BCI DTT Licencing Policy

Sponge Bob

This became final in December and is no longer a draft. I do not believe that it has been published here before. SB

A few small changes were made by the BCI in December based on the responses to this doc but the changes did not effect the technical standards in the second post ( in bold)

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DTT Multiplex Licensing Policy
DRAFT POLICY DOCUMENT

Targeted Consultation – Phase 2
Broadcasting Commission of Ireland
November 2007
Table of Contents
Part 1 Background Information
1. Background to the BCI
3
2. The BCI’s role in DTT
3
3. Aims and Objectives of BCI DTT Licensing Policy
4
4. Structure of Consultation Document
5
5. How do I participate in Phase 2 consultation?
5
6. Overview of Phase 1 Policy Development – Consultation Strand
6
7. Matters for ComReg
7
8. Legislative Matters for the BCI
8
Part 2 Consultation Matters and Associated Questions
Draft Policy Positions
1. Economic and Business Issues
1.1 DTT Champion
10
1.2 Business Model/s for DTT Platform
12
1.3 Role of RTÉ in DTT Platform
13
1.4 Ownership & Control
14
1.4.1 Character of Applicant, Experience, Expertise & Resource
14
1.4.2 Assignment of Multiplex Contract(s)
15
1.4.3 Media Concentration
15
1.5 One or more multiplex contracts to a single operator?
17
1.6 BCI Contract Duration
18
1.7 BCI Fees
19
1.8 Mobile TV (DVB-H)
20
2. Technical Matters
22
2.1 Network Coverage
22
2.2 Definition of “Predominantly TV”
23
2.3 Access Services
24
2.4 DTT Receivers (including Set-Top Boxes)
25
2.5 Other Technical Considerations
26
3. Content
29
3.1 Content expectation and content mix
29
3.2 Fair and reasonable access for content providers
32
3.3 HDTV
32
Glossary
36
Appendix 1: Legislative Matters for the BCI in the award of DTT licences
Appendix 2: Summary of Phase 1 Consultation
Part 1 Background Information

