COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Impact Assessment Accompanying the document SJ-032 Proposal for a Decision of the European Parliament and of the Council on the use of the 470-790 MHz frequency band in the Union
Date: 2016-02-02
Institutions: Directorate-General for Communications Networks, Content and Technology, European Commission
Subjects: audiovisual communications policy, harmonisation of standards, innovation, radio telecommunications, regulation of telecommunications, transmission network, waveband

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 2.2.2016  SWD(2016) 20 final   COMMISSION STAFF WORKING DOCUMENT  IMPACT ASSESSMENT  Impact Assessment  Accompanying the document SJ-032 Proposal for a Decision of the European Parliament and of the Council on the use of the 470-790 MHz frequency band in the Union {COM(2016) 43 final} {SWD(2016) 19 final}  
 
 
COMMISSION STAFF WORKING DOCUMENT 

IMPACT ASSESSMENT 

Impact Assessment  

Accompanying the document 

SJ-032 

Proposal for a Decision of the European Parliament and of the Council on the use of the 
470-790 MHz frequency band in the Union 

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Table of Contents 

1. 

INTRODUCTION ....................................................................................................... 5 

2.  PROBLEM DEFINITION .......................................................................................... 6 

2.1.  What is the problem ........................................................................................... 6 
2.2.  Who is affected, in what ways and to what extent? ......................................... 13 
2.3.  How would the problem evolve ...................................................................... 13 

3.  WHY THE EUROPEAN UNION SHOULD ACT .................................................. 14 

4.  POLICY OBJECTIVES ............................................................................................ 15 

5.  POLICY OPTIONS................................................................................................... 16 

Identified policy options .................................................................................. 16 
5.1. 
5.2.  Discarded Options ........................................................................................... 19 

6. 

IMPACTS OF THE DIFFERENT OPTIONS .......................................................... 20 

6.1.  Option 1 – Baseline scenario – no action at Union level ................................ 21 
6.2.  Option 2 – Coordinated designation and authorisation of the 700MHz band 
for wireless broadband by 2020; reservation of the sub-700MHz frequency 
band for DTT and audio PMSE. ...................................................................... 22 
6.2.1.  Coordinated  designation  and  authorisation  of  the  700MHz  band 

for wireless broadband by 2020 ........................................................ 22 

6.2.2.  Reservation  of  the  sub-700  MHz  frequency  band  for  DTT  and 

PMSE................................................................................................. 27 

6.3.  Option 3 – Coordinated designation and authorisation of the 700MHz band 
for  wireless  broadband  by  2020  and  coordinated  designation  of  the  sub-
700MHz  band  for  flexible  use  for  audiovisual  and  wireless  broadband 
services [in downlink-only mode], according to national demand. ................ 28 
6.3.1.  Coordinated  designation  and  authorisation  of  the  700MHz  band 

for wireless broadband by 2020 ........................................................ 28 
6.3.2.  Flexibility approach to the sub-700MHz band .................................. 28 

6.4.  Option  4  –  Coordinated  designation  and  authorisation  of  the  whole  UHF 

broadcasting band for wireless broadband services by 2020. ......................... 29 

7.  COMPARISON OF OPTIONS ................................................................................. 31 

8.  MONITORING AND EVALUATION .................................................................... 38 

9.  BIBLIOGRAPHY ..................................................................................................... 40 

10.  ANNEXES ................................................................................................................ 43 

10.1.  Annex: Procedural information ....................................................................... 43 
10.1.1.  Identification ..................................................................................... 43 
10.1.2.  Organisation and timing .................................................................... 43 
10.1.3.  Regulatory Scrutiny Board ................................................................ 43 
10.1.4.  Evidence 44 
10.1.5.  External expertise .............................................................................. 45 

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10.2.  Annex: Stakeholder consultation..................................................................... 46 
10.2.1.  High Level Group .............................................................................. 46 
10.2.2.  The Lamy Report............................................................................... 46 
10.2.3.  Lamy Report Public Consultation on 700MHz spectrum band ........ 46 
10.3.  Annex: Who is affected by the initiative and how – SME Test ...................... 50 
10.4.  Annex: Analytical models used in preparing the impact assessment. ............. 55 

55 

10.4.1.  Costs 
10.4.2.  Benefits of the 700 MHz band .......................................................... 56 
10.5.  Technical Annex ............................................................................................. 58 
10.5.1.  Glossary and Acronyms .................................................................... 58 
10.5.2.  Mobile sector ..................................................................................... 59 
10.5.3.  The European Audiovisual Model and the audiovisual sector .......... 61 
10.5.4.  Digital Television .............................................................................. 65 
10.5.5.  DTT spectrum use in EU Member States .......................................... 65 
10.5.6.  Current  spectrum  harmonisation  and  usage  of  sub-1  GHz  in  the 

EU 

 ........................................................................................... 67 
10.5.7.  Transition costs for the release of the 700 MHz band ....................... 70 
10.5.8.  Consumer costs for the release of the 700 MHz band ....................... 73 

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Table of Figures 

Figure 1 - Radio spectrum – UHF band ................................................................................................. 8 
Figure 2 – Penetration of total DTT by country as a percentage of television households, 2014 .......... 9 
Figure 3 – Market shares of television platforms across Europe ........................................................... 9 
Figure 4 – Current status of the current licences and future intentions with respect to the 700MHz 
band in EU 28 ....................................................................................................................................... 11 
Figure 5 - Parts of the problem, drivers and consequences table ......................................................... 13 
Figure 6 – General and specific objectives table .................................................................................. 16 
Figure 7 – Policy options ...................................................................................................................... 20 
Figure 8 – Key categories of impacts considered ................................................................................. 21 
Figure 9 – 4G mobile broadband (LTE) coverage as a percentage of households .............................. 23 
Figure 10 – Capacity and coverage characteristics of different spectrum bands ................................. 24 
Figure 11 – Percentage of EU households with a mobile subscription giving access to the Internet .. 24 
Figure 12 – Top ten connected applications in 2020 ............................................................................ 26 
Figure 13  – Estimated total costs of clearing the 700 MHz band with upgrade to DVB-T2/HEVC and 
DVB-T2/MPEG4 in EU 28 (€ million) .................................................................................................. 28 
Figure 14  – Comparison of options across all dimensions considered ............................................... 35 
Figure 15 - Comparison of options: effectiveness, efficiency, stakeholder views and coherence ......... 36 
Figure 16 - Monitoring indicators by policy objective ......................................................................... 39 
Figure 17 – Stakeholders in favour of an EU coordinated approach ................................................... 48 
Figure 18 – Stakeholders in favour of a common deadline for a market review .................................. 49 
Figure 19 – Estimate value to mobile operators of the 700 MHz band based on 800 and 900 MHz 
band auctions, 2010-2014 ..................................................................................................................... 58 
Figure 20 - Mobile Data and Internet Traffic, 2014-2019 .................................................................... 60 
Figure 21  – Mobile data traffic per application type, 2014-2019 ........................................................ 60 
Figure 22 – Mobile data traffic per application type, 2010-2020 ......................................................... 61 
Figure 23  – Mobile data traffic per application type, change between 2014 and 2020 ...................... 61 
Figure 24  – Observed and predicted mobile traffic off-load ................................................................ 61 
Figure 25 –The relevance of linear television in the EU 'Big 5' ........................................................... 63 
Figure 26 - Means of receiving television in the EU ............................................................................. 63 
Figure 27 – TV viewing habits per age group in the EU ...................................................................... 64 
Figure 28 - Overview of Netflix deals with EU Telecom Operators ..................................................... 65 
Figure 29 – CPE cost by category ........................................................................................................ 65 
Figure 30 – Countries with DVB, DVB-T2 and other broadcasting standards .................................... 66 
Figure 31 – Distribution of DTT assignments in the VHF and UHF bands (percentage) .................... 67 
Figure 32 - Expiry dates of existing broadcasting licenses in the UHF band in EU28 ........................ 67 
Figure 33 – EU harmonised bands for wireless broadband with respect to 1200 MHz objective 
identified in the RSPP ............................................................................................................................ 68 
Figure 34 – Simulation of EU harmonised bands for wireless broadband with 700 MHz and 2.3 GHz 
harmonisation measures ........................................................................................................................ 68 
Figure 35 – Current assignments in harmonised EU bands below 1GHz (October 2015) ................... 69 
Figure 36 – Level of impact in repurposing 700 MHz band related to an average of 30% .................. 71 
Figure 37 – 700 MHz transmitter power structure of 18 EU countries ................................................ 72 
Figure 38 – Selected countries and relevant criteria ............................................................................ 72 
Figure 39 – EU28 restacking costs ....................................................................................................... 73 
Figure 40 – EU28 transition costs to upgrade to DVB-T2 (MPEG4 or HEVC) ................................... 73 
Figure 41 – Cost of forced replacement of DVB-T2 MPEG4 compatible receivers, 2020-2022 .......... 74 
Figure 42 – Cost of forced replacement of DVB-T2 HEVC compatible receivers, 2020-2022 ............ 75 
Figure 43 – Cost of forced switch to cable or satellite receivers, 2020-2022 ....................................... 75 

