SADC Forum on Analogue to Digital Migration Workshop

1. SADC Forumon Analogue to Digital Migration Workshop Transition from Analogue to Digital Broadcasting : regional experience and best practices 27 – 31 August, Mozambique 2012 by Shola TAYLOR ITU Senior International Expert CEO, Kemilinks International & former Chairman, ITU Radio Regulations Board

2. Presentation Outline • Background to Digital Transition • Benefits of Digital Transition • Current Broadcast Environment in Africa • Main implementation considerations in Digital Transition • ITU Activities on Digital Transition • Issues of High Importance • Policy Direction, Technical Standards, STB • Switch off dates and related issues • Industry Model and Infrastructure provision • Content Provision • UK, Germany, Finland and USA • Africa and Digital Transition • Can Africa meet the ITU deadline? • Way forward

3. Background to Digital Transition • RRC was to plan all digital terrestrial broadcast services for sound and TV • Two sessions : 2004 and 2006 • S1 : established technical basis for regional agreement, including intersessional studies • S2 : to carry out planning exercises + draw the Plan • New Plan based on broadcasting standards: T-DAB for sound and DVB-T for TV • Complex Planning process using complex software • Agreement for digital broadcasting services in the frequency band 174-230MHz and 470-862MHz • Transition period from 17 June 2006 to 17 June 2015, allowing some countries an additional five-year extension for the VHF band

4. Benefits of Digital transition • Africa’s 1bn population a huge opportunity • Better technical quality, better signals, spectrum efficiency • More programmes accommodated • New multimedia services • Economic and social benefits – GDP, employment etc • Creation of competition for more Local Content

5. Current Broadcast Environment in Africa • Government dominated broadcasting for a long time (PB) • Liberalisation has produced commercial broadcasters • Majority of populace depend on FTA • Access to terrestrial TV still low: less 20% in many African countries • Local Content has improved significantly but remains a major challenge • Pay TV on the rise although still beyond the reach of average African • About 50% of African countries each operate only between 1-2 analogue channels • Digital Transition offers many opportunities for Africa

6. Main Implementation Considerations in Digital Transition • Market driven or policy driven: need for a roadmap • Switch off and Switch on dates and dual illumination considerations • Technical Standards • Spectrum Planning • Network Rollout • Legislation, Licensing regime • Communication Plan • Human Capacity Development • Costs: network, STB • Implementation Strategy

7. ITU Activities • Report ITU-R BT.2140 :Transition from analogue to digital Terrestrial broadcasting • ITU-D Question 11-2/2 “Examination of terrestrial digital broadcasting technologies…” • ITU-D SG 2’s Report on question 9-2/2 “Identification of study topics in the ITU-T • Guidelines for the transition from analogue to digital broadcasting • ITU-D study groups which are of particular interest to developing countries

8. Policy direction • In most developed countries market driven with appropriate government intervention • In most developing countries, policy driven and need for a road map • Approach will vary from country to country • Economy • Small and big countries • Extent of terrestrial penetration • Regional Approaches such as SADC Roadmap

9. Technical Standards: • Costs • Spectrum efficiency • Trials • Many standards • ISDB-T: countries in South America/Japan • DVB-T/DVB-T2: European countries/most African countries • Each country to take a decision after appropriate analysis

10. STB • Use of STB as a Universal Access tool by Government • Defining Technical Specifications: proprietary/open access • Free to Air Considerations; consumers must not be made to pay for FTA • Addressing issue of Multiple Decoders for Pay TV; possible use of scratch cards • Local manufacturing for bigger countries e.g. South Africa, Nigeria • Affordability: Nigerian targets US$20 for basic STB • Direct Subsidy to consumer virtually unrealistic in Africa because of effective monitoring and resource limitations

