Opinion of the European Economic and Social Committee on the ‘communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on the transition from analogue to digital broadcasting (from digital “switch-over” to analogue “switch-off”) ’ (COM(2003) 541 final)
Date: 2004-02-26
Institutions: European Economic and Social Committee
Subjects: communications policy, digital technology, technological change, telecommunications policy

30.4.2004

EN

Official Journal of the European Union

C 110/125

Opinion of the European Economic and Social Committee on the ‘communication from the
Commission to the Council,
the European Economic and Social
Committee and the Committee of the Regions on the transition from analogue to digital broad-
casting (from digital “switch-over” to analogue “switch-off”) ’

the European Parliament,

(COM(2003) 541 final)

(2004/C 110/21)

On 17 September 2003, the European Commission decided to consult the European Economic and Social
Committee, under Article 262 of
the Treaty establishing the European Community, on the above-
mentioned communication

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee's work on the subject, adopted its opinion on 3 February 2004. The rapporteur
was Mr Green.

At its 406th plenary session held on 25 and 26 February 2004 (meeting of 26 February), the European
Economic and Social Committee adopted unanimously the following opinion.

1. Background

affects all segments in the broadcasting value-chain, namely:
content production, transmission and reception.

1.1
The switchover from analogue to digital broadcasting is
a complex process whose social and economic implications go
well beyond the pure technical migration. Replacing analogue
broadcasting with a digital system presents huge advantages in
terms of more efficient spectrum usage and increased transmis-
sion possibilities;
lead to new services, wider
consumer choice and enhanced competition. These advantages
are underlined in the Action Plan eEurope 2005. (1)

these will

The objective of the eEurope 2005 Action Plan is to
1.2
provide a favourable environment for private investment and
for the creation of new jobs, to boost productivity, to moder-
nise public services, and to give everyone the opportunity to
participate in the global
information society. The European
Commission is thus seeking to stimulate secure services, appli-
cations and content based on a widely available infrastructure.

1.3
However, the Commission does not take a position on
the timing of analogue switch-off, which is a matter to be
decided at the level of the Member States or of the regional
authorities. The main difficulty concerns terrestrial broad-
casting.

1.4
The communication underscores the many advantages
of switching to digital broadcasting in the EU, but these are
counterbalanced by a number of significant migration obsta-
cles. Hence,
there may be circumstances that justify policy
intervention to address these obstacles and certain general
requirements to be respected by such measures.

2. General comments

2.1
The European Economic and Social Committee agrees
with the Commission's key assertion that switchover implies
much more than a technical migration. Considering the role of
television and radio in contemporary societies, the impact is
not only economic but also social and political. Switchover

(1) COM(2002) 263 final, eEurope 2005: An information society for

all.
http://europa.eu.int/information_society/eeurope/news_library/docu-
ments/eeurope2005/eeurope2005_en.pdf.

2.2
Switchover is thus a complex, protracted process invol-
ving many variables and affecting all social groups - consumers,
industry and public authorities.

In an environment where production and consumption
2.3
technology is otherwise increasingly digital,
it is realistic to
assume that analogue broadcasting will be replaced by digital
broadcasting in the longer term.

2.4
Switchover should, in principle, be market-driven and
consumer-centred. That means, among other things, that the
role and remit of public service operations should be discussed
and adapted to an environment in which technological devel-
opments are changing market conditions and generating new
services. Public authorities do nevertheless have an obligation
to create the conditions needed to ensure that, when markets
are ready to accept the transition risks, there will be total trans-
parency in the changeover process, no social exclusion will be
engendered, all sectors of the population will have access to the
potential benefits, high quality standards will be complied with
and public service standards pertaining to broadcasting services
will be guaranteed.

2.5
However, the Committee agrees with the Commission
that television has a number of special features. Some of these
are connected specifically with the development of digital TV,
but others apply to television generally.

2.6
Traditionally, there have been three transmission routes:
terrestrial, cable and satellite. The range of each of these routes
has been contingent on social circumstances and geographical
conditions. So far, digital TV has mainly grown on the back of
satellite pay-TV. However, this development has stalled, and
there are many indications that digital TV needs new drivers
beyond traditional pay-TV.

