Broadcasting in Portugal 2002

1
DIGITAL TELEVISION IN PORTUGAL
mario.freitas_at_anacom.pt
2

• Market overview
• DTT regulatory framework
• DTT roll-out
• The past
• The present and future
• Switchover
• Further developments

3
Market Overview
4
Main Players

• FTA channels RTP 1, a2, SIC, TVI, RTP Açores
  (only in Azores) and RTP Madeira (only in
  Madeira)
• Other channels subscription cable satellite
  channels, such as RTP Memória, RTP N, SIC
  Notícias, SIC Mulher, SIC Radical, SIC Comédia
  and Sport TV
• Main cable operators TV Cabo, Cabovisão, TVTel
  Grande Porto, Bragatel, Pluricanal
• Satellite operator TV Cabo (Portugal TelecomVia
  Digital)
• TVoADSL it was announced for this year but is
  not yet commercially available

5
Television platforms in Portugal

• Total of households 5.019 k
• Cabled households - 3.656 k (73 of the total)
• Satellite DTH service from TV Cabo is
  commercially available in the main land, as well
  as in Azores and Madeira, in areas not covered by
  its cable service
• Terrestrial - analogue signal covers more than
  95 of national territory through 2 networks
• Portugal Telecom (that distributes the signal of
  RTP, SIC and, in a few sites, of TVI)
• RETI (the main network used by TVI and belonging
  to the same group Media Capital)
• TVoADSL not yet available

6
TV reception in Portugal

• Total of households 5.019 k
• Cable subscribers - 1.436 k (29 of the total)
• Satellite subscribers 389 k (7,7 of the
  total)

7
Cable Market per Region
Percentages above 100 mean there is more than
one cable network available.
8
Cable Market Evolution
9
Cable Market Evolution
10
DTT Regulatory Framework
11
Electronic Communications Law

• Law no. 5/2004, of 10 of February - It
  establishes the legal regime applicable to the
  electronic communications networks and services
  and associated services and defines the
  assignments of the national regulatory authority
  (ANACOM) in this field, in the scope of the
  transposition of the 4 Directives, of the
  Communications Review, and of the Competition
  Directive

12
Electronic Communications Law

• Art. 15 ANACOM is responsible for the spectrum
  management and for the allocation and assignment
  of frequencies on the basis of a selection
  criteria.
• Art. 35 Government approves the regulations
  regarding the grant of rights of use for
  frequencies, where competitive or comparative
  selection procedures are involved and frequencies
  are available for the first time, or they are
  intended to be used for new services.
• Therefore, the rights of use of frequencies to
  be used in Digital Terrestrial Broadcasting, are
  granted by ANACOM, according to a regulation
  approved by the Government, in the case of a
  comparative selection procedure.

13
Television Law

• Law no. 32/2003, of 22 of August - It concerns
  the access to television broadcasting and the
  carrying out of this activity within national
  territory.
• Its application falls mainly under the scope of
  AACS (High Authority for the Media), whose
  powers stem from the Portuguese Constitution, and
  ICS (Media Institute), after due consultation of
  ANACOM for frequency purposes, under the
  Communications Law.
• A new media regulatory body, which will
  replace AACS, is being created.

14
Television Law

• Art. 2 - Defines television as the organisation
  of programme services in the form of non-steady
  images and sounds, broadcast by means of
  electromagnetic waves or any other appropriate
  vehicle over the air, or by wire, and able to be
  received by the general public, excluding
  telecommunication services available only upon
  individual request, but excluding from this
  scope the simple retransmission of third party
  broadcasting (meaning, for instance, television
  program services already available on cable or
  satellite platforms).

15
Television Law

• Art. 15 - Refers that the access to television
  broadcasting using the terrestrial hertzian
  spectrum is subject to individual licensing, per
  television programme service, by means of public
  tender.
• However, the establishment, management, operation
  of transport networks and broadcasting of
  television signals are regulated by the
  communications legal framework.

16
Communications Law Television Law

• The rights of use of frequencies to be used in
  Digital Terrestrial Broadcasting, are granted by
  ANACOM, according to a regulation approved by the
  Government
• The licence to launch and operate each new
  television channel over the Digital Terrestrial
  Platform is issued by AACS, through a public
  tender.
• The launch of DTT requires, therefore, an
  articulation between both regulations.
• Notes
• The communications sector is under the tutelage
  of the Minister for Public Works, Transports and
  Communications
• The media sector is under the tutelage of the
  Minister of the Parliament Affairs.

