DATE REPORT NUMBER 1 September 2006 PTS-ER-2006:35 ISSN 1650-9862
FILE REFERENCE 05-12576
The use of radio spectrum following the switch-off of analogue terrestrial television broadcasting
Report on a Government assignment
The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Foreword
The Swedish Government has directed the National Post and Telecom Agency (PTS)1 to investigate which amount of spectrum can be released in conjunction with the switch-off of analogue terrestrial television broadcasting, and the areas of use for which it can be utilised. This assignment includes an illustration of the various consequences of alternative usage, among other things, the impact on existing and new frequency users, the opportunities to utilise investments made in infrastructure and the conditions for developing services and products for an international market.
This Government assignment also included a section relating to frequency planning for sound radio broadcasting on long-, medium- and short-wave bands. This part of the assignment is reported separately.2
This document PTS's report on the assignment and is hereby submitted to the Government.
Stockholm, 1 September 2006
Marianne Treschow Director-General
1 Assignment to investigate which amount of spectrum can be released in conjunction with the switch-off of analogue terrestrial television broadcasting and what this frequency scope can be used for (N2005/8208/ITFoU) 2 PTS, Investigation on frequency planning for sound radio broadcasting in the long-, medium- and short-wave bands, PTS-ER-2006:32
National Post and Telecom Agency
The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Contents Summary (in Swedish)...... 7 Summary (in English)...... 11 Abbreviations...... 15 1 Introduction...... 18 1.1 Implementation of the assignment ...... 18 1.2 Investigation of the release of spectrum...... 18 2 Background – television broadcasting and frequency usage ...... 20 2.1 Frequency usage in general...... 20 2.2 Television broadcasting in Sweden...... 20 2.3 Current television broadcasting...... 21 2.4 Technological convergence...... 24 3 The switchover to digital broadcasting and use of frequencies for terrestrial television...... 27 3.1 The switch-off of analogue television broadcasting ...... 27 3.2 Frequencies that are used for terrestrial broadcasting...... 28 3.3 Spectrum that is used for analogue terrestrial television ...... 29 3.3.1 Band I (47 – 68 MHz)...... 29 3.3.2 Band III (174 – 230 MHz)...... 29 3.3.3 Bands IV and V (470 – 862 MHz) ...... 30 3.4 Legislation on the use of radio transmitters, etc...... 30 3.5 Valuation of spectrum...... 31 4 International cooperation on matters regarding switchover to terrestrial digital television ...... 35 4.1 Work within ITU ...... 35 4.1.1 The World Radio Conference (WRC) ...... 35 4.1.2 ITU's planning of broadcasting frequencies...... 36 4.2 Cooperation within CEPT ...... 37 4.2.1 CEPT's planning of broadcasting frequencies ...... 37 4.3 Cooperation within the EU...... 37 4.3.1 EU's powers on matters regarding assignment of radio frequencies and television broadcasting...... 37 4.3.2 Work within the EU's Radio Spectrum Policy Group (RSPG)...... 41 4.3.3 The work of the Commission...... 43 4.3.4 The conclusions of the Council ...... 45 4.3.5 EU conclusions ...... 46 4.4 EBU ...... 46 4.5 The switchover to terrestrial digital television in Europe ...... 47 4.6 Countries outside Europe...... 48 5 Released spectrum − Technical preconditions ...... 49 5.1 Introduction...... 49 5.2 Some facts about radio use in the frequency bands involved...... 49 5.3 Technical study on release of spectrum...... 51 5.3.1 Description of radio systems in the technical study ...... 52 5.3.2 Assumptions used for the study...... 54 5.3.3 Methodology used for the study...... 56 5.3.4 Description of the results of the study...... 59 5.3.5 Conclusions of the technical study...... 66 5.4 The Geneva Agreement 2006 (GE06) and technical preconditions ...... 67 5.5 Summary ...... 68 6 Study of value of conceivable areas of use ...... 70 6.1 Methodology ...... 70
National Post and Telecom Agency 5 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
6.1.1 Scenarios...... 70 6.1.2 Service description, revenue potential and investments...... 71 6.1.3 Market effects ...... 71 6.1.4 Social effects ...... 72 6.1.5 Spectrum available...... 72 6.2 Economic evaluation...... 73 6.2.1 More SDTV programmes in terrestrial digital television – 'more SDTV' ...... 74 6.2.2 HDTV in terrestrial digital television ...... 75 6.2.3 Mobile television...... 77 6.2.4 FWA – wireless broadband for fixed reception ...... 80 6.2.5 Mobile broadband/mobile telephony ...... 84 6.2.6 Outline revenue potential and investment costs for all areas of application ...... 85 6.2.7 Outline of market effects for all areas of application ...... 86 6.3 Social benefit of released spectrum...... 87 6.4 Conclusions of the study...... 88 7 Conclusions...... 89 7.1 Spectrum that can be used when analogue television broadcasting is switched off ...... 89 7.2 Possible services in the spectrum after the switch-off of analogue television broadcasting ...... 91 7.2.1 More SDTV programmes in terrestrial digital television – 'more SDTV' ...... 91 7.2.2 HDTV in terrestrial digital television ...... 92 7.2.3 Mobile television...... 92 7.2.4 FWA – wireless broadband for fixed reception ...... 93 7.2.5 Mobile broadband/mobile telephony ...... 93 7.2.6 Other usage...... 94 7.3 Summary of conclusions...... 95 7.3.1 Spectrum has a value...... 95 7.3.2 The importance of international cooperation...... 95 7.3.3 Future technological development ...... 96 8 Sources ...... 99 8.1 Consultative reports prepared within the framework of the assignment...... 99 8.2 Swedish public publications...... 99 8.3 Material from the EU...... 100 8.4 Literature...... 101 APPENDICES...... 103
6 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Summary (in Swedish) Riksdagen har beslutat att den marksända televisionen helt ska övergå till digital teknik. De analoga markbundna TV-sändningarna släcks ned i etapper och ska ha upphört helt den 1 februari 2008. Då digital teknik är väsentligt mer frekvenseffektiv än analog teknik kan frekvensutrymme frigöras vid nedsläckningen av de analoga sändningarna.
De frekvensband som är behandlas i rapporten är:
Frekvensområde Benämning Mängd (MHz) frekvensutrymme (MHz)
47 – 68 Band I 21 174 – 230 Band III 56 470 – 862 Band IV/V 392 Band I (47 – 68 MHz) kommer efter nedsläckningen av de analoga TV- sändningarna inte att användas för TV eller annan rundradio.
Band III (174 – 230 MHz) kommer efter nedsläckningen av de analoga TV- sändningarna inte att användas för TV-utsändningar.
Band IV och V (470 – 862 MHz) används för fem driftsatta DVB-T-nät för marksänd digital-TV.
PTS slutsatser
• Minst 189 MHz kan frigöras genom nedsläckningen av de analoga TV-sändningarna.
• Det finns en stor dold resurs i återanvändbart frekvensutrymme - både utnyttjandemässigt och ekonomiskt.
• Det finns ett flertal realistiska alternativ till användning av band I, III, IV och V efter nedsläckningen av de analoga TV-sändningarna.
• Frekvensutrymme har ett stort ekonomiskt och samhälleligt värde.
• Internationell samordning har ett mycket stort värde.
• Framtida teknikutveckling bör inte förhindras genom beslut idag.
• Det måste övervägas om frekvensutrymme som tidigare nyttjats för utsändning av rundradio och TV kan användas på andra sätt som medför ett ökat värde för samhället och konsumenterna.
Radiofrekvenser är en begränsad resurs som bör användas på ett så effektivt sätt som möjligt och så att den samhälleliga nyttan av användningen blir så stor som möjligt. PTS anser att teknik- och tjänsteneutrala tillstånd, vilka ger
National Post and Telecom Agency 7 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
tillståndshavarna möjlighet att anpassa sig till den pågående teknikutvecklingen och marknadens efterfrågan, bör vara en vägledande princip vid tilldelning av tillstånd för användning av radiofrekvenser.
I band I (47 – 68 MHz) kan frigöras 21 MHz för nya system efter nedsläckningen av de analoga TV-sändningarna. PTS bedömer att det kommersiella intresset för att använda band I är litet. Däremot har Försvarsmakten uttryckt intresse för bandet. Intresse finns även från radioamatörer.
I band III (174 – 230 MHz) finns det efter Internationella Teleunionens regionala radiokommunikationskonferens i Genève 2006 (RRC-06) internationellt koordinerat utrymme för ett rikstäckande och tre regionala T-DAB-nät samt ett rikstäckande DVB-T-nät. Regeringen har beslutat att inte vidare bygga ut den digitala ljudradion i Sverige. Band III, d.v.s. 56 MHz, skulle därför i dess helhet kunna användas för nya system.
Försvarsmakten har till PTS uttryckt intresse för att använda frekvensbandet 230 – 240 MHz, som inte ingår i band III men som kan påverkas av eventuella framtida beslut om utbyggnad av digital ljudradio (T-DAB).
I band IV och V (470 – 862 MHz) finns det efter RRC-06 internationellt koordinerat utrymme för sju rikstäckande DVB-T-nät. För närvarande finns det fem DVB-T-nät för marksänd digital-TV i band IV och V. Kvar finns då frekvensutrymme motsvarande två rikstäckande internationellt koordinerade DVB-T-nät, d.v.s. 112 MHz.
Frekvenskanaler som är planerade för marksänd digital-TV men där någon sändare inte finns i ett visst geografiskt område utsätts för viss störning från angränsande kanaler. Dessa frekvenskanaler skulle dock kunna återanvändas för andra tillämpningar, under förutsättning att tekniska kriterier för samexistens kan fastställas (s.k. återanvändbart frekvensutrymme).
PTS uppskattar att det återanvändbara frekvensutrymmet kan uppgå till så mycket som 200 MHz.
Frekvensutrymmet i band III, IV och V kan efter nedsläckningen av de analoga TV-sändningarna användas för flera olika slags tjänster.
1. Fler SDTV-program (TV i standardupplösning) i marksänd digital-TV
2. HDTV (TV i högupplösning) i marksänd digital-TV
3. Mobil-TV
4. FWA – trådlöst bredband för fast mottagning
5. Mobilt bredband/mobiltelefoni.
Utöver de ovan angivna tjänsterna kan även andra tillämpningsområden tänkas i band I, III, IV och V. Det kan röra sig om digital ljudradio, lågeffektutrustning som kan användas utan tillståndsplikt samt militära system.
8 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Av utfallet från RRC-06 följer att det i Sverige kan byggas ut högst två nya rikstäckande DVB-T-nät i band IV och V utöver redan befintliga fem DVB-T-nät. Två DVB-T-nät möjliggör upp till 14 SDTV-program i MPEG-2- komprimeringsformat.
HDTV är en utveckling av SDTV som förbättrar användarupplevelsen genom ökad kvalitet (högre upplösning) på TV-bilden. Enligt PTS uppfattning förutsätter HDTV i marksänd digital-TV att MPEG-4-komprimering används.
Mobil-TV innebär TV-mottagning i en bärbar terminal, i de flesta fall någon form av mobiltelefon. Mobil-TV-tjänster kan realiseras med flera olika tekniska lösningar varav några, exempelvis DVB-H och den besläktade tekniken MediaFLO, huvudsakligen är avsedda att användas i band III, IV och V medan andra, däribland MBMS, huvudsakligen är avsedda att användas i de frekvensband som används för mobiltelefoni. En utbyggnad av rikstäckande DVB-H-nät (eller liknande system) i band III, IV och V förutsätter att internationellt koordinerat frekvensutrymme tas i anspråk. Det innebär att DVB-H-näten konkurrerar med en eventuell framtida utbyggnad av DVB-T (SDTV eller HDTV) om frekvensutrymme. PTS utredning visar dock att MBMS-liknande system i band III, IV och V skulle kunna ha goda förutsättningar att samexistera med DVB-T- nät och därför vara ett frekvenseffektivt alternativ.
Teoretiska FWA-system (trådlöst bredband för fast mottagning) skulle enligt PTS analys kunna ha goda möjligheter att samexistera med befintliga och framtida DVB-T-nät i återanvändbara frekvenser. Band III, IV och V har vågutbrednings- egenskaper som gör att utbyggnad av FWA i dessa band skulle kunna bli kostnadsmässigt attraktiv.
En grundläggande begränsning när det gäller att använda band III, IV och V för mobilt bredband/mobiltelefoni är att the uplink (förbindelsen från terminalen till basstationen) inte ryms inom den frekvensplanering som antagits vid RRC-06. PTS bedömer dessutom att de kommersiella möjligheterna för en tillkommande aktör som erbjuder mobilt bredband kan vara begränsade i Sverige.
PTS uppfattning är att beslut om användning av frekvensutrymme bör föregås av noggranna utredningar om hur frekvensutrymmet kan fördelas på ett sätt som tillför samhället det största värdet. Flera kommersiella aktörer kan ha intresse av att betala stora belopp i auktioner för att få tillgång till frekvensutrymme. Ett annat sätt att värdera frekvensutrymme är att beräkna den samhällsnytta som radioanvändningen i frekvensutrymmet skapar. PTS uppfattning är att det går att uppnå stora vinster för samhället med en mer effektiv och flexibel resursanvändning av frekvensutrymme. Dessa vinster kan enligt PTS bedömning i huvudsak väntas tillfalla konsumenter och andra användare genom sänkta priser för och ett ökat utbud av elektroniska kommunikationstjänster.
EU-kommissionen har inriktat sig på möjligheterna att frigöra frekvensutrymme på ett samordnat sätt inom EU. På det sättet anser kommissionen att det största ekonomiska värdet av the switchover kan realiseras, eftersom det europeiska näringslivet då får möjlighet att utveckla varor och tjänster för en gemensam marknad och inte för skilda nationella marknader.
National Post and Telecom Agency 9 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
PTS anser att det vore av stort värde om de europeiska länderna samordnat kan komma överens om hur hela eller delar av det frekvensutrymme som frigörs i och med nedsläckningen av de analoga TV-sändningarna ska användas. Därför bör Sverige, enligt PTS mening, inte fatta i praktiken oåterkalleliga beslut om användning av frekvensutrymme i band III, IV och V innan de europeiska länderna fattat ett gemensamt beslut i frågan.
Ett beslut att ta i anspråk tillgängligt frekvensutrymme i band IV och V för ytterligare två rikstäckande DVB-T-nät medför att frekvensutrymmet för överskådlig tid framåt ”låses upp” på ett sätt som inte medger användning av eventuell framtida utvecklad teknik. Ett sådant beslut skulle bl.a. kunna kraftigt försvåra kommande övergång från MPEG-2-komprimering till MPEG-4- komprimering i näten för marksänd digital-TV.
PTS anser att det måste övervägas om andra användningar, t.ex. de som redovisas i denna rapport, kan tillföra samhället och konsumenterna ett större värde än vad användning för ytterligare TV-tjänster skulle göra. Öppna förfaranden för tilldelning av tillstånd för användning av frekvensutrymme med villkor som är teknik- och tjänsteneutrala skulle, enligt PTS uppfattning, ge bäst förutsättningar för ett effektivt utnyttjande av frekvensutrymmet och även kunna medföra positiva effekter i form av möjlighet till teknikutveckling och/eller ekonomisk utveckling för landet.
10 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Summary (in English) The Riksdag (Swedish Parliament) has decided that terrestrial television should switch over completely to digital technology. The analogue terrestrial television broadcasting is being switched off in stages and will have ceased completely on 1 February 2008. As digital technology is significantly more frequency efficient than analogue technology, spectrum can be released upon the switch-off of the analogue broadcasting.
The frequency bands dealt in this report are:
Frequency band Designation Size of spectrum (MHz) (MHz)
47 – 68 Band I 21 174 – 230 Band III 56 470 – 862 Band IV/V 392 Band I (47 – 68 MHz) will not be used for television or other broadcasting following the switch-off of analogue television broadcasting.
Band III (174 – 230 MHz) will not be used for television broadcasting following the switch-off of analogue television broadcasting.
Bands IV and V (470 – 862 MHz) are used for the five operational DVB-T networks for digital terrestrial television.
PTS’s conclusions
• At least 189 MHz can be released through the switch-off of analogue television broadcasting.
• There is a large hidden resource in reusable spectrum – regarding both usage and financially.
• There are several realistic alternatives to the use of bands I, III, IV and V following the switch-off of the analogue television broadcasting.
• Spectrum has substantial financial and social value.
• International coordination has very great value.
• Future technological development should not be prevented through a decision today.
• Deliberations must be conducted concerning whether the spectrum, which has been previously used for broadcasting radio and television, can be used in other ways that provide increased value for society and the consumer.
Radio frequencies are a limited resource and should be used in the most efficient manner possible so that the benefit to society from the usage is the greatest possible. PTS considers that technology- and service-neutral licences, which
National Post and Telecom Agency 11 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
provide licence hiolders with the opportunity to adapt to the ongoing development of technology and demand in the market, should be a guiding principle when allocating licences for the use of radio frequencies.
Within the band I (47 – 68 MHz), 21 MHz can be released for new systems after switch-off of the analogue television broadcasting. PTS considers that there is little commercial interest in the use of band I. However, the Swedish Armed Forces have expressed an interest in this band. There is also an interest from amateur radio users.
According to the outcome of the International Telecommunication Union’s Regional Radio Communication Conference (RRC-06) in Geneva in 2006, there is internationally coordinated spectrum within band III (174 – 230 MHz) for one nationwide and three regional T-DAB networks, and one nationwide DVB-T network. The Government has decided not to further extend digital sound broadcasting in Sweden. Band III, i.e. 56 MHz, would therefore be entirely available for new systems.
The Swedish Armed Forces have expressed to PTS their interest in the use of the frequency band 230 – 240 MHz, which forms part of Band III, but which may be affected by possible future decisions on the development of digital sound broadcasting (T-DAB).
According to the RRC-06, there is coordinated spectrum in bands IV and V (470 – 862 MHz) for seven nationwide DVB-T networks. Currently there are five DVB-T networks for digital terrestrial television in bands IV and V. There will then be spectrum corresponding to two nationwide internationally coordinated DVB-T networks, i.e. 112 MHz, remaining.
The frequency channels that are planned for digital terrestrial television, but where there is no transmitter in a particular geographical area, are subject to some interference from neighbouring channels. However, these frequency channels could possibly be reused for other applications, subject to the precondition that technical criteria for coexistence can be established (reusable spectrum).
PTS estimates that the reusable spectrum can amount to as much as 200 MHz.
The spectrum in bands III, IV and V can, following the switch-off of analogue television broadcasting, be used for several different kinds of services.
1. More SDTV programmes (television in standard definition) in terrestrial digital television
2. HDTV (television in higher definition) in digital terrestrial television
3. Mobile television
4. FWA – wireless broadband for fixed reception
5. Mobile broadband/mobile telephony.
12 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
In addition to the above-mentioned services, other areas of application may be contemplated within bands I, III, IV and V. These may involve digital sound broadcasting, low-power transmitters, which can be used without a licence, and military systems.
It follows from the outcome of RRC-06 that in Sweden a maximum of two new nationwide DVB-T networks in bands IV and V can be built, in addition to the five pre-existing DVB-T networks. Two DVB-T networks allow up to 14 SDTV programmes in MPEG-2 compressed format.
HDTV is a development of SDTV that improves the user experience by increased quality (higher definition) of the television picture. In the opinion of PTS, HDTV in digital terrestrial television requires the use of MPEG-4 compression.
Mobile television involves television reception in a portable terminal, in most cases some form of mobile telephone. Mobile television services can be realised with several different technical solutions of which some, for example DVB-H and the related technology MediaFLO, are mainly intended to be used in bands III, IV and V, while others, including MBMS, are mainly intended to be used in the frequency bands that are used for mobile telephony. A precondition for the development of a nationwide DVB-H network (or similar system) in bands III, IV and V is that internationally coordinated spectrum is utilised. This means that DVB-H networks compete with the possible future development of DVB-T (SDTV or HDTV) for spectrum. However, PTS’s investigation shows that systems resembling MBMS in bands III, IV and V may have good prospects of coexisting with DVB-T networks and therefore be a frequency efficient alternative.
Theoretical FWA systems (wireless broadband for fixed reception) would, according to PTS’s analysis, potentially have good possibilities of coexisting with existing and future DVB-T networks in reusable frequencies. Bands III, IV and V have propagation qualities that make the development of FWA in these bands potentially attractive from a cost perspective.
A fundamental limitation affecting the use of bands III, IV and V for mobile broadband/mobile telephony is that the uplink (the link from the terminal to the base station) is not covered by the frequency planning adopted at RRC-06. PTS also considers that the commercial opportunities for an additional stakeholder who offers mobile broadband may be limited in Sweden.
PTS’s opinion is that a decision on the use of spectrum should be preceded by careful investigations about how the spectrum can be allocated in a way that provides society with the greatest value. Several commercial stakeholders may be interested in paying large amounts at auctions to gain access to spectrum. Another way to value spectrum is to calculate the public benefit that radio usage in the spectrum creates. PTS’s opinion is that it is possible to achieve great benefits for society with more efficient and flexible use of spectrum resources. These gains can, in the view of PTS, mainly be expected to benefit consumers and other users through reduced prices for, and an increased range of, electronic communications services.
National Post and Telecom Agency 13 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
The EU Commission focuses on the possibilities of releasing spectrum in a coordinated way within the EU. In this way the Commission considers that the greatest economic value from the switchover can be realised, as European business will then have the opportunity of developing goods and services for a common market and not for separate national markets.
PTS considers that it would be of great value if the European countries can through coordination reach agreement on how the entire or parts of the spectrum that is released as of the switch-off of analogue television broadcasting shall be used. Therefore, Sweden should, in the opinion of PTS, not make decisions regarding the use of spectrum in the bands III, IV and V which in practice would be irrevocable before the European countries have made a joint decision on the matter.
A decision to reserve available spectrum in bands IV and V for two further nationwide DVB-T networks means that the spectrum would for the foreseeable future be “tied” in a way that would not allow the use of any future technology developed. Such a decision would, among other things, possibly severely impair future switchover from MPEG-2 compression to MPEG-4 compression in the network for digital terrestrial television.
PTS is of the view that it must be considered whether other applications, for example those described in this report, can bring greater value to society and the consumer, than the usage for more television services can. Open procedures for the assignment of licences for the use of spectrum with conditions that are technology- and service neutral would, in the opinion of PTS, provide the best preconditions for the efficient utilisation of the spectrum and also possibly bring with them positive effects in the form of opportunities for technology development and/or economic growth for Sweden.
