to broadcasting licence awards Figure 14: Approaches to broadcasting licence awards in selected countries Figure 15: Differences in broadcasting market structures Figure 16: Potential cost considerations for public service broadcasters Figure 17: Alternative approaches to providing public financing to help households purchase STBs in selected countries Figure 18: Countries where digital TV transmission standards have been adopted or deployed, worldwide, October 2012 Figure 19: Milestones of the DVB-Standard, 1997 2009 Figure 20: Prices paid for mobile spectrum adjacent to DTT (in the 800MHz band) in Spain
5 Executive summary Recommendations ASO planning Transition models Licensing Cost considerations and public financing Technical aspects of the digital transition Further issues for developing countries to consider About the author and Analysys Mason
20 A simulcast period often takes place during which the DTT and analogue television networks operate in parallel, but this is optional Figure 7: Stage 2 of the digital transition process [Source: Analysys Mason, 2013] Introduction of DTT services Simulcast period Analogue switch-off At this stage: regulators are actively informing viewers in the affected region about the ultimate ASO date information (for example, for affected viewers to check what type of receiver or aerial is required) and ASO websites are tested and operational contact centres to help viewers transition to DTT will have been tested and will be operational broadcasters will include ASO information in their programming and actively promote digital switchover. Some countries may not need to implement this step.
21 The two basic models of digital transition are ASO with a simulcast period and ASO without Figure 8: Decision tree for digital transition [Source: Analysys Mason, 2013] Phased DTT roll out C Geographically phased ASO When available spectrum is limited and frequencies have to be re-used. A ASO with simulcast When there is a relatively high proportion of analogue terrestrial TV viewers compared to other platforms, and the risks of failure are assessed as high. 2 When there are not enough resources to manage the ASO in one go. D National ASO 3 National DTT roll out 1 B ASO without simulcast (overnight switchover)
47 Executive summary Recommendations ASO planning Transition models Licensing Cost considerations and public financing Technical aspects of the digital transition Further issues for developing countries to consider About the author and Analysys Mason
48 About the author Morgan Mullooly (Analyst) contributes research for the Spectrum and Wireless Networks research programmes. His primary areas of specialisation include spectrum valuation, LTE strategies and white space technologies. Morgan has a Master s degree in Philosophy and Public Policy from the London School of Economics.
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