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INTRODUCTION of DIGITAL TERRESTRIAL TELEVISION SERVICES in MALAYSIA -Policy and Regulatory Framework

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INTRODUCTION OF DIGITAL TERRESTRIAL TELEVISION SERVICES IN MALAYSIA -Policy and Regulatory Framework Pre-Summit Workshop on Enhancing Digital Terrestrial Television Broadcasting Transition Experience Monday 25 May 2015 Kuala Lumpur, Malaysia 2015 MCMC. All rights reserved. CONTENT • MCMC’s ROLES AND FUNCTIONS 1 2 • MALAYSIAN TV BROADCASTING LANDSCAPE • BROACASTING AUDIENCE AND MARKET SHARE 3 • DTT POLICY AND REGULATORY FRAMEWORK 4 • IMPLEMENTATION TIMELINE 5 • STATUS TO DATE 6 • SUMMARY 7 2015 MCMC. All rights reserved. 22 MCMC in brief • A statutory corporation established by the Malaysian Communications and Multimedia Commission Act 1998 (MCMCA), effective from 1 November 1998 Pursuant to the : Communications and Multimedia Act 1998 (CMA) Postal Services Act 1997 (PSA) Digital Signature Act 1997 (DSA) • Industry developer and regulator for converging communications and multimedia industry : Telecoms, broadcasters and Applications Service Provider SPs Postal and courier services Digital Certification authorities 2015 MCMC. All rights reserved. 3 Institutional Framework under the Communications and Multimedia Act (CMA) 1998 Parliament Cabinet Appeal Ministry Minister Tribunal Appeals Directions Recommendations Industry Consumers MCMC Regulation Players Consultative Enforcement Industry For a [Consumer, Content, Access and Technical] 2015 MCMC. All rights reserved. 4 Sectors Under the Purview of MCMC BROADCASTING COMMUNICATIONS TV . Satellite – ASTRO (sole provider) Cellular 4 main operators (Maxis, Celcom, Digi, . Internet Protocol TV (IPTV) Services Umobile) . Free to Air (FTA) – 7 private channels Broadband Telekom Malaysia (HSSB), Maxis, Time, Celcom, Digi, Umobile, YES, P1, WiMax Radio • Analogue system Fixed Telekom Malaysia (TM), Maxis), Time • Free to Air (AM & FM) - more than 24 Services stations POST & COURIER E-COMMERCE INFRASTRUCTURE Post Pos Malaysia Digital 3 companies under Digital Signature Act Courier More than 110 small and big courier Signature 1997 (DSA) companies Strategic Managed by MITI-MCMC licensing body Overlaps with a few logistics companies, regulated by Trade and enforcement Ministry of Transport (MoT) Cooperation with agencies – MITI, MoSTI, SIRIM, KPDNKK, MyIPO, Bank Negara CONVERGENCE OF CONTENT & COMMUNICATIONS • Concept of self-regulation • New media, social media i.e. facebook, twitter, blog, websites • ‘Klik Dengan Bijak ‘ Campaign 2015 MCMC. All rights reserved. 5 4 Categories of Licenses Under The CMA 98 Network Facilities Provider (NFP) Network Services Provider (NSP) o Towers, poles, ducts and pits used in conjunction o Bandwidth services with other network facilities o Broadcasting distribution services o Radio communications, transmitters and links o Cellular mobile services o Submarine cable landing centre o Access application service o Earth Stations o Space services o Fixed links and cables o Switching services o Satellite control station o Gateway services o Satellite hubs o Space station o Broadcast towers Application Services Provider (ASP) Content Application Services Provider (CASP) o PSTN telephony o Satellite broadcasting o Audio text hosting services provided on an opt-in o Subscription Broadcasting basis o Terrestrial free to air TV o Public cellular services o Terrestrial radio broadcasting o IP telephony o Public payphone services o Directory services o Internet access services o Messaging services 6 Malaysian TV Broadcasting –The changing landscape from a single to multi-platform services 1963 1978-1995 1996 1998-2005 2006 till now Black and Colour Analog Digital TV FTA TV White Analog TV (Terrestrial) (Satellite) consolidation TV (Terrestrial) (‘05) Platform No of Operators Today Terrestrial 3 Transit TV, Satellite 1 Cable TV, IPTV, Cable 1 Internet TV & IPTV 3 DTT IPTV & DTT trial Internet TV 14 (approximately) 2015 MCMC. All rights reserved. 7 2015 MCMC. All rights reserved. TV Audience Share 2012 2013 ASTRO Total Free to Air Over 3.5 mil Over 40% residential households customers (approx. 52 % households) Satellite Pay TV audience share has increased by 7% for 2013 more consumers opted for premium content and value added services 2015 MCMC. All rights reserved. 9 Broadcasting Revenue On the rise since 2011. Up 9.4% to RM5.8 billion for 2013 • RM • RM • RM 2011 4.8 bil 2012 5.3 bil 2013 5.8 bil MARKET SHARE – FTA TV down 1.9%, Pay Satellite TV up 1.8% for 2013 Note: Excludes Media Prima print revenue of an average revenue of RM0.7 billion Source: Industry, MCMC per year ASTRO revenue adjusted on a calendar year basis 2015 MCMC. All rights reserved. 