‘s digital dividend Germany‘s of and Transmission spectrum internet via broadcast The first analogue-digital television switchover of terrestrial – five years on transmission

Germany‘s digital dividend Deutschlands digitale Dividende Analog-Digital-Umstieg Fünf Jahre nachdemersten über Rundfunkfrequenzen Fernsehen undInternet Deutschlands digitaleDividende

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Contents

Experiences and perspectives of the first analogue-digital switchover of terrestrial television transmission world-wide – five years on...... 5

Digital terrestrial television – switchover and further perspectives...... 7 Concept and process of the switchover in -...... 9 Developments in Germany since the switchover...... 13 Germany and the situation elsewhere...... 17 Funding switchover and the dispute with the EU Commission ...... 20 Digitisation of television infrastructures – a comparison...... 23 Open issues for the future ...... 27 The digital dividend ...... 31 More TV services ...... 33 Mobile television ...... 35 Broadcast spectrum for broadband internet in rural regions – overcoming the digital divide...... 37 The German way to the digital dividend...... 41

Imprint...... 44 LG Touch DVB  5

Experiences and perspectives of the first analogue-digital switchover of terrestrial television transmission world-wide – five years on

On 4 August 2003, analogue terrestrial In the analogue-digital switchover pro­ TV transmission in Berlin was switched cess conducted in Berlin, mabb helped to off completely . With this act, the first secure a reasonable balance of interests switchover world-wide was concluded . of the various parties, thus opening a way which gives credit to the specific Other German regions followed the conditions of the unique German TV Berlin example: Commercial television market . Concerning the digital dividend, ceased analogue terrestrial transmis- Germany has to face up to an even sion in 2005, and the last public-service greater challenge: finding a German broadcasts transmitted over analogue way which can accommodate European capacities will stop at the end of 2008 . and global developments, but is at the The switchover not only ensured com- same time tailor-made to suit the special petitiveness for terrestrial transmission, situation of ’s largest media and thereby in fact preserving it – it also telecommunications market . paved the way for new developments: The following review and analysis of the In Berlin, the first digital dividend was switchover also looks ahead towards a achieved, and the resulting frequency concept for the use of the digital divi- was allocated for mobile TV via DVB-H . dend in Germany, and hopes to contri­ In Brandenburg, broadcast frequencies bute to its realisation . are deployed for the provision of broad- band internet for the first time, starting with a pilot project . mabb, the regulator for commercial broadcasting in Berlin and Brandenburg, has been consistently pursuing the same objective: Taking up the opportunities provided by digital technology to serve the interests of consumers, and initiating new developments . Broadband internet cannot be classified as broadcasting in the traditional sense, nor as typical telecommunication . The Dr . Hans Hege use of spectrum presents one of the key issues awaiting a solution in the future . Here, differing interests face each other, and it is no longer just those concerning the broadcasting sector, but also those relating to the mobile industry and to internet access . Nokia Mediamaster 9820T Digital terrestrial television – switchover and further perspectives 7

Digital terrestrial television – switchover and further perspectives

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“I am more than relieved that no-one took me up on the bet I offered at the start of the Berlin-Brandenburg pilot project so I didn’t lose it. I would have put a lot of money on it … going wrong.

That no-one set a higher sum was not due to the fact that I was considered an outsider, but simply because people simply agreed it would go wrong. …

This idea to say we will really switch off, … that was really courageous … Who would not have put their money on the example of just one poor old lady being enough for the yellow press to make a meal of things for at least three weeks. But: Nothing has happened. Absolutely fascinating …

It wasn’t just courage, it was a lot of really hard work and good planning which surprisingly turned out a success”.

quote Prof . Dr . Axel Zerdick at the 2003 Media Forum Berlin Digital terrestrial television – switchover and further perspectives 9

Concept and process of the switchover in Berlin-Brandenburg

In 1998, the Digital Broadcasting Initia- Switching off analogue transmission casters that the price for the cheapest tive which was led by Federal Govern- without testing DTT as an alternative set-top boxes would drop below € 200 . ment and tied in the German states, would have been perceived as enforced For the comparatively small market in broadcasters and the industry had provision of TV via cable and was not Berlin-Brandenburg, however, it was not earmarked the year 2010 as the deadline acceptable from a political point of possible to set binding specifications for switching broadcast transmission to view . Not doing anything at all would as had been the rule in other countries digital technology . At the time, experts effectively have been a decision against of Europe . The risk therefore remained expected to go digital via DAB, terrestrial TV as it was evident that the whether terrestrial households which while regarding terrestrial television, the economic basis for terrestrial TV was were assumed to be not too technology- results of the 2006 Regional Radiocom- dwindling away . No-one knew whether minded would be able to cope with munication Conference (RRC-06) which digital terrestrial transmission would be digital technology . was to decide anew the coordination of accepted by a sufficiently large number The states of Berlin and Brandenburg frequencies for Europe were seen as the of viewers . mabb advocated a decision amended the Interstate Media Treaty yardstick along which the route to take by the audience and a market test . for Berlin and Brandenburg, thereby would be determined . The concept for switchover was based providing mabb with the legal scope for The analysis conducted by mabb, the on giving up analogue transmission as regulating analogue-digital switchover . regulator in charge of the allocation of only analogue switch-off would free In the Interstate Broadcasting Treaty, the broadcast spectrum in the German states up the transmission capacities required obligation of public-service broadcasting of Berlin and Brandenburg, resulted in for a sufficiently large number of digital to provide services via analogue trans- different conclusions . Terrestrial transmis- services and good reception . GARV, a mission was waived but no provision was sion had fostered the breakthrough of subsidiary of mabb, developed a concept included in the Treaty regarding the time commercial television in Germany, and for the deployment of the capacities and terms for ending analogue transmis- it also played a major role during the which was coordinated with the Regula- sion . coordination of frequencies following tory Authority for Telecommunications Switching off analogue transmission be- German re-unification . Thereafter, how- and Posts (RegTP) . came possible only by coordinating the ever, the number of terrestrial house- In order to receive the enlarged range interests of public-service and commer- holds experienced a sharp downturn in of services available via DTT, however, cial broadcasters . Both were interested the following decade, slumping from 60 consumers needed an additional receiver in an independent route of transmission per cent in 1992 to less than 10 per cent (set-top box) . Subsidising receivers in the and wanted to keep all options for the in 2002 . way in which pay-TV or mobile telephony future use of transmission capacities But even under the comparatively be­ne­ had been financially helped along was open, irrespectively of how they might ficial conditions in Berlin, the additional out of the question; DTT in Germany had look . At the time, this was not yet very frequency spectrum available was not to be based on free-to-air reception . The clear . sufficient to provide a range of services set-top boxes marketed internationally mabb could convince all broadcasters to attractive enough to entice consumers to had to be adapted to include the VHF dare switchover in Berlin-Brandenburg, invest in the necessary receivers . mabb range, but they could benefit from falling thus gathering experience regarding did not consider it prudent to repeat the prices and the synergies resulting from the future use of terrestrial transmission mistakes made during the introduction of the world-wide use of DTT and DVB via capacities with a limited risk only . On regular DAB services . cable and satellite . The market analysis 13 February 2002, an agreement was and the discussions with the receiver signed which set out the key terms of industry convinced mabb and the broad- switchover:

