Digital Dividend
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The unprecedented amount of spectrum that will be freed up in the switchover from analogue to digital terrestrial TV is known as the Digital Dividend. |
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Why does the mobile industry need around 100 MHz?
- Economic studies show that about 100MHz gives the optimum trade-off in Europe
- It is in line with MEPs' ITRE report
- It leaves broadcasters with the spectrum they need to offer more content (75% of the resource)
- This spectrum needs to be harmonised as much as possible to control cross-border interference and reduce terminal costs – separate national bandplans destroy value
- LTE needs wider bandwidths to offer mobile broadband data rates (2 x 20 MHz for up to 100 Mb/s downlink) that consumers want, efficiently
- Spectrum allocation needs to accommodate multiple operators to promote competition
- More may be needed in some markets on a national basis, which may happen at different times in different markets
What can be done to attain 100 MHz?
Allocation of the digital dividend is a national prerogative, meaning that Member States of the European Union are entitled to manage the freed up spectrum according to their national interests, provided that they are in line with the decision taken within the International Telecom Union (ITU). The Member States are likely to be bound also by a spectrum management framework, as set out at the European level, in order to guarantee benefits that stem from a minimum common denominator of spectrum allocation.
These benefits include the possibility of harmonized frequencies, the balanced allocation of spectrum between the different service providers, and the avoidance of interference within the boundaries of the European Union. Overall, this would lead to faster, cheaper and better services with an increased possibility for content enhancement and interoperability of devices (e.g. Mobile TV).
On 23 September 2008, the European Parliament, in a Report from MEP Patrizia Toia (LINK), encouraged the European Commission and the Member States to:
- Choose a balanced approach to allocate the digital dividend in order for both broadcasters and e-communication operators to offer their services
- Establish national digital dividend strategies until 2009 in order to address divergence in national regimes for spectrum allocation and switchover timetables
- Cooperate towards identifying sub-bands for different application clusters that could be harmonized
- Allow access for unlicensed users (such as local communities, particular social groups or educational services) to currently unused frequencies (white spaces) and set up cooperation of national authorities on this issue
- Conduct a study analysing the conflict between users of open source software and certification authorities concerning new technologies (e.g. Software Defined Radio)
The European Commission is currently preparing a "Study on the Economic, Social and Cultural Benefits of the Digital Dividend" to which different stakeholders and the Member States can provide input.
The European Commission is likely to present a concrete legislative proposal for a common framework of management of the digital dividend in Europe. This proposal will address the issue and will – once it has passed the decision making procedure involving also the European Parliament and the European Council – be binding for the Member States of the European Union.
GSMA will closely follow this process and ensure that the industry’s voice is heard in preparation of the legislative proposal and during its review within the European Institutions.
"We must make sure that the spectrum that will be released from the digital switch off in Television will be optimised for Europe's long-term future: the so-called digital dividend.
"This means, first, sufficiently large blocks of spectrum should be released to allow high speed internet services over wireless.
"Second, dividend spectrum should be released in a way promotes new competitors to enter and shake up the market, this will encourage an early shift from legacy and closed voice mobile to new and open wireless web services.
"Third, we need these bands to be allocated in a coordinated way across the EU so that the scale economies are quickly realised for equipment providers and operators, thus allowing users to benefit quickly from low prices.
"Spectrum policy should become open, market based and pro-competition and now is the time to do it, because now the window of opportunity is open."
Viviane Reding, EU Commissioner for Information Society and Media, November 2008
KEY FACTS
- Allocating at least some UHF spectrum to mobile operators would generate between €63 billion and €145 billion in NPV (source: Spectrum Value Partners study)
- The economic output per MHz of bandwidth is estimated at €168 million for mobile compared to €28 million for digital TV (source: SCF Associates study)
- The mobile industry needs only 25% (100 MHz out of around 400 MHz) of the digital dividend spectrum, meaning there will still be plenty of spectrum available for broadcasters to develop and enhance their digital TV services
- The threat of interference between TV and mobile channels is a myth: it is less likely post-digital switchover than it is today
- In future, the mobile broadband channel will also be needed and used by the TV industry to deliver content
