Commission Staff Working Document - Impact Assessment - Accompanying document to the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions "Transforming the digital dividend into social benefits and economic growth" and the Commission Recommendation facilitating the release of the digital dividend in the European Union {COM(2009) 586 final} {C(2009) 8287 final} {SEC(2009) 1437}
Date: 2009-10-28
Institutions: European Commission
Subjects: broadcasting, communications policy, digital technology, high-definition television, impact study, radio telecommunications, transmission network, waveband

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.10.2009 
SEC(2009) 1436 

COMMISSION STAFF WORKING DOCUMENT 

IMPACT ASSESSMENT 

Accompanying document to the 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

"Transforming the digital dividend into social benefits and economic growth" 

and the  

COMMISSION RECOMMENDATION 

Facilitating the release of the digital dividend in the European Union 

{COM(2009) 586 final} 
{C(2009) 8287 final} 
{SEC(2009) 1437} 

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TABLE OF CONTENTS 

Summary of changes in response to the Opinion of the Impact Assessment Board.................. 5 

1. 

1.1 

Background, context and consultation ......................................................................... 6 

Background and context............................................................................................... 6 

1.1.1  A significant amount of radio spectrum becoming available concurrently in Europe. 6 

1.1.2   Main objectives of the initiative................................................................................... 6 

1.1.3  A spectrum with exceptional qualities ......................................................................... 7 

1.1.4 

The potential social and economic benefits are significant ......................................... 7 

1.1.5 

Limited window of opportunity ................................................................................... 8 

1.1.6 

Longer term view to reap the full benefits ................................................................... 8 

1.1.7  Considerable political interest and support .................................................................. 9 

1.1.8 

Envisaged policy instruments ...................................................................................... 9 

1.1.9  Main basis for this impact assessment ....................................................................... 11 

1.2 

Consultation and expertise ......................................................................................... 11 

1.2.1  Overview of main external consultations................................................................... 11 

1.2.2 

Internal consultations and consultation of other EU institutions ............................... 13 

1.2.3  Main conclusions from the consultative process ....................................................... 13 

1.2.4 

Summary of results of the consultations on the first topic:  Analogue Switch-Off ... 14 

1.2.5.  Summary of results of the consultations on the second and third topics:  the 790-862 

MHz sub-band and its technical harmonisation ......................................................... 14 

1.2.6.  Summary of results of the consultations on the fourth topic: further improvements in 
broadcasting transmission efficiency ......................................................................... 14 

2. 

Problem definition...................................................................................................... 15 

2.1. 

Identified issues and their underlying drivers ............................................................ 15 

2.1.1.  Lack of coherence of national approaches will lower the usability of the spectrum 

and hence the potential socio-economic impact of the digital dividend .................... 15 

2.1.2.  Lack of EU coordination will prevent Member States to allocate the digital dividend 

to its best uses ............................................................................................................ 16 

2.1.3.  Lack of economies of scale and pan-European coverage of services may hurt the 

European economy and deter investments................................................................. 16 

2.1.4.  Optimising the digital dividend in the medium term (spectrum below 790 MHz).... 17 

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2.1.5.  Risk of disruption of important services already making use of part of the UHF 

where the digital dividend spectrum is located .......................................................... 18 

2.1.6.  A sizeable part of the benefits could be foreclosed in absence of proper coordination 

with third countries .................................................................................................... 18 

2.2. 

2.3. 

3. 

4. 

Likely outcome in the absence of action at the EU level........................................... 19 

The advantages of EU intervention............................................................................ 21 

Specific objectives pursued by this initiative............................................................. 22 

Policy options............................................................................................................. 22 

4.1. 

Policy options regarding the timely switch-off of analogue TV................................ 22 

4.1.1  No further EU action.................................................................................................. 23 

4.1.2.  Recommendation that Member States take all necessary steps to switch-off analogue 
signals by 1 January 2012 .......................................................................................... 23 

4.1.3  Mandating analogue switch-off by 1 January 2012 (a Community legal measure) .. 23 

4.2. 

Policy options regarding the achievement of the optimal use of spectrum in the UHF 
band (470-862 MHz).................................................................................................. 23 

4.2.1  No further EU action on coordination activities ........................................................ 24 

4.2.2 

Proposing further coordination activities in sub-bands below 790 MHz................... 24 

4.3. 

Policy options regarding the coordination of Member State action to ensure a 
coherent approach to the 790-862 MHz sub-band ..................................................... 26 

4.3.1.  No further EU action.................................................................................................. 26 

4.3.2.  Recommendation that Member States follow a co-ordinated approach in the 790-862 
MHz sub-band............................................................................................................ 26 

4.4. 

Policy options regarding the technical harmonisation of the 790-862 MHz sub-band27 

4.4.1.  Guidelines for the harmonisation (non mandatory) of the 790–862 MHz sub-band . 27 

4.4.2.  Commission Decision setting the technical parameters of the 790–862 MHz sub-

band ............................................................................................................................ 27 

4.4.3.  Commission Decision setting the technical parameters and setting a mandatory end-

date for clearing the 790-862 MHz sub-band of broadcasting (high-power) services27 

5. 

Assessment of impacts ............................................................................................... 28 

5.1.  

Impact of options regarding the timely analogue switch-off ..................................... 28 

5.1.1.  No further EU action.................................................................................................. 28 

5.1.2.  Recommendation that Member States take all necessary steps to switch-off analogue 
signals by 1 January 2012 .......................................................................................... 28 

5.1.3  Mandating analogue switch-off by 1 January 2012 (a Community legal measure) .. 29 

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5.2. 

Impact of options regarding the achievement of the optimal use of spectrum in the 
UHF band (470-862MHz).......................................................................................... 30 

5.2.1.  No further EU action on coordination activities ........................................................ 30 

5.2.2.  Further coordination activities in sub-bands below 790 MHz ................................... 30 

5.2.3 

5.3. 

 Impact of mandatory requirements to improve spectrum efficiency linked to the 
digital dividend .......................................................................................................... 34 

Impact of options regarding the coordination of Member State actions in the 790-
862MHz sub-band...................................................................................................... 34 

5.3.1.  No further EU action.................................................................................................. 34 

5.3.2.  Recommendation that Member States take no action that would interfere with the 

technical harmonisation measure being planned at EU level in the 790-862 MHz sub-
band ............................................................................................................................ 34 

5.4. 

Impact of options regarding the technical harmonisation of the 790–862MHz sub-
band ............................................................................................................................ 34 

5.4.1.  Guidelines (non mandatory) for the harmonisation of the 790–862MHz sub-band .. 37 

5.4.2. 

 Commission Decision setting the technical parameters of 790-862 MHz sub-band 37 

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) services38 

6. 

6.1. 

6.2. 

Comparison of options ............................................................................................... 40 

Comparison of options regarding the timely completion of analogue switch-off ..... 40 

Comparison of options regarding the achievement of the optimal use of spectrum in 
the UHF band (470-862 MHz)................................................................................... 41 

7. 

Evaluation and monitoring......................................................................................... 45 

Annex A: Glossary of abbreviations used in the IA report ...................................................... 47 

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SUMMARY OF CHANGES IN RESPONSE TO THE OPINION OF THE IMPACT ASSESSMENT BOARD 

In  its  opinion  the  Impact  Assessment  Board  requested  improvements  to  the  draft  version  of 
this Impact Assessment and issued the following main recommendations: 

•  The report should be strengthened with regards to the social and distributional impacts of 
the  proposed  measures,  in  particular  on  affected  groups  of  consumers.  It  should  also 
address more explicitly the distributional impact on individual Member States as well as on 
border regions and on third countries. It should also provide a summary of the underlying 
economic analysis and methodology used to estimate the projected benefits and costs on all 
relevant points of the main proposals; 

•  The report should integrate the main results of the stakeholders' consultation; 

•  The  report  should  better  explain  what  follow-up  measures  are  envisaged  and  how  the 
impact of these measures will be assessed, including in the case of the proposed technical 
harmonisation measure. 

This final version addresses the comments of the Board in the following manner:  

With respect to the first point, the revised Impact Assessment clarifies the social benefits in 
the background section (1.1). It also addresses distributional aspects under relevant options in 
the policy options (5) and assessment section (6), mainly the impact on groups of consumers 
and  specific  Member  States  of  earlier  analogue  switch-off,  the  impact  on  the  broadcasting 
sector,  individual  Member  States  and  third  countries  of  creating  a  sub-band  for  electronic 
communications  services,  and  the  impact  of  the  same  measure  on  the  existing  users  of  the 
band, mainly the users of wireless microphones. 

Regarding  analogue  switch-off,  one  has  to  be  aware  that  the  current  initiative  could  only 
affect the precise timing of the switch-off on 1 January 2012 but not the principle of switching 
off analogue TV by 2012, which was already agreed with Member States in the context of the 
Communication  of  2005  on  the  switchover  to  digital  broadcasting  and  ensuing  political 
discussions1. The other proposals regarding the achievement of the optimal use of spectrum in 
the UHF band (section 4.2) are presented to initiate a debate at EU level. They are at an early 
stage  of  development  and  do  not  therefore  include  concrete  action  at  Community  level. 
Therefore,  these  proposals  could  not  be  assessed  with  any  great  level  of  detail  and  further 
impact assessment may be required at a later stage. 

Regarding  the  need  to  clarify  the  methodology  used  to  assess  benefits,  the  main  text  of  the 
document  is  more  explicit  on  the  assumptions  and  the  scope  of  the  underlying  analysis.  In 
addition, the full version of the Commission study is made public. 

The  results  of  the  public  consultation  have  been  integrated  in  the  main  text  of  the  report  as 
requested. The responses allowed a more nuanced assessment to be made of a certain number 
of  issues  but  did  not  reveal  fundamentally  new  developments,  or  changes,  regarding  the 
position of the main stakeholders. 

With  respect  to  the  follow-up  measures,  these  were  addressed  mainly  by  improving  the 
section on the background (1) and problem definition (2) and by specific clarification in the 
sections on policy options (4) and assessment of impacts (5).  

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COM(2005)  204,  Communication  on  “Accelerating 
broadcasting”, 24 May 2005 and Council Conclusions of Telecom Council of 1/5 December 2005. 

transition  from  analogue 

the 

to  digital 

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1. 

BACKGROUND, CONTEXT AND CONSULTATION  

1.1 

Background and context  

This Impact Assessment accompanies proposals for a co-ordinated approach to the use of the 
radio  spectrum  freed  up  by  the  switchover  of  terrestrial  TV  transmission  from  analogue  to 
digital  format  (Digital  Terrestrial  Television,  or  DTT)  in  order  to  maximise  the  social  and 
economic benefits that can be reaped from this unique opportunity in the EU.  

1.1.1  A  significant  amount  of  radio  spectrum  becoming  available  concurrently  in 

Europe 

This spectrum becoming available, located in the UHF (470–862 MHz) frequency band, is the 
result of the superior  transmission  efficiency  of  digital  broadcast technology which requires 
five  or  six  times  less  frequency  than  the  old  analogue  one  in  order  to  transmit  the  same 
number of programme channels. It is commonly referred to as the "digital dividend". 

1.1.2   Main objectives of the initiative 

This initiative aims at taking advantage of the unique opportunity of the digital dividend at 
EU level in order to ensure that: 

1.  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) as well as the issue of the "digital divide". “Broadband for all” is 
a  primary  objective  of  the  EU’s  i2010  policy  framework2  and  is  linked  to  the 
European  Economic  Recovery  Plan.  This  objective  includes  bridging  the  ‘digital 
divide’ between areas that have limited or no broadband coverage (typically in rural 
areas)  and  those  that  have  access  to  high-speed  broadband,  as  an  important  way  of 
supporting social and economic cohesion. These objectives are also an integral part of 
the Commission's broadband initiative which is in the process of being adopted by the 
Commission.  In  addition,  wireless  broadband  infrastructures  could  also  be  used  by 
public services such as for PPDR (Public Protection Disaster Recovery) applications. 
From  a  societal  perspective,  access  to  broadband  communications  can  have  a 
significant impact on the competitiveness of the EU economy in terms of productivity 
gains and social impact, for example by increasing employment, reducing the need for 
mobility and providing more efficient health care and public administration services to 
the citizens. Finally, the digital dividend constitutes the most cost-effective spectrum 
to be allocated for the launch of the next generation of high-speed mobile broadband 
communications (typically used for smart phone and netbook PC connections).  

2.  In  addition  to  the  spectrum  used  for  wireless  broadband  services,  there  will  also  be 
sufficient  transmission  capacity  for  the  future  development  of  terrestrial 
broadcasting  services  (e.g.  High  Definition  Television)  by  increasing  the  average 
efficiency level of television transmission infrastructures. Terrestrial broadcasting has 
entered a period of intense transformation and innovation as it makes the transition to 
digital  format.  High  Definition  TV  and  mobile  TV  are  high  on  the  agenda  in  some 
Member States. Increasingly, the number of television programming channels creates 

2  

Communication  from  the  Commission  “i2010  -  A  European  Information  Society  for  growth  and 
employment” 

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the  prospect  of  greater  media  pluralism,  growth  in  media  content  production,  and 
higher-quality, more interactive services. Spectrum is a rare public resource and it is 
important to ensure that there is an optimum use of this limited capacity by all users 
including  by  the  main  incumbent  user  (broadcasters).  This  objective  must  also  take 
into  account  the  Member  States'  competencies  in  the  field  of  audiovisual  policy,  in 
particular  in  relation  to  cultural  diversity  and  pluralism.  Support  for  audiovisual  and 
media policies is a priority goal for EU spectrum management. 

1.1.3  A spectrum with exceptional qualities 

The digital dividend is particularly suited to facilitate the achievement of the above objectives 
because  the  related  frequencies  are  located  in  a  very  attractive  part  of  the  radio  spectrum, 
offering  ideal  propagation  characteristics:  radio  signals  in  these  frequencies  can  travel  over 
relatively  long  distances,  reducing  the  number  of  costly  transmitters,  and  can  also  penetrate 
buildings easily, meaning terminal equipment can be easily used indoors. These frequencies 
can  also  carry  a  significant  amount  of  data  and  allow  the  use  of  relatively  small  antenna, 
which is particularly suitable for mobile devices. 

1.1.4  The potential social and economic benefits are significant 

High potential value 

The  digital  dividend  represents  a  rare  opportunity  in  Europe  when  a  significant  amount  of 
spectrum  suitable  for  a  variety  of  uses  is  becoming  available  across  all  Member  States  in  a 
relatively  similar  timeframe.  It  has  therefore  attracted  a  lot  of  interest  from  potential  users, 
with  demand  from  users  likely  to  significantly  exceed  supply.  More  generally,  the  digital 
dividend  is  truly  a  unique  opportunity  for  Europe  to  meet  the  growing  demand  for  radio 
spectrum, particularly for the wireless services described above, and can therefore contribute 
significantly to the Lisbon goals of competitiveness and economic growth and satisfy some of 
the most important emerging social, cultural and economic needs for the benefit of European 
citizens.  The  digital  dividend  carries  both  high  economic  as  well  as  high  social  and  public 
value.  It  would  be  counterproductive  to  oppose  these  two  types  of  value  as  they  often 
complement  each  other:  it  is  clear  that  wireless  access  to  broadband  services  creates  public 
benefits such as "access for all" to the Internet, and hence an increased access to educational 
and cultural information, while offering cost savings and revenue opportunities for operators. 
At  the  same  time,  broadcasting  services  bring  high  value  content  through  a  number  of 
platforms including terrestrial transmission in the UHF-band, IPTV on broadband access, and 
other platforms. Many predict the convergence of both domains in the long term, especially 
when  taking  into  account  the  blurring  separation  between  types  of  content  and  types  of 
distribution platforms. 

