Case Study: DTT (Digital Terrestrial Television)
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Transcript of Case Study: DTT (Digital Terrestrial Television)
Case Study:DTT (Digital
Terrestrial Television)
Warsaw, February 2004
Roberto de Martino
Autorità per le Comunicazioni
Index
• AGCOM Introduction
• Italian TV market overview
• DTT technical aspects
• Regulatory Framework
• Conclusions
AGCOM Introduction
Section 1.
AGCOM Introduction
• AGCOM (Autorità per le Garanzie nelle Comunicazioni) established by Law n. 249/1997
• Council assisted by two Commissions: networks and services
• Regulatory Authority for both Telecommunications and audiovisual
• “Convergent Authority”• Responsabilities also in press and publishing
sectors
AGCOM Introduction
• AGCOM activities and responsabilities: Interconnection Verification of dominant position (TLC, TV) Accounting separation Universal service Audiovisual frequency plan TV monitoring Numbering Plan Italian PNRF (official comments to Tlc Ministry)
AGCOM Introduction
AGCOM activities and responsabilities : Tarifs Mobile market competition Services quality TV-SAT Political pluralism Advertising, Audiovisual production quota Press
CONTENTS
TRANSPORT
BROADCAST
Regulatory interventions:
“Decoder unico”DISTRIBUTION
Respect of programmation quotas and of production contentPublicity quotas
Minor tutela, Information ecc., …
Licencers and authorizations, …
Antitrust rules etc…
Italian TV market overview
Section 2.
Italian TV market overview
• GENERAL INFORMATION: 11 national terrestrial channels +600 local TV, +1000 radio About +2,5 milions satellite pay-TV subscribers 1 satellite digital platform (SKY) Cable Tv: strong growth switch off (ATO) date: end 2006 Previous Tele+ frequencies have been sold to a
consortium (Ben Amar/TF1) to give birth to Sport Italia (Europa TV) and D-free (Prima TV)
Italian TV market overview
• RECEPTION PATTERNS:
– Households: more than 20 millions– Terrestrial Tv: 88/89% (50% EU average)– Satellite Tv: 10/11% (21% EU average)– Cable Tv: 1% (29% EU average)– Terrestrial analogue TV still
dominates the market
Italian TV market overview
• TV SERVICES:• Terrestrial FTA: Two major national
players (RAI, Mediaset), strong local character
• Satellite Pay-TV: One main Pay-Tv operator Sky
• Satellite FTA• Cable TV: optical fiber, and ADSL
Italian TV market overview Composizione percentuale dell'utenza televisiva per tipo di
offerta
0%
20%
40%
60%
80%
100%
1997 1998 1999 2000 2001
Anni
servizi televisivi via cavo
satellite digitale a pagamento
satellite analogico in chiaro
etere analogico a pagamento
etere analogico in chiaro
Italian TV market overview
• DIGITAL OFFER:• Total Digital TV penetration: 12/13% (EU
average 18%)• DTH: 12/13% (EU average 12%)• DTT: trials/experimentation (EU average 1-
2%)• Cable: 0.1/0.2 millions HH (EU average
4%)
Italian TV market overview: Alternative services to
analogue terrestrial TvUtenza di servizi televisivi alternativi alla diffusione analogica via
etere in chiaro
0
0,5
1
1,5
2
2,5
3
1997 1998 1999 2000 2001
anni
ute
nti
(m
ilio
ni)
servizi televisivi via cavo
satellite digitale a pagamento
satellite analogico in chiaro
etere analogico a pagamento
Italian TV market overview
• CONCLUSIONS ITALIAN TV MARKET MAIN CHARACTERISTICS:
• Analogue terrestrial TV still dominates the market• Presence of 2 strong national operators which own 3
TV channels each• Strong presence of local operators (more than 600)• Vertical model in the analogue terrestrial TV (the
operators manage the transmission capacity, own the frequencies, content production, advertising ecc.)
Italian TV market overview
• CONCLUSIONS ITALIAN TV MARKET MAIN CHARACTERISTICS:
• Satellite Pay-TV is the strongest alternative so far to conventional analogue terrestrial Tv
• Digital penetration is in the EU average• Still weak penetration of cable TV (even with quick
growth and ADSL coming soon)• New entries in the Italian broadcast market• DTT started (5 Mux, +20 programs)• DTT expected growth (switch-off set end 2006)
DTT Technical aspects
Section 3.