10

DTT take-up Households, in per cent

18

16

14

12

10

8

6

4

2

1999 2001 2003 2005 2007

Source: mabb, based on AGF/GfK and GSDZ data Digital terrestrial television – switchover and further perspectives 11

In a staged process, the first digital modulating them for redistribution in the fected by the switchover, protest could channels started broadcasting via a high- cable networks had to be re-aligned at have been considerable, especially if the power transmitter from October 2002 the expense of the systems operators . popular press had taken the issue up in onwards, providing consumers with a a negative vein . The sentiments at the To help the financially less-well-off basis for their purchase decision . Switch- time are reflected in the quote by media vie­wers with switchover in a socially ac- off of all commercial analogue channels expert Axel Zerdick (see box) . ceptable way, a solution was developed and moving the public-service services to for households entitled to the use of a mabb and the broadcasters had assumed lower-power transmitters on 28 February TV set under the German social benefits that switchover would convince consum- 2003 presented the greatest challenge . system . Together with an institution of ers in the medium term . How positively it These were also finally switched off on 4 the welfare organisations, the acquisition was received in the event and how few August 2003 . of set-top boxes and their distribution consumers actually protested, however, The broadcasters and mabb developed a was organised . For this support which took everyone by surprise . The number joint communication strategy designed was claimed by some 6 .000 households of households acquiring a set-top box to inform the affected households about mabb spent € 732 .000,- exceeded forecasts . And while around a switch-off without causing confusion third of terrestrial households switched The concept also included support for among cable and satellite homes which to cable reception at the invitation of the commercial broadcasters to cover remained unaffected by the switchover . cable operators, cable households in around one third of the transmission The communication was devised in a return made use of the opportunity costs, thus partly balancing the ad- technology-neutral way; it aimed at to take up terrestrial reception . Their ditional financial burden resulting from informing consumers about switch-off number increased with second and third their obligation to transmit their chan- and the various options available with all sets when the prices for receivers went nels via DTT for a minimum five years, their respective advantages and draw- down . This is all the more remarkable irrespective of the acceptance of DTT . backs, rather than at inviting viewers to as around 80 per cent of households in In this way, consumers were provided switch from analogue to digital terrestrial Berlin receive TV via cable, with more with a clear perspective regarding their transmission . than half of homes settling the cable fee purchase decisions . mabb set aside € 4 2. with the rent . The main outlet for communication was million for this purpose . presented by the channels themselves Since switchover, the number of ter- The spectrum freed up as a result of while the most cost-intensive measure restrial households has started to go analogue switch-off allowed further was a letter sent out in February 2003 up again, as the figures for terrestrial commercial and public-service services to all households in which the director reception in Berlin-Brandenburg listed in to go on air . In the commercial sector, of mabb informed households of the the digitisation reports of the German all applicants prepared to foot the costs pending switch-off . mabb also closely regulators prove . of terrestrial transmission could thus be liaised with tenants’ associations and awarded transmission capacities . While consumer interest groups . The cost for in analogue transmission, a mere 12 the communication initiatives amounted services had been available, their number to € 1 .1 million and was borne jointly by rose to 25 with transmission via DTT . the broadcasters and mabb . How consumers would react to switch- Cable and SMATV systems which until off was completely uncertain . And then had taken up the TV channels with although only some 250 .000 of the 1 .8 the highest reach in analogue mode, TV households in the region were af- Clixxun Vube Alpha Digital terrestrial television – switchover and further perspectives 13

Developments in Germany since the switchover

Both the television broadcasters and the TV had already stopped before and the other regions in Germany took a keen broadcasters only faced additional costs interest in the developments in Berlin- without any corresponding benefit . Brandenburg . As feared protests did not Public-service broadcasting, on the other come and acceptance of DTT exceeded hand, could achieve considerable sa­ expectations, agreements for switchover vings by going digital . The expenditure were taken out for other regions invol­ incurred in supplying all areas with a ving both public-service and commercial minimum of 100 viewers with terrestrial service providers . TV which had been covered through a They followed the model developed in surcharge in the licence fee could be Berlin-Brandenburg and built on the saved; supply requirements were cut savings the commercial broadcasters back to 90 – 95 per cent of households . achieved as a result of the switch-off of Switching off filler stations and closing analogue transmission . The communica- down transmitters cut transmission costs tion strategy adopted in Berlin was also for public-service broadcasting by around taken over . half (estimate) . Unlike in Berlin-Brandenburg, an ad- The situation is not, however, the same ditional incentive was developed in some for ARD and ZDF respectively . ZDF could regions for commercial broadcasters by limit transmission to the major urban granting them a preferential position in areas as do the commercial broadcasters, the analogue cable networks in return thus economising even further on trans- for their participating in switchover to mission costs . ARD, on the other hand, DTT . operates its own transmitter network and therefore has a vested interest in The number of homes passed and homes maintaining its transmission infrastruc- connected to DTT went up . ture . The prices for set-top boxes went down In rural areas, DTT is as a rule avail- in line with market developments . Under able for stationary reception via a roof the extended transmission, mobile and antenna . The benefits of mobile recep- portable reception via portable LCD sets, tion and portable indoor reception of the PCMCIA cards and USB sticks developed . public-service channels are also concen- The commercial broadcasters in switch­ trated on the densely populated areas . over concentrated their DTT distribution The digitisation reports of the German mostly in the urban areas including those regulators show the assumed result: regions where they could achieve savings Acceptance for DTT in regions where as a result of analogue switch-off . commercial channels are not available via No switchover was effected in some DTT is clearly lower . densely populated areas such as Leipzig- Halle or where analogue terrestrial transmission of commercial

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Switchover agreements and DTT roll-out in the various regions

February 2003 Switchover agreement Berlin-Brandenburg February 2003 Berlin / Potsdam October 2003 Switchover agreements Northern states and Northrhine-Westphalia March 2004 Switchover agreements , Rhineland-Palatinate, Baden-Wuerttemberg May 2004 Hanover / / Brunswick public-service and Cologne / Bonn May 2004 Switchover agreements and central Germany commercial October 2004 Rhine-Main region November 2004 / Lübeck / Kiel / Schleswig Duesseldorf / Ruhr area May 2005 Munich / Nuremberg / Southern Bavaria

