elmar zilles head broadcasting, federal network agency, germany transition to digital terrestrial...

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DIGITAL DIVIDEND WITH A SPECIAL REGARD TO THE SITUATION IN GERMANY Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION AND DIGITAL DIVIDEND Warsaw (Republic of Poland), 7 – 9 May 2012

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Page 1: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

DIGITAL DIVIDEND

WITH A SPECIAL REGARD TO THE SITUATION IN GERMANY

Elmar Zilles

Head Broadcasting, Federal Network Agency, Germany

TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION AND DIGITAL DIVIDENDWarsaw (Republic of Poland), 7 – 9 May 2012

Page 2: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

2

Overview

Digital Dividend – what‘s that ? „Facts“ Transforming the Digital Dividend into

consumer benefits Approach and activities in Germany The auction Fields tackled after the auction

Page 3: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

3

Digital Dividend – what’s that ?

Practical approach:

The Digital Dividend is understood as the additional spectrum, which will become available as a consequence of the digitalisation and proper establishment of existing analogue services, based on new, efficient transmission and coding technologies Origin

The Digital Dividend results from a development on the technological, not on the political level! “Amount” in the UHF band (470–862

MHz): following the practical approach about 20 %

Page 4: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

4

Overview

Digital Dividend – what‘s that ? „Facts“ Transforming the Digital Dividend into

consumer benefits Approach and activities in Germany The auction Fields tackled after the auction

Page 5: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

< 10% Belgium, Germany (circa 5%), The Netherlands, Austria, Switzerland25-50% Denmark, Finland, Ireland, Norway, Poland, Hungary, Sweden> 60% France, Greece, Italy, Spain, Czech Republik, UK

5

“Facts” (1)

Different relevance of terrestrial provision of broadcasting in different countries

Mentionable differences in terms of the primary terrestrial service (i. e. the provision for the main TV set in a household)

Consequence

Differences in terms of quality and of quantity of the Digital Dividend have to be considered

Page 6: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

Market development in the German country case

In 2006 it was the first time that more flat screen were sold than devices with cathode-ray tube

At the end of 2010 more than 29 million high resolution TV sets were in the German households (16.5 million with integrated HDTV tuner)

(Near) future fixed reception situation: more than 90 % of TV sets capable of “Full HD” need 8 to 20 Mbit/s programme streams

About 30 programmes needed to satisfy recipients to a 95 % extent, via terrestrial reception very difficult even with DVB-T2 and H.264/AVC

Different conclusion for portable and/or mobile reception with smaller displays

Different feeds for different application situations?

6

“Facts” (2)

Page 7: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

7

Overview

Digital Dividend – what‘s that ? „Facts“ Transforming the Digital Dividend into

consumer benefits Approach and activities in Germany The auction Fields tackled after the auction

Page 8: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

8

Transforming the Digital Dividend into consumers

benefits (1)

More broadcasting Added value within broadcasting better broadcasting

Additional services other than broadcasting better life

Page 9: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

9

Transforming the Digital Dividend into consumers benefits (2)

More broadcasting 3 nationwide networks DVB-T (public

broadcasters) up to 4 additional networks region-

wise/cities (private broadcasters)

12 to 30 programmes instead of 3 to 7 Added value within broadcasting

possibly introduction of DVB-T2 including plans for HDTV for some programmes

Page 10: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

Transforming the Digital Dividend into consumers benefits (3)

10

Provision was made in the economic stimulus package II

Federal government’s broadcasting strategy: 800 MHz band to be used promptly to provide sparsely populated areas with innovative mobile applications and broadband internet access [approx. 2.5 million households in Germany have no internet access with a minimum of 1 Mbit/s]

Original idea

No later than the end of 2010 efficient broadcasting connections should be available throughout Germany

No later than 2014 75% of the households, until 2018 for all households connections with at least 50 Mbit/s should be available

Answers to current available dynamic demands due to improved offers High speed radiocommunication high power networks; in addition further

construction/expansion of wired high power networks as well as in seemingly non lucrative areas

Goal achieved with “mixed resources”

(broadband atlas , http://www.zukunft-breitband.de)

Page 11: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

11

Overview

Digital Dividend – what‘s that ? „Facts“ Transforming the Digital Dividend into

consumer benefits Approach and activities in Germany The auction Fields tackled after the auction

Page 12: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

12

Approach and activities in Germany

Objectives Efficient usage Guarantee for the development of

broadcasting, though win-win-situation

Quickest possible expansion of the broadband supply in rural areas (IMT)

No special path, but agreed approach in Europe under consideration of the different initial situations of the individual countries

way

Page 13: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

13

Approach and activities in Germany (2)

Conclusion for the regulation

Technology neutrality Flexibility

Regulation should and may business planning of the market participants not prejudice and narrow down

Planning certainty Regulatory framework should not exclude, rather

encourage incentives and secure investments

Consideration of the different long term initial scenarios in various European countries In the short and medium time frame the different

infrastructure conditions in the various countries have to be considered and developed in order to satisfy the existing and developing requirements of the users

Page 14: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

14

Approach and activities in Germany (3)

Overall concept for a more flexible use of spectrum

Liberalisation of existing licenses at 450 MHz (wideband trunked radio [PAMR], 900/1800 MHz (GSM), 2 GHz (IMT/UMTS) and 3.5 GHz (BWA) as quickly as possible

Award of 358.8 MHz spectrum (decision published 21/10/2009) combining award at 1.8/2/2.6 GHz with award at 800

MHz spectrum auction technology and service neutrality for Electronic

Communications Services (ECS; can be used for mobile, fixed or nomadic systems or applications)

spectrum cap in the band 800 MHz (2 x 20 MHz, paired)

Applications for qualification to take part in the auction were to be submitted until 21/01/2010

Detailed information on all steps may be requested !!

