Spectrum Management in the field of Broadcasting

1
Spectrum Management in the field of Broadcasting

• Final Report Workshop
• Brussels, 30th June 2004

John Burns, Aegis Florence LeBorgne, IDATE
Phillipa Marks, Indepen Richard Rudd, Aegis
2
Terms of Reference

• General Overview of broadcasting and radio
  spectrum management in Europe
• Spectrum implications of digitalisation and
  convergence
• New approaches for better spectrum management
• Possibilities for co-ordinated EU Action

3
Agenda for the day

• Current Situation
• Broadcasting and Spectrum Management in Europe
• Market and Technology Trends
• Policy Approaches
• Policy objectives
• Administrative approaches
• Market-based approaches
• Our Recommendations
• Facilitating Switchover
• Maximising Opportunities
• Open Forum / Discussion

4
The Current Situation
Spectrum Management in the field of Broadcasting

• Digital progress to date
• The Digital Spectrum Dividend and what to do
  with it
• Flexibility, Convergence and Refarming

5
European TV Broadcast Spectrum
Bands IV/V (UHF)
Band III (VHF)
174 230
470
Frequency (MHz)
862
448 MHz in total Focus on UHF bands
Current 2G and 3G Mobile Allocations (for
comparison)
GSM900
GSM1800
UMTS (3G)
UMTS Expansion
880 960 1710
1880 1980 2110 2170
2520 2670
365 MHz currently available
6
Not all broadcast spectrum is currently used by
broadcasters
7
Digital Progress the story so far
source IDATE
8
Digital Progress the story so far
source IDATE
9
Planned Switchover Dates

• 2006 Finland, Italy
• 2007 Belgium, Denmark, Portugal
• 2008 Sweden
• 2010 France, Germany, UK
• 2012 Austria, Spain

10
Digital TV uses less spectrum per channel
Analogue

• hence the concept
• of a spectrum
• dividend

Frequencies per national service (typical)
11
The Digital Spectrum Dividend

• We estimate Digitalisation reduces spectrum
  required for todays TV services by around 50
  70
• But, any spectrum dividend depends on factors
  such as
• The number of TV channels
• Picture definition and quality
• Coding technology
• Coverage and reception mode

12
Multi-platform delivery may enhance the dividend
in some cases

• Satellite and Cable reception now common-place in
  many Member States
• Analogue coverage obligations based on original
  terrestrial-only scenario
• Universal coverage implies more spectrum
• But is universal terrestrial coverage appropriate
  in a multi-platform world?

13
Who could use the spectrum dividend?-and how?

• Broadcasters
• More channels, new services
• Outside Broadcasts, Programme Making etc
• Mobile Operators
• voice, data, video, one-way, two-way?
• Who else?
• Fixed wireless access (Internet SPs etc)
• Emergency services
• ???

14
...and who should decide?

• Broadcasters?
• It is broadcast spectrum so should they decide
  its future?
• Regulators?
• Generally responsible for spectrum allocation and
  assignment decisions in Member States
• The Market?
• market based assignment and allocation methods
  increasingly being used around the world

15
Market and Technology Evolution
Spectrum Management in the field of Broadcasting
Flexibility, Convergence and Refarming
16
Digitalisation creates opportunities but also
adds to uncertainty

• How will television evolve?
• How will digital technology evolve?
• How will the wider electronic communications
  market evolve?

17
TV Evolution
High Definition
More channels
Mobility
Existing TV services
Video on demand
Interactivity
Local Services
18
Digital Evolution
BROADCASTING
TELECOMMS
MMBS
DVB-T
GSM
T-DAB
UMTS
DVB-H
DVB-S
S-DAB
GPRS
DVB-C
IP
DSL
Coding Compression
Storage Media
Processor Speeds
INFORMATION TECHNOLOGY
19
Market Evolution (1)

• Broadcast and Telecommunications were once
  distinct, vertical markets

20
Market Evolution (2)

• Digitalisation and convergence open up new,
  horizontal markets, with multiple delivery
  platforms for audiovisual content

21
Implications for Spectrum

• Demand is growing for mobile content
• 23 per cent of UK mobile users are definitely
  interested in owning a videophone J D Power
• by 2008, 250 million consumers will be using
  some form of mobile video ARC Group
• Much of this will be streamed or multicast
  material
• Ideally suited to a digital broadcast platform

22
Delivering Mobile Content

• 3G mobile and DTT largely complementary
• optimum delivery platform depends on size of
  audience
• one to one (3G) or one to many (DTT)
• Mobile TV reception differs from Fixed
• small screens need much smaller bit rates
• but much greater resilience is required
• Providing good mobile reception of DVB-T needs a
  lot more spectrum maybe as much as todays
  analogue TV
• Is mobile reception best served by a fixed
  broadcast platform or does convergence provide a
  better solution?

