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Rinku Tyrimai Digital TV development in Eastern European countries: Lithuanian experience Tomas Lamanauskas Deputy Director Communications Regulatory Authority European Forum for Mobile TV 2006 Page 1 Outline of the presentation • TV broadcasting in Lithuania: long path of evolution • Outlook to the market • Regulatory measures • Challenges to digital TV development • Ways to overcome the challenges • Role of regulator • Considering possible means to DVB-T encouragement European Forum for Mobile TV 2006 Page 2 TV broadcasting in Lithuania: long path of evolution: outlook to the market 2004 2007-12 1975 1993-04 2005-07 2006-02 2003-08 2004-10 2009 2012 1957-04 1989 2003-05 2005-09 2006-07 2005-04 2001-03 Pilot Digital Terrestrial TV First TV transmission in Pilot TV via DVB-T transmissions Vilnius by 53rd TV mobile networks in channel transmitter (GSM/UMTS) Live mobile 5 biggest Cable TV phone TV cities network (GSM/UMTS) Radio TV programs deployed broadcasting Beginning of programs via Internet Full analogue TV via launch in Colour TV turn-off Internet Digital Vilnius broadcasting Cable TV, Contest for and 40 km MMDS DVB-T around At least one networks DVB-T network coverage - 95 Issued DVB-T Digital Pilot Digital TV % of territory Commercial broadcasting Satellite TV broadcasting TV started and re- promotional broadcasting project in licenses Vilnius trolleybuses European Forum for Mobile TV 2006 Page 3 TV broadcasting in Lithuania: long path of evolution: outlook to the market Beginning - 30 analogue TV sets 9 April 1957 - First television transmission – about 30 TV sets in Lithuania. 9 End 1957 - already 1.5 thousand TV sets. 9 2005 – 94 % of households had colour TV set. 9 Public TV – 2 national terrestrial analogue TV channels. 9 1Q 2006 – 25.5 % of households were cable TV and MMDS subscribers. Vision for 2012 – Almost every household will be able to use digital TV, of which >400 000 households (about 30%) use DVB-T Aim - > 98% of households equipped with digital TV (DVB-T, DVB-C, DVB-S, IPTV) European Forum for Mobile TV 2006 Page 4 TV broadcasting in Lithuania: long path of evolution: outlook to the market Competition aspects in broadcasting market (1) 350 60 295,5 55 55 55 55 280 50 253,8 49 239,5 234,5 226,3 46 225,8 40 38 41 210 198,2 30 31 31 162,8 26 27 140 120,9 20 10 70 36,0 35,0 34,8 3 444 31,1 0 0 2002 2003 2004 2005 1997 1998 1999 2000 2001 2002 2003 2004 2005 Radio TV Cable TV MMDS Cable T V MMDS Dynamics of the number of participants in Cable TV and MMDS subscribers number the broadcasting market, 2002–2005. dynamics, thousand Source: Radio and Television Commission of Lithuania . Source: Communications Regulatory Authority. 9 As of the end of 2005, 71 cable TV and 5 MMDS networks were operated in Lithuania. 9 In 2005 the number of cable TV subscribers grew more than 16 per cent (average 1997 – 2005 growth of cable TV subscribers was 12 per cent), the number of MMDS subscribers grew by 12 per cent. 9 Data on number of digital TV subscribers was not collectible for the meantime. European Forum for Mobile TV 2006 Page 5 TV broadcasting in Lithuania: long path of evolution: outlook to the market Competition aspects in broadcasting market (2) TV3 25,7 80 73,7 69,5 57,7 LNK 24,8 60 48,3 42,9 LTV 13,0 40 BTV 9,8 20 2001 2002 2003 2004 2005 PBK 4,7 The revenues of all broadcasters and re- broadcasters in 2001-2005, EUR million 0 5 10 15 20 25 30 Source: Radio and Television Commission of Lithuania . The most popular TV programs in Lithuania (per cent of the watched time), 2005 Source: TNS Gallup . Balticum auksinis – the first DVB-C programs package, introduced in 2004. Balticum auksinis started with 6 TV programs in 2004, followed by 40 programs in 2005 and 60 programs in 2006. Balticum TV UAB is expecting to increase the number of programs to 100 by the 2006. Also in 2004 Balticum TV UAB had introduced programs package over the European Forum for Mobile DVB-TTV 2006 network, available by that time in a certain area of Vilnius city.Page 6 TV broadcasting in Lithuania: long path of evolution: outlook to the market Competition aspects in broadcasting market (3) 9Two mobile operators of began mobile TV translations in 2005 9In February 2006 licences of 3G (UMTS) networks were granted, so development of services is expected. 9UMTS services launched April 2006. 