14 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Abbreviations
C/N Carrier to Noise ratio
CEPT Conférence Européenne des Administrations des Postes et Télécommunications, the European association of postal and telecommunications agencies
DAB-IP technology that uses IP for the transmission of multimedia services in T-DAB networks
DVB-H Digital Video Broadcasting – Handheld, a standard for terrestrial digital TV for mobile reception
DVB-T Digital Video Broadcasting – Terrestrial, a standard for terrestrial digital TV for fixed reception
EDGE EDGE: Enhanced Data Rate for GSM Evolution, technology that enhances data capacity in GSM
ETSI European Telecommunications Standards Institute, the European standardisation body for radio and telecommunications
FWA Fixed Wireless Access, wireless broadband for fixed reception
GE06 Geneva Agreement 2006 on the planning of broadcasting frequencies in Europe among others
GSM Global System for Mobile Telephony, a standard for digital mobile telephony
HDTV High Definition Television, standard for broadcasting television in high definition
IP Internet Protocol
IPTV Transmission of television through IP-based data communication
ITU International Telecommunication Union
MBMS Mobile Broadcast/Multicast Service, technology that offers, among other things, broadcasting services in mobile telephone networks
MPEG Moving Pictures Experts Group. MPEG-2 and MPEG-4 is compressed formats for digital video transmission
MFN Multiple Frequency Network, a network with several transmitters that use different frequencies
National Post and Telecom Agency 15 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
OFDM Orthogonal Frequency Division Multiplexing, a modulation technology for radio broadcasting
PTS The Swedish National Post and Telecom Agency
RRC Regional Radio Conference, ITU's regional radio conference
SAS Subscriber Authorization System, system for access control (encryption) of digital TV
SDTV Standard Definition Television, standard for broadcasting television in normal definition
SFN Single Frequency Network, a network with several transmitters that use the same frequency
SMS Subscriber Management System, system for relationship with end- users, which includes, for example, customer services and payment routines
SR Sveriges Radio (Swedish Broadcasting Corporation)
SVT Sveriges Television
T-DAB Terrestrial Digital Audio Broadcasting, a standard for transmitting terrestrial digital sound broadcasting
T-DMB Terrestrial Digital Multimedia Broadcasting, technology that uses T-DAB for the transmission of multimedia (for example television content)
UMTS Universal Mobile Telecommunication System, a standard for mobile telephony that also includes, among other things, data communication. Sometimes called 3G, i.e. the third generation mobile telephony
UR Swedish Educational Broadcasting Company
WCDMA Wideband Code Division Multiple Access, a modulation technology for radio
WiMAX Worldwide Interoperability for Microwave Access, a compilation of standards based on OFDM technology that can be used to offer wireless broadband services
WLAN Wireless Local Area Network, wireless local network for data communications
WRC World Radio Conference, ITU's world radio conferences
16 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
xDSL Digital Subscriber Line, for example ADSL or VDSL, technology for digital broadband communication over copper-based access networks
National Post and Telecom Agency 17 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
1 Introduction
1.1 Implementation of the assignment PTS has conducted this assignment in the form of a project, with Jonas Wessel, and subsequently My Bergdahl, as project leaders. Other participants from PTS who contributed to the project were Per G Andersson, Maria Aust, Peter Ekstedt, Sally Ibrahim, Joakim Persson and Stefan Uppgård. PTS arranged a number of consultancy studies as a basis for the report. During the course of the project, these consultancy studies have been published on PTS's website for comments. Appendix 1 includes a summary of the comments that have been received during the consultancy studies.
This assignment has been accomplished in cooperation with the Radio and TV Authority, the Swedish Competition Authority and Swedish Armed Forces. Following an initial meeting, the Swedish Emergency Management Agency and the Swedish Rescue Services Agency declined further participation in the consultative group.
PTS arranged a seminar on 9 February 2006 within the framework of the implementation of this assignment to allow interested parties to express their views and to look at the present issue from different perspectives. Presentations from this seminar are available on PTS's website.3
1.2 Investigation of the release of spectrum A fundamental issue is the way in which spectrum may be said to be released as of the switch-off of analogue television broadcasting. Digital television broadcasting uses less spectrum than analogue television broadcasting for equivalent programme content. Digital broadcasts with one nationwide DVB-T network are sufficient for programme content that was previously broadcast nationwide in analogue television (i.e. SVT1, SVT2 and also TV4), which would mean the release of a substantial quantity of spectrum. However, large parts of this spectrum have already been reserved through the development of the existing five DVB-T networks. Consequently, the issue involves what the remaining spectrum – which need not necessarily be regarded as 'released' – can be used for.
Nor can the question of what spectrum can be released be answered without an investigation into the various kinds of areas of use for this spectrum. For radio technical reasons, certain systems have a better capacity than others to coexist with existing or planned digital television networks, both in Sweden and abroad. It is consequently not possible to state that particular spectrum will be released without discussing the systems that could conceivably be used. Of great importance is whether the systems (networks) are developed in a way that is traditionally used for broadcasting networks, namely with high power transmitters
3 http://www.pts.se/Sidor/sida.asp?SectionId=2962
18 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
on high masts, which cover a large area. Such networks actually have a great potential to interfere with the radio reception of other radio systems.
Furthermore, the frequencies that are released will in most cases be split up on a regional basis, that is to say different channels will be released in different geographical areas and not a nationwide frequency band.
Finally, it should be observed that certain kinds of radio usage are feasible in channels that are not 'released', i.e. channels that are planned for terrestrial digital television, but where a particular geographical area does not have a transmitter. Here, this involves radio use with low power, which is consequently geographically limited. These frequencies are referred to as reusable spectrum in this report.
The following investigation takes into consideration the above-mentioned factors, both regarding the technical results and the alternative areas of use discussed.
National Post and Telecom Agency 19 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
2 Background – television broadcasting and frequency usage
2.1 Frequency usage in general The different radio communications services have been assigned a defined frequency band by agreements or regulations. The suitability of the various parts of the radio spectrum varies for the different radio applications owing to, for example, the frequency dependent dispersal properties of the radio waves, the technology available at the time, the bandwidth necessary for the transmissions, and industry policy considerations. The development of technology facilitates the use of higher frequency bands, but the radio spectrum is still regarded as a limited natural resource. In many cases, the demand for usable frequency bands exceeds supply and use is regulated, for example, by international agreements. Such agreements are concluded by, among others, the International Telecommunication Union (ITU) and the European association of regulatory authorities for postal and telecommunications (CEPT).
The fact that frequencies are available does not mean that it is technically or financially possible to use them. The use of frequencies only becomes attractive when there is reliable and affordable technology. The international frequency plans provide a gauge of how technological developments have made increasingly high frequencies usable.
Frequency plan Upper frequency limit
1912 1 MHz 1927 23 MHz 1938 200 MHz 1947 10.5 GHz 1959 40 GHz 1979 275 GHz
Table 1: The highest frequencies that are regulated in the international frequency plans4
New services based on new technology also generally tend to be assigned increasingly higher frequency bands, as it is often technically, financially and politically difficult to vacate existing users from the lower frequency bands.
2.2 Television broadcasting in Sweden The basic patent for television was applied for during the 1920s and technology became practically usable during the 1930s. Television broadcasting officially started in Sweden on 4 September 1956, which compared to other European
4 Wormbs, Nina, Genom tråd och eter: Framväxten av distributionsnätet för radio och TV. [Through wire and ether. Emergence of distribution networks for radio and TV] Stiftelsen Etermedierna i Sverige/Swedish Ether Media Foundation, Stockholm 1997
20 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
countries was relatively late. The development of the transmitter network proceeded very rapidly, as did the growth in sales of television receivers, and 80% of the population was able to receive television broadcasts after ten years. The network was extended by high power transmitters on approximately 300m high masts ('main stations') and gap filler transmitters (i.e. supplementary transmitters with less of a coverage area) so that a minimum number of transmitters cover as much of the Swedish population as possible. The second nationwide TV channel, TV2, commenced operations in 1969 and regular colour television broadcasting started in 1970.
The 'Stockholm Agreement', which was adopted in 1961, regulated the frequency use for terrestrial television broadcasting in Europe until 2006 (see also Section 4.1.2.1).
From 1956, when regular television broadcasting started, broadcasts were entirely controlled by government undertakings (now Sveriges Television), which provided television as a public service ('public service television'). By the end of the 1970s, technical developments made it possible for the public to receive television by satellite (parabolic/dish antennae) and cable and this gradually led towards a system providing both commercial television and public service television. By the beginning of the 1980s, it became possible to receive television broadcasting from Europe via satellite and in 1983 the first cable television networks were started. In 1987, the privately owned TV3 channel started to broadcast Swedish language programmes via satellite from abroad and thereby broke Sveriges Television's monopoly on Swedish language transmissions. Nordisk Television AB (now TV4) started to broadcast via satellite in 1990 and was granted a franchise for the first advertising funded terrestrial broadcasts in Sweden in 1991. The new analogue terrestrial network for TV4's broadcasts was developed over a period of two years.
In 1995, trials were initiated with terrestrial digital television. Frequency coordination was started for four DVB-T networks5 and in 1997 the Riksdag (Swedish Parliament) decided that digital broadcasts should be introduced in Sweden starting from 1999. The fifth DVB-T network was put into operation during 2003 and the Riksdag decided that analogue television broadcasting should cease in 2008.6 The switch-off of analogue television broadcasting started during 2005 (see also Section 3.1).
2.3 Current television broadcasting There are currently four different distribution platforms for television content in Sweden: the terrestrial networks, satellite, cable television and IP-based TV7 via broadband networks.
5 DVB-T: Digital Video Broadcasting – Terrestrial, a standard for terrestrial digital TV for fixed reception 6 Government Bill 2002/03:72, Report 2002/03:KU33, Riksdag Communication. 2002/03:196 7 IP: Internet Protocol
National Post and Telecom Agency 21 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Proportion of Of which digital households
Cable TV 50% ~10% Terrestrial 30% 43% Satellite 20% 100% IPTV ? 100%
Table 2: Proportion of households with different platforms and proportion with digital reception8
Just over four million households have access to television reception in Sweden. Television programmes are received from transmissions in the terrestrial network (30 per cent), through cable television networks (50 per cent) or through transmissions via satellite (20 per cent).9
Cable television is most common in urban areas, primarily in apartment blocks. Terrestrial broadcasting and satellite television are primarily found in sparsely populated areas and in detached houses. The development of IPTV10 has accelerated over recent years and there are now a number of offers directed to the consumer. The number of households using IPTV is still very limited, but IPTV is expected to grow in pace with accessibility to broadband networks.
Only free television channels (SVT and TV 4) are broadcast in the analogue terrestrial network. The analogue terrestrial network is operated by Teracom which mainly owns the infrastructure (masts and transmitters). The digital terrestrial network also has pay television channels and the end-user subscribes for these via Boxer TV Access. In cable television networks, stakeholders such as Comhem and Tele2 Vision provide television services (both analogue and digital). The cable television companies are, through legislation imposing a 'must carry' obligation, required to provide a number of free television channels at no charge to the consumer (basically SVT and TV4). Canal Digital and Viasat provide digital pay television broadcasting via satellite. Stakeholders within IPTV include TeliaSonera and Bredbandsbolaget.
Mobile television provides an opportunity to watch television using small portable receivers. Moving images can be transmitted to mobile terminals in several different ways. This may for instance involve broadcasting, i.e. broadcasts of the same programme from one transmitter to several receivers, or 'unicast', i.e. broadcasts from one transmitter to one or a limited number of receivers.
8 Radio and TV Authority, Media Trends 2006, p. 9 9 Ibid., p. 9. 10 IPTV: Transmission of television through IP-based data communication
22 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
In the present situation, it is primarily the UMTS terminals11 which are used as mobile television receivers and the programmes are transferred through unicast via the existing mobile telephony network. However, there are several technologies (for example terrestrial DVB-H, MBMS, T-DMB and MediaFLO) that facilitate mobile television through broadcasting technology. Developments in this area are progressing very rapidly.12
TV continues to be one of our most popular and most consumed mass medias, even though a reduction in the average user time of television media can be discerned in media surveys over the long term, see Tables 3 and 4.
1980 1985 1990 1995 2000 2005
Television 79 76 79 84 88 86 Radio 69 73 78 80 80 74 CD/records 24 22 18 31 37 35 DVD/Video 1 7 6 16 15 15 Internet - - - - 32 42 Morning newspapers 74 75 74 71 74 73 Evening newspapers 40 33 32 27 28 31 Books 29 31 34 44 39 38
Table 3: Proportion of the population aged 9-79 using different mass media on an average day 1980-2005, per cent13
1980 1985 1990 1995 2000 2005
Television 118 105 106 98 105 96 Radio 115 131 126 114 129 105 CD/records 16 17 14 20 24 20 DVD/Video 1 6 5 10 10 12 Internet - - - - 21 32 Morning newspapers 24 23 22 22 23 21 Evening newspapers 12 11 9 7 8 8 Books 19 21 20 28 23 21
Table 4: User time for mass media for the entire population aged 9-79 on an average day 1980-2005, minutes14
11 UMTS: Universal Mobile Telecommunications System, a standard for mobile telephony that also includes, among other things, data communication. Sometimes called 3G, i.e. the third generation mobile telephony. 12 Radio and TV Authority, Media Trends 2006, p.9 13 Nordicom, MedieNotiser 1/2006 14 Ibid.
National Post and Telecom Agency 23 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
In recent decades, the number of channels has increased dramatically; at the same time, total television viewing time has remained relatively constant. Viewing time has thus been spread over several channels and the market shares of the channels have decreased. Consumer interest and the preparedness to pay for more channels could therefore possibly be interpreted to represent a demand for increased choice in television viewing. Other trends, such as the increased use of the Internet and DVDs/videos, also suggest increased individualisation of media consumption and an interest in more tailor-made services; a factor that could possibly prove to be an argument against broadcasting solutions in the long term, as this could be claimed to be an inefficient use of the frequency if the number of simultaneous users is too low.
It ought to be added that at the same time as the situation has changed from almost 100 per cent of households receiving terrestrial television to the current situation, where 30 per cent of households receive broadcasts in the same way, the demand for frequencies has increased dramatically for other new services, primarily mobile communications.
2.4 Technological convergence The development of IT has, over recent decades, resulted in what we generally term 'convergence', with digitalised information that is distributed in packet switched networks (primarily IP) and that can be processed by increasingly intelligent and powerful terminals. This development means that previously clear differences between the various services, networks and terminals are becoming blurred. Technological development combined with the deregulation of the telecommunications market has resulted in the markets converging for, for instance, telephony, data communications and television.
[Text from diagram: Services (example) TV Internet access Telephony TV Internet access Telephony Network Convergence Terminals] Figure 1: Conceptual model of convergence; developments are moving from specialised networks and terminals for different services towards a more complex and flexible situation
24 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Network convergence means that the various traditional separate infrastructures for different kinds of information transfer are increasingly merging and can consequently carry each other's services. For example, both television and broadband services can currently be supplied via the copper access telephony network (with xDSL15). Terminal convergence means that terminals or apparatus that were traditionally used for different kinds of services are merging and can be used for the reception and use of several services that were previously separate. Many 3G telephones, for example, enable you to access the Internet, send emails, watch videos, listen to music or the radio, take photographs and much more in addition to making calls.
The services that are offered through different infrastructures can in a simplified way be divided into two categories: communications services and content services. In this context, 'communications services' mean services that transfer information between users, for example traditional telephony, mobile telephony, messaging services, such as email and SMS, fax and videoconferencing. Content services, or as they are also known information services, mean that someone provides or relays content that others can gain access to, for example, sound broadcasting, television, video, music, information databases and websites. Broadcasting networks have been developed for one-way communication from one transmitter to many receivers, and are thereby more suited to content services. Networks that facilitate two-way communication can be used for both communications and content services. However, broadcasting is a frequency-efficient transmission method for those content services that many users within an area wish to access simultaneously (or almost simultaneously, as modern terminals can often store content).
The combination of digitalised services, packet switched networks and intelligent terminals with storage capacity mean that it is becoming increasingly difficult to delimit broadcasting services from other services, for example mobile broadband. As these services constitute the transfer of digital bitstreams, the content becomes irrelevant from a network perspective, as speech, video and data can be transferred in bitstreams. Where the terminal is able to store content services, they no longer need to be consumed in realtime. For example, consumers can already download a radio programme onto an MP3 player to listen to whenever they choose. The clear connection between when a content service is transmitted and when it is consumed is consequently becoming blurred.
Convergence can be observed in several ways in the area of television. 'Triple play' offers mean that telephony, television and broadband are sold as a package by, for example, cable television operators or telecommunications operators. IPTV via the broadband network means that the same infrastructure that is used for access to the Internet is also able to supply television services. With web TV in a computer's/mobile telephone's web browser, television content that is available on the Internet is transferred in the same way as other content on the Internet. Mobile television is currently transferred as 'unicast', i.e. transmission to one or a
15 xDSL: Digital Subscriber Line, for example ADSL or VDSL, technology for digital broadband communication over copper-based access networks
National Post and Telecom Agency 25 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
few individual users, in the existing UMTS network. However, mobile television may in the future be developed through broadcasting, i.e. broadcasting the same programmes from one transmitter to several receivers. Broadcasting-based mobile television can use several standards, such as DVB-H, MBMS, T-DMB or MediaFLO.
26 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
3 The switchover to digital broadcasting and use of frequencies for terrestrial television
3.1 The switch-off of analogue television broadcasting In the spring of 1997, the Riksdag decided that digital terrestrial television should be introduced in Sweden. Broadcasts started in 1999.16 Terrestrial digital television can currently be received in areas where approximately 98 per cent of the population of Sweden resides. The Government has, according to the Radio and Television Act, granted licences for approximately 30 programme undertakings to broadcast terrestrial digital television. In the spring of 2004, the Riksdag approved the Government's proposal, whereby digital terrestrial broadcasting from SVT and UR should have the same range as the undertakings' analogue broadcasts, which means that at least 99.8 per cent of the population should be able to receive the broadcasts. At least 98 per cent of the population should be able to receive digital terrestrial broadcasts from one additional DVB-T network.17
The Riksdag has decided that terrestrial television transmissions should completely switch over to digital technology. Analogue terrestrial television broadcasting is being switched off in stages and will have ceased completely by 1 February 2008. A special commission (the Digital Television Commission) has been appointed by the Government to prepare for the switchover and plan and coordinate information about the switchover for the public. The switch-off is planned to be implemented in five stages, in accordance with the following.
Stage 1: Sep-Nov 2005
Visby 19 Sep 2005
Gävle 10 Oct 2005
Motala 21 Nov 2005
Stage 2: Feb-May 2006
Kisa, Norrköping 27 Feb 2006
Uppsala, Västerås, Örebro, Östhammar 3 Apr 2006
Bollnäs, Borlänge, Hudiksvall, Mora 2 May 2006
Stage 3: Nov 2006
Borås, Emmaboda, Finnveden, Halmstad, Jönköping, Nässjö, 6 Nov 2006 Skövde, Varberg, Vislanda, Västervik
Stage 4: Mar-May 2007
Stockholm 12 Mar 2007
16 Government Bill 1996/97:67, Report 1996/97:KU17, Riksdag Communication 1996/97:178 17 Government Bill 2002/03:72, Report 2002/03:KU33, Riksdag Communication 2002/03:196
National Post and Telecom Agency 27 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Sollefteå, Sundsvall, Sveg, Tåsjö, Ånge, Örnsköldsvik, Östersund 16 Apr 2007
Arvidsjaur, Gällivare, Kalix, Kiruna, Pajala, Älvsbyn, Överkalix 14 May 2007
Stage 5: Sep-Oct 2007
Filipstad, Karlstad, Lycksele, Skellefteå, Storuman, Sunne, Vännäs 3 Sep 2007
Bäckefors, Gothenburg, Trollhättan, Uddevalla 24 Sep 2007
Helsingborg, Hörby, Karlshamn, Karlskrona, Malmö 15 Oct 2007
Table 5: Stages in the switch-off of the analogue television network (Source: Teracom)
3.2 Frequencies that are used for terrestrial broadcasting Of the existing spectrum with less than 1 GHz, broadcasting constitutes almost 50 per cent of the frequency allocation. This has been allocated to the following areas of use.
Band Frequency (MHz) Area of use
LW 0.1485-0.2835 Analogue sound broadcasting (AM) MW 0.5265-1.6065 Analogue sound broadcasting (AM) SW 5.95-6.2 Analogue sound broadcasting (AM) SW 7.1-7.3 Analogue sound broadcasting (AM) SW 9.5-9.9 Analogue sound broadcasting (AM) SW 11.65-12.05 Analogue sound broadcasting (AM) SW 13.6-13.8 Analogue sound broadcasting (AM) SW 15.1-15.6 Analogue sound broadcasting (AM) SW 17.55-17.9 Analogue sound broadcasting (AM) SW 21.45-21.85 Analogue sound broadcasting (AM) SW 25.67-26.1 Analogue sound broadcasting (AM) I 47-68 Analogue TV (channels 2-4) II 87.5-108.0 Analogue sound broadcasting (FM) III 174-230 Digital sound broadcasting (T-DAB18), analogue and digital TV (channel 5-12) IV 470-582 Analogue & Digital TV (channel 21-34) V 582-862 Analogue & Digital TV (channel 35-69)
Table 6: Frequency bands used for terrestrial broadcasting
18 T-DAB: Terrestrial Digital Audio Broadcasting, a standard for broadcasting terrestrial digital sound broadcasting
28 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
3.3 Spectrum that is used for analogue terrestrial television Only the spectrum that is currently used for analogue terrestrial broadcasting of television is included in this report. The frequency bands in question are therefore the following.
Frequency band Designation Size of spectrum Use before switch-off (MHz) (MHz)
47 – 68 Band I 21 Analogue TV (channels 2-4) 174 – 230 Band III (VHF) 56 Analogue TV (channels 5-12) 470 – 862 Band IV/V (UHF) 392 Analogue TV (channels 21- 69)
Table 7: Frequency bands used for analogue terrestrial TV
3.3.1 Band I (47 – 68 MHz) Band I (47-68 MHz) will not be used for terrestrial television after the analogue broadcasts have ceased. Consequently, 21 MHz will be released in band I. PTS considers that commercial stakeholders will have a limited interest in using this frequency band. This is due to the bandwidth (capacity for data transmission) being limited, and long antennae being used for reception, which impedes the development of portable user terminals.
The Swedish Armed Forces have expressed an interest to PTS in using band I for military applications. Amateur radio users have also expressed an interest in band I.
According to the ITU's Radio Regulations (edition of 2004), Band I is allocated for broadcasting and no changes to this allocation are expected.
3.3.2 Band III (174 – 230 MHz) Band III (174-230 MHz) is not currently used for digital television broadcasting in Sweden, but is used for terrestrial digital television in other countries. In Sweden, this band is currently partially used for broadcasting digital sound broadcasting (T- DAB).
The Government explained its view on the development of digital sound broadcasting in a written communication of 20 December 2005.19 It was concluded by this written communication that the advantages for the consumer, as regards the DAB technology, have not been made clear and that the technology has had a limited success in other countries. It was indicated by this written communication that the Government does not consider that there is any reason to choose a single technology for future radio distribution. Set against this
19 Communication 2005/06:66
National Post and Telecom Agency 29 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
background, the Government is not currently considering any decision on commencing the development of DAB transmissions.
The frequency band for analogue terrestrial television was planned at the 1961 Stockholm Conference. The 1961 Stockholm Agreement was supplemented with rules for digital use in Chester in 1997 (Chester 97). The use of the frequency band for digital sound broadcasting was planned in Wiesbaden in 1995.
During 2006, the Regional Radio Conference RRC-06 was held under the auspices of the ITU, which replaced the plans for the frequency band 174-230 MHz with the recently decided Geneva Agreement (GE06).