17
Recent Communications

• On accelerating the transition from analogue to
  digital broadcasting COM(2005) 204, 24.05.2005
• The Commission expects that by the beginning of
  2010 the switchover process should be well
  advanced in EU as a whole, and proposes that a
  deadline of the beginning of 2012 be set for
  completing analogue switch-off in all EU Member
  States (for that encourages MS to publish, by the
  end of 2005, plans to show how they intend to
  accomplish this)
• On interoperability of digital interactive
  television services COM(2004) 541, 31.07.2004 (to
  be reviewed in the second half of 2005)
• The Commission seeks to ensure that European
  citizens benefit from a growing range of
  interactive DTV services, available on an
  increasing number of transmission platforms
• Promotion of the voluntary implementation of the
  MHP standard

18
Rolloutof DTT
19
Initial DTT Tender

• The process was initiated in 2001
• The tender for the attribution of a national
  license for the establishment and operation of a
  Digital Terrestrial Television (DTT) platform has
  been launched on April 7, 2001.
• Two proposals were accepted by the Evaluation
  Committee
• Oni-Plataformas
• Plataforma de Televisão Digital Portuguesa PTDP
• On August 2001, the Minister for Social Equipment
  granted PTDP a national licence for the
  establishment and operation of a Digital
  Terrestrial Television Platform.

20
Initial DTT Tender

• Main licence conditions
• 4 national multiplexes, mainly in SFN
• Nationwide must carry for all free-to-air TV
  channels (RTP1, RTP2, SIC and TVI, as well RTP
  Azores and RTP Madeira, on each of the regions)
• Multiplex capacity reserved for 3 new TV
  programs, to be granted later

21
Initial DTT Tender
Coverage timetable
22
Initial DTT Tender
Re-evaluation

• According to the terms of the granted license,
  PDTP was bound to have started the commercial
  operation of the mentioned digital television
  platform by 31 August 2002.
• However, at the request of the licensed operator
  and through the Ministerial Order n. º
  20095/2002, of 22 August, this time limit was
  extended up to 1 March 2003.
• Since that date, the licensed operator has
  conveyed to ICP ANACOM its concern over the fact
  that the start-up of the commercial operation was
  not possible for reasons beyond its control, and,
  moreover, that it may not submit any specific
  dates for that launch.

23
Initial DTT Tender

• Considering that
• The definition of the tender model aimed at
  intensifying a strong alternative to the
  installed digital platforms, by promoting a real
  competitive offer, for the benefit of consumers
  and the various market actors, as well as the
  Information and Knowledge Society development.
• As acknowledged by the European Commission,
  during 2001 the worldwide economy suffered a
  recession, from which sectors, such as
  telecommunications and information and
  communication technologies, were not exempt.
• It was widely recognized that the implementation
  of digital terrestrial television platforms
  implied the intervention of several market
  agents, such as the operators themselves,
  manufacturers, software and contents suppliers,
  depending heavily on general trends at economic,
  technological and service levels.

24
Initial DTT Tender

• Considering that
• The availability, in the national market, of a
  massive offer of set-top-boxes complying with the
  DVB-MHP standard was not ensured, and it was a
  pre-requisite necessary also to the launching and
  entry into operation of the digital terrestrial
  television platform.
• The context has also influenced other DTT
  platform operators, such as was the case of the
  unsuccessful operations in the United Kingdom and
  Spain.
• Thus, the necessary conditions for achieving the
  license aims were not fulfilled, being impossible
  to foresee with a minimum level of security a
  specific date for that purpose.

25
Initial DTT Tender

• And considering that a new extension of the time
  limit for the launch of the commercial operation
  of the DTT platform would only lead to an
  indefinite postponement to an unsettled date, and
  thus to an undeterminable delay regarding the
  launching of the digital terrestrial television
  in Portugal,
• ANACOM has delivered a favourable opinion, on 13
  March 2003, regarding the revocation of the
  license granted to the PTDP - Plataforma de
  Televisão Digital Portuguesa, S.A., for the
  establishment and operation of a DTT Platform.
• By Order of the Minister for the Economy of 25
  March 2003 - Ministerial Order no. 6973/2003 (II
  Series), published on 9 April 2003 - the licence
  was revoked.

26
Re-launch of DTT

• Main policy objectives of the DTT launch
• To contribute to the Information Society
  development
• To promote the competition in the electronic
  communications area
• To assure a more efficient usage of the spectrum
  (therefore minimizing as far as possible the
  simulcast period)
• To stimulate the contents industry

27
Re-launch of DTT

• Some issues considered
• How to congregate efforts between the different
  actors, namely broadcasters, in order to create a
  competitive, diversified digital terrestrial
  service?
• Which services would better ensure an economic
  viability of the DTT platform taking into account
  the existing alternatives, such as cable and
  satellite? What should be the balance between
  free-to-air and paid services?
• In a market where the consumer have access to
  digital services through cable and satellite, as
  well as DSL and mobile in a short term, what will
  be the role of DTT? Will it be a complement or an
  alternative to the existing platforms?
• What is the best timetable for the switchover,
  considering that the operators would prefer a
  short (and therefore cheaper) simulcast period,
  but that it implies a bigger social impact?

