Digital Switchover in Lithuania

2023 metų balandžio mėnesio 22 diena

Feliksas Dobrovolskis 1

Digital Switchover in Lithuania

Buchara, 2009-05-27



Outline of the presentation

• General overview;• TV broadcasting in Lithuania;

• DTV broadcasting;• DVB-T networks;• EU dimension;

• Spectrum dividend;• Challenges to DTV development;• Ways to overcome;

• Role of Regulator;• Future trends.



General overview

April 1957 - First television transmission – about 30 TV sets in Lithuania. End 1957 - already 1.5 thousand TV sets. 2005 - 94 % of households had colour TV set. 2007 - colour TV (sets’) penetration reached 140 %.

Public TV – 2 national terrestrial analogue TV channels 3 commercial national analogue TV channels. IVQ 2008 – 30,2 % of households were cable TV and MMDS subscribers. 86

% of households can be potential subscribers.

Vision for 2012 – Almost every household will be able to use digital TV, of which >400 000 households (about 30%) use DVB-T

Beginning - 30 analogue TV sets

Aim - > 98% of households equipped with digital TV (DVB-T, DVB-C, DVB-S, IPTV)



TV broadcasting in Lithuania: long path of evolution

Colour TV broadcasting

1975 1993-04

DVB-T networks in

5 biggest cities

At least one DVB-T network coverage - 95 % of territory

2009

Digital Cable TV,

MMDS

2007-12

19891957-04

Cable TV network

deployed

Commercial TV started

First TV transmissions

2012-10

Final switch-off of

analogue TV

2004

Pilot Digital TV broadcasting promotional

project in Vilnius

trolleybuses

2004-102003-08

Issued DVB-T broadcasting

and re-broadcasting

licenses

2005-09

Live mobile TV

(GSM/UMTS) broadcasting

Full launch in

Vilnius and 40 km

around

2006-07

Pilot TV via mobile

(GSM/UMTS) phone

2006-022005-07

Contest for DVB-T

networks

2001-03

Digital Satellite TV

Pilot Digital Terrestrial TV

transmission in Vilnius by 53rd TV

channel transmitter

2005-04

Radio programs

via Internet

2003-05

TV programs via Internet IPTV

authorisations issued

2006-05

IPTV services started

2006-10



TV broadcasting in Lithuania: long path of evolution

1996 1997 2001

Law on Provision of Information to the Public

Law on the National Radio and Television

European Convention on Transfrontier Television

Conceptual Framework of the National Information Society Development of Lithuania (Government Resolution)

Strategy for the Assignment of Radio Frequencies to Broadcasting and Transmission of Radio and Television Broadcasts (Government Resolution)

Order of Director of the RRT Concerning the Approval of the Rules for Allocating and Using of Radio Frequencies / Channels

Strategic Plan of the Development of Informational Society of Lithuania (Government Resolution)

… 2003

Strategic Plan for the Assignment of Radio Frequencies to Broadcasting and Transmission of Radio and Television Broadcasts

Model of Implementation of Digital Television in Lithuania (Government Resolution)

2004

National Radio Frequency Allocation Table (Government Resolution)

2005

Order of Director of RRT on Digital Terrestrial Television Development Plan

Strategy of the Development of Informational Society of Lithuania (Government Resolution)

2006

Law on Services of Information Society

Law on Amendment of Republic of Lithuania Law on Provision of Information to the Public



DTV broadcasting in Lithuania: DVB-C12

0,9 16

2,8

198,

2

225,

8

226,

3

234,

5

239,

5

253,

8

295,

5

322,

0

333,

8

36,5

32,2

34,8

31,1

36,0

35,0

0

70

140

210

280

350

420

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007IQ

Cable TV MMDS

As of the beginning of 2007, 51 cable TV and 5 MMDS networks were operated in Lithuania.

The number of cable TV subscribers experienced permanent growth (average 1997 – 2006 growth of cable TV subscribers was 14.55 per cent).

Source: Communications Regulatory Authority.

DVB-C (digital cable TV):

Balticum auksinis – the first DVB-C programs package, introduced in 2004. Balticum auksinis started with 6 TV programs in 2004, followed by 40 programs in 2005 and 60 programs in 2006. Balticum TV UAB was expecting to increase the number of programs to 100 by the 2007.

Also in 2004 Balticum TV UAB had introduced programs package over the DVB-T network, available by that time in a certain area of Vilnius city.



DTV broadcasting in Lithuania: DVB-S, IPTV

DVB-S (digital satellite TV):

VIASAT programs are being broadcasted over satellite SIRIUS 3 & 2 and cover whole territory of Lithuania; VIASAT offers encoded package „Auksinis paketas“, which encompasses over 40 TV and 10 radio programs; Other free programs are available over this satellite.