With GE06, Sweden can develop one nationwide DVB-T network for terrestrial digital TV or one nationwide and three regional T-DAB networks for terrestrial digital sound broadcasting in band III (174 – 230 MHz). However, the development of all four T-DAB networks means that the frequency band 230 – 240 MHz must also be utilised in certain areas.
The Swedish Armed Forces have notified PTS that any future decision on the use of band III should be considered in conjunction with the Swedish Armed Forces and their wish to have spectrum in the frequency band 230 – 240 MHz, and that this band is harmonised for military use in Europe.
3.3.3 Bands IV and V (470 – 862 MHz) Bands IV and V (470 – 862 MHz) constitute the largest frequency band used for analogue television. Following the switch-off of analogue television broadcasting, the existing five operational DVB-T networks will use this frequency band.
This frequency band was planned for analogue terrestrial television at the 1961 Stockholm Conference. The 1961 Stockholm Agreement was supplemented with rules for digital use in Chester in 1997 (Chester 97).
During 2006, the Regional Radio Conference RRC-06 was held under the auspices of the ITU, which replaced the plans for the frequency band 470-862 MHz with the recently decided Geneva Agreement (GE06).
The report will hereafter primarily deal with the spectrum released on the switch- off of analogue television broadcasting in bands IV and V and how this spectrum may be used. A condition for prospective new areas of use is that they coexist with the existing five DVB-T networks.
3.4 Legislation on the use of radio transmitters, etc. As the radio spectrum is a limited natural resource, there are rules for the use of radio transmitters, as is the case concerning what radio equipment can be sold (placed on the market).
Chapter 3, Section 1 of the Electronic Communications Act (2003:389) (EkomL) states, among other things, that a licence is required in order to use a radio
30 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
transmitter in Sweden. Licences are issued by PTS. PTS can also issue regulations on exemptions from the licence obligation.20
The Radio and Telecommunications Terminal Equipment Act (2000:121) and regulations issued on the basis of this Act contain, among other things, provisions on what equipment can be placed on the market in Sweden. The Act implements Directive 99/5/EC of the European Parliament and of the Council on radio equipment and telecommunications terminal equipment (the 'R&TTE Directive').
The Radio and Television Act (1996:844) contains regulations regarding sound broadcasting programmes and television programmes that are broadcast to the general public and are designed to be received using technical devices. This Act covers broadcasting via terrestrial radio communication, satellite and cable. A broadcast is only deemed to be directed at the general public if it is simultaneously accessible, without specific request, to anyone who wishes to receive it.
Chapter 2, Section 1 of the Radio and Television Act states that the Government grants licences for digital and analogue television programme transmissions, nationwide analogue sound broadcasting transmissions and digital sound broadcasting transmissions. The Radio and TV Authority issues licences for local sound broadcasting transmissions (local radio and community radio) and temporary television and sound broadcasting transmissions.
According to Chapter 3 of the Radio and Television Act, licences issued by the Government may be subject to conditions on, among other things, geographical coverage or population coverage. Conditions may also be prescribed regarding programme content, for example regarding impartiality, objectivity, rectification and the right to reply.
When the Government or the Radio and TV Authority have made a decision on a licence to broadcast television or sound broadcasting programmes, the licence holder or the party arranging the transmissions for the licence holder applies to PTS for a licence to use the radio transmitter(s) that are required for the broadcasts. PTS then prescribes the more detailed technical conditions for the transmissions. A double licence procedure is consequently applied for terrestrial television and sound broadcasting transmissions that are directed at the general public. It is prescribed by Chapter 3, Section 6 of EkomL that PTS cannot grant licences for the broadcasting of sound broadcasting and television programmes that are directed at the public without a licence having first been allocated under the Radio and Television Act.
3.5 Valuation of spectrum During the last ten-year period, there have been an increasing number of discussions about the possibility of setting a value on radio spectrum. This is connected to the deregulation of the telecommunications markets (the abolition
20 National Post and Telecom Agency's Regulations on Exemptions from the Licence Obligation for Certain Radio Transmitters (PTSFS 2005:8)
National Post and Telecom Agency 31 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
of the national telecommunications monopoly) and also the greatly increased use of wireless communications (primarily mobile telephony).
The value of spectrum can be assessed in several different ways. One way is to estimate its commercial value, i.e. what a commercial stakeholder would be prepared to pay in order to get the exclusive right to the spectrum. Another way is to assess the additional public benefit of using spectrum for different services. Upon such an assessment, the value of increased freedom of speech and diversity in mass media, for example, can be considered.
It has been decided in different countries that licences to use certain parts of the radio spectrum should be assigned following an auction, where those who are prepared to pay the most are granted the licence. The results of the auctions show that it is possible to attach financial value to spectrum in the radio spectrum.
Table 8 below shows the results from a number of spectrum auctions.
Year Band Country Population Number Total Auction Revenue per (service) (million) of bandwidth revenue MHz and licences national (EUR mil) million (MHz) inhabitants (EUR)
1995 1900 MHz USA 298 99 60 7 019 392 562 (Broadband (million (USD) PCS) USD)
1996 1900 MHz USA 298 493 30 10 072 1 126 622 (Broadband (million (USD) PCS) USD)
2000 1900 MHz Great Britain 60 5 140 38 400 4 571 429 (3G)
2000 1900 MHz Germany 82 4 145 51 000 4 289 319 (3G)
2000 28 GHz Great Britain 60 1621 672 64 1 587 (BFWA)
2001 1900 MHz Denmark 5.5 4 140 512 664 935 (3G)
2001 900 MHz Norway 4.6 3 27.6 1.4 11 34222 (GSM)
2003 1900 MHz Norway 4.6 1 34.6 7.5 47 24823 (3G)
21 16 licences sold out of the 42 offered (3 licences per region in 14 regions) 22 There is an additional annual charge of approximately NOK 500 000 per MHz 23 There is an additional annual charge of approximately NOK 500 000 per MHz
32 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
2003 3.4 GHz Great Britain 60 15 40 9.9 4 125 (FWA)
2004 450 MHz Norway 4.6 1 9.0 0.1 3 14024
2004 3.4 GHz Norway 4.6 150 173 6.1 7 716 (FWA)
2005 450 MHz Sweden 9.0 1 3.6 9.5 293 210
2006 1800 MHz Great Britain 60 12 6.6 5.5 13 889 (GSM guard band)
Table 8: Spectrum auctions
In order to facilitate some form of comparability, auction revenue has been calculated per MHz spectrum and per million inhabitants covered by the licence.
Most experts currently consider that the revenues from 3G auctions in Great Britain and Germany are an indication of the irrational expectations at the peak of the IT and telecom bubble. The other extreme case, with very low results from the British FWA auctions,25 is often explained as being due to the effects of the subsequent telecom crash and the fact that it involved an immature market with relatively expensive equipment and high frequencies with a limited range. As a comparison, it may be mentioned that a survey of the licence auctions for mobile telephony arrives at an average price of USD 1.65 per MHz and per capita population coverage.26
The above examples of revenues from spectrum auctions represent a commercial valuation of spectrum, i.e. how much a stakeholder considers that it is able to pay for spectrum as an input resource and, with a reasonable return, nonetheless attain sufficient profitability for the radio use during the term of the licence.
A broader perspective is to compute the public benefit generated from radio use. The economic value of radio use has been estimated to be at least 2-2.5% of GDP for EU countries.27 This is a calculation with a static approach and, according to the researchers who made the calculation, is probably an underestimate as it does not take into account the many social benefits or the indirect impact on innovation, productivity and growth of the economy.
Several researchers have made assessments of the impact of spectrum management on competition and innovation from a dynamic perspective as well as the consumer benefit of various spectrum reforms. Some examples:
24 There is an additional annual charge of approximately NOK 500 000 per MHz 25 FWA: Fixed Wireless Access, wireless broadband for fixed reception 26 Hazlett, T.W., Bazelon, C., Rutledge, J., Allen Hewitt, D., Sending the Right Signals: Promoting Competition through Telecommunications Reform, Report to the U.S. Chamber of Commerce, 2004 27 Analysys, Study on conditions and options in introducing secondary trading of radio spectrum in the European Community, Final report to the European Commission, 2004
National Post and Telecom Agency 33 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
• The consumer surplus (i.e. the difference between what a person is at most prepared to pay for the quantity of goods/services demanded and what they must pay for this quantity) of harmonised second-hand trade and the flexible use of spectrum within the EU is estimated to be EUR 8- 9 billion per year, corresponding to approximately 0.1% of EU GDP. The bulk of this has been generated by positive effects on innovation and competition. This estimate only applies to the further profit that it is assessed will arise through harmonised conditions within the EU, in addition to what it is possible to realise on a national basis.28
• The effect of allocating a further 200 MHz spectrum to mobile services in the USA has been estimated to halve the prices at the end-user level and generate a consumer surplus of approximately USD 77 billion per year. Note that this estimate is based on conditions in the American market at the turn of the year 2003-2004 and the price effect depends upon which level of frequency shortage is considered to prevail.29
• The consumer surplus from releasing 200 MHz spectrum for mobile services on the switchover to terrestrial digital television in 13 EU countries (not including Sweden) has been estimated to be approximately USD 500 – 2100 per capita and year for the various countries.30
One important reason for mobile telephony often being used as a comparative object is that data exists to make historical and international comparisons of price levels in relation to frequency assignment and similarly in order to measure consumer price elasticity. Researchers have demonstrated a strong link between the quantity of spectrum assigned for mobile services and lower consumer prices. In addition to this, there are opportunities for further innovation and for completely new services that accompany the more flexible conditions for frequency use.31
PTS is of the view that it is possible to achieve great gains for society with a more efficient and flexible use of spectrum resources. These gains may, in the opinion of PTS, be expected to benefit the consumer through reduced prices for and an increased range of electronic communications services. At the same time, increased competition means that the existing producers of electronic communications services have lower profitability. This results in existing licence holders not necessarily being interested in measures that are aimed to make frequency use more efficient and flexible.
28 Analysys, ibid. 29 Hazlett, among others 2004 30 Hazlett, T.W., Mueller, J., The Social Value of TV Band Spectrum in European Countries, 2004 31 Ibid.
34 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
4 International cooperation on matters regarding switchover to terrestrial digital television International cooperation relating to the switchover of terrestrial television to digital broadcasting covers both technical and political issues.
At a global level, the use of the radio spectrum is regulated within the framework of the operation of the International Telecommunication Union (ITU). In Europe, the use of the radio spectrum is regulated within the European association of postal and telecommunications authorities, the Conférence Européenne des Administrations de Postes et Télécommunications (CEPT), in which PTS participates.
The European Union (EU) has, through legislation on electronic communications decided in 2002, increased its influence as regards the use of radio spectrum.
4.1 Work within ITU ITU is an international organisation that was founded in 1865 and has been part of the UN organisation since 1947. ITU's task is to make better and more efficient use of telecommunications. ITU's radio sector plays an important role for an international harmonised use of radio frequencies.
4.1.1 The World Radio Conference (WRC) The global international planning of frequency bands depends upon the decisions adopted at the world radio conferences (WRC). These conferences are arranged by ITU approximately every three years. Following proposals from the member countries of the ITU, WRC's task is to conclude agreements on the revision of ITU's Radio Regulations (ITU-RR) to facilitate the development of radio use. The Radio Regulation represents the most significant system of rules (regulatory framework) on radio and radio usage from a global perspective. The last WRC was held in 2003 and the latest version of the Radio Regulation was issued in 2004.
The ITU-RR is the international legal instrument that regulates the use of the radio spectrum through specifying the allocation of frequency bands and the conditions for various radio services. However, ITU-RR does not generally contain any detailed technical regulation on the use of radio frequencies.
The next WRC is planned for 15 October – 9 November 2007. Several issues will be raised at this conference, among other things, issues concerning frequency use for the future development of the IMT-2000 system, 'IMT Advanced' (sometimes referred to as fourth generation mobile telephony) as well as the issues that will be raised at the immediately following WRC (which is planned for 2010).
National Post and Telecom Agency 35 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
4.1.2 ITU's planning of broadcasting frequencies
4.1.2.1 Stockholm 61 For European countries, the use of bands I, III, IV and V for analogue television and the coordination of radio transmitters for analogue television from 1961 up until 2006 have been regulated by a regional agreement within the ITU. This agreement (known as Stockholm 61 or ST61, as it was concluded in Stockholm in 1961) contains a frequency plan and a number of procedures regarding the way in which the use of and changes to the frequency plan are permitted.
The frequency plans in Stockholm 61 provided the opportunity to cover Sweden's territory with four analogue television programmes with locally increased coverage areas.
4.1.2.2 Geneva 06 On 15 May to 16 June 2006, a regional planning conference within the ITU was held for the planning of band III as well as bands IV and V. As of this conference, the application of the Stockholm 61 agreement was replaced by a new agreement for the frequency bands, referred to as Geneva 06 or GE06.
Geneva 06 contains an analogue and a digital frequency plan, of which the analogue will be able to be used and protected only during the switchover period up until 2015.
The opportunity to use all of Swedish plan allocations for digital television and radio is therefore limited by analogue television in Sweden and in neighbouring countries needing to be protected during the switchover period. This use is also limited by the requirements for protection of the digital television and radio of neighbouring countries and the use of the frequency bands for other services by certain neighbouring countries.
In addition to the frequency plans, the agreement contains, in the same way as the Stockholm agreement, a number of procedures that determine the way in which the frequency plans can be used and in which way they can be changed.
With GE06, Sweden signed a declaration, together with 52 other countries, by which these countries reserved the right to use plan allocations for terrestrial applications other than those systems planned at the conference. The use of other terrestrial applications will also be permitted, provided that they do not require more protection, or interfere with other usage, more than the plan allocation would. This provides Sweden with flexibility in respect of the future usage of frequency bands. However, there are limitations in the form of the protection that is required in relation to analogue television during the switchover period. Furthermore, the uplink part of mobile applications (i.e. the communication from the portable terminal to the base station) is not covered within the framework of the plan allocations.
36 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
4.2 Cooperation within CEPT CEPT is an association of the European regulatory authorities for postal and telecommunications. An important part of the CEPT's work involves establishing common European positions prior to the work in the ITU's working groups and radio conferences.
4.2.1 CEPT's planning of broadcasting frequencies A number of regional planning conferences have been held within CEPT for the planning of broadcasting frequencies, among other things the planning of terrestrial digital sound broadcasting in Wiesbaden 1995. A European agreement (Wiesbaden 95) was concluded at this conference on the conditions for introducing digital terrestrial sound broadcasting (T-DAB). For Sweden, this agreement means that digital sound broadcasting could be put into operation in parts of band III.
A special European agreement in Chester in 1997 established a framework to enable terrestrial digital television to be broadcast alongside existing analogue television according to the Stockholm 61 plans. This contract contains rules for which frequency usage may normally be accepted between neighbouring countries. In this way, radio transmitters for digital television could be coordinated between neighbouring countries and the broadcasting of terrestrial digital television launched in more countries in Europe. Large parts of Chester 97 have been replaced by the Geneva Agreement 2006.
4.3 Cooperation within the EU
4.3.1 EU's powers on matters regarding assignment of radio frequencies and television broadcasting The basis of EU's powers on matters regarding the assignment of radio frequencies are contained in the common political goals stated in the EC Treaty:
1. Article 3.1 c), promotion of the internal market
2. Articles 3.1 g), 81 and 82, competition in the internal market
3. Articles 3.1 o) and 154 – 156, establishment of trans-European networks
4. Articles 3.1 t) and 153, consumer protection
5. Article 16, services of general economic interest
6. Articles 3.1 q) and 151, promotion of cultural development
With reference to, among other things, the above-mentioned articles, the community legislator has passed legislation that directly or indirectly affects the assignment of radio frequencies within the EU. This legislation can be divided up into the following areas:
National Post and Telecom Agency 37 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
1. The regulatory framework for electronic communications approved in 2002 (the 'E-com package'). This includes, among other things, Directive 2002/21/EC of 7 March 2002 on a common regulatory framework for electronic communications networks and services (the Framework Directive), Directive 2002/20/EC of 7 March 2002 on the authorisation of electronic communications networks and services (the Authorisation Directive) as well as Decision 676/2002/EC of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community (the Radio Spectrum Decision).
2. The directives according to the 'New Approach' that regulate the conditions for putting electronic equipment onto the market, primarily Directive 1999/5/EC on radio equipment and telecommunications terminal equipment (the 'R&TTE Directive').
3. The regulatory framework for cultural political issues, primarily Directive 97/36/EC ('Television without frontiers Directive', the Television Directive).
The E-com package falls within the Directorate General's Office for the Information Society (DG InfoSoc). The application of the New Approach Directive falls within the Directorate General for Enterprise and Industry (DG Enterprise). The application of the Television Directive falls under the Directorate General for Education and Culture (DG Education and Culture).
During 2006 a review was conducted of the E-com package and the Television Directive (see further below).
4.3.1.1 EU's regulatory framework for electronic communications The EU Commission initiated a review of the regulatory framework for electronic communications and associated services in 1999. This review culminated in a new regulatory framework, which was approved by the Council and the European Parliament during 2002. This regulatory framework comprised Directive 2002/21/EC of 7 March 2002 on a common regulatory framework for electronic communications networks and services (the Framework Directive), Directive 2002/20/EC of 7 March 2002 on the authorisation of electronic communications networks and services (the Authorisation Directive) and Directive 2002/19/EC of 7 March 2002 on access to, and interconnection of, electronic communications networks and associated facilities (the Access Directive). At the same time, approval was given to Decision 676/2002/EC of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community (the Radio Spectrum Decision). The directives should have been implemented in the Member States no later than 25 July 2003.
The aim of the new regulatory framework for electronic communications is to create common regulation of electronic communications within the EU and to ensure a similar application of the regulatory framework in the Member States.
The new regulatory framework contains several provisions of importance for issues concerning the radio spectrum and the assignment of the right to use
38 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
frequencies. This regulatory framework does not actually authorise the Community to allocate the rights to use frequencies to individual users. This right remains with the Member States. However, the procedure for assigning the right to use frequencies is regulated by the Authorisation Directive in several respects. Among other things, this prescribes that the Member States shall, in the event that it is necessary to limit the number of user rights that can be assigned, invite applications for user rights and assign rights to use frequencies through open and non-discriminatory procedures.
In November 2005, the EU Commission commenced a review of the regulatory framework by way of initiating an enquiry for views. This was distributed to a very wide range of recipients including, among others, the Member States, the regulatory authorities and other stakeholders through public consultation. Following this consultation, the EU Commission presented a Communication on 29 June 2006.32 In this Communication, the Commission states that one of the two main areas for changes to the existing regulatory framework is the issue of spectrum regulation. The way in which the Commission wishes to regulate this is not indicated, but it is stated in the documents, among other things, that the Commission wishes to introduce technology and service-neutrality for radio licence holders. This would mean that the holders would to a large extent themselves have the opportunity to choose the technology and services that they wish to provide. It would also be possible for licence holders to change both the use and technology during the term of the licence. Furthermore, the Commission is trying to move towards the introduction of possibilities of trade with frequency licences. Furthermore, the Commission proposes that it should be possible to issue European licences for services of a pan-European nature, such as, for example, satellite services. This Communication has now been remitted for consultation with a response time no later than 27 October 2006. According to the time schedule set up, the Commission intends to, at some time around, or immediately after, the turn of the year, present a more detailed proposal on how the Commission wishes the directives to be amended.
4.3.1.2 Directive according to the 'New Approach' The 'New Approach' is directed at a number of directives that deal with common requirements for products in the EU and the right to place products on the market within the EU. The directives are characterised by the products only being allowed to be placed on the market within the EU if they satisfy the essential requirements specified in each directive. The requirements are specified in standards that are produced by the European Standards Organisations, among others the ETSI.33 Products satisfying the requirements may be CE marked and can thereafter be placed on the market throughout the EU. The Member States may not impede products that satisfy these requirements being placed on the market in the EU.
32 COM(2006) 334 final, Communication on the Review of the EU Regulatory Framework for electronic communications networks and services 33 ETSI: European Telecommunications Standards Institute
National Post and Telecom Agency 39 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Directive (1999/5/EC) on radio equipment and telecommunications terminal equipment is a directive according to the New Approach and contains provisions on how radio and telecommunications terminal equipment may be placed on the market within the EU. Radio and telecommunications terminal equipment that is CE marked and satisfies the essential property requirements for market clearance within the EU. The essential property requirements are, among other things, the protection of the health and safety of the user (electrical safety), electromagnetic compatibility and, for radio equipment, the effective use of the radio spectrum.
The R&TTE Directive does not impede Member States from prescribing conditions for radio use and for preventing certain radio transmitters being used without a licence.
4.3.1.3 The Television Directive Council Directive 89/552/EEC of 3 October 1989 on the coordination of certain provisions laid down by law, regulation or administrative action in the Member States concerning the pursuit of television broadcasting activities (the Television Directive, 'Television without Frontiers') applies within the European Union as regards television broadcasting.34 This Directive has been amended by Directive 97/36/EC of the European Parliament and of the Council.35
The Television Directive is aimed at establishing the free movement of television broadcasting. Television broadcasting is deemed to include the transmission of television programmes intended for reception by the public by wire or over the airwaves, including transmission via satellite, in uncoded or coded form. The Television Directive is based on the principle of the country of origin, i.e. that Member States are entitled to regulate the television broadcasting that emanates from their territory. A television broadcast that satisfies the legislation in the country of origin and the provisions of the Television Directive should thereby be allowed to be broadcast to other Member States. According to Article 3.1, Member States are at liberty to prescribe that television programmes under their jurisdiction should comply with more detailed or stricter rules in the areas covered by this Directive. It is stated in Article 3.2 that Member States within the framework of their legislation shall by appropriate means ensure that television programme undertakings effectively comply with the provisions of the Directive within their jurisdiction.
The Television Directive contains a number of substantive provisions that should apply to television broadcasting within the EU. These provisions include the reservation of certain broadcasting times for European productions. The Television Directive also contains rather extensive provisions on the placement and formulation of advertising and provisions on sponsorship, teleshopping and the protection of minors.
34 See EGT L 298, 17.10.1989, p. 23, see Appendix 9, where the 1997 changes are included. 35 Directive 97/36/EC of the European Parliament and the Council of 30 June 1997 amending Council Directive 89/552/EEC on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities.
40 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
On 13 December 2005, the Commission published a draft for amendments to the TV Directive.36
4.3.2 Work within the EU's Radio Spectrum Policy Group (RSPG)
On 26 July 2002,37 the Commission decided to establish a group for radio spectrum policy (Radio Spectrum Policy Group, RSPG). The task of the RSPG is to assist in providing advice to the Commission on issues relating to radio spectrum policy, for example access to the radio spectrum, harmonisation and allocation of the radio spectrum, the provision of information about allocation, access to and use of the radio spectrum, approaches for granting the right to spectrum, reallocation, moving, valuation and an efficient use of radio spectrum and health protection.
In its work, the RSPG should conduct extensive consultation with the stakeholders, consumers and end-users in the market.