1. Background to the BCI
Please Note: a glossary of terms can be found at the back of this document. We
encourage participants to read this glossary for a full explanation of terms used.
The Broadcasting Commission of Ireland, known as the BCI or ‘the Commission’, is an independent
statutory body with responsibility for a number of key activities related to television and radio services in
Ireland, as laid out in the provisions of the Radio and Television Act 1988, the Broadcasting Act 2001, the
Broadcasting (Funding) Act 2003 and the Broadcasting (Amendment) Act 2007 .
The key activities of the BCI include:
Licensing independent television and radio stations (for example TV3 and Today FM);
Monitoring the services that are licensed to make sure that they meet the terms of their contracts
with the BCI;
Developing codes and rules on advertising, access to services for disabled people and
programme standards;
Training and development work with the broadcasting sector;
Managing a grants scheme for programmes on Irish culture, heritage and experience
Providing information; and
Carrying out research on broadcasting in Ireland.
2. The BCI’s role in DTT
Currently, people receive television programmes in one of four ways:
by analogue signal (through an aerial on the roof).
through a cable system (for example from a company such as NTL)
through MMD or,
by satellite (through a satellite dish),
The European Union has agreed among its members to cease the transmission of analogue television
around 2012. The name given to this is ‘analogue switch-off’. From then on, television will only be
available through cable, MMD, satellite or digital terrestrial television (DTT).
At the moment digital TV is available through cable, MMD and satellite but terrestrial digital television
(DTT) is not available. The Broadcasting (Amendment) Act 2007 (“the 2007 Act”) came into force
earlier this year. This law requires the BCI to license commercial digital terrestrial television (DTT)
operators in Ireland. The Broadcasting (Amendment) Act states that the BCI must use its best efforts to
undertake this work in six months.
Separately under the 2007 Act
1
, RTÉ has been gifted a single multiplex which it will establish and run
independently of BCI-licensed multiplexes in fulfilment of its public service remit.
In advance of the commencement of licensing, the BCI is developing a DTT Licensing Policy. This policy
development work includes both consultation and research elements with the aim of further informing the
Commission’s position on relevant issues.
1
Among other things, this law is concerned with trying to ensure that those who receive existing free-to-air
terrestrial services will not have to pay to watch them when digital terrestrial television is introduced.
Consultation is central to the work of the Commission and is considered to be a vital element of the
policy development work undertaken for DTT. The Commission recognises a variety of consultative
models and formats. In order to maximise knowledge in relation to DTT, and to accurately reflect and
consider the views of key stakeholders, it was agreed that a targeted approach to consultation was
most appropriate. The primary aim of consultation is to bring together the broad range of stakeholder
views on DTT, and to further supplement independent research commissioned by the BCI to support its
policy development work in this area.
In line with the agreed approach, the Commission adopted a two-phased model of policy development.
The first phase of consultation, which took place between May 2007 and September 2007, included a
number of one-to-one and round-table meetings (as appropriate) with stakeholders (listed in Section 6
which follows).
A thematic approach to consultation, which placed emphasis on key issues relating to DTT, was adopted.
These issues included: learning from the DTT Pilot; business/economic issues for the DTT platform;
ownership and control issues; content and channel packages; technical issues including the development
of a national technical specification for DTT and DTT receivers; licence and contract duration and
access/facilitative services for disabled consumers. In addition to those areas of interest identified by the
BCI, participants were invited to discuss and explore other issues they felt were relevant to the process.
Alongside this work, the BCI commissioned independent research, undertaken by GOS Consulting, a UK-
based expert research agency for broadcasting and related matters. The aim of this research was to
further inform the BCI’s policy on DTT licensing, in the context of developments in other European
jurisdictions. The two jurisdictions selected for analysis were the UK and Austria.
As our nearest neighbour, there is much to be learned from the UK experience of DTT in terms of the
licensing of the DTT platform, regulatory issues (building on our positive working relationship with Ofcom)
and given the role of UK channels in the Irish broadcasting context. Austria, which recently launched
DTT, is being examined as it is a broadly similar jurisdiction in terms of the penetration rate of cable and
satellite and, it is a nation with a larger (German-speaking) neighbour with content access issues which
are similar to those between Ireland and the UK. There is learning in terms of the policy development
work they have undertaken including their approach to the licensing process itself.
This document has been prepared for Phase 2 consultation, which you are being asked to participate in.
This Phase of work will include a targeted consultation forum (further detailed below) and will give
participants from Phase 1 consultation , the further opportunity to express their views on issues related to
the Commission’s policy on DTT licensing.
3. Aims and Objectives of BCI DTT Licensing Policy
Aim of Policy:
To take all regulatory measures within the Commission’s remit to secure, as far as possible, the
development and establishment of a viable digital terrestrial television platform in the State, in advance of
analogue switch-off (ASO).
Objectives of Policy:
To provide the framework for the fulfilment of the Commission’s functions, duties and obligations
in respect of digital terrestrial television, under the Broadcasting (Amendment) Act 2007.
To increase the potential and opportunity for the licensing of broadcast content available to Irish
audiences in furtherance of the Commission’s duty under Section 11 (2) of the Broadcasting Act
2001 and its own strategic goals and objectives.
To facilitate further consumer choice in respect of the platform from which Irish audiences receive
broadcasting services and other audio-visual content.
To maximise platform and economic opportunities for broadcasting services and content
providers by potentially increasing the availability of services and content to audiences.
To facilitate business opportunities in the media sector.
To provide an enhanced video, audio and interactive television experience for terrestrial
television users.
4. Structure of Consultation Document
The purpose of this document is to provide an overview of the BCI’s draft policy positions on the licensing
of Digital Terrestrial Television (DTT) in Ireland. By reading this document and attending the Phase 2
consultation forum, key stakeholders are being invited to provide feedback and comment on the outlined
BCI policy positions. These positions were arrived at following the first phase of its policy development
work which included:
Targeted consultation with a wide range of key stakeholders;
Knowledge-building and,
The commissioning of independent qualitative research on DTT in two other jurisdictions.
As part of its general work, but specifically in the context of policy development, the Commission is
required to take an informed position on a range of issues and further, to contribute to the concurrent or
related consultation processes of other organisations (e.g. ComReg). During the first stage of
consultation, a wide range of issues relating to DTT were explored and discussed with stakeholders, with
these requirements in mind. Not all of the issues consulted on in Phase 1 are matters of policy for the
BCI but rather, are the responsibility of ComReg. While the BCI position on the majority of these issues
will be outlined in this document, they will not be consulted on in Phase 2. The specific purpose of Phase
2 is to inform the BCI position on those elements of DTT which fall within its remit.
The range of issues which are a matter of policy for the BCI as it finalises its position on DTT licensing will
be outlined in this document, along with the BCI’s draft policy position on each. These issues are
presented for further consideration and discussion with key stakeholders in the second phase of
consultation. It is on these matters that the greatest level of detail will be provided, to enable the full
participation of key stakeholders in Phase 2 consultation.
For information and to fully reflect the range of views expressed during Phase 1, the “Summary of
Consultation”, from Phase 1 (May-September 2007) is appended.
5. How do I participate in Phase 2 consultation?
This second phase of consultation is being used as a basis for inviting formal feedback from key
stakeholders. You are being asked to participate in this event to further express your views on the range
of issues which are a matter of policy for the BCI in respect of DTT licensing. These views will be
recorded and will be considered by the Commission as it finalises its policy position on DTT licensing.
Phase 2 of policy development will include a targeted consultation forum. This event will take place on
November 22nd, 2007 at the Westin Hotel in Dublin city centre.
In order to participate in this event, you are being asked to review this draft policy document in detail
(ahead of the consultation forum). We ask that you review the various issues from the context of your
own role and/or interest, or that of your organisation or group, in DTT in Ireland.
At the forum, the BCI will present the range of issues for discussion and each participant will be given the
opportunity to express formal views on any issues of relevance or interest to them. The proceedings of
the forum will be recorded and transcribed. These proceedings will be retained as the formal record of
Phase 2 consultation, and will be used by the BCI to inform the decision-making process for the
formulation of its DTT Licensing Policy.
No additional consultation beyond this is currently envisaged by the BCI given the anticipated timeframes
associated with the commencement of DTT licensing.
6. Overview of Phase 1 Policy Development - Consultation Strand
Phase 1 of the policy development process included consultation meetings with some 26 organisations
representing key stakeholders across government, the broadcasting sector, existing platform operators,
relevant content providers, competition and consumer groups and those representing a number of
disability/advocacy organisations.
The groups consulted were:
Department of Communications, Energy & Natural Resources (DCENR)
RTÉ/RTÉ NL
ComReg
TG4
TV3
BT/Arquiva
Eircom
IBEC/CEDA
Mason Communications
O2 Ireland
UPC Ireland
Setanta
City Channel
Channel 6
BSkyB
Channel 4/E4
Today FM
Member of former “IT’s TV” applicant group
The Competition Authority
National Disability Authority (NDA)
Irish Hard of Hearing Association (IHHA)
Disability Federation of Ireland (DFI)
National Association for Deaf People (NADP)
National Council for the Blind in Ireland (NCBI)
National Consumer Agency (NCA)
The Consumer Association of Ireland (CAI)
The outcomes from Phase 1 consultation are outlined in the BCI’s ‘Summary of Consultation’ document
which is attached in Appendix 2.
7. Matters for ComReg
Similar to the BCI, ComReg is responsible for a range of issues on DTT licensing, in keeping with its
broad statutory remit and as laid out in the Broadcasting (Amendment) Act 2007: primarily, this includes
the issuing of multiplex licences for DTT, the terms and conditions of which are a matter for ComReg.
ComReg has carried out its own consultation process on the terms and conditions that should attach to
DTT licences (for example, the fees payable by DTT licensees to ComReg and the duration of DTT
licences). The Commission has participated in this consultation and has made a formal submission on
these issues. The position taken by the BCI on these points was informed by information gathered during
Phase 1 policy development work and consultation as outlined in the sub-sections below.
Licence duration
ComReg is responsible for determining the duration of the DTT multiplex licences it issues to the
BCI, while the BCI, in turn, is responsible for determining the duration of contracts for multiplexes.
In response to ComReg’s consultation on this issue, the BCI has suggested that a term of 12
years for multiplex licences would be appropriate.
With regard to the issue of contract duration, which is a matter of policy for the BCI, this will be
discussed further in the consultation questions which follow in Part 2 of this document.
Fees payable to ComReg
Under the Broadcasting (Amendment) Act 2007 , two types of fees are potentially payable by
multiplex contractors –
Section 7 provides, inter alia, that licences issued under the 2007 Act shall be issued on
payment of such fees as may be prescribed by ComReg, with the consent of the Minister,
in regulations made under section 7. Sub-section (2) of section 7 allows that regulations,
in respect of licences or any particular class or classes of licences made under the section,
may prescribe: (a) the fees to be paid on the grant or renewal of such licences and (b) the
time and manner at and in which such fees are to be paid.
Section 10 (4) provides the basis for the terms and conditions attaching to multiplex
contracts issued by the BCI. Sub-section (4) provides, inter alia, that every multiplex
contract shall –
(b) provide that a multiplex contractor shall pay to the Commission the fees (if any)
specified therein, including any fees payable by the Commission to the Commission for
Communications Regulation under section 7 and any regulations made thereunder,….
With regard to fees payable under Section 7 of the 2007 Act, ComReg has consulted in this
regard in its Consultation Paper on DTT licence conditions. It is ComReg’s proposal that fees be
charged at a rate comparable to that charged for MMD licences. The BCI’s position is that
although this approach is fair, there remain a number of considerations specific to DTT. In this
regard, the BCI has made a number of suggestions to ComReg on the manner of calculation of
fees, which may result in a lesser burden for licensees.
Telecoms Data Cap on DTT Multiplexes
Under section 7.3.2 of the 2007 Act, a television multiplex means “a multiplex in which the
programme material is predominantly television”. The level of television programme content to be
carried on DTT multiplexes, therefore, is a matter for determination by the BCI. The
Commission’s proposals for what constitutes “predominantly” will be dealt with in a later of this
document.
In determining the level of television content on DTT multiplexes, the Commission will consider a
range of factors, including the telecoms data cap set by Comreg as part of the multiplex licence
terms and conditions.
In its response to ComReg’s consultation on multiplex licence conditions, the BCI expressed the
view that programme-related data should not be subject to the data cap. Furthermore, the BCI
expressed the view that the level of non-programme related data permitted on DTT multiplexes
should be subject to a maximum level of 15-20%.
8. Legislative Matters for the BCI
Section 9 (2) of the 2007 Act provides a framework for considering multiplex licence applications. The
criteria set out under the aforementioned section assisted the BCI in structuring the range of issues
consulted on in the development of its draft policy on DTT licensing. The provisions of Section 9 (2) are
attached in Appendix 1 to this document, for information.
Part 2 Consultation Matters and Associated
Questions
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Draft BCI Policy Positions
The issues detailed in this section are those which are a matter of policy for the BCI as it determines its
final position on DTT licensing. All the issues included here were consulted on in detail during Phase 1
policy development. The BCI’s draft policy position on each issue, along with the related key
considerations, is outlined below for further discussion in Phase 2 consultation. This section, Part 2,
consists of three sections dealing with Economic and Business Issues, Technical Issues and Content
Issues, respectively. Consultation questions will be posed after each relevant issue.
1 – Economic and Business Issues
The BCI’s Phase 1 consultation attempted to explore with key stakeholders the potential business
model/s that they considered might be appropriate in an Irish context. Further, the economic challenges
posed by the current make-up of the television market were considered. Five central themes emerged in
the course of consultation as follows:
The concept of a driver for the platform, or “DTT Champion”;
The business model/s for DTT in Ireland;
The assignment of multiplex licences;
The role of RTÉ in the DTT platform and;
