1. Germany’s Transition to Digital Broadcasting
International Forum “Digital Broadcasting in Ukraine”
Dr. Andreas Grünwald
Partner, Hogan & Hartson, Berlin
September 25, 2009
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2. Outline
• German Market Background
• Digital Switch-Over: The Berlin Example
• Current DTT Roll-Out in Germany
• The Digital Dividend Discussion
• General Legal and Policy Issues
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3. TV Infrastructures in Germany (1)
Nationwide
Source: SES Astra, per end of 2008
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4. TV Audience Shares
Source: KEK, 2008 average
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5. Regulatory Framework
Federal Level States Level
Telecommunications Broadcasting
• Spectrum Management • Freedom of broadcasting
• International Coordination • Public service definition
• Allocation / Assignment • Withdrawal of analog
• Withdrawal of analog broadcasting licenses
transmission licenses • Licensing of digital
• Licensing of digital network broadcasters
operators
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6. Berlin Switch-Over Project 2002/2003
• Kick Off: “Launch Scenario 2000”
– Joint initiative by Federal and States governments / industry (broadcasters,
network operators, device manufacturers)
– Proposed switch-off date: End of 2010 (not legally binding)
• Berlin Implementation
– Step 1: Make analog spectrum available
• 10/2002: 1 high-power analog frequency abandoned to launch 1 digital multiplex
– Step 2: Simulcasting
• 2/2003: All commercial channels cease analog transmissions
• Public broadcasters switch to low-power analog frequencies
– Step 3: Analog Switch-Off
• 8/2003: Public broadcasters cease analog transmissions
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7. Berlin: Legal Framework
• MABB Switch-Over Ordinance
– No renewals of analog licenses upon expiry, but entitlement to get a digital license
– Simultaneous analog switch-off of all nationwide private channels, subject to 6
months prior notice
– Switch-off conditions:
• All analog channels available on DTT, plus additional channels and extra
services
• Less than 10% of all TV households still depending on analog terrestrial service
• Decoder availability at “affordable” price
• Agreement with major private broadcasters (P7S1 / RTL)
– P7S1/RTL: 5 year commitment to make digital channels available for DTT broadcast
– MABB: Commitment to compensate extra costs (subsidy, later declared illegal)
• Must carry status on analog cable networks for all DTT channels
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8. Berlin: Outcome
• Key Factors to Success
– Many (12) analog frequencies available for historic reasons
– Only 6% terrestrial households ( = only 160,000 out of some 1.8 million
households directly affected by loss of analog signal)
– Media authority‘s round table approach
– Brief simulcast period
– Subsidies / Must carry status on analog cable networks
• Receiver Market
– Roundtable agreement to offer standard boxes below EUR 200
– Price soon dropped to well below EUR 100
– Some 40% of the boxes purchased by cable and satellite homes
– Downside: Many „dumb“ boxes in the market w/o interactivity features
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9. Berlin: Channel Allocations
Source: MABB project report
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10. Berlin: Receiver Sales
Source: MABB project report
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11. Current status of German DTT roll out
Analog switch-off completed
by end of 2008
Source: www.ueberallfernsehen.de
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12. Regional Infrastructure Break Down
Regional Break-Down
Source: SES Astra, per end of 2008
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13. Digital Dividend Discussion
• December 2008: Pilot project near Berlin to use broadcast frequencies for
mobile internet services
• Feb 18, 2009: Federal government broadband strategy
– nationwide 1 MBit/s coverage by end of 2010
– 75% 50 MBit/s coverage by end of 2014
• March 4, 2009: Cabinet office decision
– 470 to 790 MHz band: Broadcast services
– 790 to 862 MHz band: Mobile Internet services
• June 12, 2009: Bundesrat approval
• Oct / Nov 2009: Federal telecoms regulator to decide on auction design
• Q2 / 2010: Auctioning of 790 MHz to 862 MHz spectrum
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14. General Legal and Policy Issues
• Market environment
• Length of simulcast period
• Use of subsidies
• Availability of decoder boxes
• Marketing / public awareness
• Non-discrimination of other transmission infrastructures
• Must-carry status for DTT channels on analog cable networks
• Encryption of digital signals to protect copyrights
• Use of digital dividend
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15. For more information on
Hogan & Hartson, please visit us at
www.hhlaw.com
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