Digital Terrestrial Television The Swedish Experience
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1 Digital Terrestrial Television The Swedish Experience Vienna, February 15, 011 Lars Backlund Senior Vice President, Public and Regulatory Affairs Teracom Group Vice Chairman, Broadcast Networks Europe Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 1
2 Network operator for Radio, TV and Telecom First broadcasts in 191 Incorporated in 199 Owns the Swedish and Danish Terrestrial Networks Owns Boxer Sweden, Boxer Denmark and a majority of PlusTV in Finland Revenue, approximately 00 million Employees, approximately 600 Digital Terrestrial TV, The Swedish Experience, Vienna /LB page
3 Broadcast Networks Europe (BNE) represents the Terrestrial Broadcast Network Operators in Europe 13 MEMBERS Abertis Arqiva Digea Elettronica Industriale Norkring OIV ORS Swisscom Broadcast Radiocom RaiWay RTENL TDF Teracom 5 COUNTRIES Spain UK Greece Italy Norway, Belgium, Slovenia Croatia Austria Switzerland Romania Italy Ireland France, Germany, Finland, Hungary, Estonia... Sweden, Denmark, Finland Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 3
4 Terrestrial has a strong position Data from Eurobarometer show that in winter 009 TV was received by 57% of EU households using the analogue and digital terrestrial networks. Digital terrestrial was the fastest growing means of reception. Sum terrestrial 57% 50% Digital Terrestrial TV, The Swedish Experience, Vienna /LB page
5 Terrestrial is consumers preferred choice Ofcom Digital TV Q 010 report indicates that Digital Terrestrial Reception is used by 73% of UK households (18,7 million) on either a primary or secondary TV-set Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 5
6 The Swedish Terrestrial Network from the start Sweden (and Great Britain) started Digital Terrestrial Television (DTT) in the late 1990 s. The available transmission technology was DVB-T and compression standard MPEG It took considerable time to develop digital multi-channel pay-tv into a product for the ordinary household. Terrestrial, Cable, Satellite and IP-TV platforms compete intensively After ten years, Sweden is a mature TV market. More than 60 percent of households subscribe to digital multi-channel pay-tv There is a constant demand for more channels in the terrestrial network and there is a lack of capacity due to the limitations in DVB-T/MPEG- technology and limited availability of frequencies Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 6
7 Milestones 1997 Parliament approves DVB-T legislation 003 Parliament sets switch-off date to February 1, ,8% coverage dictated by law 00 Appointment of DVB-T switch-over commission 005 Government sets DVB-T switch-over timetable 005 DVB-T switch-over starts 007 Switch-Over Completed ahead of schedule Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 7
8 DVB-T switch-over, schedule and municipalities PHASE 1 Sep-Nov 005 PHASE Mar-May 007 PHASE Feb-May 005 :3 : 5:1 PHASE 3 Nov 006 PHASE 5 Sept-Oct 007 :3 1: 5:1 : 5: 1:3 :1 :1 3 1:1 5:3 Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 8
9 Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 9
10 Advertising on the Stockholm Underground Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 10
11 Communication activities Direct mail to households, landlords and retail shops Crawl text on major TV-channels Meetings with retailers and local government reps Media activities chat rooms, interviews Transmitter sites open for media at switch-off Info-centre on day of switch over Advertising Website Call centres SMS/mail distribution on day of switch off Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 11
12 Direct mail to households A total of. million households Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 1
13 Budgets for information campaigns Digital TV Commission for years (to the general public) 6,5 M Teracom info (to professional stakeholders) 0,7 M Airtime on several channels (at no cost for the DVB-T project)15,0 M ¹ ¹ Estimated value Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 13
14 More than 150 approved DVB-T receivers on the market Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 1
15 Who does what Network provider TV-channels Infrastructure Operations Maintenance Receiver tests Content Services Receiver Industry Operator Development Manufacturing Sales & Markeing Radio and TV retail shops Pay-TV Packages Subscriptions and STB bundling Smart Card SAS/SMS Consumer Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 15
16 Final results Extremely successful switch-over Consumers have accepted digital TV Relatively small changes between platforms About 0-5% of households use the terrestrial platform for their primary TV-set An estimated ~0% of households use the terrestrial platform for their second or third TV-set (kitchen, bedroom, caravan, summer house, etc) Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 16