The inclusion of DVB-H services on the platform.
Each of these issues will now be considered in turn.
1.1 – DTT Champion
The 2007 Act details the allocation of television multiplex licences as follows:
RTÉ is gifted one multiplex in the first instance, with the potential for a second multiplex (most
likely to be established after analogue switch-off).
BCI-licensed operators: three multiplexes are available to the BCI to licence in the first instance
(with a fourth to be available after analogue switch-off). There are potentially further licences
available to the BCI following consultation with ComReg.
The construction of the Act, therefore, envisages the platform as being “divided” between various
multiplex operators – RTÉ on the one hand and one or more BCI-licensed contractors on the other
(further detail on the issue of ownership and control considerations will follow in Section 1.5). The Act
does not detail the means by which a single DTT driver or ‘Champion’ will emerge.
Issues to consider
All of those who participated in consultation in Phase 1 clearly stated the need for a DTT ‘Champion’ to
be established at the earliest possible opportunity. There were no dissenting views that this is a
prerequisite for the viability, and ultimately, the success of the DTT platform.
In outlining this role, a clear distinction was drawn between promotional or marketing activity and public
awareness. The latter was thought by consultees to be related to the provision of information to disparate
audiences with a mixed, but generally low, knowledge-base for DTT. Some groups saw a potential role
for the BCI in the required public awareness activities. Others, focussing more specifically on the
marketing/promotional element, recognised that as a regulator, the BCI could not promote one platform
11
over another and, as such, was not the most appropriate entity to act as the primary driver for DTT in this
way.
It was the strong view of a number of those consulted that in the absence of any statutory provision for a
‘Champion’ there is a need for concerted action by all relevant players to drive, promote and market the
platform as an attractive consumer offering. To achieve this aim, it was suggested by some that a
collaborative effort is required on the part of all multiplex operators (RTÉ and BCI-licensed) to market the
concept of DTT to the public and co-ordinate activity at the point-of-contact with the consumer. Specific
reference was made to Digital UK on this point, with consultees pointing to this approach as a positive
and successful one, with the suggestion that Ireland could potentially establish a similar organisation or
entity. Although consultees expressed a degree of urgency in relation to the establishment of an entity
akin to “Digital UK” to address the issue of platform promotion, this is unlikely to occur in advance of the
establishment of the RTÉ multiplex and the licensing of BCI multiplexes. Furthermore, even beyond this
stage, there remains the issue of funding this group and, while funding models from elsewhere could be
examined for suitability in an Irish context, agreement among relevant parties will still need to be reached
on this.
Further discussion of these points, including the particular perspectives of the various groups, can be
found on page 7 of the “Summary of Consultation” document (Appendix 2).
On the basis of Phase 1 consultation and information gathered more widely as part of policy development
work and DTT associated research, it is the Commission’s view that a DTT ‘Champion’ is highly desirable,
if not essential, to the success of the platform. It is also the Commission’s view that expectations in this
regard should be set out in the BCI DTT Licensing Policy. These expectations are likely to include the
requirement, that multiplex contract applicants set out in their applications, their proposals and
commitments in relation to their participation in a platform driver. The BCI would then ensure that these
commitments would be reflected in a range of contractual commitments entered into between the
multiplex operator and the BCI.
Consultation questions
1.
What is your view on the BCI’s proposed position on the desirability of a DTT ‘Champion’?
2.
What role, if any, do you think is appropriate for the BCI to adopt in public awareness-raising for
DTT (as opposed to platform promotion)?
3.
By what means can RTÉ and BCI-licensed multiplex contractors co-operate towards the
promotion of the DTT platform?
4.
Do you have any suggestions on an appropriate model for the establishment and funding of an
entity similar to Digital UK?
12
1.2 –Business Model/s for DTT Platform
Arising from consultation meetings, three alternative business models for the DTT platform emerged.
These were: an entirely free-to-air (FTA) platform; an entirely subscription-based model and; a hybrid
combination of some FTA content and some level of subscription content.
Irrespective of the business model proposed by consultees, all were in agreement that RTÉ (as an entity)
and RTÉ-produced content were vital to the success of the platform and, as such, the need for co-
operation between RTÉ and BCI-licensed operators as outlined in the previous section was re-stated.
Issues to consider
In discussing the alternative business models for DTT, different types of interest emerged with some
consultees interested only in providing content to the platform, others interested in the provision of
technical facilities for multiplexing operations and others still, interested in making an application for one
or more multiplex licences.
One of the business challenges for DTT, as repeatedly stated by those consulted, is that it operates on
the basis of limited spectrum and so, can only offer a limited number of channels. This, combined with a
limited market size (in contrast to the UK for example) was seen as one of the primary considerations in
examining the market potential for DTT. For these reasons, those consulted were of the view that DTT is
unlikely to succeed on the basis of a head-to-head competition with existing cable or satellite offerings.
The primary target market for DTT was thought to be those viewers (circa 30% of television households)
who currently receive their services on a FTA basis (including UK and/or Irish FTA services). Consultees
also pointed to a strong second market for DTT – those television households with multiple sets, for
whom the option existed for the ‘second set’ or ‘bedroom set’ to become a ‘DTT set’. This group is
currently estimated to be approximately 50% of television households
2
, where the primary access to
television services comes through cable or satellite. In further discussing the market opportunity for DTT,
consultees pointed to the fact that approximately two-thirds of Irish households have already
demonstrated a willingness to pay for both basic and premium television services, thereby offering some
potential for ‘churn’ from existing cable, satellite and MMD providers. In this way, it was felt that space
could indeed exist for a successful DTT platform.
Further details on the positions of various groups and views expressed on the variety of business models
is to be found in Section 4.4 of the “Summary of Consultations” document.
The issue of business model was intrinsically linked to the issue of content throughout all consultations –
high quality content specifically was seen to be vital to the success of DTT. Consultees expressed the
view that this content should include at least some of the terrestrial UK free-to-air channels (e.g. BBC1,
BBC2, ITV, C4) and the carriage of quality content across a wide range of genres including: general
entertainment; news; sport and movies. Some groups drew a clear distinction between “free” content and
“quality” content with the two not being synonymous. On this basis, the general conclusion was that if the
carriage of quality content was dependent on having some degree of subscription to the platform, then
subscription may be the most viable approach.
The issue of content will be returned to in greater detail in Section 2 which follows.
2
From RTÉ publication on DTT (September 2007).
13
Among those consulted, some expressed the view that it was essential for the DTT platform to be entirely
FTA. Others, such as DCENR, expressed a preference that the platform would have a significant FTA
component, while also stating however that the legislation was not intended to preclude the availability of
BCI-licensed services on a subscription basis. Others, still, expressed the view that a subscription-based
approach to DTT was more likely to succeed.
Only one of the parties consulted had undertaken detailed research on this question, with results
suggesting that any one of these three alternative models held the potential to succeed in an Irish
context.
Given the diversity of views and opinions expressed in the consultation process, by a range of industry
and market bodies, it is the view of the Commission that it is essential to allow for flexibility in the licensing
process in order to allow applicants to structure their own business models for DTT. The Commission
proposes that it should not prescribe any particular business model for the operation of multiplex services.
Rather, applicants for BCI multiplexes should be free to propose any business model for consideration by
the BCI. Each application will be assessed with reference to the relevant statutory criteria set out in the
Act (please see Appendix 1 for full wording).
Consultation questions
1.
What is your view on the BCI’s proposed position of allowing flexibility to applicants regarding the
DTT business models proposed?
2.
What further views do you have, if any, on this issue?
1.3 – Role of RTÉ in DTT Platform
As previously outlined under the headings of both DTT ‘Champion’ and business model/s for the DTT
platform, RTÉ’s involvement in DTT is seen as key. Many of the parties consulted, however, expressed
the view that greater clarity and certainty around RTÉ’s intentions in relation to its plans for DTT and the
associated timeframes were desirable.
Issues to consider
A variety of roles are open to RTÉ and for its subsidiary body RTÉ NL in DTT:
as the public-service multiplex operator;
as a participant in the ‘Champion’ for the DTT platform;
as an applicant (or party to an applicant) to the BCI for one or more of its multiplexes
as a ‘landlord’ providing access to transmission sites to commercial/BCI-licensed operators or;
as a provider of multiplexing services.
14
The manner in which RTÉ progresses the implementation of its additional functions under the 2007 Act is
entirely a matter for RTÉ as an independent body, consistent with its public-service broadcasting remit
and its reporting responsibilities to the Minister of Communications, Energy and Natural Resources.
However, the particular role adopted and RTÉ’s wider interests in relation to DTT remain both of interest
and relevance to potential BCI applicants.
The BCI acknowledges the co-operation of RTÉ to date and proposes to urge continued dialogue
between RTÉ and the BCI, as the Commission progresses towards the award of commercial multiplex
contracts. Further, the BCI would welcome, and indeed would be willing to facilitate, co-operation
between RTÉ and BCI-licensed multiplex contractors in the roll-out of DTT. The BCI takes the view that
RTÉ’s proposals for public-private-partnerships (PPPs) or joint-venture (JV) initiatives potentially open up
a range of possibilities for the development of the platform.
Consultation questions
1.
Are the BCI’s proposals regarding RTÉ and/or its subsidiary RTÉ NL appropriate?
2.
What further actions are desirable in relation to RTÉ’s role in DTT, being mindful of the
respective roles and independence of the BCI and RTÉ?
1.4 – Ownership & Control
Currently, the BCI operates an Ownership and Control Policy
3
which applies to services licensed under
the Radio and Television Act 1988 and the Broadcasting Act 2001. In the context of its DTT Policy
development, the question considered by the Commission is the extent to which the BCI should amend its
Ownership & Control Policy to reflect the provisions of the 2007 Act.
The BCI is required to apply a number of criteria when assessing applications for multiplex contracts (full
details of these are outlined in Appendix 1 to this document). These criteria are set out in Section 9(2) of
the 2007 Act. Sections 9(2) (a) and (b) of the 2007 Act require the Commission to consider the character
of the applicant, as well as the experience, expertise and resources available to an applicant. Section
9(2)(h) provides that the Commission shall have regard to any other matters which it considers to be
necessary to secure the orderly establishment, maintenance and operation of multiplexes.
Issues to consider
Each of; character of the applicant, experience, expertise and resources; assignment of multiplex
contract(s), and media concentration will be considered under this heading of “Ownership & Control”.
1.4.1 Character of Applicant, Experience, Expertise and Resources
In order to give effect to the provisions of section 9(2)(a) and (b) of the 2007 Act, the Commission
proposes to apply the existing provisions of the BCI Ownership and Control Policy (2005) when
considering applications for the award of multiplex contracts.
3
BCI Ownership and Control Policy (2005)
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1.4.2 Assignment of Multiplex Contract(s)
The BCI Ownership and Control Policy (2005) contains a provision stating that the Commission generally
shall look unfavourably upon proposals from contractors for changes in the ownership and/or control
structure of the contractor, within a two-year period after the award of a contract. This rule applies to
sound broadcasting contractors appointed under the Radio and Television Act 1988.
In the interests of the success of the platform, the BCI does not intend to apply any such general
restrictions on changes in ownership/control to multiplex contractors appointed under the 2007 Act.
However, contractors will be subject to statutory and contractual provisions in this regard.
1.4.3 Media Concentration
Media concentration, in general terms, refers to an entity or organisation having control of, or substantial
interests in, an undue amount of communications media in a specified area (in this instance, the State).
As a concept, it is related to the opinion-forming power of media and the substitutability, or availability, of
a similar alternative, for that media.
A key issue considered by the BCI in Phase 1 of the Policy development process was whether or not it
would be desirable to extend its ownership and control considerations to include a test of media
concentration, bearing in mind the provisions of section 9(2)(h) of the 2007 Act, as outlined above.
Arguments in support of a test include:
o Plurality in the ownership and/or control of broadcasting services is a key focus of the work of
the BCI and there is at least potential for overlap between the ownership/control of multiplex
contracts and the wider communications media in which such contractors will be operating.
o The inclusion of a media concentration test would be consistent with the BCI’s policy and
licensing approaches to date and, specifically, would also be consistent with the aims and
objectives of its Ownership and Control Policy.
o Developments across Europe show that, more generally, there is an increasing trend towards
vertical integration and such further developments in this regard could be anticipated in an
Irish context.
o Given the spectrum limitations in a DTT context, consideration of media concentration issues
is a valid one.
In contrast, issues against these arguments, include:
o There is no specific requirement for a media concentration test set down in the 2007 Act
provisions.
o Ownership and control considerations do not apply to other platform operators (outside of the
usual competition rules).
o The non-inclusion of a media concentration test would keep the process simple, non-
restrictive and flexible.
o A level of additional restrictions might be considered as lessening the chances of the success
of DTT.
o Concerns regarding diversity of viewpoint, outlet and source of information available to the
public could be addressed through consideration of the content proposals of applicants.
16
In the course of consultation, a range of views were expressed on media concentration. A number of
groups consulted expressed the view that there was undue dominance in other existing platforms (i.e.
cable and satellite) and, for that reason, there was concern around the emergence of a dominant operator
for DTT. More generally, however, the outcomes of the consultation process could be described as
favouring less rather than more restriction. This was, in part, due to the interests of some of the groups
consulted in the broadcasting sector. However, there was also concern for the perceived degree of
uncertainty regarding the viability of the DTT platform. With these concerns in mind, groups expressed
the view that they considered maximum flexibility to be desirable in the interests of the success of the
platform as a whole.
Taking all of the considerations into account, the Commission is of the view that there are sufficient and