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1. 

INTRODUCTION 

The  Digital  Single  Market  (DSM1)  for  Europe  Strategy  is  a  political  priority  of  the  Juncker 
Commission. Connectivity2 is a building block of the DSM and fixed and wireless access is crucial to 
provide  cost-efficient  connectivity  to  all  EU  citizens.  Wireless  connectivity  requires  access  to 
spectrum with the bands below 1GHz being the "sweet spot" for both wide coverage and high speeds. 
In the past the frequencies 470-862 MHz were used for analogue TV transmission. With the switch to 
more efficient digital television technologies some of this valuable spectrum, the 800 MHz band (790-
862  MHz),  was  reallocated  for  use  by  wireless  broadband  services3  while  the  470-790  MHz  part  is 
used  for  digital  terrestrial  TV  (DTT)  and  audio  programme  making  and  special  events  (PMSE) 
equipment (essentially wireless microphones). Therefore, this spectrum is heavily used and is of very 
high value to both the broadcasting and mobile sectors. 

In  2012,  the  World  Radiocommunication  Conference  (WRC),  the  International  Telecommunications 
Union (ITU) conference which revises the binding Radio Regulations, decided that the 694-790 MHz 
('700 MHz') band should be allocated as of 2015 to both Broadcasting and Mobile services in Region 1 
(Europe and Africa). This has triggered an international debate over the use of the UHF band4 more 
generally.  It  is  highly  inefficient  to  operate  broadcasting  networks  in  the  same  frequency  band  as 
wireless  broadband  (WBB)  networks  (with  both  uplink  and  downlink  traffic5)  because  of  their 
respective  technical  characteristics.  Hence  each  Member  State  will  have  to  decide  how  it  intends  to 
use the UHF band in the future.  

At WRC-15 there were discussions about whether the sub-700MHz band (470-694 MHz) should also 
be allocated to both Broadcasting and Mobile services. The Commission did not support such action 
because the EU has a complex set of competing interests of wireless broadband and of its audiovisual 
model with its tradition of free-to-view public service broadcasting. The proposal was not approved at 
WRC-15 but it was agreed to review the allocation of the 470-960 MHz at a future WRC in 2023.  

This  initiative  relies  on  a  long  and  comprehensive  stakeholder  consultation  process.  In  2013,  Vice 
President Kroes tasked former Commissioner Pascal Lamy to chair a High Level Group consisting of 
mobile, broadcasting and media sectors' representatives to find a common position on the UHF band's 
future use. The Lamy Report, based on this dialogue, recommends repurposing the 700MHz band for 
WBB  while  sustaining  the  European  audiovisual  model  (See  Annex  10.5.3)  and  respondents  to  its 
Public Consultation expressed support for coordinated EU action.  

Member  States'  representatives  have  adopted  a  Radio  Spectrum  Policy  Group  (RSPG)  Opinion6 
supporting a coordinated EU approach for the provision of WBB services in the 700MHz band. The 
RSPG  recommended  the  use  of  a  legislative  measure  to  set  a  common  deadline  for  making  the  700 
MHz available for effective use, accompanied by an implementing decision to harmonise the technical 
conditions of use of the 700 MHz band for WBB on the basis of a report delivered by the European 
Conference  of  Postal  and  Telecommunications  Administrations  (CEPT).  There  is  therefore  an 
opportunity  at  the  EU  level  to  provide  certainty  as  to  the  future  use  of  the  UHF  band  and  give 
stakeholders  time  to  prepare  and  adapt,  thereby  minimising  the  cost  of  change  and  maximising 
consumer benefits in line with the DSM's objectives. 

1 COM (2015) 192final  
2 The ability of being pervasively connected to Internet with an acceptable quality of service  
3 Commission Decision 2010/267/EU 
4 In this document the Ultra High Frequency (UHF) band is intended to describe the range from 470 to 790 MHz 
5 "Downlink-only" mode means the restriction of all transmissions in a wireless system, independent of its 
technology, to unidirectional transmission from central infrastructure stations (such as a TV broadcasting tower 
or a mobile base station) to portable or mobile terminals (such as TV sets or mobile phones).. Uplink is the 
transmission path in the reverse direction  
6 Radio Spectrum Policy Group (19 February 2015) 

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2.  Problem Definition 

2.1.  What is the problem 

Fragmented national approaches to meet the growing demand for scarce spectrum below 1GHz could 
ultimately result in a failure to satisfy the connectivity needs of the DSM.  

Innovative  applications  in  sectors  such  as  media  and  telecommunications  as  well  as  transport, 
healthcare  or  energy,  impose  new  requirements  on  connectivity  in  terms  of  capacity,  quality  and 
ubiquity.  Audiovisual  services  are  increasingly  being  delivered  via  alternative  platforms,  including 
wireless  broadband  (WBB)  and  the  Internet.  Reliable,  trustworthy,  high-speed  and  affordable 
networks are therefore essential to deliver digital products and services.  

There are ITU-level actions and discussions concerning the 700 MHz band and the sub-700 MHz band 
and their availability for wireless broadband. The allocation of the 700 MHz band to both broadcasting 
and mobile services means that countries are free to use the band for one of those types of services. 
The EU should decide how it intends to use the UHF band in the future if it wants to avoid divergent 
national approaches and to influence international spectrum regulation. Many countries outside Europe 
have already decided to use the 700 MHz band in line with ITU regulations for International Mobile 
Telecommunications (IMT), so there is a rare opportunity for near-global harmonisation of this band. 
This  will  mean  EU  consumers  will  be  able  to  benefit  from  the  full  set  of  capabilities  of  equipment 
already on the market, i.e. take advantage of the existing quasi-world-wide market for mobile devices 
already 'tuned' to the 700 MHz band. 