Social impact  

The expected social benefits of the initiative are considerable and they derive from two main 
services  having  crucial  importance  for  society:  broadband  access  for  citizens  in  presently 
underserved  areas  and  improved  broadcasting  services.  A  number  of  studies3  have 
demonstrated  the  direct  and  indirect  social  effects  of  those  applications.  The  need  for 
additional broadband capacity in particular is at the core of the ongoing broadband initiative 

3  

See  for  instance  Plum  Consulting,  Restructuring  Europe's  economic  and  social  progress:  unleashing 
the  potential  of  ICT  (January  2006);  Ovum,  Bridging  the  Digital  divide  –  less  technology,  more 
understanding (23 March 2009). 

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and  has  also  been  elaborated  in  this  context4  and  reiterated  recently  by  the  Radio  Spectrum 
Policy Group (RSPG) in its position paper of 14 May 20095. A sizeable part of these benefits 
can be triggered at local and national level but this Impact Assessment looks at the significant 
incremental  social  value  that  can  be  generated  by  this  specific  Community  initiative.  The 
Impact  Assessment  also  considers  some  negative  impact  of  specific  measures  on  selected 
communities  of  users  (e.g.  cost  of  upgrading  equipment  to  continue  receiving  television 
programmes after the transition to digital format for consumers who can not afford to replace 
their old analogue TV set6) and in some cases, on specific Member States (e.g. Member States 
exposed to interference from third countries preventing the deployment of new services). 

1.1.5  Limited window of opportunity 

There  is  an  urgent  need  to  give  access  to  the  digital  dividend  spectrum  to  contribute  to 
economic recovery 

The  current  economic  crisis  clearly  underlines  the  urgency  of  making  sufficient  radio 
spectrum available for wireless communications, which currently represent the most vibrant 
link  in  the  technological  innovation  chain.  They  are  essential  to  creating  further  efficiency 
gains  and  cost  savings  in  the  broader  economy  and  are  thus  a  key  driver  for  economic 
recovery.  The  timeliness  of  this  action  is  thus  important  so  as  to  ensure  that  the  digital 
dividend can contribute to the EU efforts for economic recovery.  

Several Member States are going ahead 

Recognising this urgency, a number of Member States have recently stepped up their efforts 
to develop full broadband access. As part of these efforts, several Member States have already 
expressed  their  intention  to  open  up  very  soon  the  790-862  MHz  sub-band  located  in  the 
upper part of the UHF-band, to deliver wireless broadband access. This means, however, that 
there  is  a  risk  of  fragmentation  if  these  Member  States  were  to  proceed  on  the  basis  of 
different conditions of use for the same spectrum, and thus there is an urgent need to ensure 
that  there  will  be  consistency  at  EU  level  in  order  to  allow  all  Member  States  to  take  full 
advantage  of  this  opportunity.  While  five  EU  Member  States  have  completed  analogue 
switch-off, the United States was the first non-European country to do so (in June 2009). The 
700 MHz band, which forms part of the US digital dividend, was auctioned at the beginning 
of 2008. The auctions raised the sizeable amount of US$ 19 billion7. 

1.1.6  Longer term view to reap the full benefits 

The recent acceleration of the developments concerning the 790-862 MHz sub-band has put 
the emphasis on the need to address EU coordination for this particular sub-band. One should 

4  

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6  

7  

See for instance Connecting Europe at High Speed : National Broadband Strategies {SEC(2004) 599}, 
COM(2009)  36  final  of  28  January  2009  –  Communication  from  the  Commission  to  the  European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the  Committee  of  the 
Regions  “Investing  today  for  tomorrow's  Europe”  and  the  Presidency  Conclusions,  Council  of  the 
European  Union,  Brussels,  12  December  2008  17271/08,  http://ec.europa.eu/sport/information-
center/doc/timeline/european_council_12-12- 2008_conclusions_en.pdf. 
RSPG09-284 Final  
These issues are now well known as several Member States have already switched off analogue TV. A 
particularly  publicised  case  was  the  approach  used  by  the  first  region  to  switch-off,  the  Berlin-
Brandenburg region, which included state subsidies to consumers for the purchase of digital decoders 
which were approved by the Commission under certain conditions. 
US auction of the 700 MHz band in February 2008. FCC website, auctions: 
http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=73 

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keep  in  mind,  however,  that  the  digital  dividend  can  be  wider  and  offer  other  attractive 
possibilities  in  other  parts  of  the  UHF  spectrum.  A  coordinated  approach  to  the  use  of  the 
overall digital dividend would significantly increase its capacity and impact – and hence the 
potential social and economic benefits – through increased efficiency in the use of spectrum 
via  technical  coordination  and  acceleration  of  the  transition  to  new  technologies,  increased 
economies of scale in the single market, greater potential for interoperability of services, more 
stability  and  predictability  for  investors,  increased  innovation  and  competitiveness  for 
European industry, more efficient spectrum negotiations with third countries. 

1.1.7  Considerable political interest and support 

The importance  of a  coordinated  approach was also recognised by the European Parliament 
and by the Council in their responses to the earlier Commission Communication on "Reaping 
the  full  benefits  of  the  digital  dividend  in  Europe:  A  common  approach  to  the  use  of  the 
spectrum  released  by  the  digital  switchover"8.  The  European  Parliament  adopted  a 
Resolution9  which  called  on  the  Commission  to  submit  proposals  for  better  coordination  of 
the  digital  dividend  at  Community  level.  The  Council10  adopted  specific  conclusions  in 
response to the previous Communication calling on the Commission to initiate the studies and 
consultations necessary to define a coherent basis for the coordinated usage of spectrum and 
to support  and  assist Member States in this process. Efficient  use of radio spectrum was  an 
important topic in the Review of the telecoms regulatory framework. The new rules about to 
be  adopted  foresee  the  establishment  of  a  Radio  Spectrum  Policy  Programme  for  important 
political decisions on radio spectrum matters to be adopted by the European Parliament and 
the Council. 

The  Radio  Spectrum  Policy  Group  (RSPG),  a  high-level  group  of  experts  from  Member 
States  that  assists  and  advises  the  Commission  on  strategic  aspects  of  spectrum  policy, 
provided  advisory  input  on  the  digital  dividend  issue  (see  section  1.2.1)  and  invited  the 
Commission to act at EU level. This shows that Member States understand the added-value of 
acting at EU level and support developing a coordinated approach. 

1.1.8  Envisaged policy instruments 

Three main policy instruments are envisaged at the start of this initiative: 

1. A Commission Recommendation to address two specific pre-requisites to the availability 
of  a  digital  dividend,  and  which  need  to  be  fulfilled  by  Member  States  without  any  further 
delay. There is already a high degree of consensus in Europe on these preliminary actions: 

–  Member States to fulfil the political commitment for timely analogue switch-off in order to 
ensure  that  the  target  date  of  1  January  2012  identified  by  the  Commission  in  200511  is 
adhered to; 

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COM(2007) 700 
European  Parliament  Resolution  of  24  September  2008  on  reaping  the  full  benefits  of  the  digital 
dividend in Europe: a common approach to the use of the spectrum released by the digital switchover 
[2008/2099(INI)]. 
Council  Conclusions  on  "Reaping  the  full  benefits  of  the  digital  dividend  in  Europe:  A  common 
approach  to  the  use  of  the  spectrum  released  by  the  digital  switchover"  2877th  Council  meeting, 
Luxembourg, 12 June 2008. 
COM(2005)  204,  Communication  on  “Accelerating 
broadcasting”, 24 May 2005 and Council Conclusions of Telecom Council of 1/5 December 2005. 

transition  from  analogue 

to  digital 

the 

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–  Member States to support regulatory efforts towards the harmonised use in the Community 
of  the  790-862  MHz  sub-band  for  electronic  communications  services  other  than,  and  in 
addition to, broadcasting services, and refrain from any action that might hinder or impede 
the deployment of such communication services in that band. 

2. A Commission Communication that will identify the key policy issues for a common EU 
roadmap (a "blueprint" for further EU-level coordination of the digital dividend). To this end 
it will: 

–  explain the need to ensure an appropriate level of coordination in the European Union to 

reap the full social and economic benefits of access to this spectrum in Europe; 

–  outline the initial steps to be taken in order to ensure that the roadmap can be established 
and  effectively  implemented  –  by  avoiding  delay  of  the  analogue  switch-off  and  by 
preventing  situations  where  a  Member  State  takes  individual  decisions  on  the  digital 
dividend  that  would  seriously  hinder  a  co-ordinated  approach  and  undermine  the 
contribution that the digital dividend can make to the EU efforts for economic recovery; 

–  call  on  Member  States  to  consider  the  advantages  of  allocating  the  790-862  MHz  for 
electronic  communications  services  on  a  technology  and  service  neutral  basis,  and 
consequently  signal  the  Commission's  intention  to  propose  harmonised  technical 
conditions under which the 790-862 MHz sub-band – the upper part of the UHF band – can 
be made available for wireless broadband when a Member State decides to allow services 
other  than  broadcasting  into  those  frequencies  (see  also  Commission  Decision  in  point  3 
below); 

–  call  on  the  European  Parliament  and  the  Council  to  give  a  political  impetus  on  key 
strategic  objectives,  including  the  possibility  of  a  deadline  for  the  full  availability  of  the 
790-862  MHz  sub-band  for  electronic  communications  in  all  Member  States,  or  the 
adoption  of  a  common  EU  position  on  the  digital  dividend  in  international  spectrum 
negotiations (bilateral as well as in ITU). 

–  identify further  measures to increase efficient  use  of  spectrum  and  to  enhance  the  digital 
dividend,  which  will  be  fed  into  the  Commission  proposal  for  a  Radio  Spectrum  Policy 
Programme (established under the Review of the telecoms regulatory framework in order 
to establish strategic orientations on radio spectrum matters). This could include measures 
on  the  migration  to  more  efficient  and  more  versatile  terrestrial  broadcasting  systems, 
which in turn would allow more programmes to be transmitted and improve the consumers' 
viewing experience, as well as the setting of a date for clearing the 790-862 MHz sub-band 
in parallel with the development of these more efficient broadcasting systems. 

3.  A Commission Decision on the technical harmonisation of the 790-862 MHz sub-band 

In line with the above, the Commission would adopt a technical harmonisation decision (EC 
Decision) to set the technical parameters for use of the 790-862 MHz sub-band. The setting of 
these parameters is vital since high power networks, such as those used for fixed broadcasting 
services,  and  low  power  networks  such  as  those  used  for  fixed  and  mobile  wireless 
broadband,  cannot  co-exist  in  an  un-coordinated  manner  without  considerable  costs  or 
spectrum inefficiencies being incurred. This reinforced coordination would facilitate EU-wide 
interoperability  and  would  reduce  distortions  of  competition  in  the  single  market.    The 
envisaged  Decision  is  to  be  implemented  by  Member  States  if  and  when  they  decide  to 
change the designation of the sub-band, but a possible deadline for the implementation of 

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the  Decision  (mentioned  in  2.)  would  be  left  to  a  separate  discussion  with  the  European 
Parliament  and  Council,  under  the  Radio  Spectrum  Policy  Programme,  because  of  its 
political importance12.  

1.1.9  Main basis for this impact assessment 

This  impact  assessment  builds  upon  work  undertaken  by  the  Commission  since  2007,  in 
particular the previous Communication on the digital dividend mentioned above which clearly 
identified the potential for synergies at EU level. This Communication initiated a consultation 
and  "consensus-building"  process  with  a  view  to  identifying  the  best  possible  approach, 
quantifying  the  potential  cost  and  benefits  of  each  option,  and  stimulating  the  dialogue 
between interested sectors. 

These efforts were supported by several technical studies13, as well as by the in-depth study of 
the  socio-economic  impact14.  This  study,  conducted  on  behalf  of  the  Commission  by  a 
consortium  of  external  experts,  allowed  to  evaluate  both  in  quantitative  and  in  qualitative 
terms  the  various  approaches  and  options  to  create  optimal  value  from  the  digital  dividend 
spectrum, and provided therefore an important input to this impact assessment. 

1.2 

Consultation and expertise  

1.2.1  Overview of main external consultations 

The consultation process was an integral part of each stage of policy development as a large 
part of the policy work consisted in creating awareness on the unique opportunities created by 
the  emergence  of  a  digital  dividend.  As  well  as  the  Commission's  own  efforts  to  raise 
awareness, notable through the Communication of November 2007, further attention was paid 
to  this  issue  when  a  relatively  limited  part  of  the  digital  dividend  was  awarded  in  the  US 
through auctions that raised the sizeable amount of US$ 19 billion in February 2008.  

Interested  parties  were  given  several  opportunities  to  provide  their  input  through  the 
following activities and meetings. Each of these events contributed to the overall consultation 
process conducted by the Commission on the topic of the digital dividend: 
-  Stakeholders' Hearings 15 . 
-  Two Member States' workshops 16 . 
-  Public consultation on the draft RSPG Opinion on the Digital Dividend17 . 

12  

13  

14  

15  
16 

17 

A firm deadline for implementation would mean the obligation for Member States to vacate the 790-
862  MHz  sub-band  from  any  existing  high  power  broadcasting  transmitters.  This  may  affect  the  cost 
and/or the extent of terrestrial television services and has therefore a clear political dimension. 
These studies were conducted by the CEPT under the Commission mandate on technical considerations 
regarding harmonisation options for the digital dividend in the EU. The reports are available at: 
http://ec.europa.eu/information_society/policy/ecomm/radio_spectrum/manage/eu/rsc/rsc_subsite/mand
ates/index_en.htm 
Commission  study  on  Study  on  "Exploiting  the  Digital  Dividend,  a  European  Approach!.  Full 
information including final report accessible at: 
http://ec.europa.eu/information_society/policy/ecomm/radio_spectrum/documents/studies/index_en.htm
#digitaldividend2009. 
http://www.analysysmason.com/PageFiles/11730/Stakeholders%20hearings%20-%20Summary.pdf 
 http://www.analysysmason.com/Global/Consulting/Digital%20Dividend/First%20Member%20States%
20workshop%20-%20Summary%20-%2020090505%20REVISED.pdf 
http://rspg.ec.europa.eu/consultations/responses_digitaldividend_090515_0630/index_en.htm 

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-  Public consultation on the technical aspects of the digital dividend conducted by the 

CEPT, in response to the mandates from the Commission18. 

-  Public  consultation  on  the  draft  proposals  set  out  in  a  consultation  document  entitled 
"Transforming the digital dividend opportunity into social benefits and economic growth 
in Europe"; this closed on 4 September 2009 and generated 122 contributions. 

The general position of the main interested sectors, as identified during the successive steps of 
consultations, are summarised below: 

-  The broadcasting sector broadly supports the principle and objectives of the draft policy 
proposals, including, in most cases, the necessity to open up the 790-862 MHz sub-band 
for  new  services.  However,  the  sector  requests  the  Commission  to  exercise  caution 
regarding future implementation, in particular concerning the risk of harmful interference 
to  TV  transmissions  and  to  receivers  and  the  cost  of  reorganising  the  broadcasting 
networks to clear up the 790-862 MHz sub-band from high power TV transmitters. While 
accepting  that  broadcasting  services  will  be  able  to  develop  under  the  envisaged 
proposals,  broadcasters  warned  against  taking  a  purely  economic  approach.  The  sector 
also  warns  against  further  policy  changes  that  could  affect  spectrum  below  790  MHz. 
There were some notable differences of views among contributions from the broadcasting 
sector, in particular concerning the timing of the availability of spectrum above 790 MHz 
and  the  prospects  of  upgrading  networks  to  achieve  higher  spectrum  efficiency.  The 
proposal to upgrade DTT19 receivers seems to be generally welcome by broadcasters as it 
would facilitate future enhancements in broadcasting services. 