9Up to now 21 TV channels are available via 3G network of one mobile operator. European Forum for Mobile TV 2006 Page 7 TV broadcasting in Lithuania: long path of evolution: regulatory measures Order of Director of the RRT Concerning the Approval of the Rules for Allocating and Using of Law on Provision Radio Frequencies / Channels of Information to Strategy for the Assignment the Public of Radio Frequencies to Strategic Plan for the Broadcasting and Order of Director of RRT on Assignment of Radio Transmission of Radio and Digital Terrestrial Television Strategic Plan of Frequencies to Television Broadcasts Development Plan the Development of Broadcasting and (Government Resolution) Informational Transmission of Society of Lithuania Radio and Television Strategy of the (Government Broadcasts Development of Resolution) Informational Society of Lithuania (Government European National Radio Resolution) Law on the Convention on Frequency National Radio Transfrontier Allocation Table Law on Services and Television Television (Government of Information Resolution) Society 1996 1997… 2001 2003 2004 2005 2006 Conceptual Framework of the National Information Model of Implementation of Law on Amendment of Digital Television in Lithuania Republic of Lithuania Law Society Development of on Provision of Lithuania (Government (Government Resolution) Resolution) Information to the Public European Forum for Mobile TV 2006 Page 8 TV broadcasting in Lithuania: long path of evolution: regulatory measures DVB-T - step by step 9 Winners of the DVB-T broadcasting tender were announced: 9 6 broadcasters: Balticum TV, LNK, Tele-3, TV1, Spaudos televizija, LRT. 9 2 re-broadcasters: Mikrovisatos TV, Tele-3. 9 40 TV programs in total. 2006 9 DVB-T translations started in Vilnius and 40 km around. 9 Initial stages of information campaign 9 Basic information on DVB-T announced on RRT internet site 9 Radio frequencies’ licenses for DVB-T networks were issued to LRTC and TEO LT. 2005 9 Exemptions for licenses holders - DVB-T networks - were introduced. 9 Plan of DVB-T promotional measures was drafted by RRT in partnership with Ministry of Transport and Communications. 2003 9 The start of pilot TV programs transmission in DVB-T format (LRTC AB) European Forum for Mobile TV 2006 Page 9 Challenges to digital TV development Audiovisual and communications sectors undergo a fundamental change due to technologic progress : formerly clear borders between content and transmission are blurring. 9Unlimited number of audiovisual content delivery channels, i.e. the same content can be delivered over different transmission means: - cable TV, satellite TV, MMDS, terrestrial TV, IPTV, mobile TV – Currently different means are licensed separately – No clear reason for licensing – formal administrative burden only – Some transmission means risk to be ignored due to the lack of legal ground 9States’ borderlines are no more restrictive factors: – Increasing popularity of internet TV and radio – Target audience can be easily reached from abroad – Digital technologies enable personal program individualization 9 Necessity to develop a flexible regulatory structure; 9 Need for consistent, pro-competitive and stimulating expansion of the digital economy regulatory system. European Forum for Mobile TV 2006 Page 10 Challenges to digital TV development Supply side Demand side Investments Ability to pay/ value for money • How broadly to invest? • Am I able and why should I pay • Which investment strategy to for extra equipments and choose? services? Technologies Needs • Which one is the best and • Do I need digital TV? which one to choose? End users’ equipment • What extra equipments do I Services need? • What services to supply in Awareness order to meet customers • What do I know about digital needs? TV, its benefits and costs? European Forum for Mobile TV 2006 Page 11 Ways to overcome: role of regulator Supply side Strategies for regulator: 1. Direct intervention Investments • Compensations; • How broadly to invest? • Capital injections. • Which investment strategy to choose? 2. Staying away. 3. Indirect influence • Creating preconditions. In Lithuania we chose the 3rd option: Exemptions for licenses holders in DVBT networks were introduced: - fee for the supervision of radio frequencies (channels) was reduced by 30 per cent; - payment of fee for the supervision of radio frequencies (channels) was rescheduled for 1 year period from license issue date. Clear date of the beginning of switch off of analogue TV by 2012 was announced in 2004. European Forum for Mobile TV 2006 Page 12 How to overcome: role of regulator Technologies Compression standard – MPEG – 4? • Which one is the best and which one to choose? Pros Cons • Better compression •Relatively new standard possibilities : transmission of (adopted only one year ago), up to 10 standard quality TV •Currently is not very programmes common. • Saving resources of radio •Small supply of TV sets and frequencies (channels) In Lithuania: set top boxes in the market. The winners of the digital terrestrial television broadcasting tender - Lietuvos Radijo ir Televizijos Centras AB and TEO LT, AB in end of June 2006 began to provide services of transmission of digital television using MPEG 4 compression standard in the digital television networks. The standard was chosen voluntarily. Also use : France Planning to use: Estonia, Norway, Brazil Also a range of countries are considering possibility of usage the MPEG-4.
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