The Digital Agenda for Europe (DAE) includes a broadband coverage target of at least 30 Mbps EU-
wide  by  20207.  While  both  fixed  and  mobile  networks  can  contribute  to  achieving  the  DAE  goals, 
mobile networks are more cost-efficient than fixed ones in rural areas and mobile (on-the-go) services 
and speed have become part of EU citizens’ lifestyles and EU companies’ competitiveness. Demand 
for pervasive wireless connectivity is therefore growing. 

Radio spectrum is a scarce resource essential to the operation of wireless networks; it is a crucial asset 
for the DSM connectivity needs but still suffers from fragmentation in its use and management. The 
challenge lies in making additional spectrum available to meet this demand.  

Parts  of  the  UHF  band  are  licensed  for  Digital  Terrestrial  Television  (DTT)  services  while  wireless 
microphones  operate  on  a  licence  exempt  basis  (general  authorisations)  in  the  'white  spaces'8  left 
unused by the licensed user. This band is in high demand because its coverage characteristics for rural 
areas and its in-door penetration capabilities in urban areas mean it is a particularly valuable spectrum 
band for high speed WBB deployment with nation-wide coverage (Figure 1).  

It  is  technically  extremely  challenging  and  very  inefficient  to  use  both  WBB  and  DTT  in  the  same 
spectrum at the same location, because they have fundamentally different technical characteristics. A 
Commission study published in 20149 concluded that technological developments that would remove 
this constraint (convergence) are not currently sufficiently advanced to offer a solution in the coming 
years. The UHF band is hence subject to competing claims from two wireless ecosystems, WBB and 
DTT.  

7 And 50% of the EU to be subscribed to broadband above 100 Mbps by 2020 
8 White spaces are portions of spectrum left unused at a specific time and location for technical reasons. 
9 Plum & Farncombe (2014) 

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Figure 1 - Radio spectrum – UHF band  

Source: BBC 

Any long term commitment relating to access to spectrum in the sub-1GHz band should meet demand 
and be attentive to the rapid developments in media and mobile technologies and markets.  Consumer 
trends show that the viewing of television content on TV sets increases with age while the viewing on 
the  Internet  decreases  (Figure  22).  It  remains  open  whether  this  is  a  generational  difference  or  a 
permanent evolution which would have an impact on TV audiences in the future, i.e. whether current 
youngsters will move to more linear TV viewing when they become older. Thus it is not possible to 
say now whether linear TV viewing (broadcasting service) will decline in the long term future or not. 

The  UHF  band  has  historically  been  a  crucial  asset  for  the  free-to-air  European  audiovisual  model 
promoting media pluralism and cultural diversity in many EU countries. The transition from analogue 
to digital television in the EU freed some spectrum, the 'digital dividend', in the 800MHz band and this 
spectrum was then made available for wireless broadband use (Annex 10.5.5).  Although cultural and 
media policies are the competence of the Member States, Article 167(4) TFEU requires the Union to 
take cultural aspects into account in its action, and in particular, to respect and promote the diversity of 
cultures10. In particular Digital Agenda for Europe action 8211 aims  to ensure the implementation of 
the provisions of the Audiovisual Media Services Directive. In some Member States DTT is the only 
platform distributing public service channels free-to-air while in others a free-to-view satellite service 
exists.  

The current use of the UHF band varies considerably between Member States with parts of this band 
licensed for broadcasting, WBB services and other uses, such as wireless microphones. The proportion 
of DTT households varies from less than 5% in Belgium to over 90% in Spain (Figure 2).  

10 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions (2005) which 
has  been  reinforced  by  Council  of  the  European  Union  (2008),  Conclusions  of  the  Council  and  of  the 
Representatives  of  the  Governments  of  the  Member  States,  meeting  within  the  Council,  on  the  Work  Plan  for 
Culture 2008-2010 (2008/C 143/06), OJ C 143. 
11 http://ec.europa.eu/digital-agenda/en/pillar-vii-ict-enabled-benefits-eu-society/action-82-implement-
audiovisual-media-services-directive 

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Figure 2 – Penetration of total DTT by country as a percentage of television households12, 2014 

> 80% 

60-79% 

30-59% 

< 30% 

Source: IHS Technology (2015)  

Some of these households are so-called primary DTT households (i.e. their primary TV receives the 
DTT  channels)  while  others  are  not,  meaning  that  their  primary  TV  receives  channels  from  another 
platform  (cable,  satellite  or  IPTV).  This  is  related  to  the  availability  and  penetration  of  other  TV 
platforms illustrated in Figure 3. For example both Italy and France have a total DTT penetration of 
over  80%.  However,  while  in  Italy  DTT  represents  a  share  of  about  75%  of  TVs,  in  France  DTT 
represents  a  share  of  only  about  45% of  TVs,  because  the  alternative  platforms  have  a  considerably 
greater presence in that country. 

Figure 3 – Market shares of television platforms across Europe 

12 Households with a TV 

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Source:  EAVO  (2011,  2012),  e-Communications  Household  Survey  (2013),  Yearly/Quarterly  reports  from 
National  Regulatory  Authorities,  Digitalisierungsbericht  2013  (die  medienanstalten)  Farncombe  analysis  and 
research 

Therefore,  in  response  to  the  increasing  demand  for  spectrum  in  the  UHF  band,  Member  States  are 
also likely to have different approaches to its future use. 'Early movers' such as France and Germany 
have already proceeded to assign the '700 MHz band' to mobile broadband services on the basis of the 
ITU  co-allocation  decision  (Annex  10.5.6).  These  countries  have  taken  into  account  the  constraints 
that will arise from the need for cross-border coordination and have set long deadlines for the coverage 
obligations associated with the 700 MHz band. 

Other Member States such as Sweden and the UK have made public commitments to follow along the 
same lines. The current DTT licence expiry date, the public commitments, the auction dates and the 
auction revenues are detailed in Figure 4 below

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Figure 4 – Current status of the current licences and future intentions with respect to the 700MHz band in EU 28 

*        one DTT MUX in 2026 
**     one DTT MUX in 2031 
***   repurposing the 700MHz band would result in a positive net benefit of € 77million according to the Frontier Economics study  

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The  absence  of  an  EU-wide  vision  and  common  legislation  for  the  UHF  band  will  create 
fragmentation  in  the  use  of  the  UHF  band  within  the  Union.  Member  States  will  act  within  their 
country but will be unable to control how and when neighbouring countries might act. This will lead to 
uncertainty  for  investors  wishing  to  deploy  innovative  mobile-based  services  across  Europe.  Such 
fragmentation  could  be  detrimental  to  the  Union's  internal  market  for  several  reasons  explained  in 
detail in the next section. 

Figure 5 below summarises the problem and indicates the problem's drivers and consequences. This 
Impact Assessment accompanies a Decision of the European Parliament and the Council to coordinate 
the  use  of  the  UHF  band,  in  particular  to  coordinate  the  change  of  use  of  the  700  MHz  band  and  a 
Commission implementing measure to harmonise its technical conditions of use as well as to ensure 
regulatory certainty for the use of the 'sub-700MHz band'. 

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Figure 5 - Parts of the problem, drivers and consequences table 

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2.2.  Who is affected, in what ways and to what extent? 

The existing EU harmonised spectrum for WBB below 1 GHz has been assigned in nearly all Member 
States  (Annex  10.5.6).  Mobile  operators  request  that  additional  spectrum  below  1GHz  be  made 
available  to  wireless  broadband  services  to  allow  them  to  meet  increasing  demand  for  mobile  data 
traffic through better coverage of high speed broadband in rural areas and improved indoor coverage 
in urban areas.  

