Strategy of Terrestrial DTV Evolution in Czech Republic
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1 Strategy of Terrestrial DTV Evolution in Czech Republic František Smejkal Senior Regulatory Affairs Specialist Wroclaw
2 Agenda 1 České Radiokomunikace - introduction 2 TV Distribution platforms DTT position in CZ 3 CZ Strategy of DTT development Next steps TO DO 4 Certification of receivers / STB 2
3 Ceske Radiokomunikace Leader in the market of television and radio broadcasting Professional telecommunication services provider Provider of complex Data Centre services and ICT solutions 3
4 Ceske Radiokomunikace 330 employees Annual turnover 75 m Our own infrastructure 100% stakeholder 4
5 History and key milestones Establishment Fibre optic network construction completion TV digitization completion DVB-T2 pilot launch Joint-stock company Cloud Computing launch Data Centres launch DAB pilot launch 5
6 DTT provides Free to Air TV to ~60% households in CR 80,00% 70,00% 60,00% 58.0% 50,00% 40,00% 30,00% 28.1% 20,00% 10,00% 23.9% 0,00% Q2 08 Q3 08 Q1 09 Q2 09 Q3 09 Q1 10 Q2 10 Q3 10 Q1 11 Q2 11 Q3 11 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 ATV DTV CATV & IPTV SAT Source: Media Research 6
7 DTT type of reception Method of TV signal reception 69,20% 80,00% 70,00% 56% 57% ,00% 37% 28,70% 41% 50,00% 40,00% 30,00% 20,00% Set top box Tuner DVB-T/T2 in TV 2% 3% 2,10% Digi tuner in DVD 1% 1% Other 0,10% 10,00% 0,00% Source: Media Research 7 7
8 Penetration (% population) DTT Multiplexes The Coverage of multiplexes* The CZ population Daily average time (linear TV) 100% 90% 99,90% 99,60% 98,10% 95,10% 80% 70% 60% 50% 40% 30% 20% 10% 0% MUX1 MUX2 MUX3 MUX4 * The Population coverage % via DTT MUXes, source: ČTÚ (dvt.ctu.cz 7/2016). 8
9 No Free Capacity in Nationwide DTT Networks - ČRa MUX1 DVB-T, MPEG-2 MUX2 DVB-T, MPEG % 99.6% MUX1 DVB-T, MPEG-2 Regional network DVB-T, MPEG % 57% 9
10 TV broadcasting is facing a significant loss of the spectrum 30% of the existing TV spectrum will be allocated to mobile service Until 2011: TV Broadcasting (392 MHz) k. From 2012: TV 18% spectrum loss LTE TV Broadcasting (320 MHz) Originally TV, now LTE (72 MHz) k. Planned from (od 2021): TV Additional 30% spectrum loss LTE LTE TV Broadcasting (224 MHz) Today TV, in future LTE (96 MHz) Originally TV, now LTE (72 MHz) k. 10
11 The impact of the loss of 700 MHz to DTT coverage Up to 80% of citizens may lose TV reception in case of withdrawal of 700 MHz band without controlled transition to DVB-T2 MUX 1 (ČT/ČRa) Threatened 43.1% population MUX 2 (ČRa) 52.3% Threatened 52.3% population 43.1% MUX 3 (ČRa) Threatened 76.4% population MUX 4 (DB) Threatened 5.7% population 76.4% 5.7% LEGEND Population coverage by 700 MHz frequency spectrum 11
12 Milestones Strategy of DTT Development timeframe 2012 Formal Analog TV platform - switch-off (CZ) WRC initiate discussions of release 700 MHz for IMT Strategy of Radio Spectrum I (Auction /Digital dividend 1) WRC National discussion regarding Strategy of Radio Spectrum II (CZ) Regional DTT muxes development Auction of 800 MHz spectrum DD CZ Government approval of National Strategy of Radio Spectrum Tasks to prepare Strategy for DTT development and DAB pro CZ Radio Expert group for DTT Strategy preparation National Radio Spectrum Strategy 2016 CZ Government approval of Strategy of DTT Development (July 2016) Start of Strategy of DTT Development implementation Strategy of DTT development June
13 Milestones of DVB-T Transition to DVB-T Government decision July 2016 (Strategy of DTT development) Start of new transition networks for DVB-T2 (2 nationalwide, 1 regional), take off simulcast Start of certifikation proces EP Approvement 700 MHz Decision 2017 Necessarily Legal frame novel Nationalwide coverage fullfilment of transition networks DVB-T2 Final RS coordination Technical plan of transition (Government approvement) Nationalwide simulcast DVB-T/ DVB-T2 National plan for release of 700 MHz 2020 Implementation of Technical plan of Transition Upgrade to DTT base on DVB-T2/HEVC platform 700 MHz Release Switch off DVB-T and release of 700 MHz subband ( ) Output = 4 substition DTT networks; 1 or 2 new DTT networks 14