11. Switch off Dates and related issues • Short period Reduces dual illumination costs • Reduces risk of technology dumping • Provides sufficient time to for uptake and usage of STBs and digital TVs – before cut off date • National broadcasts will be transmitted as must carry, free-to–view, on any digital terrestrial platform that may be available • In Europe average of 6 years to transit ANALOGUE ANALOGUE & DIGITAL DIGITAL Digital Switch-on: Analogue Switch-off date:

12. Industry Structure and Infrastructure provision • Signal Distributor separate from content provision • Examples from Europe • South Africa (Sentech etc) • Licence regime review (content vs signal distributor) • Signal Distributor: how many? • Ideally one Signal Distributor – costs etc • Government owned or privately owned SD • 1 Govt + 1 or more Private • UK BBC example to focus on content • Ghana PPP model (50%:50%)

13. Content Provision • Development of local Content is key in maximising the opportunities that the transition brings • In the UK, Private sector led in production of compelling and affordable content • Nigerian content success story result of regulatory intervention including appropriate sanctions • Local Content 80% for FTA and 20% for Pay TV • Content for family belt hours must be local • Result – Multichoice/DSTV created Africa Magic (4 channels today) and now has one of the largest studios in Nigeria fully equipped with HD equipment • Success stories also in Ghana and Kenya

14. UK • Big country • High terrestrial TV penetration: nearly 50% of spectrum between 200MHz - 1GHz or (about 368 MHz) was used to broadcast analogue TV across the country • Government supported process with active private sector participation • Restructured industry model: signal distributors separate from content providers; Private sector led in production of compelling and affordable content • Good communication plan with consistent message to consumers • Economy of scale led to inexpensive STB costs @ US$30

15. Germany • Market dominated by cable and satellite services – makes pay DTT difficult to implement • Regional media authorities responsible for the DSO process • A wide publicity campaign was carried out • More broadcasting : 3 nationwide networks DVB-T (public) • up to 4 additional networks region-wise/cities (private broadcasters)  12 to 30 programmes instead of 3 to 7 • Added value within broadcasting • introduction of DVB-T2 including plans for HDTV for some programmes • Government subsidised public broadcasters’ equipment upgrade through annual levies on commercial channels up to US$97 000 • The incentives and subsidies provided to terrestrial TV broadcasters increased their commitment to DTT roll-out

16. Finland • Small country and easy to communicate plan to all households • Realistic and firm date for ASO before the start of DSO, and communicating it to all stakeholders, accelerates process • Commercial and private packagers increased competition in the market (no of channels on offer) and level of digital conversion • Regulatory initiatives (e.g. 10-year waiver of the licence fee) helped make the business case for DTT providers more attractive

17. USA • Subsidy in form of US$40 voucher to purchase DTT STBs helped to increase uptake. • Majority of analogue terrestrial TV stations were switched off in June 2009; some left running to warn households who had not yet bought an STB, to do so before they lost their connection • The “must carry” rules enforced by the regulator required cable operators to carry all free programming offered by DTT broadcasters, to enable households to view these channels even during the transition

18. Advisory for Africa - Implementing digital transition • Approach will vary from country to country • Multi-stakeholder coordination essential • Compelling content (regulatory intervention may be necessary) • Technical Standards: any decision will affect commercial uptake; SADC already has recommended standards • Role of Satcom to complement terrestrial technology • An effective Communication Plan is required • Funding: government support plus incentives to industry e.g. tax regime, licensing regime

19. Can Africa meet the ITU deadline? • ITU deadline is June 2015 • African Union set deadline 31 December 2013 • SADC deadline is 31 December 2013 • Kemilinks International analysis shows that without a renewed vigour, not more than 60% of African countries will meet the deadline due to • Insufficient commitment by Government • High dependency on terrestrial technology • Low disposable income • Significant number of households to transition • Local Content challenge • Funding issues

20. Way Forward • More engagement with individual countries at high level by regional institutions such as SADC • Peer to peer review reports made available to all countries • More support from international partners • Effective AU intervention THANK YOU