C 110/126

EN

Official Journal of the European Union

30.4.2004

2.7
Television has special political and social relevance and,
to
for that and other reasons, has generally been subject
enforced minimum quality and pluralism requirements. As a
result, market failure has, in turn, also been an issue for consid-
eration.

Broadcasting thus has a stronger tradition of policy
2.8
intervention than other
information and communication
sectors, such as telecommunications. There is a strong case for
EU-level coordination of any future policy intervention but, at
the same time, it is important that each Member State should
pursue its own switchover path in line with national traditions
and national circumstances, including the development of the
various (satellite or cable) networks.

It is therefore appropriate to reaffirm the guiding princi-
2.9
in its
the Commission's audiovisual policy set out
ples of
Communication of 14 December 1999 (COM(1999) 657 final),
namely proportionality, subsidiarity, separation of infrastruc-
ture and content regulation, recognition of the role of public
service television and the need for transparency in its financing
and autonomy for the regulatory bodies in relation to political
and economic authorities.

3. Specific comments

In a market-oriented, demand-led switchover model, it is
3.1
crucial that the transition is prompted and promoted both by
users and by the supply side.

Transparent conditions

3.2
services are vital for users and operators alike.

for both existing and new

3.3
For existing services, these relate in particular to ‘must
carry’ obligations which, today, typically give universal access
to the national public service channels.
It will nevertheless
always be essential to guarantee that the transition will be
gradual and without interruption and not aggravate social and
cultural exclusion.

3.4
Users are also likely to need clarification of the copy-
right issues involved in free access facilities to neighbouring
countries' free-to-air/public service channels, so that,
in that
area, they are not put at a disadvantage vis-à-vis digital tech-
nology. Specific copyright issues are being dealt with separately
by another study group.

Brussels, 26 February 2004.

3.5 With regard to new services, the Committee agrees that
it is important that the public authorities encourage the avail-
ability of added-value content on TV networks, by, for instance,
ensuring that public information is increasingly available. In
that connection, however,
it is also important to stress the
importance of technological neutrality, as regards, for instance,
the links between traditional mass communications and new
mobile services.

This is also of crucial importance for future spectrum

3.6
allocation/assignment.

It is important to establish new business models which,
3.7
inter alia, secure the balance between free-to-air and pay
services in future digital TV broadcasting. That also means
giving the public service an appropriate role tailored to the
changes in market conditions and social circumstances trig-
gered by technological developments regarding the spectrum,
where European-wide cooperation is particularly necessary,
especially as regards the coordination of frequencies and infor-
mation exchange,
the Council has already
alerted the Commission (2).

to which point

4. Conclusions
4.1
The switchover from analogue to digital broadcasting
has crucial implications for social, political and industrial devel-
opment.

4.2
Policy intervention may encourage switchover and must
ensure fairness and transparency so that the public and users
understand what is going on. The national authorities play a
key role in this process and EU coordination is also important.

4.3
Sustainable business models should be put in place in
order to ensure a balance between free-to-air and pay services
in future digital TV broadcasting.
is
important to remember the proven viability so far of the ‘Euro-
pean model’, which involves a mix of free-to-air/public service
broadcasting and pay services, but which is being challenged
by new market conditions and technological developments.

In that connection,

it

4.4
It is therefore deemed to be vital that public interests be
coordinated at EU level so as to secure the proportionality of
any intervention and ensure that
to the strict
minimum needed to achieve those social objectives and others
relating to price accessibility and the universality and continuity
of public audiovisual service provision.

is kept

it

The President
of the European Economic and Social
Committee
Roger BRIESCH

(2) Conclusions of

the Council and of

the
Governments of the Member States, meeting within the Council of
26 June 2000, concerning the communication from the Commis-
sion on principles and guidelines for the Community's audiovisual
policy in the digital age (OJ C 196 of 12/07/2000 p. 1, 13th
whereas).

the representatives of