-  Telecommunications  operators  express  their  wide-ranging  support  on  virtually  all 
topics. The contributions particularly welcome the opening of the 790-862 MHz sub-band 
for  mobile  and  fixed  wireless  communications.  Some  mobile  operators  are  somewhat 
sceptical about the possible use of white spaces (the gaps between spectrum blocks used 
by broadcasters) but do not oppose the draft proposal on this matter. Many contributions 
from telecommunications players call for ensuring the availability of further spectrum of 
the  digital  dividend  on  a  service  and  technology  neutral  basis  in  the  future.  Several 
to  address  potential 
prominent 
competitive issues as the available spectrum is likely to satisfy a fraction of the demand, 
and  request  that  this  issue  be  added  to  the  Commission's  work  (this  request  emanates 
particularly from associations that include fixed operators). 

telecommunications  associations  stress 

the  need 

-  Cable  operators  fully  support  the  underlying  objectives  in  relation  to  the  re-use  of  the 
790-862  MHz  sub-band  and  recognise  the  benefits  that  could  be  available  to  a  large 
number of citizens. However, they are equally concerned that customers/ viewers could be 
negatively  impacted  by  interference  to  their  existing  television  and  broadcast  services, 
arising  from  the  introduction  of  certain  fourth  generation  mobile  systems.  The  tests 
commissioned  by  this  industry  to  provide  broader  validations  and  conclusions  are  still 
ongoing. Some criticism is targeted by cable operators at the CEPT, which allegedly did 
not consider all technical issues in sufficient depth. 

18  

19  

The  Electronic  Communications  Committee  (ECC)  of  the  European  Conference  of  Postal  and 
Telecommunications  Administrations  (CEPT)  adopted  on  1  July  2009  a  draft  ECC  Decision  on 
harmonised  conditions  for  Mobile/Fixed  Communications  Networks  operating  in  the  band  790-862 
MHz  (ECC/DEC/(09)EE)  ,  for  which  a  public  consultation  has  been  launched.  The  text  of  the  draft 
ECC  Decision  on  the  800  MHz  band  can  be  found  on  the  ECO  web  site  www.ero.dk,  under  ECC 
Activities/Public consultations on ECC Decisions/Recommendations and Reports. 
Digital Terrestrial TV 

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-  Existing  users  of  white  spaces  for  wireless  microphone  services  stress  the  great 
difficulty that they would face if they would be limited to using only one dedicated part of 
the UHF, and if new systems based on cognitive radio technologies20 start making use of 
the  same  spectrum.  They  however  support  efforts  by  the  Commission  to  discuss  at  EU 
level the issue of future relocation. 

-  The constituency interested in using the digital dividend for PPDR (public protection 
disaster recovery) services reiterated the need for spectrum below 1 GHz for their future 
high speed data services but did not present arguments to indicate if the use of the digital 
dividend would be a preferred option. 

1.2.2 

Internal consultations and consultation of other EU institutions 

Regarding internal  consultations, other services  of  the  Commission  with  a  policy  interest  in 
the subjects involved have been associated with the above consultative activities. There was 
also  an  Inter-Service  Group  meeting  on  spectrum  policy  on  18  June  2009  where  the  broad 
lines  of  the  proposed  Commission's  proposals,  which  are  the  subject  of  this  impact 
assessment,  were  presented  to  the  participants.  As  a  follow-up,  the  draft  impact  assessment 
document,  as  communicated  to  the  secretariat  of  the  Impact  Assessment  Board,  was  also 
transmitted  to  this  group  in  the  middle    of  August.  Finally,  an  Impact  Assessment  Steering 
Group including all relevant services was established. This Group met on 18 September 2009 
to discuss this impact assessment. 

As  far  as  other  EU  institutions  are  concerned,  as  indicated  above  the  European  Parliament 
responded  to  the  invitation  in  the  2007  Commission  Communication  and  adopted  an  own 
initiative resolution which has been taken into account in the proposal. The Council adopted 
specific  conclusions  in  response  to  the  previous  Communication.  The  Communication  was 
also addressed to the Committee of the Regions and the Economic and Social Committee. The 
Committee of Regions adopted its opinion21 on 19 June 2008.  

1.2.3  Main conclusions from the consultative process 

At  the  end  of  this  process,  there  were  four  main  topics  which  were  identified  as  requiring 
concrete actions and which underpin the main proposals subject to this impact assessment: 

(1) 

(2) 

(3) 

20  

21  

The importance of a timely analogue switch-off, i.e. the end of analogue broadcasting 
by 2012 in Europe, as a pre-requisite to trigger investments in new infrastructures and 
unleash the expected social and economic benefits. 

Requirement upon Member States to refrain from any action that would contradict or 
complicate  the  application  of  a  co-ordinated  EU  approach  in  the  790-862  MHz  sub-
band. 

The  setting  of  technical  parameters  for  the  790-862  MHz  sub-band  (so-called  800 
MHz  band)  to  allow  access  to  the  UHF  spectrum  for  new  uses  such  as  wireless 
broadband access in rural areas, for example. 

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. 
Opinion  of  the  Committee  of  Regions  on  "Telecommunications  reform  package"  (2008/C  257/10), 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2008:257:0051:0069:EN:PDF 

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(4) 

The  potential  for  further  increases  in  transmission  efficiency  by  adopting  the  most 
recent digital compression technologies, without affecting negatively the capacity for 
current services. 

1.2.4 

Summary of results of the consultations on the first topic:  Analogue Switch-Off 

The  stakeholders  from  the  telecoms  sector  clearly  asked  the  Commission  to  ensure  that  the 
analogue switch-off be completed at the latest by 1 January 2012, in accordance with the time 
table  proposed  in  the  Communication  on  the  digital  switchover  in  2005.  The  broadcasting 
sector was more cautious on this point, however, and while not questioning the importance of 
the switch-off date, it drew attention to the substantial investments that, although unavoidable, 
do require careful planning in order to ensure both the continuity of service and that specific 
groups  of  viewers  will  not  be  negatively  affected.  The  telecommunications  industry  also 
expressed  the  fact  that  certainty  on  switch-off  in  2012  was  more  important  that  the  precise 
date of 1 January 2012. A few Member States having plans to switch-off during the course of 
2012  indicated  that  advancing  their  planning  by  a  few  months  could  be  unworkable  or 
counterproductive. 

1.2.5. 

Summary of results of the consultations on the second and third topics:  the 790-862 
MHz sub-band and its technical harmonisation 

At the Hearings, there was a broad consensus between stakeholders that the harmonisation of 
the  790-862  MHz  sub-band22  for  fixed  and  mobile  wireless  communications  should  not  be 
mandatory. Instead voluntary harmonisation was desirable for political reasons. The telecoms 
sector  expressed  the  wish  that  the  Commission  should  make  itself  available  to  assist  cross-
border  co-ordination,  especially  with  non-EU  countries.  The  sector  finally  stressed  that 
opportunities  for  use  of  spectrum  below  790  MHz  should  be  explored.  The  broadcasting 
sector, although not generally in favour, did not oppose the principle of gradually opening up 
the  790-862  MHz  sub-band  to  other  services  on  a  neutral  basis.  The  stakeholders  from 
services  ancillary  to  broadcasting  and  programme  making  (mainly  the  wireless  microphone 
industry) wanted to be recognized as existing users and expressed strong concerns about the 
availability  of  their  service  following  the  harmonisation  of  the  790-862  MHz  sub-band  for 
mobile services. 

In the Member States workshops, the majority of respondents were in favour of opening the 
790-862  MHz band, but were opposed to a fixed end date for opening the band. Most of them 
agreed  with  allowing  electronic  communications  services  in  this  band  on  a  technology  and 
service neutral basis. It was noticeable that opinions evolved positively from the first to the 
second workshop. The respondents to the RSPG consultation expressed generally a positive 
opinion,  or  at  least  a  neutral  attitude,  towards  a  timetable  for  making  the  800  MHz  band 
available  to  new  uses  but  there  were  few  to  favour  making  it  mandatory  at  this  stage.  The 
compensation for the cost of clearing out the 790-862 MHz sub-band was a priority for many 
respondents in the broadcasting sector.  

1.2.6. Summary  of  results  of  the  consultations  on  the  fourth  topic:  further  improvements  in 

broadcasting transmission efficiency 

The Hearings showed differences of opinion among stakeholders from the broadcasting sector 
on whether action is required at a European level regarding MPEG-4/DVB-T2. The majority 
of  stakeholders  recognised  the  benefits  of  new  compression  techniques  but  were  concerned 

22  

Often referred to as the "800 MHz band". 

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about mandating MPEG-4 transmission standards and a date for transition from MPEG-2 to 
MPEG-4 due to the costs involved for their industry. Broadcasters were widely supportive of 
minimum quality in the rejection of interference on all DTT receivers (interference immunity) 
as  it  is  recognised  that  the  poor  quality  of  some  receivers  is  already  a  worrying  consumer 
issue. 

At  the  Member  States  workshops,  a  number  of  Member  States  fully  supported  the 
recommendation  to  define  minimum  interference  rejection  standards  for  DTT  receivers. 
However, Member States had mixed views regarding the idea of a binding EU-level action on 
the  full  adoption  of  MPEG-4,  or  equivalent  standard,  compatible  receivers.  Some  of  them 
stressed that most DTT receivers currently produced are MPEG-4 compatible and that market 
forces are already leading to the full adoption of MPEG-4 compatible receivers. 

2. 

PROBLEM DEFINITION 

2.1. 

Identified issues and their underlying drivers 

The  issues  underlying  the  initiatives  presented  in  the  Communication  and  Recommendation 
are also documented in the Commission’s 2007 Communication “Reaping the full benefits of 
the digital dividend in Europe: A common approach to the use of the spectrum released by the 
digital switchover”.23 

2.1.1.  Lack  of  coherence  of  national  approaches  will  lower  the  usability  of  the  spectrum 

and hence the potential socio-economic impact of the digital dividend  

For interference management reason, it is technically impossible, or very inefficient, to mix in 
the same spectrum various wireless services having fundamentally different types of technical 
characteristics.  To  illustrate  this  point,  experts  have  estimated  that  mixing  together  high 
power  and  low  power  services  in  the  UHF  band  (the  band  linked  to  the  digital  dividend) 
without  at  least  proper  channelling/guard  band  arrangements  would  reduce  the  overall 
theoretical transmission capacity of the band by as much as two thirds. 

There is also a cross-border effect as the type of use of the UHF band in one Member State 
has an impact on the type of use that can be made by neighbours: e.g. if DTT is broadcast at 
high power levels throughout the band, it will significantly reduce the scope for neighbouring 
countries  to  make  use  the  spectrum  for  other  services.  This  would  be  particularly  acute  in 
smaller Member States or in Member States where a large proportion of the population lives 
within  reach  of  signal  transmissions  from  neighbouring  countries  including  third  countries 
(which create interference typically up to 100 kilometres from borders). 

The current cross-border coordination of the UHF band between Member Sates is achieved on 
the  basis  of  the  International  Telecommunications  Union  (ITU)  Radio  Regulations  and,  in 
particular,  the  Geneva  2006  Regional  Agreement  (GE-06)  ruling  the  coordination  of 
broadcasting frequencies. Some Member States anticipated the use of the UHF band also for 
other  services  than  broadcasting  and  obtained  at  the  last  World  Radio  Conference  (WRC) 
2007  the  possibility  to  allocate  a  part  of  the  band  (790-862  MHz)  band  for  mobile 
communications24.  However,  the  ITU  frequency  planning  remains  based  on  the  use  of  the 

23  
24  

Op. cit. COM(2007) 700. 
By undersigning footnote 5.316 of the ITU Radio Regulations, which allocates the band 790–862 MHz 
to the mobile service on a co-primary basis (except aeronautical mobile). 

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band for high power DTT and is therefore inadequate for the coordination of others services 
than broadcasting. 

In  the  absence  of  EU  regulations  dealing  with  the  470–862  MHz  band,  there  is  currently  a 
range  of  possible  technical  approaches  to  the  digital  dividend  in  order  to  cope  with  the 
interference issue. There is a risk that Member States would proceed to implement changes to 
the  conditions  of  use  of  the  spectrum  at  varying  paces  and  with  fundamentally  different 
objectives.  Some  Member  States  have  yet  to  develop  plans  for  the  digital  dividend  while 
others  have  specific  proposals  for  future  use.  Such  plans  range  from  continuing  to  use  the 
whole digital dividend for broadcast TV services, to allowing market forces to determine the 
future use of the spectrum. 

In conclusion, the digital dividend will produce much better effects if coordinated at EU-level 
despite the fact that some of the expected benefits from the digital dividend can be realised at 
national level alone. In particular, coordination will allow much more efficient technical co-
existence of networks supporting services other than existing broadcasting services.  

2.1.2. Lack of EU coordination will prevent Member States to allocate the digital dividend to 

its best uses 

The interference issue raised by the cross-border propagation of high-power DTT signals, and 
the resulting lack of coordinated clearance of part of the band, also impact on the ability of 
Member States and their Spectrum Management Authorities to discharge their duty under the 
Framework Directive. 

The EU regulatory framework specifies that Member States must manage spectrum in a way 
that fosters efficiency and innovation. Cross-border interference permitted under  the  current 
agreements,  however,  places  a  great  constraint  on  their  ability  to  do  so.  In  the  absence  of 
cross-border  interference,  the  optimal  allocation  may  be  very  different  from  what  is 
practically achievable under current circumstances. 

Consequently,  national  spectrum  management  authorities,  in  the  absence  of  a  consistent 
coordination mechanism to minimise the negative impact of interference in the EU, may be 
forced to conclude that the best use of the spectrum is still DTT, whereas if coordination was 
implemented  it  would  be  a  different  use.  This  creates  further  interdependence  between 
Member States and their neighbours. 

2.1.3. Lack  of  economies  of  scale  and  pan-European  coverage  of  services  may  hurt  the 

European economy and deter investments 

Virtually  all  of  the  expected  potential  uses  of  the  digital  dividend  (whether  these  are  new 
broadcasting  or  wireless  broadband  services)  rely  on  the  possibility  to  achieve  critical  mass 
and  economies  of  scale.  It  is  also  essential  to  underline  the  importance  of  a  coordinated 
approach to ensuring that these economies of scale throughout the EU are maximised, and that 
internal market objectives are achieved as much as possible by enabling interoperability and 
roaming  between  Member  States.  Both  of  these  can  best  be  furthered  through  a  common 
frequency  allocation  and  common  adoption  of  technical  conditions.  Typically,  it  is 
significantly  more  cost-efficient  for  equipment  manufacturers  to  produce  network  and 
consumer  equipment  to  a  single  set  of  technical  conditions,  than  to  have  multiple,  smaller-
scale  production  lines  for  different  markets.  For  example,  the  Commission  study  found  that 
manufacturers of mobile communications equipment expect a potential market of at least 100 
million  inhabitants  before  investing  in  new  production  lines  for  the  4th  generation  mobile 

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communications equipment. The reduced development times and greater certainty associated 
with  harmonised  choice  of  technology  and  frequencies  also  enables  manufacturers  to  bring 
equipment to market faster. 

In the stakeholders' hearings and in the public consultation, it was made clear, by equipment 
suppliers and telecommunications operators in particular, that EU coordination would play a 
major role to create confidence and accelerate investments in new infrastructures. 

2.1.4. Optimising the digital dividend in the medium term (spectrum below 790 MHz) 

There is now a general consensus that the 790-862 MHz sub-band should be made available 
for  the  deployment  of  wireless  broadband.  However,  the  effects  of  further  measures  in  the 
other  sub-bands  (spectrum  below  790  MHz)  need  to  be  explored  more  carefully  in  the 
medium to long-term as they offer a potential for additional capacity to be progressively made 
available  (independently  from  the  precise  use  that  could  be  made  of  it  in  the  future).  In 
particular, in the majority of Member States, DTT networks can be upgraded, including with 
existing technology, to become more spectrally efficient in the future. These upgrades vary in 
efficiency gains, the investment required to implement them, and the degree to which they are 
governed by well-established standards.  

Upgrading is possible in three ways: 

•  Compression  technology:  Currently,  most  Member  States  use  the  so-called  MPEG-2 
standard  for  DTT  signal  compression,  but  a  move  to  a  more  advanced  compression 
technology such as the widely-available MPEG-4 H.264/AVC (MPEG-4) standard would 
almost double the capacity, and value, of the digital dividend. 

•  Modulation and radio technology: DTT in the EU uses the Digital Video Broadcasting – 
Terrestrial  (DVB-T)  standard.  Improvements  to  the  techniques  used  by  DVB-T  are 
brought by the DVB-T2 standard.25 This standard is likely to enable a 30% increase in the 
capacity of a DTT multiplex compared to DVB-T. 

