The regulatory challenges regarding the switch-over process from analogue to digital interactive broadcasting at

the EU level
Maria Florea
1







The regulatory challenges regarding the switch-over process
from analogue to digital interactive broadcasting at the EU level

Maria Florea



Vrije Universiteit Brussels
Faculty of Economic and Social Sciences and Solvay Business School
2014

Word Count: 2189
Similarity Index:



Abstract

The paper at hand argues that the switch-over process from analogue to digital
has far-reaching implications for the broadcasting sector. The essay provides a
critical approach in the context of digitization of public service broadcasting,
along with its exiting issues and characteristics. Moreover, it provides an
overview of EU media policies, in the actual context and final remarks.


The regulatory challenges regarding the switch-over process from analogue to digital interactive broadcasting at
the EU level
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Table of Contents




Abstract
Introduction ........................................................................................................................................ 1
Digitization of public service broadcasting ............................................................................. 2
EU media policies in Digital Era .................................................................................................. 3
Conclusion4

















The regulatory challenges regarding the switch-over process from analogue to digital interactive broadcasting at
the EU level
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1. Introduction



The broadcasting sector in the European Union(EU) is in a state of changeability
with Member States(MS) progressively closing down spectrum-hungry analogue
transmissions and migrating to digital broadcasting. As the analogue television
switch-off is a prerequisite for the release of new spectrum frequencies that may
become available for other/innovative services and applications (Fontaine &
Girieudh, 2007)Olafsson et al., 2007) the European Commission expressively
encouraged MS to finish the switchover process by the beginning of 2012, noting
that economic and social benefits for the EU as a whole will only be fully
achieved once all MS have completed switch off
1


June 17, 2015, is the internationally mandated switch-off date set by the 2006,
Geneva Agreement of the International Telecommunications Union. After this
date, countries can begin freely using the frequencies assigned to them in GE-06
and consequently, citizens as well as broadcast companies benefit from more
choice and quality (more channels, high-definition television, better image, etc.),
lower distribution costs and the possibility of transmitting more channels or
services at the same cost, greater efficiency in spectrum use (the creation of new
services because more data can be transmitted through the same bandwidth) and
the ability to send data that allows interactivity, personalisation. (dHaenens &
Bink: 2001: 125; Iosifidis, 2007: 7). Despite positive predictions, the future of
interactive digital TV is still obscure, the biggest barrier being uncertain
customer demand (Day et al. 2000, Shin 2007)

Baring in mind that at the present time, as mentioned above, there is a tendency
towards the convergence of the broadcasting media, the significance of public
service broadcasting for democratic, cultural and social life to inform educate and
entertain with content and services universally available. in the European Union
was reiterated in the Council Resolution as following: "Broad public access,
without discrimination and on the basis of equal opportunities, to various
channels and services is a necessary precondition for fulfilling the special
obligation of public technological progress"(Communication from the EU
Commission, 2001).










1
European Commission, COM(2005) 204
The regulatory challenges regarding the switch-over process from analogue to digital interactive broadcasting at
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2. Digitization of public service broadcasting



On the surface digital broadcasting seems to be a blessing which inevitably
impacts the entire media industry chain, from the content and service providers
to the audiences. When looking closer at digitalisation it becomes clear that other
issues are at stake, especially concerning public service broadcasters who need
to adapt to the new technological scenario in order to provide people the
programmes that they want to watch, and also satisfy wider social and cultural
purposes. In a different case their market visibility, social relevance, audiences
support and economic viability may be endangered, leading to further
questioning of their legitimacy.

The last decade has brought a serious questioning on the role of public service
broadcasting in contemporary democracies. This questioning is directly linked
with a general deregulatory ethos and the development of new technologies.
Indeed, digital broadcasting will assert the commercialism of television in many
different ways and thus further weaken the influence of the public ethos in
broadcasting. First, competition between increasing numbers of broadcasters
raises the price
of talent and rights for all players and makes television services more and more
expensive. As subscription television evolves, we witness a migration of key
programmes from free- to pay-TV. Many programmes that were available at no
expense to the viewer are only accessible now under subscription or pay-per
view arrangements. (Murroni and Irvine, 1998: 17)

Consequently, the growth of conditional access television will threaten universal
access. This trend is perceived as a danger for social cohesion, and a principle
previously taken for granted is becoming a public issue. Despite difficulties in
guaranteeing equality of access, in practice PSB is still seen as the vehicle that is
most likely to ensure broad public access, without discrimination and on the
basis of equal opportunities
2


By outlining the pros and cons of digital switch-over for the public, Dr Iosifidis
3

contends that universality and accessibility can best be ensured by maintaining
public service media, which have beenand should continue to beimportant
conveyors of freely accessible and reliable information. Moreover, Public service
broadcasting, unlike private media, importantly addresses its audience as
citizens as a polity rather than purely as consumers.