At the Commission's request, the RSPG submitted a statement of views38 on 19 November 2004 on the consequences for radio spectrum of the switchover to terrestrial digital television. RSPG stated that the switchover to terrestrial digital television means that current analogue television broadcasting would in the future utilise significantly less spectrum. This would result in the release of an unknown but substantial amount of spectrum in the relevant bands that may be used for more services, such as additional television broadcasting or other electronic communications services. RSPG stated that it is very important to coordinate the switchover to digital television, but that it is not realistic to expect a common date for the switch-off of analogue television networks, taking into consideration the major differences between the Member States. RSPG also stated that any spectrum released should, in the first instance, be shared by the Member States on the basis of their national needs and priorities. However, the possible advantages of more technology neutral and flexible sharing of the spectrum released should be studied.
At the request of the Commission, the RSPG submitted a statement of views39 on 23 November 2005 on wireless access for electronic communications services (Wireless Access Policy for Electronic Communications Services, WAPECS). WAPECS is defined as a regulatory framework for the provision of electronic communications services within the frequencies identified by the EU Member States. Electronic communications networks and electronic communications services within these frequency bands can be provided on technology and service-
36 COM(2005)646 final, Proposal for a Directive of the European parliament and of the Council amending Council Directive 89/552/EEC on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities 37 Commission Decision 2002/622/EC of 26 July 2002 establishing a Radio Spectrum Policy Group 38 RSPG04-55 Radio Spectrum Policy Group Opinion on Spectrum Implications of Switchover to Digital Broadcasting 39 RSPG05-102 Radio Spectrum Policy Group Opinion on Wireless Access Policy for Electronic Communications Services (WAPECS) – A more flexible spectrum management approach
National Post and Telecom Agency 41 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
neutral conditions. The aim is to achieve a development towards a more flexible regime for the assignment of spectrum where frequency bands are, for example, not identified for fixed or mobile use, but where digital technology can be used to offer a broad range of services. The conditions for use of these frequencies should therefore only be established on the basis of the technical requirements for coexistence and the avoidance of harmful interference.
The frequency bands identified by RSPG as of interest for WAPECS and that are now allocated for broadcasting are, among others, band III (174 – 230 MHz) and bands IV and V (470 – 862 MHz).
On 11 May 2006, the RSPG produced a draft for a new opinion,40 this time on the opportunities of introducing 'multimedia services' (including mobile television) primarily in frequency bands allocated for broadcasting. This statement has been remitted for consultation and consequently the final result is not known. The main lines of the draft are that the introduction of multimedia services should be facilitated by applying the principles of the earlier opinion on WAPECS. Furthermore, RSPG referred to frequency band 1452 – 1479.5 MHz (the 'L- band') as being of interest for a rapid harmonised opportunity for multimedia services. RSPG also pointed out the importance of spectrum being made available in band III or bands IV and V for the introduction of multimedia services.
It is expected that RSPG will approve a final opinion during the autumn of 2006.
Furthermore, the Commission has asked RSPG for an opinion on the issue of the spectrum that can be released on the switch-off of analogue terrestrial television within the EU.41 Work on this opinion has recently been started and RSPG aims to be able to adopt a final opinion during the first quarter of 2007. The goals of the work on RSPG's opinion are described in the Commission's communication as follows:
1. To encourage transparency of Member States policies affecting the reallocation of the digital dividend and to support a convergence of approaches.
2. To ensure that the digital dividend resulting from the switchover will have a positive effect on EU-wide competition and innovation in the provision and efficient use of radio spectrum by wireless applications, i.e. contributing to the Lisbon's goals of economic growth and job creation.
3. To support the functioning of the Internal Market for electronic communications services and equipment which will operate in the released frequencies, resulting from the switchover to digital broadcasting.
40 Draft Radio Spectrum Policy Group Opinion on The Introduction of Multimedia Services in particular in the frequency bands allocated to the broadcasting services, 11 maj 2006 41 RSPG06-120, Request by the European Commission to the Radio Spectrum Policy Group for an Opinion on 'EU Spectrum Policy Implications of the Digital Dividend'
42 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
4. To reap the full potential of the digital dividend, in particular considering that some of the released spectrum could be used in priority for future innovative, 'high-value', pan-European services while promoting multimedia diversity and content production.
4.3.3 The work of the Commission In the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on the transition from analogue to digital broadcasting (from digital 'switchover' to analogue 'switch-off'),42 the Commission explains the priorities that should, in the opinion of the Commission, guide the switchover to digital television in the EU. The Commission states, among other things, that the switch- off of analogue television broadcasting may release several hundred MHz of commercially attractive spectrum. However, during a transitional period when analogue television is broadcast in parallel with digital television, the shortage of frequencies may actually increase instead in some areas. The Commission observes that one important issue for all Member States will be the allocation of the released spectrum. Several different areas of use may come into question: improved television broadcasting (for example through mobile reception equipment or higher sound and picture quality) or other forms of radio-based electronic communications services. Traditional television services may also be developed towards more sophisticated services like those now associated with mobile telephony.
The Commission also states that discussions are now proceeding on how the socio-economic value of the use of spectrum for broadcasting can be related to other alternative uses of the same spectrum. The valuation must of course be made taking into consideration the media policy objectives. One way of taking this into account is to, in conjunction with the assignment of spectrum in competition, compensate radio broadcasting operators for the obligations imposed on them owing to policy. The operators' value of the frequency resources would thereby be established. Furthermore, it is possible to distinguish the right to use spectrum from the right to run networks for distributing programme content. The overall objective should be to encourage the efficient use of frequencies through openness on the value of alternative uses of frequencies.
In a follow-up to the previous communication on the switchover from analogue to digital broadcasting,43 the Commission proposes that the analogue television networks in all Member States should be shut down in early 2012. Member States should be flexible when planning the spectrum that is released on switch-off and allow the use of frequencies for other electronic communication services, in addition to digital television broadcasting. The Commission notes that the sooner the switch-off of the analogue network commences, the quicker the switchover
42 COM(2003) 541, Communication on the transition from analogue to digital broadcasting (from digital 'switchover' to analogue 'switch-off') 43 COM(2003) 541
National Post and Telecom Agency 43 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
will be implemented and the dividends from the released spectrum realised. It is important to try to minimise the time in which television is being broadcast by analogue and digital technology at the same time, as this may aggravate the shortage of spectrum in areas that are already stretched. Member States should also take into consideration the need for flexibility in connection with the international negotiations on spectrum issues during ITU's regional radio conference in 2006 (RRC-06) and the world radio conference in 2007 (WRC-07) with regard to frequency bands that have been previously used for analogue television broadcasting.
In order to acchieve a 'critical mass' of users in Europe for a new technology, differences in the Member States' treatment of the released spectrum should be minimised. The Commission therefore proposes that some of the released spectrum should be reserved for all-European services.
In the Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee and the Committee of the Regions on a market-based approach for spectrum management in the European Union,44 the Commission stated that spectrum management in the EU need to be reviewed if the EU is not to lose its leading role in the area of radio communications systems. The Commission therefore proposes that frequency management within the EU is conducted in a more market-based way and that the stakeholders in the market are given greater freedom to determine how the frequency should be used. Furthermore, impediments for access to spectrum should be reduced by allowing trade in rights to use frequencies.
One impediment to achieving that mentioned above is the fragmented implementation of reforms. The Commission therefore proposes a common and coordinated removal of restrictions on frequency use in the Member States in order to promote new digital services. Significant spectrum, for example a third of the frequencies under 3 GHz, may be subject to flexibility and spectrum trade no later than 2010.
The Commission points out that the spectrum that is released on the switchover to digital television is appropriate for flexibility and spectrum trade.
In a Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on EU spectrum policy for the digital switchover in the context of the upcoming ITU Regional Radiocommunication Conference 2006 (RRC-06),45 the Commission describes the proposals for the EU's priorities for the ITU's Regional Radiocommunication Conference 2006 (RRC-06), during which the frequencies for terrestrial digital television will be planned for band III and bands IV/V. The Commission states that the switchover to digital television means that
44 COM(2005) 400, A market-based approach to spectrum management in the European Union 45 COM(2005) 461, EU spectrum policy priorities for the digital switchover in the context of the upcoming ITU Regional Radiocommunication Conference 2006 (RRC-06)
44 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
spectrum will be used six times more efficiently. This means that terrestrial television broadcasting with the current programme range will use approximately 300 – 375 MHz less spectrum. This spectrum can consequently be released. The Commission identifies three different areas of use for this spectrum:
• An increased number of television programmes in terrestrial television, or the enhanced quality of television broadcasting (HDTV).46
• Converged future radio applications, a kind of 'hybrid' of mobile communications services and broadcasting.
• Completely new uses, for example extension of 3G services or short range radio.
The Commission recommends that the Member States commence discussions as soon as possible about how the released spectrum should be used.
The Commission also considers that RRC-06 should not result in unnecessary impediments to the application of the Framework Directive and the Authorisation Directive and other Community legislation. The Member States must ensure that the regulatory authorities deal with the spectrum uniformly within the EU according to the EU's regulatory framework for electronic communications.
The Commission considers that some of the released spectrum should be used for harmonisation at a European level, in particular to satisfy the future need of pan- European communications services.
The Member States should review the technical bases for planning in preparation for RRC in order to identify unnecessary restrictions in frequency use that may undermine the principles of flexibility and technology neutrality.
4.3.4 The conclusions of the Council
In its conclusions on COM (2005) 20447 and (2005) 461, the Council states, among other things, the following:48
• Most Member States expect to complete the switchover to terrestrial digital television by 2012, while some countries will have already implemented the switchover in 2008.
• The switchover will result in the technical development and growth of the markets for consumer equipment and the protection of intellectual property.
46 HDTV: High Definition Television, standard for broadcasting television in high definition 47 COM(2005) 204, On accelerating the transition from analogue to digital broadcasting 48 Council conclusions of 14 November 2005, 14226/05
National Post and Telecom Agency 45 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
• The spectrum that is released on the switchover should be used in a way that creates the greatest value for society and the economy at a national and European level, taking into consideration the relevant political objectives and interests.
• The management of the switchover is an issue for the Member States, but there may be scope for coordination at an EU level.
• The Member States should, as far as possible, conclude their switchover to terrestrial digital television by 2012.
• During 2006, the Member States should publish proposals for the switchover, where this has not yet been done.
• During RRC-06, the Member States should support the opportunities for the flexible use of released spectrum.
• The Member States and the Commission should discuss the use of released spectrum, among other things, to meet the future demand for pan-European communications services.
4.3.5 EU conclusions With the assistance of the RSPG on the issue of the switchover to digital television, the Commission has orientated itself in its work to the possibilities of releasing frequencies in a coordinated way within the EU. In this way, the Commission considers that the greatest economic value of the switchover can be realised as European business will then have an opportunity to develop goods and services for a common market and not for separate national markets. If the switchover means that a certain frequency band may be released throughout the Community, this would of course also contribute to the Commission's goal of promoting European integration in radio spectrum policy. The Commission is also of the view that released spectrum may be assigned for use other than for broadcasting services and that assignment should be effected taking into account the principles of technology and service neutrality.
As indicated by the conclusions of the Council referred to above, the radio spectrum policy, as well as the overall policy for television broadcasting, is a national issue and the coordination that may come into question is effected on voluntary grounds. However, it is an explicit policy goal within the EU that the Member States should have completed their switchover to digital television no later than 2012. Furthermore, it is stated that it is possible to use the released spectrum for purposes other than for traditional broadcasting services.
4.4 EBU The European Broadcasting Union (EBU) is an organisation for national television programme undertakings. In Sweden, Sveriges Television, TV4, the
46 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Swedish Educational Broadcasting Company and Sveriges Radio are members of the EBU .
The EBU has 74 active members in 54 European countries, as well as 44 associated members in 25 countries outside Europe. The organisation was founded in 1950. The EBU offers operative, commercial, technical and legal services to its members and also negotiates on rights and organises programme exchanges. The EBU has around 10 technical project groups. The EBU has an office in Brussels; from there they represent their members' interests in relation to the European institutions.
Technical cooperation is one of the main activities of the EBU and it coordinates the development of new sound broadcasting and television systems. These include, among others, DAB, DVB and HDTV.
4.5 The switchover to terrestrial digital television in Europe In Europe, the various countries have reached different levels in the switchover process towards digital terrestrial television transmissions. The starting date for digital terrestrial transmissions and final date for analogue broadcasting transmissions are shown in the following table.47
Country Start date for digital Final date for broadcasting analogue broadcasting
Belgium 2003 2012 Denmark 2006 2009 Finland 2002 2007 France 2005 Not decided Italy 2003 2008 The 2003 Not decided Netherlands Norway 2007 Possibly 2009 Poland 2006 Possibly 2014 Switzerland 2001 2009 Spain 2000 2010 Great Britain 1998 2012 Sweden 1999 2008 Czech Republic 2005 Possibly 2010 Germany 2002 2008 Austria 2006 2010
Table 9: Start date for digital broadcasting and the final date for analogue broadcasting in a number of European countries
National Post and Telecom Agency 47 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
4.6 Countries outside Europe The switchover to terrestrial digital television is currently being considered, or is in progress, in several countries outside Europe. A report on the situation in the USA, Canada, South Africa, Japan, South Korea and Australia, that was conducted by HiQ Data, shows that all of these countries, with the exception of South Africa, have clearly set dates for when the analogue switch-off will take place. It can also be seen that the switch-off in these countries is planned to be concluded no later than by 2012. Several of these countries also have plans to use the released spectrum for uses other than broadcasting. 49
49 HiQ Data AB, Digital Switchover and Spectrum Dividend – Market Status outside Europe 2006
48 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
5 Released spectrum − Technical preconditions
5.1 Introduction The issue of what spectrum will be released on the switchover to terrestrial digital television is multifaceted. Three to six times as many standard quality television programmes can be broadcast with the same frequency usage in a DVB-T network compared with corresponding analogue television networks. In other words, existing programme content that is offered today by the analogue television networks is accommodated by one single DVB-T network.
It may be claimed that the spectrum that is released in bands IV and V (470 – 862 MHz) on the switchover to terrestrial digital television constitutes the existing spectrum in the bands minus the spectrum required for one national DVB-T network. A frequency channel takes up 8 MHz of spectrum. In order to plan for a nationwide DVB-T network, approximately 7 frequency channels will be used (depending on which infrastructure is used). A nationwide DVB-T network consequently takes up (8 MHz × 7 =) 56 MHz. If only the existing programmes in analogue television broadcasting were to be transferred to terrestrial digital television, the released spectrum in bands IV and V (470 – 862 MHz) would consequently be 336 MHz. Applying corresponding reasoning, 280 MHz is required for five DVB-T networks, which means that 112 MHz would be released for other usage in bands IV and V (470 – 862 MHz).
The preconditions for investigating how much spectrum will be released on the switch-off of the analogue network therefore depend upon the decisions that are made regarding how much terrestrial digital television will be provided in Sweden. The starting point for this chapter is that five nationwide DVB-T networks have been put into operation.
One multiplex channel for terrestrial digital TV is packeting (multiplexes) programme content in a bitstream with a bit speed of approximately 22 Mbit per second. Consequently, five operational DVB-T networks for terrestrial digital television correspond to one bitstream of (5 × 22 Mbit/s =) 110 Mbit per second. This condition constitutes an important part of the analysis made in this chapter.
5.2 Some facts about radio use in the frequency bands involved When using a radio, electromagnetic waves are generated by a radio transmitter connected to an antenna. Radio waves are spread in all directions, although they are almost always targeted in one particular direction. The strength of the radio waves attenuates with the distance from the radio transmitter, which means that the signal strength will be reduced more, the longer from the transmitter you are. Use of a lower frequency allows greater range than use of a higher frequency. Signal strength is also attenuated by objects in the way of the radio waves. It is primarily objects that are of the same size as the length of the radio wave that attenuate the signal. Reception is no longer possible at a certain distance, resulting
National Post and Telecom Agency 49 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
solely from the signal strength having become too low or another disruptive signal in the same frequency band being too strong.
In order to achieve the most efficient use possible, the size of the antenna that is used for the transmitter and receiver should be adapted for half the wavelength of the frequency used. A larger antenna is normally required for lower frequencies than for higher frequencies. The wavelength varies between 1m and 10m in the frequency range 30 – 300 MHz, while a wavelength in the 300 MHz – 3 GHz range varies between 10cm and 1m.
When planning for radio usage, regard must be taken to objects that attenuate the dispersal of the radio waves. Use of lower frequencies may, for example, pass through a forested area easier than use of a higher frequency. The polarisation of the radio waves also plays a certain role. A horizontally polarised signal is attenuated somewhat less in a forest, whereas a vertically polarised signal may be advantageous for dispersal in, for example, an urban environment. Examples of other objects that must be taken into consideration when planning for radio frequency usage are walls and windows, which affect the attenuation of radio waves.
When planning (and designing) communications systems, consideration must also be taken of the 'short and long reflections', which means that the signal transmitted reaches the receiver at several shortly delayed times, with a more or less weakened signal. Digital technology and signal processing has, over recent years, improved the possibilities of extracting the transmitted information in the receiver (information-bearing signal).
Band III (174 – 230 MHz) and bands IV and V (470 – 862 MHz) are highly suitable for several different types of radio communications services. Radio use can have a good and uniform range, at the same time as good capacity, even when the recipient's environment varies. Propagation can be relatively easily estimated with knowledge of the terrain and statistical data. Properly planned, the frequency band can be used for communication between fixed points as well as between moving transmitters and receivers.
In Sweden, band III and bands IV and V have traditionally been used for television. By selecting the right infrastructure, large areas can be covered by just a few transmitters. Generally, in Sweden, 54 transmitters on masts of a height of approximately 300m ('main stations' in Teracom's network) are sufficient to cover 95 per cent of the population for reception via a fixed rooftop antenna.
Bands III, IV and V are also very suitable for usage where good surface coverage is required. This use does not necessarily need to be radio and television, but applies generally for transmitting information to a larger area. A favourable factor for use in this frequency band is that a clear line of sight between the transmitter and receiver is not necessary, but the radio signal is still reflected to the receiver without significant attenuation. The frequency band's good dispersal properties therefore mean that it is very suitable for mobile communications networks.
50 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Frequency planning varies depending on the services or systems planned for. Above all, it differs regarding the issue of the spectrum that it is necessary to be used, but also as regards to the possibility of reusing spectrum within or outside the area of coverage.
Radio services are usually grouped by their various forms of use, for example broadcasting, mobile or fixed radio services. In international harmonisation, these services have historically been planned in different frequency bands. However, the technological developments with convergence between the different services may have an impact on this division. One and the same radio transmitter/receiver can, in many cases, be used for several radio services simultaneously, which is particularly prominent with the introduction of digital technology. For example, television reception (broadcasting) through the existing UMTS networks (mobile radio) may be mentioned. In the case of the use of radio services, the various means of reception are often referred to, for example, fixed, mobile or nomadic reception. The feature that distinguishes the means of reception is, for example, the antenna that is used, the height at which it is placed and the environment in which it is normally located, and also whether or not it is moving. Each individual way of reception requires a specific minimum field strength in order for the receiver to function as expected.
5.3 Technical study on release of spectrum This section is based on a technical study that has been conducted by HiQ Data and its sub-consultant, Progira Radio Communication, on the assignment of PTS.50 This study shows the frequencies that can be released for other usage on the switchover to terrestrial digital television. The possibility of releasing spectrum for various services and systems within band III (174 – 230 MHz) and bands IV and V (470 – 862 MHz) is analysed in this study. The study is based on three different scenarios. These are:
• Scenario 1: The infrastructure for terrestrial digital television that currently exists is maintained.
• Scenario 2: Minor changes are made to the digital television infrastructure with the aim of increasing the spectrum that can be released.
• Scenario 3: A completely new infrastructure for digital television is established.
Band I (47 – 68 MHz) is not covered by the study and will therefore not be dealt with within this chapter (see Section 3.3.1 above).
It should be noted that the services and systems that are discussed here do not in any way mean that it will not be possible to use other services and systems in the
50 HiQ Data AB/Progira Radio Communication AB, Technical investigation of the usage of the spectrum released by the switchover to digital terrestrial television, 2006. This report is available on PTS's website, http://www.pts.se/Sidor/sida.asp?SectionId=2963.
National Post and Telecom Agency 51 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
frequency bands in question. The services and systems that are analysed are chosen as typical for illustrating the possibilities offered by the frequency bands in question. They should consequently be viewed as possible areas of use and not as proposals about which of the systems are appropriate.
5.3.1 Description of radio systems in the technical study The various areas of use and systems analysed have been chosen due to their different characteristics. Some of the systems analysed are not specified for use in bands III, IV and V. The technical parameters have then been adjusted to give an idea of the capacity that could possibly be made available for a corresponding service in bands III, IV and V. A number of systems are presented below that are used to model the various areas of use and application.
When different system designations are used (for example WiMAX and UMTS), this should consequently not necessarily be interpreted to mean that radio equipment already exists that uses the frequency band referred to in the study.
5.3.1.1 T-DAB and other systems with a corresponding radio interface
T-DAB51 is a system for transmitting terrestrial digital sound broadcasting. This system uses OFDM-based52 technology and is planned in 1.536 MHz frequency blocks. Other systems, such as T-DMB53 and DAB-IP,54 are available that are equivalent to T-DAB from a frequency planning perspective.
5.3.1.2 DVB-T and other system with a corresponding radio interface DVB-T is a system for broadcasting terrestrial digital television. The DVB-T standard uses a number of variants with different modulation levels and code rates to adapt the system to the different requirements for capacity and robustness. In the study, an HDTV system is assumed to be completely based on the DVB-T standard, the only difference being that only one or a few programmes can be transmitted in each DVT-B network. When DVB-T is normally used for SDTV,55 4 to 6 programmes are transmitted in each network. From a planning point of view, there is no difference between DVB-T for SDTV and DVB-T for HDTV. DVB-T is generally planned in frequency channels on 7 MHz in band III and on 8 MHz in bands IV and V.
51 T-DAB: Terrestrial - Digital Audio Broadcasting, a standard for broadcasting terrestrial digital sound broadcasting 52 OFDM: Orthogonal Frequency Division Multiplexing, a modulation technology for radio broadcasting 53 T-DMB: Terrestrial Digital Multimedia Broadcasting, , technology that uses T-DAB for the transmission of multimedia (for example television content) 54 DAB-IP: technology that uses IP for the transmission of multimedia services in T-DAB networks 55 SDTV: Standard Definition Television, standard for broadcasting television in normal definition
52 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
5.3.1.3 DVB-H/MediaFLO and other systems with a corresponding radio interface The DVB-H system is a further development of DVB-T that has been specially adapted to be used for the broadcasting of digital television to portable terminals. Today, DVB-H receivers have primarily been developed for bands IV and V. However, there is nothing that prevents DVB-H from being used in band III, but it is more difficult to build in antennae with good reception characteristics for band III. MediaFLO is a system for transferring data to portable terminals that, like T-DAB and DVB-T, uses OFDM technology. In this study, the differences between DVB-H and MediaFLO are considered to be so small that they can be handled equally from a frequency planning perspective.
5.3.1.4 WCDMA/MBMS and other systems with a corresponding radio interface
MBMS56 can offer broadcasting services via the existing mobile telephony networks, that is to say either WCDMA57 (UMTS) or GSM58 EDGE.59 The MBMS system utilises 5 MHz frequency channels. As the infrastructure for mobile telephony is used, the interaction between the user and the service provider is also facilitated, which cannot be directly achieved through traditional broadcasting.
