ASIA-PACIFIC BROADCASTING

According to Ovum, the digi-tal dividend spectrum is a prime resource previously used by analogue broadcasting is particularly suitable for delivery of high-bandwidth services and indoor coverage. Because of the new services it makes possible, it can have a positive impact on social and economic development.

For example, Ovum said UK regulator Ofcom estimated that the allocation of the digital dividend would provide between €7.5 billion (US$122.5 billion) and €15 billion over 20 years for the UK economy alone, with the European Commission (EC) estimating that a coordinated approach would increase the potential impact of the digital dividend by an additional €20 billion-€50 billion between now and 2015.

Ovum, through its analysts Matthew Howett and Charice Wang, said this spectrum is suitable for a wide range of uses: Wireless broadband, mobile TV, more digital terrestrial TV and low-power applications such as Wi-Fi. For wireless operators in particular, it offers a good combination of range and data capacity, and is capable of penetrating build-ings and covering large geo-graphical areas with relatively few transmitters.

However, the analysts said expectations should be tempered by realism about the take-up of any new services launched on the spectrum.

Regulators have their eyes on this spectrum, mostly with a view to its potential for driving wireless broadband, explained Ovum. Among other things, wireless broadband is regarded by some regulators as the most promising means of providing broadband services to rural areas and overcoming the digital divide. Thus, the digital dividend provides a new opportunity to realise the EC’s goal of “broadband access for all” in Europe.

While a worthy policy goal, this might prevent the broader roll-out of new services on a national basis, said Ovum.

The target date set by the EC for analogue switch-off in member countries is 2012. Although some leading countries such as Finland, Sweden, Switzerland and the Netherlands have already completed their switchover, most countries are still making plans, said Ovum. More speed is both necessary and desirable to fully realise the benefits.

France, Sweden, Finland, Switzerland and the UK all have dedicated spectrum in the 790-862MHz band (known as the 800MHz band) for wireless services, but most other European countries have not yet decided which band to use.

Ovum said in order for devices to work effectively across the EC, a coordinated approach to spectrum allocation among the member countries is crucial. Other national regulators should therefore follow suit and allocate this band for wireless services too.

Ovum added that a harmonised approach to spectrum allo-cation was part of the EC’s 2007 reform package, but as it may not be passed in 2009, national regulators should adopt the policy on their own initiatives in the meantime.

Doing so will speed up the development of handsets and other equipment that will use this band. It will also strengthen the development of the single European telecoms market, which is the paramount goal of the EC telecoms framework reform. A consultation published by the EC last month has rightly advocated making this a priority.

Meanwhile, Ovum noted that the US is leading the way in freeing up and allocating digital dividend spectrum. Its Federal Communications Commission (FCC) completed the auction of spectrum in the 700MHz band in March last year and distributed the spectrum to a variety of providers, mainly via a technology-neutral approach. The final switchover to DTV occurred on June 12 this year.
Ovum reckoned that the winning operators are conducting trial services on the released spectrum now and are likely to launch commercial services next year. This puts the US way ahead of most European and Asian countries, and it therefore provides a good example for other countries to take note as they develop their own plans.

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