Given radio waves travel across national borders, the use of the UHF band in one Member State has an 
impact on the type of use possible in neighbouring countries. In practice, if a Member State introduces 
WBB  in  the  700MHz  band  before  its  neighbours,  it  could  cause  interference  to  DTT  users  in 
neighbouring countries in areas up to 100 kilometres from the border which represents about 13% of 
the  EU  population13.  This  problem  would  hence  be  particularly  relevant  in  Member  States  where  a 
large  proportion  of  the  population  lives  within  reach  of  signal  transmissions  from  neighbouring 
countries.  Hence  this  Member  State  might  have  to  limit  WBB  deployment  in  border  areas  and/or 
conclude  cross-border  coordination  agreements  with  its  neighbours.  For  smaller  Member  States  this 
could mean that they would not be able to clear the 700 MHz without international coordination. 

Thus, a fragmented approach to the UHF band and in particular to the release of the 700 MHz band 
can generate uncertainty and hinder investments in high-speed mobile networks in the EU. It therefore 
risks  depriving  EU  citizens  of  access  to  better  and  lower  cost  broadband  services  with  speeds  of  at 
least 30MB/s, especially in rural areas, and of enhanced indoor penetration. Also, EU citizens will not 
benefit fully from the economies of scale (generated by markets outside of Europe) for the equipment 
that uses the 700MHz band. 

A Union UHF band strategy should encourage vibrant telecoms and audiovisual markets and sustain 
the European audiovisual model. 

2.3.  How would the problem evolve 

There is consensus that mobile traffic is growing, particularly due to the increase of video streaming, 
and that more spectrum will be needed to increase the capacity of mobile networks. The precise extent 
of  this  growth  remains  controversial  but  even  the  most  conservative  estimates  have  mobile  traffic 
growing at about 25% per year. This will lead to demand for spectrum in excess of what is currently 
available in the short and medium term in all Member States14.  

This traffic is carried partly over mobile networks (3G and 4G) and partly (about 70%) offloaded, i.e. 
carried  over  Wi-Fi  onto  fixed  networks  (Figure  19).  Wi-Fi  operates  at  higher  frequencies  (e.g.  the 
harmonised  5  GHz  band)  where  unused  spectrum  is  still  available.  The  offloaded  traffic  hence 
alleviates the pressure on spectrum below 1 GHz but Wi-Fi cannot offer mobility (on-the-go) services 
and is only available if there is a fixed network; it will thus only partially absorb mobile traffic growth. 

The  extent  of  future  demand  for  DTT  audiovisual  services  to  large  screens  for  home  use  remains 
uncertain. The roll out and the technological developments of fixed broadband (cable and fibre) and of 
satellite  broadcasting  services  could  change  the  role  and  cost-effectiveness  of  the  different  TV 
platforms. Consumer trends in the consumption of audiovisual content, with the increasing importance 
of  non-linear  content,  user-created  content  and  sharing  as  well  as  consumption  on  mobile  devices, 

13 Based on a proxy from espon.eu (20% of EU27 population living within 45 minutes of the border) and average 
EU28 DTT penetration (63%) from IHS Technology 
14 Analysis Mason (2013) 

14 

 
 
 
 
 
 
 
 
                                                            
might have an impact on the demand for traditional linear TV. A change in DTT demand would have 
an impact on spectrum demand and/or on the efficiency of use of current DTT spectrum. 

3.  Why the European Union should act  

EU action is desirable because of the following considerations: 

Efficient  use  of  spectrum:  given  the  ITU  international  framework,  a  common  EU-level  frequency 
designation  would  incentivise  DTT  and  WBB  actors  to  make  timely  transitions  towards  more 
spectrum efficient technologies needed to cope with growing demand for spectrum below 1GHz. 

Securing investment for 5G networks: an early EU decision will ensure regulatory consistency and is 
therefore likely to provide increased certainty to investors and companies over the future availability 
of spectrum for DTT and WBB use. This is likely to foster the substantial network investments needed 
to meet the Union’s connectivity needs. Mobile services using such improved networks will help drive 
innovation and growth in telecommunications and in other sectors. An EU approach would facilitate 
scaling-up these services in the European market.  

Stakeholder  alignment:  The  Lamy  Report  recommends  that  the  700  MHz  band  should  be  made 
available  for  wireless  broadband  by  2020  and  that  downlink-only  wireless  broadband  use  could  be 
flexibly  introduced  in  the  sub-700  MHz  band.  High  Level  Group  members  supported  it  in  public 
statements. The subsequent Public Consultation on the Lamy Report also clearly showed respondents' 
support  for  EU  action  (see  Annex  10.2.3).  Member  States  adopted  an  RSPG  Opinion15  that  also 
supports such EU action. The RSPG recommends that the EU develops a strategy on the future use of 
the  UHF  band  taking  into  account  decisions  and  developments  on  the  700MHz  band  as  well  as  all 
political, economic, regulatory and technical elements. 

Benefits  from  economies  of  scale  and  promoting  innovation:  a  common  frequency  designation  and 
common  adoption  of  technical  conditions  would  result  in  a  500  million  consumer  market, 
simultaneously  benefiting  from  and  further  contributing  to  the  near-global  harmonisation  of  the  700 
MHz band. Device and network equipment manufacturers will benefit from the consequent economies 
of scale flowing from a near-global harmonisation of the 700 MHz band.  

The European audiovisual model: The audiovisual model is based on the rationale that public funding 
should support public service broadcasting, that cultural diversity, freedom of information and media 
pluralism  are  maintained  and  that  broad  access  is  given  to  events  of  societal  importance.  In  some 
Member  States  a  free  television16  based  model  is  established  with  related  public  interest  obligations 
such as universal coverage (see Annex 10.5.3). It will be important to respect these founding  values 
when addressing the long term future of the UHF band, while recognising that the implementation of 
such values must be adapted to a future characterised by multiple networks and platforms, including 
OTT17 delivery, distributing both linear (programmed) and non-linear (on-demand) audiovisual media 
content.  

Based  on  Article  114(1)  TFEU,  the  European  Parliament  and  the  Council  adopted  Decision 
676/2002/EC18 on a regulatory framework for radio spectrum policy in the European Community. The 

15 Bibliography reference (RSPG, 2015) 
16 As defined in the Audiovisual Media Services Directive 2010/13/EU, free television means broadcasting on a 
channel,  either  public  or  commercial,  of  programmes  which  are  accessible  to  the  public  without  payment  in 
addition  to  the  modes  of  funding  of  broadcasting  that  are  widely  prevailing  in  each  Member  State  (such  as 
licence fee and/or the basic tier subscription fee to a cable network) 
17 Over the top services provided over broadband 
18 O.J. L 108, 24.4.2002, pp. 1–6 

15 

 
 
 
 
 
 
 
 
 
                                                            
results of the ongoing evaluation and review of the EU telecoms framework will be presented at the 
earliest by mid-2016 and, given its complexity and wide-ranging  nature, it might take two  years for 
legislative measures flowing from that review to be adopted and enter into force, which would be too 
late  for  an  orderly  reallocation  of  the  700  MHz  band.  The  review  of  the  telecoms  framework  will 
address broad policy objectives, while the aim of this initiative is a targeted intervention on a specific 
frequency band. 

In its Work Programme for 2015, the Commission has indicated that it will complement the review of 
the  telecoms  regulatory  framework  with  a  timely  and  coordinated  release  of  the  700MHz  band  in 
Europe.  