2
Council, Resolution Concerning PSB, n.4
3
Petros Iosifidis, Digital Television, the Public Interest, and European Regulation

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Consequently, the European Parliament has associated the value of PSB to social
and political cohesion via its capability to act as an aid to informed
citizenship
4
Although PSB is seen to have an important remit by institutions
within the Union, the organization, definition and fulfillment of this remit remain
a matter for member states and not the Union. The identification of a role for PSB
in Europe has been based upon the agreement by the member states and
particular institutions of the Union that PSB has social, cultural and democratic
functions;
5
and is vital for ensuring democracy, pluralism, social cohesion and
linguistic diversity, points that are recognized in the Protocol on PSB and
reaffirmed in the Council Resolution on the subject.

Dahlgren or Garnham articulate PSB functions, that it "lays the foundation of
communicative democracy. It constitutes an indispensable platform and serves
to facilitate and embody the public sphere" (2008, p.3) The public sphere
therefore stands as the main place where people gather together, exchange
different information, as well as suggestions for discussions or debates of public
interest. As a result, public service broadcasting creates an important input for
the audience, in order for them to form an opinion towards the given
issue(Meyerhofer, 2008).
6


3. EU media policies in Digital Era



European broadcasting policy has attracted attention due to its dual nature:
cultural and commercial. With the rapid technological developments European
television has been experiencing a new deregulatory wave led by technological
developments.
Besides generating a multiplication and difersification of channels and services,
digitalization enables the convergence of telecommunications, media and IT
sectors. This means that the same content can now be distributed over different
networks. In the article, EU Audiovisual Policy, Cultural Diversity and the Future of
Public Service Broadcasting, Peter Humphreys talks about the EU's policies related
to the 'convergence' of broadcasting, IT and telecoms. Due to the impact of digital
technologies, EU policies regarding access for public service broadcasters to
digital networks are taken more seriously into account (2008). Convergence is
mainly the result of the following factors: technological advances, the
phenomenal growth of the service economy and the increasing globalization of
markets together with the restructuring of new conformities, mergers and
alliances (Michalis, 1999).

4
European Parliament, Resolution on the role of public service television in a multi-media society, para.B.
5
Council, Resolution of the Council and Representatives of the Governments of the Member States concerning PSB OJ 1999 C 30/1, para. B
6
Meyerhofer, T. (2009). Balancing between Democratic Accountability and Market Pressure: Public Service Medias Transboundary
Strategies. Media & Communications Program University of Melbourne,, 4, 1-12.

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A key innovation associated with digital television is interactivity. Digital
television signals can be easily integrated with other digital signals, making
interactive programme possible. These developments have raised challenges for
sector specific regulation and national regulators as to how best to harness the
potential of these new economic and technical opportunities, how to regulate
partially converging sectors and how to protect the special nature of
broadcasting.
The present regulatory framework is based first and in principal on some
milestone directives. The Television without Frontier Directive(TVWF
Directive), adopted in 1989 after five years of negotiations. The Directive aimed
to create a single European audiovisual market establishing a Legal framework
for cross border transmission of television programmes. In December 2007 TWF
was amended by the Audiovisual Media Services Directive in order to enhance
the commercial exploitation model. The proposed regulatory framework added
clauses regarding independence of national media regulators, the distinction
between linear service and the growing non-linear services such as video on
demand, plus more flexible rules for advertising and product placement.
However, considering the technological advancements: personal video
recorder(PVR), Internet, which are enabling viewers to record everything in an
originally linear environment and afterward viewed in non-linear form, I may
argue that the distinction between linear and non-linear is blurred or difficult to
maintain.
The EU adopted five directives in 2002 The Framework Directive for Electronic
Communication introduced other directives on access, universal services,
authorization and a decision on radio spectrum.

Recent technological developments and changes in the media markets draw
attention to some new emerging issues in media policy that are not addressed by
the current legislation. Some of them are strongly linked to the Internet and the
appearance of digital interactive TV. A relevant question is hence which kind of
regulation will apply to digital interactive TV, telecommunication regulation of
broadcasting regulation?
At the same time, digital interactive TV and all the commercially driven
technological developments are rising barriers to access to a diverse range of
content. With television content increasingly be seen as a commodity that must
be paid for, the direction towards pay TV is likely to continue and prove far-
reaching. This returns us to the above problems of access and to the issue of true
diversity of choice which cannot be met as long as content is not available free-
to-air. The introduction of different distribution platforms also has consequences
for the level of access to content enjoyed by different viewers. For instance, some
viewers cannot afford to access premium content as sports and films.