•  Network topology: Most DTT networks in the EU are mostly multi-frequency networks 
(MFNs).26  This  means  that  a  given  multiplex  (a  set  of  television  programming  channels 
broadcast in a given geographic location over an 8MHz frequency channel) uses different 
frequencies in different geographic locations to avoid self-interference. In the future, the 
increased use of single-frequency networks (SFNs), where all frequency channels are used 
at all sites, could substantially reduce the need for spectrum (but limit the possibility for 
regional programming). 

It is therefore possible for DTT networks to benefit from significant efficiency improvements, 
should demand for large numbers of television programming channels and/or high-definition 
programming warrant it.27 In the short term however, the most realistic, and most beneficial, 
upgrade option is for broadcasters using MPEG-2 to move to a better compression technology 
such  as  MPEG-4.  One  very  significant  issue,  however,  is  that  existing  MPEG-2  decoders 
would  not  be  able  to  decode  MPEG-4  transmissions.  MPEG-4  compatible  terminals,  which 

25  
26  
27  

See http://www.dvb.org/technology/fact_sheets/DVB-T2-Fact-Sheet.0409.pdf. 
Or regional single frequency networks (SFNs). 
High-definition  programming  channels  typically  require  twice  the  spectrum  resources  as  a  standard-
definition channel. 

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must  be  backward  compatible  with  MPEG-2,  are  also  significantly  more  expensive  than 
MPEG-2-only decoders, and this raises important considerations of consumer policy and cost. 

A  further  potential  obstacle  is  that  due  to  the  absence  of  minimum  interference  rejection 
standards in the current generation of DTT receivers, a significant proportion of these would 
be  impaired  by  uses  other  than  DTT  in  the  470–862  MHz  band.  In  practice,  where  these 
receivers  are  in  use,  the  signal  from  the  DTT  transmitter  would  conflict  with  the  signal 
received from, for instance, wireless broadband transmitters in the adjacent frequency channel 
or in channels located nine channels apart (known as n+9). 

In  conclusion,  enabling  existing  uses  such  as  DTT  to  become  more  spectrally  efficient  can 
lead to the possible extension of the digital dividend (spectrum below 790 MHz) in the future. 
If it is possible to use less spectrum for a given number of television programming channels, 
more DTT programming channels can be offered or new uses can be introduced into the band. 
The consultations showed that EU action could play a significant role to create the necessary 
momentum to address the above issues. 

2.1.5. Risk of disruption of important services already making use of part of the UHF where 

the digital dividend spectrum is located 

The  main  category  of  legacy  services  in  the  UHF  spectrum,  and  therefore  potentially 
interfering  with  the  use  of  the  digital  dividend,  is  commonly  referred  to  as  wireless 
microphones and services ancillary to broadcasting and programme making 28. 

Wireless  microphone  and  similar  ancillary  services  can  use  these  particular  frequencies 
(known as ‘interleaved spectrum’ or ‘white spaces’). They are essential to a number of sectors 
of the economy, particularly broadcasting, content production and events organising (such as 
concerts and public speaking for instance). Any changes to the band should carefully consider 
the ability of these users to offer continuity of service. 

2.1.6. A  sizeable  part  of  the  benefits  could  be  foreclosed  in  absence  of  proper  coordination 

with third countries  

As mentioned in 2.1.1, broadcasting transmissions can travel across border up to typically 100 
kilometres and can prevent other services than broadcasting to operate in these geographical 
areas. In turn, this may prevent nation-wide services to be deployed since all regions can not 
be  covered.  There  is  therefore  a  clear  advantage,  and  sometimes  a  necessity,  to  coordinate 
with third countries.  

The current ITU rules foresee that, under the GE-06 agreement, uses other than DTT are not 
guaranteed protection from high-power DTT transmissions from neighbouring countries. The 
consultations  also  revealed  that  early  bi-lateral  negotiations  between  a  Member  States  and 
third countries were often disappointing. 

In  this  context,  a  common  EU  approach  would  allow  to  establish  an  EU-wide  platform  for 
negotiation  with  third  countries.  This  was  generally  very  welcomed  by  stakeholders  and 
Member  States  concerned.  One  additional  issue  concern  the  incompatibility  of  existing 

28  

In technical jargon, this is part of SAB/SAP respectively for Services Ancillary to Broadcasting (SAB) 
which  support  the  activities  of  broadcast  service  companies  carried  out  in  the  production  of  their 
programme material and Services Ancillary to Programme making (SAP) which support the activities 
carried  out  in  the  making  of  "programmes",  such  as  film  making,  advertisements,  corporate  videos, 
concerts, theatre and similar activities not initially meant for broadcasting to general public. 

EN 

18 

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Aeronautical  Radio  Navigation  Systems  operating  in  the  Russian  Federation,  Belarus  and 
Ukraine  with  future  wireless  broadband  systems  that  are  envisaged  in  the  Member  States 
bordering these third countries. There is a strong support to ensure this issue can be dealt with 
the interested countries at EU level.  

2.2.  Likely outcome in the absence of action at the EU level 

A number of Member States have clearly stated their intention to designate, clear, and award 
the  790–862  MHz  sub-band  either  directly  for,  or  in  a  format  that  will  enable,  electronic 
communications services  (e.g. wireless broadband). The situation is evolving rapidly, but at 
the  time  of  writing  these  Member  States  included:  Denmark,29  Finland,30  France,31 
Germany,32  the  Netherlands,33  Spain,34  Sweden35  and  the  UK.36  Other  Member  States  have 
also  indicated  that  they  were  contemplating  creating  such  a  sub-band  after  analogue  is 
switched  off  both  domestically  and  in  neighbouring  countries  (this  includes  some  countries 
outside  the  EU  and  therefore  not  subject  to  the  Commission’s  recommendation  to  complete 
digital switchover by early 2012). 

In the absence of action at the EU level to coordinate the adoption of the sub-band, it is likely 
that  this  momentum  will  nevertheless  continue,  and  that  those  Member  States  bordered  by 
countries where the sub-band has been identified, but currently undecided about the sub-band 
will  also  adopt  it.  Conversely,  Member  States  that  are  surrounded  by  countries  that  are  not 
likely  to  adopt  the  sub-band  would  be  more  likely  to  retain  their  GE-06  plans.  This 
particularly affects Member States at the eastern and south-eastern borders of the EU, where 
the  decisions  of  large  neighbouring  non-EU  countries,  such  as  Belarus,  Russia,  Turkey  and 
the Ukraine, will have a significant impact. 

This may result in two categories of Member States: 

•  Those  that  will  coordinate  the  use  of  the  790–862  MHz  sub-band  according  to  the 
technical parameters that are set (i.e. for low-power services such as wireless broadband). 
For the purposes of this impact assessment and the related economic modelling, and based 
on information provided by Member States, these Member States are assumed to be, in the 
end: Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, 
Italy, Luxembourg, the Netherlands, Portugal, Slovenia, Spain, Sweden and the UK. 

•  Those  that  will  retain  high-power  DTT  in  the  whole  band.  For  the  purposes  of  the 
economic modelling these Member States are assumed to be: Bulgaria, Cyprus, Estonia, 
Greece, Hungary, Latvia, Lithuania, Malta, Poland, Romania, and Slovakia. The acuteness 
of the issue would be even more serious if Italy would have been included in this list37. 

29  
30  
31  
32  

http://vtu.dk/nyheder/pressemeddelelser/2009/frekvenser-til-fremtidens-mobile-bredbaand/. 
http://www.lvm.fi/web/fi/puheet/puhe/view/904813. 
http://francenumerique2012.fr/html/france_2012.html. 
http://www.bundesrat.de/cln_090/nn_8538/DE/presse/pm/2009/117-2009.html?__nnn=true and 
http://www.bundesrat.de/cln_090/SharedDocs/Drucksachen/2009/0201-300/204-
09,templateId=raw,property=publicationFile.pdf/204-09.pdf. 

33http://www.ez.nl/Onderwerpen/Betrouwbare_telecom/Frequentiebeleid/Consultaties_en_informatieve_papers/
Consultatie_beleidsvoornemen_inzake_de_verdeling_van_het_resterende_Digitale_Dividend_in_de_U
HF_frequentieband/Consultation_document_Digital_Dividend_in_the_UHF_frequency_band_470_862
_MHz. 
http://www.mityc.es/es-ES/GabinetePrensa/NotasPrensa/Paginas/dividendodigital020609.aspx. 
http://www.sweden.gov.se/sb/d/9760/a/94782. 
http://www.ofcom.org.uk/consult/condocs/800mhz/statement/. 
There is still great uncertainty on the direction to be adopted in Italy at this moment. 

34  
35  
36  
37  

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As  shown  in  Figure  2.1  below,  assuming  cross-border  propagation  of  up  to  100km  in 
distance, large parts of the Czech Republic, Austria and Slovenia would be unable to benefit 
from new services deployed in the sub-band. This illustrates the potentially negative impact of 
one Member State’s decision on another. 

100km radius of interference from countries with high power DTT 
100km radius of interference from countries with high power DTT 

Areas affected by high pow er DTT interference
Areas affected by high pow er DTT interference

Countries that are too far from EU27 to cause interference
Countries that are too far from EU27 to cause interference

Sweden
Sweden

Norway
Norway

Denmark
Denmark

United Kingdom
United Kingdom

Ireland
Ireland

Netherlands
Netherlands

Poland
Poland

Finland
Finland

Estonia
Estonia

Latvia
Latvia

Lithuania
Lithuania

Belarus
Belarus

Russia
Russia

Germany
Germany

Belgium
Belgium

France
France

Switzerland
Switzerland

Ukraine
Ukraine

Czech Republic
Czech Republic

Slovakia
Slovakia

Austria
Austria

Hungary
Hungary

Slovenia
Slovenia

Croatia
Croatia

Romania
Romania

Italy
Italy

Bulgaria
Bulgaria

Albania
Albania

Portugal
Portugal

Spain
Spain

Greece
Greece

Turkey
Turkey

Malta
Malta

Cyprus
Cyprus

Morocco
Morocco

Figure: 

Assumption of regions in which harmful interference is caused by Member States using the 790–862MHz sub-band 

for high-power DTT [Source: Analysys Mason, DotEcon, Hogan & Hartson, 2009] 

For the purpose of the economic analysis performed in the context of the Commission study, a 
sensitivity analysis was conducted in which between 5 and 13 Member States would not adopt 
the  790–862  MHz  sub-band  without  intervention  at  EU  level.  Member  States  in  which  the 
sub-band  is  not  adopted  will  remain  outside  any  single  market  that  may  emerge,  limiting 
economies of scale in the EU as well as other benefits, such as pan-EU roaming. 

In addition, there is a high probability that there will be some differences between technical 
conditions for the use of spectrum imposed by the Member Sates having adopted the 790-862 
MHz  sub-band  for  electronic  communications  services.  This  would  result  in  a  risk  of 

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fragmentation  of  the  internal  market  as  the  equipment  operating  in  this  band  could  not  be 
completely technically compatible in all cases. 

Finally, the absence of EU action would allow current uncertainty to persist until all Member 
States have formally adopted an approach to the sub-band. The economic analysis conducted 
by  the  Commission  and  the  consortium  (see  final  Commission  study  report38),  which  is 
referred  to  throughout  this  impact  assessment  shows  that  this  is  likely  to  result  in  very 
substantial social and economic value remaining unrealised (for details, see more particularly 
sections 13.2 and 13.3 of the Commission study). 

2.3.  The advantages of EU intervention  

Section 2.1 above outlines that a major issue for current use of the digital dividend spectrum 
is the cross-border interference, where DTT is used throughout the 470–862 MHz band. In the 
‘no  action’  scenarios  described  in  the  previous  section,  this  problem  would  continue  for  a 
large  proportion  of  Member  States,  which  would  in  turn  limit  other  benefits  such  as 
economies of scale, interoperability and roaming throughout the EU.  

This illustrates that if Member States act alone, an optimal outcome across the EU may not 
emerge. This is because if neighbouring countries maintain high-power DTT transmission in 
the  790–862  MHz  sub-band,  the  value  they  can  realise  from  adopting  that  sub-band  for 
alternative uses may be reduced. Through such an effect, actions by Member States alone are 
likely to significantly damage the interests of other Member States. 

Intervention  at  the  EU  level  is  therefore  justified  on  several  counts  as  it  can  generate 
significant benefits compared to uncoordinated action by individual Member States. The main 
areas for potential additional value for the EU are:  

•  Technical  efficiency  and  interoperability:  a  common  frequency  allocation  would  also 
create  greater  scope  for  roaming/interoperability  for  consumers.  The  cost-efficiency  and 
feasibility  of  providing  roaming  services,  particularly  for  wireless  broadband,  which 
enhances the value of the service to citizens, are greatly improved compared to a situation 
in which consumer equipment requires multi-band operation. In addition, EU-level action 
to  incentivise  or  secure  the  improved  efficiency  of  current  uses  of  the  spectrum  would 
help create value at the EU level. For instance encouraging the adoption of advanced DTT 
compression  technologies  may  help  release  digital  dividend  spectrum  for  other  valuable 
uses, such as improved broadcasting and/or wireless broadband. 

•  Economies  of  scale  and  innovation:  a  common  frequency  allocation  and  common 
adoption  of  technical  conditions  would  result  in  economies  of  scale  for  equipment 
manufacturing.  A  harmonised  choice  of  technology  and  frequencies  would  reduce 
development  times,  costs,  create  greater  certainty  and  enable  manufacturers  to  bring 
equipment to market faster. 

•  Securing investment and establishing international leadership: an early decision on a 
coordinated approach to the use of the digital dividend spectrum at the EU level is likely 
to  have  two  major  impacts.  Firstly,  it  will  provide  increased  certainty  to  investors  and 

38  

The full text, as well as the executive summary, of the Commission study "A European approach to the 
digital dividend" conducted by Analysys Mason, Dotecon and Hogan & Hartson is available on-line at: 
http://ec.europa.eu/information_society/policy/ecomm/radio_spectrum/activities/index_en.htm [pending 
activation]. 

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companies  over  the  future  availability  of  spectrum  for  uses  other  than  DTT.  This 
increased certainty is likely to foster substantial investment in research and development 
sooner than might otherwise have been the case. Secondly, it may influence neighbouring 
non-EU countries, increasing the potential benefits from adopting the sub-band. Benefits 
would  be  realised  principally  because  of  reduced  interference  from  neighbouring 
countries. If a common use of the band emerged beyond the EU’s borders because of this 
early leadership, economies of scale would also be enhanced. Both these impacts would 
benefit  the  EU  by  stimulating  economic  activity  and  providing  opportunities  for 
innovation within the EU which could be exported. 

3. 

SPECIFIC OBJECTIVES PURSUED BY THIS INITIATIVE 

The  first  specific  objective  is  to  maximise  benefits  from  the  digital  dividend  and  to  act 
sufficiently rapidly to avoid fragmented national legacy situations, which would hamper the 
establishment of a single market with regards to future services and equipment. 

Secondly,  this  initiative  seeks  to  ensure  sufficient  consistency  between  national  approaches 
and  foster  convergence  over  time,  with  a  view  of  supporting  innovation  and  long-term 
benefits for consumers, strengthening the single market, and increasing EU competitiveness. 
These  initiatives  aim  to  further  increase  the  availability  of  digital  dividend  spectrum  by 
adopting common approaches to various technical and deployment issues, and providing more 
predictable and stable spectrum planning for investors. 

Thirdly,  the  Commission's  action  should  aim  at  facilitating  the  early  efforts  by  several 
Member States to open up the 800 MHz band to new services such as wireless broadband and 
help  avoiding  unnecessary  fragmentation  (i.e.  different  Member  States  imposing  different 
levels of technical or functional restrictions). 

4. 