relevant reasons for including a test of media concentration in the application process. It is both
reasonable and relevant to do so, having regard to the Commission’s existing policies and objectives and
in the interests of consistency in the BCI’s regulatory approach. It is the Commission’s proposal,
therefore, to apply a test of media concentration in assessing applications for multiplex contracts. To this
end, the BCI will amend its Ownership and Control Policy as appropriate.
Consultation question
1. What are your views with the principle of including a media concentration test in considering the
award of a multiplex contract?
Following on from this point, if, in principle, it is agreed that the issue of media concentration is relevant,
the Commission has to determine what test should be applied. Following on from this, the Commission
proposes an approach that is not overly prescriptive.
The Commission proposes to apply a test of media concentration in considering applications for multiplex
contracts, although it proposes that this is approach will not be overly prescriptive:
- The Commission will have regard to the desirability of allowing any person, or group of
persons, to have control of substantial interests in an undue amount of the
communications media in the area covered by the multiplex contract.
- “Control”, “substantial interests” and “undue amount” will be defined as per the current
BCI Ownership & Control Policy (2005).
- The Commission proposes to amend and extend the definition of “communications
media” as set out in the 2005 Policy.
- It is proposed that “broadcasting services platform” will be defined as follows:
the transmitting or re-transmitting of programme material by means of wireless
telegraphy, a cable system or a multipoint microwave distribution system, a
satellite device or any other transmission system.
17
Consultation question
1. What are your views on the proposed amendments to the BCI’s Ownership and Control Policy (2005)
in order to accommodate media concentration considerations in the award of television multiplex
contracts under the 2007 Act?
1.5 – One or more multiplex contracts to a single operator?
There is no provision in the 2007 Act which prevents the BCI from considering licensing more than one,
or indeed, all multiplexes to a single operator. While this particular issue relates, in part, to media
concentration issues (outlined in the previous section) it also warrants consideration in the context of the
business model/s for DTT and, as such, would have implications for the licensing process itself and the
BCI’s position on permitting applicants to apply for more than one multiplex if they so wish. For these
reasons this question was considered during Phase 1. Full details of the various positions taken are
outlined in the ‘Summary of Consultation’ document (Appendix 2).
Issues to consider
Given the extensive up-front capital investment required for the establishment and maintenance of
multiplexes, all consultees mentioned the issue of ‘economies of scale’ and the potential benefit of a
single DTT contractor. While all recognised this as a consideration, it should be noted that the degree to
which was this was seen as beneficial differed across groups. Some groups expressed the view that,
although a single operator for the platform held the potential benefit of being a single point of contact for
consumers and addressed issues of economies of scale in the establishment of the platform, other, more
general consumer concerns relating to issues of completion and media concentration, qualified these
considerations.
One operator for all three BCI commercial multiplexes perhaps offers greater potential for a single,
successful, platform driver – the importance of which has been previously discussed in this document.
Without exception, all groups consulted stated, that in order to be successful, the DTT proposition had to
be straightforward and easily understood, with a high degree of comfort for consumers. It was repeatedly
stated that although much of the information relating to DTT is highly technical, the consumer interface
has to remain familiar, with the key focus being on the content offering and the quality of service. A single
operator may offer a consistent and unambiguous marketing message and point of contact to consumers
thus addressing the concerns outlined.
A further consideration lies in the fact that there are no specific commercial restrictions on the operators
of other television broadcasting platforms in the satellite, cable and MMD markets and as such, the
argument could be made that imposing such restrictions on an emerging market such as DTT, with which
there is a degree of uncertainty, does not facilitate the successful establishment of this platform as a
viable, sustainable consumer offering.
Finally, a single operator may carry greater potential negotiating strength in relation to accessing and
carrying quality content and as such, may have a greater chance of competing with alternative platforms
thereby benefitting consumers.
18
As a result of the consultation and research information obtained and assessed in Phase 1, it is the
Commission’s position that it should leave open the possibility for applicants to apply for one or more
multiplexes, in the first instance, and thus allow the greatest number of applications to emerge from the
process.
It is the further position of the Commission, informed by the process adopted in the UK by Ofcom, that it
will accept conditional applications meaning that should an entity wish to set conditions around the award
of a licence it may do so. For example, it could be the case that an applicant may wish to make a number
of applications for a single multiplex but would specify that it would only be interested in being awarded
the licence on condition that it or another party was awarded a second or third licence.
Consultation questions
1.
What are your views on a single entity being awarded more than one multiplex licence?
2.
What are your views on the Commission accepting conditional applications for multiplex
licences?
3.
Are there any other issues which, in your view, need to be considered or included under this
heading?
1.6 – BCI Contract Duration
Section 10 (2) (a) of the 2007 Act gives the Commission the remit to determine the duration of a multiplex
contract.
Issues to consider
The primary consideration here is the balance to be achieved between the needs of multiplex operators to
have enough time to achieve a return on the substantial investment required in the establishment of the
DTT operation, and those of the BCI to respond dynamically to technological developments and in the
public interest. For this reason, the BCI is of the view that it is not desirable for DTT contractors to hold
their contracts for unduly lengthy periods.
In light of this, the BCI has proposed that a balance between the various interests would be to award DTT
contracts for a period of 12 years.
Consultation question
1.
What is your view on the proposed contract period of 12 years?
19
1.7 – BCI Fees
The 2007 Act provides for the payment of two types of fees – fees to ComReg associated with spectrum
use and fees payable to the Commission. As outlined in Section 5.2 of this document, fees payable to
ComReg are a matter for ComReg themselves to consider and determine. ComReg’s consultation has
sought to gather information in this regard. This section will deal solely with the issue of fees payable to
the BCI.
Section 10(4) of the 2007 Act provides that a multiplex contractor shall pay fees specified by the BCI (if
any) in the multiplex contract.
The Commission considered firstly whether, as a matter of principle, the Commission should charge a fee
to multiplex contractors. Secondly, if it was decided that a fee should be charged, the Commission
considered what mechanism should be applied in the calculation of such a fee.
In reaching its preliminary position on this issue, the Commission was mindful of the fact that the wording
of section 10(4) indicates a degree of discretion on the Commission’s part as to whether fees are payable
or not. However, it also considered the desirability, in principle, of defraying the costs of the regulatory
inputs involved over the period of the contract. Other factors considered included other BCI precedents in
respect of the payment of fees and future legislative initiatives.
It is the Commission’s view that, in principle, fees should be charged to multiplex contractors.
Consultation question
1.
What are your views in relation to the principle of the BCI charging fees to multiplex contractors?
With regard to the basis upon which fees should be charged, the Commission considered the level of
regulatory activity involved, the ability of contractors to pay, the overall aims and objectives of the DTT
Policy, other regulatory fees payable, and precedents for the payment of fees.
The level of regulatory activity involved is significant, and arises from the nature of the licensing process
itself and the range of matters with which the BCI must concern itself (including spectrum planning and
management). This was balanced by a degree of uncertainty regarding the economic viability of the
platform as expressed by parties to the consultation.
The Commission considered three options:
(1) Nominal fee;
(2) Fee linked to the level of regulatory activity involved;
(3) Fee linked to ability to pay.
Being mindful of the aim and objectives of the DTT Policy the Commission is of the view that the fee
charged should be linked to ability to pay and may vary over the period of the contract. The detailed
mechanism is to be finalised but may be linked to a percentage of revenue earned.
20
Consultation question
1.
What are your views in relation to the BCI’s proposal for the payment of fees by multiplex
contractors?
1.8 – Mobile TV (DVB-H)
In the course of consultation, the question was posed to the Commission as to whether the commercial
television multiplexes, to be licensed by the BCI, under section 5(3) of the 2007 Act, could be licensed for
the purposes of mobile television broadcasts (specifically, DVB-H).
Issues to consider
Firstly, the Commission considered whether DVB-H could be facilitated within the scope of the Section
5(3) provisions. Secondly, the Commission considered whether, in the first instance, the multiplexes to
be advertised should be advertised for such purposes.
The BCI is of the view that “television multiplex” in Section 5(3) does not exclude multiplexes for the
purpose of mobile television broadcasts.
Consultation question
1.
What are your views on the Commission’s interpretation of Section 5 (3) of the 2007 Act in
relation to DVB-H as outlined above ?
In considering whether the multiplex contracts to be advertised in the first instance should be utilised for
the purposes of mobile television, the Commission had regard to a range of factors, such as:
•
Whether the inclusion of mobile television was desirable in the context of the orderly development
of multiplex services (section 8 of the 2007 Act).
•
The public policy objectives of the legislative provisions and the objectives of the BCI’s DTT
policy.
•
The licensing possibilities for fixed/portable reception in contrast to the licensing possibilities for
mobile reception – (multiplexes for fixed and portable reception may only be licensed under
section 5(3), whereas there is potential for multiplexes for mobile television to be licensed under
section 5(5) of the 2007 Act).
•
The relative stages of development of the various digital television technologies and other
technical considerations.
•
The potential commercial benefits that mobile television might contribute to the viability of the
platform.
•
The availability of further television multiplex licences in the future which could be applied for
mobile television purposes.
21
The Commission is of the view that in the context of licensing the first three television multiplexes, and
having regard to the public policy objectives of the legislation, as well as the objectives of its DTT policy,
and other considerations, it is in the interests of the orderly establishment, maintenance and operation of
multiplex services to advertise the first three multiplexes for the purposes of fixed and portable reception
only.
Consultation question
1.
What are your views on the advertisement of multiplex contracts (in the case of the first three
multiplexes) for the purposes of fixed and portable reception only?
22
2 – Technical Matters
Over the course of Phase 1, an initially lengthy list of technical issues became refined and more clearly
focussed. Each of these will be considered in turn here with regard to draft policy positions, but
participants are encouraged to read the “Summary of Consultation” document (Appendix 2) for a full
range of discussion points.
In determining the most suitable applicant for the award of a multiplex contract, Section 9 (2) of the 2007
Act requires the Commission to have regard to each of:
(d)
in the case of a television multiplex, the proposals by the applicant for promoting the acquisition
by persons in the proposed coverage area of equipment capable of –
(i)
receiving all of the television multiplexes available or expected to be available in that
area, including the national multiplex referred to in section 3 (2) (a) [RTÉ MUX], and
(ii)
enabling such persons to keep themselves informed of the choice of programme material
included in those multiplexes.
(e)
in the event that the Commission has specified a minimum coverage area pursuant to section 8
(5), the extent of the coverage area proposed to be achieved by the applicant,
(f)
the technical proposal, including a timetable for implementation, regarding the establishment,
maintenance and operation of the proposed multiplex…
Clearly, the legislative provisions have imposed significant requirements on the Commission regarding
the technical aspects of proposals, including set-top-boxes (STBs) and television sets capable of
receiving digital television signals, as well as the operation of accompanying electronic programme
guides (EPGs), to guide viewing. The extent of coverage from licensed multiplexes and the timeframe for
the roll-out and on-going operation of television multiplexes is also seen as key.
These requirements recognise the very significant technological changes that “digital switch-over” (DSO)
will bring and, in particular, the implications for viewers, especially those for whom television viewing is
primarily by FTA terrestrial means.
2.1 Network coverage
Under Section 8 (3) of the 2007 Act, the Commission is required to set out its expectations in relation to
the coverage it expects to achieve from multiplexes, at the point at which the contracts are advertised.
Further to this, Section 5 (3) is of relevance insofar as it states that the three multiplexes to be advertised
by the BCI in the first instance shall “in so far as it is reasonably practicable, be capable of being
transmitted by digital terrestrial means to the whole community in the State…”
Issues to consider
During consultation a divergence of opinions emerged in relation to the network coverage that should be
expected for the BCI’s commercial multiplexes. Those groups who could broadly be categorised as
representing the public interest sought 100% coverage from the outset, regardless of whether or not the
multiplex was public service in nature. The further comment was added that any dilution of this should
nonetheless aim for the best possible service, to be accessible to the greatest number of people.
23
Other parties were of the view that the coverage expectations that had been set for the TV3 service (85-
90% of the population) represented a reasonable compromise between the exponential cost of
transmission above 90% population, and the requirement that the service be national and accessible to
as much of the population as possible. However, if one accepts that the key target audience for DTT
includes those who currently receive television on a FTA basis, given that most of these are located in
non-urban, less densely populated, non-cabled areas, it might be argued that coverage should go beyond
90%.
A number of factors are relevant in order to determine what coverage should constitute the “minimum”
requirement – (a) terrain issues; (b) location of communities and centres of population; (c) costs
associated with the provision of infrastructure; (d) an examination of the potential target audience for DTT
and; (e) other precedents.
Looking to the UK as a point of reference, it can be seen that public service multiplexes (which are
equivalent to RTÉ’s multiplex) have a requirement for 98% coverage. The three other UK multiplexes are
required to broadcast from 80 main sites across the UK giving approximately 85-90% coverage.
In Ireland, a minimum requirement of 90% could be achieved using a combination of 12-13 key
transmitter sites which could be accessed through RTÉ NL facilities. This approach would have the
added advantage of making the transmission infrastructure available to meet the timeframe for DSO.
It is the view of the Commission that each multiplex contractor should be required to provide 90%
population coverage at, or immediately following, ASO. The Commission is also of the view that, in the
event that a single entity is contracted to oper