23
The DVB-H Standard

• Based on DVB-T but optimised for mobility
• low power consumption seamless handover
• Standard approved by ETSI / DVB Group
• Commercial DVB-H networks and services scheduled
  for 2005
• Can be delivered over DVB-T multiplexes but works
  best in dedicated networks

24
Convergent wireless technologies require access
to spectrum

• Without spectrum, convergence opportunities such
  as DVB-H may be foregone
• How can spectrum be made available to support
  such developments?
• The Digital Dividend provides one solution
• International initiatives to make spectrum
  management more flexible (e.g. ITU TWIMS) could
  also play a role

25
Can the current regime deliver?

• Some flexibility already exists within current
  ITU service definitions and the spectrum planning
  process
• ITU RR definition of broadcasting is wide in
  scope
• Allotment planning and spectrum mask concept
  (as agreed at RRC04) can accommodate many
  different services
• DTT technology can support convergent services
• Flexibility could be further helped by reviewing
  primary spectrum allocations
• Spectrum Refarming could either help or hinder,
  depending on how it is done

26
Spectrum Refarming Pros and Cons

• Re-farming refers to change of use
• e.g. allow mobile transmissions in b/cast bands
• In principle, can support flexibility and
  facilitate convergence
• But, approach to re-farming should ensure
  existing flexibility is not compromised

27
Two approaches to re-farming

• Use broadcast spectrum and technology to deliver
  multimedia content to mobile devices
• use existing planning approach and let market
  decide how spectrum dividend is used over time in
  each country
• Reflects growing demand for mobile multimedia
  content
• Use existing return path spectrum in other
  bands
• Use existing broadcast spectrum to deliver
  conventional mobile services
• main benefit of UHF frequencies is improved rural
  coverage
• but this needs exclusive mobile spectrum to
  ensure reliable return path
• could reduce flexibility overall so need to be
  confident of market demand before taking this step

28
How interference constrains sharing

• High power TV transmissions interfere with
  reception of low power mobile signals
• Base stations may interfere with TV reception
• Made worse by short term signal enhancements
  even distant transmitters become a problem

1 MW
1 W
100 km
29
A comment on the FCCs Approach

• FCC has proposed use of spare broadcast
  spectrum to support broadband wireless growth
• Strictly non-interference, non-protected basis
  (licence-exempt)
• Relies on smart radios to avoid interference
• Already feasible under ITU Regulations
• Note limitations of US Broadcast standard
  (especially mobility) and less intensive use of
  UHF bands compared with Europe

30
Spectrum management policies in the context of
switchover
Spectrum Management in the field of Broadcasting
31
Policy questions to be addressed

• How should the timing of switchover be
  determined?
• How should the future use of spectrum be decided?
• How should the spectrum be assigned?

32
Policy objectives

• Optimal spectrum use what does this mean?
• Economic, safety, health, social, public
  interest, freedom of expression, cultural,
  scientific and technical aspects
• Key broadcasting objectives affecting spectrum
  use are universality of core services and
  diversity (e.g. regional, content and linguistic
  diversity)
• Policy priorities will differ by country and
  these need to be accommodated
• But there are wider European considerations

33
Administrative policy approaches
34
Developing a cost-benefit framework

• The main challenge is valuing the additional TV
  and/or other new services
• Consumer experience or understanding of future
  services limited
• Individual versus societal values
• Whose views should count?
• Survey techniques aimed at gathering information
  on consumers willingness to pay have been used
  for TV, mobile and new converged services
• Provides an evidence-based way forward