This initiative is an integral part of Decision 2012/243/EU19 establishing a multiannual radio spectrum 
policy programme (RSPP). Article 3(b) of the RSPP states that Member States and the Commission 
shall cooperate to allocate at least 1200 MHz of appropriate spectrum by 2015 to meet the increasing 
demand for wireless data traffic thereby allowing the development of commercial and public services, 
while  taking  into  account  important  general  interest  objectives  such  as  cultural  diversity  and  media 
pluralism. Article 4 of the RSPP provides the legal basis to harmonise the technical conditions for the 
availability  and  use  of  frequency  bands  for  a  specific  application  at  EU  level;  such  technical 
harmonisation  measures  are  expected  to  ensure  more  efficient  use  of  spectrum  and  enhance  the 
internal market. Such harmonised spectrum will ensure that innovative services can be provided to EU 
citizens  and  promote  development  and  innovation  in  priority  sectors  such  as  audiovisual  or  WBB 
services,  including  the  Internet  of  Things  (IoT).  The  EU  currently  counts  1030MHz  of  harmonised 
spectrum  for  wireless  broadband  (Figure  33).  Timely  release  of  the  700  MHz  band  can  thus  be 
achieved within the context of the current framework and in pursuit of the RSPP and DAE broadband 
target objectives.  

The EU will act with two initiatives:  

i) the proposal of a European Parliament and Council Decision for the entire UHF broadcasting 
band including 700MHz and sub-700Mhz band, and  
ii)  an  implementing  decision,  adopted  through  comitology  procedure,  to  designate  and  make 
available  the  700MHz  for  the  use  of  wireless  broadband  services  with  harmonised  technical 
conditions of use based on technical parameters agreed within the CEPT.  

4.  Policy objectives 

Any EU action should comply with the ITU Radio Regulations and the Geneva Agreement of 2006 
(GE06)  which  protects  digital  terrestrial  television  in  cross-border  territories  and  could  thus 
geographically constrain WBB deployment. EU action will have to include the effective management 
of interference to digital terrestrial television outside EU borders.  

Our proposed legal measures aim to avoid a fragmented approach by Member States to meeting the 
demand for UHF spectrum as a means of providing ubiquitous low-cost, high-quality WBB services. 
Two general objectives have been detailed, accompanied by specific objectives. 

Figure 6 – General and specific objectives table 

General Objectives 

Specific Objectives 

Foster the development of 
the Digital Single Market 
which is built on reliable 

  Identify spectrum bands which can be used to meet growth 
in  wireless  broadband  services,  while  sustaining  the 
founding  principles  of  the  European  audiovisual  model 

19 O.J. L 81, 21.3.2012, pp. 7–17 

16 

 
 
 
 
 
 
                                                            
high-speed networks 

(Annex 10.5.3)  

  Ensure  wireless  broadband  connectivity  (coverage)  across 

the European territory 

  Promote  competition, 

innovation  and 

technological 

neutrality. 

  Avoid interference between WBB and DTT services 

  Ensure that the use of the UHF band contributes to secure 
the public interest and consumer benefits while facilitating 
investments and market transformation  

  Support  the  use  of  more  efficient  technologies  and 

standards  

Encourage an efficient 
management and use of the 
radio spectrum reflecting its 
social, cultural and economic 
value 

5.  Policy options 

5.1.  Identified policy options 

A future strategy for the UHF band should be able to adapt to the evolving broadcasting and mobile 
market  realities  while  taking  into  account  trends  in  technology  and  consumer  behaviour.  It  should 
include  the  timely  and  coordinated  repurposing  of  sufficient  additional  spectrum  (including  the 
700MHz  band)  in  the  EU  territory  to  ensure  the  full  economic  benefits  of  wireless  broadband 
connectivity in the EU. 

Any EU action should comply with ITU Radio Regulations. The Geneva Agreement of 2006 (GE06) 
governs  the  use  of  the  frequency  band  470-862  MHz  and  protects  DTT  in  cross-border  territories. 
Thus,  a  release  of  the  700MHz  band  for  WBB  in  Europe  will  have  to  include  the  effective 
management of interference with DTT outside the Union. Deployment of WBB along external borders 
is  subject  to  bilateral  cross-border  coordination  agreements.  Cross-border  coordination  with  Russia 
was concluded in October 2015. 

Four policy options, presented in the table below with their provisions for the 700MHz and the sub-
700MHz bands, have been considered to address the problem and to meet the policy objectives. The 
following main inputs have been considered: (i) the Lamy report of 2014, (ii) the results of the public 
consultation  on  the  Lamy  report,  (iii)  the  RSPG  Opinion  and  (iv)  the  Commission  study  on  the 
Economic  and  Social  Impact  of  Repurposing  the  700MHz  band  for  Wireless  Broadband  Services  in 
the European Union. 

Option 1- Baseline scenario – No action at Union level 

17 

 
 
 
 
 
 
 
In the baseline scenario, the EU will neither take action on the 700MHz band nor on the sub-700MHz 
band.  

Option 2 - Coordinated designation and authorisation of the 700MHz band for wireless broadband by 
2020 and reservation of the sub-700MHz frequency band for DTT and audio PMSE.  

Option 2 entails the coordinated release of the 700MHz band for wireless broadband and reservation 
of the sub-700 MHz band for DTT and audio PMSE.  

A  Commission  proposal  to  the  European  Parliament  and  Council  would  provide  for  a  timely  and 
synchronised release of the 700MHz band for WBB and provide clarity as to the future use of the sub-
700 MHz band. 

A  Commission  Implementing  Decision  would  require  Member  States  to  put  the  700MHz  band  into 
effective  use  for  electronic  communication  services  under  harmonised  technical  conditions  (such  as 
common channelling arrangements and power limits to avoid harmful interference). 

To mitigate the disruption caused by the changing conditions of use of the band, a transition roadmap 
is included in this Option. Member States should: 

i) 

ii) 

iii) 

the  planning  and  preparations, 

adopt  and  communicate  to  all  other  Members  States  and  the  Commission  a  national 
international  frequency 
roadmap  (including 
coordination,  frequency  management,  technical  activities,  communications,  support  to 
trade stakeholders and potential compensatory measures) by June 2017;  
conclude all necessary cross-border coordination agreements within the Union by the end 
of 2017; and 
implement  measures  to  ensure  a  minimum  impact  on  audiovisual  services  broadcasters 
and audio PMSE users – i.e. legal certainty and protection.  

the 

Member  States  will  also  be  encouraged  to  consider  imposing  coverage  obligations  when  granting 
licenses in the 700 MHz band, possibly linked to incentives such as network/spectrum sharing in order 
to  achieve  coverage  targets,  with  a  view  to  meeting  the  DAE  broadband  objectives  and  fostering 
connectivity in line with the DSM strategy.  

18 

 
 
 
 
 
 
 
 
 
 
Option 2 provides for the sub-700MHz band to be reserved for DTT and PMSE. This legal protection 
will  be  reassessed  by  2025  based  on  an  evaluation  of  DTT  and  WBB  demand  and  technological 
developments. 

Option 3 – Coordinated designation and authorisation of the 700MHz band for wireless broadband by 
2020  and  coordinated  designation  of  the  sub-700MHz  band  for  flexible  use  which  safeguards  the 
provision of audiovisual media services (AVMS) to mass audience, via maintenance of DTT or other 
downlink-only  distribution,  including  free-to-view  distribution,  as  well  as  audio  PMSE,  subject  to 
national demand. 

* PMSE use in 'white spaces' 

Option 3 entails the adoption of EU measures to ensure a coordinated release of the 700MHz band for 
wireless broadband as in Option 2. 