Sponge Bob

NOTES:
Glossary
Access Services:
In relation to broadcasting, these are services to promote the understanding
and enjoyment of programmes by persons who are deaf or hard of hearing and
persons who are blind and partially sighted.
Audio Description (AD)
Audio description is a commentary that gives a viewer with a visual
impairment a verbal description of what is happening on the screen, as
an aid to the understanding of the programme. The technique uses a
second sound track that gives a description of the scene and the on-
screen action.
Irish Sign Language (ISL)
Irish Sign Language is the language of the Deaf community in Ireland.
Signing may be presented on-screen through the use of a signer as part
of the programme content, or the use of a signer (either a real person or
a computer generated person or ‘avatar’) acting as an interpreter in a
box position in the corner of the television screen.
Subtitles
Subtitles are on-screen text that represents what is being said on the
screen. Subtitling can be open (remains on the screen at all times) or
closed (added to the screen when the viewer wants, for example by
using page 888 on Teletext). To improve understanding and accuracy,
subtitles can also be colour coded, so that the viewer knows who is
speaking in the scene.
Analogue Television: Analogue television is a way in which picture and sound information are
transmitted, by means of an analogue signal onto television, for example, from
an aerial on your roof-top.
Analogue Switch-Off
(ASO):
Analogue Switch-Off is the removal of existing analogue television services,
replacing them with digital terrestrial television (DTT) services at a time
determined by the Minister for Communications, Energy
and Natural
Resources.
Conditional Access
(CA):
Conditional Access systems restrict television programme access to certain
groups of users either because of concerns for privacy or the desire to collect
revenue for the service. Providing conditional access requires secure encryption
of the programme content, secure decryption in a DTT receiver (see later
definition) for each viewer, and an embedded serial number that is registered in
a central conditional access system database.
Digital Television:
Digital television is a system for broadcasting and receiving moving pictures and
sound by means of digital signals, in contrast to analogue signals used by
“conventional” TV. Digital signals are compressed, transmitted and decoded
into what you see on your television. Data can be decoded by a specially
designed television set, or a standard receiver with a set-top box, or a PC fitted
with a television card.
Digital television has several advantages over traditional analogue television.
The most significant one is that digital channels take up less ‘bandwidth’ space.
This means that digital broadcasters can provide more digital channels than
analogue television; provide High-Definition digital service; or provide other non-
television services such as pay-multimedia services or interactive services and
electronic programme guides. Digital television often has a superior image,
improved audio quality, and better reception than analogue.
Digital Switch-Over
(DSO):
Digital Switch-Over refers to the process of switching to DTT. In Ireland, this
has an anticipated date of 2012. At a European level, there is an imperative
that this process occurs before 2015. See also definition for Analogue Switch-
Off (ASO).
Digital Terrestrial
Television (DTT):
Digital terrestrial television is a way of sending digital signals - pictures and
sound - to an aerial. A process called ‘digital multiplexing’ compresses, or
squeezes, the digital signal so that it takes up less space than an analogue
signal. A box on the viewer’s TV set, known as a set-top box (see later
definition), or a television with an in-built “decoder” known as an integrated
television, decodes the digital signal received by the aerial so that it can appear
as pictures and sound through the person’s television.
The main difference between digital and analogue television is that it’s possible
to broadcast a number of digital channels in the space that was taken up by a
single analogue channel.
DTT Receiver:
This is the device that processes the incoming signal from the DTT transmitter
and turns it into a format which can be displayed on the TV. It can take the form
of a set top box (see ‘Set Top Box’ definition) or may be integrated into the TV
itself.
The essential role of the DTT receiver is to receive, decode and decompress
digital data to produce audio and visual signals that can be displayed. It is a
custom computer system whose processing power can vary considerably
depending on the functionality and sophistication of the receiver.
All receivers use an Operating System to perform its basic functions. Some
receivers offer a return path, via a telephone or broadband connection, to allow
two-way communication or interaction. This generally requires a built-in modem
and is not a regular feature of most receivers currently on the market.
DTT Pilot in Ireland:
In 2006, the Department of Communications, Marine and Natural Resources
6
began work on a DTT Pilot Project which was officially launched by the Minister
on 5th March 2007 and will run until August 2008.
The Department commissioned a network of four multiplexes at two transmitter
sites. The project is targeting approximately 600 homes, and is aimed at
facilitating a range of technical tests. A variety of content is being broadcast,
including all of the national free-to-air broadcasting services, with audio services
also forming part of the content package on offer.
The BCI assisted the Department in the licensing process for the project and
continues to participate in the Pilot Stakeholders Group (PSG) for the duration
of the project.
Electronic
An Electronic Programme Guide is an on-screen guide to scheduled broadcast
6
Now called the Department of Communications, Energy and Natural Resources
Programme Guide
(EPG):
television programmes, allowing a viewer to navigate, select and discover
content by time, title, channel, genre, etc, by use of their remote control, a
keyboard or even a phone keypad.
Interactive Television
or iTV:
There are at least three levels:
1. Interactivity with the TV set via the remote control e.g. for channel surfing
or Red Button for related alternative channel selection
2. Interactivity with programme content e.g. audience response back to the
show, comments, polling etc.
3. Interactivity with connectivity related to what is on TV e.g. requesting
additional information on an advertised product, purchasing an advertised
item etc.
Note: All levels beyond level 1 require a telephone or broadband return
channel. The word ‘interactivity’ in this document refers to levels beyond
level 1.
Middleware:
Middleware is computer software that connects software components or
applications so that they can exchange data. It is used most often to support
complex, distributed applications. It is required to allow access to digital teletext
and other interactive services.
Moving Pictures
Expert Group
(MPEG):
The group has developed international standards for compressed digital video
and audio.
MPEG-2 & MPEG-4:
MPEG-2 and MPEG-4 are compression standards for video and audio digital
data, which permit the storage and transmission of movies using currently
available storage media and transmission bandwidth.
Compression or Data Compression
In computer science and information theory, data compression is the
process of encoding information through a specific encoding scheme,
using fewer bits (information-bearing units) than an unencoded
representation would use. For example, this article could be encoded
with fewer bits if the word "compression" were encoded as "comp". As
with any communication, compressed data communication only works
when both the sender and receiver of the information understand the
encoding scheme. For example, this text makes sense only if the
receiver understands that it is intended to be interpreted as characters
representing the English language. Similarly, compressed data can only
be understood if the decoding method is known by the receiver.
Compression is useful because it helps reduce the consumption of
expensive resources, such as hard disk space or, in the case of digital
terrestrial television, transmission bandwidth.
MPEG-2 & MPEG-4
MPEG-2 is widely used around the world to specify the format of the digital
television signals that are broadcast by terrestrial, cable and direct broadcast
satellite TV systems. The standard allows text and other data, e.g. electronic
programme guides, to be added to the video and audio data streams. TV
stations, TV receivers, DVD players and other equipment are mostly designed
to this standard.
MPEG-4 absorbs many of the features of MPEG-1, MPEG-2 and other related
standards, adding new features and a series of technologies for developers,
service-providers and end users. It enables developers to improve the quality
of services and technologies like digital television, animation graphics, World
Wide Web and their extensions. Also, developers can control their content
better and protect more against copyright violations.
Multiplexing or
Digital Multiplexing:
Multiplexing is a term used to refer to a process where multiple analogue
message signals or digital data streams are combined into one signal.
Multiplex or MUX:
A Multiplex or MUX is a combined set of signals or data streams.
Personal Video
Recorder (PVR):
Devices that allow TV viewers to time shift, pause and fast forward (until real
time) using hard-drive video storage.
STB (Set-top Box):
The term set-top box describes a device that connects to a television and some
external source of signal, turns the signal into content and then displays it on
the screen. A set-top box decodes digital signals into signals that analogue
televisions can understand.
TV sets with built-in digital receivers are known as Integrated Digital
Televisions (iDTVs).
Video on Demand
(VOD):
Video on Demand (VOD) refers to a technology that makes it possible for
consumers to control the start of a viewed programme. For example, by remote
control a consumer might pick from an on-screen list of movies and start and
pause it at their convenience.
Appendix 1: Legislative Matters for the BCI in the award of DTT
licences
Under Section 9 (2) of the Broadcasting (Amendment) Act 2007 a number of key areas, to which the BCI
must have regard in licensing multiplex operators, are outlined as follows:
9. – (2) In the consideration of applications received by it and in determining the most
suitable applicant to be awarded a multiplex contract, the Commission shall have regard to
–
(a) the character of the applicant or, if the applicant is a body corporate, the character of
the body and its directors, manager, secretary or other similar officer and its members and
the persons entitled to the beneficial ownership of its shares,
(b) the adequacy of the expertise and experience and of the financial resources that will be
available to each applicant and the extent to which the application accords with good
economic principles,
(c) the range and type of programme material or compilations of programme material
proposed to be included in the multiplex by the applicant and how the applicant proposed
to secure continued inclusion of such material,
(d) in the case of a television multiplex, the proposals by the applicant for promoting the
acquisition by persons in the proposed coverage area of equipment capable of –
(i) receiving all of the television multiplexes available or expected to be available in
that area, including the national multiplex referred to in section 3(2)(a), and
(ii) enabling such persons to keep themselves informed of the choice of programme
material included in those multiplexes,
(e) in the event that the Commission has specified a minimum coverage area pursuant to
section 8(5), the extent of the coverage area proposed to be achieved by the applicant,
(f) the technical proposal, including a timetable for implementation, regarding the
establishment, maintenance and operation of the proposed multiplex,
(g) the duty imposed on the Commission under section 4(5), and
(h) any other matter which the Commission considers to be necessary to secure the orderly
establishment, maintenance and operation of multiplexes.
Appendix 2: Summary of Phase 1 Consultation
Summary of Consultation on DTT Multiplex
Licensing Policy
Targeted Consultation – Phase 1
Broadcasting Commission of Ireland
October 2007
[FONT=arial,sans-serif]Page 43[/FONT]
2
The purpose of this document is to provide insight into the consultation process undertaken by
the BCI in support of the development of its licensing policy for DTT in Ireland and further, to
provide the context which informs the BCI’s draft policy position.
A full glossary of all terms and abbreviations used is appended for further information.
1. Executive Summary
In furtherance of its remit under the Broadcasting (Amendment) Act 2007 (“the Act”), the BCI is
in the process of developing its DTT Licensing Policy. In keeping with the BCI’s core values of
openness and transparency, and building on existing positive relationships with other regulators,
the broadcasting sector and other key stakeholders, consultation was seen as an essential
component to this policy development work. A range of different consultative models have
historically been used in the development of codes and standards, research, and policy
development work. In this instance, and given the need for focussed activity during a limited
timeframe, the most appropriate approach to information gathering was the adoption of a
targeted approach to consultation, whereby key stakeholders were invited to attend one-to-one
meetings or round-table fora (as appropriate) to express their views on the licensing of DTT in
Ireland. In addition to targeted consultation, this first phase of work also included the
commissioning of independent research to further inform the Commission’s position in this
regard.
Phase 1 consultation, undertaken between May 2007 and September 2007, included meetings
with a total of 26 organisations. Meetings were structured with a thematic agenda covering the
most pertinent issues for the Commission’s policy development work, including; learning and
experience from the DTT Pilot, economic and business issues for the establishment and long-
term sustainability of the DTT platform, ownership and control issues, considerations of content-
carriage and content packages offered on the platform, technical issues and, disability and access
topics. In addition to the areas of interest identified by the Commission, participants were invited
to express a view on other issues they felt to be of relevance.
Building on this work and marking a further step towards the commencement of the licensing of
DTT, Phase 2 consultation will consist of a day-long open forum session, planned for November
22
nd
2007. At this event, participants from Phase 1 and others who have specifically identified
an interest in the licensing policy, will consider the BCI’s position on DTT licensing, and will
have the opportunity to offer further comment at that point. It is anticipated that the BCI’s final
policy position on DTT will be agreed by the end of 2007.
Throughout Phase 1 general notes were kept to document the key emergent themes and issues
from each meeting. The positions expressed by the various groups were recorded in this manner
and are reflected in remainder of this document. The views of individuals or the singular
perspectives of each organisation are not necessarily reflected throughout, as there was a broad
level of consensus across the key issues. Where divergence or more specific concerns were
raised, these are included and clearly outlined. Finally, in those instances where participants
indicated that the information they were discussing was commercially sensitive it was not
recorded and as such, is not reflected in this document.
Consensus was reached on a number of key areas, with broadcasting and other groups alike
expressing a common view. In other cases, as in the case of the specific issues expressed by the
various disability and advocacy groups, there was a divergence of opinions and/or prioritised
areas.
2. Background & Overview
The Broadcasting (Amendment) Act 2007 conferred on the Commission a range of
responsibilities in respect of the licensing of Digital Terrestrial Television (DTT) in Ireland. The
Commission, in planning for these new functions, agreed to prioritise the development of its
DTT Licensing Policy, having regard to a range of factors; in particular, the statutory priority
assigned to this area of work and the projected timeframe for analogue switch-off in Ireland.
Consultation is key to the work of the Commission and was considered to be a vital element of
the policy development work undertaken in respect of DTT. The Commission recognises a
variety of consultative models and formats and, in this instance in order to maximise knowledge
in relation to DTT and accurately reflect and consider the views of key stakeholders, it was
agreed that a targeted approach to consultation was most appropriate. The primary aim of
consultation was to collate the broad range of stakeholder views on DTT and to further
supplement independent research commissioned by the BCI to support its policy development
work in this area.
In line with this approach, the Commission adopted a two-phased model of consultation. The
first phase, which took place between May 2007 and September 2007 consisted of a number of
one to one and round-table meetings (as appropriate) with stakeholders (listed below).
A thematic approach which placed emphasis on key issues relating to DTT was adopted. These
issues included: learning from the DTT Pilot; business/economic issues for the DTT platform;
ownership and control issues; content and channel packages; technical issues including the development of a national technical specification for DTT and set-top box (STB) considerations; licence duration and access/facilitative services for disabled consumers. In addition to those areas of interest identified by the BCI, participants were invitedto discuss and explore other issues they felt were relevant to the process.
Alongside this work, the BCI commissioned independent research (undertaken by GOS
Consulting, a UK-based expert research agency for broadcasting and related matters) to develop
two in-depth case studies (covering the UK and Austria), examining the varying experience of
these nations with regard to DTT.
3. Participant Groups
