Deutschlands digitale Dividende Fernsehen und Internet über Rundfunkfrequenzen Deutschlands digitale Dividende Fünf Jahre nach dem ersten Analog-Digital-Umstieg transmission – five years on years five – transmission switchover of terrestrial television television terrestrial of switchover The first analogue-digital analogue-digital first The internet via broadcast spectrum broadcast via internet Transmission of television and and television of Transmission Germany‘s digital dividend digital Germany‘s Germany‘s digital dividend 3 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 Berlin-Brandenburg . 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 Europe’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 8 “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 radio 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 be ne- 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