December 2005 Halle / Leipzig Erfurt / Weimar Mecklenburg-Western Pomerania, Lingen / Osnabrueck May 2006 Stuttgart / Heidelberg / Kaiserslautern Aurich / Bielefeld Goettingen/Kassel Wuerzburg, Lower Franconia, Eastern Westphalia-Lippe, Wuppertal, Weserbergland October 2006 Schleswig-Holstein-West coast December 2006 Eastern Bavaria Frankfurt (Oder) / Cottbus public-service regions of Muenster, / Eastern , Chemnitz, Saxon Vogtland, June 2007 Gera / Thuringian Vogtland July 2007 Upper Rhine area, Southern Upper Rhine area October 2007 Harz, Magdeburg / Southern Altmark, Wittenberg November 2007 Aachen, Lake Constance – Upper Swabia, Neckar Alb, Swabia (Bavaria) Baden-Baden / central Upeer Thine, Palatinate / Donnersbergkreis, December 2007 Anterior Palatinate, June / July 2008 roll-out Saxony-Anhalt (North) / (West) August 2008 Ahrweiler / Koblenz end-2008 Trier / Bamberg / Aalen / Pforzheim

Sources: DTT Task Force, Media Broadcast, mabb Digital terrestrial television – switchover and further perspectives 15

DTT technical reach in Germany no . of citizens reached, in million

80

70

60 68 62 50

48 40

30 36 28 20

15 10 13 5 10

0 3

28 .2 2003. 31 .12 .2004 31 12. .2005 31 12. .2006 31 12. .2007

roof antenna room antenna

Source: Media Broadcast Pace Digital TV Adapter Digital terrestrial television – switchover and further perspectives 17

Germany and the situation elsewhere

Switchover in Germany was not driven cable networks was pursued with less cause of their concern to lose votes . And by the ambition of making spectrum energy by the major TV providers as it even if only a small number of house- available for other applications . It thus would potentially enlarge competition . holds is affected, such as, for instance, differs considerably from the approach the homes still depending on analogue For extending the range of services avail- adopted in the USA or in the United TV reception in the UK today, problems able via digital transmission, Germany Kingdom . are seen especially concerning the elderly was in the comparatively comfortable or socially disadvantaged members of Switchover in Berlin was abrupt without position of being able to draw on avail- society . an extended simulcast period . The ratio­ able services which were funded via the nale behind this strategy was that DTT licence fee and/or advertising revenues In Berlin, mabb as a prerequisite for would be accepted by consumers only and could now also be made available switchover took on responsibility and if analogue transmission was disconti­ via DTT . Satellite TV in Germany is de- won the support of the major television nued . Frequency capacities did not allow vised largely for free-to-view reception, providers . Their risk was limited as they for parallel operation, and broadcast- and this model could be transferred to did not have to worry about major losses ers would not have been prepared to terrestrial transmission: Consumers only in audience reach while they gained the shoulder the burden of both analogue pay for the receiver, but do not have opportunity to gather experience for and digital transmission for only a small to pay continuously to receive specific their future strategies in Germany overall . number of households . In 2002, mabb channels . The “region by region” pioneered in Ber- asked broadcasters to chose between Because of the attractive range of free- lin has since been adopted everywhere doing without terrestrial television alto- to-air services in Germany, there was and could also bank on an advantage of gether in the medium term, or to dare no need to develop additional MHP the Federal system, namely innovation in switchover at short notice . applications as happened in Austria; they competition among the German states, With this approach, mabb banked on also did not meet with great acceptance rather than having to contend with the the interest of broadcasters in contin- via cable and satellite . For this reason, smallest common denominator which ued control over a route of transmission there were and are no subsidies for such usually has to be accepted for joint solu- which would secure a better negotiating services in Germany . tions tying in all parties . position vis-à-vis the cable and satellite The biggest question mark, however, The most important experience in Berlin operators . At the time, Liberty Media concerned the issue whether or not in the long run was the message that was attempting to take over the German switch-off of analogue transmission switch-off is possible provided consu­ cable infrastructure . The company also would be accepted . At the begin- mers are presented with a clear and had a vested interest in the provision of ning, prices for set-top boxes were still logical concept and corresponding added contents . in excess of € 200 and there was no benefits . Compared to the situation elsewhere, the experience available in this respect from This communication concept required terrestrial infrastructure in Germany is anywhere . While there was some willing- only limited expense . Credibility pre- characterised by the strong position held ness to introduce a legal provision for sented a core issue . For digital cable and by the established content providers . switch-off in the political debate, no-one satellite television, far more expensive There is only a limited number of chan- wanted to take over responsibility . communication strategies devised later nels for services available while transmis- Switchover scenarios involving politics achieved far less success . sion costs are comparatively high, thus have shown repeatedly that politicians being of interest only for channels with a Social acceptability of switchover was a are only very rarely willing to take great wide audience reach . Digitisation of the key point in the concept, but here, too, risks regarding switchover, especially be- expenditure was limited by comparison Technisat InterDigital-T Digital terrestrial television – switchover and further perspectives 19

to other countries . Due to the continued Unlike in other European countries which reduction in the prices for set-top boxes subsequently adopted national strate- it was not necessary to continue this sup- gies for switchover, in Germany it was port in other regions of Germany . certainly unclear whether the market test conducted in Berlin would work and A comparison with the plans in the UK whether other regions would follow . shows an interesting picture regarding There was no national concept underpin- the expenditure incurred for switchover . ning switchover . The decisions to switch For communication measures, some GBP over were taken elsewhere only after the 200 million (€ 250 million) were provided successful pilot in Berlin . There was – and while support for households exceeds to this day still is – no overall national GBP 600 million (€ 725 million) . As start- plan . ing conditions are largely similar with less than 10 per cent of analogue homes affected at the time of switch-off, the rate of support available per household in the UK is considerably larger than in Germany . It was clear from the outset that the set-top boxes would not be generally subsidised; in this respect, the approach adopted in the USA differed . No promo- tion for set-top boxes as adopted in Austria appeared to be necessary . A German specificity was the role of the network operator, a subsidiary of Deutsche Telekom AG . Switchover was agreed by mabb with the broadcasters without involving the network operator . For switchover to digital transmission, the licences for the network operation had to be tendered anew . The difficult task of switching the transmitter network was achieved in an exemplary fashion but the role played by the network operator concerning communication and the distribution of receivers in no way compares to the efforts undertaken by the cable or satellite providers for their respective infrastructure .

