Ddo6 Lorelien Hoet 2008 10 17 Gof Presentation Digital Dividend Final


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Ddo6 Lorelien Hoet 2008 10 17 Gof Presentation Digital Dividend Final

  1. 1. GSM Operators' Forum Digital Dividend : challenges and opportunities in Belgium Mobile applications and socio-economic relevance CONFIDENTIAL 1
  2. 2. Table of contents Digital switch-over and digital dividend International context Why do mobile operators request part of the digital dividend ? Mobile data growth/ mobile data services evolution Very efficient and valuable spectrum with good propagation characteristics Consumer and society benefits No negative impact for broadcasting Application to the Belgian case Flanders French Community Timing issues Technical considerations 2
  3. 3. Background of « GOF » The GSM Operators' forum (« GOF ») comprises the 3 Belgian mobile network operators Base Belgacom Mobile Mobistar Where appropriate, GOF adopts common positions on neutral issues / regulatory aspects of mobile telecom services. The GOF operators share the same view on the digital dividend. 3
  4. 4. Digital switch-over and digital dividend The switch-over from analogue to digital broadcasting will liberate a considerable number of frequencies in the UHF band Analogue TV currently uses the frequencies from 470 to 862 MHz Digital transmission of one TV channel requires up to 6 times less spectrum than analogue transmission The so-called digital dividend = spectrum over and above the frequencies required to support existing broadcasting services 4
  5. 5. Digital switch-over and digital dividend Switch-over and digital dividend: a great opportunity Allocating only part of the dividend to digital terrestrial television (DTT) already allows a major expansion of the capacity and the quality of the DTT. In addition, it allows to stimulate new information society services such as mobile television, mobile broadband or other wireless services. Mobile sector requests to allocate at least 72MHz of UHF band, i.e. from 790 to 862 MHz, to mobile/wireless broadband services This is less than 25% of the total spectrum in the UHF band currently used for the provision of broadcasting services 5
  6. 6. International context WRC 07 designed in Nov 2007 the sub-band 790-862 MHz (channels 61-69) for mobile broadband for Europe, Africa, Middle-East Effect as from June 2015. But flexibility to allocate this sub-band prior to 2015, which a majority of members have formally declared to be willing to in light of the switch-over Discussion at EU level Commission Communication of 13 November 2007 : “The most promising of these potential uses belong to the category of electronic communication services” Technical work within the CEPT : Reports A, B (and C) completed in September 2007 Second mandate given in April 2008 to precise conditions for coexistence in the UHF band Council conclusions of 12 June 2008 underlining the use of the digital dividend as an “opportunity both to extend broadcasting services [ ] as well as to introduce new communication services such as wireless broadband communications, additional terrestrial broadcasting services and mobile multimedia services”. European Parliament’s endorsement of the Toia Report in September 2008 “calls on Member States to develop, following a common methodology, national digital dividend strategies by the end of 2009”, “supports a common and balanced approach to the use of digital dividend allowing both broadcasters to continue offering and expanding their services and electronic communications operators to use this resource to deploy new services addressing important social and economic uses, but stresses that in any case the digital dividend should be allocated on a technology neutral basis”. 6
  7. 7. Why do mobile operators request part of the digital dividend ? Mobile data growth / mobile data services evolution Very efficient and valuable spectrum Benefits for society & consumer welfare No negative impact for broadcasting services 7
  8. 8. Mobile data growth & services evolution Fixed electronic communication services are clearly and quickly moving towards higher bitrates and enhanced broadband access (1 to 16 Mbps currently) Consumers are increasingly requesting ubiquitous access to high speed services New value added services such as e-health, e-learning, e- governement, etc. Mobile sector technologies evolve : 3G UMTS (1-14 Mbps) 3G LTE or WiMax (>100 Mbps) Estimate Spectrum Value Partners, Digital Dividend Study March 08 8
  9. 9. Very efficient and valuable spectrum Spectrum generally regarded as being of greatest value (‘golden spectrum’) lies between 200 MHz and 1 Ghz because of attractive characteristics : Good propagation characteristics, i.e., easy penetration and larger wave capacity leading to larger base station cells Good coverage characteristics, i.e., allowing to cover large geographical areas with fewer base stations and thus lower costs Source BBC 9
  10. 10. Very efficient and valuable spectrum UHF spectrum will be very useful for rolling out mobile broadband in rural areas Coverage matters more than capacity Lower bands required (900 MHz and below) Larger cells allow to cover larger distances at lower costs 900 MHz band is not sufficient as it is already used for 2G (GSM) and 3G (UMTS) services UHF spectrum could also be used for improving signal penetration through buildings (in-door penetration) 10