IPTV (internet TV):

IPTV ensures high sight and sound quality and control over TV content option; In October 2006 started GALA TV – IPTV, realized by fixed incumbent TEO LT. In 1H 2007 number of IPTV subscribers reached 11.382 thousand; Other service providers (www.tvaidas.lt , www.skynet.lt, www.tiltas.lt/iptv) offered commercial and pilot broadcasts also.



DTV broadcasting in Lithuania: DVB-H like

Digital TV for mobile terminal equipment

• Two mobile communication operators started DTV services for mobile phones in 2005;

• 3G (UMTS/IMT-2000) licenses were issued at the beginning of 2006 and network deployment started;

• Tens of TV programs currently can be seen on mobile within the 3G network;

• Further technical studies on real DVB-H (multimedia on mobile platform) implementation are going on.



DTV broadcasting in Lithuania: DVB-T

DVB-T step by step2002 - DVB-T experimental broadcasts;2003 - DVB-T pilot project (compression standard MPEG2);2005 - AB LRTC и TEO LT, AB were authorized to use relevant frequencies;

• beginning of network deployment (two national networks of each operator);• operators have chosen H.264/MPEG-4 AVC compression standard;

2006 - Winners of licenses for TV programs broadcasting were chosen; • Primary broadcasts in Vilnius, programs visible till 40 km around the city;• Information company dedicated to end users on DVB-T started;

2007 - DVB-T broadcasts started in five biggest cities, 85% of population covered;2009 - Both operators transmit 10 programs within each of their networks (40 totally);

• 15 programs are free of charge, 25 – encoded; 2012-2015 гг. – запустить 9 DVB-T сетей, до 90 ТВ программ (или несколько меньше если часть ресурсов использовать для передачи HDTV программ).



DVB-T: I network

1-st network



DVB-T: II network

2-nd network



DVB-T: III network

3-rd network



DVB-T: IV network

4-th network



DTV broadcasting: EU dimension

Between 2004 and 2007 the Radio Spectrum Policy Group (RSPG) issued a number of opinions offering guidance to the European Commission on a range of spectrum issues:

• RSPG Opinion on the EU Spectrum Implications of Switchover to Digital Broadcasting (RSPG04-55. 19 November 2004);

• RSPG Opinion on Wireless Access Policy for Electronic Communications Services (WAPECS) (RSPG05-102. 23 November 2005);

• RSPG Opinion on the Introduction of Multimedia Services in particular in the Frequency Bands Allocated to the Broadcasting Service (RSPG06-143. 25 October 2006);

• RSPG Opinion on the EU Spectrum Policy Implications of the Digital Dividend (RSPG07-161. 14 February 2007).

Among the spectrum issues which are currently being examined by the EC is the Digital Dividend – the spectrum in UHF Bands IV and V (470-862 MHz) released as a result of the switchover from analogue to digital terrestrial television (DVB-T).



DTV broadcasting: EU dimension

Why switch-off in 2012?

General EU non-binding approach: digital dividend after 2012.



DTV broadcasting: digital dividend in Lithuania

In the EU the UHF spectrum is considered as suitable for WAPECS and having been identified as relevant for mobile TV as well as for extending the reach of all types of wireless electronic communication services into rural areas.

However, the usage of UHF spectrum for mobile technologies is constrained because of historical usage for the terrestrial broadcasting, various national policies regarding the

digital dividend and by other services outside the EU:

The firs serious reservations are related to the need of claiming for protection of non-EU analogue TV stations as long as they switch them off by the year 2015 (in case of optimistic scenarios). So, the success in usage of digital dividends in the Member States located at the outer EU borders crucially depends on the transition from analogue to digital terrestrial TV in the EU neighbouring countries.

The second reservation is related to the non-broadcasting services operating in the countries outside EU. In accordance to footnote RR No.5.312, in some countries the band of 645-862 MHz is also allocated to the aeronautical radio navigation service on a primary basis. Particularly in Russian Federation the sub-band 790-862 MHz and in Belarus the sub-band 830-862 MHz is allocated to the Aeronautical Radio Navigation Service and is used with priority for governmental usage, national defence, security and maintenance of public order.