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Funding switchover and the dispute with the EU Commission

For switchover to become a success, it The broadcast groups would not have The German Government, mabb and was essential to secure the participation been prepared to participate in switch­ the commercial broadcasters have taken of both public-service and commercial over and to agree to transmit their major the case to the European Court of First broadcasters in switch-off, and, linked channels via DTT for a period of five Instance; it is still pending . to it, the supply of an extended range of years without a financial incentive . From For the continued progress of analogue- digital services which would be available their point of view, the obvious strategy digital switchover, the case is no longer for a reasonable period of time . No-one would have been to wait and see . of major relevance . The success of the could know in advance how DTT would mabb therefore took out agreements un- Berlin switchover allowed all other be accepted . For investing € 200 in a set- der which the commercial broadcasters regions to switch over without any subsi- top box, however, consumers had to be would be relieved of part of the trans- dies being paid . The major broadcasters reasonably confident that they would be mission expenditure (approx . one third) in Berlin continued transmission even able to watch the services promised via for a period of five years . The same terms though their legal obligation to do so DTT for a minimum period of five years . were offered to all other broadcasters had been suspended . mabb, on the other Care had to be taken therefore that DTT opting for DTT in order to avoid a distor- hand, is still required to limit financial transmission would continue even in a tion of competition among broadcasters . consequences for the broadcasters under situation in which it turned out not to be the agreements . economically viable . The German states which are in charge of such issues did not notify the switch­ Furthermore, the decision of the EU The commercial broadcasters saved costs over concept with the European Com- Commission raises a number of funda- by switching from analogue to digital mission as they held the view at the time mental issues as it neither acknowledges terrestrial transmission in comparison to that the use of licence fee funds (from the specific role held by terrestrial trans- the costs incurred for transmitting the in- which the regulatory authorities are also mission (which has meanwhile become dividual services . However, they also had financed) is not covered by the state aid clearly evident in the debate about the the option to forego terrestrial transmis- provisions of the European Commission . digital dividend), nor the public remit sion altogether without really suffering of the commercial broadcasters whose any major losses in audience reach, as Acting upon a complaint filed by ANGA, provision of services not only has an eco- the households affected would have an association of cable network opera- nomic function, but also holds elementa- switched to cable or satellite reception tors, the European Commission opened ry implications for the dual broadcasting which already dominate reception . When a formal inquiry and eventually ruled the system as a whole . switchover in Berlin was organised, DTT funding granted to commercial broad- was no success anywhere in Europe, and casting to be illegal . In accordance with the business models developed by com- this decision, mabb claimed back the mercial broadcasting at the time already funding which had amounted to € 2 .2 focussed on those routes of transmission million . The Commission, while acknow­ the cost of which they would not have to ledging that switchover can be support- cover entirely on their own, meaning, in ed with some measures, took the view particular, cable transmission . that the commercial broadcasters would have been prepared to take up digital terrestrial transmission even without subsidies, and further argued that other requirements for granting state aid had not been met . Digital terrestrial television – switchover and further perspectives 21

In retrospect it can be concluded that switchover in Berlin and Brandenburg was possible only as it was not made de- pendent on a decision by the European Commission . The EU communications on analogue-digital switchover were issued long after the switchover in Berlin- Brandenburg had been carried out . And precisely because there was no previous experience to draw on and no com- parable case law from other state-aid cases, fully-fledged state-aid proceedings would have taken up so much time that switchover could not have been realised . At the latest after the insolvency of the Kirch Group in April 2002, a mere two months after the start of switchover in Berlin, the opportunity to take out the agreements on switchover would have been irretrievably lost . WISI OA01 Digital terrestrial television – switchover and further perspectives 23

Digitisation of television infrastructures – a comparison

Terrestrial transmission in Germany has services attractive enough for consumers tegic point of view; it was hardly, how- made it to digital a long time before the to invest in the cost for digital receivers ever, suited to demonstrate the added year 2010 which had originally been either by buying or by hiring them . value of digitisation to consumers . envisaged, and also considerably in While cable or satellite can offer a larger Satellite TV and subsequently DTT in advance of the European target 2012 . range of digital services, including all Germany are based on a concept under By comparison, cable and satellite are regional programmes of ARD and all which consumers would purchase recei­ lagging behind . ARD radio channels as well as additional vers but in return would no longer have There is no standard way to digitisation, advertising-funded services which would to pay the cable fee . This could not be and public interest can also differ widely . not find transmission capacity in the changed despite considerable planning Politics concentrate on terrestrial trans- analogue cable with its limited spectrum, and communication efforts on the part mission as it will reap a digital dividend this added benefit does not really con- of ASTRA and the major TV groups trying which can then be shared out . While vince consumers . Vice-versa it is difficult to convince viewers of the new model . there is a general interest in developing for broadcasters to develop new con- Neither the cost incurred in purchasing new economic value via new channels tents competing against the attractive a digital receiver nor the discomfort of becoming available as a result of digitisa- services available already which would be fitting each TV set with its own set-top tion, the dominating interest of network refunded through only a limited part of box presented a major obstacle, as the operators and broadcasters is concen- the television audience . introduction of DTT has proven . Con- trated on opening up new sources of The interest of network operators and sumers would not, however, consider it revenue . content providers in developing new an advantage for them if – unlike with Terrestrial transmission offered and still business models for the digital era to analogue cable – they would have to pay benefits from the fact that unlike cable generate additional income is under- regular cable fees for additional receivers or satellite, there could not be any simul- standable, but at the same time presents and if reception of digital services cost cast transmission, and that consumers the core of the problem: Consumers are more than analogue supply . could be convinced that the new services not interested in helping the industry The major cable operators are now were available only at the expense of to make more profit, but rather decide concentrating their investments on the giving up the old route of transmission . according to their own criteria and development of broadband internet and A strategy as adopted in the UK with benefits . the related marketing which appears to a wide range of digital services com- It was to be expected that operators be more convincing than the marketing plementing analogue supply will make planning to charge extra for services of digital TV . Unlike in an early phase of switch-off rather hard even when digital which had been available via analogue the USA cable industry, there is no major supply reaches 90 per cent . transmission already would come up investment in programme development, DTT in Germany could build on an exis­ against specific difficulties in this respect . nor is distribution of addressable boxes ting range of services which was already But this did not prevent the major subsidised in any major form as planned familiar to consumers through cable and commercial broadcasting groups or the by John Malone (Liberty Media) some satellite distribution . As a result, the typi- pioneers of mobile TV from devising new years ago . As a result, cable will continue cal hen-and-egg problem did not arise business models based on this very ap- to lag behind satellite . Regarding satel- under which digital services are attractive proach . The idea of basic encryption of lite, the added benefit regarding con- only due to additional services while it commercial TV channels and refunding­ tents is also limited, but satellite viewers proves difficult for providers especially both encryption costs and part of the are used to additional receivers and do in the starting phase to offer a range of programme investments via additional not have to pay extra for receiving the revenue was understandable from a stra- advertising-funded commercial channels . Technisat rod aerial Digital terrestrial television – switchover and further perspectives 25