  11. 11. Very efficient and valuable spectrum Do mobile operators already dispose of too much spectrum ? Source, Ofcom, Statement on Digital Dividend Review December 2007 11
  12. 12. Consumer and society benefits Rural roll-out & digital divide : Broadband mobile services will in near future be overall available in urban areas using 2.6 GHz band In order to cover rural areas, frequency bands below 1 GHz will be necessary Use of UHF band allows to offer broadband mobile services in rural areas Cost advantages : Inherent spectrum propagation characteristics of UHF band lead generally to lower network costs enhanced penetration & lower end user service cost In sum : without UHF access for mobile broadband: Less geographic coverage for mobile broadband, and/or The cost of building the network is much higher impact on end user service and uptake 12
  13. 13. Consumer and society benefits Analysys and Hogan & Hartson study for ARCEP of May 2008 shows that coverage rate of high bitrate mobile access varies in light of UHF : Without UHF spectrum, maximum 74 % coverage of population (based on 2.6 GHz) With UHF spectrum, up to 99 % coverage of population (based on 2.6 GHz and UHF) Spectrum Value Partners study March 2008: Allocating some of the UHF spectrum to mobile services would generate between EUR 63-145 bn NPV This is in addition to the NPV generated by mobile services generally. This is the net added value as compared to allocating UHF spectrum only to broadcasting 13
  14. 14. No negative impact on broadcasting services DVB-T is much more efficient than analogue broadcasting : 1 Multiplex or MUX (8 MHz carrier) can be used for 4-6 standard channels or 2-4 HDTV channels With 7 multiplexes, theoretically more than 40 TV channels could be served via DVB-T technology Demand for this is uncertain. Belgium is country with high cable and DSL penetration E.g. in Flanders, 97 % of TV-households have cable & IP-TV access Number of analogue TV-households very low compared to EU average Only two channels are currently accessible through analogue TV We do not contest value of UHF allocation to DTT but note that : The majority of the UHF spectrum is concentrated in the first few channels that account for the bulk of viewing For dense cable/satellite countries, UHF spectrum has less value on a per capita basis (typically < 10 % of TV households using analogue TV) TV consumption will become increasingly interactive while focusing less on classic TV-programs Less spectrum required for classical TV 14
  15. 15. Application to Belgium : Flanders With switch-over end 2008 Flanders has the possibility to evolve without delay toward a prosperous and ubiquitous information society by already integrating future e- communication services spectrum needs. Impact: Only 1 community-wide multiplex of 5 is affected and 1 regional multiplex of 2 is partially affected. 5 multiplexes would still be fully operational to offer DTT services which is equivalent to 30 TV channels (with standard definition); a multiple of today’s offer. Positive to see that Flanders provisionally decided in August 2008 not yet to allocate the spectrum above 790 MHz to broadcasting 15
  16. 16. Application to Belgium : French community With switchover in 2011, French community has some time to take appropriate actions to allocate some UHF spectrum to electronic communications. Impact: 4 multiplexes would still be entirely operational to offer DTT services, which is equivalent to 24 TV channels (with standard definition) 3 multiplexes would only be partially affected We thrust that open discussion can be launched between the sector and the authorities in light of what happens in neighboring countries, e.g. France 16
  17. 17. Timing 2012 : latest year for switching off the analogue broadcasting network and replacement by digital broadcasting. In Flanders, switch off is planned for November 2008. In French community, switch off is planned in 2011 only. Delay of the allocation of the digital dividend is not an option : Mobile is an industry with long payback periods on investments and needs to make large upfront investments Various frequency bands are linked (900, 1800, 2100, 2500/2600 Mhz) and it is hard to make investment decisions on one without knowing what will happen to the others Delayed decisions on UHF could adversely affect investment decisions on the others Two-step allocation of the UHF band is no option either : Could make it necessary to adapt antennas and equipment costly Will enhance interference and harmonization problems with neighboring countries 17
  18. 18. Technical considerations The UHF spectrum used for mobile broadband needs to be harmonized as much as possible Separate national band plans destroy value Harmonization goals : Control cross border interference Enable roaming services Reduce handset costs (higher volumes > lower prices) Definition of the bandwidths requires harmonized approach : LTE needs wider bandwidths to offer mobile broadband data rates 18
  19. 19. At last … THANK YOU for your attention ! We hope to have convinced you of the importance to allocate at least 72 MHz of the digital dividend to mobile broadband services. ϑϑϑ 19
  20. 20. Contact GSM Operators' Forum (GOF) Diamant Building, BD A. Reyers LN 80 B-1030 Bruxelles/Brussel tel: +32 (0)2 706 79 92 e-mail: info@gof.be 20