As the governments, across the Union are preparing to switchover to digital
television, the number of viewers that have previously opted for linear, analogue,
free-to-air environment will diminish. Even though some digital television will be
broadcast free to air, it is by no means certain that this will be a general blueprint
across the Union. However, non-linear interactive television and options to top-
up the free-to-air viewing with subscription to further channels and services will
The regulatory challenges regarding the switch-over process from analogue to digital interactive broadcasting at
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be a trend in the market towards the commodification of information and the
increasing digitalization of content. These developments have critical and wide-
ranging impacts on television broadcasting.
In their book, European Broadcasting Law, Jackie Harrison and Lorna Woods,
highlight the concern that Union broadcasting regulation, informed by
broadcasting policy while claiming to take into account the needs of the viewers
does not clearly recognize the distinction between consumers and citizens.
According to Jackie Harrison and Lorna Woods opinion, regulators should
remember citizens who want to be able to watch a reasonably wide range of
quality programmes without either having to pay for additional services or being
forced to settle for increasingly misrelated public service television supplied
free-to-air.
7




Conclusion



While digital TV adoption in Europe's major countries was progressing very well,
there were far too many countries making zero effort towards the switchover
process. It should be noted that for an successful switch-over policy in Europe
the principles of universality and inclusiveness are of high importance.
Replacing analogue terrestrial transmission fully, by some combination of
satellite, cable, broadband and digital terrestrial, produces a saving of spectrum
which can then be used for other purposes. Potential new users of saved
spectrum include mobile television, a fuller commitment to high-definition
television, more digital broadcasters and/or more channels, including fuller
development of regional and local television. Wireless broadband is another
candidate and broadband may develop into the way many homes will in future
receive their television.
Public service broadcasters who need to adapt to the new technological scenario
and in the same time have an prime duty to counter the redrawing of the social,
cultural and constitutional contours of the nation state, face major challenges. At
the very least, PSB needs to adapt in a world of viewer sovereignty, this challenge
calls for more innovative techniques to be used in reaching viewers, if public
service messages are to be conveyed.

At the same time, regulation should aim at redefining and promoting the broader
public interest in the new communications environment to incorporate social
and cultural benefits besides pure commercial ones. It should continue to pursue
the traditional objectives, such as pluralism and diversity of sources, but at the
same time it needs to address new considerations justified in the digital
converged era. Rules are needed to ensure that universal access is maximized.
The move to pay-TV may deprive some parts of the population of certain kinds of
program, such as popular sports and latest releases. In that way, it may widen the

7
Ofcom, Digital Switchover: An audit of viewers priorities, p. 1
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gap between information haves and have-nots and lead to the so-called digital
divide.

In short, regulation retains its relevance and importance in the new digital era. It
is needed for both creating regulatory stability and certainty that would enable
the industrial sector to take rational business decisions, for example via
spectrum management and the provision of technical standards (economic
objective), and for delivering social benefits such as pluralism, diversity,
affordability, interconnection and access.




























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References


1. Fontaine, G & Girieud, S 2007. Analogue switch-off Digital dividend and
TV services,Communications & Strategies, no. 66, pp. 181-186

2. Olafsson, S, Glover, B & Nekovee, M 2007. Future management
of spectrum, BT Technology Journal ,vol. 25, no. 2, pp. 52-63.

3. dHaenens, L & Bink, S 2001. Digital convergence. The development of a
new media market in Europe in L dHaenens & S Saeys (Eds),Western
broadcasting at the dawn of the 21st century
(pp.125-146). Mouton de Gruyter, Berlin

4. Shin, D.H. 2007. Potential user factors driving adoption of IPTV. What are
customers expecting from IPTV? Technological Forecasting & Social
Change, n.74 pp. 14461464.

5. EBU Digital Strategy Group. (2002). Media with a purpose. Public Service
Broadcasting in a digital era. February, 14, from
http://www.ebu.ch/CMSimages/en/DSG_final_report_E_tcm6-5090.pdf

6. Iosifidis, P 2006. Digital switchover in Europe,The International
Communication Gazette, vol. 68, no.3, pp. 249-268.

7. Iosifidis, P 2007. Digital TV, digital switchover and public service
broadcasting in Europe, Javnost-thePublic, vol. 14, no. 1, pp. 5-20.

8. Murroni, C. and N. Irvine (1998) Access Matters. London: Institute for
Public Policy Research.

9. Council, Resolution Concerning PSB, n.4
10. European Parliament, Resolution on the role of public service television in
a multi-media society, para.B.
11. Council, Resolution of the Council and Representatives of the
Governments of the Member States concerning PSB OJ 1999 C 30/1,para.
B
12. Meyerhofer, T. (2009). Balancing between Democratic Accountability and
Market Pressure: Public Service Medias Transboundary Strategies.
Media & Communications Program University of Melbourne,, 4, 1-12.

13. Humphreys, P. (2008). EU Audiovisual Policy, Cultural Diversity and the
Future of Public Service Broadcasting. Berghahn Books, 12, 226-266.

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14. Similarities can be found with criticism of consumer policy: see e.g. G.
Howells and T. Wilhelmsson, EC Consumer Law(Aldershot:Ashgate,1997),
p.18
15. Ofcom, Digital Switchover: An audit of viewers priorities, p. 1
16. Harrison, J., Woods, L. (2007), European Broadcasting Law and Policy,
Cambridge
17. Dahlgren, P. (1995). Television and the Public Sphere: Citizenship,
Democracy and the Media. London: Sage Publications.
18. Garnham, N. (2003). A Response to Elizabeth Jacka's "Democracy as
Defeat". Television & New Media, 4(2), 193-200.
19. Michalis, Maria (1999) European Union Broadcasting and Telecoms a
Convergent Regulatory Regime? European Journal of Communication
14(2):147-71