Page 15: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

15

Approach and activities in Germany (4)

Additional Coverage Obligations 4 priority classes General requirement for each

assignee to meet the obligation with 800 MHz spectrum

Other technologies are credited Degree of coverage:

90 % of the population by 2016

P 4> 50k

P 320k – 50k

P 25k – 20k

Priority 1Inhabitants < 5k

90% P1 coverage

90% P2

90% P3

Page 16: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

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Approach and activities in Germany (5)

Spectrum cap of 2 x 20 MHz (paired) for the 800 MHz band, account to be taken of the spectrum assigned in the 900 MHz band

Possibility for each bidder to acquire more than 2 x 5 MHz

This means for 800 MHz: newcomers: max. 2 x 20 MHz E-Plus / O2: max. 2 x 15 MHz Vodafone / Telekom: max. 2 x 10

MHz

Page 17: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

17

Overview

Digital Dividend – what‘s that ? „Facts“ Transforming the Digital Dividend into

consumer benefits Approach and activities in Germany The auction Fields tackled after the auction

Page 18: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

0 20 40 60 80 100 120 140 160 180 200

2.6 GHz / 190 MHz

2.0 GHz / 59 MHz

18

The auction

Start date: 12 April 2010 Duration: 224 auction rounds End of auction: 20 May 2010 Amount of minimum bids for total spectrum at the

beginning: 90 million €

Digital Dividend

1.8 GHz / 50 MHz

MHz

Page 19: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

19

The auction (2)

Page 20: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

Telekom

Vodafone

E-Plus

Telefonica O2

20

The auction (3)

Outcome

283,645,000 €

1,299,893,000 €

1,422,503,000 €

1,378,605,000 €

99.1 MHz

69.8 MHz

95 MHz

94.9 MHz

800 MHz 3,57 billion €(81.5% for 60 MHz)

Other bands0.81 billion €(18.5% for 298.8 MHz)

in total4.38 billion €358.8 MHz

Page 21: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

21

The auction (4)

Spectrum price per hertz

0,8 GHz paired

1.8 GHz (p)

2.0 GHz (p)

2.0 GHz 2.6 GHz (p)

2.6 GHz (up)

0

10

20

30

40

50

60€ / Hz

59,61

1,732,098,79

0,60 1,84

unpaired

Page 22: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

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The auction (5)

Spectrum held by the network operator after the auction

Telekom

Vodafone

E-Plus

TO2 Germany

0 20 40 60 80 100 120 140 160 180MHz

95,0 MHz

99,1 MHz(auctioned spectrum)

69,8 MHz

94,9 MHz

59,6 MHz

64,6 MHz(already assigned spectrum)

69,6 MHz

59,6 MHz

163,7 MHz

139,4 MHz

154,5 MHz

154,6 MHz

Page 23: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

23

Overview

Digital Dividend – what‘s that ? „Facts“ Transforming the Digital Dividend into

consumer benefits Approach and activities in Germany The auction Fields tackled after the auction

Page 24: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

24

Fields tackled after the auction (1)

Mainly: Allotment of the abstract

frequency blocks won Compatibility issues between

mobile and broadcasting services Compatibility issues between

mobile and PMSE Compatibility issues between

German use and use in adjacent countries

Page 25: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

25

Fields tackled after the auction (2)

Allotment of the abstract frequency blocks won

The abstract frequency blocks won were to be allotted to their highest bidders at the end of the auction with a view to assigning contiguous spectrum

The successful bidders had the opportunity to agree amongst themselves, within a period of three month of the close of the auction, the spectral position of their blocks in the particular frequency band

If agreement between the successful bidders was not reached within this period, BNetzA would concentrate initially on the aspect of assigning contiguous spectrum and will allot the abstract blocks won in the bands at 800 MHz and 2.6 GHz

Done !!!

Page 26: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

26

Fields tackled after the auction (3)

Compatibility issues between mobile and broadcasting services

Roll-out mobile service has to protect broadcasting Three-level-approach

1. Definition of Block Edge Mask in advance (How to construct devices ?) 2. Definition of sets of technical characteristics of mobile service stations (after auction, but in advance of each single use of a station) 3. Corrective steps in case of unforeseen problems

Re-channeling of existing broadcasting usage on channels 64–66 (done!)

Refunding approved by German Federal Council Ongoing for 2. and 3.!!

Page 27: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

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Fields tackled after the auction (4)

Compatibility issues between mobile and PMSE

In principle, no legal basis for protection of PMSE, but huge political interest

Frequency allocation issues solved by new concept for PMSE

Compensation for necessary replacements of equipment approved by German Federal Council

Rules set

Page 28: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

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Fields tackled after the auction (5)

Compatibility issues between German use and use in adjacent countries

On the long run, harmonised approach preferred Short-term problems to be solved on a bilateral basis Common tackling of common issues !! Very good progress made (e. g. in WEDDIP and NEDDIF) Agreements exist with nearly all neighbouring

countries, allowing for the application of appropriate field strength values for bilateral co-ordination

Only few cases left for co-ordination mobile versus broadcasting or other service

Page 29: Elmar Zilles Head Broadcasting, Federal Network Agency, Germany TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION

THANK YOU VERY MUCH FOR YOUR ATTENTION!

DIGITAL DIVIDEND IN GERMANY

[email protected] Zilles

TRANSITION TO DIGITAL TERRESTRIAL TELEVISION BROADCASTING, BORDERLINE FREQUENCY COORDINATION AND DIGITAL DIVIDENDWarsaw (Republic of Poland), 7 – 9 May 2012