Existing WCDMA systems are not primarily adapted to the spectrum in question. Consequently, the field strength values are recalculated from 2 GHz to the spectrum in question. Owing to the absence of exact planning criteria for MBMS via UMTS, the criteria that applies for the UMTS system is used. The calculations are made for the downlink only, i.e. from the base station to the terminal.
5.3.1.5 WiMAX and other systems with a corresponding radio interface
WiMAX60 is a collection of standards based on OFDM technology that can be used to offer wireless broadband services (compilation of standards based on IEEE 802.16). There are currently two versions of WiMAX standards. One standard (802.16-2004) is used for fixed and nomadic services and manufacturers have had their equipment certified. The other standard (802.16-2005) is used for mobile communications services, but certification of equipment for this is not yet available. Equipment is starting to appear on the market and is available both for indoor and outdoor use. There are also modules for laptop computers. Currently, the frequency bands 3.5 GHz and 5.8 GHz are primarily used for WiMAX. The field strength values in the study have been 'rescaled' to the frequency bands for the calculations of the use of WiMAX systems in bands III, IV and V.
56 MBMS: Mobile Broadcast/Multicast Service, technology that offers, among other things, broadcasting services in mobile telephone networks 57 WCDMA: Wideband Code Division Multiple Access, a modulation technology for radio 58 GSM: Global System for Mobile Telephony, a standard for digital mobile telephony 59 EDGE: Enhanced Data Rate for GSM Evolution, technology that enhances data capacity in GSM 60 WiMAX: Worldwide Interoperability for Microwave Access
National Post and Telecom Agency 53 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
The calculations are made for the downlink only, i.e. from the base station to the terminal.
5.3.1.6 Radio usage exempted from licence obligation
WLAN61 is the term for local wireless networks based on, for example, the IEEE 802.11g standard and optimised for indoor performance on shorter distances (up to 100 metres). This system is designed to serve up to around ten users per base unit. A bandwidth of approximately 22 MHz makes it very difficult to use WLAN technology on the 7 or 8 MHz bandwidth considered in the study. In order to be able to use WLAN in the frequency bands in question, it would be necessary to release three adjacent television channels in bands IV and V to use WLAN systems. This is hardly realistic taking into consideration the current frequency situation. Consequently, no further analysis of WLAN has been conducted. However, the characteristics of the system in bands III, IV and V are theoretically very similar to those given for WiMAX.
The IEEE P802.22 standard is a new proposal for a standard to facilitate wireless broadband in the frequency band 54 – 862 MHz. This standard is based on a proposal for a regulatory framework published by the USA's Federal Communications Commission, in which it is proposed that the use of wireless broadband, where user terminals are exempted from a licence obligation, should be enabled in the frequency bands used for television broadcasting. Usage of this new standard has been claimed to provide coverage within a distance of up to 40 km from the base station.
5.3.2 Assumptions used for the study In all three scenarios it is assumed that the five DVB-T networks (or networks corresponding to a data capacity of 110 Mbit per second in Scenario 3) have been put into operation in bands IV and V and covers at least 70% of Swedish households, and two nationwide T-DAB networks have been put into operation in band III.
5.3.2.1 Band III (174 – 230 MHz) Two nationwide T-DAB networks are expected to have been rolled out in band III covering 98 per cent of the population. It is also expected that both of the existing T-DAB networks will be exclusively available on channels 12 (223-230 MHz) or 13 (230-240 MHz). The possibility of using channel 12 in Sweden for other services has also been investigated.
5.3.2.2 Bands IV and V (470 – 862 MHz) Five DVB-T networks for SDTV are assumed for Bands IV and V, each with a data capacity of 22 Mbit per second. Where the study has identified opportunities to use system parameters for DVB-T other than the parameters currently used, it
61 WLAN: Wireless Local Area Network
54 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
has been assumed that the networks will provide a total capacity of 110 Mbit per second, that is to say the same capacity as the existing five DVB-T networks. 650 MHz was used as a reference frequency for the calculations for bands IV and V.
The spectrum that may potentially be used for new systems is calculated in addition to the spectrum used for the five existing DVB-T networks and the two assumed T-DAB networks.
A number of typical systems have been studied, which are based on DVB-T, DVB-H/MediaFLO, T-DAB/T-DMB, UMTS/MBMS and WiMAX (see Section 5.3.1 for a more detailed description of the systems). However, some of these systems are not currently specified for use in these frequency bands (this applies to the UMTS/MBMS and WiMAX systems). They have then been 'rescaled', i.e. the system parameters have been recalculated or adjusted in order to be able to fit into the frequency bands in question. From this it also follows that the calculations for these systems do not refer to equipment currently available.
In preparation for RRC-06 (see Section 4.1.2.2), all countries within the planning area have presented requirements for allocations in band III (174 – 230 MHz) and bands IV and V (470 – 862 MHz). These requirements ('input requirements') are put together usually referred to as the ‘preliminary plan’. HiQ/Progira's technical study has been based on these requirements.
These requirements include both assignments and allotments. 'Assignments' means that the assigned frequency is linked to a specific station (position) with a known characteristic, such as antenna height, power, etc. 'Allotments' means that a specific area is assigned a frequency. It may be appropriate to use allotments in frequency planning where the identity of the individual transmitters and their properties are unknown.
The following limits have been applied when assessing which spectrum may be used for new systems:
• No consideration has been taken of other primary services in the frequency bands, which could be a limiting factor for some channels in relation to neighbouring countries
• The study assumes that neighbouring countries utilise their frequencies for T-DAB and DVB-T according to the preliminary plan. The possibility of neighbouring countries introducing other systems has not been investigated. The possibility of coordinating the use of the frequencies released with other countries has consequently not been investigated either.
• No consideration has been taken of bilateral or multilateral agreements, except those included in the preliminary plan.
• A number of regions in Sweden have been chosen and studied. From this, an assessment has then been made for Sweden as a whole.
National Post and Telecom Agency 55 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
5.3.3 Methodology used for the study Four different Swedish regions have been chosen as a reference for the analyses:
1. Skåne has been exposed to incoming interference from most neighbouring countries. Skåne is thereby considered to be the part of Sweden where it will be most difficult to use spectrum for new systems.
2. Örebro is located inland and is consequently only affected by other countries to a small extent. It should therefore be easier to use spectrum for new systems in this area.
3. Örnsköldsvik is an example of an area where it should be relatively easy to use spectrum for new systems.
4. Stockholm has been considered to be somewhere between the above- mentioned Skåne and Örnsköldsvik regions in terms of level of difficulty.
Four different reference networks have been analysed in each region for each system, which have been called RND1, RND2, RND3 and RND4: everything from a relatively sparse network with a transmitter distance of 50 km (RND1) to a very compact network with a transmitter distance of 2 km (RND4) and two networks in between (RND2 and RND3). The intention was, with these various reference networks, to get an impression of how the results changed on the basis of the infrastructure that was used for transmission. The reference networks represent a hypothetical infrastructure.
The results from these trial areas have been extrapolated to provide a view on the situation throughout Sweden.
For Skåne, an analysis has also been conducted of the spectrum for new systems in a smaller area (Lund). The reason for this is that the earlier analysis required frequencies to be accessible throughout the area in order for them to be deemed usable. This will also enable an insight to be gained about the extent to which frequencies can be used in local areas.
Reference networks have been used to calculate interference from new systems. The reference networks have been dimensioned in such a way that coverage is achieved within the whole area of the reference network. All reference networks consist of seven transmitters that are located at the corners of a hexagon, with one in the centre. An open network structure has been chosen, that is to say the transmitters have omnidirectional antennae and the service area is 15% larger than the area of the hexagon formed by the outer transmitters.
A schedule has been provided in Table 11 of how the reference networks have been dimensioned. The power of the transmitters has been dimensioned so that coverage within the service area satisfies the planning parameters assumed. This is shown in Tables 11 and 12 below. When determining the power, no regard has been taken of self interference or variations in terrain for the following reasons. The assumption has been made that the OFDM-based systems have a guard interval that enables coverage with the largest (least dense) reference network
56 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
(RND1). This does not apply to Scenario 3 where national SFNs62 are investigated. No consideration has been given of variations in terrain since such calculations are very time consuming. Some consideration of the terrain has been included when estimating already accepted interference levels. A higher level of accepted interference has been used in Örnsköldsvik.
[RND Name Antenna Transmitter Number of Notes height (m) distance (km) transmitters High site/high power 'Existing broadcast' High site/lower power Dense 'CDMA 450' Low site/low power UMTS/GSM Low site/micro Small cells]
Table 11: Reference networks for the dividend systems (RND)
[RND Name DVB-T/ DVB-H/ T-DAB WiMAX/ MBMS
62 SFN: Single Frequency Network
National Post and Telecom Agency 57 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
HDTV MediaFLO T-DMB BWA UMTS High site/high power High site/lower power Low site/low power Low site/micro]
Table 12: Power [W] per transmitter in the reference network in bands IV and V
[RND Name DVB-T/ DVB-H/ T-DAB WiMAX/ MBMS HDTV MediaFLO T-DMB BWA UMTS High site/high power High site/lower power Low site/low power Low site/micro] Table 13: Power [W] per transmitter in the reference networks in Band III
5.3.3.1 Calculation method 1. The amount of interference (Imax) that the new system tolerates from the 'static surrounding world' is calculated for each reference network. The Imax values are calculated from the Carrier to Noise ratio (C/N). The Imax values therefore need to be adjusted depending on which system interfered with the new system.
2. A compatibility calculation has been made in our preliminary plan for each frequency in the chosen test areas.
3. For Scenarios 1, 2 and 3, a compatibility analysis for the new systems was made in all of the reference networks. The results were compared with the compatibility analysis made in the preliminary plan according to item 2 above. The result of this comparison indicates whether the new systems can coexist with surrounding DVB-T and T-DAB networks in Sweden
58 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
and the surrounding world and whether spectrum can be released when changing from RND1 (high mast/high power) to RND4 (low mast/low power).
The Imax value is a measure of how much interference a system can tolerate. If the interference from other systems on the same channel is above the Imax value in the test area, the channel in question is not usable. Variations in terrain and of the actual transmitter position have not been taken into account when calculating the interference from the reference network, which generally implies higher levels of interference than in reality. Consequently, in the study, another level (Imax + margin) has been used on the accepted interference. The margin varies for the different test areas and has been calculated for the allocated frequencies according to the preliminary plan.
5.3.4 Description of the results of the study The study shows that for systems adapted for rooftop reception (DVB-T and WiMAX), the spectrum for new systems often is not limited to interference from the system, but interference into the system. Hence the spectrum for new systems will not increase if the systems own levels of interference are reduced by using more dense networks. This is seen in the results of Scenario 1 where the spectrum for DVB-T in bands IV and V becomes 4 channels (32 MHz) in Skåne and 12 channels (96 MHz) in Örebro, independent of the size of the reference network. The released spectrum for DVB-T in band III in these two regions is 1 (7 MHz) and 7 (49 MHz) frequency channels respectively.
The study also shows that for systems adapted to portable outdoor reception (DVB-H, MediaFLO, T-DAB/T-DMB and MBMS/UMTS), the spectrum for new systems is normally limited by outgoing interference and hence spectrum increases when the interference level is lowered by using more dense networks. In Skåne, the spectrum for bands IV and V for DVB-H/MediaFLO varies between 0 channels for the least dense network and 15 (120 MHz) for the most dense. The variation for MBMS/UMTS is less: 11 channels (88 MHz) for the least dense networks to 15 channels (120 MHz) for the most dense.
It is worth noting that one can always use a certain frequency or channel independent of the interference situation if one is prepared to build a transmitter network dense enough, with power adjusted to the incoming interference. The effect that increased power in the reference network would have on the spectrum for new systems has not been investigated.
5.3.4.1 Scenario 1 – Existing infrastructure for digital television It is assumed that the existing infrastructure for DVB-T is used in Scenario 1, with the assumptions made in Section 5.3.3.
Bands IV and V In Skåne, four 8 MHz channels can be released for DVB-T (32 MHz) in bands IV and V. Further spectrum cannot be released as this will reduce the outgoing
National Post and Telecom Agency 59 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
interference when changing from RND1 to RND4. The spectrum for new systems is limited by incoming interference from surrounding networks. The same comments also apply for WiMAX, as the networks are planned for rooftop reception.
Higher power is required to achieve coverage for DVB-H/MediaFLO networks, as the networks are planned for mobile outdoor reception by portable terminals. This is the reason why no channels initially can be released with RND1. As the outgoing interference will be reduced, the spectrum for new systems increases from 0 to as many as 15 channels. At the stage when the capacity reaches 15 channels, principally all channels can be used, with the exception of those used in neighbouring areas.
As the incoming interference in Skåne is high, using a system less susceptible to interference, such as MBMS/UMTS, will release 11 channels for RND1, which increases to 15 channels for RND4, as the outgoing interference is reduced further.
The opportunities to utilise spectrum are somewhat better in the Stockholm area compared to Skåne. As Stockholm has fewer neighbouring areas, as many as 19 channels (4 more than in Skåne) can be released for all networks/systems adapted to portable reception.
In Örnsköldsvik and Örebro, the spectrum for new systems is even higher than in Stockholm. The reason is a more favourable interference situation from surroundings networks in these areas. The spectrum for MBMS/UMTS in Örebro is somewhat lower than in Skåne for RND4. The reason is that Örebro has more neighbouring areas than Skåne.
Band III There are only 8 channels, each of 7 MHz, that are available in band III and one of them (channel 12) is, according to the preconditions for this study, used for T- DAB broadcasting. The spectrum for DVB-T increases from 1 frequency channel (Skåne) to 7 frequency channels (Örebro). Örebro can utilise all available frequency channels as interference to and from neighbouring countries is low.
This study has only calculated the possibility of being able to use the frequency channels in their entirety for broadcasts with a particular system. In the case of T- DAB/T-DMB, there is room for four adjacent transmissions in one 7 MHz 'DVB-T frequency channel'. Because of this, the spectrum has been underestimated for T-DAB/T-DMB. This applies in areas where there are restrictions from the T-DAB assignments of neighbouring countries regarding channels other than channel 12, for example in Skåne and in the vicinity of Norway.
The spectrum for new systems in a limited area An analysis has been conducted of the possibilities of using spectrum in a local area in Skåne to see if more channels can be used for, for example, city networks
60 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
(i.e. FWA-type services). The chosen area is Lund, which is approximately 10 kilometres in diameter. Only the two smallest reference networks are used in Lund, as their size best fits the area.
The result shows a general increase in the capacity in Lund compared to Skåne. By using systems that are less susceptible to interference, a maximum of 44 channels in bands IV and V and 7 channels in band III can be used, which is all that is available. There is also an increase in capacity for DVB-T and WiMAX in bands IV and V.
Spectrum for DVB-T The reference network for DVB-T is adapted for rooftop reception, which means a lower requirement on the minimum field strength for reception and thereby also a low Imax value. This means that it is the interference into the network that limits the capacity. Thus, it is not possible to release more channels for DVB-T through minor adjustments to the infrastructure within the area.
It should be noted that it is not the DVB-T system as such that is sensitive to interference. If the reference network had been adapted instead for, for example, portable outdoor reception of DVB-T, greater demands would have been imposed on the minimum field strength for reception and the system would, by definition, acquire a higher Imax value, i.e. be less susceptible to interference. The effect of an increase in power on the spectrum for new systems in more dense DVB-T networks has not been investigated.
Spectrum for DVB-H/MediaFLO The reference networks for DVB-H/MediaFLO have been adapted for portable outdoor reception and are consequently less susceptible to interference than DVB-T (higher Imax value). The interference from the reference network has more impact on the spectrum for new systems. The least dense reference network (RND1) with high power interferes with the surrounding allotments and thereby limits the possibilities for frequency channel assignments. In Skåne, there is no spectrum for DVB-H/MediaFLO with this reference network in bands IV and V. In Stockholm and Örnsköldsvik, with fewer limiting allotments in neighbouring countries, some channels can be used in bands IV and V. By using more dense networks, the interference potential becomes lower and more channels can be released. For example, 20 channels, 13 of them new, are released in Skåne in bands IV and V with the smallest reference network. This means that all channels are used, if the channels used in neighbouring areas (Halmstad, Karlshamn, Vislanda and Copenhagen) are disregarded.
The same result applies for band III, i.e. the spectrum for new systems increases, the more dense the reference network. All available channels (channels 5-11) can already be used from RND2 in Örnsköldsvik and from the small reference network (RND4) in Stockholm. All available channels (channels 5-11) can be used in Örebro.
National Post and Telecom Agency 61 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Spectrum for T-DAB/T-DMB The spectrum for T-DAB/T-DMB is about the same as for DVB-H. T-DAB/T- DMB has a slightly lower Imax value than DVB-H, i.e. is more susceptible to interference, but also uses a lower power which gives a lower interference potential. The spectrum here also depends on the design of the reference network and consequently on its potential for interference.
Spectrum for MBMS/UMTS
MBMS/UMTS systems have a low C/N value,63 which means that relatively low power in the network is required to achieve coverage at the same time as there is low susceptibility to interference. Hence the conditions for a large spectrum for the system are good. All frequency channels can be used with a less dense reference network than is possible with DVB-H/MediaFLO and T-DAB/T- DMB.
The data capacity (Mbit per second) that fits into each channel should be considered when making a comparison of the amount of spectrum that can be used for the various systems. A large usable spectrum does not automatically imply high data capacity. As mentioned above, 15 frequency channels for MBMS/UMTS and 4 frequency channels for DVB-T can be used in Skåne in bands IV and V. Recalculated for data capacity, this is approximately 37 Mbit per second for MBMS and approximately 88 Mbit per second for DVB-T. In test areas where the external interference to the reference network is high (Stockholm and Skåne) and the reference network is sparse (RND1), MBMS/UMTS gives a higher data capacity than DVB-H/MediaFLO. With a denser reference network, DVB-H/MediaFLO will give a higher data capacity than MBMS/UMTS in all test areas. To achieve the required coverage in the network area, higher power is required in the reference networks for DVB-H/MediaFLO compared with MBMS/UMTS. This means a higher outgoing interference for DVB- H/MediaFLO, which limits the spectrum for the sparser reference networks compared with MBMS/UMTS. With a denser reference network, the difference in power between these systems will have less significance and the spectrum for DVB-H/MediaFLO will approach MBMS/UMTS. However, MBMS/UMTS uses 5 MHz bandwidth and consequently cannot optimally use a single 7 or 8 MHz frequency channel
Spectrum for WiMAX Like DVB-T, WiMAX has a low Imax value as the reference network is adapted to rooftop reception and is consequently more susceptible to interference. The density of the reference network does not affect the spectrum for new systems and in Skåne relatively few channels can be used. In the other test areas, with a generally more favourable interference situation, the spectrum for new systems increases.
63 C/N: Carrier to Noise ratio
62 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Summary of Scenario 1 For the main part of Sweden, the spectrum for new systems, subject to the preconditions referred to in Section 5.3.2, with ba low mast/power reference network, will be the following:
• 10 channels (80 MHz) in bands IV and V and 3 channels (21 MHz) in band III for DVB-T and WiMAX
• 15 channels (120 MHz) in bands IV and V and 7 channels (49 MHz) in band III for DVB-H/MediaFLO and T-DAB/T-DMB
• 15 channels (120 MHz) in bands IV and V and 7 channels (49 MHz) in band III for MBMS/UMTS
Along the southern coast of the Baltic Sea in Skåne and on the west coast, using Skåne as the limiting area and assuming that a low mast/low power reference network is used, the spectrum will be the following:
• 4 channels (32 MHz) in bands IV and V and 1 channel (7 MHz) in band III for DVB-T
• 5 channels (40 MHz) in bands IV and V and 2 channels (14 MHz) in band III for DVB-H/MediaFLO and TDAB/T-DMB
• 15 channels (120 MHz) in bands IV and V and 4 channels (28 MHz) in band III for MBMS/UMTS
A local area in Skåne (Lund) has also been analysed in order to find out to what extent frequencies can be reused in more local areas. For systems adapted to rooftop reception, the number of channels in bands IV and V for DVB-T is increased from 4 channels (32 MHz) for the whole of Skåne to 17 (136 MHz) in Lund and for WiMAX from 4 channels (32 MHz) for the whole of Skåne to 11 (88 MHz) in Lund.
If the most dense reference network (RND4) is used, all frequency channels in bands IV and V can, with the exception of the five allocated for DVB-T, be used for systems adapted to portable outdoor reception. In band III, all channels can be used in Lund for systems adapted to portable outdoor reception. However, there is no increase in the spectrum for systems adapted to rooftop reception. It may be assumed that the capacity is at least as good for other local areas in Sweden, as the incoming interference from the surrounding environment in Skåne is high.
The channels released according to the study are scattered over the frequency bands and vary from area to area.
National Post and Telecom Agency 63 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
5.3.4.2 Scenario 2 – Some changes in the distribution network In this scenario, the possibility of another infrastructure for DVB-T within a test area being able to release more spectrum has been studied. What happens if a main station, for example the Hörby transmitter, is replaced with a number of smaller transmitters to reduce interference from the DVB-T network? This analysis has only been conducted for bands IV and V, as band III, according to the preconditions, does not have any DVB-T networks. The possibility of moving frequencies from neighbouring areas has also been analysed.
It can be seen from the results in Scenario 1 that capacity does not differ between the various reference networks in the same test area, except for Stockholm. There is a low interference potential from the surrounding allotment area for the channels that are released in Stockholm (RND1 and RND2). In this case, the low interference potential results from the relatively few allocations made for these channels in RRC-06's preliminary plan (channels > 60). In this specific case, the spectrum may increase with a more dense reference network.
The analysis shows that it is not possible to release more spectrum for other systems with minor changes to the DVB-T infrastructure in an area. However, a reduced outgoing interference improves the possibility of using spectrum for new systems in other areas.
It is possible to move channels from neighbouring allotment areas. Channels can be moved if limitations only arise in relation to one or more neighbouring Swedish allotment areas. A number of channels may be moved to Skåne from Vislanda, Blekinge and Halmstad. It is also possible to increase the spectrum for new systems locally in the other areas tested by moving channels from neighbouring allotments areas.
5.3.4.3 Scenario 3 – Completely new planning of frequency bands in question Scenario 3 investigates the possibility of releasing more spectrum for new systems by developing a completely new infrastructure for the five existing Swedish DVB- T networks. However, these networks shall provide a total data capacity of 110 Mbit per second, i.e. the same data capacity as the current five DVB-T networks.
National SFN
The possibilities of building national SFNs64 for DVB-T with fixed reception have been analysed. Among other things, the DVB-T variants that may be implemented have been investigated together with the number of frequency channels that are required to achieve a total data capacity of 110 Mbit per second. In this analysis, the distance between the transmitters was used together with the heights of the antennae, as referred to in Table 13.
64 SFN: Single Frequency Network, a network with several transmitters that use the same frequency
64 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
In this study, the possibility of implementing two types of national SFN was analysed: closed national SFNs with a transmitter distance of 50 km and an antenna height of 50 metres and open national SFNs with a transmitter distance of 2 km and an antenna height of 20 metres. In an open SFN, the transmitters in the network have omnidirectional antennae, while those in the closed SFN have directional antenna.