DTT Technical Aspects
• DTT BENEFITS:
• Better Picture/sound quality
• Increase capacity and efficiency of networks
• Reduce transmission costs
• Better spectrum efficiency
• Lower entry barrier, increased competition
DTT Technical Aspects
• DTT Play-out elements:
• Encoder
• Multiplexer
• OFDM Modulator
• EPG
• CA
DTT Technical Aspects
DTT Technical Aspects
DTT Technical Aspects
DTT Technical Aspects
• DTT distribution network:
• SFN
• MFN
• Network adapter
DTT Technical Aspects
• Analogue frequency TV Plan (Analogue PNAF):
• Issued in 1998 by AGCOM• AGCOM Delibera n 68/98• Two level plan approach:• First level plan- optimization of resources• Second level plan- once completed the first level
plan optimization (integration) of left resources
DTT Technical Aspects
• ANALOGUE TV PLAN REQUIREMENTS:• VHF frequency band (I and II) • UHF frequency band (IV and V)• 45 channel (frequency) available in UHF band for
planning• 6 channel (frequency) available in VHF band for
planning• Total: 51 channel (frequencies)
DTT Technical Aspects
• ANALOGUE TV PLAN REQUIREMENTS:• Quality objective: 4 on the ITU-R scale• One third of capacity to be reserved to local programming• Utilize European channelization in VHF band• Territorial coverage objective: 80% of the Italian territory
(with inclusion of all Italian capoluoghi di provincia)• Power > 200 W• Transmission infrastructure positioned on the same
position (site)• Total number od transmission sites: 480
DTT Technical Aspects
• ANALOGUE TV PLAN (I LEVEL) RESULTS:
• 3 channels (frequency) per TV network• National coverage with 17 TV channels• 6 TV channel reserved to local TV• 11 TV channel reserved to national TV• All requirements set satisfied
DTT Technical Aspects
• ANALOGUE TV PLAN (II LEVEL) REQUIREMENTS:
• II level TV plan total number of sites: 480• Constraint regarding maintenance of coverage
established in the I level TV plan• Power greater than 200 W• Regional coverage area• Provincial coverage area
DTT Technical Aspects
• ANALOGUE TV PLAN (II LEVEL) RESULTS:
• AGCOM Delibera n 95/00/CONS• 126 regional area covered• 1502 provincial area covered
DTT Technical Aspects
DTT Technical Aspects
• Digital frequency TV Plan:• Issued in 2003 by AGCOM• AGCOM Delibera n 15/03/CONS• Two level plan approach:• First level plan- optimization of resources• Second level plan- once completed the first
level plan optimization (integration) of left resources
DTT Technical Aspects
• DIGITAL TV PLAN REQUIREMENTS:• VHF frequency band (I and II) 52,5 – 68 MHz and
174-223 MHz• UHF frequency band (IV and V) 470 – 854 MHz• 48 channel (frequency) available in UHF band for
planning• 6 channel (frequency) available in VHF band for
planning• Total: 54 channel (frequencies)
DTT Technical Aspects
• DIGITAL TV PLAN REQUIREMENTS:
• Quality objective: 95% service probability
• One third of capacity to be reserved to local programming
• Utilize European channelization in VHF band
• Territorial coverage objective: 80% of the Italian territory (with inclusion of all Italian capoluoghi di provincia)
• Transmission infrastructure positioned on the same position (site)
• 260 planned sites
DTT Technical Aspects
• DIGITAL TV PLAN (I LEVEL) RESULTS:• 3 channels (frequency) per TV network (multiplexer)• National coverage with 17 TV channels• 6 TV planned network (multiplexer) reserved to local
TV• 12 TV planned networks (multiplexer) reserved to
national TV• 64 QAM better exploits available resources• All requirements set satisfied
DTT Technical Aspects
• DIGITAL TV PLAN (II LEVEL) REQUIREMENTS:
• II level TV plan total number of sites: 260• Constraint regarding maintenance of coverage
established in the I level TV plan• 16 QAM (more robust)• Power greater than 200 W• Regional coverage area• Provincial coverage area
DTT Technical Aspects
• DIGITAL TV PLAN (II LEVEL) RESULTS:• AGCOM Delibera n 399/03/CONS• 126 regional networks served• 1272 provincial networks served• Toal number of served networks: 1398
DTT Technical Aspects
• Example: Spectrum Benefit• Comparison between terrestrial analogue TV and
DTT planning based on the analogue TV plan (PNAF) and digital TV plan both developed by AGCOM
