EN    EN EN 
 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 28.10.2009 
SEC(2009) 1437 
COMMISSION STAFF WORKING DOCUMENT 
  
EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT  
 
 
Accompanying document to the 
 
COMMUNICATION FROM THE CO MMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMI TTEE OF THE REGIONS 
 
Transforming the digital dividend into social benefits and economic growth 
 
and the   
 
COMMISSION RECOMMENDATION 
 
Facilitating the release of the digi tal dividend in the European Union 
  
{COM(2009) 586 final} 
{C(2009) 8287 final} 
{SEC(2009) 1436} 
 
 
 
EN 2   EN EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT 
The ‘digital dividend’, i.e. the radio spectrum freed up by the switchover of terrestrial TV 
transmission from analogue to digital format  (Digital Terrestrial Television, or DTT), 
represents a significant amount of high-quality ra dio frequencies becoming available in all 
Member States. A coordinated approach to the digital dividend ca n contribute to two 
important EU policy goals, namely: 
1. To ensure that there will be sufficient spectrum available in Europe to address 
the issue of rural access to broadband services  (where a wireless infrastructure is 
often the only workable solution) and to reduce the broadband gap arising from the 
lack of such services.  
2. In addition,  to pave the way for future develo pments in terrestrial broadcasting  
(e.g. high-definition television) by increasing the average efficiency of television 
transmission infrastructures. This will also  enhance the ability of Member States to 
exercise their competences in the field of audiovisual policy. 
1. PROBLEM DEFINITION  
In the absence of appropriate coordination be tween Member States, the potential social and 
economic benefits of the digital di vidend will be significantly lower.  
1.1. Inconsistencies between national approaches would reduce the usability of the 
spectrum due to the e ffect of interference 
It is technically inefficient to use the sa me spectrum for wireless services that have 
fundamentally different technical characteristic s, such as traditional high power broadcasting 
and low to medium power wireless broadband. Th is issue also has cross-border effects, as 
residual interference in this part of spectrum can travel up to 100 kilometres. 
1.2. A lack of EU coordination will preven t Member States allocating the digital 
dividend to uses with the high est social and economic impact 
In the absence of a coordinated approach to mi nimise the negative impact of interference in 
the EU, national spectrum authorities may have  to give preference to DTT, whereas, if 
coordination was implemented, they could allow other uses providing higher overall benefits. 
1.3. Lack of economies of scale and pan-Euro pean coverage of services may hurt the 
European economy and deter investment 
Virtually all of the expected potential uses of  the digital dividend rely on the possibility to 
achieve critical mass and econom ies of scale. For example, the Commission study found that 
manufacturers of mobile communi cations equipment expect a potential market of at least 100 
million inhabitants before investing in new production lines for the fourth generation of 
mobile communications equipment. Economies of  scale are also imperative to ensure the 
successful take-up of newer generations of broadcasting equipment and networks. 
 
