DTT Opportunities and Challenges BES Expo 2008 24

DTT - Opportunities and Challenges BES Expo 2008 24 February, 2008 L. V. Sharma Chief Engineer, Doordarshan

n Overview of DTT scenario worldwide n Indian Broadcast Scenario n Growth Drivers for DTT n DTT Opportunities n Doordarshan Initiatives n DTT Challenges n Conclusion

WORLDWIDE SCENARIO n Analog terrestrial transmission is being discontinued worldwide in a phased manner. n DTT is being either thought of or implemented in almost all countries in the world. n Most of the countries have announced the date for completion of digitalization and subsequent switch off of analog terrestrial service, worldwide. n A glimpse of world scenario on DTT is given on next slides.

WORLDWIDE SCENARIO Country DTT Standard Service Launch Business Model ASO Date Albania DVB-T 2003 Pay Andorra DVB-T 2005 Australia DVB-T 2001 FTA 2010 Austria DVB-T 2006 FTA 2010 Azerbaijan DVB-T 2004 (Test) Belarus DVB-T 2004 (Test) Belgium DVB-T 2002 FTA 2012 Bermuda Undecided [2007] Pay Brazil SBTVD 2007 FTA Bulgaria DVB-T Croatia DVB-T 2007 FTA 2010 Czech Republic DVB-T 2005 FTA 2010 Denmark DVB-T 2006 FTA 2009 2007 2016 2012

WORLDWIDE SCENARIO Country DTT Standard Service Launch Business Model ASO Date Estonia DVB-T 2006 Pay. TV + FTA 2012 Faroe Islands DVB-T 2002 FTA Finland DVB-T 2001 FTA + Pay. TV 2007 France DVB-T 2005 FTA + Pay. TV 2011 Germany DVB-T 2002 FTA 2009 Greece DVB-T 2006 FTA 2012 Hungary DVB-T Ireland DVB-T 2008 FTA 2012 target Italy DVB-T 2003 FTA + Pay. TV 2012 Lithuania DVB-T 2006 FTA 2012 Luxembourg DVB-T 2006 FTA 2006 Malta DVB-T 2005 Mauritius DVB-T 2005 2012 2010 FTA

WORLDWIDE SCENARIO Country DTT Standard Service Launch Business Model ASO Date Namibia DVB-T 2005 Pay. TV 2005 Netherlands DVB-T 2003 FTA + Pay. TV 2007 New Zealand DVB-T 2008 FTA Norway DVB-T 2007 FTA + Pay. TV 2009 Poland DVB-T 2007 FTA 2014 Portugal DVB-T 2008 FTA 2012 Saudi Arabia DVB-T 2006 FTA Singapore DVB-T 2001 (mobile) FTA Slovakia DVB-T 2008 Slovenia DVB-T 2006 South Africa DVB-T 2008 South Korea ATSC 2001 FTA 2012 Spain DVB-T 2000 FTA 2010 2012 FTA 2011

WORLDWIDE SCENARIO Country DTT Standard Service Launch Business Model ASO Date Sweden DVB-T 1999 Pay. TV + FTA 2007 Switzerland DVB-T 2001 FTA 2008 Taiwan DVB-T 2004 FTA 2010 Tunisia DVB-T Pilots since 2001 Turkey DVB-T 2008 Ukraine DVB-T 2006 United Kingdom DVB-T 1998 United States ATSC 2014 FTA + Pay. TV 2012 FTA 2009 Source: dvb. org

DTT in presence of Cable & Satellite TV Penetration Country Receivers Sold Population TV Households DVB-S (Millions) DVB-C (Millions) DVB-T (Millions) Albania 3, 190, 000 500, 000 Australia 21, 129, 222 7, 600, 000 1. 1 Austria 8, 316, 487 3, 300, 000 1. 5 Denmark 5, 457, 415 2, 400, 000 0. 5 Finland 5, 297, 300 2, 300, 000 France 64, 102, 140 24, 700, 000 4. 8 3. 708 8. 2 Germany 82, 314, 900 35, 020, 000 13. 9 1. 7 7 Italy 59, 206, 382 23, 300, 000 5 0. 3 6. 077 Netherlands 16, 387, 773 7, 026, 000 0. 5 0. 1 0. 5 Sweden 9, 150, 000 4, 100, 000 Taiwan 22, 925, 000 5, 210, 000 0. 1 UK 60, 587, 300 25, 400, 000 9 0. 1 1. 27 2. 55 0. 1 0. 06 0. 5 0. 8 2. 232 3. 4 23

Indian Broadcast Scenario Today n n n India is the third largest television market in the world today. 112 mn television households, appx. 210 mn households 70 mn pay TV households 68 mn cable households 5 mn Direct-to-Home (DTH) households. 40 mn Terrestrial Only homes. Tomorrow ( Pw. C study’ 06) n DTH households expected to grow by 43%. n Cable households growth around 4 -5% per annum Hence, the tremendous potential for growth augurs well for the future of the television industry.

