Benefits of digital broadcasting - GSMA

Benefits of digital

broadcasting

A report for the

GSMA

January 2014

Plum Consulting, 88 Kingsway, London, WC2B 6AA, UK

T: +44(20) 7047 1919, plumconsulting.co.uk

Table of Contents

Executive Summary..................................................................................................................................1

1

1.1

1.2

Introduction .....................................................................................................................................3

Timing of benefits ......................................................................................................................4

Benefits considered in this report ..............................................................................................5

2.1

2.2

2.3

2.4

2.5

The benefits of DTT........................................................................................................................6

Digital strategy for broadcasters ...............................................................................................6

Benefits for the broadcasting industry.......................................................................................8

Consumer benefits ..................................................................................................................10

Wider benefits .........................................................................................................................11

Learning from practical experience .........................................................................................12

2

3

Costs of digital switchover ............................................................................................................14

3.1

Broadcast industry costs .........................................................................................................14

3.2

Consumers costs ....................................................................................................................15

3.3

Government costs ...................................................................................................................16

Appendix A: Glossary of Terms ..............................................................................................................17

? Plum, 2014

Executive Summary

There has been considerable discussion of the benefits of changing use of UHF spectrum for mobile

(i.e. the Digital Dividend) but discussion of the benefits for broadcasters from the transition to digital

technology is often neglected in political and regulatory debates, which tend to focus on the mobile

industry. This report addresses the benefits for the broadcasting industry of this transition which

include:

?

An increase in the capacity of broadcast transmission networks by improving spectrum efficiency

(i.e. more data can be transmitted per unit bandwidth)

?

Provision of better signal quality which increases robustness to interference and picture

degradation

?

The support of HD services and interactivity

?

A potential reduction in transmission network energy usage

?

The implementation of single frequency networks (SFNs) instead of the independent parallel

networks which are common in analogue broadcasting.

In addition:

?

The take-up of digital TV is likely to boost sales of TV sets and digital video recorders

?

Digital TV could lead to positive upstream benefits in terms of increased time spent watching TV

and greater demand for digital content

?

In a competitive multi-channel, multi-platform environment, DTT provides opportunities for

terrestrial broadcasters to address the challenges posed by pay TV operators and the Internet.

The consumer benefits arising from digital switchover are widely recognised, happen relatively quickly

and are primarily driven by increases in programming and quality. There are also broader benefits to

society of introducing digital TV including the potential to use digital broadcasting to narrow the digital

divide, reach unserved areas, and to provide e-government and other digital services.

The costs for the transition to digital broadcasting are substantial and most of these occur at the early

phases of digital switchover, particularly during DTT rollout and while transmissions are simulcast. So

while consumers will see immediate benefits, those for the broadcasting industry will take longer to

accrue.

Consumers can also face significant costs to make the transition to digital, especially those in lower

income groups or similar circumstances. Subsidy is usually required to ensure adoption within these

groups and a key role of government is to ensure that the finances and organisation of the transition to

digital broadcasting are well thought out and implemented with suitable governance.

In addition to covering the activities required for the transition to digital broadcasting and its benefits

and costs, we have also captured the following learning from our research interviews:

?

Government intervention and management is required to drive the digital switchover process. A

market-led approach alone is unlikely to meet universal coverage and timeframe objectives for

switch-off

?

Sufficient, safeguarded funding provides the foundation for long term planning and facilitates a

smooth transition

? Plum, 2014

1

?

An adequate simulcast period is necessary to facilitate DTT take-up and minimise consumer

disruption at analogue switch-off. This also provides time for regulators and industry to address

coverage and content-related issues

?

Consumer awareness, affordability of set-top boxes, broadcasters¡¯ costs and the future of local

TV could all cause delays and resolving them early requires engagement of all stakeholders.

Access to skilled resources and creating the environment for knowledge transfer were also cited in our

research as key enablers, especially for developing markets and again government plays a key role in

enabling these aspects.

? Plum, 2014

2

1

Introduction

There has been considerable discussion of the benefits of changing use of UHF spectrum for mobile

(i.e. the digital dividend) but discussion of the benefits for broadcasters from the transition to digital

technology are often neglected in political and regulatory debates, which focus on the mobile industry.

This report addresses the benefits for the broadcasting industry of this transition.

The value of digital terrestrial broadcasting to the broadcasting industry should not be underestimated.

It enables the use of better transmission standards and the delivery of a greater range of services,

which consumers are likely to value and which will generate medium to long term benefit for the

broadcasting industry.

The move to digital broadcasting is a complex and potentially long process, which directly involves

many stakeholders. These include government, policy makers, regulators, broadcasters and

consumers. It also impinges on many other industry players, such as content providers, service

providers, network operators, receiver manufacturers and equipment vendors. These players can be

segmented into three groups as shown in Figure 1-1.

Figure 1-1: Digital migration Key Stakeholders, Suppliers and Other interested parties

Other interested parties

Pay-TV

Operators

Content

Providers

Key Suppliers

Receiver

Manufacturers

Advertisers

Spectrum

Owners/Users

Key Stakeholders

Government

Site Regulator(s)

Owners

Digital

Broadcasters

Migration

Broadcaster(s) Equipment

Vendors

Public/

Consumer Groups

International

and Regional

Organisations

Retailers/

Installers

Network

Operators

Standards

Bodies

Mobile

Network Operators

? Plum, 2014

3

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download