DTV broadcasting: digital dividend in Lithuania

E S T O N I A

L A T V I A

L I T H U A N I A

B Y E L A R U S

P O L A N D

Goteborg

Szczecin

Berlin

Magdeburg

Leipzig

Dresden

Praha

Kobenhavn

Stockholm

Gdansk

Bydgoszcz

Poznan

Wroclaw

Krakow

Ostrava

Brno

Helsinki

Tallinn

Kaliningrad

Grodno

Bialystok

WarsawBrest

Lublin

L'viv

Saint Petersburg

Vitebsk

SmolenskVilnius

Mogil'ov

Chernigov

KievZhitomir

Vinnitsa

Panev ysėž

Kaunas

Klaip daė

Šiauliai

Liepoja

Daugavpils

Valmiera

Tartu

Ventspils

Minsk

Riga

Ba

l t i c

se

a

U K R A I N E

R U S S I A

C Z E C H R E P .

G E R M A N Y

F I N L A N D

S W E D E N

Lithuania is going to have unlimited access to 1/3 of spectrum dividend only.



Challenges to digital TV development

Audiovisual and communications sectors undergo a fundamental change due to technologic progress : formerly clear borders between content and transmission are blurring.

Unlimited number of audiovisual content delivery channels, i.e. the same content can be delivered over different transmission means:

- cable TV, satellite TV, MMDS, terrestrial TV, IPTV, mobile TV;

– Currently different means are licensed separately (no clear reason for licensing at all);

– Some transmission means risk to be ignored due to the lack of legal ground;

States’ borderlines are no more restrictive factors:

– Increasing popularity of internet TV and radio;

– Target audience can be easily reached from abroad;

– Digital technologies enable personal program individualization;

Necessity to develop a flexible regulatory structure;

Need for consistent, pro-competitive and stimulating expansion of the digital economy regulatory system.



Challenges to digital TV development

Supply side Demand side

Economical implications

Social implications

Investments

Technologies

Ability to pay / Value for money

End users’ equipment

Services

Needs

Awareness



Ways to overcome: role of regulator

Strategies for regulator:1. Direct intervention

• Compensations;• Capital injections.

2. Staying away.3. Indirect influence

• Creating preconditions.

In Lithuania we chose the 3rd option:

Exemptions for licenses holders in DVB-T networks were introduced:

- fee for the supervision of radio frequencies (channels) was reduced by 30 per cent;

- payment of fee for the supervision of radio frequencies (channels) was rescheduled for 1 year period from license issue date.

Clear date of the beginning of switch off of analogue TV by 2012 was announced in 2004. Now it is specified as final switch off in October of 2012.

Supply side


Investments

Technologies

How broadly to invest?

Which investment strategy to choose?




Supply side


Investments

Technologies

Which one is the best and which one to choose?

Compression standard – MPEG – 4?

Pros

• Better compression possibilities : transmission of up to 10 standard quality TV programmes;

• Saving resources of radio frequencies (channels).

Cons

• Relatively new standard;

• Currently is not very common;

• Small (but growing) supply of TV sets and set top boxes in the market.

Also use the same standard: Estonia, France, Norway, Sweden, Slovenia, Brazil, PolandA range of countries are considering possibility of usage the MPEG-4.

In Lithuania:

The winners of the digital terrestrial television broadcasting tender - Lietuvos Radijo ir Televizijos Centras AB and TEO LT, AB at the end of June 2006 began to provide services of transmission of digital television using MPEG 4 compression standard in the digital television networks. The standard was chosen voluntarily.




Supply side


Investments

Technologies

Which one is the best and which one to choose?

So…

Lithuania, taking in account opinion of market participants, in the late 2005 presented to European Commission project of the legal act on determination of uniform and compulsory standard of digital interactive television (MHP), but the Commission didn’t countenance it and the legal act wasn’t approved.

Therefore…

To inspire voluntary agreement between participants of the Lithuanian market of digital terrestrial television on usage of uniform standard for digital interactive television on purpose to achieve best benefit for themselves and customers of digital terrestrial TV – is the next reasonable follow-up.

European Commission promotes MHP as the most advanced open applications program interface (API) standard in Europe,

But…

It also calls for voluntary use of interactive television standards.

And…

The European Commission has decided that compulsory technical standards imposed by regulators are not necessary for the roll-out of interactive digital television services in Europe.




According to research of Consumers Association (UK) – the most important driver of digital television take-up is the availability of extra channels. The vast majority of adopters subscribe to a basic channel bundle, while more than half also pay for premium channels. Almost three quarters of adopters mentioned a particular channel type, mostly films and sport, as an important factor in their choice.

In Lithuania:

7 broadcasters and 2 re-broadcasters will offer 40 TV programs in total.

New national commercial TV companies.

Supply side

Social implications Services

What services to supply in order to meet customers needs?




7,39 7,418,4

5,40%5,00% 5,00%

0

2

4

6

8

10

2003 2004 2005

0%

2%

4%

6%

Expenses for communication services, EUR per month per 1 householdmemberThe part within the total household expense

The dynamics of household expenses for communication services and the expanse part within the total household expense structure in 2003-2005.

