Getting the most from the ‘Digital Dividend’

The Digital Dividend

• What is it and why does it matter?• What is the EU saying and doing about it?• Can we put a value on it?• Making it work locally• The big Switch-Off• Conclusions

What is it and Why does it Matter

• “The radio spectrum freed up for other uses when terrestrial TV goes analogue to digital”

• About 80% of current spectrum ‘cleared spectrum’ and ‘white space’

• High quality spectrum: high bandwidth, long distance, and good penetration – about 320MHz of it.

• Radio spectrum is public property: must be used to maximise public interest

What can it be used for?

• More spectrum for terrestrial television – From standard to high definition– More channels– New geographical configuration– ‘Future-proof’ DTT standards

• 3G and new generation mobile• Fixed Wireless Broadband

EU & International Dimension

Coordination needs because:• Overspill of signals near borders• Enlarging market of identical equipment• Roaming services are facilitated.BUT• EU not in a position to pursue a mandatory

approach because of huge national variations

EU Progress2002: Radio Spectrum Decision created the Radio

Spectrum Committee2003: Invited members states to switch by 2012 “as far as

possible”2006: International Telecoms Union agrees 790-862MHz

shared between TV, mobile, fixed2009: Commission Communication: MSs “requested to

reaffirm commitment to 2012 switch-off.”2010: Commission Decision: No obligation to open

800MHz to other services before 2015, but if you do, must follow common technical parameters.

Key Future Issues: Use of “White Space”.

Putting a Value on the Digital Dividend

Different kinds of value:• Private Value: As private consumers and

users, including producer innovation, incremental value

• External Value: As citizens, the shared collective value

The sums

Private Value for EU estimates:• €150 billion to €600 billion over 15 years• Most recent: €0.2 billion to €95 billion

External/Social Value EU estimate: • €7.5 billion to €90 billion

Research in Serbia

Europe-economics Study 2010 concludes:• “there is not enough ‘core information’ in

Serbia to allow a valuation from basics (it would take a lot of time and money to get such information).”

Potential Social Benefits

• Access and inclusion, including public services • Quality of life• Belonging to community• Educated citizens• Cultural understanding• Informed democracy • Social ‘bads’ (negative value from above)

Services Delivering Social Good

• Programme making and Special events• Low power e.g. Home wireless, ‘last-mile’• Local television, community and commercial• Rural and mobile broadband• National DTT including public service• High definition TV on DTT

Digital Dividend and Local/Community Television

• Council of Europe: Concerned that the European Commission promotes pushes private value, downplaying public value, and argues for a better balance.

• Argues the case for community television, supported by the European Parliament

• Pushes to make digital spectrum available for Community Television

Ofcom (UK) Digital Local Report

Five ways people value local broadcasting:• Inform us about our locality• Stimulate interest in arts, sciences, history,and

local ways to get involved, informal learning• Reflect and strengthen cultural identify• Raise awareness of cultural diversity • Support and enhance access to local services.

ASO and DTT in SEE

Analogue Switch Off: • Croatia completed December 2010• Serbia Deadline April 2012• Montenegro Deadline end 2012• Bosnia & Herzegovina Dec 2011 (...2015?)DTT: Difficulties with commercial modelAlbania first service 2004Macedonia first service 2009Serbia: Trial in Autumn 2011? Two multiplexes:

National/Regional; and local programmes.

Recommendations

• A measured approach, each country at their own pace.

• Opening a debate around– What is the value of the Digital Dividend, and the

social value?– Should spectrum be allocated around public need,

and not a market driven approach, or both?– Should spectrum be kept to allow TV develop?– Can non-profit community channels deliver social

value, and how can they survive?