17 Percentage of households in Sweden Viewers Choice of platforms The graph is based on data and forecasts from MediaVision and Datamonitor. Analogue Terrestrial Analogue Terrestrial Digital Terrestrial Cable-TV Satellite (incl. SMA-TV) IP-TV (Broadband) 50 Cable 0 30 Which platforms will win and which will loose market shares? Satellite Digital Terrestrial IPTV Yearend The diagram exhibits real competition between distribution platforms and that viewers in real life life do move among platforms. Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 17
18 The Terrestrial Digital TV Network Today Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 18 LB 6 feb 006
19 Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 19
20 The Swedish Terrestrial Network - today ~ 50 Standard Definition TV (SDTV) Channels and 9 High Definition TV Channels (HDTV) Five multiplexers continue to use DVB-T DVB-T.MPEG is retained and still improving, allowing additional channels DVB-T.MPEG is introduced for certain channels DVB-T will be retained and all subscribers will be able to receive old channels without new receivers Two multiplexers have started using DVB-T for HDTV All new set-top-boxes are and TV-sets are at least MPEG capable. A graceful transition from MPEG to MPEG will come naturally DVB-T receivers, both boxes and IDTV:s, are available on the market and now bundled with subscriptions for HDTV Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 0
21 The Swedish DTT Network, Channel plan Multiplex 1 Multiplex Multiplex 3 Multiplex Multiplex 5 Multiplex 6 Multiplex 7 T T SVT1 TV TV Plus C+ Hits C+ First Nickelodeon Eurosport MTV Comedy Central TV Sport Silver TCM C+ Series T SVT1 HD T SVT HD SVT SVTB/SVT TV11 TV Film TV Fakta C+ Sport 1 / SF Kanalen Kanal 5 TV3 Kanal 9 Discovery Discovery TLC TV10 Disney XD Axess TV Canal7 BBC World Showtime T T MTVN HD TV3HD T National Geographic HD C+ HD The knowledge channel SD statmux/dynamic CNN TV6 Disney Ch TV8 VH-1 Eurosport Cartoon Network Regional services Star! Animal Planet Regional services 7 Disc Science T TV HD Kanal5 HD T pay-tv timeshared services Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 1 MPEG based service MPEG based service T DVB-T and MPEG based service
22 Fierce competition several platforms Digital Terrestrial TV, The Swedish Experience, Vienna /LB page
23 Development Challenges Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 3 LB 6 feb 006
24 The Multi-Capable Terrestrial Network Universal coverage primary TV:s, kitchen TV:s, bedroom TV:s, second homes, caravans, boats, mobiles MPEG => MPEG DVB-T => DVB-T Adequate HDTV capacity 3D when screens and content become available Set-top-boxes with recording capabilities Hybrid solutions Push-TV and On-Demand Service New things H65, TFS, MIMO... Digital Terrestrial TV, The Swedish Experience, Vienna /LB page
25 Spectrum use The UHF Spectrum Reserved Digital Radio Mobile already uses several spectrum slots Defense 60 % of households use this spectrum for their TV reception The 800 MHz band will be cleared from broadcast services in favour of Mobile Broadband by How efficiently is available mobile spectrum used? UHF Terrestrial Broadcasting: One layer can be used for: 6-10 digital layers depending on population coverage -16 standard definition TV channels (today) 3-6 high definition or 3D TV channels (today) capacity depends on transmission and coding standard Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 5
26 Key messages in connection with the Commission s proposed Radio Spectrum Policy Program (RSPP) Terrestrial Broadcasting is efficient, drives competition and is the consumer s choice approaching 60% of European households for primary TV reception Consumers and the Broadcasting Industry are now making substantial efforts and investment in clearing the 800 MHz band. No additional change of use should therefore be considered for the remaining broadcast spectrum Broadcasting services should be afforded appropriate protection from interference Financial compensation to cover the migration costs to clear the 800 MHz band should be addressed Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 6
27 The analogue to digital switch-over. Ready by 013? Analogue switch-off completed; terrestrial platform converted to DVB-T : Andorra, Belgium (Flemish), Croatia, Denmark, Finland, Germany, Luxembourg the Netherlands, Norway, Slovenia, Sweden, Switzerland, Spain, Latvia, Estonia. Some still use 800 MHz band for DTT. Analogue switch-off underway; both analogue and DVB-T services available: Austria, Czech Republic, France, Greece, Italy, United Kingdom Both analogue and DVB-T services available; analogue switch-off has not begun. In some cases, the full DVB-T platform not yet launched: Albania, Belgium (Frenchspeaking), Hungary, Lithuania, Macedonia, Malta, Poland, Portugal, Slovakia Only analogue services available. DVB-T services may be available on a trial/pilot basis Plans to launch DVB-T services in 011: BiH, Bulgaria, Cyprus, Ireland, Romania, Serbia Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 7
28 Further contract and information Mr Lars Backlund Senior Vice President, Public and Regulatory Affairs Vice Chairman, Broadcast Networks Europe (BNE) Direct dial Mobile lars.backlund@teracom.se WEB sites: Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 8
29 Thank You Digital Terrestrial TV, The Swedish Experience, Vienna /LB page 9
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