It would be up to the television broad- by the broadcasting groups either as they Consumers and their interests as the casters to agree on a date for the switch- receive an additional fee for agreeing to core function presented the basis for off of analogue satellite transmission; simulcast transmission of their services . the switchover of terrestrial TV transmis- after all, more than 60 per cent of house- Furthermore, each TV set can receive sion . A breakthrough for digitisation can holds receive their satellite TV in digital analogue cable TV whereas there are no therefore only be expected once this mode . And even if the added value does agreements concerning digital recep- is also taken into account for all other not convince every consumer, the bar- tion as yet which would provide the routes of transmission . rier for transition would be low and the necessary transparency and certainty for But even if there are no viable concepts broadcasters could save considerable vie­wers that investing in a new set is safe for analogue-digital switchover of cable sums of money . It would be possible to and future-proof . and satellite, this will not stop digitisa- develop a joint communication strategy Even viewers receiving analogue services tion in general . In that case, digital will along the example of the DTT switchover . can benefit from the advantages of di­gi­ simply find other routes: a great variety At present, however, such an agree- tal storage . DVD recorders and hard-disk of new contents and social networks in ment is not in sight as the plans for basic storage media are now in wide supply . If broadband internet . satellite encryption have not yet been features which consumers enjoyed as at- buried and the resulting confusion as to tractive in the analogue world are taken whether reception via digital satellite will away as a result of the introduction of a incur additional costs for the reception of rights management for digital transmis- commercial channels persists . Some time sion and encryption, viewers will hardly ago, the German regulators suggested take this to present progress or added that the private broadcasters explicitly value . “Added digital value”, however, do without this additional funding for is a absolute condition for the often- their main services (notwithstanding quoted “market-driven” analogue-digital any surcharge for HDTV) . As long as this switchover . step is not taken, neither the regulators The Digital Broadcasting Initiative and nor politics will support switch-off of subsequently the Forum Digital Media analogue satellite TV according to the which is organised by the Federal Minis­ pattern of DTT as neither side can be try of Economics and Technology and interested in pursuing any strategy at the the German states continues to debate expense of consumer interests . And the switchover with the entire industry fact that SES ASTRA earns good money and the trade associations . The Forum, from analogue transmission also plays although useful regarding communica- some role . tion on DTT switchover, showed that The cable operators are unwilling to it ope­rates on the basis of the small- participate in digital switchover projects, est common denominator only and even if it is only pilots, as long as they mainly serves for proclamations or rather have to contend with irritation on the general declarations which only rarely part of their customers . The housing in- reflect the true interests of the majority dustry has taken on the role of controller of participants . on behalf of consumers . And the process of digitisation was not made any easier

26

DTT regions in Germany

Flensburg

Kiel Rostock

Cuxhaven Lübeck Aurich Hamburg Schwerin

Lüneburg Bremen

Hannover Berlin Potsdam Osnabrück Braunschweig Frankfurt/O. Bielefeld Münster

Düsseldorf Göttingen Cottbus Halle Köln Kassel Leipzig Aachen Bonn Siegen Weimar Erfurt Dresden Koblenz Frankfurt/M. Wiesbaden Flensburg Mainz Trier Würzburg Kaiserslautern Saarbrücken Kiel Rostock Mannheim Nürnberg Cuxhaven Lübeck Aurich Hamburg Schwerin Stuttgart Regensburg Lüneburg Ulm Augsburg Bremen München Freiburg Hannover Berlin Potsdam Konstanz Osnabrück Braunschweig Frankfurt/O. Bielefeld Münster

Düsseldorf Göttingen Cottbus Halle Köln commercial and public-service public-service only Kassel Leipzig Aachen Source: www .ueberallfernsehen de. Bonn Siegen Weimar Erfurt Dresden Koblenz Frankfurt/M. Wiesbaden Mainz Trier Würzburg Kaiserslautern Saarbrücken Mannheim Nürnberg

Stuttgart Regensburg

Ulm Augsburg München Freiburg Konstanz Digital terrestrial television – switchover and further perspectives 27

Open issues for the future

Centres of DTT distribution Business models and funding disadvantage compared to arrangements in Italy where matches can be subscribed Switchover involving commercial broad- To date, DTT in Germany has been to individually . casters has been centred on the major developed exclusively on the basis of urban areas while the regions of Leipzig- free TV . Premiere in the end did not However, addressability and the recep- Halle and Stuttgart are not supplied with follow through with initial plans of also tion of programmes against pay are commercial services via DTT . participating in DTT transmission . Regar­ features which are also essential for ter- ding marketing, no attempt was started restrial transmission, raising the same key Public-service broadcasting scaled back in Germany for the development of a issue of consumer-friendly arrangements its supply target to around 90–95 per marketing platform for DTT which even without added costs being charged for cent of households . The concept deve­ in the case of cable and satellite achieved services that are available already . loped by ARD and ZDF is based on these only limited success . target figures and provides for reduced The set-top boxes introduced in Germany terrestrial supply, also restricting port- The commercial sector will critically do not feature addressability; this means able and mobile reception to the major review a model which requires it to cover that new boxes would be needed if centres of population . the entire costs of transmission if trans- consumers wanted to receive additional port expenditure for other infrastructures contents . In this context, the issue of Limited acceptance of DTT in regions goes down and revenues could even be a more efficient encoding technology where commercial services are not trans- scored . It was therefore only logical to could also be tackled . mitted via DTT will in the medium term link considerations for the basic encryp- result in the question whether licence fee tion of commercial services transmitted payers who form a community based on Terrestrial transmission via satellite to a similar approach for solidarity can be expected to fund a very as a public remit terrestrial transmission . limited number of homes being supplied Transmission of television contents via at considerable cost per viewer although Business models for commercial mo- terrestrial capacities is the only means these could be provided with TV services bile TV hold the attraction of address- by which the legislator can guarantee via satellite at considerably less expense . able receivers . This means that it is no television being provided for the people From a strategic point of view, terrestrial longer the service providers who pay for at terms also taking into consideration transmission could also be preserved in transmission but consumers, and new the less advantaged members of so­ a mode under which the provision of sources of revenue can be opened up ciety . In the competition of transmission public-service broadcasting is concen- for the broadcasters . This option is now, infrastructures, terrestrial transmission trated on urban areas in the same way in however, challenged by the fact that DTT has an essential role to play irrespective which this is the case for commercial TV . transmission also permits reception on of the fact that it reaches only a small mobile handhelds . The capacities employed for the DTT pro- part of the population and cannot offer vision of public-service contents in rural In the medium term, platforms for cable such a wide range of services as cable, areas also present a spectrum reserve and satellite transmission are likely to satellite or IP-TV . Switching to terrestrial which might be put to use for internet develop further with the majority of transmission presents a good strategy supply via broadcast frequencies . And contents available only against pay . The capable of countering the potential the more successful this supply deve­ fact that live reports of foot- risk of a dominant market position of lops, the more pressing the question of a ball matches are not available via DTT at the other routes of transmission being review of priorities will become . present is already putting the system at a abused . In view of the encryption plans developed by the commercial broadcast- ers, the legislator must be increasingly