At the start of the targeted consultation process, the BCI identified a range of key stakeholders
for inclusion in this phase of work. These were:
Department of Communications, Energy & Natural Resources (DCENR)
RTÉ/RTÉ NL
ComReg
TG4
TV3
BT/Arquiva
Eircom
IBEC/CEDA
Mason Communications
O2 Ireland
UPC Ireland
Setanta
City Channel
Channel 6
BSkyB
Channel 4/E4
Today FM
Independent Consultant, former “IT’s TV” applicant
The Competition Authority
National Disability Authority (NDA)
Irish Hard of Hearing Association (IHHA)
Disability Federation of Ireland (DFI)
National Association for Deaf People (NADP)
National Council for the Blind in Ireland (NCBI)
National Consumer Agency (NCA)
The Consumer Association of Ireland (CAI)
4. Thematic Findings
A similar structure was adopted across all consultation meetings. The following key issues were
considered and discussed:
1. Experience and learning from the DTT Pilot;
2. DTT Platform Driver;
3. Ownership & Control issues on the DTT platform;
4. Economic and Business issues relating to DTT;
5. Content issues;
6. Technical issues; and
7. Disability and access issues for the platform.
In cases where the various groups and/or entities did not have a particular position or interest in
any of the issues, the discussion progressed to a consideration of remaining points. For that
reason, it should be noted that not all parties commented on every topic. Each of the topics along
with key emergent issues will now be considered in turn.
4.1 Experience of DTT Pilot
The majority view on this issue, and one shared by the various broadcasters
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was that
consumer feedback was an essential part of this process and, since this information was not
yet available, the Pilot still held much learning which would be of relevance to the
establishment and roll-out of DTT in Ireland. Some of the broadcasting groups further
questioned the rationale for the predominant focus on technical issues during the Pilot,
pointing to the important role of consumer research and feedback.
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Including BSkyB, City Channel, Channel 6, Channel 4, Today FM, Setanta, UPC Ireland, TG4 and TV3.
In relation to technical issues, all consultees (without exception) stated that as an exercise to
determine the required technical standards, and to address any engineering, technological
and reception issues, the Pilot was useful and indeed, could be judged to be a success. It
was specifically noted by BT/Arquiva that the co-operation seen in the Pilot was notable
with others (such as DCENR and TV3) remarking that the experience of the Pilot
Stakeholders Group (PSG) in respect of DTT was essential in bringing together the
experience and knowledge of a variety of groups. The particular approach taken by the PSG
in their work was seen as a key part of working towards an integrated DTT platform. For
this reason the possibility of a continuing role for the PSG as DTT is rolled-out across the
country was raised and was seen to hold immense benefit.
ComReg made the point that it was essential that those operators with an interest in DTT not
see the Pilot as a “soft-launch” of DTT in Ireland. It was stressed that this was a Pilot
scheme under the “test and trial” remit of ComReg and should not be viewed as an
automatic avenue to the commencement of commercial DTT services in Ireland.
Clear views were also expressed around the need for additional consumer information to be
gathered and critically assessed to maximise knowledge from the Pilot phase. Specifically,
those who participated in a “content group” round-table
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discussion expressed some concern
about the size of the consumer sample included in the Pilot – it was thought to be too small
– noting that a number of those involved in the sample were in the broadcasting industry and
would not ultimately provide a purely consumer-based perspective as they believed was
required to examine “public” rather than industry response to DTT. This position was
echoed, and further elaborated on, by the CAI and NCA who stated that unless a fully
representative sample was selected, the value of the Pilot would be limited and leave a
number of potential consumer concerns unaddressed.
As a specific point, and one which was unique to the group brought together for the
disability/advocacy round-table session
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, the issue of a demographic analysis of participants
in the Pilot was raised. As in the case of the “content group”, CAI, NCA and the
disability/advocacy round-table, stated that it was their opinion that the consumer sample for
the Pilot was too small.
8
This group consisted of City Channel, Channel 4/E4, Channel 6 and Today FM.
9
This group consisted of National Disability Authority (NDA), Irish Hard of Hearing Association (IHHA),
Disability Federation of Ireland (DFI), National Association for Deaf People (NADP) and the National Council for
the Blind in Ireland (NCBI).
Aside from this concern and as an additional issue, this group strongly advocated that the
sample be analysed (albeit post-hoc) according to demographic breakdown, with specific
regard to the number of people in the sample who experience a disability. They suggested
that the CSO/Census definition of disability be employed for this purpose, and an emphasis
be placed on the specific consumer experience of people with a disability with regard to
issues such as accessibility, usability, the design of and access to these services. This desire
to focus on consumers with a disability was further echoed in respect of the stated need for
ongoing consumer research (see later section on specific disability/advocacy issues).
4.2 DTT Platform Driver
The issue of the need for a platform driver or “Champion” was raised in the context of the
2007 Act. While the structure for the allocation of multiplex licences under the Act clearly
implies the need for a driver or champion for the DTT platform, it does not determine which
organisation or entity should take primary responsibility in this role.
All of those who participated in the consultation, from DCENR to broadcasters/content
providers, and consumer groups to disability/advocacy groups, clearly stated the need for
such a role to be established at the earliest possible opportunity. A distinction was drawn
between the promotion of the platform (as a marketing activity) and a public awareness
approach. The latter was thought by consultees to be related to the provision of information
to disparate audiences with a mixed, but generally low, knowledge-base of DTT. While
some groups (such as CAI, NCA, and disability/advocacy groups) saw a potential role for
the BCI in this, others accepted that as a regulator, the BCI could not promote one platform
over another and as such, would not necessarily be appropriate to act as the primary driver.
More generally in relation to this point, it was stressed by both consumer and
disability/advocacy groups that public information (in multiple, accessible formats) should
be available in the short-term, and well ahead of the 2012 deadline for analogue switch-off.
It was felt that the substantial information gap around the introduction of a new technology
such as DTT had to be addressed over a lengthy period of time in order for the public
generally, and for vulnerable, elderly and disabled groups in particular, to reach a level of
comfort and confidence with the technology which is, in essence, going to replace what
these groups termed “traditional TV”.
All groups drew attention to the role of “Digital UK” in two key ways – facilitating the
introduction of DTT by providing information to the public on new technology and, in
working towards analogue switch-off. These two activities were not necessarily seen as
equivalent, with broadcasters, consumer and disability groups calling for the early provision
of information and the need for the establishment of an organisation modelled along the
lines of “Digital Ireland”.
4.3 Ownership & Control Issues on the DTT platform
The issue of ownership and control of the DTT platform was covered in each of the
consultation meetings as, under S. 4 (1) of the Act, the BCI is responsible for the licensing
of commercial multiplexes (three in the first instance), with licensees responsible for the
establishment, maintenance and operation of the multiplexes. The legislation itself does not
rule out RTÉ as a potential applicant for the BCI’s commercial multiplexes, and neither does
it prohibit the licensing of a single entity for all three BCI multiplexes. It was in this context
that the issue of platform ownership and control was considered. Three emergent themes
were seen from consultation – single versus multiple multiplex licensees; concerns in
respect of competition between platforms; and issues of media concentration.
Given the extensive up-front capital investment required for the establishment of the
multiplexes and associated DTT infrastructure, all those consulted (without exception)
raised the issue of “economies of scale” and the potential benefit of a single DTT licensee.
While all recognised this as an issue, the degree to which this was seen as beneficial to the
platform, and to the consumer interest more generally differed across groups.
The CAI, NCA and disability/advocacy groups especially saw risks inherent in a single
licensee. CAI made the specific point that although it is the case that Irish consumers are
willing to pay for television (through existing cable, MMD or satellite offerings) there
remained a case, from their perspective, that television (and indeed, quality television)
should be free to the majority, above and beyond RTÉ content offerings if possible.
CAI and NCA both expressed the view that there was undue dominance on cable, MMD and
satellite platforms at present, with one dominant operator for these platforms. These two
groups also expressed concern that in the event that the BCI licensed a single entity for
DTT, this situation would be extended to result in dominance in the DTT platform too. As a
result, for these groups while some benefit in having a single licensee was seen, it remained
desirable that there be competition both within the DTT platform, and between platforms
(i.e. cable, satellite and DTT).
On a similar point, a number of parties expressed concern at the possibility of Sky’s
involvement in the platform and made the comment that in order for Irish content to be
protected another dominant force was needed in the broadcasting sector at a platform
operator level. A further concern regarding Sky’s involvement, as the sole or dominant
force on the DTT platform, was that its involvement in DTT would simply be used to “up-
sell” customers to satellite, and as such not meet the aim of DTT being an additional
offering to consumers, rather than being overshadowed by existing platforms. On this point
specifically, and to summarise, the Competition Authority (CA) expressed a clear view – it
was CA’s position that diversity of ownership as between platforms best served the
consumer interest.
DCENR expressed a preference for the licensing of a single entity for the three BCI
multiplexes and further raised the point that, in the event that this was the outcome of the
BCI licensing process, the additional benefit is that this entity could form the key driver or
“champion” for the DTT platform (which in part addresses the earlier point raised on this
issue). With single ownership of the three BCI multiplexes, there is also the possibility that
content mix can be maximised given the ability of a single entity to negotiate rights and look
at the DTT platform in a holistic fashion, thus ensuring choice of content (further points on
content are outlined below).
As a guiding principle, DCENR stated that it was essential that there be co-operation across
the platform, with their view being that the over-arching aim of the legislation and structures
provided for therein, was the successful establishment and roll-out of national DTT (both
RTÉ and commercial) and for there to be commonality and inter-operability across BCI
MUX licensees on a number of the identified elements, such as STB specification and the
sharing of programme data.
Apart from these considerations, all consulted recognised the value in having a single point
of contact for consumers and, perhaps more importantly for some consultees (e.g. DCENR,
UPC, and disability/advocacy groups) there was the expressed view that this situation would
result in a coherent DTT platform which was accessible and “easy to use” for consumers.
A further point was raised by ComReg in respect of the wholesale transmission market for
DTT. It was ComReg’s view that while RTÉ NL may be the most likely group to provide
the relevant transmission network, it was also important for the BCI to leave open the
potential for competition in this wholesale market, and that this should be reflected in the
Commission’s policy position on DTT.
In closing on this section, the general conclusion of broadcasting/industry
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consultees,
especially in light of the unknown element of the establishment of DTT in an Irish context,
was that the BCI should leave open a range of options for applicants to be able to structure
what they view to be the most viable offering for the platform and thus allow the greatest
number of applications to emerge from the process. This position is to be considered in the
context of media concentration and competition issues, as expressed by groups such as the
Competition Authority, CAI and NCA, and will be a matter of policy for the Commission.
4.4 Economic & Business issues
When economic and business issues were discussed in the consultation process, it was with
a view to recording participants’ views on the range of alternative viable and sustainable
business models which they believed could be applied to the DTT platform in Ireland.
Across all meetings, three alternative structures for the DTT platform emerged – an entirely
free-to-air (FTA) platform, an entirely subscription-based platform or, a hybrid combination
of these two alternatives providing for some FTA content combined with premium,
subscription-based content. Irrespective of the final business model applied, all groups
clearly stated that RTÉ (as an entity) and RTÉ-produced content were vital to the success of
the platform and as such, co-operation between RTÉ and BCI multiplex licensees is
essential. Further to this, DCENR expressed a preference that the DTT platform has a
significant free-to-air component or, that where a pay-option existed, at least some high-
quality channels be offered on a free-to-air basis.
Among those consulted, only CAI, NCA and the disability groups felt that it was essential to
have an entirely free-to-air DTT platform. For some, this was a statement-in-principle with
CAI expressing the view that quality, free, television for 100% of the population was
desirable. As an intermediary stance, RTÉ expressed the view that it was important that the
platform be free-to-air in the main, although some allowance was made for the location of
subscription-based services on it.
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Including BSkyB, UPC, Setanta, TG4, RTÉ, Today FM and Channel4/E4.
In relation to the issue of a subscription versus free service, Channel 6 added the point that
they had a concern over whether the introduction of another subscription-based model to the
market would serve to “confuse” the issue, possibly resulting in a situation where more
consumers would be driven to existing cable, MMD or satellite packages. Despite noting
this concern, Channel 6 did not go so far as to say that the entire DTT platform should be
free-to-air, or indicate how the free-to-air model would be viable or sustainable in the
longer-term.
In contrast to this, the broadcasting/industry groups (including Today FM, Setanta,
BT/Arquiva and Sky among others) made a strong case that the market in Ireland was not
large enough to make an entirely free-to-air model either sustainable or competitive.
Attention was drawn to a number of issues in this regard: the size of the Irish market; the
level of penetration and uptake of existing subscription services on cable, MMD and satellite
platforms and; the need for the carriage of quality content on the DTT platform. Each of
these will be briefly considered in turn, bringing together the feedback provided from
broadcasting/industry groups who shared this view and who, as a result, will not be
identified individually in each instance.
Market size was considered in the context of the UK DTT model of “Freeview” (an entirely
free-to-air package). Participants stated that while they believed the current success of the
UK Freeview offering to be the result of a number of factors, not least among them was the
sheer size of the UK market. As a result of such a high number of viewers, the ability of
existing free-to-air terrestrial UK channels (such as BBC One and ITV) to “push” their new
digital offerings to existing viewers and thus promote the DTT platform was a substantial
benefit, and enabled a free-to-air model to be sustainable in a way that, in their view, would
simply not be viable in the Irish context.
In a similar vein, albeit for different reasons, some participants gave a clear indication that
they were not of the view that an entirely subscription-based model would be viable in an
Irish context either. TV3 and Mason Communications specifically addressed this theme,
proposing that the most viable alternative for the Irish market was a “hybrid” model of some
free-to-air content combined with premium, subscription-only content. TV3 made the
further point that in their view, content providers would be unlikely to pay for carriage on
the DTT platform and so, for purposes of revenue generation, subscriptions and advertising
were essential components of any business model.
In contrast to the aforementioned point, a single exceptional view in respect of a
subscription model for DTT was expressed. It is important to note that of those consulted
only BT/Arquiva had (to the knowledge of the Commission) undertaken detailed market
analysis and research, and offered a perspective substantiated by a comprehensive analysis
of the current Irish situation, thus adding weight to the comments of this group. BT/Arquiva
clearly outlined that a subscription model for DTT in Ireland was not only viable, but held
opportunities for revenue generation and as such, was also sustainable. For this reason, it
was suggested that the Commission leave open the possibility that a subscription model