EN 3   EN 1.4. Risk of disruption of important services already making use of part of the UHF 
band where the digital divi dend spectrum is located 
Existing wireless microphones and similar applica tions use particular frequencies in the UHF 
band (known as ‘interleaved spec trum’ or ‘white spaces’). Thes e services are essential to a 
number of sectors, particular ly broadcasting and event organi sation. In the absence of EU 
coordination, there is a risk that these importa nt uses will, at some point in time, lack 
frequencies to ensure their c ontinued operation. The number of  devices involved (4 to 5 
million in the EU1) suggests a clear internal market dimension. 
1.5. A sizeable part of the benefits coul d be lost in the absence of proper 
coordination with third countries  
Cross-border interference from non-EU countries can prevent specific se rvices from operating 
in large EU geographical areas. In turn, this may prevent nationwide de ployment since not all 
regions can be covered. Nego tiations between Member States and third countries on the 
digital dividend frequencies ar e conducted on a bilateral ba sis under the ITU mechanisms. 
However, they have reportedly often been  disappointing. A common approach would allow 
an EU-wide strategy to be established, and strengthen the Community  and Member States' 
position in the negotiations with third countries. 
2. ANALYSIS OF SUBSIDIARITY  
Most of the issues arising from the use of the digital dividend cannot be dealt w ith efficiently 
by the action of individual Member States, give n the fact that radio transmissions do not stop 
at borders. Because of this, th e actions of one Member State could significantly affect the 
interests of others. In additi on, the large amount of mobile equipment that can make use of 
that spectrum presents a clea r internal market dimension. 
Action at Community level woul d produce clear benefits compar ed to action by individual 
Member States. The main areas of potential added value for the EU are: 
• leadership (coordinated EU acti on is more likely to be emulated by neighbouring countries 
than action by individual Member States, which in turn can lead to the wider availability of 
the spectrum in the EU itself); 
• more efficient use of spectrum and economies of scale (if a common band plan emerges); 
• the general benefits of fosteri ng the internal market (includi ng through interoperability and 
roaming if mass market uses, such  as wireless broadband, emerge). 
3. OBJECTIVES  
The first objective is to maximise benefits from the digital dividend and to act sufficiently 
rapidly to avoid fragmented na tional legacy situations, which would hamper the establishment 
of a single market for future services and equipment. 
                                                 
1 Source: APWPT. 
 
EN 4   EN Secondly, this initiative seeks to ensure sufficient consistenc y between national approaches 
and foster convergence over time, with a vi ew to supporting innov ation and long-term 
benefits for consumers, strengthening the sing le market, and increasing EU competitiveness. 
Thirdly, the Commission’s action should aim to f acilitate the early effo rts by several Member 
States to open up the 790-862 MHz sub-band to ne w services such as wireless broadband and 
to help avoid fragmentation in the internal market (i.e. different Member States imposing 
different technical or f unctional restrictions). 
4. POLICY OPTIONS  
The Communication, complemented on specif ic aspects by the Recommendation, puts 
forward proposals in four main areas: 
– Timely switch-off of analogue terrestrial TV as a prerequisite to  exploit the digital 
dividend; 
– Coordination of Member State action to en sure a coherent approach to the 790-862 MHz 
sub-band; 
– Common initiatives to ensure the optimal us e of spectrum in all parts of the UHF band 
(470-862 MHz); 
– Technical harmonisation of the 790-862 MH z sub-band (under the Radio Spectrum 
Decision mechanism). 
5. ASSESSMENT OF IMPACTS  
5.1. Impact of options regarding the timely switch-off of analogue terrestrial TV  
5.1.1.  No further EU action 
Ten or eleven Member States are likely to continue some analogue broadcasting throughout 
2012, and some even until 2013, creating the risk of further delays.  
5.1.2.  Recommendation that Member States take all necessary steps to switch off analogue 
signals by 1 January 2012  
The Commission study estimated th at avoiding a one-year delay in  the availability of the 790-
862 MHz sub-band across the EU due to a few Memb er States could generate a total benefit 
of several billion euros in net present value (min. EUR 1 billion in consumer and supplier 
surplus only, accumulated over 15 years2). 
Since all Member States are already committed to digital TV, the cost is limited to advancing 
the procedure by typically a few mont hs in 10 or 11 Member States.  
                                                 