POLICY OPTIONS 

The proposals under development include four main areas where direct actions are considered 
in order to achieve: 

-  Timely analogue switch-off of analogue terrestrial TV in the EU by 1 January 2012, as 

a pre-requisite to establish a digital dividend; 

-  Optimal use of spectrum in the UHF band (470-862 MHz); 

-  Avoiding un-coordinated action by Member States in the 790-862 MHz sub-band; 

-  Technical harmonisation of the 790-862 MHz sub-band. 

The four proposals involving direct action result from an analysis of a range of options, which 
are summarised below.  

4.1.  Policy options regarding the timely switch-off of analogue TV 

In its Communication on the switchover to digital broadcasting in 2005, the Commission set a 
target EU date for analogue switch-off of beginning 2012. This time frame has been further 
endorsed  by  the  European  Parliament  and  Council  in  their  response  to  this  Communication 
but this does not commit Member States legally. The Council has however referred to end of 
2012 in its conclusions on this matter. 

EN 

22 

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A  number  of  Member  States  have  now  already  switched  off39  or  have  announced  plans  to 
switch off analogue signals by 2012 (though not necessarily by the beginning of 2012) while 
at the same time several Member States have not yet adopted final plans. There is even the 
possibility that at least one large Member State delays analogue switch-off up to July 2013. 

In this context, the situation of Member States located at the Eastern and Southern borders of 
the  EU  may  remain  partially  constrained  in  what  spectrum  they  can  use  because  of  cross-
border interference from neighbouring non-EU countries which will not have yet switched off 
analogue  television  as  the  end  date  specified  at  international  level  (during  GE-06)  for  the 
protection of analogue broadcasting is 2015. 

4.1.1  No further EU action 

This option would result in each Member State completing analogue switch-off according to 
its own timetable. On the basis of information available at the time of writing, it is expected 
that  up  to  11  Member  States  may  switch  off  analogue  signals  after  1  January  2012,  which 
poses a serious risk to efforts to exploit the digital dividend for economic recovery, although 
at least ten of these Member States are expected to complete switch-off by the end of 201240. 

4.1.2.  Recommendation that Member States take all necessary  steps to switch-off analogue 

signals by 1 January 2012  

This policy option will seek to ensure that there is no residual  analogue transmission in  the 
470–862 MHz band by the start of 2012. This will help securing a critical mass towards a co-
ordinated  EU  approach  to  the  digital  dividend  and  enable  most  Member  States  to  take 
advantage  of  the  spectrum  that  will  be  freed  by  the  stopping  of  analogue  terrestrial 
transmissions, while creating greater certainty for industry. 

4.1.3  Mandating analogue switch-off by 1 January 2012 (a Community legal measure) 

This option would ensure, by applying a legally binding Community measure, that analogue 
switch-off is completed across the EU by 1 January 2012. Such a legislative measure would 
carry  significant  political  weight,  as  well  as  ensuring  that  the  way  was  open  for  a  fully  co-
ordinated  approach  to  the  digital  dividend.  However,  it  may  cause  difficulties  for  those 
Member  States  that  have  not  been  able  to  prepare  sufficiently  for  the  implementation 
deadline,  and  would  also  create  difficulties  of  co-ordination  with  third  countries,  where  the 
shift  to  new  transmission  configurations  has  yet  to  be  co-ordinated  with  neighbouring 
countries to avoid interference with existing broadcasting services. 

4.2.  Policy options regarding the achievement of the optimal use of spectrum in the 

UHF band (470-862 MHz) 

There are a number of policies and instruments that could usefully be employed in order to 
obtain  an  optimal  use  of  the  digital  dividend  spectrum.  Apart  from  immediate  action  in  the 
790-862 MHz sub-band (dealt with under sections 4.3 and 4.4 below), the effects of further 
measures  in  the  other  sub-bands  (spectrum  below  790  MHz)  need  to  be  explored  in  more 

39  

40  

Member  States  that  have  already  switched  off  analogue  terrestrial  TV  (and  are  therefore  in  a  fully 
digital  format):  Germany,  Finland,  Luxembourg,  Sweden,  the  Netherlands.  Belgium  has  partially 
switched (Flanders) and major areas in Austria. 
During  the  consultation  process,  Poland  informed  the  Commission  that  it  now  plans  to  switch  off 
analogue terrestrial TV by July 2013. 

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23 

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detail  in  the  medium  to  long-term.  These  involve  measures  and  orientations  to  ensure  an 
efficient use of spectrum freed by analogue switch-off to be set out by the Commission and, 
ultimately, to serve as input to the Radio Spectrum Policy Programme to be proposed to 
the EP and Council after adoption of the new telecoms package.  

4.2.1  No further EU action on coordination activities 

Under this option, the EU would not adopt any measure, formal or informal, to increase the 
optimal  use  of  spectrum  below  790  MHz.  There  would  be  no  specific  action  such  as 
promoting  interference  resistant  DTT  receivers  or  better  compression  and  transmission 
technologies beyond the guidelines currently in place. This would leave the issues raised in 
Section 2.1.4, such as potential interference to DTT receivers from other uses and the need for 
broadcasters  to  migrate  transmission  to  more  efficient  technologies  without  prejudice  to 
consumers, to the responsibility of Member States.  

4.2.2  Proposing further coordination activities in sub-bands below 790 MHz 

The Commission could issue a Communication outlining the benefits of further coordination 
action which could also feed into the proposals for a Radio Spectrum Policy Programme. The 
following issues could be covered by such an orientation: 

(a)  Coordination  for  the  possible  migration  of  DTT  networks  to  more  advanced  transmission 
technologies (e.g. MPEG-4, DVB-T2) and interference resistant DTT receivers 

A recommended timeline for the migration to MPEG-4 and/or DVB-T2 technologies could be 
produced  at  the  EU  level.  While  this  would  not  be  obligatory,  it  could  gain  momentum, 
leading to an accelerated adoption of these technologies.  

(b) The possibility of implementing national Single Frequency Networks 

A recommended timeline for wider deployment of national SFNs could increase the scope for 
a coordinated re-planning of the 470–862 MHz band across several Member States with the 
resulting benefits and costs.  

(c)  The  use  of  more  frequency-agile  wireless  broadband  networks  (e.g.  variable  duplex 
technology) 

The Commission could encourage manufacturers to invest in and adopt more frequency-agile 
technologies, such as FDD systems that could operate with a variable duplex.  

(d) Cooperate at EU level over examining the future use of interleaved spectrum  

Wireless  microphones  rely  on  the  availability  of  interleaved  spectrum  (spectrum  shared  by 
DTT on a geographic basis);  a number  of  Member States dedicate frequencies nationally to 
this  use.  In  the  short-term  the  availability  of  interleaved  spectrum  will  decrease  due  to  the 
introduction of low/medium-power use into the 790–862 MHz sub-band. 

Member States will therefore need to relocate wireless microphone use in order to adopt the 
sub-band. Benefits from economies of scale, as well as roaming, could potentially be created 
in future systems if the frequency location of dedicated channels were coordinated across the 
EU. In this option, guidelines would be produced regarding which frequencies Member States 
should dedicate. 

In the medium to long term, the availability of sufficient spectrum in the 470–862 MHz band 
for wireless microphones and assimilated is less clear, and it would therefore be warranted to 

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consider  measures  to  encourage  users  to  either  migrate  to  more  spectrally  efficient  digital 
equipment or to migrate to spectrum outside the 470–862 MHz band, in a coordinated fashion 
across the EU. 

Under this option, Member States would be also invited to cooperate with the Commission in 
examining  the  technical  and  regulatory  conditions  for  using  interleaved  spectrum  (white 
spaces) for applications that use cognitive technologies. Cognitive technologies will have the 
ability to detect dynamically whether frequencies are being used in a particular location, and 
if  not,  transmit  over  those  frequencies.  The  introduction  of  cognitive  technologies  will  be 
discussed at the next World Radiocommunication Conference (WRC-12) under agenda item 
1.19. Decisions need to be made regarding which technical approaches may be permitted, as 
well  as  the  technical  specification  required  of  the  chosen  approach.  This  option  may 
ultimately  result  in  a  CEPT/ECC  Common  Position  on  the  technical  parameters  and 
regulatory conditions under which cognitive technologies should be introduced. 

(e) Increased involvement of EU-level institutions in cross-border spectrum coordination 

The  adoption  of  the  790–862  MHz  sub-band  across  Europe  may  require  significant  re-
planning of DTT between Member States. As discussed above, there may be doubts about the 
ability  of  Member  States  to  make  the  necessary  agreements,  particularly  with  neighbouring 
non-EU  countries,  within  desirable  timescales  without  some  EU-level  coordination.  This 
option  would  see  EU-level  institutions  take  a  more  active  role  in  organising  or  facilitating 
those negotiations. 

The strategic relevance and implications of these proposals should be first discussed with the 
European  Parliament  and  Council  as  part  of  the  future  Radio  Spectrum  Policy  Programme 
before taking more concrete steps towards their implementation (including the detailed impact 
assessment mentioned above). 

4.2.3  Mandatory requirements to improve spectrum efficiency linked to the digital dividend 

In  order  to  ensure  a  co-ordinated  approach,  the  Commission  could  propose  a  number  of 
individual  mandatory  measures  regarding  the  efficient  use  of  the  digital  dividend  spectrum 
and  which  could  possibly  be  considered  in  the  context  of  a  future  Radio  Spectrum  Policy 
Programme: 

a)  Accompanying  measure  for  the  migration  of  DTT  networks  to  more  advanced  transmission 
technologies (e.g. MPEG-4, DVB-T2) and interference resistant DTT receivers 

A  legally  binding  Community  measure  could  be  to  specify  minimum  performance 
characteristics  for  DTT  transmission  technologies.  These  could  be  the  bit  rate  of  each 
multiplex  (set  to  be  equivalent  to  DVB-T2)  or  parameters  that  define  the  performance 
characteristics  of  compression  technologies  (perhaps  equivalent  to  H.264/MPEG-4  AVC  as 
this  is  a  mature  standard  and  the  variant  that  appears  to  be  gaining  momentum  across  the 
industry).  As  an  intermediate  measure,  the  minimum  performance  level  could  be  imposed 
only on DTT receivers as a pre-requisite to facilitate the upgrading of the networks at a later 
stage. 

A legally binding Community measure could also specify minimum interference rejection 
standards  for  DTT  receivers  which  would  include  detailed  specifications  for  the  minimum 

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interference tolerance/rejection performance of the receivers, including the rejection of signals 
received in the adjacent channel and image channel (n+9).  

A  legally  binding  Community  measure  could  also  require  that  all  Member  States  adopt 
transmission technologies that meet technology-neutral specifications.  

b) Implementation of national Single Frequency Networks  

Under  this  option,  Member  States  would  be  required  to  adopt  the  use  of  national  Single 
Frequency  Networks  (SFNs)  within  a  specific  timeline  by  applying  a  legally  binding 
Community measure. This could either be for all DTT multiplexes or (more realistically) for a 
subset  of  multiplexes,  allowing  the  remaining  multiplexes  to  continue  to  be  deployed  using 
multiple frequency networks (MFNs) in order to provide regional content.  

c) Cooperate at EU level to examine the future use of interleaved spectrum 

Under this option, Member States would be required to provide information on a regular basis 
to a central EU database regarding the availability and use of the so-called "white spaces" or 
interleaved  spectrum,  to  provide  a  mapping  for  providers  of  equipment  and  services  that 
may  wish  to  exploit  the  internal  market  potential  for  operating  between  existing  broadcast 
frequencies. 

4.3.  Policy options regarding the coordination of Member State action to ensure a 

coherent approach for the 790-862 MHz sub-band  

The  EU  has  so  far  facilitated  the  public  debate  on  the  digital  dividend  through  a  series  of 
Communications  and  CEPT  mandates,  but  has  not  directly  intervened  to  recommend  or 
require that Member States follow any particular approach to the band. 

4.3.1.  No further EU action 

This option would result in each Member State being able to adopt regulatory measures at the 
national level including moving new high-power services into the sub-band.  

4.3.2.  Recommendation that Member States follow a co-ordinated approach in the 790-862 

MHz sub-band  

This  policy  option  will  ensure  that  Member  States  refrain  from  any  regulatory  action 
regarding  the  use  of  the  790-862  MHz  sub-band  that  would  contradict  or  jeopardise  the 
application of the technical harmonisation measure which is planned at EU level, for example 
the  designation  of  new  (not  yet  planned)  digital  broadcasting  services  in  the  790-862  MHz 
sub-band  that  would  undermine  the  internal  market  and  create  problems  for  neighbouring 
Member States seeking to roll-out wireless broadband services in the sub-band. Furthermore, 
action at the EU level will be consistent and will ensure that all Member States can reap the 
benefits of the digital dividen. 

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4.4.  Policy options regarding the technical harmonisation of the 790-862 MHz sub-

band 

4.4.1.  Guidelines for the harmonisation (non mandatory) of the 790–862 MHz sub-band 

This policy option would see the EU limiting its action to facilitating the harmonisation of the 
790–862  MHz  sub-band,  without  any  obligatory  action.  This  could  include,  for  instance,  a 
role in centralising and disseminating information on the management of the sub-band in all 
Member States, by encouraging or obliging Member States to share their plans with sufficient 
notice. Under this policy option, the core action at EU level would consist of the preparation 
of non-obligatory guidelines for the technical harmonisation of the sub-band. 

4.4.2.  Commission  Decision  setting  the  technical  parameters  of  the  790–862  MHz  sub-

band  

Under  this  option,  Member  States  would  be  required  to  make  the  790–862  MHz  sub-band 
available  for  electronic  communications.  This  option  introduces  a  binding  requirement  only 
for  Member  States  that  chose  to  designate  the  sub-band  for  any  services  other  than 
broadcasting  (i.e.  when  a  Member  State  changes  the  current  allocation  for  broadcasting 
services), and could therefore prevent the introduction of new services that do not correspond 
to  the  harmonised  technical  parameters.  It  would  not,  however,  guarantee  that  the  sub-band 
will effectively be available across the EU by a certain date (cf. 4.1.1. above). Awarding of 
the  band  could  be  conducted  on  a  technology  and  service-neutral  basis41  with  common 
technological conditions and a common band plan. 

4.4.3.  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 

Under this option the Commission  would introduce a  harmonisation measure with the same 
technical parameters  as that under 4.4.2, but which would also set a binding date for Member 
States  to  clear  the  790-862  MHz  sub-band  of  other  services,  notably  broadcasting  that  uses 
high power transmitters that would not be compatible with the Decision.  

41  

EN 

Technology  neutrality  means  no  restriction  to  one  or  more  technologies  such  as  GSM,  LTE,  UMTS, 
WiMAX, but applying technological conditions such as power limit, duplex spacing, channel width.  

27 

  EN 

 
                                                 
5. 

ASSESSMENT OF IMPACTS 

5.1.  

Impact of options regarding the timely analogue switch-off  

The  information  currently  available  suggests  that  analogue  switch-off  will  take  place  at 
varying times across the EU, despite the EU target date of beginning of 2012. 

•  Five  (5)  Member  States  have  already  switched  off  analogue  transmissions:  Finland, 
Germany,  Luxemburg,  the  Netherlands  and  Sweden.  In  addition,  large  regions  have 
already switched-off in Belgium (Flanders) and Austria. 

•  A further eleven (11) member States have official plans to complete analogue switch-off 
by  the  end  of  2011:  Austria,  Belgium,  Cyprus,  Denmark,  Estonia,  France,  Greece, 
Hungary, Latvia, Malta and Spain. 

•  Another nine (9) member States have plans to switch off during 2012: Bulgaria, the Czech 

Republic, Italy, Lithuania, Portugal, Romania, Slovakia, Slovenia and the UK. 

• 

Ireland has announced intentions to comply with the Commission’s recommendation and 
Poland's latest objective is to switch-off in July 2013 but no firm plans are yet in place in 
these two Member States. 

5.1.1.  No further EU action 

Without  EU  intervention,  it  is  likely  that  11  Member  States  will  still  retain  some  analogue 
broadcasting by 1 January 2012. Analogue switch-off in those Member States may take place 
throughout 2012, but in some cases may be delayed beyond 2012. Two Member States seem 
unlikely  to  switch-off  any  time  before  the  end  of  2012,  and  this  would  affect  neighbouring 
Member  States  since  parts  of  their  spectrum  would  be  unusable  for  low  power  use.  The 
affected Member States would themselves loose the benefits of new services. 