17 channels (136 MHz) are required to implement closed national SFNs with a transmitter distance of 50 km and an antenna height of 150 metres that generates 110 Mbit per second. The released spectrum for the new systems would in this case be 256 MHz in bands IV and V.
5 channels (40 MHz) are required to implement open national SFNs with a transmitter distance of 2km and an antenna height of 20 metres that generates 110 Mbit per second. The released spectrum for the new systems would in this case be 352 MHz in bands IV and V.
With the frequencies that are available for use for SFNs in Sweden, according to the preliminary plan in preparation for RRC-06, it is not possible to achieve the sufficient data capacity of 110 Mbit per second. In order to be able to implement this scenario, it would be necessary to have an internationally agreed initiative to enable the planning of sufficient channels for use of SFN throughout Sweden.
Using more dense networks An investigation has been conducted to see if more spectrum could be released in Skåne, Örnsköldsvik and Örebro if the Swedish DVB-T used more dense networks. The analysis is based upon the RND3 reference network, which means a reference network in each allotment area with antenna heights of 50 m and transmitter distances of 10 km.
Spectrum for DVB-T For Skåne and Örnsköldsvik, the spectrum for the new systems does not increase a more dense reference network for DVB-T in Sweden. DVB-T networks are interference limited (low Imax) and the possibilities of releasing more spectrum for new systems is limited by allotments in neighbouring countries. As the Örebro allotment area is basically only limited by Swedish allotments and by using more dense networks and hence a lower interference potential, the spectrum for the new system increases in Örebro from 10 to 14 channels in bands IV and V, i.e. by 32 MHz.
Spectrum for DVB-H/MediaFLO The only change with more dense reference networks for DVB-T is that the spectrum for new systems increases in Skåne (RND2) by 8 MHz. For systems with low susceptibility to interference, like DVB-H/MediaFLO, the spectrum for new systems is limited by its interference potential. Changes that allow a lower interference from surrounding allotments have minor effects on the spectrum.
National Post and Telecom Agency 65 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Spectrum for T-DAB/T-DMB No change in the spectrum can be seen. Like DVB-H, T-DAB and T-DMB are adapted for portable outdoor reception and hence have a low susceptibility to interference.
Spectrum for MBMS/UMTS No change in the spectrum can be seen. Like DVB-H, UMTS/MBMS is adapted for portable outdoor reception and hence has a low susceptibility to interference.
Spectrum for WiMAX Like DVB-T, WiMAX is adapted for rooftop reception and has a low Imax value. More channels could be released if interference from surrounding allotments could be reduced. In Örebro, the spectrum is increased by 2 channels/16 MHz. There are no changes for Skåne and Örnsköldsvik.
Summary of Scenario 3 It is possible to build national SFNs for DVB-T but the numbers of channels that are available according to the preconditions in preparation for RRC-06 are not sufficient to achieve a total data capacity of 110 Mbit per second in bands IV and V; one of the prerequisites of the study. By using more dense DVB-T networks throughout Sweden, the spectrum for new systems will only increase in Örebro for systems adapted for rooftop reception. Örebro is an area in Sweden where the spectrum is limited only by Swedish channel assignments. The spectrum in Örebro increases with 4 channels for DVB-T and 2 channels for WiMAX. This increase in spectrum is assumed to be representative for other areas in Sweden with conditions similar to Örebro.
5.3.5 Conclusions of the technical study The possibility of releasing spectrum for new systems has been analysed based on three different scenarios. In Scenario 1, an investigation was conducted on how much spectrum could be used for new systems alongside the existing five DVB-T networks. In Scenario 2, an investigation was conducted on whether more spectrum could be used for new systems if minor changes were made to the infrastructure of the DVB-T network. In Scenario 3, an investigation was conducted on whether more spectrum could be used for new systems if the development of the DVB-T network was completely changed.
The spectrum for new systems varies between the different systems and test areas. These variations mainly result from the following:
• For systems adapted for rooftop reception (DVB-T and WiMAX), the spectrum is limited by the incoming interference. In the areas regarded as 'tight' from a frequency perspective, such as Skåne, fewer channels can be released than, for example, in Örebro.
66 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
• For systems adapted for portable outdoor reception, the spectrum is limited by the outgoing interference caused by the system. The spectrum for new systems can be increased by using dense networks with less radiating power. However, the effect that a reduced susceptibility to interference would have on the spectrum has not been established, i.e. adjusting the power in the reference networks to the external interference.
The spectrum for new systems varies across all regions and reference networks: for DVB-T between 4+1 (bands IV and V + band III) and 12+7 channels, for DVB-H/MediaFLO between 0+0 and 20+7 channels, for T-DAB/T-DMB between 0+0 and 20+7 channels, for WiMAX between 4+1 and 10+7 channels and for MBMS/UMTS between 11+2 and 20+7 channels. The frequency channels that can be used are scattered over all of the frequency bands. They could be gathered into one or several continuous frequency bands, but this would require replanning at an international level.
To make minor changes to the five DVB-T networks in 'difficult' areas, such as Skåne, as in Scenario 2, has no more than a marginal impact on the spectrum for new systems.
In Scenario 3, the effect of the possibility of building DVB-T networks, such as SFNs, and the effect of using very dense networks was studied. However, with the current planning of bands IV and V for DVB-T, the SFN network cannot achieve a data capacity corresponding to 110 Mbit per second, which corresponds to the five DVB-T networks today. However, a large amount of spectrum will be released if enough SFN frequencies can be coordinated for this type of network structure. Just making the DVB-T networks more dense will not increase the spectrum for new systems in Skåne, although there will be some increase in other less 'difficult' areas.
The data capacity (Mbit per second) that fits into each frequency channel should be considered when making a comparison between the various systems studied. Many released frequency channels (large spectrum) do not automatically imply a high total data capacity.
5.4 The Geneva Agreement 2006 (GE06) and technical preconditions It may be concluded from the outcome of the ITU's regional radio conference in June 2006 (RRC-06) that Sweden has been assigned plan allocations for terrestrial digital sound broadcasting and television in band III (174 – 230 MHz) and bands IV and V (470 – 862 MHz). This has been concluded by the 'Geneva Agreement 2006' (GE06).
GE06 means that in band III Sweden puts into operation one nationwide network (layer) for terrestrial digital TV (DVB-T) and one nationwide and three regional networks for terrestrial digital sound broadcasting (T-DAB). However, in order to put all four T-DAB networks into operation, it is necessary that the frequency band 230-240 MHz is also used in certain areas (see Section 3.3.2). The plan allocations in this frequency band comprise 'allotment areas'. The allotment area
National Post and Telecom Agency 67 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
gives a right to use a certain frequency within a given area. Upon implementation, the area is 'converted' to transmitter locations with the technical parameters then known (assignments).
GE06 provides an opportunity for seven nationwide networks (layers) for terrestrial digital television (DVB-T) in bands IV and V, with some locally enhanced coverage possibilities. The plan allocations in bands IV and V comprise both assignments and allotment areas. In this way, existing digital television is allowed to continue to operate, at the same time as the allotment allocations provide flexibility, for example in the event of future use with another infrastructure.
The plan for analogue television broadcasting, which is also part of GE06, facilitates the continued use, during the switchover period, of Sweden's analogue television that is already in operation. In Europe, the switchover period ends on 17 June 2015.
The possibility of using all of the plan allocations for digital sound broadcasting and television is consequently limited today by the need for analogue television in Sweden and in neighbouring countries to be protected during the switchover period. The use is also limited by certain protective requirements with regard to the digital television and radio of neighbouring countries and the use of neighbouring countries of the frequency bands for other services (see Section 4.1.1.2).
5.5 Summary As of the Geneva Agreement 2006 (GE06), there is a possibility for Sweden to develop one nationwide DVB-T network for terrestrial digital television in band III (174 – 230 MHz) and one nationwide and three regional T-DAB networks for terrestrial digital sound broadcasting. However, developing all four T-DAB networks also means the utilisation of frequency band 230 – 240 MHz in certain areas (see Section 3.3.2).
In bands IV and V (470 - 862 MHz), there is the possibility of developing two nationwide DVB-T networks for terrestrial digital television besides the five DVB-T networks that are already in operation.
The possibility of implementing plan allocations is limited during a switchover period for the protection of the existing analogue television. In Europe, the switchover period will end on 17 June 2015.
The technical study shows that Swedish plan allocations (GE06) can be used for radio communications systems other than DVB-T- and T-DAB networks.
Besides the use of the Swedish plan allocations (GE06) for new systems, it is also possible to introduce radio communication systems with lower transmitted power 'between' plan allocations that can coexist with the planned high power use (reusable frequencies). The possibility of this type of use is limited, among other things, for the protection of the existing transmitters for digital radio and
68 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
television. The possibilities are also limited by the protection that is required for radio use in other countries according to the coordination agreements made.
According to the technical study, the DVB-T networks could be designed in such a way that may enable greater spectrum to be used for other systems. However, one such development requires changes in the planning and design of the existing infrastructure for terrestrial digital television.
In order to be able to release continuous internationally harmonised frequency bands for new systems, it would be necessary to have new international coordination and a coordinated approach between Sweden and all of the neighbouring countries affected.
National Post and Telecom Agency 69 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
6 Study of value of conceivable areas of use
The following section (6.1 – 6.4) is an abbreviated report of the NetLight study. The assumptions and assessments presented are derived from NetLight and should therefore not be considered to represent the standpoint of PTS. PTS may, in future work with, among other things, assigning the licences to use radio transmitters and the regulation of the markets for electronic communications, make assessments other than those that NetLight reports below.
PTS has, in its terms of reference from the Government, been directed to highlight the various consequences of the alternative uses of spectrum that may be released in conjunction with the switch-off of analogue terrestrial television broadcasting. In this assignment, the effect on existing and new frequency users was mentioned, among other things, together with the possibilities of using existing infrastructure investments.
PTS commissioned NetLight Consulting AB to produce a study65 based on the results of the technical study presented by HiQ/Progira, which would highlight economic aspects, including the value of the various areas of application for the released spectrum. The aim of this study is to put light on the values that the various conceivable areas of application for the released spectrum could possibly add from a consumer, market and social perspective. In its work on the study, NetLight has contacted external stakeholders to gather information and views from them.
6.1 Methodology
6.1.1 Scenarios NetLight has based its analysis of the various conceivable areas of application on the results of the technical study (Section 5 above). NetLight has produced the following areas of application (services) and scenarios (technical parameters to realise services).
1. More SDTV programmes in terrestrial digital TV – 'more SDTV'
2. HDTV in terrestrial digital TV
3. Mobile television (and other services to mobile receivers resembling broadcasting)
4. FWA66 – wireless broadband for fixed reception
65 NetLight Consulting AB, Report – Utredning av användning av frigjort frekvensutrymme i samband med övergången till marksänd digital-tv, 2006 [Investigation of use of released radio spectrum in conjunction with the switchover to terrestrial digital television, 2006. This report is available on PTS's website, http://www.pts.se/Sidor/sida.asp?SectionId=2963 [only available in Swedish]. 66 FWA: Fixed Wireless Access
70 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
5. Mobile broadband/mobile telephony
Besides the areas of application referred to above, there are some further areas that are sometimes mentioned in conjunction with the spectrum released on the switch-off of the analogue television networks. Those mentioned below will not be considered further in this study.
It is expected that there will continue to be a demand for sound broadcasting services. The transmission of sound is supported in principle by all of the areas of application studied, for which reason it is not dealt with separately. However, the clearest demand is in conjunction with mobile television, where it is highly likely that part of the data capacity will also be used for sound broadcasting.
Broadcasting has traditionally expected that content is sent and consumed at the same time. The increased storage capacity of both fixed and mobile terminals facilitate the storage of large quantities of content. The 'datacast' area of application, i.e. transmission of a datastream with broadcasting where the content is received in advance and is kept available for when the user wishes to consume it, may be a more common service in the future than it is today. However, datacast is a description of how a service is used and should not be regarded as a special system from a radio perspective.
6.1.2 Service description, revenue potential and investments NetLight has described the services for each area of application in order to explain what the services studied involve for the end-user.
NetLight has calculated the revenue potential for the different scenarios as the increased value that further spectrum results in for the end-user, rather than revenues that a new stakeholder could potentially get. One consequence of an approach from this perspective is, that services for which there are already now significant quantities of unutilised spectrum assigned in some frequency band, will have very low revenue potential, even if it would be possible for a newly established stakeholder to gain market shares.
In the study, 'investment' means the supplementary investment for existing infrastructure that NetLight has considered to be reasonable to offer for services dealt with in the report. The frequency bands in question are currently used by similar services to those services that are evaluated, for which reason the use of previous investments has been an important parameter in the evaluation. It was not part of NetLight's assignment to investigate the conditions on which market stakeholders could possibly gain access to existing infrastructures. NetLight's financial calculations should not be viewed as complete business models.
6.1.3 Market effects NetLight has dealt with the effects that the introduction of a service area may have on existing markets through mainly qualitative reasoning, based on the stakeholder model that has been produced for the respective areas of application and their scenarios. Examples of factors that have been considered are barriers to
National Post and Telecom Agency 71 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
entry for infrastructure and content as well as infrastructure and service competition.
6.1.4 Social effects NetLight has used a model based on criteria analysis to discuss the value of each scenario from a social perspective. In consultation with PTS, NetLight has identified a number of evaluation criteria and grouped them in five main groups: democracy, promotion of culture, security, use of resources and national growth.
For each scenario, NetLight has added an estimated value from a social perspective for the main groups produced. The result is presented in the form of explanatory text and a pie chart. See also Section 6.3.
6.1.5 Spectrum available One important conclusion from the technical study is the possibility to regionally, or to an even greater extent locally, reuse spectrum that has been assigned for the DVB-T networks in neighbouring countries or other parts of Sweden. The diagram below summarises this result.
UHF Bands IV and V Reusable spectrum Remaining Digital Dividend Internationally coordinated spectrum Coordinated for DVB-T in relevant area Figure 2: Internationally coordinated frequencies and reusable frequencies respectively
The lower, grey (completely coloured in) field shows spectrum that is already currently being used for broadcasting of DVB-T in the respective area, consequently the five DVB-T networks for which programme licences have been allocated by the Government and have now been put into operation under the auspices of Teracom.
The (diagonally patterned) field that is shaded in green shows the further spectrum that following the outcome of RRC-06 (see Section 4.1.2.2) became coordinated internationally for a sixth and seventh DVB-T network for terrestrial
72 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
digital television. It is this spectrum that is generally considered in the discussion concerning released spectrum on the switchover to terrestrial digital TV.
The blue vertical squares show spectrum that, following the analogue network for terrestrial television being shut down, is free enough from interference to be used regionally for terrestrial digital television (DVB-T). In Skåne, where there is a lot of interference from neighbouring countries, this spectrum is the same as the internationally coordinated assignment. Deeper into the country, where regard to neighbouring countries does not need to be considered to the same extent, there is more spectrum with low interference levels. However, in order to simplify the discussion, the possibility of the national use of spectrum is assumed to be the same as in Skåne unless otherwise explicitly stated.
The field shaded in red (red patterned), called reusable spectrum, shows the spectrum that is exposed to interference from DVB-T in surrounding areas, but which is not bad enough to prevent certain systems from functioning that are tolerant to interference. However, outgoing interference from the system in reusable spectrum must be limited so as not to cause interference in DVB-T transmissions. One way of achieving this is to use low masts and low power.
Today, all of bands I, III, IV and V are as a main rule harmonised and coordinated for broadcasting (DVB-T and T-DAB) throughout Europe (see Section 5.4). Any other systems within these frequency bands must consequently be adapted to a surrounding world that is full of transmitters and receivers for DVB-T. The current planning of primarily bands III, IV and V is based on the traditional needs of broadcasting. However, applications, such as mobile telephony/mobile broadband and mobile television, with technology other than DVB-H is more frequency efficient in continuous frequency bands in large areas. This requires a relatively small continuous frequency band, but this spectrum must be free from interference from high power transmitters, for example those used for DVB-T. In order to make it possible to manufacture inexpensive terminals on a large scale, the frequency bands must also be harmonised across national borders, as is the case with, for example, GSM.
In the USA, the Federal Communications Commission has arranged the auctioning of continuous parts of bands IV and V, in total 24 MHz. The licences are unregulated as regards choice of services and technology, but have clear rules regarding radio parameters in order to permit coexistence with existing DVB-T networks in surrounding spectrum and between the various technologies in the new frequency assignment.
6.2 Economic evaluation The analysis shown below shows NetLight's calculations of revenue potential for the five conceivable areas of application that NetLight identified.
National Post and Telecom Agency 73 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
6.2.1 More SDTV programmes in terrestrial digital television – 'more SDTV'
6.2.1.1 Description of area of application The area of application 'more SDTV' means an extension in the range of television programmes of a standard quality (SDTV) in terrestrial digital television. The five DVB-T networks existing today have facilitated a range of approximately 33 SDTV programmes in terrestrial digital television. Two further nationwide DVB-T networks could be developed at most (see Section 5.4). Each new DVB-T network could facilitate six to seven new SDTV programmes. Therefore, there is space for up to 14 new television programme services throughout Sweden if the entire released spectrum is used for more SDTV.
Today digital television programmes are transmitted in the MPEG-2 compressed format and the digital boxes that are currently sold support this format. In this study, it is assumed that even more SDTV programmes will be broadcast in MPEG-2.
Today, Teracom AB is the network operator that mainly owns the infrastructure (masts, etc.) and takes care of the transmission of terrestrial digital TV. Boxer TV Access, as the sole stakeholder, today has the role of service operator (SAS67 and SMS operator68). The range of programmes for terrestrial digital television includes public service television (SVT and UR) that is financed by licence fees, television financed by advertising (TV4, among others), and programmes that the receiver pays to receive (pay TV).
6.2.1.2 Scenario investigated NetLight has defined a scenario in order to be able to analyse the financial possibilities of the area of the application 'more SDTV' through revenue potential and investment costs. This scenario is based on NetLight's assessment of the value of ingoing parameters. Table 14 below summarises these parameters.
67 SAS: Subscriber Authorization System, system for access control (encryption) of digital TV 68 SMS: Subscriber Management System, system for relationship with end-users, which includes, for example, customer services and payment routines
74 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Scenario for the area of application 'more SDTV'
Reference technology DVB-T
Masts and transmitters 80 new transmitters with high power on the existing high masts
Chosen coverage 98% population coverage
Number of internationally coordinated frequency 1 per DVB-T network channels
Number of reusable frequency channels -
Number of network operators 1
Range 6 more SDTV programmes per DVB-T network
Table 14: Scenario for the area of application 'more SDTV'
NetLight has estimated the revenue potential to be approximately SEK 180m per year for an additional DVB-T network with SDTV programmes. This amount comprises a willingness on the part of households to pay SEK 119m per year and estimated advertising revenues of SEK 61m per year. It is estimated that there are 724 000 customers who are willing to pay and a payment per customer of SEK 17 per month. If a further DVB-T network was put into operation to add further SDTV programmes, the increase in the revenue potential would, according to NetLight, be less than SEK 180m, but the studies do not contain any detailed calculation of this.
The investment need, linked to an increased SDTV range in DVB-T networks, is comparatively small. The greatest cost derives from the need for Teracom's main stations to be upgraded with a new transmitter for each new DVB-T network. The user can continue to use their existing digital box. NetLight has calculated the investment need to be SEK 130m.
The area of application 'more SDTV' is a pure extension of the current way of using networks for digital television, and the possibility of new stakeholders getting a foothold in the market within distribution and broadcasting is affected to a small extent by the fact that further spectrum could be used for more SDTV. Therefore, it is assumed that the stakeholders in NetLight's study will remain the same, even if a limited number of new programme services are added.
6.2.2 HDTV in terrestrial digital television
6.2.2.1 Description of area of application HDTV represents a development of SDTV, which improves user experience through enhanced quality (higher definition) of the television picture. In Sweden, HDTV has recently been introduced in the market. Several actors within the satellite and cable television markets have plans to launch HDTV programmes. Several stakeholders within terrestrial digital television have also expressed a
National Post and Telecom Agency 75 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
desire to introduce HDTV. HDTV will probably be of greatest importance for television programmes on sport, movies and nature.
The interest in HDTV has grown in recent years, among other things owing to the increase in sales of 'HD ready' flat television screens. Another possible contributory factor for this increasing interest is the forthcoming standards for DVDs in HD quality (HD DVD and Blu-Ray).
HDTV can be broadcast in the MPEG-2 or MPEG-4 compressed formats. MPEG-4 is a compression technology that enables more HDTV or SDTV programmes to be transmitted per DVB-T network with the same data capacity in the bitstream. A DVB-T network can currently only transmit one HDTV programme with MPEG-2 compression. With MPEG-4 compression, a DVB-T network can currently transmit two HDTV channels. There are hopes that it may be possible to transmit more HDTV channels per DVB-T network in the future.
In NetLight's study, it was assumed that MPEG-4 was used as compressed format for the HDTV area of application. Users must in that case acquire an HDTV- adapted digital box that supports MPEG-4, as the digital boxes for terrestrial digital television that households currently have only support MPEG-2. However, digital boxes that support MPEG-4 can also support transmissions in MPEG-2- format (see also discussion in Section 6.5).
6.2.2.2 Scenario investigated NetLight has defined a scenario in order to be able to analyse the financial possibilities of the HDTV area of application through revenue potential and investment costs. This scenario is based on NetLight's assessment of the value of ingoing parameters. Table 15 below summarises these parameters.
Scenario for the HDTV area of application
Reference technology DVB-T
Masts and transmitters 80 new transmitters with high power on the existing high masts.
Chosen coverage 98% population coverage
Number of internationally coordinated 1 per DVB-T network frequency channels
Number of reusable frequency channels -
Number of network operators 1
Range 2 HDTV-programmes per DVB-T network
Table 15: Scenario for the HDTV area of application
NetLight's calculations are based on the assumption that a new nationwide DVB- T network can be developed to provide two terrestrial HDTV programmes. These calculations have also been based on a coverage level of 98 per cent and approximately 30 per cent of households currently receiving terrestrial TV. In
76 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
addition, NetLight has made an assumption that 91.4 per cent of households' television screens will in the long term be HD ready.
In the HDTV scenario, NetLight has estimated a revenue potential of approximately SEK 320m per year for one nationwide DVB-T network. The revenue potential comprises a willingness on the part of households to pay SEK 212m per year and estimated advertising revenues of SEK 110m per year. NetLight has estimated that there are 553 000 customers who are willing to pay and a payment per customer of SEK 32 per month.
The investment need linked to the introduction of HDTV in the terrestrial network is relatively small. The largest cost arises owing to the need for Teracom's main stations to be upgraded with new transmitters for each new DVB-T network. Every user needs to make a significant investment, as a new digital box is required. NetLight has estimated the investment need to be SEK 130m for the development of the infrastructure and SEK 550m for digital boxes for end-users.