Option 3 differs from Option 2 in the provisions for the sub-700MHz band. In this Option, Member 
States  can  decide  whether  to  maintain  their  current  DTT  platform  (and  in  this  case  it  should  have 
priority vis-à-vis wireless broadband services in neighbouring Member States) or whether to gradually 
reduce  available  (and  possibly  underutilised)  spectrum  serving  DTT  or  to  lift  current  restrictions  on 
technology and service neutrality and introduce other uses besides DTT within the sub-700MHz band 
according to their national circumstances (Articles 9 and 9a of the Framework Directive 2002/21/EC).  

Access  to  spectrum  for  DTT  is  safeguarded  to  the  extent  judged  necessary  by  individual  Member 
States.  Traditional  DTT  broadcasting  services  may  thus  co-exist  in  the  sub-700MHz  band  with 
wireless broadband services limited to downlink-only mode20. In practice, flexible use of the sub-700 
MHz band means that specific channels or locations not used for terrestrial broadcasting could become 
available  for  downlink-only  services  or  applications  served  by  an  alternative  technology  (such  as 
WBB),  operated  by  existing  right  holders  or  newcomers,  depending  on  national  circumstances.  A 
widening  of  possible  uses  of  a  band,  in  terms  of  either  technology  or  services,  does  not  necessarily 
require a change in the assignee of the band, so such a change could effectively enlarge existing rights 
– while still being potentially subject to national general-interest service restrictions. 

20 This technical solution is supported by broadcasting and mobile manufacturers in a paper from Digital Europe  

19 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
Member  States  which  choose  to  allow  downlink-only  services  will  have  to  ensure  cross-border 
coordination with countries where DTT is operational. The use of downlink-only services and their co-
existence  will  have  to  be  technically  harmonised  at  Union  level  subject  to  studies  and  a  subsequent 
technical  implementing  measure  adopted  by  the  Commission  pursuant  to  Article  4  of  the  Radio 
Spectrum  Decision.  Studies  to  clarify  the  conditions  of  co-existence  of  DTT  and  'down-link  only' 
WBB should be launched as soon as possible and could be conducted in the framework of a mandate 
to CEPT. 

This flexibility is compliant with the ITU Radio Regulations (RR) on the sub-700 MHz band, which 
stipulate an allocation solely to the broadcasting service21 for ITU Region 1. Uplink services will not 
be allowed as they would entail severe service limitations due to the necessary interference mitigation 
with  respect  to  broadcasting  services  required  to  comply  with  the  ITU  RR  and  with  the  GE-06 
agreement, in particular at the EU outer borders.  

As  in  Option  2,  an  evaluation  process  is  envisaged  by  2025  to  reassess  the  provisions  for  the  sub-
700MHz  band.  In  this  Option,  the  evaluation  will  also  be  a  means  to  re-examine  the  relevance  of 
prioritising  audiovisual  media  services  in  the  470-694  MHz  band  and  the  need  to  limit  its  use  for 
downlink-only. Any significant changes resulting from such evaluation would take until about 2030 to 
be implemented, thus giving the relevant market actors predictability up to this date. 

Option 4 – Coordinated designation and authorisation the whole UHF broadcasting band for wireless 
broadband services by 2020. 

Option 4 implies the complete clearance of DTT from the UHF band (700MHz and sub-700MHz) and 
the designation and assignment of the whole UHF band to WBB services (and possibly other sectorial 
services22, including audio PMSE) by 2020. Comprehensive coverage obligations would be linked to 
WBB licences in the UHF band in order to establish a fully connected Union.  

In this Option, EU coordination will define a common UHF roadmap for clearing DTT from the UHF 
band  (as  opposed  to  transition)  that  should  serve  as  high-level  guidance  to  national  and  EU-level 
policies.  

Figure 7 – Policy options 

Option 1 

Option 2 

Option 3 

Sub-700MHz band 
No action 

700MHz band 
No action 

Reservation for DTT and audio PMSE 
to exist and develop 
Flexibility  of  use:  Member  States  can 
maintain  DTT  or  introduce  WBB  in 
provided 
downlink-only 

mode, 

Vacate DTT, make available for WBB 

Vacate DTT, make available for WBB 

21 The broadcasting service in ITU terminology is "a radiocommunication service in which the transmissions are 
intended for direct reception by the general public. This service may include sound transmissions, television 
transmissions or other types of transmission". 
22 Other services could include Public Protection and Disaster Relief (PPDR) or Internet of Things applications. 

20 

 
 
 
 
 
 
 
 
 
 
                                                            
Option 4 

audiovisual  media  services  to  mass 
audiences are safeguarded 
Vacate DTT, make available for WBB  Vacate DTT, make available for WBB 

5.2.  Discarded Options 

Non-regulatory  options  have  been  discarded  as  spectrum  is  limited,  implying  the  need  for  a  certain 
form  of  public  management  and  regulation  that  guarantees  equal  opportunity  for  use  and  prevents 
interference.  The  policy  options  envisaged  in  this  report  are  based  on  regulatory  action  as  any  non-
binding measure (i.e. to stimulate voluntary agreements and self-coordination between stakeholders) is 
unlikely to ensure efficient use of spectrum. 

The timeframe of the proposed legal measures to release the 700MHz band could range from 2018 to 
2022  as  proposed  in  the  Lamy  Report  and  in  the  Lamy  Report  Public  Consultation  responses  (see 
Annex 10.2.3). An earlier date than 2020 cannot be envisaged as a transition period is required to clear 
the band and designate and assign it to its new use. 

Option  3  allows  Member  States  to  decide  on  the  scope  of  the  sub-700MHz  band  according  to  their 
national circumstances, and therefore could result in greater technology and service neutrality than is 
currently  prevalent.  The  obligation  for  Member  States  to  reserve  part  of  the  sub-700MHz  band  for 
WBB  (i.e.  with  uplink  as  well  as  downlink)  before  the  2025  evaluation  was  discarded  as  this  could 
undermine future DTT investments and unlike the case of the 700MHz band itself, does not appear to 
be uniformly necessary across the EU to achieve the right balance between growing WBB demand and 
audiovisual  distribution  in  keeping  with  widespread  policy  preferences  of  the  Member  States.  This 
Option was discarded at it is not possible to identify a portion (or even a certain quantity of spectrum) 
that would be appropriate in each Member State to provide DTT with enough spectrum to maintain its 
current offering and develop in the future. A 'one size fits all' solution cannot be envisaged in this case. 
If the Union decides there is a value to sustaining its audiovisual model, it should not deny one of the 
main platforms the opportunity to compete and innovate.  

6. 

Impacts of the different options 

The aim of this section is to assess the social and economic impacts of the policy options considered 
covering actions on both parts of the UHF band: the 700MHz band and the sub-700MHz band. 

The categories of impacts considered are described in the table below.  

Figure 8 – Key categories of impacts considered 

Category of Impact 

Key Issues 

Specific EU region 
and/or Member State  
Macroeconomics and 
capital expenditure 
Consumer welfare   

Digital Single Market and 
Digital Economy 
Legal and Administrative 
changes 

Member State geography and actual use of the UHF band  

Economic growth and employment: investments and transition costs 
for incumbent operators in the 700MHz band  
Consumer benefits from wider and better availability of wireless 
broadband to provide on-line services and from the availability of TV 
through the DTT platform 
Completion of the Digital Single Market and EU companies and SMEs 
benefits from the digital economy  
Network re-planning and re-assessment of regulatory conditions of 
spectrum use and potential coverage obligations  

Cultural diversity 

Impact on the quality, quantity  and distribution of audiovisual content  

21 

 
 
 
 
 
 
 
 
There is no specific environmental impact in any of the options. Introducing WBB services in the 700 
MHz  band  would  not  require  the  installation  of  more  masts  as  the  base  stations  already  used  for 
800MHz and 900MHz would be sufficient.  