5.1.2.  Recommendation that Member States take all necessary steps to switch-off analogue 

signals by 1 January 2012  

Recommending  that  Member  States  ensure  that  digital  switch-off  is  accelerated  in  order  to 
ensure  that  the  analogue  switch-off  date  of  1  January  2012  is  adhered  to,  would  have  a 
number of benefits: 

•  There  would  be  significantly  increased  pressure  on  Member  States  to  comply  with  the 
2012 deadline. Those Member States that have announced plans for analogue switch-off to 
take  place  before  2012  may  miss  their  initial,  self-imposed  deadline  because  of 
implementation issues, and a recommendation to accelerate switch off by 1 January 2012 
is likely to focus the efforts of all stakeholders. 

•  Another benefit is that there would be more certainty that digital dividend spectrum would 
be available from 1 January 2012 in most Member States, hence more certainty for market 
players and all interested parties. 

•  A  widely  applied  analogue  switch-off  date  of  1  January  2012  would  also  increase  the 
probability that some Member States will award the 790–862MHz sub-band earlier than 
would  otherwise  have  been  the  case.  The  Commission  study  by  the  consortium  of 
consulting  firms  estimated  that,  even  on  the  basis  of  the  most  conservative  scenario 

EN 

28 

  EN 

(modest demand for broadband services), avoiding a one-year delay in the availability of 
the  sub-band  790-862  MHz  across  the  EU  could  generate  a  collective benefit  of  several 
billion  Euros  in  net  present  value  (minimum  EUR  1  billion  in  consumer  and  supplier 
surplus only, accumulated over 15 years). This figure is based on the cumulative effect of 
advancing the estimated overall economic benefits of the digital dividend by one year over 
a period of 15 years (social benefits are not included but are assumed to be positive as the 
social advantages of access to broadband services are clearly established42). For the sake 
of comparison, the UK regulator (Ofcom) has estimated the impact of a one year delay to 
the availability of  a  part of the  digital dividend (790-9862 MHz) to reduce the potential 
net benefits from GBP 100 million to GBP 400 million in the UK alone. 

There are social costs, in particular due to the moving forward of the purchase of digital-to-
analogue  converters  by  consumers  who  will  continue  to  use  an  existing  analogue  TV.  This 
cost,  estimated  at  approximately  50  EUR  per  converter  per  analogue  TV  set  to  continue  to 
receive terrestrial TV via an antenna, is however low when compared to the aggregated total 
benefits  mentioned  above43.  The  experience  of  switch-off  in  the  five  Member  States  which 
have already done so, as well as in the USA, indicates that this social impact is limited and 
can be mitigated through specific subsidies targeted to disadvantaged groups. 

In  conclusion,  as  all  Member  States  are  planning  to  switch-over  to  digital  technology,  the 
timing of the switch-off does not influence significantly the overall costs of the transition. To 
some  extent,  earlier  investments  could  have  a  positive  effect  on  economic  recovery.  Some 
constituencies may face costs earlier than expected and this should be taken into account by 
authorities  but  the  overall  benefit  is  clearly  positive  as  illustrated  above.  The  distributional 
effect of these costs on disadvantaged populations can be compensated by state subsidies (the 
Commission has approved such state subsidies as long as the choice of converter solution is 
technology-neutral)44. 

5.1.3  Mandating analogue switch-off by 1 January 2012 (a Community legal measure) 

The impact of this option would be that there is no residual analogue transmission in the 470-
862  MHz  band  after  1  January  2012,  legally  enforced  by  a  Community  measure.  Member 
States who are unable to meet the analogue switch-off deadline of 1 January 2012 would tend 
to oppose the adoption of this Community measure citing major issues of public interest, as 
certain among them would be faced with the stark choice of significant and immediate extra 
switchover costs allied with the threat of cutting-off television viewers that could not be re-
equipped in advance of the switch-off date. 

42  

43  

44  

See for instance Plum Consulting, Restructuring Europe's economic and social progress: unleashing the 
potential  of  ICT  (January  2006);  Ovum,  Bridging  the  Digital  divide  –  less  technology,  more 
understanding (23 March 2009). 
As  a  conservative  estimate,  socially-weak  groups  of  populations  representing  up  to  10%  of  the 
population could be affected in the potentially 11 concerned Member States (among those, there would 
be  up  to  2  or  3  million  households,  relying  significantly  on  terrestrial  reception,  which  could  not  be 
eligible  to  subsidies,  or  for  which  Member  States  would  not  have  specific  compensation  measures  in 
place).  In  this  extreme  case,  the  total  expense  to  be  moved  forward  could  be  EUR  150  million.  The 
actual cost of the Community measure would actually be the interests on this amount accrued during 1 
year on average, or approximately EUR 10 million. Only the advancement of the expense is taken into 
account since the switchover to DTT is an agreed policy, hence unavoidable, and already endorsed by 
all 27 Member States in 2005. 
See Commission Decision 2006/513/EC of 9 November 2005 on State aid C 25/2004: Financing of the 
introduction of DVB-T in Berlin-Brandenburg, Germany (OJ L 200, 22.7.2006). 

EN 

29 

  EN 

                                                 
Delaying  the  analogue  switch-off  in  some  Member  States  would  have  the  following  direct 
impacts: 

- 

- 

the 790-862 MHz sub-band cannot be adopted in those Member States; 

the  continued  high-power  analogue  transmissions  in  the  790–862  MHz  sub-band 
would restrict the ability of neighbouring Member States to use the sub-band for uses 
other than high-power DTT (issue of cross-border coordination). 

The social impact and impact on individual Member States would be similar as 5.1.2. 

5.2. 

Impact of options regarding the achievement of the optimal use of spectrum in 
the UHF band (470-862MHz)  

The impact analysis in this section examines which other actions could be taken in order to 
facilitate  freeing-up  of  additional  spectrum  capacity,  principally  but  not  exclusively,  below 
790MHz45 thereby enhancing the digital dividend. This additional capacity could be used to 
allow  satisfying 
for  more  broadcasting  services,  more  electronic 
communications  services,  or  both.  The  impact  of  these  additional  coordination  possibilities 
have not been fully assessed in term of quantitative impact as they are only at the stage of 
proposal for discussion at EU level. They will be subject to a further impact assessment 
when  precise  actions,  and  their  timing,  will  be  considered  as  part  of  a  possible  future 
Community action. The following provides however an estimate of their potential impact. 

later  demand 

5.2.1.  No further EU action on coordination activities 

Under  this  option,  there  would  be  no  EU-level  intervention  on  DTT  receivers  or  MPEG-
4/DVB-T2, beyond the obligations and guidelines already in force. The main benefit of this 
option  is  the  absence  of  compulsory  additional  costs  to  upgrade  receivers  or  transmission 
networks.  

5.2.2.  Further coordination activities in sub-bands below 790 MHz 

(a) Preparation  for  a  possible  coordinated  migration  of  DTT  networks  to  more  advanced 
transmission  technologies  (e.g.  MPEG-4,  DVB-T2)  and  ensuring  more  interference 
resistant DTT receivers  

This could potentially result in large efficiency gains, illustrated for the DTT platform in the 
figure below. 

45  

This  assumes  that  the  proposed  policy  option  to  require  that  Member  States  make  available  the  790–
862MHz sub-band is first pursued (see 5.4. below). 

EN 

30 

  EN 

                                                 
Type of improvement 

Specific improvement 

Gains compared to legacy situation (number of TV 

programming channels) 

Compression technology 

MPEG-4 or better 
(instead of MPEG-2) 

Up to 100% (twice as many TV programming 
channels) 

Transmission standard 

Network topology 

DVB-T2 or better 
(instead of DVB-T) 

National SFN 
(instead of MFN) 

At least 30% 

Up to 300% (using two frequency channels per 
multiplex rather than the typical six). The benefits 
depend however strongly on the type of SFN and on 
the topology of the Member State 

Figure 5.1: 

Illustration of potential improvement in DTT spectrum efficiency 

Over the next three to five years, the Commission could initiate research and analysis into the 
possibility  of  making  uses  of  the  470–862MHz  band  more  spectrum-efficient,  and  consider 
some of the following initiatives, listed below.  

► Inclusion of compression technology at least efficient as MPEG-4 in DTT receivers 

Recommending the inclusion of compression technology at least as efficient as MPEG-446 in 
all  sold  receivers  (minimum  efficiency  standard),  in  addition  to  the  old  standards  ensuring 
backward  compatibility47,  would  have  two  benefits  compared  to  the  “no  further  EU  action 
option”:  it  would  act  as  an  incentive  for  Member  States  to  migrate  network  earlier  to  these 
better transmission technologies, and it could reduce the total cost of a transition by reducing 
the number of MPEG-2 only receivers that would need to be replaced.  

The Commission study has estimate the net benefit to be between EUR 3.6 and 8.8 billion in 
net present value over 15 years (net private value, or consumer and producer surplus)48. 

46  

47  
48  

The  minimum  efficiency  standard  is  expressed  by  reference  to  a  specific  existing  standard  only  by 
default of a generic measurement scale that could define such a level in absolute value. 
In practice, virtually all MPEG-4 decoders currently on the market can also decode MPEG-2 signals. 
See detail in Commission study on "Exploiting the digital dividend – A European Approach", p. 309 to 
314. 

EN 

31 

  EN 

                                                 
)
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Estimated benefit 
Estimated benefit 
EUR3.6-8.8 billion
EUR3.6-8.8 billion

1000
1000

800
800

600
600

400
400

200
200

0
0

-200
-200

-400
-400

-600
-600

Increased cost for
Increased cost for
consumers who
consumers who
would have bought
would have bought
MPEG-2 receivers
MPEG-2 receivers

Benefit for
Benefit for
consumers who
consumers who
would have bought
would have bought
MPEG-4 receivers
MPEG-4 receivers

Reduction in costs
Reduction in costs
to replace MPEG-2
to replace MPEG-2
receivers during a
receivers during a
MPEG-4 migration
MPEG-4 migration

Potential benefit of
Potential benefit of
avoiding a 1 year
avoiding a 1 year
delay to 790-
delay to 790-
862MHz sub-band
862MHz sub-band

Diagram of costs and benefits of including MPEG-4 in all sold DTT receivers. Source: Commission study conducted by Analysys 
Mason, DotEcon and Hogan & Hartson. 

The risk of negative social impact on consumers who have not access to the new technology 
would be compensated by a period of so-called "simulcast", or a period during which both the 
signals  in  the  old  and  new  standard  would  be  broadcast  as  to  allow  the  continuation  of  the 
reception by those consumers with their old TV set or set-top boxes. It is expected that, the 
future timing for a switch-off of the transmission in the older digital format would take into 
account the number of remaining older DTT receivers as well as the affordability of the new 
ones, and possibly of signal down-grading converter boxes.  

There  would  be  a  positive  distributional  effect  on  Member  States  adopting  the  MPEG-4,  or 
better  standard,  from  the  introduction  of  DTT  as  they  would  benefit  from  the  lower  prices 
stemming from larger economies of scale49. 

► Specification of minimum interference rejection standards 

Specifying  minimum  interference  rejection  standards  for  DTT  receivers  would  improve  the 
quality  of  TV  reception  and  reduce  the  cost  of  other  equipment  operating  near  the  TV 
frequencies since those latter could use less expensive interference filtering components. The 
public consultation showed that this measure would be almost unanimously welcomed. 

Although this may increase the cost of producing receivers, it is expected that this cost will be 
largely  offset  by  gains  in  economies  of  scale,  especially  if  this  action  is  combined  with  the 
inclusion of minimum compression standards. 

► The possibility of implementing national Single Frequency Networks  

The  public  consultation  and  other  sources  have  indicated  that  the  advantages  and  costs  of 
SFNs,  which  vary  widely  under  various  scenarios  (e.g.  high  power  or  "cellular"  SFNs),  are 

49  

France is a Member State that has adopted this approach as MPEG-4 will become compulsory on all 
DTT receives sold after 1 January 2010 and relative to TVs with screens larger than 51 cm in diagonal. 

EN 

32 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
largely  untested,  and  should  therefore  be  assessed  in  more  details  based  on  practical 
experience. 

► The use of more frequency-agile wireless broadband networks 

The use of more frequency-agile systems (e.g. variable duplex technology) would improve the 
efficient  use  of  spectrum.  Since  there  is  limited  incentive  for  individual  users  and/or 
equipment  manufacturers  to  invest  in  research  to  achieve  substantial  improvements  in  this 
domain,  collective  action  such  as  research  (possibly  funded  by  Community  programmes) 
could be recommended. 

b) Cooperate at EU level over examining the future use of interleaved spectrum 

There  is  a  large  group  of  existing  users  of  interleaved  spectrum50,  which  mainly  operate 
wireless  microphones  as  explained  before.  The  rearrangement  of  the  UHF  band  will  have  a 
particular  distributional  impact  on  this  community,  and  this  needs  to  be  addressed.  It  is 
considered that Member States are best placed to provide the alternative capacity needed to 
ensure the continuity of these services. 

However, in the medium to long term, further clearance of DTT from the 470–862 MHz band, 
would mean that wireless microphones may not have access to sufficient interleaved spectrum 
to  meet  demand.  Exploring  possible  short-term  options  to  migrate  these  services  to  either 
more efficient digital technologies or to common spectrum bands would enable these longer-
term issues to be addressed most effectively (more certainty for investors, new possibility for 
cross-border interoperability), for a limited cost (economies of scale). There are more benefits 
to having a cooperation concerning the future use of interleaved spectrum, more particularly 
to assist in reaching a Common Position in preparation for WRC-12. 

In addition, Member States may soon consider allowing cognitive technologies to operate in 
the interleaved spectrum, following a recent decision in the US51. If this would happen, there 
could  be  benefits  to  envisage  harmonisation  at  EU  level  as  it  would  provide  confidence  to 
manufacturers  and  application  developers.  The  potential  value  of  such  use  of  interleaved 
spectrum in the 470–862 MHz band to the EU could be EUR 20–30 billion, according to the 
study52  (mainly  based  on  a  critical  review  of  previous  studies  by  sectors  and  technology 
suppliers). 

c) Increased involvement of EU-level institutions in cross-border spectrum coordination 

The  increased  involvement  of  EU-level  institutions  in  cross-border  spectrum  management 
and, in particular, in negotiations over changes in DTT assignments, would have the benefit 
of  reducing  the  risk  of  delays  in  making  the  790–862  MHz  sub-band  available  for  new 
services. The need for EU coordination between Member States may however be limited as 
bilateral and multilateral negotiations seem to make good progress.  

Negotiations  with  non-EU  countries  (third  countries),  however,  may  be  significantly  more 
difficult. Further coordination is required with several Member States to facilitate the timely 
realisation of the sub-band, as the EU could not impose binding measures on those non-EU 
countries.  An  increased  involvement  by  EU-level  institutions  in  such  difficult  negotiations 
would  certainly  be  beneficial  to  those  Member  States  who  have  several  or  large  non-EU 

Also called "white spaces" 

50  
51             http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-260A1.doc 
52  

Commission study on "Exploiting the digital dividend – A European Approach", p. 77 to 80, and p.158 

EN 

33 

  EN 

                                                 
neighbours.  The  public  consultation  confirmed  the  high  interest  of  both  Member  States  and 
stakeholders for such EU involvement to accelerate negotiations. 

The cost of such a measure appears very limited, beyond the required staffing resources that 
must be made available. 

5.2.3 

 Impact  of  mandatory  requirements  to  improve  spectrum  efficiency  linked  to  the 
digital dividend 

The impact of mandatory requirements versus the impact of "further coordination activities", 
as  described  in  5.2.2.,  varies  generally  in  an  incremental  way  for  each  of  the  specific 
measures.  At  this  moment  in  time,  none  of  the  measures  can  show  a  clear  advantage  for  a 
compulsory  approach  at  EU  level.  There  is  a  need  for  more  discussions  on  the  political 
relevance and feasibility of some of the measures, for identifying possible Community action 
in more detail (form and scope) as well as for additional impact assessment. 