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interested in preserving terrestrial trans- system (e .g . in France), or whether it is But it could make sense all the same to mission as a route for the reception of better to wait for the new version of agree on a receiver specification allowing a minimum supply of free TV . However, DTT, namely DTT-2 (this is the concept for a more efficient encoding system in this means that terrestrial transmission developed by Ofcom for the UK) . The key order to open up future perspectives . If must be awarded a special role among issue here, too, is receivers being avail- development of receivers is sufficiently transmission infrastructures . The scope able to consumers at a reasonable price . advanced to allow for market introduc- and funding available in this respect tion on the one hand, and additional In view of the high market penetration of will also be determined by the outcome contents are made available on the other DTT receivers, a change of transmission of the current legal dispute between hand, this would permit another hard technology of the services already on air Germany and the EU Commission . In the switchover . via DTT could be problematic as long as controversy surrounding DTT switchover the price of the set-top boxes needed for in Berlin, Brussels did not recognise the reception in the new technology exceeds Integrated network for all broad- special role played by terrestrial transmis- the cost of sets on offer in the mass mar- casting contents? sion, insisting instead on “technology ket today by a considerable margin . neutrality” . In line with the tendency of seeing the Simulcast transmission would require ad- digital world initially as a mirror image ditional spectrum . Unlike in the UK, Ger- of the analogue era, separate develop- DTT 2.0 – more efficient encoding many would face more or less the same ments for the transmission of radio Progress of DTT and encoding techno­ problem as during the first switchover and television respectively were set in logy would allow for a greater number in this respect . The UK can utilise more motion despite the fact that from a of channels to be transmitted via the efficient technologies in the spectrum technical point of view, transmission of a same frequency spectrum . However, this becoming available as a result of switch- media is only a matter of the data rate . would require consumers to obtain a off, i .e . part of the digital dividend, while Not being geared to TV channels, DAB new receiver . Analogue-digital switch­ in Germany, the digital spectrum already benefits from the smaller-size multiplexes over is thus followed by the challenge of in use would have to be employed, required . On the other hand, develop- a future digital-digital switchover which resulting in a second “hard” switchover ments in Germany show that there is no also raises the issue of the added value at least in the medium term . sufficient basis for funding a transmission for the consumer again . network based mainly on radio . For such a step, no sufficiently large By comparison, providing additional con- added value appears to be in sight at This would call for making better use tents via a more efficient encoding tech- present . HDTV which in other countries of synergies not only involving DTT and nology would present fewer problems; is also transmitted via DTT, would take DVB-H, but also certain forms of broad- they could in particular include pay-TV up such an amount of spectrum and also cast transmission and internet use . In this services as well as commercial contents cause considerable expense to the small respect, however, the transmitter net- funded via advertising which are distri­ number of households receiving televi- work owned by ARD represents a core buted in regions in which they are not sion via DTT, that there would not be a obstacle as it is devised for traditional yet provided via DTT . Costs for receivers reasonable balance between the added broadcast transmission and thus does will, however, initially be considerably value and the disadvantages incurred in not provide any incentive for opening up higher while audience reach has to be binding capacities for this type of trans- new forms of synergy or new business built up from scratch again . mission . Additional contents currently options . do not offer sufficient incentive in this The international debate is focussing respect . on whether MPEG 4 is to be used on its own as the more efficient encoding Digital terrestrial television – switchover and further perspectives 29

DTT penetration in the German states TV households, in million

16 .8% 15 .6% 14 .8% 14 9%. 13 4%.

8 .2%

5 .7% 4 .3% 4 .5% 4 .6% 3 .2% 2 .4%

Baden- Bavaria Berlin, Hamburg, Hesse Mecklen­ Lower Northrhine- Rhineland- Saxony Saxony- Thuringia Wuerttem- Brandenburg Schleswig- burg- Saxony, Westphalia Palatinate, Anhalt berg Holstein Western Bremen Saarland Pomerania

Basis: 37 .277 million TV households in Germany source: 2008 Digitisation Report Panasonic TU-CT20 The digital dividend 31

The digital dividend LG HB620T The digital dividend 33

More TV services

Looking back at developments so far, Since clearly-defined options for use for the lack of attention paid to the value other purposes were lacking, planning of frequency capacities in Germany in the future use of transmission capaci- the run-up to the switchover in Berlin- ties was left solely to the broadcasting Brandenburg appears quite stunning; sector . The advantages offered by digital this contrasts strongly with the interest transmission were put to use for offering in spectrum which exists in the USA and additional services which were already the UK . And although the auctioning available via cable and satellite; they process of the 3G capacities brought presented the sole feature for keeping a record Euro 50 billion plus to the terrestrial transmission in the game . tax office, broadcasting spectrum was This strategy also provided the financial not rated similarly for its value at the basis for continued transmitter network time . The two worlds were still clearly operation . separate back then . What helped mabb to convince broadcasters of the use of analogue switch-off was more an inkling of its future value . The easiest option at the time would have been “Wait and see”; however, it would have foreclosed the opportunity of participating in any forthcoming distri- bution of transmission capacities . All par- ties involved were aware of the fact that in the future, new functions would be at stake which would be largely dominated by mobility as the sole distinguishing feature of terrestrial transmission over all other routes of broadcast distribution . Mobile broadband internet at the time was as far away yet as was TV consump- tion on mobile phones . Imperial T1 Digitale DVB-T Scartbox The digital dividend 35