could emerge from the application process.
In relation to the existing market structure in Ireland, attention was drawn to the level of
penetration and uptake of cable, MMD and satellite offerings among Irish consumers.
Given the capacity constraints of DTT (where an equivalent number of channels to satellite
is not possible) it was felt that a direct, head-to-head competition between DTT and satellite
or digital cable was not viable. Rather, it was felt that the “middle-ground” of consumers,
who may desire a greater number of channels than the four free-to-airs (RTÉ 1, RTÉ 2, TG4
and TV3), but not desire as many as satellite (for example) offered, held growth potential for
the roll-out of DTT, and could create some consumer “churn” from the lower price points of
existing subscription offerings, holding some potential to generate new subscription
customers if the entry price-point for DTT was lower than that of cable, MMD or satellite.
In this way, it was felt that space could indeed exist for a successful DTT platform.
This last point relates closely to the final area of greatest comment – that of quality content.
The inclusion of quality content in any DTT offering was seen as vital to the overall success
of the platform and was an issue that participants stressed to the Commission for
consideration in the development of the DTT licensing policy. This content issue related to
both the inclusion of at least some of the terrestrial UK free-to-airs (BBC1, BBC2, ITV and
C4) and the carriage of quality content across a range of programme genres – namely,
general entertainment, news, sport and movies.
Broadcasting groups drew a clear
distinction between “free” content and “quality” content, with the two not necessarily being
synonymous. It was the belief of these groups that some consumers would be willing to
“engage with” a subscription service, albeit at a lower cost than the basic cable, MMD or
satellite offerings available at present. As a final point, the comments made by Today FM
on this issue provide a good summary – while the population here isn’t big enough for brand
new or unique content to be the sole driver of DTT, quality content remains essential to the
mix.
As a general conclusion, all groups stated that in order to be successful, the DTT proposition
had to be straightforward and easily understood, with a high degree of comfort for
consumers. It was repeatedly stated that although much of the information relating to DTT
is highly technical (detailing compression formats, middleware options and other
technical/engineering issues) the consumer interface has to remain familiar, with the key
focus being on the content offering and the quality of service. This was recognised by
DCENR, all broadcasters and particularly stressed by the CAI, NCA and disability/advocacy
groups. In the case of these latter groups, the importance of information being made
available in accessible formats (including, but not limited to Plain English, Braille and SMS
was stressed).
The level of capital investment required for the establishment of DTT and the overall level
of investment required was discussed by the various groups – indirectly linked to this was a
discussion of the proposed duration of DTT licences issued by the BCI. Various issues
relating to licence duration were discussed – groups stated that there was a technological
development issue to consider, in that the pace at which technology develops would mean
that licensees may not want to get “locked” into a lengthy licence, during which period
infrastructure would become obsolete. At the same time however, given the substantial cost
associated with DTT set-up, the licence term had to be of sufficient duration for there to be
some return on investment. Taking these issues into consideration, groups, without
exception, felt that in order for models to reach a point of profitability, a licence of between
10 and 15 years was most appropriate (an average period of 12 years was proposed by
some). None felt that a licence of less than 10 years was viable and only one group
expressed a desire for a longer-term licence (up to 20 years). The issue of an automatic
renewal of licences was also raised (e.g. Sky, ComReg) with the option that the Commission
would perhaps attach additional coverage or other requirements on licensees, related to an
automatic renewal. The issue of automatic renewal was, however, something that was
thought to be better considered once the process had progressed to a later stage.
4.5 Content Issues
As can be seen from the previous section, content issues were thought by all to be very
closely linked to the business model that an operator would structure for DTT. BT/Arquiva,
as a general point, clearly expressed the view that extensive market research is required for
DTT in Ireland. In addition to the discussions that took place on the structure of the DTT
platform (i.e. free-to-air versus some level of subscription) additional content-related issues
emerged. As a general point shared by many, but articulated most clearly by Channel 6, the
statement was made that for broadcasters and content-providers, there was an imperative to
be on the platform.
All groups bar none, expressed the strong feeling that the carriage of UK terrestrial free-to-
air channels was highly desirable, if not essential, to the success of the DTT platform in
Ireland. On this point, while DCENR stated a preference for at least some free-to-air
content, the view that the Irish free-to-air channels alone were unlikely to drive consumers
to DTT, and so additional content was also required.
This was recognised by all as a particularly complex and problematic area, with
broadcasting groups specifically, being particularly aware of rights and access issues for
these channels (namely, BBC One, BBC Two, Channel 4 and ITV). Broadcasting groups
expressed the belief that these channels, due to existing copyright and contracts for carriage,
could not be offered on a free to air basis on the Irish DTT platform. This view was
expressed as a further consideration, and indeed a position in support of a subscription
model (or a model inclusive of some subscription), to enable access to these channels on the
DTT platform and thus, attract consumers for whom these channels are a “key seller”.
Differing views emerged on the role of content in DTT. The majority view was that high-
quality content would be the key driver for the take-up of DTT. Broadcasting groups as a
collective clearly stated this view, with Setanta adding the perspective that the role of
content, across numerous channels, was so essential that the introduction of high-definition
services (which, as a result of technological requirements would limit the overall number of
channels which could be offered on DTT) was not the primary driver in the early, roll-out
phase of DTT – variety and choice of high-quality content was.
Only two consultees, Eircom and an independent consultant (former IT’s TV applicant),
expressed a differing view – that content alone was not sufficient to drive the DTT platform.
Other services, such as the internet, video-on-demand, interactive services or bundled
services were a requirement for the success of the platform in the opinion of these two
groups.
Other consultees saw DTT opening up a range of options in the broadcasting sector – Today
FM stated the view that radio had an important role in the DTT offering, strongly advocating
the carriage of some of the existing stations on this new platform. TG4 outlined a number of
options that DTT created, drawing attention, for example, to the role of Irish language
subtitles in its programming, expressing the view that if more interactive options were
available or that subtitling on DTT could be more flexible, greater uptake of the Irish
language may be seen and certainly could be encouraged as part of their business model
going forward. Finally on this point, DCENR stressed that one of the primary aims of DTT
was to ensure the continued availability of high-quality Irish television.
Channel 4 proposed that, in assessing the content bundle of any applicant, the Commission
should have regard to the market/viewing share of those channels proposed for carriage – in
this way, an attractive consumer offering (thus generating interest in the platform and
guarding against a direct churn to cable or satellite on ASO) could emerge. Today FM
reiterated this point and stated that the focus should be on existing patterns of Irish
viewership with those channels that people “would want to see” carried on DTT.
As a final point, it should be noted that while all groups clearly stated and unanimously
agreed that the role of content was key, broadcasting groups in particular also stated the
need for the Commission to be flexible in this regard and leave open the possibility that
content genres could be adequately filled with quality content from a range of channels and
indeed, over time, that specific (or named) channels may need to be altered while still
maintaining the range of content mix.
4.6 Technical Issues
Over the course of the consultation process, an initially lengthy list of technological
considerations became refined and clearly focussed, on the basis of feedback received. Each
of these will now be considered in turn.
Set-Top Boxes (STBs)
There was general acceptance by all that an agreed national technical specification for
set-top-boxes (STBs) in advance of the licensing of DTT was highly desirable – indeed,
essential. The further dominant view on this point was that, given the smaller size of the
Irish market, there was little sense in this national specification being entirely unique to
Ireland. For this reason, almost total agreement was reached in respect of the need for a
technical specification for Irish DTT which built on the UK model, albeit with certain
modifications (e.g. channel identification codes specifically for Irish channels). Given
this recognised need, consensus was reached among the groups consulted, with regard to
the need for the establishment of a national representative group (akin to Digital UK)
which would link in with relevant UK counterparts, with the aim of progressing work in
the timeframe available.
Numerous advantages of a similar specification between Ireland and the UK were
recognised including importantly: progressing the manufacturing of appropriate STBs for
Ireland in time for the roll-out of DTT; the provision of a number of STBs for consumer
choice in this regard; practical considerations such as the plug attached to the STB being
the same as existing Irish/UK plugs and as such not requiring an adaptor; and English
being the language used in STB instruction guides/manuals.
Following on from the agreement that a national specification was essential for the timely
roll-out of DTT in Ireland, a number of other technical issues were considered. CEDA
offered particularly useful information on this. Forefront in their contribution was the
importance of providing manufacturers with the technical specification for Irish STBs,
with enough lead-in time for delivery by the roll-out of DTT. Beyond immediate concern
in relation to STB specification, CEDA also stated that it was essential to examine and
agree upon the specifications of integrated televisions going forward, for the longer-term
development of DTT in Ireland. On this latter point, CEDA indicated that some
manufacturers would be introducing MPEG4-ready equipment in late 2008, with fully-
integrated televisions available by 2009. This anticipated timeframe once again points to
the need for the early agreement on a national specification for Ireland.
The clear message from all consultees was that STB cost (and any other costs associated
with the switch to DTT for consumers) was an essential point to consider. A basic-
model, low-cost STB was seen as essential in the first instance. In the longer term,
integrated TV sets were seen as the “way forward” and would meet increasing
technological needs (e.g. interactive applications, greater choice in relation to the carriage
of access services etc.) however, in order to allow DTT to become established, and
certainly in the period towards analogue switch-off, a cheap STB was seen as highly
desirable and vital to the successful launch of DTT. A further issue on the point of STBs
was that of a “check mark” system, for clarity in relation to those STBs that would
function in Ireland and meet the agreed national technical specification (when finalised
and agreed). Consumer groups and disability groups in particular, were strong on this
point, with the latter going so far as to suggest that it would be desirable if only approved
boxes were available.
Of the groups consulted with, all bar one
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expressed the view that Ireland should adopt
the most up-to-date technology in the development and roll-out of DTT. The
specifications of this would mirror, to a great extent, those of the UK’s D-Book
specification albeit with some minor changes (e.g. to Irish channel identifiers) and
anticipate future developments in the UK model (e.g. the adoption of MPEG 4 in advance
of the anticipated move by the UK to this compression standard in the coming months).
With regard to compression format, the stated desire for a national specification, “piggy-
backing” on the UK model, means the adoption of MPEG 4. This view, shared by
DCENR, CEDA, broadcasters, competition organisations and disability groups, was
informed by the feeling that technology evolves at such a pace that to guard against
Ireland being disadvantaged in a highly competitive media market, and to future-proof
the BCI licensing policy, the latest technology should be adopted by the platform from
the outset. This perspective was further supported on the basis of learning and
experience from the UK (and as referenced by DCENR, Sky, Mason Communications,
and BT/Arquiva among others), where the effects of the early adoption of DTT were now
being felt, to the point that the UK is now facing a situation where an upgrade from
MPEG 2 to MPEG 4 is, at best, highly desirable and, at worst, is required, to facilitate the
introduction of high-definition (HD) content.
Middleware
With regard to middleware, two options were discussed – MHEG and MHP. CEDA
asserted that there is no evidence to suggest that MHP is better, or of a higher standard
than MHEG. In addition to this, MHP presents a challenge in terms of the higher
associated running cost, higher cost for manufacturing and an on-going licence cost.
Other groups echoed this view (among them, Mason Communications) who pointed to
the cost issue related to the “run-time” licence associated with MHP, payable annually to
facilitate the use of interactive applications. As such, MHP was not seen as the most
desirable option for Ireland given the higher associated costs.
11
Only Eircom expressed the view that the MPEG 2 format should be adopted. The rationale outlined for this
position related in toto to the cost of set-top-boxes and their desire to see DTT rolled out as quickly and as cheaply
as possible. Theirs was a singular view and can be contrasted with the strong and unanimous proposals of other
consultees which clearly outlined the benefits of MPEG 4.
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As a result, MHEG was favoured in the alternative. Mason Communications also offered
the information that even in those countries where MHP was adopted as a “national
standard” (e.g. Spain, Austria) MHEG remained predominant as a result of the lower cost
of MHEG-compatible set-top-boxes. A further benefit seen with MHEG is that it is used
by the UK and so, to meet the aim of having a set-top-box with some Irish/UK
compatibility MHEG was the preferred option.
Conditional Access
Conditional access and encryption systems were also considered under the heading of
‘technical issues’. Those in the broadcasting group such as Sky, UPC and Setanta
stressed the need for a secure conditional access system to enable the carriage of
premium content. Sky in particular, mentioned the need for a security guarantee around
the conditional access system in place. For DCENR it was essential that the systems
associated with each of the multiplexes be inter-operable – to this end, they expressed a
preference that a single conditional access system be used across the platform. In the
absence of this measure, DCENR advocated that the BCI establish stringent licence
criteria for open technical specifications including conditional access systems.
Network Coverage
Under S.8 (3) of the 2007 Act, the BCI is required to specify the coverage area for
multiplex licences at the point at which these licenses are advertised. As a result, this
issue of network coverage was considered as part of the consultation. Some divergence
of perspectives was seen on this point. CAI, NCA and the disability groups stated the
belief that all multiplexes, whether classified as “public-service” (i.e. RTÉ multiplex) or
not, should offer a service to 100% of the population. CAI and NCA in making this
statement also recognised that, for potential multiplex operators, commercial
considerations around cost and business model would impact the viability of such a
proposition. However, given that it was their statement that consumer considerations
should be placed at the fore and, for this reason, the best possible service, accessible by
the greatest number of people should be the over-arching aim.
Most groups consulted, stated that under S. 4(4) of the Act
12
certain limitations were
recognised in terms of total (i.e. 100%) coverage for the BCI-licensed commercial
multiplexes, in contrast to the stated expectation for the RTÉ multiplex(es). For this
reason, those consulted stated that the adoption of the so-called “TV3 model” (where
transmission from some 13 sites would result in approximately 90% population coverage)
should be applied to the DTT scenario. Following on from this as a basic proposition,
broadcasting groups and those in the broadcasting sector more generally (such as Sky,
O2, TV3 and others) raised the option of differing coverage levels across the three BCI
commercial multiplexes. These groups proposed that in the context of DTT roll-out, and
perhaps especially in the case of a single licensee across all three BCI multiplexes, a
proportion of the second and/or third multiplexes (at least) could have a lower coverage
level – especially if these multiplexes offered niche or subscription-based programming
content (e.g. premium movies or sports content).
High-definition television
While the topic of content was discussed in broad terms in rela