28
Re-launch of DTT

• Basis of the models being evaluated
• An hybrid FTA/Pay TV offer, able to become
  competitive, firstly in the main urban areas near
  the coast (allowing an initial faster take-up
  rate) and secondly, as far as possible, all over
  the country, namely after the introduction of
  new, and more efficient, compression schemes,
  allowing a broader number of channels

29
Re-launch of DTT

• Some conditions proposed
• Licensing of 3 Mux for National coverage (SFN)
  and 9 additional Mux for Regional coverage near
  the coast line - 3 in the North (around Oporto),
  3 in the Centre and 3 in the South (around
  Lisbon)
• Must carry of the current FTA channels
• Unconditional switch-off calendar, in 2 phases
• Allow the usage of other technologies for part of
  the coverage (maximum 10 of the population), due
  to the costs increase and technical complexity
  when approaching a 100 coverage
• Clear definition of the licensing/authorising
  process for TV channels
• Promotion of MHP but acceptance of low range set
  top box, particularly those only for FTA
  reception
• Portable reception, in some areas, namely
  historical locations

30
Re-launch of DTT

• We will not impose, but we intend to take in
  particular consideration, the best proposals of
  the candidates regarding
• Supply of interactive services
• The promotion of wide-screen production and
  transmission
• The promotion of Dolby Digital production and
  transmission
• The usage of new compression schemes (e.g. MPEG
  4/AVC and VC-1), namely in the Pay TV offer,
  allowing, for instance, better conditions for
  HDTV introduction
• The further introduction of DVB-H based services

31
Re-launch of DTT

• The model is though under evaluation, but the
  Government intends to launch the DTT public
  tender(s) in the first half of 2006.
• The Government also intends to conclude the
  switch-off between 2010 and 2012, according to
  the market evolution.

32
Switchover
33
Cable, Satellite and Terrestrial

• Cable The main cable operator (TV Cabo) is
  progressively digitising its network. Others will
  succeed.
• Satellite TV Cabo DTH service is fully
  digital.
• Terrestrial DTT licensing process (to be
  launched in 2006), as well as the switchover
  plan, are being defined

34
Terrestrial Switchover

• To avoid increase the operational costs of the
  simulcast and also to give a clear signal to the
  market that the switch-off will be done, as far
  as possible, in a short period, the following was
  proposed
• A fixed, unconditional, switch-off calendar, in
  2 phases
• 1st Phase
• In the more densely populated areas of Oporto,
  Centre and Lisbon (corresponding to the zone
  where there will be 3 additional regional muxes
  and, so, a complete offer of 6 muxes), 1 year
  after the verification of two conditions, for
  which the operator will be given 1 year to
  accomplish
• Full coverage of those areas
• Availability of access conditions (particularly
  equipments)
• So, in the worst case, it would take 2 years.

35
Terrestrial Switchover

• 2nd Phase
• In the rest of the country, 1 year after the
  verification of the same conditions, but for
  which, in the areas to be covered in this phase,
  the operator will be given 3 years to accomplish.
• So, in the worst case, it would take 4 years.
• Note In this proposal, in both areas there will
  be a phase out period of 6 months, between the
  switch-off of a2 (the public broadcaster
  channel, only with institutional advertising) and
  the other 3 TV channels.

36
Further developments
37
Further developments

• MPEG-4 AVC (H.264) and VC1 (WM9 HD) encoding, to
  improve the capacity
• HDTV
• HDMI output with HDCP copy protection
• DVB-S2, with 8PSK, 16APSK and 32APSK, to improve
  the flexibility and capacity of digital satellite
  platforms
• DVB-H, for mobile television
• DVB-C 256-QAM, to improve the capacity of cable
  networks
• MHP 1.1.2. (Internet access profile, including
  expanded scope for applications storage, etc)
• 1080p/50 to improve HDTV displays quality

38

• Dissemination of new media formats and
  distribution channels
• Increasing number of distribution networks
  terrestrial, satellite, cable, ADSL, WiMAX,
  mobile
• Fragmentation of the market smaller audiences
  per channel/service
• Trend toward paid access to each specific content
• Reducing ability of the major operators to
  dictate audiences
• More control for consumers over the content they
  consume
• Growing demand for choice, delivery options and
  control, including customisation of the service