Mobile television

DTT was not designed for mobile recep- Regarding DVB-H, it proved more difficult tion . During the DTT project, DVB-H was to define any additional value for con- coordinated which offers two major im- sumers from the start which would have provements over DTT: It features a more been necessary to refund the required robust reception requiring less power receivers, and this problem persists . The and was devised to make TV available on fact that DVB-H would be available for handhelds . reception on handhelds from the start, allowing for billing and offering a subsidy The mobile industry initially saw DTT only system which had been developed by the as a complement to the transmission mobile industry, presented an advan- of moving images in mobile telephony tage . The potential entry barrier was standards such as 3G . These point-to- therefore lower than for DTT . This did point connections involve considerable not, how­ever, solve the second chal- cost for the distribution of contents in si- lenge: convincing consumers to take out multaneous demand by a large audience, a subscription . As with digital cable and and are not sufficiently efficient . digital satellite, it is quite difficult to get In February 2007, the first digital divi- consumers to pay for contents which dend was made available in Berlin for are also available free of charge . Unlike test purposes on channel 39 which had in the approach pursued in the Far East, previously been used by public-service mobile TV in Germany was based on pay . broadcasting . However, development was slowed down as there was no sufficient basis for the provision of receivers and con- tent as had been the case in the DTT switchover in Berlin-Brandenburg . The mobile industry did not wish to conduct a market test but opted for immediate national introduction, having, in return, to contend with a complex consultation process under the Federal broadcasting structure . Meanwhile, trials also started with DMB as an alternative transmission standard . This brought some additional experience, but insufficient transmission capacities and the lack of support on the part of the mobile industry prevented the standard from establishing itself success- fully in the market . Nokia 770 The digital dividend 37

Broadcast spectrum for broadband internet in rural regions – overcoming the digital divide

Switchover and the changing Broadband internet and broadcasting Digital divide – rural regions function of terrestrial transmission at a disadvantage Broadband internet which in Germany The significance of digital terrestrial is transmitted mostly via DSL and is now In rural regions as well as in some city transmission for television today differs increasingly also offered via cable, is outskirts, access to DSL is not available fundamentally from its relevance in the gaining in relevance for broadcast trans- or is lagging far behind . In many in- 1970s and 1980s when TV was only mission . The libraries of the public-service stances, cable does not offer an alterna- available through the air . Today, cable providers permit contents to be watched tive . Broadband internet is available via and satellite present the major routes of at the time chosen by the viewer while satellite, but this mode of transmission transmission, while IPTV is also begin- online services link video, audio and text . has met with only limited acceptance . ning to make headway via broadband The latest study conducted by ARD and The last spectrum auction for broadband telephony networks . The public-service ZDF on online use shows that 14-19-year internet access in the 3 .5 GHz range broadcasters in Germany are no longer olds spend about the same time surfing did not yield the improvements for rural required to supply their TV services via the world-wide web as they listen to regions that had been hoped for as the terrestrial transmission to the entire the radio or watch TV . Mobile phones infrastructure needed there cannot be population . Employing DTT, their cover- provide contents such as “Tagesschau built up at economic terms . The main age (roof antenna reception) is approx . in 100 Sekunden” (the ARD main news reason for this is the frequency spectrum . 90 per cent of viewers compared to in 100 seconds) around the clock while the former full supply . The commercial the news broadcasts transmitted via the Broadcast frequencies broadcasters transmit their services via DVB-H channels are usually available only and the internet DTT only in the centres of population . once an hour . DTT is gaining in relevance for recep- Employing broadband frequencies would Broadband internet today presents a tion via the second and third sets and permit radio networks for internet ac- source of information access to which for mobile reception including TV on cess in rural areas to be set up at less is considered a basic right for citizens . mobile phones . As a consequence of the expenditure than in the typical frequency Article 5 of the German Constitution in high cost of transmission, rural regions range as the transmitters used allow for its first section warrants the right of citi- are supplied far less well; acceptance is wider coverage and the frequencies are zens to inform themselves via gene­rally specifically low in areas where no com- also particularly suited for indoor supply . accessible sources . In the early years, mercial channels are available via DTT . making television available everywhere at Bi-directional radio networks for Planning mobile TV via DVB-H is focusing any time was a public requirement of the broadband internet, however, differ even more on the centres of population first order even if it involved particular fundamentally from traditional broadcast than was the case for DTT; whether the expenditure in rural regions, access to supply which is based on high-power necessary additional infrastructure can broadband internet must now also be transmitters broadcasting in one direc- in fact be funded from subscriptions prioritised as a prime means of commu- tion towards receivers designed to show paid by subscribers is presently unclear . nication as well as a basis for economic the entire range of frequencies . Bi-direc- The 16 channels are to be used mostly activities . tional networks for broadband internet for contents which are available free of reception by contrast are constructed in charge via other routes already . a cellular structure comparable to mobile radio networks with transmission being effected in predetermined frequency bands which are aligned to the receivers and transmitter systems .

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As long as parts of the broadcast spec- The interests of the mobile industry The telcos are far superior to broadcast- trum are not allocated to other services ing when it comes to economic clout and The 3G auction was conducted at a time (“sub-band”) as the European Commis- presenting perspectives for the (efficient) of growth when euphoria for the inter- sion plans to do, the simultaneous use of use of spectrum . This does not, how- net was on the increase . But there were spectrum for broadcast and broadband ever, mean that they really do have very no clear ideas what was to be done with internet can result in interference for clear-cut ideas for the future use of these the spectrum . either . However, there is no practical additional capacities . What is evident is experience thus far as to what extent Today, growth regarding the number of the interest in protecting one’s own per- such interference would impact on the potential consumers has almost come to spectives and limiting competition – just advantages presented by broadcast a standstill . And while the development as the dominating broadcasters in the spectrum being employed for internet of broadband technologies is advancing, analogue world did not exactly welcome transmission and what measures could the fixed-line networks show that voice the new competition which digitisation be taken to limit it . telephony is being reduced to a minor brought along . role in regular operation . As regards mo- The frequency spectrum allocated for bile applications, the internet offers just Pilot project in Brandenburg mobile telephony is clearly sufficient, and about everything from TV to telephony . as regards telephony, a sensible regula- With the pilot project planned in The borders between fixed-line and mo- tory objective should involve opening Brandenburg, mabb intends to gather bile networks are becoming increasingly up choice for consumers among the information on these issues, thereby blurred in use: contents downloaded various operators . Broadband internet providing a basis for future frequency at home for cost reasons can be put to requires far more capacity which – even planning and for establishing the actual mobile use on the road . if utilised more efficiently – raises the capacity needs of broadcasting and The telecommunications industry is question as to the number of networks broadband internet . The pilot project seeking to balance the loss of revenue it that can be built up in an economic way . will not solve the current problems in suffered in its transmission operations by This question is not new by any means: the supply of rural areas as it focuses on marketing contents ranging from TV to It is already an issue today regarding technical questions, but it is intended new options of use provided by the in- other infrastructures such as broadband to contribute to their solution involving ternet . Attempts to build up an individual cable networks, and requires appropriate broadcast spectrum in the future . profile in a separate world (“walled answers on the part of regulation, for gardens”) have not yielded much success instance concerning the issue of access as yet when compared to the dynamics to a joint infrastructure for different characterising the internet . providers . As spectrum auctions in the USA and the debate concerning the so-called” white spaces”, i .e . spectrum available for use in regional areas, prove there are new players who pursue their own interests: cable operators intending to enrich triple play with a mobile version, or Google demanding open access to the frequency spectrum for all receivers . The digital dividend 39

