Regulator offers vision for long-term evolution of UK free television

OFCOM, the UK communications regulator, has outlined its proposals that some of the DTT spectrum in the 700 MHz band should be handed over, eventually, for use by mobile broadband, a policy that it believes should be achieved by the removal of the interim DTT muxes. You can read more on that story here. In its policy document, ‘The future of free to view TV – a discussion document’, which was published this week, it also takes a look at the long-term future of free to air TV in the UK including the role of DTT, IP video (meaning classic IPTV and broadband video) and satellite.

The regulator is firmly committed to maintaining the bulk of DTT services and does not expect a full switch-off of DTT until after 2030, unless there was significant policy intervention to support a more aggressive timetable for change. It has used the document to inform the public debate about the options for free to view television delivery, without suggesting any preferred approach. Drawing on analysis by Mediatique, a strategic advisory firm, it outlines the conditions needed to make a mass-market switch to IP delivered video viable and the current state of readiness.

The document can be found here but in summary it lists three areas of low readiness (Sufficient protection for broadcasters against unwarranted traffic management; Commercial agreements between broadcasters and ISPs; and High take-up of broadband). It finds medium readiness for the requirements of universal availability of super fast broadband, near-universal take-up of IPTV capable consumer equipment, a solution for people unable to receive IPTV, and broadband infrastructure capable of delivering mass-reach IPTV (which means a quality IP-based consumer experience plus a resilient connection).

When it comes to solutions for people who cannot receive IPTV, the document says satellite could be the answer although equipment and installation costs may be a barrier for some consumers. Under its ‘What needs to be done’ column it says of satellite: “Further work required on coverage of satellite in the UK. More work needed to understand the overlap between those unable to receive satellite signals and those unable to receive broadband.”

In more detail it suggests that higher equipment and installation costs for free-to-air satellite (compared to DTT) make it unlikely that DTT viewers would choose naturally to replace their DTT receivers with satellite. “Satellite is therefore likely to remain a less widespread free to view choice than DTT, positioned primarily for those viewers particularly keen to receive a wider range of content subscription-free and/or those viewers choosing to end a subscription with Sky,” OFCOM says.

The regulator tackles the idea of a policy-driven shift towards relying on satellite as a primary transmission mode for FTV television. The challenge is achieving near-universal coverage, even in the long-term, due to line-of-sight issues, the need for landlord or freeholder permissions or planning restrictions, among other things. Admitting the difficulties in making a precise estimate, OFCOM reckons that the best satellite coverage possible at reasonable cost will be under 95% of UK households, lower than that provided by the three public service broadcaster DTT multiplexes. OFCOM accepts the coverage figure might go higher, albeit with non-standard satellite installations or higher installation costs (including the use of internal satellite signal distribution systems in multiple dwelling units (MDUs).

Pointing to an increasingly hybrid environment in the long-term, the regulator adds: “Nevertheless, these challenges are not necessarily of the scale that would prevent satellite potentially playing an increasingly important role as a complement to other technologies. In particular, if the conditions for a shift towards IPTV are met in the future, there may be a crucial role for satellite in providing a FTV option for those households who cannot (or choose not to) access a broadband service of sufficient quality to facilitate a satisfactory viewing experience.”

The document also takes a look at LTE (mobile broadband) wireless to the home. “Separately, there is significant interest internationally in the development of a converged mobile/broadcast standard – known as eMBMS – that could make use of LTE technology to deliver live broadcast services to both mobile handsets and TV sets in the home. While at this stage the technical and commercial viability of such a service is unclear, these developments present a theoretical opportunity to achieve significant spectral efficiencies as well as a stronger mobile offering for free TV platforms.”

OFCOM says hybrid delivery can provide a stepping stone approach to mass-market delivery via IP networks. “There is the potential for higher bandwidth services to be delivered over IP: services broadcast in HD or UHD may be able to be provided over superfast broadband networks, reducing the pressure on potentially limited spectrum availability in the future,” it suggests.

OFCOM also believes that hybrid platforms can drive take-up of broadband. “As Internet connected television becomes more popular, and consumers see tangible benefits, it could help drive superfast broadband penetration. We see a potential positive feedback loop with improved connected free to view offerings driving superfast broadband take-up, which in turn makes an IPTV switch a more credible option, should that prove desirable. This in turn could further drive broadband take-up.”

We are already on the hybrid path, of course. The document refers to the efforts of Freeview and Digital UK to design a new DTT/IPTV hybrid platform referred to as Freeview Connect and says that together with the evolution of YouView, this could encourage more capacity thanks to more channels being delivered over IP.

OFCOM also notes, in relation to the future of free to view television generally, but also in the context of the proposed 700MHz spectrum use change and its own suggestion to remove the interim multiplexes to make this possible, that DTT capacity could be increased if broadcasters switch further multiplexes to the MPEG-4/DVB-T2 compression and transmission standard, allowing more channels to be fitted onto each multiplex. Ironically the two interim DTT multiplexes use these standards already. OFCOM believes consumer take-up of MPEG-4/DVB-T2 equipment is encouraged by the availability of extra SD and HD channels.

The document suggests that DTT stakeholders will need to consider whether more advanced compression standards, notably HEVC, should be built into any new transmission or reception equipment in coming years. But the regulator is wary of intervention, saying there is a considerable risk of regulatory failure if it were to intervene now to implement specific upgrades. It says that with HDTV, the risk of regulatory failure was low in relation to the expected benefits, in part because there was broad consensus among the relevant parties both in relation to the desirability of an upgrade in DTT technology as well as the most effective technical solution. “The same degree of consensus does not seem to be in place now,” it says.

So for the long-term future of free to view television in the UK, OFCOM wants to avoid  regulatory intervention as a way of initiating changes to the DTT platform. Instead it wants stakeholders to devise and agree a long-term strategy for the evolution of DTT that incorporates:

•    The role of IPTV delivery for both SD and HD linear and non-linear services, built around an appealing and genuinely free means of accessing IPTV  services.

•    Timing and implementation of upgrades to new transmission/compression standards including DVB-T2, MPEG-4 and possibly HEVC, including how consumers are properly informed about what equipment they should purchase and when.

•    Protection of consumer interests, including how an optimal balance can be achieved between consumer upgrade costs and the availability of a wide range of SD and HD services over FTV television. “Requiring large numbers of consumers to upgrade to new equipment without receiving genuine and perceivable benefits – and therefore having the incentive to do so of their own accord – is likely to be contrary to consumer interests,” the regulator declares.

Since effective coordination between stakeholders is going to be critical to delivering the upgrade path, OFCOM says it will be necessary to continue to review the governance arrangements for DTT, to ensure that they provide an effective framework for strategic decisions about the long-term future of the DTT platform.

Also see: OFCOM: Loss Of Interim DTT Muxes Will Make 700MHz Use Change Painless