• Plan resources: 51 (54 in the digital case) TV channels
6 TV freq. channels VHF-III band 45 (48 frequencies in the digital case) TV freq.
channels UHF-V band
DTT Technical Aspects
• Planning Exercise Results:National TV Program
Regional TV Programs
Total Tv Programs (National and Regional)
Analogue
11 126 137
DTT 48/60 (12x4/5)
378/504 (126x3/4)
426/564
DTT Technical Aspects
• Planning results:
• DTT multiplies the resources (program number) by a factor of 4/5 in the case of national programs
• DTT multiplies the resources (program number) by a factor of 3/4 in the case of local programs
DTT Technical Aspects
• Decoder definitions:• Zapper: only conversion between TV analogue
format and digital TV format• Interactive decoder: enhances zapper because it
allows the user also to utilize interactive applications• iDTV: it combines in the TV set the decoder
functionalities• CA: for pay-TV applications• API: tied to interactivity (operating system analogy
for PC)
DTT Technical Aspects
• Decoder market:
• + 40 Million TV sets
• + 20 million Households
• Zapper price: about 150 Euro (25% marin)
• Interactive decoders price: about 300 Euro (25% margin)
DTT Technical aspects
• Application Program Interface (API):
• MHP platform has been chosen by the biggest broadcast operators
• MHP Applications in terms of enhanced TV
• MHP applications tied to interactivity for regional/local/government services
DTT Technical Aspects
• Interactivity:• Program-tied interactivity to enhance program
content• T-learning• T-government in collaboration with local entity,
University, Tegion and Public Administration• Application: On-line bet market• Return channel: wireless or cabled• SIM card (to identify user requesting a certain
service)
DTT Technical Aspects
• Major broadcasters have invested in DTT
• Investments cover head-end and regional hubs, distribution network and transmission network
• As a rule of thumb: 45% transmission network, 35% distribution network, 15/20% play-out (head-end)
DTT Technical Aspects
• DTT started with:
• DTT networks operating
• Multicast of same programs available in terrestrial analogue
• Multicast (satellite) of other programs
• Some (still limited) new editorial programs
DTT Technical Aspects
• Rai DTT Experimentation phase status (N.B. press information source):
• DTT network in operation• 2 multiplexer• RAI 1, RAI 2 and RAI 3• Some satellite RAI program (News, sport,
Edu)• Some new program (Rai Utile, Rai Doc)
DTT Technical Aspects
• RTI Experimentation phase status (N.B. press information source):
• DTT network in operation• 1 multiplexer• Rete Quattro (analogue TV channel)• Some programms also available via sat (BBC
World, 24 Ore TV, Coming Soon, ecc.)• Some local TV program
DTT Technical Aspects
• Other Broadcaster activity (N.B. press information source):
• Some other broadcaster starting DTT experimentation:
• Telecom Italia Media which is the holding of La 7TV, MTV Italia
• 1 multiplexer• La 7 TV, MTV Italia programs in the DTT
bouquet
DTT Technical Aspects
• Other Broadcaster activity (N.B. press information source):
• Prima TV: Ben Hammar/TF1
• 1 DTT multiplexer
• bouquet includes: Canale 5, Italia 1, SportItalia, La Chaine Info and a child program
DTT Technical Aspects
• Some other DTT activity:• Government subsidies (Finanziaria 2004 Law)• Government decoder contribution • 150 Euro per decoder with interactive features• Total: 110 Meuro (available in the Finanziaria 2004
Law)• User involvment in the experimentation (user
monitoring to gather data and information about user preferences)
• Family panel to verify user taste and preferences
DTT Technical Aspects
• DTT information campaigns:• TV ADS, SPOTS• Press Conference• Press campaigns• DGTVi association (in collaboration FUB,
RAI, Mediaset and La7 TV) to promote DTTV penetration in the Italian maket
• UK experience
DTT Technical Aspects
• CONCLUSIONS:• Benefits pertinent to Italian market:• Spectrum: a more efficient utilization of the
spectrum to reduce the frequency “overcrowd”• New entry: minor entry barriers to push the
national TV market which is now concentrated around two main actors
• Digital culture: with a fast introduction of STB to favor interactivity applications and Internet among users
DTT Technical Aspects
• CONCLUSIONS (based on press information source): :
• Experimentation phase• DTT networks (5 multiplexer)• Both national and local broadcaster partecipation• New programms online (terrestrial)• Some DTT incentive campaign: TV ads,
government incentives
Regulatory Framework
Section 4.