5.3. 

Impact of options regarding the coordination of Member State actions in the 790-
862MHz sub-band 

5.3.1.  No further EU action 

This option would result in each Member State being able to adopt regulatory measures at the 
national  level  which  can  be  contradictory  with  each  other  and  which  would  jeopardise  the 
application of the technical harmonisation measure that the Commission is planning to adopt 
in early 2010 with the assistance of the Radio Spectrum Committee (RSC) and on the basis of 
the preparatory work done by the CEPT. 

5.3.2.  Recommendation  that  Member  States  take  no  action  that  would  interfere  with  the 
technical  harmonisation  measure  being  planned  at  EU  level  in  the  790-862  MHz 
sub-band 

Under this option, Member States will refrain from regulatory measure that would prevent or 
complicate low and medium-power bidirectional networks to use the 790-862 MHz sub-band. 
A regulatory measure at the national level could potentially complicate the application of the 
technical harmonisation measure the Commission is planning to adopt with the assistance of 
the Radio Spectrum Committee (RSC) and on the basis of the preparatory work done by the 
CEPT. 

In  addition,  the  Recommendation  would  aim  at  preventing  the  further  build-up  of  legacy 
infrastructure  in  the  sub-band,  by  requiring  Member  States  to  avoid  the  installation  of  new 
(not  yet  planned)  high  power  DTT  transmitters  in  this  spectrum.  By  doing  so,  the  cost  of 
vacating  this  band  in  the  future  (if  decided  at  political  level)  would  be  significantly  lower 
(reduced negative legacy). 

5.4. 

Impact of options regarding the technical harmonisation of the 790–862MHz sub-
band 

It must be emphasised that a timely switch-off of analogue terrestrial TV is a prerequisite for 
the use of medium/low power applications in the 790-862 MHz sub-band. 

EN 

34 

  EN 

An important part of the Commission study consisted in assessing the magnitude of economic 
benefits that could be derived from the digital dividend across the EU over the next 15 years 
under  different  scenarios.  These  scenarios  included  a  combination  of  spectrum  supply  and 
demand situations53 ranging from: 

-  Supply side: a small part of the UHF open to new services (790-862 MHz, or 18%) up 
to the entire UHF band open to new services (470-862 MHz), and an intermediate step 
(694-862 MHz, or 42%). 

470

X

790

862

MHz

Scenario 1

Scenario 2

Scenario 3

High-power DTT

Uses other than 
high-power DTT

High-power DTT

Uses other than high-power DTT

Uses other than high-power DTT

-  Demand  side:  low  demand  for  main  expected  services  (broadcasting  and  wireless 
broadband) to high demand for those services, with the possibility of new unexpected 
broadband uses. 

Wireless broadband 

Demand scenarios for 

the  

Low

High

High with 
new use

470–862MHz band 

[Source: Analysys 

Low

Scenario A

Scenario B

Scenario C

Mason, DotEcon, Hogan 

& Hartson, 2009] 

DTT

High

Scenario D

Scenario E

Scenario F

Spectrum supply scenarios for the 470–862MHz band [Source: Analysys Mason, DotEcon, Hogan & Hartson, 2009] 

The  underlying  economic  impact  modelling  used in  the  study  was  top-down  (i.e.  individual 
Member States are not analysed in detail) and based on (a) the evidence from previous studies 
on  the  incremental  private  value  (i.e.  consumer  and  producer  surplus)  of  the  services  that 
could  be  provided  assuming  the  level  of  spectrum  supply  specified  in  each  of  the  supply 
scenarios, coupled with (b) estimates of the costs of network alterations or deployments and 
consumer  equipment  upgrades  that  might  be  required.  This  information  was  then  used  to 
quantify  how  differing  divisions  of  the  band  among  potential  uses  might  translate  into  an 
economic value of the digital dividend across the EU.  

The final economic benefits were expressed in terms of incremental private value (consumer 
and  producer  surplus  combined)  for  the  various  types  of  possible  EU-level  scenarios  when 
compared  to  a  reference  scenario  corresponding  to  be  no  EU  coordination  (as  described  in 

53  

Commission study on "Exploiting the digital dividend – A European Approach", chapter 12 

EN 

35 

  EN 

 
 
 
                                                 
section 2.2.). These results were quantified in Net Present Value accrued over a period of 15 
years. 

The two policy options introduced in Section 4.4 above represent progressive degrees of EU-
level intervention. 

The main conclusion of the study is that the private value that could be created by all Member 
States adopting the 790-862 MHz sub-band for electronic communications services would be 
between  EUR17  billion  and  EUR44  billion  depending  on  the  assumed  level  of  demand  for 
different services as outlined above54. A conservative mean estimate is EUR 30 to 40 billion 
(corresponding  to  modest  DTT  capacity  increase  due  to  better  compression  technology  and 
sustained demand for mobile and fixed wireless broadband). National studies announced even 
higher benefits 55 

This significant incremental private value of opening up the 790-862 MHz sub-band to new 
services  under  an  EU-coordinated  approach,  over  and  above  the  “no  further  EU  action” 
scenario, would accrue in the following ways: 

•  cross-border  interference  from  DTT  would  not  occur  in  the  790–862MHz  sub-band, 
enabling  alternative  services  such  as  wireless  broadband  to  be  effectively  deployed 
throughout the EU; 

• 

• 

there  would  be  benefits  arising  from  the  single  market  dimension:  pan-European 
interoperability and roaming, particularly in terms of economies of scale for end-user and 
network  equipment.  Based  on  Normalised  Price  of  equipment,  the  Commission  study 
estimated these economies at 40% of retail prices for the first 50 million users, and with 
additional 5% for the next 50 millions, and finally 1.5% more if the remaining parts of the 
EU can be subject to the same harmonised conditions of use.  

there  would  be  increased  certainty  provided  to  equipment  manufacturers,  which  would 
accelerate research and development and enable services to be launched faster. During the 
stakeholders'  workshop,  manufacturers  mentioned  a  minimum  market  of  100  million 
inhabitants as being the critical mass to start investing. 

There will be also significant, and positively correlated social value, generated by the fact that 
the extent of access to broadband services will be greater and occur earlier than without this 
action, and through the possibility to create pan-European interoperability of services..  

The  net  benefits  take  account  of  the  costs  that  will  inevitably  occur  during  the  necessary 
changes to broadcasting networks. These costs would primarily consist of: 

• 

the  reorganisation  of  frequency  assignments,  which  could  require  both  changes  to  the 
networks  as  well  as  bilateral  negotiations  with  neighbouring  countries,  and  possibly 
equipment  costs  in  the  case  of    Member  States  which  are  likely  to  decide  to  migrate  to 
more efficient DTT standards in order to maintain  the same level of development of DTT; 

54  

55  

Commission study on "Exploiting the digital dividend – A European Approach", details in chapter 13, 
summary results in 13.3.1  
For  example,  the  study  by  ARCEP  for  the  French  government  in  2008  indicated  that  a  scenario  that 
would ‘share’ the digital dividend between both electronic communications and audiovisual industries 
would add over EUR25 billion more to the French economy between 2012 and 2024 than allocating the 
digital dividend exclusively to the digital TV industry. 

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36 

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• 

in  specific  case,  broadcast  networks  may  require  the  replacement  or  reorientation  of 
aerials (mainly a potential issue in the UK)56.  

According to the analysis performed by the consultants, there should be no overall negative 
distributional impact on the broadcasting services since any loss of broadcasting capacity in 
the 790-862 MHz sub-band should be compensated by network re-planning and/or improved 
transmission technology. In some case, financial compensation of broadcasters to cover these 
costs could be considered as well.  

Regarding  the  distributive  effect  on  some  Member  States,  it  is  clear  that  costs  will  be 
depend on the amount of DTT transmitters located in the sub-band for each Member States. 
However,  in  all  cases,  Community  action  should  have  a  positive  impact  as  compared  to  no 
action since it is likely to facilitate the reorganisation of broadcasting networks (and lower the 
costs)  as  well  as  accelerate  the  realisation  of  the  benefits  in  those  affected  Member  Sates. 
Community  action  would  also  have  a  positive  impact  on  the  speed  of  the  negotiations  with 
third  countries.  As  an  example,  as  Community  action  is  in  development,  one  can  see  a 
growing interest of third countries in adopting a similar approach to the EU (e.g. Switzerland, 
Russia  announcing  analogue  switch-off  in  2015,  North  African  countries  considering  the 
same sub-band for wireless communications). 

5.4.1.  Guidelines (non mandatory) for the harmonisation of the 790–862MHz sub-band  

Implementing guidelines for the harmonisation of the 790–862MHz sub-band would provide 
a strong signal from the Commission of what it considers to be the most effective way to reap 
maximum  benefits  from  the  790–862MHz  sub-band.  These  guidelines  would  be  aimed  at 
persuading undecided Member States to adopt the measures presented in the Communication 
and Recommendation without formal obligations. The public consultation has also made clear 
that this action is largely anticipated by stakeholders and any failure to follow-up on the side 
of the Commission would create a degree of uncertainty in the market. 

More  generally,  this  option  is  likely  to  support  maintaining  the  momentum  which  has  been 
forming  over  the  past  few  months,  with  Denmark,  the  Netherlands,  Spain  and  the  UK 
recently57  announcing  plans  to  clear  and  award  the  790–862  MHz  sub-band.  This  would 
unlock  economic  and  social  benefits  in  a  larger  proportion  of  the  EU  and  increase  benefits 
such as economies of scale, interoperability and roaming and increased certainty to industry, 
particularly for equipment manufacturers. As a result, parts of the identified benefit of EUR17 
billion to EUR44 billion may be realised (see introduction to section 5.4). 

Member  States  have  expressed  a  preference  for  non-obligatory  action  to  encourage  the 
adoption  of  the  sub-band.  This  is  also  the  view  put  forward  in  the  RSPG  Opinion  on  the 
digital  dividend.58  Nevertheless,  mere  guidelines  cannot  guarantee  the  EU-wide  adoption  of 
the sub-band. 

5.4.2.   Commission Decision setting the technical parameters of 790-862 MHz sub-band  

This  policy  option  will  reassure  Member  States  facing  difficulties  to  relocate  high  power 
broadcasting  transmitters  outside  of  this  band,  and  therefore  increase  overall  acceptance  to 
build support for the sub-band for use by electronic communications in the foreseeable future. 

56  

57  
58  

The UK is facing a particular situation where the operative frequency range of aerials vary from region 
to region. 
June 2009. 
RSPG Opinion on the digital dividend adopted on 19 September 2009. 

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37 

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This  will  avoid  fragmentation  and  lead  to  an  optimal  use  of  the  spectrum.  The  technical 
conditions set in the Decision will prevent the use of high-power applications that make the 
coexistence  very  costly  and  have  a  substantial  cross-border  impact.    However,  within  these 
technical  conditions,  any  service  could  be  allowed  and  technology  and  service  neutrality 
principles shall apply. 

Furthermore, a common frequency allocation would also create greater scope for roaming for 
consumers.  The  cost-efficiency  of  providing  roaming  services,  particularly  for  wireless 
broadband is greatly improved compared to a situation in which consumer equipment requires 
multi-band operation. 

This  policy  option  is  likely  to  result  in  the  vast  majority  of  the  calculated  benefits  to  be 
realised  (between  EUR17 billion  and  EUR44 billion  in  net  present  value  as  explained  in 
introduction to section 5.4 and detailed the study). 

The  Commission  expects  mobile  broadband  services  to  be  deployed  in  this  band.  The  ITU 
gave a co-primary allocation to mobile services in this  sub-band. The CEPT measure  (ECC 
Decision) on the 790-862 MHz sub-band is also adapted to mobile services. The availability 
of mobile broadband is a key condition to achieve the EU social objectives, incl. bridging the 
digital  divide.  All  recent  studies  predict  that  UMTS  or  LTE  are  expected  to  be  the  most 
valuable  uses  of  the  sub-band.  The  sub-band  790-862  MHz  should  be  also  open  to  other 
services that meet the technical conditions set in the Decision. 

If  the  sub-band  was  to  be  awarded  under  common  technological  conditions  and  a  common 
band  plan,  this  would  remove  the  uncertainty  on  channelling  arrangements,  and  hence  on 
detailed  spectrum  planning  for  coping  with  interference,  but  at  the  expense  of  service  and 
technology neutrality. It would require that all Member States award the 790–862 MHz sub-
band exclusively for wireless broadband service, following common technological conditions 
and a common band plan (channelling arrangement). This would be the surest way to secure 
the full benefits calculated by the study conducted by the consortium for the Commission. 

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 

While  the  absence  of  an  end-date  for  clearing  the  790-862  MHz  sub-band  in  the  above 
measure  could  lead  to  an  uncertainty  in  the  EU  single  market  due  to  different  speeds  of 
implementation  in  different  Member  States,  it  is  important  to  take  into  account  the 
sensitivities  of  Member  States  on  this  issue,  mainly  due  to  different  switch  off  speeds  and 
different legacy situations regarding broadcasting.  

Seeking  to  set  that  date  in  the  current  situation  could  be  counter-productive  and  could  give 
rise to greater uncertainty. If the Commission were to set an end-date, it is not sure whether 
all Member States would support such a measure. Furthermore, it is likely that a number of 
Member States would apply long transitional periods. Economies of scale could not be reaped 
and spectrum could not be used in the most efficient way. 

Therefore, while it will be necessary at some  point to fix a date  beyond which the  790-862 
MHz sub-band should be used exclusively by medium- to low-power services, in view of the 
importance  of  the  matter  and  the  political  sensitivities  outlined  above,  the  European 
Parliament  and  the  Council  could  discuss  the  matter  and  propose  an  end-date  in  the 
context  of  a  Commission  proposal  under  the  Radio  Spectrum  Policy  Programme  in  due 

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38 

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course. This would allow due account to be taken of the development of broadcasting services 
and would carry greater political support. 

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39 

  EN 

6. 

COMPARISON OF OPTIONS 

6.1.  Comparison of options regarding the timely completion of analogue switch-off 

Figure 6.1. below summarises the benefits, costs and risks of requiring all Member States to 
switch  off  analogue  broadcasting  before  1  January  2012,  compared  to  the  “no  further  EU 
action” baseline.  

Option 

Benefits compared to the “no 

Costs compared to the “no 

Risks 

further EU action” option 

further EU action” option 

1. No further EU 
action 

Not relevant 

NA. There are however 
some costs associated with 
the prolongation of simulcast 
(the parallel transmission of 
the same TV programmes in 
analogue and digital format) 
and an opportunity cost (see 
risks). 

Increased pressure on some 
Member States to comply with 
the 2012 deadline 
("momentum" effect on all 
stakeholders). 

Additional implementation 
costs for Member States 
that have planned analogue 
switch-off for after 1 January 
2012. 

Spectrum may remain 
unused before 2015 
(because of neighbouring 
countries outside the EU). 

2. 
Recommendation 
that Member 
States take all 
necessary steps 
to switch-off 
analogue signals 
by 1 January 
2012 (except 
those that have 
already switched-
off) 

3. Mandating 
analogue switch-
off by 1 January 
2012 (a 
Community legal 
measure). 

Increased certainty as to the 
availability of the digital 
dividend by 1 January 2012. 

Increased probability that 
some Member States will 
award the 790–862MHz sub-
band earlier than would 
otherwise have been the case. 
case (which has a potential 
benefit of between EUR1 
billion and EUR10 billion in net 
present value over 15 years, in 
conjunction with other 
measures that aim to avoid 
delays in the availability of the 
sub-band). 

No residual analogue 
transmission after 1 January 
2012, legally enforced by a 
Community measure. 

Threat of cutting-off analogue 
TV viewers that had not been 
re-equipped in appropriate 
time. 

Additional implementation 
costs for Member States 
that have planned analogue 
switch-off for after 1 January 
2012. 

Spectrum may remain 
unused before 2015 
(because of neighbouring 
countries outside the EU). 