watty

Only eircom (not RTE) wanted MPEG2.

channelsurfer

This was recognised by all as a particularly complex and problematic area, with
broadcasting groups specifically, being particularly aware of rights and access issues for
these channels (namely, BBC One, BBC Two, Channel 4 and ITV). Broadcasting groups
expressed the belief that these channels, due to existing copyright and contracts for carriage,
could not be offered on a free to air basis on the Irish DTT platform. This view was
expressed as a further consideration, and indeed a position in support of a subscription
model (or a model inclusive of some subscription), to enable access to these channels on the
DTT platform and thus, attract consumers for whom these channels are a “key seller”.



so that rules out bbc etc being free to air on dtt. watch out for a charge for it and it plays right into upc and skys hands. why should you pay for something that you will get completly free on satelite after a once off payment.

Sponge Bob

channelsurfer wrote: »

This view was
expressed as a further consideration, and indeed a position in support of a subscriptionmodel (or a model inclusive of some subscription), to enable access to these channels on the
DTT platform and thus, attract consumers for whom these channels are a “key seller”.

A "model inclusive of some subscription" refers to TV3 being carried FTA but not the other channels on the commercial muxes.

Setanta and TV3 are 'considered' to be the core of a single mux among some people I spoke to about this but only if they agree with each other which seems to be problematic at present. There seems to be no interest in the other muxes at present .

These are only rumours . I must stress that.