DVB-T2 The Nordic Approach
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1 DVB-T2 The Nordic Approach Lars Backlund Senior Vice President Public and Regulatory Affairs Teracom Group ITU-D and National Media and Infocommunications Authority Seminar Budapest, January TRC Budapest/ LB Page 1 {16:10}
2 Facts and Figures Teracom Group DTT Networks FM Radio Networks Co-location and Service Pay-TV Turnover ~550 million Profit EBT ~ 80million About pay-tv customers 350 B2B customers 600 employees Owned by the Swedish Government Denmark Sweden Pay-TV TV Broadcasting Radio Broadcasting Networks Services TRC Budapest/ LB Page 2 {16:10}
3 Facts and Figures Teracom Group Group functions: Strategy, Business Innovation, Public Affairs & Regulatory, Legal, Finance, Treasury, HR, Sourcing, Security Teracom Sweden Swedish DTT Network Teracom Denmark Danish DTT Network Boxer Sweden Swedish Pay-TV Boxer Denmark Danish Pay-TV Operating companies Networks and Pay-TV TRC Budapest/ LB Page 3 {16:10}
4 Network operator for Radio, TV and Telecom Sweden Denmark TRC Budapest/ LB Page 4 {16:10}
5 Starting point - DTT Nordic Countries Network Pay-TV Network Pay-TV 5 MUX UHF ~ 60 ch DVB-T1, MPEG4, SD, HD 11 MUX UHF, VHF ~ 60 ch DVB-T1, DVB-T2, MPEG2, MPEG4, SD, HD Network Pay-TV Network Pay-TV 5 MUX UHF ~ 40 ch DVB-T1, DVB-T2, MPEG4, SD, HD 7 MUX UHF, VHF ~ 60 ch DVB-T1, DVB-T2, MPEG2, MPEG4, SD, HD TRC Budapest/ LB Page 5 {16:10}
6 Nordic markets - Characteristics Nordic Countries comparatively small Public Service is free-to-air Advertising can only support a limited number of commercial free-to-air channels Pay-tv well established Attractive and reasonably priced mini-pay and premium packages Viable business for a large number of commercial TV channels when mini-pay and advertising are combined Premium packages for film Consumers have accepted to pay for TV TRC Budapest/ LB Page 6 {16:10}
7 Observations Sweden All commercial channels require a license from the Radio and TV Authority to appear in the DTT network Licenses do not assign bit rate or any specific MUX Licensed channels can freely chose to be free-to-air or Pay-TV Number of license applications exceeds network capacity One operator for the network and multiplexers, and one operator for Pay-TV License conditions and operational set-up allows: Reaping full benefits of coding improvements and statistical multiplexing Reshuffling of channels between muxes to accommodate simulcast and technology migration (=HD and beyond) STB upgrades as part of the Pay-TV operation TRC Budapest/ LB Page 7 {16:10}
8 Further observations Sweden Regional breakdown has proved very attractive and profitable for broadcasters regions easy to implement with DTT at low cost Public Service - 4 channels 78 versions DTT will carry about 250 versions of the most popular channels during 2013 Potentially 50 channels x regions = versions National SFNs not feasible Satellite can not compete TRC Budapest/ LB Page 8 {16:10}
9 Where are we heading ff DTT HD introduction DTT HD migration plan DTT = all HD platform Competitive and attractive? - Probably yes! If we don t plan our own future, regulators, competitors and consumers will During we will be at a crossroads to secure the future of DTT DTT = SD based platform Competitive and attractive? - Probably no! TRC Budapest/ LB Page 9 {16:10}
10 Conclusions HD will eventually become standard Graceful migration of DVB-T1 networks to DVB-T2 will be required Scenarios and timelines very country dependent with significantly different starting points (T1, T2, MPEG2, MPEG4 or greenfield) The (=one) network operator has to have full control of the network with the ability to optimize performance, reshuffle channels between muxes in order to complete the migration process. A large pay-tv base can allow graceful migration of consumer equipment Markets can only support a limited number of free-to-air channels in addition to public service Pay-tv will allow smaller channels to remain in business they get paid for content TRC Budapest/ LB Page 10 {16:10}
11 DTT 50 SD + 8 HD (Swedish example) TRC Budapest/ LB Page 11 {16:10}
12 The Challenge Large number of DTT households Large number of DTT receivers 7 multiplexers fully used Some 60 TV channels DVB-T1 DVB-T2 MPEG 2 MPEG 4 SD TV HD TV UHF VHF Everything to! Everything to DVB-T2! Everything to MPEG 4 / HEVC! Everything in less spectrum? Uncertain timing! Uncertain regulatory framework! Manage cross border coordination! Mange to justify network investments! Manage to retain customer base!! Upgrade of consumer equipment! Introduce new services OTT, HbbTV TRC Budapest/ LB Page 12 {16:10}
13 How to introduce T2 gracefully? How to migrate all channels to HD? How to deal with the 700 MHz issue? Which other services can add value for broadcasters and consumers? TRC Budapest/ LB Page 13 {16:10}
14 DVB-T2/ migration strategy 1. Migrate premium services Early Time Late Few Number of consumers affected Many TRC Budapest/ LB Page 14 {16:10}
15 A possible path of migration (illustrative) Make use of better performance of coders Reshuffle channels to other MUXes Simulcast during SD to HD migration T1 => T2 DVB-T1 MUX 1 DVB-T1 MUX 2 DVB-T1 MUX 3 DVB-T1 MUX 4 DVB-T1 MUX 5 DVB-T2 MUX 6 DVB-T2 MUX 7 MPEG-4 SD MPEG-4 SD MPEG-4 SD MPEG-4 SD MPEG-2 SD MPEG-4 SD MPEG-4 SD MPEG-2 SD MPEG-4 SD MPEG-2 SD MPEG-4 Clearing of Mux TRC Budapest/ LB Page 15 {16:10}
16 Continued migration (illustrative) Magic!!! DVB-T1 DVB-T1 DVB-T1 DVB-T1 DVB-T2 DVB-T2 DVB-T2 MUX 1 MUX 2 MUX 3 MUX 4 MUX 5 MUX 6 MUX 7 MPEG-4 MPEG-4 MPEG-4 All existing channels can continue TRC Budapest/ LB Page 16 {16:10}
17 Continued migration (illustrative) Magic again!!! DVB-T1 DVB-T1 DVB-T1 DVB-T2 DVB-T2 DVB-T2 DVB-T2 MUX 1 MUX 2 MUX 3 MUX 4 MUX 5 MUX 6 MUX 7 MPEG-4 MPEG-4 All channels can continue MPEG TRC Budapest/ LB Page 17 {16:10}
18 Thank You for Listening TRC Budapest/ LB Page 18 {16:10}
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