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C2WG3 Progress Report Interreg IIIC DICE Component 3 Working Group 2 Interactive Services, Migration, Implementation & Business Opportunities C3WG2 Final Report: Version: Final 1.0 – 31.10.06 CONTENTS Introduction............................................................................................................................................. 2 Executive Summary ............................................................................................................................... 3 C3WG2 membership and contributions. ................................................................................................ 7 Meetings............................................................................................................................................. 7 Work Area .......................................................................................................................................... 7 Market Situation in DICE member countries (DTV) ............................................................................... 8 Definition of Interactive TV (i-TV).......................................................................................................... 9 Summary ............................................................................................................................................ 9 Opportunities for i-TV via mobile synergies ......................................................................................... 13 Consumers’ Definition...................................................................................................................... 14 Mobile TV developments in DICE countries .................................................................................... 14 Overall Conclusions ............................................................................................................................. 15 Best Practice .................................................................................................................................... 17 Recommendations ............................................................................................................................... 17 Glossary ............................................................................................................................................... 18 Acknowledgements .............................................................................................................................. 20 Further Resources................................................................................................................................ 20 ANNEX 1: i-TV in DICE Member Countries ......................................................................................... 21 ANNEX 2: Mobile TV in DICE Member Countries................................................................................ 31 FINAL 1.0 1 06/10/06 Interreg IIIC DICE Component 3 Working Group 2 Interactive Services, Migration, Implementation & Business Opportunities Introduction This document represents the final report of the DICE Project: Component 3 – Working Group 2 (C3WG2). Those in the C3WG2 group were tasked with exploring aspects of Digital Terrestrial TV (DTT) based Interactive Television (i-TV) to include migration, implementation & business opportunities that could potentially be adopted in a standardized manner. The primary objectives of this report are to highlight the different status for each member country’s digital and i-TV platforms plus scope for mobile TV as an i-TV solution. The report then draws some conclusions on best practice elements that could be commonly applied. The report’s content is primarily derived from the output and discussions from four C3WG2 group meetings required under the DICE project and contributions from other members of other DICE groups. It also draws from elements of DICE conferences and other workshops plus trusted recent market analysis sources. The report also points to a number of helpful websites and documents in its Annexes, Acknowledgements and Further Resources sections. FINAL 1.0 2 06/10/06 Interreg IIIC DICE Component 3 Working Group 2 Interactive Services, Migration, Implementation & Business Opportunities Executive Summary • The C3WG2 group was chaired by UK representation and its core membership came from Aus- tria, Germany and Poland. However contributions were gained from all DICE members plus ex- ternal parties invited to attend workgroup sessions at conferences held in Gävle Sweden and Vi- enna in Austria. Activities centred on exploring opportunities to develop take up of the Multimedia Home Platform (MHP) Application Program Interface (API) consistent with the European Commis- sion’s support for open and interoperable standards. • This report considers both enhanced TV and true two way i-TV variants. The former being one- way services without a return channel and including digital teletext, on screen menus and Elec- tronic Program Guide (EPG) access plus also broadcasted applications and downloads stored in digital receivers enabling users to play games select different camera angles or even different events. True interactive services are the “two-way” services running between the consumer and service provider, reliant on some form of return path (telephone line connection; inherent link in a cable or Digital Subscriber Line (DSL) Internet Protocol TV (IPTV) feed; or mobile phone text messaging). • Through the four C3WG2 meetings required by the DICE Project Management plus associated conferences, it became clear that views on MHP and its deployment were extremely polarized. Both Germany and Sweden who had initially supported and launched MHP proactively, had pulled back to include stopping services. Poland and Hungary had yet to introduce Digital Terrestrial Television (DTT) and therefore MHP commercially and only a limited DTT service had begun in Lithuania’s capital city of Vilnius. The UK leads the world for DTV switchover and had over 72% penetration in homes with products based on different platforms and APIs giving no scope for mi- gration to MHP. On the other hand, to support its limited TV service offering, Austria is actively embracing MHP in its forthcoming DTT service launch from October 2006. • In Germany, public broadcaster ZDF had lowered MHP capacity to 200 kbit/s for the benefit of better picture quality and private broadcasters had ended their MHP activities on all platforms. Also German cable operators who had decided to support MHP in their networks in 2005 had not implemented it and now the majority of them have no interest in it. • Sweden’s public service broadcaster, Sveriges Television (SVT) began broadcasting MHP ser- vices on all digital platforms in 2004. However due to there being no commercial MHP receivers available on the market, MHP has failed to make a major impact. This is despite the NorDig re- gional agreement for a standardized API and aims for an open, standardised market with horizon- tal competition across the relevant countries. • DTT and MHP roll outs in both Hungary and Poland have been hindered by political issues. Gen- eral lack of Government support and media law constraints as hit the former while Government changes in 2005 and to the regulatory bodies have impacted Poland. As with Lithuania both face a further challenge from their distribution channels refusing to carry stock of receivers due to uncertainty over use of MPEG-2 or MPEG-4 video compression. • As the longest established DTV market, the UK had a massive and growing legacy of more than 18.6 million products1 deployed in homes spread between satellite (OpenTV/WtvML); terrestrial (MHEG-5 and no return channel); cable (Liberate) and emerging IPTV platforms. • Austria’s new DTT service commencing in October 2006 is to carry just three TV services (ORF1, ORF2 and ATV+). Consequently, MHP is beings supported proactively as a core means to differ- entiate digital from analogue. • The core barriers to MHP adoption were found to be: 1 Ofcom Report: “The Communications Market 2006” Published 10 August 2006 FINAL 1.0 3 06/10/06 Interreg IIIC DICE Component 3 Working Group 2 Interactive Services, Migration, Implementation & Business Opportunities o Costs and Capabilities: A radically higher price for relatively little extra benefit causing distribu- tion channels to reject ranging products. o Legacies and Performance: Maintaining large bases of established platforms plus no radical improvements from new alternatives to encourage adoption. o i-TV demand: Interactivity is not a key driver of DTV take-up. While users may experiment with it initially they will discard i-TV if there is no offer of compelling entertainment based applica- tions reflecting normal user of a TV. • MHP still has a role to play, not least for those European countries yet to deploy DTT in accor- dance with the European Commission’s (EC) policy for new service launches. The EC has reiter- ated its support for open and interoperable i-TV standards. However, it recognizes the technologi- cal and market complexities plus market players’ very different perceptions of interoperability and the fact that interactive DTV has not yet taken off substantially in many member States. Conse- quently, the Commission feels that the DTV market should continue to develop unhindered for the present. It points to further commercial and technical efforts being needed and consideration being given to other interoperable standards such as the Portable Content Format (PCF). MHEG-5
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