In IV quarter of 2008 30,2 % of households were connected to CaTV or MMDS in Lithuania. This means, that 30,2 % of households are already paying for TV services. These consumers might be already over the barrier of paying extra for their television before they get digital.

Still for the majority of Lithuanian inhabitants paying for TV is not a commonplace.

According to the experience of other countries, free-to-air model might be a digital TV penetration driver. Therefore in Lithuania, at least 5 programs to be broadcasted free-to-air were foreseen in the legislation. As the result of digital terrestrial television broadcasting tender 14 TV programs will be broadcasted free-to-air in Lithuania.

Source: Statistics Lithuania

Demand side




Am I able and why should I pay for extra equipments and services?




Challenge No 1. Lack of set-top boxes and TV sets with digital function. Market wasn’t prepared because of uncertainty about the compression standard. Now the MPEG-4 is in place, but supply of set-top boxes is still at low scale.

Challenge No 2. The price of set-top box varies from 60 to 400 Euros. Having in mind non-willingness and tiny ability to pay for extra TV services by Lithuanian inhabitants, introduction

of a compensation mechanism, partial financing or tax reimbursements system in order to stipulate digital TV penetration in Lithuania during the transitional period might be the options for consideration in Lithuania.

Provision of Lithuania’s households with television sets in 2002-2005, number of sets per 100 householdsSource: Statistics Lithuania

Demand side




What extra equipment do I need?

106

111

116

120

18

19

15

9

0 40 80 120

2002

2003

2004

2005

Color TV set Black-and-white TV set




Lack of information about digital TV’s advantages and costs doesn’t motivate for set-top boxes acquisition, doesn’t involve in viewing or switchover to digital platform.

According to research of Consumers Association (UK) – the reasons for choosing digital TV change over the time. First users were engaged by sports channels mainly, but now the main drive for change is extra services option (e.g. internet, e-mail), which can be offered by digital TV.

Lack of information problem is evident, therefore…

For a successful digital TV development wide public information campaign is essential.

Basic digital TV information is always available on RRT website.

Demand side

Social implications

Needs

Awareness

What I know about digital TV, its potential and costs?

Do I need digital TV?



What regulation we are seeking for?

• Light-touch, flexible and future oriented:– Not trying to “wrap” all possible media delivery technologies into legal acts;– Equally applied to all delivery means;

• Realistic:– With clear perception, that number of content delivery channels is unlimited;– Conscious of limited regulatory institutions jurisdiction;

• Content but not transport means oriented:– A program can be delivered via different means, if the content meets established requirements;

• Enabling further investments:– Investments to foreign countries with the aim to reach a particular (e.g.

Lithuanian) audience from there is not acceptable;– Unnecessary administrative obstacles should be removed;

• Ensuring programs critical to the public and their proper delivery:– Delivery of relevant programs to the consumers must be ensured regardless of the technological development.



Considering possible means to DVB-T encouragement

1. Informational measures batch Periodical researches about current DVB-T cognition determining what information about DVB-T is essential;

Creation of information infrastructure: dedicated internet site and free-of-charge info phone line;

Information campaign with the purpose to introduce DVB-T to as much potential customers as possible;

Announcement of exact date of final turn-off analogue TV;

Development of interactive DVB-T services guides.

2. Financial measures batch Income tax concessions for all households, purchasing set top boxes; Aggregate purchase of set top boxes for schools, social care/ foster institutions and other public institution; Inducement of set top boxes lend to households for determinate time period.

3. Other measures batch

The promotion of voluntary agreement among DVB-T market participants regarding usage of uniform standard for digital interactive television;Sufficient state financing for national broadcaster; Concession of broadcaster’s licence supervision tax.



Future vision of digital TV

Market vision

Main trend – individualization and personalisation, to meet needs of any individual consumer.

TV channels, sets of TV programs, timing and devices of TV watching will be up to choice like books in bookstore.

Digital TV, TV via PC and mobile phone - inter-compatible. Mobile TV complements digital TV.

Trend of miniaturisation of mobile phones – discontinuation.

No limitations to number of channels.

2006 2007 2008 2009 2010 2011 2012

DVB-T DVB-S DVB-C Analogue

Regulatory vision

Revised licensing system moving to fully liberalized one;

New approach to content regulation – securing vested interests of consumers and no artificial restrictions to content provision;

Closer cooperation internationally.



Thank you

Feliksas Dobrovolskis

Communications Regulatory Authority,Algirdo 27A, Vilnius, Lithuania

Phone: +370 5 210 5627e-mail: [email protected]

Documents

Digital Switchover in Lithuania