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Delivering the digital dividend

By 2012, television broadcasting services across the EU will have completed the transition from analogue to digital technology. The switchover will release a significant amount of high quality radio spectrum which will be free for the deployment of new services and new technologies. This ‘digital dividend’ can boost both the broadcasting sector and the wireless communication industry, make a major impact on competitiveness and growth, and provide a wide range of social and cultural benefits. But gaining maximum advantage of this unique opportunity will require a coordinated European strategy for its future use.

The switchover from analogue to digital terrestrial TV, to be completed in Europe by the end of 2012, will free up a very large amount of radio spectrum. This ‘digital dividend’ will provide a unique opportunity to meet the huge demand for new wireless communications services, allow broadcasters to significantly expand their services and at the same time provide spectrum for social and economic uses. Applications in this latter category will include broadband applications which can help overcome the ‘digital divide’: ensuring equitable access to new information and communication technologies to all the people of Europe.

Digital "bonus"

The digital dividend is derived by the ability of digital compression systems to allow the transmission of up to 8 standard digital TV channels in the spectrum previously used by one analogue TV channel, using the most widely available technologies. The gain will be even more substantive if more advanced standards are being introduced (such as DVB-T2 for infrastructure and MPEG-4 for compression).

The spectrum used to broadcast analogue TV, located between 200 MHz and 1 GHz, has very attractive propagation characteristics, and offers an optimal balance between transmission capacity and distance coverage.

It is estimated that the value of electronic communications services that depend on radio spectrum in the EU currently exceeds €250 billion. Availability of radio spectrum is a clear enabler for economic and social growth. This illustrates why it is vital that the next opportunity to provide the much needed wireless bandwidth, the ‘digital dividend’, is managed as efficiently and effectively as possible to ensure the maximum benefit for all.

New digital services

To help in the process, the Commission adopted a Communication COM(2007)700 which describes the nature and opportunities of the ‘digital dividend’, and demonstrates the added value which can be derived from a common approach at EU level. This would enable economies of scale by establishing the prospect of an internal market.

The document proposes a common way forward to ensure an efficient and flexible use of the digital dividend spectrum by a wide range of potential applications.

If the digital dividend is managed as efficiently and effectively as possible, the range of uses to which it can be applied will be wider, with potentially more wireless applications having efficient access to this valuable resource. Of all the applications, the category of electronic communications is the most promising. These applications include wireless broadband communications providing ubiquitous broadband access for all, additional terrestrial broadcasting services and mobile multimedia applications.

A common roadmap

The Radio Spectrum Policy Group held a public consultation in preparing its opinion on the digital dividend, which already highlighted that the potential of the digital dividend could be hampered if access to spectrum is not better coordinated across Member States. To overcome this risk, it calls for ‘tidying up’ the spectrum of the digital dividend in order to make it more usable and more consistent across borders. But this is only possible if Member States work together and if the EU coordination of spectrum planning for the digital dividend is reinforced.

Moreover, reinforced EU spectrum coordination will facilitate EU-wide interoperability, thus reducing distortions of competition in the single market and creating opportunities for existing and new entrants to launch innovative wireless services.

Amongst the initiatives envisaged are the establishment of pan-European ‘application clusters’ in common spectrum bands. The Commission has launched an in-depth study to review all possible technical, organisational and regulatory options and to evaluate its social and economic impact.

More information on this study can be found at the consultants website.

The foreseen timeline for what concerns the digital dividend work being done in the Commission services is highlighted below:

The preparation of the Commission's proposal for the digital dividend is on track:

• the technical studies in CEPT are progressing as planned
• the Commission study on social and economic aspects will deliver its key results and recommendations by mid 2009.

On the 6th of March, the Commission consulted the main stakeholders (hearings by invitation only in three separate sessions for respectively the broadcast sector, the wireless sector and other potential users). RSPG members were associated to these hearings, the RSPG chairman being part of the panel.

 

Summary of Stakeholders hearings held on 6 March 2009 in Brussels

 

The digital dividend is high on the Commission's policy agenda due to its significant potential impact on growth and economic development. It is becoming even more important given the efforts being made to stimulate economic recovery.

As announced in the Commission’s communication COM (2007) 700 on "Reaping the full benefits of the digital dividend in Europe: A common approach to the use of the spectrum released by the digital switchover" and supported subsequently by both the European Parliament and Council, the Commission is preparing a proposal for an EU strategy for the digital dividend. This preparation is being assisted by a large-scale study on the digital dividend (entrusted to Analysys Mason, DotEcon and Hogan & Hartson) and is conducted in close cooperation with Member States and the Radio Spectrum Policy Group (RSPG).

In this context, the Commission invited all concerned national public authorities to the Member States workshop on the digital dividend which took place in Brussels on 15 April 2009.

This workshop was organised jointly with the RSPG Working Group on the digital dividend, represented by its Rapporteur, Mr Mike Byrne, Commissioner at ComReg.

A summary of this first workshop is available at www.analysysmason.com/EC_digital_dividend_study.

Second Member States' workshop on the Digital Dividend - Brussels, 26 June 2009

The Commission invited the relevant national public authorities and administrations to the second Member States' workshop on the digital dividend which took place in Brussels on 26 June 2009.

In this second workshop the consultants presented the draft findings of their study. This included the scenarios and options for coordinated action that have been considered, the results of socio-economic analysis, as well as a detailed preview of their planned recommendations to the Commission. The workshop was also one of the final steps in the preparation of the Commission's proposal on the digital dividend.

A summary of this second workshop is available at www.analysysmason.com/EC_digital_dividend_study.

Public presentation of the Digital Dividend Study

In the development of the strategy for the digital dividend, and in particular in the elaboration of the proposals submitted to public consultation, the Commission was assisted by a large-scale study conducted by Analysys Mason, DotEcon and Hogan & Hartson. This study included wide-ranging consultations and also involved close cooperation with Member States and the Radio Spectrum Policy Group (RSPG).
The Commission invited all interested stakeholders to a public presentation of the final results of the study which took place in Brussels on Wednesday, 9 September 2009. This presentation provided the consultants with the opportunity to present the analysis that they have undertaken, as well as their recommended actions. It also provided stakeholders with the opportunity to question the consultants about their work.

The presentation slides can be found on the consultants' website.

Public Consultation on the Digital Dividend

On Friday, 10th of July 2009, the Commission launched a public consultation on the digital dividend.

The purpose of this consultation document was to obtain comments and views from all interested stakeholders on the use of the Digital Dividend radio spectrum released through the transition to digital terrestrial television. It outlined proposals being considered as part of the planned EU roadmap, both for short term action as well as longer-term policy debate, in order to assist the Commission in finalising these proposals.

The public consultation ran till the 4th of September and the list of respondents and their input can be found on the dedicated page on this web site.

Adoption by the European Commission of a proposed roadmap for the coordination of the Digital Dividend

The Commission has adopted a Commission Recommendation and a Communication to the European Parliament and Council on 28 October 2009.

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