6.2.3 Mobile television
6.2.3.1 Description of area of application Mobile television involves television reception in a portable terminal, in most cases some kind of mobile telephone. Mobile television services can be realised by several different technical solutions, of which some, for example DVB-H and MediaFLO, are mainly intended to be used in bands III, IV and V while others, including MBMS, are mainly intended to be used in frequency bands used for mobile telephony. It is assumed that the latter system could also possibly be adapted for broadcasting in bands III, IV and V. NetLight has dealt with systems that resemble the DVB-H and MBMS systems in two different scenarios.
With the current development of five DVB-T networks, it is only possible to develop two nationwide mobile television networks in Sweden in bands IV and V with DVB-H.
According to the technical study, it should be possible to implement MBMS in reusable spectrum. There would, in this case, be significantly more spectrum available than in the DVB-H case.
6.2.3.2 Scenarios investigated
Preconditions The preconditions for the development of DVB-H broadcasting have to a large extent been satisfied. The technology is relatively well adapted for coexistence with the existing DVB-T network and terminals are beginning to reach the market. Trial broadcasting was conducted in Sweden during the summer and autumn of 2006. Other countries have also implemented trial broadcasting.
MBMS for UMTS networks is not intended to be implemented as a broadcasting application in bands III, IV and V in its present form. A number of conditions
National Post and Telecom Agency 77 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
must be satisfied in order for this technology to be utilised completely in the manner anticipated by this report: a) UMTS/MBMS must be standardised for bands III, IV and V, b) MBMS is integrated with a complete UMTS network that also allows uplinks (communication from the terminal to the base station). c) UMTS/MBMS is assumed to be used as broadcasting (downlink only) in bands III, IV and V. This is a precondition for use of reusable spectrum. d) Reuse of frequencies coordinated for DVB-T has not been tried in practice, but it is assumed that this will be feasible in the future if the criteria for sharing can be determined.
Scenario definitions NetLight has defined two scenarios to be able to analyse the financial possibilities of the mobile television area of application through revenue potential and investment costs. Table 16 below summarises the important parameters.
78 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Scenarios for the mobile television area of application
DVB-H MBMS
Reference technology DVB-H MBMS
Masts and 600 new transmitters with relatively high 600 new transmitters with relatively low transmitters power. 200 new, relatively high masts to power. 200 new, relatively high masts to be added. In addition, 400 repeaters are be added. In addition to this, required for indoor coverage. approximately 400 base stations for UMTS with MBMS transmitters for indoor coverage.
Chosen coverage 90 % population coverage and indoor 90% population coverage and indoor coverage. coverage.
Number of 1 - internationally coordinated frequency channels
Number of reusable - 5 frequency channels
Number of network 1 5 operators
Range 26 mobile television programmes (256 5 x 6 mobile television programmes (256 kbps mobile television channel kbps mobile television channel bandwidth, 6.6 Mbps total bandwidth per bandwidth, 2 Mbps total bandwidth per frequency channel) frequency channel)
Table 16: Scenarios for the mobile television area of application: DVB-H and MBMS
NetLight has calculated a revenue potential of SEK 900m per year in the scenarios for the mobile television area of application (both DVB-H and MBMS). This amount comprises a willingness on the part of mobile subscribers to pay SEK 783m per year and estimated advertising revenues of approximately SEK 100m per year. NetLight has estimated that there are 1 617 000 customers for both DVB-H and MBMS who are willing to pay with an average willingness to pay of SEK 50 per customer and month.
In the DVB-H scenario, one (1) nationwide DVB-H network is developed.
In the MBMS scenario, NetLight makes the assessment that it is possible to build up the total range from five different operators, but that these operators would probably cooperate on the development of the network to a large extent.
NetLight has assessed that the service range that could be offered in the two scenarios are equivalent from a user perspective. NetLight therefore considers that both scenarios have the same revenue potential.
NetLight's study only deals with investments in infrastructure and terminals, which can constitute a limited part of total costs. However, there is some anxiety
National Post and Telecom Agency 79 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
that licence costs for the rights to programme content in mobile television may be substantial, for example if content providers request further licence charges for programme content that is broadcast in both mobile television and traditional television. Such costs would probably be onerous for mobile television services, which are expected to have lower revenue potential than traditional television.
Scenario 1 – DVB-H NetLight assumes that a DVB-H network that uses internationally coordinated spectrum will be developed. It may be assumed that approximately 600 transmitters will be required for population coverage of 90 per cent. In addition to this, there are also approximately 400 'repeaters' to achieve indoor coverage in urban areas. A transmission network and other equipment are also required, together with a system for managing subscriptions. In total, NetLight has assessed the network investments to amount to approximately SEK 1 400m.
In addition to the network, terminals that support mobile television are also required. NetLight has assessed that the additional investment (i.e. the extra cost for a television receiver in a mobile telephone) in terminals may be estimated at SEK 400 per terminal.
Scenario 2 – MBMS As stated above, up to five parallel transmission networks that all utilise reusable spectrum could be built for MBMS. However, NetLight assumes that the stakeholders will work together on the development of the network, as with the current rollout of UMTS. It is consequently assumed in the study that only two stakeholders would develop MBMS networks. On the basis of this assumption, the networks would attain 90 per cent population coverage with approximately 600 rather high masts. For indoor coverage, the existing UMTS infrastructure is supplemented in some places by MBMS equipment for band III or bands IV and V. Transmission networks and other equipment is also required. According to NetLight's assessment, each complete MBMS network requires an investment of approximately SEK 800m. However, NetLight considers that the use of existing masts means that two parallel MBMS networks, that together utilise all of the spectrum that can be allocated for MBMS, would require a total investment of approximately SEK 1 400m.
In addition to the network, terminals that support MBMS are also required. As with DVB-H, the additional investment in terminals is estimated at SEK 400 per terminal.
6.2.4 FWA – wireless broadband for fixed reception
6.2.4.1 Description of area of application FWA means that users are offered wireless Internet connections at home or at another fixed location, for example at work. NetLight has adapted the scenario for a data capacity of approximately 2 Mbit per second, which means that the service can be compared with ADSL of relatively good quality. Furthermore,
80 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
NetLight has assumed that the FWA services described offer a quality of service that corresponds to existing broadband services through cable access. In addition to a fixed fitted roof antenna, the user needs to acquire a modem in order to be able to use the service.
Most broadband users currently receive broadband from fibre, cable television or xDSL. Housing in sparsely populated areas or in small villages to a large extent only has access to the Internet via dial-up modem. The users who are currently unable to get a broadband Internet connection would possibly gain access to the service through the development of FWA as this technology can advantageously be used for broadband access in areas where the development of fibre and other infrastructure is not profitable. One advantage of FWA is that, following installation of a central base station, all users can get broadband connection within the range of the base station. However, no cable needs to be laid to the user, which significantly reduces investment costs compared to the development of cable broadband.
For FWA, the total capacity at a base station is shared between the users, which means that different speeds can be offered depending on how many users are using the same cell at a particular moment in time.
There are currently a number of licences in Sweden for the use of radio transmitters assigned for FWA in frequency bands around 2 GHz, 3.5 GHz and 10.5 GHz. National, regional and municipal licences have been issued. The FWA market in Sweden today is small. Stakeholders that have been assigned licences for FWA have only been developing on a small scale to date. The greatest contributory factors for this are stated to be the high price of equipment and low demand from customers.69
The development of FWA systems in frequencies in bands III, IV and V requires lower infrastructure investment per customer covered than developments in the high frequencies that have already been assigned. The business model for FWA is thereby different than for the development of the frequency bands where existing licences have been assigned.
Services resembling FWA could also possibly be offered by those mobile operators who have been assigned UMTS licences and by Nordisk Mobiltelefon, which has been assigned a licence for a new mobile telephone network to replace the analogue NMT450 network. According to the applicable licence conditions, there will be virtually one hundred per cent population coverage. It is reasonable to assume that the operators of these networks will have the possibility of offering 'broadband services' with performance amounting to some hundreds of kbit per second.
69 Analysis of consequences relating to competition and for the consumer with the forthcoming licencing of spectrum for wireless broadband - PTS-ER-2006:20, Stelacon, 2006
National Post and Telecom Agency 81 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
In NetLight's study, it is assumed that one and the same operator occupies both a network operator role and a service provider function. However, these roles could be held by two different stakeholders.
6.2.4.2 Scenarios investigated
Preconditions The use of bands III, IV and V for FWA impose certain requirements regarding technical preconditions. a) In the capacity-orientated scenario (see below) for FWA, it is assumed to be feasible to reuse frequencies coordinated for DVB-T. It should be observed that this is the result of theoretical reasoning. However, several interested parties have questioned whether the scenario is practically feasible or not. b) In the coverage-orientated scenario (see below) for FWA, it is assumed that Teracom's infrastructure for terrestrial TV could to a great extent be reused for FWA transmitters. c) The technologies that are available for FWA must be standardised and adapted to the lower frequencies in bands III, IV and V.
Scenario definitions NetLight has defined two scenarios in order to be able to analyse the financial possibilities of the FWA area of application through revenue potential and investment costs. The difference between the two scenarios is that one is coverage-orientated and the other capacity-orientated.
Table 17 below summarises the important parameters for the two scenarios.
Scenarios for the FWA area of application
Capacity-orientated scenario Coverage-orientated scenario
Reference technology WiMAX, IEEE 802.16-2004 WiMAX, IEEE 802.16-2004
Masts and Two perspectives; micro perspective and The development scenario optimised to transmitters macro perspective. A local market maximise coverage with a minimum around a mast is studied in the micro number of masts. 80 new transmitters perspective and the development with high power on the existing high throughout Sweden based on demand is masts. Consequently no new masts. studied for the macro perspective.
Chosen coverage In the macro perspective, 99.8 % 98% population coverage population coverage is studied, realised by approximately 3000 masts according to the specifications referred to in the supplement to the technical investigation conducted by HiQ/Progira. (See also in Appendix A.)
Number of - 2
82 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
internationally coordinated frequency channels
Number of reusable Up to 6 per mast - frequency channels
Number of network Up to one per mast Up to one per mast operators
Range Internet access, 2 Mbps for 200 private Internet access, 2 Mbps for 200 private users/40 business users per mast. users/40 business users per mast.
Table 17: Scenarios for the FWA area of application
The basic precondition for the capacity-orientated scenario is that FWA infrastructure is built where demand for it exists. The basic precondition for the coverage-orientated scenario is to achieve the greatest possible area coverage at the lowest possible investment cost.
Scenario 1 – Capacity-orientated scenario In Scenario 1, NetLight calculated a revenue potential of approximately SEK 0.55m per year and mast in the micro perspective. This comprises a willingness to pay on the part of households and business customers. The fundamental precondition of the scenario is that all users are covered and that it is reasonable to estimate approximately 200 private subscribers or 40 business subscribers per mast. No other revenues have been taken into account.
In the macro perspective, NetLight has calculated a revenue potential of approximately SEK 950m per year subject to the precondition that masts can be built to cover all interested households and businesses.
NetLight has estimated that there are 214 000 households and 26 000 companies that are willing to pay, with a payment per customer of SEK 230 – 1180 per month and a total willingness to pay of SEK 947m per year.
NetLight has studied investments for this scenario from a micro perspective, where infrastructure is only built where it can be justified by the customer base. The infrastructure comprises a mast (approximately 40 m), a WiMAX- transmitter/receiver and IP-based access to the Internet. The investment for each of these base stations amounts to approximately SEK 1.1m, but the possibility of reusing existing masts and buildings as antennae carriers in certain cases reduces the average investment to SEK 1m.
The network is scaled up to 3 000 base stations and this aims to analyse the investment need to develop the capacity-orientated case for very high population coverage, an estimation of approximately 99.8%. According to NetLight, the total investment thereby amounts to SEK 3 000m.
Besides the network, the end-user also requires a modem and antennae that support FWA. NetLight estimates this cost at 2 000 SEK per terminal.
National Post and Telecom Agency 83 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Scenario 2 – Coverage-orientated scenario NetLight has in this scenario calculated a revenue potential of SEK 44m per year provided the entire available spectrum is reserved.
The basic preconditions for this scenario are that as large a part of the area of Sweden area is covered with as few masts as possible. As the number of users is directly proportional to the number of masts, this means that the size of the customer groups is limited by technology rather than by demand. In total, the service can, according to NetLight's calculations, be provided to 16 000 households.
An FWA network is being built that uses Teracom's 80 main stations and this aims to attain high population coverage, 98%, with little investment. Consequently, investments will only be required for transmitter equipment and IP-based access to the Internet.
In addition to the network, a modem and antennae supporting FWA are also required. NetLight estimates the costs at SEK 3 000 per terminal.
6.2.5 Mobile broadband/mobile telephony
6.2.5.1 Description of area of application Mobile broadband/mobile telephony, referred to below as 'mobile broadband', means Internet access and telephony from a portable terminal. The service is assumed to be comparable with technologies for wireless data communication or with future developed versions of UMTS.
Several technologies, such as UMTS, CDMA2000, Evolved EDGE and the mobile version of WiMAX (IEEE 802.16e), could possibly be taken into account for use in bands III, IV and V.
6.2.5.2 Scenario investigated The use of bands III, IV and V for mobile broadband imposes extensive demands upon, among other things, standardisation. Internationally harmonised spectrum is in practice a precondition for both cost-efficient production of terminals and coexistence with other services. The technologies that are available for mobile broadband services must be standardised and adapted to the significantly lower frequencies in bands III, IV and V.
NetLight has defined a scenario in order to be able to analyse the financial possibilities of the mobile broadband area of application through revenue potential and investment costs. This scenario is based on NetLight's assessment of the value of the parameters included. Table 18 below summarises these parameters.
Scenario for the area of application 'mobile broadband/mobile telephony'
84 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Reference technology UMTS
Masts and transmitters Development for relatively high coverage. Approximately 600 new medium-height masts need to be built. Certain reasoning is also being conducted on the basis of an alternative wirh 3000 masts.
Chosen coverage 90% population coverage. Certain reasoning has also been conducted on the basis of population coverage of 99.8%.
Number of internationally harmonised channels 2
Number of reusable frequency channels -
Number of network operators 1 operator
Range 1 network with 3G services. Bit speeds of the magnitude of some hundreds of kbps to some Mbps depending on the receiver conditions and loading
Table 18: Scenario for the area of application 'mobile broadband/mobile telephony'
The service referred to in this scenario is mobile broadband services with speeds of around some hundreds of kbit per second. GSM/EDGE and UMTS already facilitate mobile broadband in the most densely populated areas of Sweden. There is relatively little difference between the service for mobile broadband that is provided in the scenario and the services that can be offered by the technologies where spectrum has already been assigned. Even the technological advantages are small compared with other alternatives. NetLight therefore assumes that the revenue potential for a completely new network for mobile broadband services and telephony services in bands III or IV and V would be virtually non-existent.
6.2.6 Outline revenue potential and investment costs for all areas of application Table 19 below provides a summary of the analysis reported above relating to revenue potential and investment costs. Note that the complete analyses should be studied in order to gain an understanding of what aspects and assumptions have formed the basis of the various evaluations. These have to some extent been described previously in PTS's report. More comprehensive information is available in NetLight's report, if required.
More SDTV HDTV Mobile Mobile FWA – Mobile television television capacity broadband (DVB-H) (MBMS) macro
Customers 724 553 1617 1617 214 + 26 0 willing to pay [in thousands]
Payment per 17 32 40 40 230 - 1180 NA customer [SEK per month]
National Post and Telecom Agency 85 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Willingness to 119 212 783 783 947 NA pay [SEK mil per year]
Other revenues 61 110 92 92 - - [SEK mil per year]
Total revenues 180 320 900 900 950 - [SEK mil per year]
Frequency need 8 MHz 8 MHz 8 MHz Reused Reused 2 x 8 MHz Internationally Internationally Internationally spectrum spectrum Internationally coordinated coordinated coordinated harmonised
Investment in 130 130 1400 1400 3000 820 infrastructure [SEK mil]
Investment in 0 550 600 600 480 - terminals [SEK mil]
Table 19: Economic value for all areas of application
6.2.7 Outline of market effects for all areas of application In order to discuss the market effects, NetLight has chosen to deal with the effects that the implementation of various areas of application would have on existing markets, mainly through qualitative reasoning. Examples of factors that NetLight has taken into account are barriers to entry for infrastructure and content, competition for infrastructure and services and regulatory risks. In its report, NetLight has calculated a value for the respective scenario on the basis of a competition perspective, which is reported in Table 20 below.
More SDTV HDTV Mobile Mobile FWA – Mobile television television capacity broadband (DVB-H) (MBMS) macro
Market effects
Table 20: Market effects for all areas of application
86 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
6.3 Social benefit of released spectrum In order to discuss the social benefit, NetLight has used a 'criteria analysis'. NetLight has identified a number of valuation criteria, which form five main groups with sub-groups. These are listed below.
1. Democracy – freedom of expression, access to information/services, geographical equality, demographic equality, class equality
2. Promotion of culture – protecting Swedish culture, protecting diversity, facilitating public service, counteracting harmful elements
3. Security – secure communications, emergency services, environment
4. Utilisation of resources – efficient use of spectrum, efficient use of infrastructure, flexibility, international harmonisation
5. National growth– industrial competitiveness, employment opportunities, efficient entrepreneurship, international status
Refer to NetLight's report for a more extensive description of the sub-criteria and their meanings.
Table 21 below contains a summary of NetLight's analyses of social benefit for the various areas of application and scenarios. The complete analysis contained in NetLight's report should be studied in order to gain an understanding of what aspects and assumptions form the basis of the various evaluations.
More SDTV HDTV Mobile Mobile FWA Mobile television television capacity broadband (DVB-H) (MBMS) macro
Social benefit
Democracy
Promotion of culture
Security
Utilisation of resources
National Post and Telecom Agency 87 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
National growth
Table 21: Social benefit for all areas of application
6.4 Conclusions of the study The conclusion drawn in NetLight's study is that several conceivable service applications have the potential of generating annual sales of the magnitude of some hundreds of millions of crowns. The investment costs for infrastructure differ between the various services, but are of an overall magnitude that suggests that there are opportunities for profit-driven business models for several of the areas of application. There is only sufficient space for two further nationwide DVB-T or DVB-H networks in the internationally coordinated spectrum in bands IV and V. The 'more SDTV', HDTV and mobile television with DVB-H areas of application thus compete for the same limited spectrum. FWA and mobile television with MBMS is assumed to have the possibility of reusing parts of the spectrum that are coordinated internationally, although it has already been assigned another area of application (DVB-H or DVB-T). Even if the coordinated spectrum is filled, there will still be room for additional services. A large reusable spectrum may be available locally according to the technical study; as much as 300 MHz in some cases. A more careful analysis should be implemented to study the opportunities for coexistence between new systems in reusable spectrum and systems in internationally coordinated spectrum (including the five existing DVB-T networks).
88 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
7 Conclusions Radio frequencies are a limited resource and they should be used in the most efficient way possible to achieve the greatest benefit to society. Because of the development of competition within the field of communications, convergence and the rapid development of technology, PTS considers, as does, for example, the EU Commission, that central planning of the spectrum often cannot satisfy the principles of the greatest possible public benefit, accessibility and innovation. There are of course areas where a central planning of the usage ought to be utilised in the future. Examples of such exceptions are, for example, radio usage for public safety (e.g. police, defence, rescue services) and internationally harmonised radio usage (e.g. civil aviation, maritime traffic, space, research). But for many other – not least commercial – services, a general starting point is that the greatest benefit to society of the usage will be if the spectrum is used for the services where demand and willingness to pay is the greatest. Consequently PTS considers that technology and service-neutral licences, which provide licence holders with the opportunity to adapt to the ongoing development of technology and demand in the market, should be a guiding principle when issuing the licences for the use of radio frequencies.
7.1 Spectrum that can be used when analogue television broadcasting is switched off
Band I (47 – 68 MHz) There are no plans to use Band I (47 – 68 MHz) for broadcasting following the switchover to terrestrial digital television, which means that all of this frequency band of 21 MHz can be used for new systems. PTS considers that there is little commercial interest in the use of band I. However, the Swedish Armed Forces have expressed an interest in this band. There is also interest from amateur radio users.
Band III (174 – 230 MHz) Under RRC-06, Band III (174 – 230 MHz) is planned for one nationwide and three regional T-DAB networks and one nationwide DVB-T network. There is currently one T-DAB network (twelve transmitters) in operation in band III.
As of the switch-off of analogue television broadcasting, band III will no longer be used for television broadcasting. The Government has decided not to further extend digital sound broadcasting in Sweden. Band III, i.e. 56 MHz, would therefore be entirely available for new systems.
The frequency band 230 – 240 MHz is not included in band III. However, the precondition for putting all four T-DAB networks into operation is that the frequency band 230 – 240 MHz is also reserved. The Swedish Armed Forces have to PTS expressed their interest in the use of this band.
National Post and Telecom Agency 89 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Bands IV and V (470 – 862 MHz) Under RRC-06, bands IV and V (470 – 862 MHz) have been planned for digital terrestrial television. According to the plan, Sweden has the possibility of developing up to seven nationwide internationally-coordinated DVB-T networks. In the event that existing broadcasting of terrestrial analogue television was transferred to terrestrial digital television, only one such DVB-T network would need to be utilised. In this case, 336 MHz could possibly be released for other usage. However, the Government, as of the switchover to terrestrial digital television in Sweden, has assigned licences for programme undertakings to broadcast programmes in networks corresponding to five DVB-T networks. Consequently, 280 MHz of the spectrum that will theoretically be released has already been reserved for terrestrial digital television. Remaining spectrum would then correspond to two nationwide internationally-coordinated DVB-T networks, i.e. 112 MHz.
PTS's conclusion: At least 189 MHz can be released through the switch-off of analogue television broadcasting.
Reusable spectrum The frequencies that are used for digital TV are planned in a way that the same frequencies are not used for two adjacent areas. 'White space' are channels that are planned for terrestrial digital television, but where there are no transmitters in a particular geographical area. These channels are exposed to some interference from neighbouring areas. The frequency channels that are not used for digital television in an area may be reused for other usage, subject to the precondition that the technical criteria for coexistence can be determined.
Consequently, the spectrum that is described above could, in addition to the internationally-coordinated spectrum that is released as of the switch-off of analogue television broadcasting, possibly be used for new systems. The theoretical size of the spectrum in bands IV and V is 240 MHz. PTS estimates that the reusable spectrum could amount to as much as 200 MHz, taking into account frequency channels that cannot be used owing to coordination with other countries and channels that are used for supplementary transmitters that provide coverage in addition to Teracom's main transmitter network ('gap filler transmitters').
PTS's conclusion: There is a large hidden resource in reusable spectrum – both as regards usage and financially.
The possibility of releasing continuous frequency bands The spectrum that, according to the view of PTS, may be used for new systems, in addition to the five DVB-T networks in bands IV and V, is not gathered in one continuous frequency band, but consists of different frequency channels in different geographical areas.
90 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
The existing DVB-T networks will need to be replanned in order to gather spectrum that is not being used for DVB-T in bands IV and V into a continuous frequency band. However, Sweden cannot implement such replanning unilaterally. Replanning that releases spectrum in a continuous band in a larger geographical area must therefore be implemented at an international level.
7.2 Possible services in the spectrum after the switch-off of analogue television broadcasting The spectrum in bands III, IV and V can, following the switch-off of analogue television broadcasting, be used for several different kinds of services. These are reported below.