2 Ofcom UK estimated the benefit for the UK alone, under similar conditions, at GBP 100 to 400 million. 
 
EN 5   EN There are social costs , in particular due to bringing fo rward the purchase of digital-to-
analogue converters by consumers who c ontinue to use an existing analogue TV3. The 
analogue switch-off experience in the five Member  States that have already gone to digital 
(and in the US) indicates, however, that this so cial impact is limited and can be mitigated by 
specific subsidies targeting disadvantaged groups.  
5.1.3.  Mandating analogue switch-off by 1 January 2012 (a Community legal measure) 
The benefits and costs, including the social impact, would be of the same nature as for the 
previous option (recommended switch-off), but w ith the highest probability to realise the 
greatest overall benefit. 
5.2. Common initiatives to ensure the optimal use of spectrum in the whole UHF 
band (470-862 MHz) 
This concerns possible coordination actions to facilitate the freeing up of additional spectrum 
capacity, mainly concerning spectrum belo w 790MHz, thereby enhancing the digital 
dividend. The detailed quantitative impacts have  not been assessed, as these measures are at 
present only preliminary proposals for discussion at EU level . 
5.2.1.  No further EU action on coordination activities 
The main benefit of this option is the absenc e of compulsory additi onal costs for upgrading 
receivers or transmission networks.  
5.2.2.  Impact of further coordination activ ities in sub-bands below 790 MHz 
These are some of the identified areas wh ere further coordination activities could be 
envisaged:  
– Ensuring minimum transmission compression and quality standards for broadcasting 
networks, including for new DTT receivers.  
– Wider use of Single Frequency Networks  (SFNs). 
– Promoting frequency-agile systems, possibly using Community funding. 
– Assisting existing users of wire less microphones to migrate to new frequencies, as well as 
considering the use of ‘white spaces’ for cognitive technologies4. 
– Improving cross-border coordination of spect rum both between Member States and with 
non-EU countries . 
Each type of initiative has a potentially positive effect, but it is difficult to perform a reliable 
sensitivity analysis at this stage. One negative social impact could be that not all television 
viewers would have access to th e new equipment, but this could be offset  by a period during 
which the signals would be broadcast in both th e old and new standards to allow reception by 
first-generation DTT equipment. 
                                                 
3 The cost of most digital-to-analogue converter boxes does not exceed 50 euros. 
4 Cognitive radio technologies allow radio equipment to identify frequencies which are not occupied by a 
primary user at a given moment, and to exploit them temporarily. 
 
EN 6   EN 5.2.3.  Impact of mandatory requirements to impr ove spectrum effici ency linked to the 
digital dividend 
The further impact of mandatory requirement s is generally incremental for each of the 
specific measures. 
5.3. Impact of options regarding the coordi nation of Member St ate actions in the 
790-862 MHz sub-band 
5.3.1.  No further EU action 
A number of Member States5 are, or will be shortly, in a position to decide to open this band 
to electronic communications services. This op tion could result in regulatory measures at 
national level which could be in contradiction w ith those in other countries, jeopardising the 
technical harmonisation of this sub-ba nd to enable new broadband uses.  
5.3.2.  Recommendation that Member States take no  action that would interfere with the 
technical harmonisation measure being pl anned at EU level in the 790-862 MHz 
band 
In practice, this should only concern (temporaril y) those Member States envisaging new uses 
in this sub-band. Therefore, virtually no costs would arise while efforts focus on facilitating 
the emergence of a rapid and stable c onsensus on harmonised technical conditions. 
5.4. Impact of options regarding the tec hnical harmonisation of the 790–862 MHz 
sub-band 
One of the main conclusions of the Comm ission study is that the ‘private value’6 that could be 
created if all Member Stat es were to adopt the 790-862  MHz sub-band for electronic 
communications services under consistent conditi ons of use would be between at least EUR 
17 billion and up to EUR 44 billion in the most optimistic case, depending on the assumed level of demand for different services
7.  
A significant social benefit would be generate d by greater access to broadband services, and 
the possibility to ensure the pan-Eur opean interoperability of services. 
There should be no overall nega tive distributional impact on broa dcasting services since any 
loss of broadcasting capacity in the 790-862 MHz band would be offset by network re-
planning and/or improved transmission technolo gy. The associated costs will depend on the 
number of DTT transmitters lo cated in the sub-band for each Member State (distributive 
impact). However, the Community action should  facilitate rather th an complicate the re-
planning of broadcasting networks.  
5.4.1.  Guidelines (non mandatory) for harm onisation of the 790–862 MHz sub-band  
The related costs are likely to be very m odest, but would not significantly increase the 
likelihood of achieving the major benefits of harmonisation. 
                                                 
5 At the last count: Austria, the Czech Republic , Finland, France, German y, Spain, Sweden, the 
Netherlands and the United Kingdom. 
6 Consumer and producer surplus. 
7 Net present value over 15 years, compared to no EU coordination. 
 