14 DTT Strategy key outcomes (1/2) Individual authorizations for 2 transitional DVB-T2 and 1 regional transitional network. 4Q/2016 launch of the transition process including start of construction of DVB-T2 transitional networks, legislation changes and information campaigns for households in. Completion of building transitional networks with coverage on existing MUX2 level is planned at the end of 2017 (26 main transmitters per network). Simultaneous transmission of existing DVB-T/MPEG-2 and new transitional DVB-T2/HEVC networks. The government set the 1st February 2021 as the day for termination of existing DVB-T networks operation and 700 MHz clearance. The Government will assess the market situation in 2020 in terms of the households DVB-T2 receivers penetration progress. The Government may extend the simulcast period up to June The switch over date may be influenced by the upcoming EC Decision on the use of UHF band in EU. 2 new nationwide and 1 regional (not nationwide) transition DVB-T2 networks should accommodate all content from existing four nationwide DVB-T networks and partly regional TV broadcasting. Awarded to ČRa, the Czech Television. 15
15 DTT Strategy key outcomes (2/2) 5 to 6 nationwide DTT networks are expected in CZ after a successful transition to DVB-T2. The international frequency spectrum coordination should be finalized by the end of The concrete Technical Transition Plan (TPP), will be prepared by June The total cost of the transition to DVB-T2/HEVC for the period is estimated at million CZK (32 to 39 million EUR). The estimated revenue of the entire process to the state budget (without the expected auction of 700 MHz band) is in the amount of 1166 million CZK (43 million EUR). In the case of including auction 700 MHz is then surplus impacts on the state budget in the amount of 4739 to 4915 million CZK (175 to 182 million EUR). All compensations related with DTT transition to DVB-T2 and 700 MHz band clearance are subject of Czech Antitrust Office (AO) and EC-DG Competition evaluation process. Ministry of Industry and Trade established Coordination Expert Group which will coordinate the implementation of the Strategy. CRa is a member of this group. The first meeting was held on 11 th August 2016, the next meeting is scheduled on 22 nd September
16 Transition to DVB-T2 / 700 MHz release Transition process assumption Today 1. DVB-T/MPEG-2 broadcasting (Four networks) 2. Transition networks DVB-T2/HEVC (Two networks) Retu ning Retu ning 3. DVB-T2/HEVC (5-6 networks) 700 MHz release for IMT Key assumptions for 700 MHz release: Governmental DTT strategy and DVB-T2 transition plan Immediate allocation of frequency spectrum for the transition DVB-T2 networks Ensure legal certainty in the use of MHz for TV broadcast Reimbursement costs related with the transition to DVB-T2 17
17 Enforced release 700 MHz shall not compromise DTT and allow non-market conditions change on the media market Risks and threats of transition proces: DTT churn changes in DTT position Reducing the competitiveness of DTT platform Forced changes in business contracts Forced costs of necessary changes in DTT networks Induced and superfluous expenses of network operators (and government) Substantial restrictions on regionalization Potential restrictions on DTT network capacity Limiting future development (innovation) Forced reduction of the DTT network investment cycle 18
18 DVB-T2/HEVC certification receivers/stb Minimum Requirements on the Receiving Equipment for Services in the DVB-T and DVB-T2 Networks 08/2016 update Trial broadcasting DVB-T2 / HEVC - Prague channel 50 Testing of DVB-T2 / HEVC receivers designed for the Czech Republic - the certification / award logo TV sets or set-top-boxes - compliance with DVB-T2/HEVC DVB-T2 logo for consumer guidance 19
19 Certification logo? The device is tested by an independent expert company At the time of the testing devices meets the parameters By 2020, the viewers do not deal with the exchange of TV/STB Responsibility for the future functionality - vendor Customer complaints solves seller The list of certified receivers will be published on = D-Book The aim - simplify the selection of the TV or STB for viewers 20
20 České Radiokomunikace Media, Telco & Cloud services
21 Backup
22 april 14 may 14 june 14 july 14 august 14 september 14 october 14 november 14 december 14 january 15 february 15 march 15 april 15 may 15 june 15 july 15 august 15 september 15 october 15 november 15 december 15 january 16 february 16 march 16 april 16 may 16 june 16 july 16 Number of LTE BT s / Number of complaints Development of the number of cases LTE x DVB-T interference (logarithmic scale) Received complaints on interference Number of interfering BTS s 800 MHz band BTS s in operation 1 Period There are over LTE BTS in trial operation and in permanent operation reaching theoretical coverage of 93,7%. 23
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