1. More SDTV programmes in digital terrestrial television – 'more SDTV'
2. HDTV in digital terrestrial television
3. Mobile television
4. FWA – wireless broadband for fixed reception
5. Mobile broadband/mobile telephony.
In addition to the above-mentioned services, other areas of application may be considered within bands I, III, IV and V. These may involve digital sound broadcasting, low-power transmitters that can be used without a licence and military systems.
7.2.1 More SDTV programmes in terrestrial digital television – 'more SDTV' It follows from the outcome of RRC-06 that in Sweden two new nationwide DVB-T networks in bands IV and V can be built at most, in addition to the five pre-existing DVB-T networks. Two DVB-T networks will allow up to 14 SDTV programmes in an MPEG-2 compressed format.
An extended range of SDTV channels facilitates in the short term a range in the terrestrial network that is to an extent comparable with satellite and cable television. However, a decision to develop DVB-T networks so that the entire bands IV and V are reserved for terrestrial digital television means that these bands would 'be tied up' for the foreseeable future and that any future decision on changes in the bands would be significantly impaired. This would have the consequence of there being no spectrum available for the parallel broadcasting of DVB-T with MPEG-2 and MPEG-4, which in practice makes a gradual transfer between these two compressed formats impossible. A transfer from MPEG-2 to MPEG-4 would in such a case need to be effected by the entire or parts of the channel range being transferred to MPEG-4 format at a given time. Households that only have one digital box, which is adapted to MPEG-2, will then no longer be able to receive the full range of terrestrial digital television.
National Post and Telecom Agency 91 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Another conceivable process for the transfer from MPEG-2 to MPEG-4 would be to use the spectrum that is released on the switch-off of the analogue television networks to parallel broadcasting of the programme range in terrestrial digital television in both MPEG-2 and MPEG-4. In the opinion of PTS, it is reasonable to assume that most of the current range of television channels in the five DVB-T networks could find a place in the two forthcoming DVB-T networks if MPEG-4 compression was used. However, PTS has not implemented any further calculations to verify this within the framework of this assignment.
During a period of parallel broadcasting, households with digital boxes would gradually be able to change to MPEG-4-adapted boxes. Thereafter, some of the DVB-T networks that were used for parallel broadcasting could be shut down. Thereby the spectrum could be released and, in the way described in this report, used for different areas of application.
7.2.2 HDTV in terrestrial digital television HDTV is a development of SDTV that improves the user experience through the increased quality (among other things, higher definition) of the television picture. The interest in HDTV has grown in recent times, among other things, owing to the increase in sales of 'HD ready' flat television screens.
As stated above, two further DVB-T networks can be developed at most in Sweden in bands IV and V. In the opinion of PTS, HDTV in digital terrestrial television requires the use of MPEG-4 compression, as HDTV broadcasting with MPEG-2 compression is far too frequency ineffective (utilises too much spectrum). Two DVB-T networks provide the space for transmitting up to four HDTV programmes with MPEG-4 compression.
Therefore, HDTV broadcasting in the terrestrial network requires, in the opinion of PTS, that the issue of adapting household boxes to a MPEG-4 format is resolved (see above under Section 7.2.1).
7.2.3 Mobile television Mobile television involves television reception in a portable terminal, in most cases some form of mobile telephone. Mobile television services can be realised by several different technical solutions of which some, for example DVB-H and the related technology MediaFLO, are mainly intended to be used in bands III, IV and V, while others, including MBMS, are mainly intended to be used in the frequency bands that are used for mobile telephony.
DVB-H and similar systems A precondition for the development of a nationwide DVB-H network (or similar systems) in bands III, IV and V is that internationally coordinated spectrum is reserved. This means that DVB-H networks compete for spectrum with the possible future development of DVB-T (SDTV or HDTV).
92 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Mobile television tests are currently in progress in Sweden and in other European countries. Furthermore, Finland has decided to assign a national licence for mobile television broadcasting with DVB-H. PTS considers that when the Finnish DVB-H network has been put into full-scale operation there will be a better information-base than exists at present to assess the market potential of mobile television and the value of the service.
MBMS and similar systems In the technical investigation that PTS has commissioned, the opportunities to use spectrum in bands III, IV and V are analysed for systems resembling MBMS, i.e. broadcasting services that utilise technology that is used in the UMTS network. Today this is not a technology that is commercially available in bands III, IV and V.
The technical investigation shows that a system less susceptible to interference, such as MBMS, would potentially have good possibilities of coexisting with existing and future DVB-T networks. Systems resembling MBMS could be used in reusable spectrum and therefore be a frequency efficient alternative in these bands. However, further studies are required in order to be able to draw firm conclusions in these respects.
7.2.4 FWA – wireless broadband for fixed reception This service means that the user is offered Internet access at home or at another fixed place, for example at work. This service requires a directional antenna fitted outside that receives transmissions from the base station. In Sweden, there are a number of licences for FWA in frequency bands around 2 GHz, 3.5 GHz and 10.5 GHz.
There are currently several kinds of radio systems for FWA. One of the most well known is called WiMAX, which is currently being mainly developed for the 3.5 GHz band. FWA technology is not currently in operation commercially in bands III, IV and V.
The possibilities of using the spectrum in these bands for theoretical systems resembling WiMAX have been analysed in the technical investigation that PTS has commissioned. The technical study shows that systems could potentially have good possibilities of coexisting with existing and future DVB-T networks in internationally coordinated spectrum. Furthermore, bands III, IV and V have propagation qualities, which mean that FWA base stations could potentially have a greater range. Therefore, the development of FWA in these bands should be more attractive from a cost perspective than the development of the assigned FWA bands (over 2 GHz) – not least in sparsely populated areas.
7.2.5 Mobile broadband/mobile telephony Mobile broadband/mobile telephony, referred to below as mobile broadband, means Internet access and telephony from a portable terminal. This service is
National Post and Telecom Agency 93 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
assumed to be comparable with the technology for wireless data communications or with future advanced versions of UMTS.
The possibilities of using bands III, IV and V for mobile broadband are analysed in the technical study. A fundamental limitation for this area of use is that the uplink (the link from the terminal to the base station) is not covered by the frequency planning adopted at RRC-06. This means that it is most likely that any deliberations on using bands III, IV and V for mobile broadband must be preceded by new international coordination. Such coordination may also be necessary when releasing a continuous frequency band in a large area (compare above under 7.1), which is the most appropriate frequency planning for mobile broadband systems.
PTS considers commercial opportunities for additional stakeholders offering mobile broadband to be limited in Sweden, as there are already GSM and UMTS networks rolled out that offer services resembling mobile broadband. There are, in addition, the digital systems that are being developed that will replace the analogue NMT 450 network. However, an additional stakeholder into the area of mobile broadband would of course introduce increased competition and reduced prices, which would be of advantage to the consumer.
7.2.6 Other usage PTS has not dealt with sound broadcasting separately in this report. However, this may be expected to be a continuously demanded service in the future. The transmission of sound in a digital form is basically supported in all of the studied areas of application. However, the clearest demand is in conjunction with mobile television, where it is most likely that part of the data capacity will also be utilised for sound broadcasting.
PTS has not commissioned any special technical studies on low-power transmitters in bands III, IV and V. However, it is conceivable that low-power transmitters that are exempted from the licence obligation may be used in these bands if the equipment contains functions that ensure that it is able to coexist with existing DVB-T networks and other high power applications. One way of achieving this could possibly be for low-power transmitters to utilise 'listen- before-talk' technology, i.e. that it searches out a vacant frequency channel in the area where it transmits and receives. PTS has not carried out a separate study in this report of the services that such equipment could possibly facilitate.
The Swedish Armed Forces has during the work on the report presented a desire to gain access to spectrum in band I. The Swedish Armed Forces has also stated that any decision that is made on the use of band III should take into consideration the fact that the frequency band 230 – 240 MHz is used for military purposes for, among others, NATO and it is desirable that the division between broadcasting and military communication in Sweden is primarily adapted to NATO.
Several production companies in the TV sector are currently using spectrum in bands III, IV and V, as well as other bands for programme links and other
94 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
wireless transmission ('Services Ancillary to Broadcasting' (SAB)). A precondition for any future planning or use of bands III, IV and V for new systems is that the issue of SAB is considered.
PTS's conclusion: There are several realistic alternatives to the use of bands I, III, IV and V following the switch-off of the analogue television broadcasting.
7.3 Summary of conclusions
7.3.1 Spectrum has a value Spectrum in the radio spectrum is an indestructible, but finite, asset. PTS's opinion is that a decision on the usage of this asset should be preceded by careful investigations about how the spectrum may be allocated in a way that provides society with the greatest value.
It is explained in Section 3.5 that there are several commercial stakeholders who may be interested in paying large amounts at auctions to gain access to spectrum. The value of the spectrum can therefore be the revenue that the State may receive by assigning the rights to spectrum through payment (for example through charges or spectrum auctions).
Another way to value spectrum is to calculate the public benefit that radio usage creates in the spectrum. Such a calculation may take into account, among others things, factors such as the interest in freedom of expression and diversity within the mass media, access to emergency communications, geographical equality and the possibility of industrial development.
PTS's opinion is that it is possible to achieve great benefits for society with a more efficient and flexible use of spectrum resources. These gains can mainly, in the view of PTS, be expected to benefit consumers and other users by way of reduced prices for and an increased range of electronic communications services.
PTS's conclusion: Spectrum has substantial financial and social value.
7.3.2 The importance of international cooperation The issue of how spectrum should be utilised following a transfer to terrestrial digital television has also been observed outside Sweden.
The EU Commission focuses on the possibilities of releasing spectrum in a coordinated way within the EU. In this way the Commission considers that the greatest economic value from the switchover may be realised, as European business will then have the opportunity to develop goods and services for a common market and not for separate national markets. If the switchover means that a particular frequency band can be released throughout the Community, this will of course also contribute to the Commission's objective of promoting European integration in the radio spectrum policy. The Commission also considers that some of the released spectrum should be reserved for harmonisation at a European level, in particular to satisfy the future needs of
National Post and Telecom Agency 95 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
pan-European communications services. The Commission is of the opinion that released spectrum may be assigned for usage other than for broadcasting and that the assignment should be effected observing the principles of technology and service-neutrality.
PTS considers that it would be of great value if the European countries could reach agreement through coordination on how the entire spectrum that is released as of the switch-off of analogue television broadcasting shall be used. Such coordination would make it possible for European industry to develop products for a very large market and thereby gain advantages of scale and improve competitiveness in relation to other parts of the world.
Therefore, in PTS's opinion, Sweden should not make any decisions regarding the use of spectrum in bands III, IV and V, which would in practice be irrevocable, prior to the European countries making a joint decision on the matter.
PTS's conclusion: International coordination has very great value.
7.3.3 Future technological development As PTS stated above in Sections 7.2.1 and 7.2.2, a decision to reserve available spectrum in bands IV and V for two additional nationwide DVB-T networks means that the spectrum would for the foreseeable future be 'tied' in a way that would not allow the use of any future technology. Furthermore, such a decision would greatly impede future technological development (for example, the switchover from MPEG-2 to MPEG-4) in terrestrial digital television networks.
In PTS's opinion, it would be desirable if spectrum, which had not already been reserved in bands III, IV and V, were to be assigned by an open procedure and on conditions that are technology and service neutral. Such a procedure would enable the use of the spectrum to be changed over time and adapted to new technological developments
In this context, PTS wishes to draw attention to the 'convergence development' within the telecommunications area, which means that networks and services are becoming increasingly merged (see also Section 2.4). Current digital technology means that the limits between, for example broadcasting and land mobile radio are becoming less and less clear, and that this development will continue. In this way, the preconditions for allocating spectrum also change. In PTS's opinion, consideration should be given to not giving different kinds of radio services special treatment when granting licences.
PTS's conclusion: Future technological development should not be impeded through a decision today.
PTS has not provided any recommendations in this report regarding what the spectrum, which is now used for analogue television broadcasting, should be used for when analogue television broadcasting ceases. Such a decision must of course be preceded by broad socio-political deliberations. As stated in the report, there are several realistic areas of use for the spectrum in addition to the traditional use
96 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
for terrestrial broadcasting and television. PTS is of the view that it must be considered whether other uses, for example those described in this report, can bring to society and the consumer greater value than the use for more television services could.
As stated above, PTS considers that it would be desirable if licences for spectrum could be assigned in an open way on conditions that are technology and service neutral. Such assignment procedures would, in the opinion of PTS, provide the best preconditions for the efficient utilisation of the spectrum and also possibly bring with them positive effects in the form of opportunities for technology development and/or economic growth for Sweden.
PTS's conclusion: Deliberations must be conducted concerning whether the spectrum that has been previously used for broadcasting radio and television can be used in other ways that provide increased value for society and the consumer.
National Post and Telecom Agency 97 (107)
The use of radio spectrum following the switchover to digital terrestrial television broadcasting
8 Sources
8.1 Consultative reports prepared within the framework of the assignment XLENT Strategy, Förstudie: Frigjort frekvensutrymme vid övergången till digitalt marksänd TV [Preliminary study. Released spectrum on the switchover to digital terrestrial television] , 2005
HiQ Data AB, Digital Switchover and Spectrum Dividend – Market Status outside Europe 2006
HiQ Data AB/Progira Radio Communication AB, Technical investigation of the usage of the spectrum released on the switchover to digital terrestrial TV, 2006
NetLight Consulting AB, Rapport – Utredning av användning av frigjort frekvensutrymme i samband med övergången till marksänd digital-tv [Report – Investigation of use of spectrum released in conjunction with the switchover to terrestrial digital television], 2006
8.2 Swedish public publications
Public inquiries Swedish Government Official Reports SOU 1996:25 – Från massmedia till multimedia: Att digitalisera svensk television [From mass media to multimedia – digitalising Swedish television]
Swedish Government Official Reports SOU 2005:1 – Radio och TV i allmänhetens tjänst – Riktlinjer för en ny tillståndsperiod [Radio and television in the service of the public – Guidelines for a new permit period]
Government Bills and Communications Government Bill 1996/97:67 – Digital TV broadcasts
Government Bill 2002/03:72 – Digital TV broadcasts
Government Communication 2005/06:66 – Digital radio distribution
Committee Reports Committee on the Constitution Report 1996/97:KU17 – Digital television broadcasting etc.
Committee on the Constitution Report 2002/03:KU33 – Digital television broadcasting
National Post and Telecom Agency 99 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Riksdag Communications Riksdag Communication 1996/97:178
Riksdag Communication 2002/03:196
Material from authorities Radio and TV Authority, Media Statistics 2004
Radio and TV Authority, Media Trends 2005
Radio and TV Authority, Media Trends 2006
National Post and Telecom Agency's Regulations (PTSFS 2005:8) on Exemptions from the Licence Obligation for Certain Radio Transmitters
PTS, Utredning av frekvensplanering för ljudradiosändningar i långvågs-, mellanvågs- och kortvågsbanden [Investigation of frequency planning for sound radio broadcasts in long-wave, medium-wave and short-wave bands], PTS-ER-2006:32
8.3 Material from the EU
Council Conclusions Council Conclusions of 14 November 2005, 14226/05
Commission Decisions Commission Decision 2002/622/EC of 26 July 2002 establishing a Radio Spectrum Policy Group
Opinions from the Commission COM(2003) 541, Communication on the transition from analogue to digital broadcasting (from digital ‘switchover’ to analogue ‘switch-off’)
COM(2004) 507, First annual report on radio spectrum policy in the European Union; state of implementation and outlook
COM(2005) 204, On accelerating the transition from analogue to digital broadcasting
COM(2005) 400, A market-based approach to spectrum management in the European Union
COM(2005) 411, A forward-looking radio spectrum policy for the European Union: second annual report
100 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting
COM(2005) 461, EU spectrum policy priorities for the digital switchover in the context of the upcoming ITU Regional Radiocommunication Conference 2006 (RRC-06)
COM(2005) 646, Proposal for a Directive of the European parliament and of the Council amending Council Directive 89/552/EEC on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities
COM(2006) 334, Communication on the Review of the EU Regulatory Framework for electronic communications networks and services
Opinions from the Radio Spectrum Policy Group (RSPG) RSPG06-120, Request by the European Commission to the Radio Spectrum Policy Group for an Opinion on 'EU Spectrum Policy Implications of the Digital Dividend'
RSPG04-55 Radio Spectrum Policy Group Opinion on Spectrum Implications of Switchover to Digital Broadcasting
RSPG05-102 Radio Spectrum Policy Group Opinion on Wireless Access Policy for Electronic Communications Services (WAPECS) – A more flexible spectrum management approach
Other material from the EU Draft Radio Spectrum Policy Group Opinion on The Introduction of Multimedia Services in particular in the frequency bands allocated to the broadcasting services, 11 May 2006
COCOM05-51FINAL corrigendum, 11 January 2006
8.4 Literature Aegis Systems Ltd, Independent Consulting Ltd, IDATE, Study on Spectrum Management in the Field of Broadcasting - Implications of Digital Switchover for Spectrum Management, 2004
Analysys, Study on conditions and options in introducing secondary trading of radio spectrum in the European Community, Final report to the European Commission, 2004
Hazlett, T.W., Bazelon, C., Rutledge, J., Allen Hewitt, D., Sending the Right Signals: Promoting Competition through Telecommunications Reform, Report to the U.S. Chamber of Commerce, 2004
Hazlett, T.W., Mueller, J., The Social Value of TV Band Spectrum in European Countries, 2004
Nordicom, MedieNotiser 1/2006
National Post and Telecom Agency 101 (107) The use of radio spectrum following the switchover to digital terrestrial television broadcasting
Wormbs, Nina, Genom tråd och eter: Framväxten av distributionsnätet för radio och TV. [Through wire and ether. Emergency of distribution networks for radio and TV] Stiftelsen Etermedierna i Sverige/Swedish Ether Media Foundation, Stockholm 1997
102 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting - APPENDIX 1
APPENDICES Summaries are presented below of the responses that PTS has received in the course of the consultation procedure regarding reports obtained within the framework of this assignment.
National Post and Telecom Agency 103 (107) The use of radio spectrum followinf the switchover to digital terrestrial television broadcasting Contents - APPENDIX 1
Preliminary study: Released spectrum on the switchover to digital terrestrial television Studied conducted by XLENT Strategy
Study submitted 3 November 2005
Comments received Teracom AB, Sveriges Radio, Ericsson, the Nordic public service companies (DR, NRK, SVT, SR, UR, RUV and YLE) and one private person
Summary of comments received Teracom states in its comments that the report contains a number of factual errors and has incorrectly referred to Teracom's views. Teracom also states that there is very great demand for further DAB and DVB-based services. With this, Teracom points out that the demand for DAB is underestimated in the report. Teracom also points out that there are possibilities of reserving band III for DVB-based services. Teracom also reports on its priorities relating to the frequency bands in question. According to Teracom, there is no scope for other technical systems in band III, IV or V.
Sveriges Radio states that it is noteworthy that no representatives from the Swedish radio sector were interviewed during the course of the work.
104 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting - APPENDIX 1
Technical study: Technical investigation of the usage of the spectrum released on the switchover to digital terrestrial TV Study conducted by HiQ Data AB
Study submitted 24 April 2006
Comments received Teracom AB
Summary of the comments received Teracom AB made a number of comments on the report from the technical study.
These relate, among other things, to there being uncertainty regarding what were assumed in the study to be existing structures and the level of coverage at which the networks were estimated. Teracom points out that one of the networks is being developed for population coverage of 99.8 per cent in accordance with a decision made by the Riksdag. For this, a large number of smaller transmitters (approximately 500) are required in addition to the main stations. A further digital network is being developed for a coverage level of 98 per cent, which it is stated requires transmission from a number of smaller stations.
Teracom was doubtful about the methodology used in this study as regards the level of interference (Imax) that could be accepted in relation to reception in the different areas. Among other things, it was stated that there was a risk that the level of interference referred to as possibly being acceptable for the reception of digital television is overestimated and that it would be more reasonable for compatibility calculations between Swedish areas to be based on assignments, i.e. known transmitter sites.
Teracom also points out that it is normally unnecessary to have a guard band between the various services to avoid harmful interference when using different services in the same spectrum.
National Post and Telecom Agency 105 (107) The use of radio spectrum followinf the switchover to digital terrestrial television broadcasting Contents - APPENDIX 1
Market study: Investigation of use of spectrum released in conjunction with the switchover to terrestrial digital television Study conducted by NetLight Consulting AB
Study submitted 5 June 2006
Comments received Radio and TV Authority, Teracom AB, SVT, SR and UR
Summary of comments received The Radio and TV Authority stated in their comments that the authority's position is that released spectrum should primarily be used for the broadcasting of sound radio and television to the public. Technological developments and changes in media consumption habits mean that aspects of diversity and freedom of expression must be viewed in a wider perspective. How the released spectrum should be viewed therefore becomes a very important issue and there are manifest risks in completely handing over to the market to determine the choice of technology and use without, at the same time, protecting the public interest on, among other things, accessibility and geographical equality. The Radio and TV Authority states, that the report has, in a valuable way, taken into account the various aspects that must be considered in this kind of investigation. The valuation models that are used to derive the economic values of the various alternative applications should be viewed against a background of the difficulties related to assessing technologies that have not yet been commercially established.
Teracom states that the television of the future imposes demands for more channels, better definition and mobility. The overall requirements profile will result in all earlier analogue television frequencies being used for television and radio applications. This use will vary over time. At one stage, migration from existing technology to new technology may be important and at another, the need for further services and channels be prioritised. Teracom also states that NetLight, based on the technical investigation by HiQ/Progira, established the term 'reusable spectrum'. However, the report does not indicate the significant uncertainty, both technically and regulatory, about the possibility of establishing other kinds of systems than radio and television broadcasting in the frequency bands in question. Teracom also considers that further studies and simulations are necessary and that it is not possible to base decisions on future frequency usage using this technical report as a starting point. Furthermore, Teracom states that it is not possible to demonstrate any frequency shortage for radio-based fixed broadband (FWA) and that currently mobile telephony and mobile broadband do not fully use the frequency band already assigned Nor could any further need for spectrum in sparsely populated areas be demonstrated.
Among other things, SVT, SR and UR state the following in a joint comment. The view that the frequencies will be released through the switchover to digital broadcasting assumes that terrestrial television as a technology and a medium has
106 (107) National Post and Telecom Agency The use of radio spectrum following the switchover to digital terrestrial television broadcasting - APPENDIX 1
found its final form. However, there are several different developments of importance in progress for the terrestrial network within the area of television in addition to the fundamental change of the transfer to digital broadcasting. Above all, this applies to the development from SDTV to HDTV and the development from basically fixed reception to portable and mobile reception. In summary, the author states that the 'digital dividend' is a relative term that, in order to be afforded meaning, requires positions to be adopted in some fundamental respects. The adoption of these positions depends upon the terrestrial network's basic function and task, namely to act as distribution network for broadcasting services in the most suitable way. Only defining the spectrum that can be used for new services in terms of what is released on the actual switchover from analogue to digital television broadcasting, all other things being equal, locks the development of television media in various ways and in the long term results in the sub- optimisation of frequency use.
National Post and Telecom Agency 107 (107)