Digital Dividend: the golden spectrum fight

Thomas Husson | July 10, 2008, 03:23 AM

UHF frequency band (470-862 Mhz) is currently being used by broadcasters (TV and radios). However, new spectrum resources freed by the digital switchover (move from analog to digital TV) will be re-allocated in the coming years in all European countries.

In France, administrative authorities have ruled until recently in favor of TV stations, particularly the largest groups (TF1, M6 and Canal+). Broadcasters intend to use the UHF band to increase the number of DTT channels, expand DTT coverage to 85 percent of the French population and to launch HDTV. My colleague, Laurence Meyer, will soon publish a piece on this complex issue.

However, telecom operators are looking for new spectrum to optimize the launch of mobile TV and nationwide mobile broadband. They are arguing that they should benefit from the digital dividend since:

• They had to pay to acquire spectrum (e.g. 3G licenses) contrary to broadcasters (who have specific obligations to assume though)

• Low frequencies (< 1GHz) are the best solution to economically roll out mobile networks. Mobile broadband being in the 2GHz band, it is more difficult to offer nationwide geographical and indoor coverage in a cost-effective way.

• With the forthcoming roll-out of high-speed Internet broadband in urban areas (France is leading FTTH or IPTV European investment plans), rural areas will be totally outpaced.

• DVB-H is optimized for the UHF band. It could also be launched in the L band, but not with a viable business model.

Operators’ lobbying actions try to demonstrate the stronger positive impact mobile will have on regional development and economic growth.

It will not be a reality before the full extinction of the analog TV signal, at best at the end of 2011 in France. However, this is a key strategic issue most governments are facing. Last November, ITU decided to allocate five frequency blocks, among which the 790-862MHz band, for use by future mobile telephony technologies. Since then lots of lobbying took place and some claimed 56MHz for telecom players would be enough. Some others say it should be at least 72MHz so that a competition between several players can take place. Whether 56 or 72 or more, many observers say it is too early to be able to quantify precisely the digital dividend.

So what?

Given there are strong economic, social, cultural and military (some frequency bands are used by the army) issues, such an allocation can only be decided at a political level. It will actually be decided in France by the Prime Minister before the end of July.

Given France's role in the ITU decision last November, the importance of mobile broadband, I would not be surprised the debate is ruled for once in favor of telcos, but let's wait and see 2 more weeks.

Will keep you posted when back from holiday.