10 Analog and DTT Licensing Environment Under the CMA 1998 Licensing regime ImplementationAnalog DTT Model • Content & Applications Service Provider (CASP) • Structural separation between Infrastructure and Application Service Provider (ASP) Provider and Content & Applications Service Provider procure own transmission equipment lease access and networks from a Network • A single Common Integrated Infrastructure Provider and Facilities Service Provider (CIIP) to build and provide access to DTT lease transmission operations and infrastructure to all CASPS and ASPS maintenance services Technology ASP-A • Multiple Infrastructure Provider CASP-B CASP-A ASP-B Multiplexer ASP-A ASP-B PSTN/Inter 1 net/Cellular CASP-A CASP-B 2 3 NSP n CIIP User terminals NFP 2015 MCMC. All rights reserved. 11 Policy and Framework IMPLEMENTATION • Private Sector Driven : A single private company to build, operate and own DTT infrastructure for 15 years MODEL • Fully funded by the private sector company • An independent infrastructure company (NSP, NFP) and not a CASP TECHNOLOGY & • Transmission: DVB-T2 technology was mandated in Sept 2009 • Set Top Box Middleware : Hybrid Broadband Broadcast TV (HbbTV ) was STANDARDS registered in Jan 2013 • 85% coverage shall be provided to populated areas by Q4 2015 COVERAGE • 98% coverage shall be provided to populated areas by Q4 2016 REQUIREMENT • DTT coverage shall be at no worse off than analogue coverage • Reception mode: Fixed roof top coverage SPECTRUM • By way of licenced frequency assignment by service area • 470 to 742MHz (before ASO) and 470 to 694MHz (after ASO); ASSIGNMENT • 3 Multiplexers before ASO and up to 8 Multiplexers after ASO; • Adherence to border countries coordination • CIIP shall subsidise to 2 million eligible households HELP SCHEME • Government Linked Companies will be invited to complement subsidy program 2015 MCMC. All rights reserved. 12 Policy and Framework/cont… Implementation Model INDUSTRY • CIIP to assist in capacity building and content related skills training DEVELOPMENT • Program is managed by MCMC and Malaysian Technical Standards Forum RETAILERS & • Include recommendation on standards adoption, multimedia receivers test suite MANUFACTURERS and antenna installers training program • Broadcasters Alliance was established since 2014 to steer Education & EDUCATION & Awareness programs in collaboration with KKMM/MCMC AWARENESS • Digital Tick and Mascott’s implementation is currently in progress • Per service coverage requirements QUALITY of • CIIP to ensure annual 98% SLA SERVICE • Quarterly/Bi-Annual audit by MCMC • Benchmark with ITU and other industry practice SIMULCAST AND • Simulcast period : less than 3 years target • ASO : target to begin in phases by 2018 TARGET ASO 2015 MCMC. All rights reserved. 13 Monitoring and Regulation of DTT Content (Communications and Multimedia Act 1998) 2) Application 1) Ministerial Information 3) License 4) Content Code Direction Package No. 1 of Conditions 2012 5) Monitoring Unit, Digital Multimedia 6) Technical 7) Spectrum Broadcasting Hub Regulation Regulation (DMBH) • Policy decision • Guidelines for a responsible approach • Allows a licensee to undertake toward the provision of content (self activities that are market specific regulation) • Effective utilization of Network • Mandatory standard to air content Infrastructure • Live monitoring of DTT content prior to • Optimal and effective spectrum transmission usage and assignment usage 2015 MCMC. All rights reserved. 14 Help Scheme Definition: Provision of DTT reception equipment including installation and tuning (as necessary) to eligible recipients `Set Top Box’ (“STB”) `Remote Control Unit’ `Portable Indoor Antenna’ or `Fixed Roof Top Antenna’ `Smart Card’ Eligible Recipients BR1M e-Kasih Total individuals: Total individuals: 6,966,182 179,637 Household income less Household income than RM3,000 less than RM1,120 2015 MCMC. All rights reserved. 15 National Steering Committee Established Since 2009 NATIONAL DIGITAL TASK FORCE (“NDTF”) CHAIRMAN (SECRETARY GENERAL, KKMM) SECRETARIAT KKMM/MCMC KKMM MINISTRY ECONOMIC OF FINANCE PLANNING UNIT BROADCASTERS (MOF) (EPU) Objective To coordinate with other Government agencies to ensure a successful digital switchover Scope a) To agree on DTT progress report by National Digital Task (Technical) Terms of b) To establish and recommend related policies on Reference digital switchover Frequency of Meetings Bi-monthly Minister KKMM Report 2015 MCMC. All rights reserved. 16 NDTF Technical Committee Established in 2012 CO-CHAIRMAN (DEPUTY SECRETARY GENERAL II, KKMM & CHIEF INDUSTRY DEVELOPMENT OFFICER, MCMC) SECRETARIAT (KKMM/MCMC) SUB WORK SUB WORK CONTENT MINISTRY OF ECONOMIC GROUP SUB WORK KKMM GROUP COMMITTEE FINANCE PLANNING MANUFACTURERS GROUP HELP SCHEME (MOF) UNIT (EPU) & RETAILERS EDUCATION & AWARENESS CHAIRMAN CO-CHAIRMAN CHAIRMAN CHAIRMAN (MCMC) (SIRIM & MTSFB) (KKMM) (MEDIA PRIMA BERHAD) MEMBERS: MEMBERS: MEMBERS: MANUFACTURER
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