Terrestrial Digital Broadcasting Convergence and Implication

Reza Tadayoni*, Knud Erik Skouby

Center for Tele-Information, Technical University of Denmark, Building 371, DK-2800 Lyngby, Denmark

Abstract

This paper is a contribution to the development of analyses of the process of converging media and to the clarification of the regulatory implications of this process. It is generally agreed that the process of convergence between telecommunications, IT and broadcasting through its technological, organisational, and market/service aspects has far-reaching inßuence on the sectors involved and on future socio-economic settings. The paper explores the preparation for introduction of terrestrial digital television in Denmark as an aspect in the general process of convergence. The explorative analysis establishes an understanding of the technological issues and drivers in the development, which in interaction shape a digital distribution structure that is a concrete part of convergence. Based on this understanding, a model Ð the OSA-model Ð is suggested for the techno-economic structure of distribution of terrestrial digital TV. The model is used to discuss market prospects and regulatory implications, as these are derived from the interplay of traditional areas of regulation in the three sectors and areas emerging as candidates for regulatory activity based on their functionality. The discussion of the process of introduction of terrestrial digital TV in Denmark thus provides a general analysis of convergence and its regulatory implications. ( 1999 Elsevier Science Ltd. All rights reserved.

Keywords: Terrestrial digital broadcasting; Convergence; DAB; DVB

1. Introduction

During the past few decades the communication landscape has been subject to radical changes.

Traditionally, communication has been divided in three sectors Ð telecommunication, broadcasting and information technology (IT) Ð which cover di¤erent communication applications. The sectoral 0308-5961/99/$ Ð see front matter ( 1999 Elsevier Science Ltd. All rights reserved.

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1 This work is a result of participating in two Danish research projects:

• Service development, Internationalisation and Competences (SIC) project.
• Distributed Multi Media (DMM) project.

2DAB and DVB is used for digital audio broadcasting and digital video broadcasting, respectively, without reference to the speciÞc European technologies/protocols-agreements using DAB and DVB as brand names. 

Division has been based not only on di¤erent technologies being used in the di¤erent sectors but it has also evolved in close interplay between political-regulatory interventions, economic considerations and technological characteristics.

Understanding the di¤erent aspects of regulation in the information age requires a solid understanding of the development in the communication landscape as well as of the ongoing process of convergence between the traditionally separate forms of communication and of the Ôinformation fusionÕ. Technological speciÞcity has not been determining for sectoral division and is not determining for the convergence process but it has been a vital factor in this process.

Technological innovations like digitalisation, audio and video coding technologies, computerisation and broadband infrastructures Ð such as cable and satellite networks Ð make service provision across the sectoral boundaries possible. This also imposes new political and regulatory challenges and makes re-thinking and re-designs of the existing regulatory framework for communication a necessity.

This paper1 discusses digital broadcasting as an instance in the convergence process where this is seen as a process with technological, economic/structural and regulatory aspects. Within digital broadcasting a focused area namely the terrestrial digital broadcasting in Denmark will be studied in details.

Broadcasting is quickly moving into the era of digitalisation as digital audio broadcasting (DAB)2 and digital video broadcasting (DVB) to replace traditional analogue broadcasting technologies. Full digitalisation of the whole production chain, from recording and editing over transmission media to receivers in the end usersÕ homes, will be a reality in 10 to 15 years. This is a challenging and extensive change that will face broadcasters, politicians and regulators in the coming years. The main political and economic focus is generally on DVB and the transition has already started in some European countries, most notably the UK and Sweden.

For users, DAB/DVB will o¤er many advantages over analogue broadcasting, such as better technical quality, more programs and services on a given set of frequencies, and the option of multimedia and interactive services. This development is an expression of converging media: DAB/DVB will integrate elements from several di¤erent media, computers, telecommunications and broadcasting. The shift to digital broadcasting is not simple, however, as it introduces a range of interrelated political, economic and technical challenges. Some of these challenges are speciÞc to the mode of distribution Ð satellite, cable or terrestrial with the latter having special problems and potentials.

As the basic technologies are now ready, solutions to two sets of regulatory issues are pertinent for the development and di¤usion of terrestrial DVB. One set of issues is related to the concept of Public Service Broadcasters. In almost all countries, cultural policy considerations have given rise to privileges and obligations for a few broadcasters.