Download - 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.


• 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)


• 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


• 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


• 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


• 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.)


• 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 Play-out elements:

• Encoder

• Multiplexer

• OFDM Modulator

• EPG

• CA


• DTT distribution network:

• SFN

• MFN

• Network adapter


• 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


• 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)


• 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


• 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


• 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


• ANALOGUE TV PLAN (II LEVEL) RESULTS:

• AGCOM Delibera n 95/00/CONS• 126 regional area covered• 1502 provincial area covered


• 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


• 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)


• 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


• 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


• 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


• 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


• 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


• 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


• 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


• 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)


• 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


• 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)


• 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 started with:

• DTT networks operating

• Multicast of same programs available in terrestrial analogue

• Multicast (satellite) of other programs

• Some (still limited) new editorial programs


• 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)


• 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


• 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


• 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


• 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 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


• 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


• 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.


• 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


• 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


• 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


• 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


• 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


• “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


• Regolamento DTT:roles separation

• Content provider: Authorization regime

• Commitments concerning:

• Advertising

• Production quotas

• Protection of minors

• Political pluralism


• 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


• 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)


• 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

Download - Case Study: DTT (Digital Terrestrial Television)

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