Switchover from Analogue to Digital Broadcasting in Montenegro

1. Agency for Electronic Communications and Postal Services of Montenegro Switchover from Analogue to Digital Broadcasting in Montenegro ITU SUB-REGIONAL SEMINAR AND MINISTERIAL ROUNDTABLE ON SWITCHOVER FROM ANALOGUE TO DIGITAL BROADCASTING Ms Ana Vukčević

2. Advantages and Reasons for Introducing Digital Broadcasting • High and constant demandfor radio-frequencies • Improvement both the range and quality of services as well as spectrum efficiency and network payloads • Digital convergence • content and service providers can deliver their offers through multiple deliverymechanisms, • consumers can access services via various terminals delivering multimedia content and more services via a single terminal Potential to create new horizontal markets within each level ofthe value chain, thereby opening up an abundance of new business opportunities. Consequently, regulatory provisions must be carefully elaborated to reflect changes.

3. Analogue switch-off not later than 31.12.2012 (target date); Sustainable regulatory framework for prompt introduction of digital broadcasting, facilitation of the transition from analogue to digital broadcasting and their unobstructed development after the target date; For all public broadcasting services and existing holders of broadcasting licences envisage the possibility for free-to-air digital broadcasting and pay TV for other programme contents; Provide the availability of digital broadcasting services to all citizens of Montenegro, either by terrestrial transmission network (free-to-air), or by satellite digital broadcasting; Adopt solutions for the specification of transmission and reception equipment to enable the introduction of additional services such as HDTV, DVB-H etc.; Create a reliable, transparent, technology neutral environment, promoting the implementation of digital switchover and development of electronic communication infrastructure intended for the information society development and meeting the needs of the public; During the switchover process, ensure efficient, objective and transparent planning, administration and management of broadcasting frequency spectrum; During the switchover process, ensure the preservation, protection and promotion of national heritage and cultural diversity; Create and promote possibilities to satisfy the needs of people with disabilities and of vulnerable groups among Montenegrin population; Increase the production both in terms of quantity and quality and reduce transmission/distribution costs for PSBs; Ensure a stimulating framework for creating added value services compared to the existing analogue broadcasting systems for all stakeholders. Digital Switchover Strategy Objectives

4. Contained in the Final Acts of GE06 Agreement DVB-T plan with: 7 national coverages in the UHF band & 1 national coverage in the VHF band Every national coverage  3 allotment areas Additional sub-allotment for the coverage of the capital city MPEG-4 – AVC standard Radio Frequency Allocation Plan for Digital Broadcasting ofMontenegro

5. Digital Dividend • Digital switchover releases a part of the frequency spectrum - digital dividend • May be used for new broadcasting services as well as for other electronic communication services • It is necessary to assess realistic needs in reference to existing and the intended services • When making such decisions, it is of utmost importance to take into account the solutions ofneighbouringcountries and technical considerations regarding harmonisation options for the digital dividend on European level, based on a regionalconsensus.

6. Economic aspect as envisaged by Switchover Strategy • Cost assessment for the first DVB-T national coverage network: • digitalisation of complete DVB-T national coverage network (including transmitters, would amount to: • - 3,000,000 € not taking into account the cost for spare transmitters; • - 4,500,000 € with spare transmitters. • Cost assessment for consumers: • purchase of STB reception equipment for the total population of Montenegro will be done through cooperation of relevant authorities and institutions; • size and structure of target group to be subsides need to be defined; • procurement of 100, 000 STBs needed for the first phase, with subsidy 30% of STB price – minimum amount of funds to be provided approximately 2,400,000 €. • Approximately 7,000,000 € (first DVB-T national coverage network, spare transmitters and minimum fund required for STB procurement)

7. Promotion of the Digitalization Process • A well designed and timely information campaign is necessary, in order to: • Inform the public about the reasons for digital switchover; • Increase citizens awareness of the advantages of the digital TV; • Ensure that Montenegro’s citizens have timely and objective information about the process through various communications channel, as important precondition of the successful fulfilment of the project.

8. The way ahead (1) • Drafting necessary Swithover legislation, in order to: • Ensure political commitment to the process; • Adopt and widely announce a concrete timetable for the final analogue switch-off to avoid, among other things, market distortion due to possible uneven development of DTT in various parts of the country; • Ensure clear communication and transparency in the operation of all the key stakeholders (independent regulators, network operators, national public broadcasting services - Radio Television of Montenegro as well as other audiovisual service providers); • Develop strong support and presence of public broadcasting services (PBSs) in the overall digital switchover process;

9. The way ahead (2) • Support as much as possible a predominantly free-to-air offering; • Try to ensure broad industry consensus and support, particularly from commercial broadcasters; • Any government interventions in relation to the models for supporting the acquisition of the receiving equipment should be limited, targeted and neutral; • Ensure constant coordination and control of the process, develop prompt reaction in case of the needed revision of the process milestones, parameters and responsible stakeholders. • Switchover, i.e. the transition from analogue to digital broadcasting is a complex process with social and economic implications going well beyond the pure technical migration

10. Thank you for your attention! Agency for Electronic Communications and Postal Services of Montenegro