35
Administrative incentive pricing

• Seeking to set a market price to give
  incentives for efficient spectrum use
• Efficient spectrum use is promoted if all users
  pay
• Address general interest objectives through other
  mechanisms
• UK estimates 1.5-2m/MHz

36
Market based approaches
37
Use of market approaches

• Offers incentives for efficient spectrum use and
  could speed up switchover
• Assumes general interest objectives met through
  reserved spectrum and other users have
  flexibility in spectrum use
• Could be implemented once interference
  environment agreed at RRC
• Could require national government intervention or
  industry co-ordination to ensure spectrum is
  released in useful blocks

38
Conclusions

• Beyond provision for existing General Interest
  services, the market should determine how the
  spectrum is used in the longer term
• Any approach to broadcast spectrum management
  should aim to maximise future flexibility of
  spectrum use

39
Conclusions

• Administrative approaches to determining the
  timing of switchover and the future allocation of
  the spectrum should involve cost-benefit
  analysis
• Market-based approaches to making switchover
  decisions offer flexibility and economic
  efficiency benefits, but may be assisted by some
  regulatory intervention

40
Our Recommendations
Spectrum Management in the field of Broadcasting

• Facilitating Switchover
• Maximising the Opportunities from Switchover and
  Convergence

41
1 Benchmarking

• Opportunity for NRAs to identify and adopt good
  practice based on others experience
• Annual benchmarking of progress towards
  switchover should be part of the e-Europe
  monitoring process
• Start by assessing Member States compliance with
  the e-Europe Action Plan

42
2 Cost Benefit Analyses

• Optimum timing of switchover depends on balance
  between costs and benefits
• These will vary between Member States, depending
  on local market conditions
• NRAs should undertake CBAs, informed by market
  research to establish user preferences and
  willingness to pay for various switchover and
  future use options

43
3 Promoting Consumer Awareness

• Consumers should be properly informed of digital
  benefits when purchasing TV equipment
• A universal labelling scheme could be helpful in
  this context
• Could model on similar, successful initiatives
  such as energy-efficiency labels

44
4 Spectrum Management

• Judicious application of new approaches, such as
  auctions, trading and administrative pricing
  could expedite switchover
• Financial incentives could also speed up
  transition process (within legal constraints)
• Spectrum Trading and Liberalisation (within
  interference management constraints) would
  support longer term flexibility in spectrum use

45
5 Access to transmission capacity

• Spectrum release may not be possible
  pre-switchover
• Access to multiplex capacity would help with
  development of new convergent applications in the
  interim
• Longer term, a secondary market in transmission
  capacity seems viable

46
6 Differentiating between General Interest and
other broadcast services

• General Interest services historically have
  privileged access to spectrum, balanced by
  coverage / content obligations
• We suggest there is no case for applying such
  privileges to new, commercial services
• Where spectrum is required for new services or
  enhancements, it should be acquired in same way
  as for other users

47
7 Spectrum Allocation

• Extension of primary allocation of broadcast
  spectrum to include mobile service should be
  pursued at WRC 07
• RSPG should develop a position on TWIMS and
  implications of convergence for future approach
  to international spectrum allocations
• Undertake technical and market studies to clarify
  demand for bi-directional spectrum in UHF bands

48
8 Facilitating New Services

• Opportunities exist for new, convergent services
  compatible with existing planning regime
• But will depend on spectrum availability
• Recommend EU initiative (via CEPT) to make
  available at least eight frequency channels in
  each MS for new services, to be assigned on a
  market based, technology and service neutral basis

49
9 Existing non-broadcast uses

• Where spectrum is scarce, alternative bands
  should be sought
• Non-civil use of broadcast spectrum should take
  account of opportunity cost of denial of spectrum
  to broadcast or other civil use
• Terms and conditions of non-broadcast use should
  be reviewed during transition phase to digital
  and migration plans developed where scarcity is
  anticipated

50
10 International Cross-sector co-operation

• Extend co-operation with non-EU countries on
  development of audiovisual and convergent
  services
• e.g. could include within remit of existing
  action plan for EU-Japanese co-operation
• Encourage co-operation between sectors and
  players in emerging horizontal markets
• content providers, network operators, equipment
  vendors etc

51
Thank You!
Spectrum Management in the field of Broadcasting