The specific value of broadcast However, an interesting approach for the spectrum for rural regions major cities might be to release spectrum currently allocated to broadcast transmis- The advantage offered by the greater sion in a similar way for general applica- coverage which is possible using broad- tions as this is happening successfully cast spectrum would lower the infra- for W-LAN networks . If the interested structure costs for rural regions . industry can in fact develop receivers It does not come into play in the same which would exclude interference with way in the major centres of population: sufficient likeliness, these could also be Supplying a large number of consumers used in Germany . necessitates sufficiently small cells for which spectrum in the higher band areas is suitable with the reduced risk of inter- ference adding a further benefit . This would speak for an approach under which broadcast spectrum is initially released for rural regions but not for cities where DTT and DVB-H are built up and consequently less spectrum is avail- able . Besides, the old mistakes should not be repeated which were made in the telecommunications policy and the allocation procedures conducted under media legislation before under which the supply of rural areas would be welcomed but cannot be practically realised as the industry is concentrating on the big con- urbations for financial reasons . Nokia E71 The digital dividend 41

The German way to the digital dividend

Broadcasting must go into sion via terrestrial frequencies . The rural internet serves broadcasting but also the internet, too! regions are supplied via satellite without represents an elementary interest of the any extra cost while satellite transmission states in other respects . Germany has the opportunity to develop in most other countries takes the form a concept for the utilisation of the digital The balance of interests concerning of pay-TV . dividend taking the national specificities the supply of consumers with DTT on into consideration rather than waiting for Time to get going is limited . The rural the one hand and broadband internet central provisions as they are currently regions cannot and must not be kept on the other hand can only be reached being developed in Brussels . Germany waiting until frequency bands become if Federal government and the states planned analogue-digital switchover long available under any European or global cooperate . Separating broadcasting from before the European Commission took capacity coordination procedure . But it non-broadcasting applications will not up this issue . might be possible to make use of global bring this balance about . synergies, especially regarding receiver However, there has not yet been a clear design as they might, for instance, result and open debate in Germany concern- New objective for frequency planning from the employment of broadcast ing the digital dividend . The frequency spectrum for internet transmission in the The German states and the regulators planning by public-sector broadcasting USA . can contribute to the frequency capaci- as well as by the technical experts of ties being employed more efficiently by the regulators was focused on claiming readjusting their planning . Traditionally, the entire frequency spectrum available Capacity coordination between the planning aimed at full coverage with in the wake of 2006 World Radiocom- Federal and state levels both public-service and commercial TV munication Conference(WRC-06) for the Broadband internet requires Federal channels, with corresponding applica- broadcasting sector . Enquiries of the government and the German states to tions for demand being filed by almost Federal Network Agency were initially cooperate in a new way . Traditional te­ all states . The actual use of capacities, fended off, the concrete use was not lecommunications law and broadcasting however, considerably differs from the touched upon . Now, however, the signi­ legislation are based on a clear distinc- applications filed, especially as far as ficance of the internet also for broadcast- tion of the use of spectrum for either commercial television is concerned . As a ing is being increasingly recognised, and broadcasting or other uses . Capacity result, there is some scope for employing this could provide the chance to achieve requirements for broadcasting are deter- spectrum for broadband internet use . a reasonable balance of interests . mined by the German states which have The new alignment of frequency plan- The German situation concerning the far-reaching co-decision powers in this ning must contribute to defining a utilisation of broadcast spectrums opens respect while they have no say regarding preferential range of frequencies for up specific opportunities for broadband other frequency uses . broadband internet for Germany, taking internet transmitted via broadcast capaci- Telecommunications law in Germany is into account international developments, ties . Unlike in other European countries, geared along the terms of narrowband and to promoting its utilisation even the commercial broadcasters in Germany voice telephony . Broadband internet where this results in changes to the cur- never achieved full terrestrial cover- now allows for the transmission of both rent use of capacities for DTT transmis- age of the country, and public-service broadcast contents and telephony along sion . In this process, the current supply broadcasting is also less dependent on the same route of transmission . Access must be maintained . terrestrial transmission than is the case of citizens in rural regions to broadband elsewhere in Europe . Neither public-ser­ vice nor commercial broadcasters have developed any plans for HDTV transmis- Apple iPhone The digital dividend 43

Balancing the interests must not be left Pragmatic solutions rather than to those parties whose particular inte­ debates for the sake of principles rests in maintaining existing transmitter As little as broadband internet can be networks might lead them to a hesitant qualified as broadcasting in the tradition- approach towards changes, i .e . the mo- al sense, can this be claimed for mobile bile industry, but also the ARD stations radio . Mobile radio for voice telephony operating their own networks . does not require a digital dividend . In the broadcasting sector, the public in- Progress of technology is breaking down terest concerns the contents transmitted the barriers that existed between fixed- both via DTT and via broadband internet . line and mobile networks in the same For this reason, responsibility within the way as they are disappearing between broadcasting corporations must lie with broadcasting and mobile radio . those in charge of contents and strategy As attractive as the debate of the issues rather than with the technical depart- raised by these developments may be, ments . priority should be given to developing pragmatic solutions allowing for the use New objectives for procedures under of broadcast spectrum for the supply of telecommunications law rural regions . The experience gained in this process may then be put to good use The procedures for determining the for advancing telecommunications and operators providing broadband internet broadcasting legislation . under telecommunications law must be devised to meet the requirements for the supply of rural regions . To date, the highly-populated areas have benefitted most from the procedures in force . The competitive approach of network operators utilising separate infrastruc- tures which was developed in the field of voice telephony should be reviewed regarding its suitability for broadband in- ternet supply: The necessary bandwidths probably allow for a limited number of networks only . It is therefore all the more important to assess all models proposing a jointly used infrastructure (as in DVB-H planning) or any access regulation which would be the obvious solution concern- ing the structure of the internet anyway . The separation of networks and uses is more relevant today than ever before .

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Imprint

Published by Medienanstalt Berlin-Brandenburg (mabb) Kleine Praesidentenstrasse 1 10178 Berlin Germany phone: + 49 (0) 30 / 264 967-0 fax: + 49 (0) 30 / 264 967-90 e-mail: mail@mabb .de www .mabb .de

Responsible for contents Dr . Hans Hege, mabb

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Photos Yves Sucksdorff, Berlin

Print Königsdruck, Berlin