Member States are already required to draw up waste management planning as foreseen in the Waste 
Framework  Directive23  for  the  disposal  of  consumer  equipment  (TVs  and  set-top-boxes).  TV  life 
cycles are shorter than in the past mainly due to improvements in design and resolution while DVB-T2 
compliant  TVs  are  already  in  the  market.  From  studies  conducted  by  Sky  TV24  93%  of  the  carbon 
footprint  comes  from  customer  use  of  the  equipment  rather  than  manufacturing,  distribution  and 
disposal.  An  accelerated  replacement  driven  by  this  initiative  would  be  compensated  by  the  more 
efficient energy consumption characteristics of newer equipment.  A timely decision on the 700MHz 
band would allow the integration of any technical adjustments in the next TV models. 

If  the  EU  decides  to  repurpose  the  700MHz  band,  the  date  set  to  clear  the  band  is  important  when 
assessing the impact of timescales on the costs of transition. The impact of the options can be assessed 
separately  for  mobile  network  operators,  broadcasters  (distribution  and  content),  creative  industries, 
equipment manufacturers, citizens and regulatory authorities. 

6.1.  Option 1 – Baseline scenario – no action at Union level 

In Option 1, Member States in addition to France and  Germany and probably starting with the ones 
that  have  made  public  commitments  in  this  regard,  will  act  independently  or  in  small  groups  for 
coordination purposes  and  the  future  designation  of  the  700MHz  and  the  sub-700MHz  band  will  be 
decided  on  a  national  or  regional  basis.  It  is  difficult  to  predict  which  countries  will  act  and  when, 
beyond the information already provided in Figure 4.  

Some Member States facing the biggest difficulties in clearing the band might decide not to act and 
maintain their current DTT use in the 700 MHz band. Member States would be able to determine the 
amount  of  spectrum  made  available  for  wireless  broadband  in  the  700MHz  and/or  the  sub-700MHz 
bands  and  be  able  to  change  the  available  frequencies  and  their  relevant  technical  conditions 
unilaterally,  even  though  a  non-binding  agreement  has  been  reached  by  the  CEPT  on  the  technical 
conditions  of  use  of  the  700  MHz  band  for  WBB.  Member  States  are  also  likely  to  take  action 
according to national timescales, so that where the 700MHz is repurposed, the 700MHz band will be 
made available for wireless broadband at widely different times. This will substantially decrease the 
efficiency  of  spectrum  use  and  the  benefits  of  the  WBB  services  operating  in  the  700MHz  band  as 
WBB  services  availability  will  be  constrained  by  high-power  DTT  interference.  This  will  lead  to 
delays in WBB network roll-out, in particular in border rural areas, which will experience a lack of or 
poor  WBB  coverage.  Also  border  urban  areas  might  encounter  capacity  bottlenecks  for  high-speed 
broadband  due  to  spectrum  shortage.  Member  States  will  have  to  invest  considerable  effort  in 
concluding  cross-border  coordination  agreements  with  each  of  their  neighbours  to  try  and  limit  the 
interference problems.  

A lack of EU coordination thus means that the interference issues will last over several years. Until the 
last  Member  State  has  released  the  700  MHz  band  from  DTT  there  will  be  a  need  for  cross-border 
coordination agreements between neighbouring countries using different technologies within the 700 
MHz band, i.e. WBB and DTT. Cross-border coordination will be applicable to every Member State 
from the beginning of the transition and will have to be reviewed every time a Member State performs 
the  step  change  in  use  of  the  700  MHz  band  from  DTT  to  WBB.  First  movers  (like  Germany  and 
France) will have to conclude early cross-border coordination agreements and may need to postpone 
WBB deployment  in the 700 MHz along  their borders, thus depriving  their citizens living  in border 
areas  of  the  possibility  to  access  high-speed  WBB.  This  problem  would  be  most  acute  at  the  outer 

23 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and 
repealing certain Directives 
24 Sky+ HD Box Environment Factsheet 

22 

 
 
 
 
 
 
                                                            
borders of the Union such as between the Baltic Member States and Russia, where the conclusion of 
cross-border  agreements  and  their  conditions  (subject  to  ITU  coordination  rules)  may  impose 
significant restrictions on WBB deployments. 

As the Union (and the rest of the world) is increasingly relying on connectivity and ubiquitous access 
to  online  goods  and  services,  lagging  behind  in  the  digital  market  would  have  a  potential  spill-over 
effect on other sectors. In addition, the EU market will not benefit fully from the available economies 
of scale in terms of network roll-out and equipment availability and interoperability.  

The  transition  to  more  efficient  spectrum  technologies  is  already  taking  place  as  DTT  seeks  to  stay 
competitive  vis-à-vis  other  TV  platforms  like  cable  and  satellite.  All  countries  in  Europe  are  using 
DVB  standards  but  different  countries  use  different  compression  technologies  (Annex  10.5.4).  An 
uncoordinated  timing  for  release  of  the  700  MHz  could  also  limit  the  incentive  to  upgrade  DTT 
technologies and roll out new high-speed networks. This would have a stagnating effect on the DTT 
market  and  the  completion  of  the  DSM,  as  well  as  delaying  the  availability  of  equipment  for  the 
700MHz band.  The overall risk is that Option 1 would hinder the Union's innovation and reduce its 
competitiveness. 

Neither  stakeholders  in  the  context  of  the  Lamy  Report  nor  Member  States  in  the  RSPG  Opinion 
envisaged this option.  

It  was  not  possible  to  quantify  the  impact  of  this  option  which  is  by  its  very  nature  varied  and 
unpredictable.  The  lack  of  a  coordinated  EU  action  means  it  is  not  possible  to  pre-determine  which 
Member States will take which decision within which deadline, thus making the variables of the cost 
and benefit analysis too wide to determine an estimate. 

6.2.  Option  2  –  Coordinated  designation  and  authorisation  of  the  700MHz  band 
for  wireless  broadband  by  2020;  reservation  of  the  sub-700MHz  frequency 
band for DTT and audio PMSE. 

6.2.1.  Coordinated  designation  and  authorisation  of  the  700MHz  band  for 

wireless broadband by 2020 

The designation of the 700MHz band for WBB by 2020 would identify additional spectrum to meet 
the  increasing  demand  of  wireless  data  traffic  (Figure  15-19)  and  contribute  to  the  RSPP  and  DSM 
objectives. Only adding the 700 MHz band to existing EU harmonised spectrum for WBB in the 800 
MHz  and  900  MHz  bands  would  allow  mobile  operators  in  a  competitive  3-4  player  market  to 
efficiently  offer  citizens  ubiquitous  broadband  connectivity  at  30  Mb/s  or  more  by  202025  as  they 
would  benefit  from  spectrum  holdings  of  at  least  20  MHz  for  the  deployment  of  4G  technology26. 
Figure 7 below illustrates the current variations in LTE coverage in EU Member States. The coverage 
is provided as a country average and will in fact be higher in urban areas than in rural ones. 