Regulatory Framework
• Four main steps have been completed:• Libro Bianco on the introduction of DTT
by AGCOM issued in 2000• Law n. 66/2001 • Delibera n. 435/01 which contains the text
of the Regulatory document for the DTT start-up (until 2004)
• Adoption of digital PNAF by AGCOM
Regulatory Framework
• Libro Bianco (White Book) on DTT• Propose ATO dates between 2006 and 2010• Suggests two alternative transition phase; one
based on the analogue PNAF (2010) and the second based on a spontaneous market evolution (fast switch-off 2006)
• DTT frequency utilization following the analogue PNAF
• Based on “island-by-island” switch-off
Regulatory Framework
• Libro Bianco (White Book) on DTT:• Suggests the incentives (e.g. STB subsidies) to
favour and accelerate the transition phase for all the market actors (operators, final users and industry)
• Suggests the not necessarity of simulcast (in the first phase of transition) but recommends a transition in which a wider and diversified content program offer is available to DTT users
Regulatory Framework
• Law 20 marzo 200, n. 66:• Target date for terrestrial ATO: 31/12/2006• Demand to AGCOM to define a specific regulatory
framework (regolamento digitale) to set the rules for licences and authorization (by mid-2001)
• Release of the DTT licenses and authorizations by Ministry of Telecommunications
• Adoption by AGCOM of the digital PNAF by end 2002
• Defines the principles for the regolamento digitale
Regulatory Framework
• Law 20 marzo 200, n. 66:• Separation of the content provision from the network
provision• Provision of rules which favour the infrastructure
sharing between operators• Definition of the license and authorization
obbligations• Prevision of the analogue-to-digital transition phase
towards ATO• Suggest obbligations for FTA broadcasting
Regulatory Framework
• “Regolamento DTT” main points:• Separation between network operator, content provider
and service provider• Distingueshes the obligations, restrictions beteween the
content and service provider which in the analogue world were assigned to the only existing “concessionario”
• Network provider Licencse; Service and Content Provider: Authorization
• Defines the rules set for the “start-up” DTT phase which will last until 2004
Regulatory Framework
• Regolamento DTT:roles separation
• Content provider: Authorization regime
• Commitments concerning:
• Advertising
• Production quotas
• Protection of minors
• Political pluralism
Regulatory Framework
• Regolamento DTT:roles separation• Network operator: license regime• Specific rules concerning:• Neutrality with respect to content providers• Siting and RF characteristics• Infrastructure sharing• Accounting separation for holders of license and
authorization
Regulatory Framework
• Start-up phase:• Will last until 2004• During this phase the existing TV operators (and
consortia) can request the title (abilitazione: temporary license) to operate DTT experimentation
• The operators which request the “abilitazione” and the ones which hold more than one concessione can keep their frequencies but shall reserve to third-party entities at least 40% of their trasmission capacity (Mux capacity)
Regulatory Framework
• At the end of the start-up phase (2004) AGCOM will issue a second DTT Regolamento by the end of the transition phase (2004);
• after the issue of this second DTT Regolamento the “abilitazioni” can be converted in full licenses if the operators comply with the obligations
• Main contents:• Access guarantee rules to content providers• Rules regarding Pay-TV• Criteria for the assignation of further licenses • Rules regarding accounting separation
Conclusions
Section 4.
Conclusions (1) – DTT Benefits
• Main advantages for the Italian TV market from migration to DTT:
• Spectrum: a more efficient utilization of the spectrum to reduce the Italian frequency “overcrowd”problem
• New entry: minor entry barriers to push the national TV market which is now concentrated around two main actors
• Introduce Horizontal model in the chain value• Digital culture
Conclusions – ATO strategy (2)
• Phased approach to reach the switch-off:
• DTT White Book (2000)
• Law 66 (2001)
• DTT Regolamento (2001)
• Digital PNAF (end 2002)
• Final DTT Regolamento (2004)
Conclusions (3) – ATO Strategy
• Start-up Phase (Until 2004):• Content provider market entry requesting
Authorization title• Actual TV operators can partecipate to the process
requesting an “abilitazione” title to start to operate DTT
• Holders of more than one concessione can keep their frequencies but shall reserve to third-party entities at least 40% of their trasmission capacity
• Issue of the digital TV PNAF
Conclusions (4) – ATO Strategy
• From 2004 to end 2006 final migration phase regulated by the second DTT Regolamento:
• Access guarantee rules to content providers• Rules regarding Pay-TV• Measures regarding accounting separation of subjects
owning licenses and authorizations• Conversion of the “abilitazione” to license if obligations
maintaned during the start-up phase• Criteria for the release of further licenses because of
Concessioni expiration (end 2006), excess frequencies available