DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 1 Mobile television Regulatory and Market Issues The French case François Rancy [email protected]

DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006

1

Mobile televisionRegulatory and Market Issues

The French case

François Rancy

[email protected]

ASBU, Tunis, 30 April 2009


2

DTT development in France

2005200520062006 20072007

Source: CSA

85 % of population85 % of

population35 % of

population35 % of

population

End- 2011: 95% of population


3

Digital broadcasting

CSA

470

MH

z

830

MH

z

862

MH

z

790

MH

z

Spectrum and digital dividend allocations in France

72 MHz

DéfMobile-

ARCEP

320 MHz

Digital dividend for Mobile services

Digital dividend for broadcasting:

• more programs

• more coverage

• HDTV

• Mobile TV


4

DTT coverage extension

Objective : ensure as many people

as possible have access to DTT

before analog switch-off

DTT coverage must reach 95 % on a

national lever and 91% in each

regional administrative subdivision

New services roll out

Objective : increase the variety of

services offered on DTT

Additional national and regional

programs

High definition services started on

30 October 2008

Mobile Television (“Mobile Personal

television”)

DTT development strategy

Based on Law (5 March 2007)


5

The regulatory agenda for mobile TV

- 5 -

Technical decisions

Broadcasting : DVB-H and MPEG4

ESG standard : IPDC

No CAS standard

Audiovisual bill

March 5, 2007

Audiovisual bill

March 5, 2007

Gov decision on standards

September 24, 2007

Gov decision on standards

September 24, 2007

CSA consultation

Publication of main findingsJune 15, 2007

Publication of main findingsJune 15, 2007

Beginning of selection processNovember 6, 2007

Beginning of selection processNovember 6, 2007

Launch

Mobile TV regulatory framework

Similar to DTT

Licenses awarded to broadcasters through a comparative selection process

No spectrum fee nor auction procedures

Broadcasting and production quotas

Specific anti trust rules

Discussion and working groups with industry

Authorisation dateAuthorisation date

Selection procedure

Consultation

General agreement on the possibility to launch Mobile TV on the available resource

But no agreement on the business model

Necessity to organize working groups with the players before moving on

Comparative selection procedure

Coverage : 30% at T0 + 3 years ; 60% at T0 + 6 years

13 services + radio + interactive services

Selection criteria : adequate programming ; coverage and quality of reception

Where we are now


6

The selection procedure

Negotiation between mux op and tower companies - Mobile TV network roll out

January 2008

Tender procedure closure

October 2008

Mobile TV services licensing

April 2008 Publication of a short list of

candidates

2010 ? Commercial start

Tender procedure

Tender procedure

Network roll out

Network roll out


7

Selected DVB-H TV programs

Limit the risks of a lack of appeal to consumer of this new medium, by selecting programs

which are already attractive for the consumer (DVB-H line up = 48 % of national TV

audience)

Take into account the specificities of mobile TV with appropriate thematics (sport,

information) or some new and innovative projects (Europa Corp TV)

Ensure pluralism by diversification of the DVB-H program broadcasters (2 authorizations

for each group, whereas 3 is the limit)

NEWS

GENERALISTS

MUSIC AND ENTERTAINMENT

MOVIES SPORTS

PUBLIC CHANNELS (SELECTED BY THE FRENCH GOVERNMENT)

3 objectives for the

selection

3 objectives for the

selection


8

The access fees are an essential component for the BP

Subscription fees, perceived by service retailer

Fixed amount by device (“unconnected” and/or

“connected”)

Difficult negotiations

between broadcasters and mobile operators

Difficult negotiations

between broadcasters and mobile operators

Network costs : estimated 55 M€/year for 30% pop cov and

145 M€ for 60%

Network costs : estimated 55 M€/year for 30% pop cov and

145 M€ for 60%

Cost

Advertising revenue : estimated24 M€/year

Advertising revenue : estimated24 M€/year

Access fees : estimated 312 M€/year

Access fees : estimated 312 M€/year

Revenue

Content costs (simulcast)Content costs (simulcast)

Hypothesis : 6.5 M subscribers in

2012

Hypothesis : 6.5 M subscribers in

2012

DVB-H broadcaster BP : a “hard to reach” equilibrium

Negotiations stalled since October 2008 Negotiations stalled since October 2008

Commercial negotiation for the distribution of the DVB-H programs


9

Roadmap for Mobile TV deployment

Mobile TV roll-out

Regulatory obligation to reach a

coverage of 30% of pop in 3 years

CSA has published a list of 30

urban area to reach this objective

CSA has proposed a spectrum

planning and TV protection control

process, which involves both the

CSA and the multiplex operator

But discussions are under way

regarding :

The details of the planning

process (allotment)

The coverage priorities and

sequence

Head-end specifications

The CSA has proposed a technical

framework as technology neutral as

possible

Every CAS or ESG technology

combination could be

accommodated

Difficult discussions between

mobile operators and broadcasters

The devices industry waits for final

specifications


10

Under the current regulatory constraints, no agreement on financing between

program providers and mobile operators

Mediator designated by government to facilitate agreement. Conclusions

expected by end-April 2009

Among the questions to be answered :

Possibility for a greater control of the mobile TV network and commercial

roll-out by the players which are ready to invest (mobile operators and

maybe some broadcasters)

cost/benefit analysis of a change of technology in the UHF band (DVB-SH

instead of DVB-H) taking into account the development of satellite

services in the S band (EU authorizations expected end-April 2009)

Conclusion

Documents

DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006 1 Mobile television Regulatory and Market Issues The French case François Rancy [email protected]