Indian Broadcast Scenario Today Tomorrow E & M Industry Rs. One Trillion 18% CAGR E & M Industry Rs. 437 billion Television Rs. 519 billion 22% CAGR Television Rs. 191 billion Radio Rs. 5 billion Radio Rs. 17 billion 28% CAGR 70 million Combined TV Households 113 million Combined TV Households Television & Radio to share about 54% in overall E&M pie. “Pricewaterhouse. Coopers (Pw. C)-FICCI study 2006” has defined 2006 as a year of start of convergence for the media industry. Digital TV has …just begun

Present DD Terrestrial Network Existing ANALO G DTT (SDT V) Proposed in 11 th & 12 th Plan DTT (DVBH) DTT (SDT V) DTT (DV BH) DTT (HDT V) HPTs 191 3 1 230 20 LPTs 827 - - 400 - - VLPTs 375 - - -

Proposed Future Plans Of Doordarshan n n n One SDTV multiplex carrying upto 8 channels at each existing HPT site. One DVB-H multiplex carrying upto 16 channels at each existing HPT site. One HDTV multiplex carrying upto 2 channels for metro. 100 New DTT HPTs in place of about 400 LPTs 400 DTT SDTV LPTs at existing LPT sites Digitalization to be completed by the end 12 th Plan. ASO by 2017

Television Growth Profile in India

Mobile TV Revenue Estimates ( Source : Juniper Research, Jul 2006 )

Growth of Mobile Phones in India Comparison Table of Subscriber Base for first 9 months of 2006 and 2007: Service 2006 2007 Added March During Dec. 06 Dec. 07 06 Apr’ 0607 Apr’ 07 Dec’ 06 Dec’ 07 Wireless 98. 78 149. 62 50. 84 165. 11 233. 63 68. 52 Wireline 41. 54 40. 30 -1. 24 40. 75 39. 25 -1. 50 Total 140. 32 189. 92 49. 60 205. 86 272. 88 67. 02

GROWTH IS EVIDENT n “Pricewaterhouse. Coopers (Pw. C)-FICCI study” E&M (Entertainment and Media) industry size in India is currently estimated at Rs. 437 bn and is expected to grow at a compounded annual rate of 18% over the next five years. n E&M industry is expected to outgrow the Indian economy every year from now till 2011. n Of this, television occupy over 40% of the market share at Rs 191. 2 bn and is expected to grow at a CAGR of 22% to cross Rs 519 bn by 2011 with a 51% share in over all entertainment and media pie.

Growth Drivers for DTT n n n n One DTT Transmitter can carry 8 channels, hence low CAPEX requirements per channel. Excellent picture and sound quality. Ghost free picture. Reduced power consumption per channel. Future technology, being adopted worldwide. Saving in spectrum compared to analog. Released spectrum can be utilized for other services DVB-H upgradeability for Mobile reception. Ease of transmission of HDTV and DVB-H Service on DTT Platform. Interactivity with consumer is also possible.

Opportunities in DTT Government n More revenue by way of spectrum allotment/ auction for DTT and DVB-H. n Released Spectrum after ASO (Analog Switch OFF) can be utilized for other services and hence more revenue. n Speedy Implementation of Digitalization through PPP model.

Opportunities in DTT Public Broadcaster: n n On the same bandwidth/broadcaster shall be able to deliver upto eight channels thereby providing variety of programme for entertainment, news, culture & sports etc. in one multiplex. New Revenue Generation opportunities sharing of platform with private operators. by Availability of space for carrying local and regional channels simultaneously. More suitable for country like India with diversity of culture and languages to meet social obligations.

Opportunities in DTT Private Broadcasters: Can introduce new services at low CAPEX by sharing the infrastructure with public broadcaster. n Can also install full multiplex if Govt. allots the spectrum. n Can share the PB platform for their services n

Opportunities in DTT Consumers: n Availability of more Channels compared to Analog Terrestrial Service. n Excellent Picture Quality. n Local/Regional Content, languages and area specific programme availability. n Availability of private Channels not available earlier on terrestrial platform.

Opportunities in DTT Industrial Growth Increased Growth of Industry due to the demand of new services like HDTV content and displays. n Demand of DVB-H (Mobile TV) receivers like mobile phones, PDAs, Handheld receivers and USB receivers etc. n Distribution of DTT Signals in moving trains, buses & Public Places. n

CHALLENGES STB Cost The DTT STB cost on approximately 30 -40 US $. n. DTT higher side: STB cost expected to come down as the volumes grow. n. Future television sets will have to incorporate DTT tuners. n. The government support is required to make it mandatory by law to integrate DVBT Receivers in all TV receivers.

CHALLENGES DTH: n Likely Competition with DTH Services in India. n Besides DDI many private DTH platforms are available. n A few more DTH services are expected in near future. n Telecasting exclusive content on DTT channels is required to counter the same. n DTT does not suffer from rain fading and hence advantageous.

CHALLENGES Cable TV Services : Regular migration of analog terrestrial TV viewers to Cable TV domain observed in the past. n. The trend may reverse due to availability of more channels on DTT. n. Exclusive and area specific local contents of special interests to the viewers for DTT Platform can counter the above forces. n. DTT services are expected to be cheaper than cable services. DTT bouquet having a proper mix of infotainment channels may win back the viewers to terrestrial services

DTTB – Way Out § Providing exclusive content, which can attract viewers towards digital terrestrial services § Providing reception in moving vehicles and held device § Adequate programming of local relevance § Interactive and value added services § To meet the cost of digital infrastructure, services with revenue earning potential need to be clearly identified

DTTB – Way Out …contd. § Appropriate business model with PPP to be worked out § Launching campaigns to generate public awareness about new terrestrial services and it’s advantages § Conducive Regulatory and Legal framework such as reduction of taxes, duties on STBs / Transmitters, mandating digital receivers with inbuilt DTT tuners etc. § Mandating a firm ASO date

Conclusions § Multiple Delivery Media technologies successfully coexist in several countries. § DTT is free from the inherent disadvantages encountered in Cable and DTH. § Challenges of meeting huge upfront costs for Transition from analog to digital can be met from private partnership and sharing of infrastructure § A balanced bouquet with appealing contents can attract viewers even from Cable and DTH § DTT is better suited to cater information and entertainment needs of a culturally and linguistically diverse subscriber base § DTT roll out will be a win-win situation for all stake holders

Thank you.