There is an indirect opportunity 
cost due to the delay in 
allowing the 800 MHz band to 
be used by electronic 
communications services. This 
cost of delaying potential 
benefits is estimated at min. 
EUR 1 billion in net present 
value over 15 years for any 
one year of delay of the switch-
off date. 

Some consumers in vulnerable 
groups may not be adequately 
prepared for analogue switch-
off by 1 January 2012 if the 
initial deadline was initially set 
for a later date. This risk can 
however be mitigated by 
considering adequately the 
special cases occurring only in 
a limited number of Member 
Sates, including the possibility 
of state subsidies aimed at 
these socially-weak groups 
(the conditions for such 
subsidies have been clarified 
by the Commission). 

Figure 6.1: 

Comparison of options regarding advancing the analogue switch-off deadline 

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40 

  EN 

Although  the  costs  mentioned  above  are  limited  to  those  maximum11  Member  States  for 
which analogue switch-off would have taken place after 2012, the benefits would actually be 
realised  across  the  EU,  particularly  in  neighbouring  Member  States.  The  options  2  and  3 
could help accelerating the adoption of the 790–862 MHz sub-band by a few months across 
the EU, thereby creating significant value (see Section 1.1), this compared with estimates for 
the cost of a one-year delay of EUR 1 to EUR 10 billion as explained in section 5. 

6.2.  Comparison of options regarding the achievement of the optimal use of spectrum 

in the UHF band (470-862 MHz) 

Figure  6.2  below  summarises  the  benefits,  costs  and  risks  of  possible  further  measures  to 
increase spectrum efficiency. 

Option 

Benefits compared to the “no 

Costs compared to the 

Risks 

further EU action” option 

“no further EU action” 

option 

NA 

NA 

1. No further EU 
action on 
coordination activities 

2. Further 
coordination activities 
in sub-bands below 
790MHz  

EU able to react if additional 
spectrum is needed for new 
uses. High level of certainty to 
market players. Acceleration 
of the creation of a further 
digital dividend. 

Reduced costs for realising 
additional spectrum efficiency.  

3. Mandatory 
requirement to 
improve spectrum 
efficiency linked to 
the digital dividend 

Strong EU action to improve 
spectrum efficiency. 
Technology-neutral   
specifications allow for 
flexibility in technology choice. 

Possible competitive 
advantage for the EU as a 
result of innovation in media 
industry (not assessed). 

Additional regulatory 
burden to upgrade 
receivers. Cost of 
progressively replacing 
MPEG-2 receivers in the 
15 Member States that 
currently use only MPEG-
2 (The costs of replacing 
old DTT receivers should 
however be more than 
compensated by 
preventing more legacy 
devices from a certain 
date, and by lower costs 
due to economies of 
scale). 

Costs of migrating to 
mandated specifications. 

Costs of replacing old 
DTT receivers. 

Additional spectrum can 
not be made available to 
new uses. The digital 
dividend is minimised. 

Detriment to some 
suppliers and consumers 
who would incur those 
costs sooner than 
anticipated. 

Detriment to some 
suppliers and consumers 
who would incur those 
costs sooner than 
anticipated. Risk of 
picking specifications that 
are overtaken by further 
technological advances. 

Figure 6.2:  Comparison of options regarding other measures to increase spectrum efficiency 

Option  2,  further  coordination  activities,  and  especially  the  collaboration  between  Member 
States to share future broadcasting network deployment plans (e.g. migration to MPEG-4 or 
DVB-T2) and possibly the deployment of more Single Frequency Networks (SFNs) will lead 
to an increased efficiency of the use of spectrum below 790 MHz. This option will pave the 
way  for  a  further  digital  dividend,  while  providing  sufficient  flexibility  for  Member  States. 
Option 3, the mandating of minimum technology-neutral specifications in all DTT receivers 

EN 

41 

  EN 

would provide more certainty to manufacturers and increased economies of scale over time, 
but  still  run  the  risk  of  being  too  closely  associated  with  a  current  set  of  technologies  that 
become outdated or are overtaken by further technological developments. 

6.3.  Comparison of options regarding the co-ordination of Member State action in the 

790-862 MHz sub-band 

Figure  6.3  below  summarises  the  benefits,  costs  and  risks  of  each  of  the  policy  options 
compared to the baseline that can be achieved by implementing the preferred option for the 
ensuring  that  Member  States  do  not  take  action  that  would  interfere  with  a  co-ordinated 
approach in the 790–862 MHz sub-band throughout the EU.  

Option 

Benefits compared to the 

Costs compared to the 

Risks 

The application of the 
technical harmonisation 
measure on the 790-862 
MHz sub-band would be 
jeopardised. 

Some Member States 
might not respect the 
recommendation, 
undermining the overall 
impact of the initiative. 

“No further EU action” 

“No further EU action” 

option 

option 

1. No further EU action 

NA 

NA 

2. Recommendation 
that Member States 
apply a co-ordinated 
approach in the 790-
862MHz sub-band  

High-power networks 
would not be allowed in 
the 790-862 MHz sub-
band from a certain date 
(to be approved at 
political level). 

Costs (if any) for Member 
States not being able to 
deploy high-power 
networks in the 790-862 
MHz sub-band. 

Eased harmonisation at the 
EU level of technical 
conditions for the use of the 
sub-band. 

Creation of an EU 
momentum increasing the 
chances of more Member 
States adopting the sub-
band, and hence 
accelerating the availability 
of the band in some 
Member States that are 
already considering moving 
in this direction. 

It would also allow more  
Member States to unlock 
the benefits of the expected 
services. 

Figure 6.3: comparison of options regarding the preservation of a co-ordinated approach in the 790-862 MHz sub-band 

The  application  of  the  technical  harmonisation  measure  on  the  790-862  MHz  could  be 
jeopardised in the absence of EU action ensuring that Member States respect a co-ordinated 
approach. The major benefit of this option is that high-power networks would not be allowed 
in the 790-862 MHz sub-band which would facilitate the technical harmonisation. 

6.4.  Comparison  of  options  regarding  the  technical  harmonisation  of  the  790-862 

MHz sub-band 

Figure  6.4  below  summarises  the  benefits,  costs  and  risks  of  each  of  the  policy  options 
compared to the “no further EU action” baseline. 

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42 

  EN 

Option 

Benefits compared to the 

Costs compared to the 

Risks 

“No further EU action” 

“No further EU action” 

baseline 

1. Guidelines for the 
harmonisation of the 
790-862MHz band 

Increased probability that 
more Member States adopt 
the sub-band. 

baseline 

Negligible 

Negligible. See comments 
in section 1. 

2. Commission 
Decision setting the 
technical conditions for 
use of the 790-862MHz 
band 

3. Commission 
Decision setting the 
technical conditions 
and setting a 
mandatory end-date for 
clearing the 790-862 
MHz sub-band of 
broadcasting (high-
power) services 

Increased probability that 
more Member States adopt 
the sub-band. 

Increased potential for 
legal action against 
NRAs’ decisions. 

Negligible for most EU 
Member States. See 
comments in section 1. 

Certainty of release of 
spectrum in the 790–
862MHz sub-band on the 
longer term. 

Highly increased probability 
of realising benefits of 
EUR19 to 46 billion in net 
present value over 15 
years. 

Removing uncertainty in the 
EU single market due to a 
fragmented situation in a 
number of Member States. 

Further likelihood of 
realising the benefits 
outlined under option 2. 

Costs of increasing the 
efficiency of broadcast 
networks and 
reorganising 
transmission, of between 
EUR2 and EUR4 billion in 
net present value over 15 
years. 

It must be however noted 
that the outcome in 
Member States at the 
edge of the EU is 
dependent on their non-
EU neighbours adopting a 
similar approach. 

Additional costs for 
Member States that have 
not initially planned to use 
the band for other 
services than 
broadcasting. 

Implementation delays by 
Member States due to 
different switch off speeds 
and broadcasting 
situations. 

Difficulties in coordinating 
an EU-wide plan for 
clearance of the sub-band 
with neighbouring third 
countries. 

Figure 6.4: Comparison of options regarding the technical harmonisation of the 790-862 MHz sub-band 

The costs of implementing non-obligatory guidelines in option 1 are likely to be very modest, 
but  would  not  significantly  increase  the  likelihood  of  achieving  the  major  benefits  of 
harmonisation.  There  would  be  a  risk  of  a  long  term,  difficult  to  reverse,  fragmentation  if 
early movers would adopt (even slightly) different technical specifications. 

Requiring Member States to make the 790–862 MHz sub-band available, is likely to increase 
the probability of achieving the benefits of harmonisation. The major benefit from setting an 
end-date  at  the  EU  level  for  clearing  the  790-862  MHz  sub-band  would  be  the  removal  of 
uncertainty in the single market caused by a fragmented situation in many Member States. As 
mentioned  under  6.1,  Member  States  that  have  not  already  carried  out  analogue  switch-off 
might incur some costs, but such costs would be offset by economies of scale and by efficient 
use of spectrum.  

Seeking to set a mandatory end-date immediately could be counter-productive and could give 
rise  to  uncertainty.  If  the  Commission  were  to  set  an  end-date,  it  is  not  sure  whether  all 
Member  States  would  support  such  a  measure.  Furthermore,  it  is  likely  that  a  number  of 
Member States would apply long transitional periods. Economies of scale could not be reaped 
and  spectrum  could  not  be  used  in  the  most  efficient  way.  Therefore,  while  it  will  be 
necessary  at  some  point  to  fix  a  date  beyond  which  the  790-862  MHz  sub-band  should  be 
used exclusively by medium- to low-power services, in view of the importance of the matter 
and the political sensitivities outlined above, the European Parliament and the Council could 

EN 

43 

  EN 

discuss the matter and propose an end-date in the context of a Commission proposal under the 
Radio Spectrum Policy Programme in due course.  

In  summary,  the  more  beneficial  option  at  this  point  in  time,  and  which  satisfies 
proportionality  requirements  appears  to  be  option  2,  i.e.  to  require  that  all  Member  States 
apply the same technical conditions when changing the designation of the 790-862 MHz sub-
band from the current designation for broadcasting, recommending that awards be conducted 
on  a  technology  and  service-neutral  basis  with  common  technological  conditions  and  a 
common band plan. 

Any later proposal by the Commission to introduce a common deadline for implementation of 
the  technical  harmonisation  decision  of  the  790-862  MHz  sub-band  will  be  subject  to  a 
specific  and  more  detailed  evaluation  of  impact  of  that  specific  measure,  in  particular  its 
possible distributional impact on business sectors, groups of citizens or specific regions. 

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7. 

EVALUATION AND MONITORING 

The link between the use of the digital dividend in Member States and its social and economic 
impact across the economy, either in specific application areas, or in structural change is too 
complex for aggregate measures of impact to be used as indicators of the effectiveness of the 
measures  considered.  It  is  therefore  proposed  to  base  the  evaluation  and  monitoring  on  the 
operational objectives in the specific areas of focus. 

Special attention will be paid to assessing progress in the three main areas addressed i.e.:  

•  The timeliness of measures taken in Member States for ensuring the complete switch-off 

of analogue TV by 1 January 2012; 

•  The  progress 

in  making 

the  790-862  MHz  sub-band  available  for  electronic 

communications under harmonised technical condition in Member Sates; 

•  Progress  in  migrating  to  "best  in  class"  technologies  for  the  transmission  of  terrestrial 

broadcasting signals. 

Specific indicators which will be updated regularly will include the following: 

•  Percentage  of  EU  territory  and/or  population  where  the  digital  broadcasting  switchover 

has been completed; 

•  Coverage of rural areas by mobile broadband; 

•  Availability of new services provided in the 790-862 MHz sub-band; 

•  Percentage of sold DTT receivers ready to process transmission compression standards at 

least as efficient as MPEG-4 AVC/H.264; 

•  Availability of minimum common standards for interference rejection on DTT receivers; 

•  Number  of  Member  States  having  implemented  the  harmonised  technical  conditions  of 
use  for  the  800  MHz  band  and  the  evolution  of  the  prospect  for  an  EU-wide 
implementation in the future; 

•  Percentage  of  broadcasting  networks  using  the  first  generation  of  DVB-T/MPEG2 
standards versus those using a next generation of more efficient transmission standards (at 
least as efficient as MPEG4 AVC/H.264); 

•  Progress on a common position on the possible use of "white spaces" in Europe; 

•  Availability  of  clear  plans  at  Member  State  level  and/or  at  EU  level  to  ensure  the 

continuity of legacy services such as wireless microphones.  

From a more fundamental viewpoint, dealing with the evolving nature of the digital dividend 
issue will be a "dynamic" process: developments in technology, services, market demand and 
societal  requirements  will  require  that  the  actions  established  under  the  roadmap  evolve  in 
parallel. Particularly relevant factors of uncertainty which will have to be monitored are: 

• 

the  extent  of  consumer  take-up  of  HDTV  on  the  terrestrial  platform  in  the  future, 
compared  to  the  take-up  on  other  platforms  such  as  satellite  and  IPTV  on  broadband 
networks (in particular in an NGA context); 

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45 

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•  a higher growth of broadband wireless usage leading to a spectrum bottleneck59; 

• 

• 

• 

the  emergence  of  unforeseen  additional  broadband  uses  which  would  require  access  to 
more spectrum below 1 GHz, for example public service uses such as Public Protection 
and Disaster Recovery (PPDR) or public security; 

the  pace  of  introduction  of  new  technologies:  new  transmission  compression  standards, 
new frequency agile technologies and their ability to take advantage of the white spaces; 

the  possibility  to  create  synergies  with  other  regions  of  the  world  in  the  light  of  not 
foregoing the chance to benefit from potentially world-wide economies of scale. 

To  address  these  evolutions,  the  Commission  will  propose  to  establish  a  mechanism  to 
monitor  external  developments  affecting  the  roadmap,  using  where  possible  existing 
structures and contact networks. The collection of data for that purpose should be performed 
through  access  to  sector-specific  statistics,  data  collected  in  the  context  of  the  work  in 
relevant EU policy areas (e.g. broadband penetration, broadcasting service take-up) and other 
appropriate  sources.  In  addition,  the  Commission  may  launch  additional  studies  and/or  task 
the Communications Broadcast Issues Sub-group (CBISS) of the Communication Committee 
(COCOM)  and/or  the  Radio  Spectrum  Policy  Group  (RSPG)  to  assess  progress  if  required. 
The Commission further proposes to report on any need to review elements of the roadmap to 
the  European  Parliament  and  Council  at  least  once  every  two  to  three  years.  This  reporting 
would  include  changes  in  forecasts  for  spectrum  demand  and  identify  any  future  need  for 
making further spectrum available on a co-ordinated basis. 

59  

This  has  also  been  identified  by  the  RSPG  in  its  Position  Paper  on  wireless  broadband  (Document 
RSPG09-284 adopted on 13 May 2009). 

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Annex A: Glossary of abbreviations used in the IA report 

CEPT   

European Conference of Postal and Telecommunications Administrations  

DTT 

Digital Terrestrial TV 

DVB-T 

Digital Video Broadcasting - Terrestrial 

ECC 

ECO 

FCC 

FDD 

Electronic Communications Committee 

European Communications Office 

Federal Communications Commission 

Frequency Division Duplex 

GE-06  

Geneva 2006 frequency plan  

HDTV  

High-Definition TV 

ITU 

MFN 

MPEG 

International Telecomunication Union 

Multi Frequency Networks 

Moving Picture Experts Group (ISO standard for audio and video compression 
and transmission) 

RSPG   

Radio Spectrum Policy Group 

SAB/SAP 

Services Ancillary to Broadcasting/Services Ancillary to Programme making 

SFN 

Single Frequency Networks 

PMSE   

Programme Making and Special Events  

PPDR   

Public Protection and Disaster Relief 

TDD 

UHF 

Time Division Duplex 

Ultra High Frequency (band) 

UMTS  

Universal Mobile Telecommunications System  

WAPECS  Wireless Access Policy for Electronic Communications Services 

WRC   

World Radiocommunication Conference 

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