EN 7   EN 5.4.2.  Commission Decision setting the technica l parameters for the 790-862 MHz band  
This policy option is likel y to yield the vast bulk of the expe cted benefits, as evaluated by the 
Commission study, mentioned in the introduction to section 5.4 above, because the increased 
level of harmonisation will produce economies of s cale and facilitate interoperability. In turn, 
this will facilitate the achievement of impor tant EU social objectives such as ensuring 
‘broadband access for all’.  
5.4.3.  Commission Decision setting the technical parameters and setting a mandatory end-
date for clearing the 790- 862 MHz sub-band of broadcasting (high-power) services 
This option would ensure maximum benefits as it would remove any uncertainty for 
stakeholders. However, such a decision s hould be subject to the agreement of the European 
Parliament and the Council due to the potential impact, in particular on the development of 
broadcasting services. 
6. COMPARISON OF OPTIONS  
6.1. Comparison of options regarding the ti mely completion of  analogue switch-off 
A mandatory Community measure would tend to be opposed by several Me mber States, citing 
major issues of public interest. 
Therefore, the option to issue a ‘Recommend ation’ (option in 5.1.2) seems the most 
appropriate. It should help reinforce previous  political commitments, which in turn would 
have a positive ‘psychological’ effect on stakehol ders. If this option he lps accelerate adoption 
of the 790–862 MHz sub-band by a few months ac ross the EU, it could yield significant 
benefits as explained, and reduce the cost for broadcasters to ‘simulcast’ (transmit the same 
programmes in both analogue and digital format). 
6.2. Comparison of options regarding opti mal use of spectrum in the UHF band 
(470-862 MHz) 
The option ‘further coordination ac tivities’ opens the way for a fu rther digital dividend in the 
long term without creating major co sts. It appears to be a justif ied and proportionate option as, 
at present, none of the measures considered can show a clear advant age for a compulsory 
approach at EU level. 
6.3. Comparison of options regarding the co ordination of Membe r State action in 
the 790-862 MHz sub-band 
The Member States presently considering nation al regulatory action conc erning this sub-band 
are under increasing pressure to take action, so failure to prov ide a Community template for a 
coordinated approach as a matter of urgency woul d risk fragmentation in the internal market 
and loss of the economies of scale that might otherwise be obtained. The proposed 
recommendation (in 5.3.2.) therefor e seems the preferable option. 
 
EN 8   EN 6.4. Comparison of options regarding tec hnical harmonisation of the 790-862 MHz 
sub-band 
While the absence of an end-date for clear ing the 790-862 MHz sub-band in this option 
(5.4.2.) could lead to uncertainty in the EU  single market due to different rates of 
implementation and take-up in different Member States, it is important to take into account 
the sensitivities of Member States, mainly due  to different switch-off speeds and different 
legacy situations regarding broadcasting.  
In consequence, the best option at this point  in time, which also satisfies proportionality 
requirements, appears to be requiring all Member States to apply the same technical 
conditions when changing the designation of  the 790-862 MHz sub-band from the current 
designation for broadcasting, and recommending th at awards be made on a technology- and 
service-neutral basis with common technol ogical conditions and a common band plan.  
If the Commission were to set an end-date, it is not certain whether all Member States would 
support such a measure. The option selected means that, while allowing flexibility for 
Member States in the choice and timing of any m ove to wireless broadb and use, the technical 
conditions that will apply once this choice is made are clear and coordinated, thus removing 
the principal risk of fragmentation. 
7. MONITORING AND EVALUATION  
It is proposed to base evaluati on and monitoring on operational obj ectives in the specific areas 
of concern, in particular: 
• The timeliness of measures taken by Member States to ensure the complete switch-off of 
analogue TV by 1 January 2012; 
• Progress in making the 790-862 MHz sub-band available for electronic communications 
under harmonised technical conditions; 
• Progress in migrating to ‘best in class’  technologies for transmission networks. 
The Commission should be assisted by relevant advisory committees.