Figure 9 – 4G mobile broadband (LTE) coverage as a percentage of households 

25 In line with DAE and RSPP connectivity targets 
26 Both LTE and LTE-A with multiple-antenna configurations may offer an aggregate downlink speed per base 
station exceeding 150 Mb/s within 20 MHz of used spectrum 

23 

 
 
 
 
 
 
 
                                                            
Source: Eurobarometer (2014)  

The additional spectrum for WBB in the 700MHz band has specific properties which are particularly 
well suited to: i) coverage, i.e. providing high-speed rural broadband (in terms of geographical reach 
and quality of the signal), and thus ensuring ubiquitous connectivity for personal communications and 
also  for  IoT  including  connected  cars  and  ii)  in  improving  indoor  penetration,  i.e.  the  signal  inside 
buildings  in  urban  areas.  The  enhanced  broadband  coverage  would  make  high  speed  WBB  more 
widely available to EU citizens, thereby enabling them to access more and better services, including in 
particular  audiovisual  content,  on  their  handsets.  The  700  MHz  band  is  hence  an  essential  spectrum 
asset for achieving the Union's broadband coverage and connectivity targets, thereby establishing the 
necessary foundations for a fully functioning DSM. 

Figure 10 – Capacity and coverage characteristics of different spectrum bands27 

Source: Ericsson Connectivity Report, 2014 

In urban areas indoor coverage would increase, allowing consumers to continue to benefit from their 
on-the-go  services  as  they  move  in  and  out  of  buildings  and  other  indoor  locations  such  as  tunnels, 
conference  centres,  stations  etc.  This  will  have  a  positive  impact  on  the  up-take  of  mobile 
subscriptions  giving  on-the-go  access  to  the  Internet.  Figure  9  illustrates  the  current  uptake  of  such 
mobile subscriptions in the EU. 

Figure 11 – Percentage of EU households with a mobile subscription giving access to the Internet 

27 The relative cell coverage is expressed in radius of coverage of each mobile network cell 

24 

 
 
 
 
 
 
                                                            
60-79% 

30-59% 

< 30% 

Source: Eurobarometer (2014) 

Mobile operators confirmed in interviews with the study team that their expected return on investment 
is higher in the 700 MHz band due to the higher cost of building sites in other [higher] bands. Such 
positive characteristics could be fully exploited if the timely granting of licenses in the 700 MHz band 
is accompanied by coverage obligations to increase investments and achieve broadband targets and the 
overarching DSM connectivity objectives. Such coverage targets would ensure that the capabilities of 
the spectrum are effectively utilised and that citizens will benefit from faster mobile data services and 
extra  capacity  in  rural  areas  and  improved  indoor  coverage  in  urban  areas,  as  well  as  extended 
coverage of rail and roads.  

The Commission estimates, based on the prices paid for spectrum in 'equivalent' bands (i.e. 800 MHz 
and 900 MHz), that mobile operators will pay over EUR 11 billion for the 700 MHz spectrum if made 
available. This is the most common method of benchmarking spectrum value for a specific band in the 
EU,  since  auctions  are  now  almost  the  exclusive  means  of  assigning  WBB  spectrum.  This  estimate 
seems reliable when compared with the actual prices paid in France and Germany as well as with the 
estimated benefit of the 700 MHz for Ireland contained in a study by Frontier Economics (Figure 19). 

The  additional  WBB  capabilities  would  also  have  wider  economic  and  social  benefits  as  mobile 
broadband  is,  and  will  continue  to  be,  an  essential  catalyst  for  the  European  economy  (including 
SMEs) in existing and entirely new industries such as public services, health, connected cars and smart 
meters  and  grids.  Connectivity  will  enable  new  revenue  streams  and  business  models,  drive 
efficiencies  and  improve  the  delivery  of  on-line  services  to  EU  citizens  and  therefore  also  facilitate 
social inclusion. In addition, Europe will both contribute to and benefit from the economies of scale of 
a near-global harmonisation of this band.  

Given that deployment of 5G technology is expected to begin by 2020, dedicated IoT networks could 
access  the  700MHz  band  duplex  gap  (the  spectrum  unused  between  uplink  and  downlink  traffic)  as 
they do not need a lot of bandwidth but require good coverage conditions. This spectrum will hence 
facilitate  the  development  of  innovative  services,  whether  they  rely  on  ubiquitous  coverage,  such  as 
connected cars or higher WBB speeds, such as e-health and audiovisual services.  

25 

 
 
 
 
 
 
 
 
 
 
 
Gartner  estimates  that  IoT  will  support  services,  such  as  those  ranked  below,  with  total  annual 
spending of about EUR 55 billion in the EU28 countries in 201628. 

Figure 12 – Top ten connected applications in 2020 

Connected cars 
Clinical remote monitoring 
Assisted Living 
Home and building security 
Pay-as-you-drive Car insurance 
Car usage (new business models) 
Smart meters 
Traffic management 
Building automation 
Electric Vehicle Charging 

Source: GSMA Connected Living Programme29 

In terms of impact in the EU, more details on the top two applications can be given as examples: 

  Connected cars revenue in EU28 will reach around 25 billion EUR in 202030 mainly driven by 
driver assistance and safety applications. Deployment and uptake of connected cars services is 
clearly  dependent  on  the  availability  of  ubiquitous  connectivity  and  could  benefit  from  the 
introduction of 5G IoT components for connected cars by 202031. 

  mHealth could save 99 billion EUR in healthcare costs in the EU and add 93 billion EUR to 

the EU GDP in 201732 alongside an improvement in patient welfare; 

EU companies would also benefit from pervasive wireless broadband services with a positive impact 
on growth and competitiveness. Other potential benefits for society would be the use of the 700MHz 
band for specific mobile broadband services such as Public Protection and Disaster Relief (PPDR). 

Existing  licensed  DTT  broadcasting  services  (public  and  private)  would  have  less  spectrum  in  the 
UHF  band  available  for  their  operations.  DTT  services  will  have  to  be  accommodated  in  the  sub-
700MHz  and  use  more  efficient  spectrum  technologies  in  order  to  maintain  the  same  quantity  and 
quality of available channels. This migration will generate costs for broadcasting network operators as 
they will have to reconfigure their networks to use only the sub-700MHz band. The repurposing of the 
700MHz  band  will  require  significant  changes  to  the  broadcasting  networks  (planning,  transmitters, 
antennas  for  distribution,  encoders,  multiplexing)  in  order  to  accommodate  broadcasting  services  in 
the sub-700MHz band. 

DTT  network  operators  will  be  required  to  restack  their  channels  or  upgrade  to  more  efficient 
spectrum technologies. This might imply a reduction in the number of TV channels in some Member 
States, especially with restacking, and/or that some services might not be available on both the old and 
the new system (see Annex 10.5.7). Restacking will cost between 180 and 245 million euro EU-wide 
while upgrading to DVB-T2 will cost between 450 and 890 million EU-wide depending on whether 
broadcasters  upgrade  to  MPEG4  or  HEVC  compression  technologies.  In  addition  DTT  viewers  will 
have to update their TV sets or set-top-box to receive the DTT channels after transition. This means 
consumers will have to invest in a new TV set or set-top-box.  

28 Based on world estimate from Gartner, with EU28 estimate based on EU28 share of world GDP 
29 http://www.gsma.com/newsroom/press-release/gsma-announces-the-business-impact-of-connected-devices-
could-be-worth-us4-5-trillion-in-2020/ 
30 World estimate from Strategy&, EU28 estimate based on EU28 share of world GDP 
31 5G vision: https://5g-ppp.eu/wp-content/uploads/2015/02/5G-Vision-Brochure-v1.pdf 
32 Price Waterhouse Coopers 

26 

 
 
 
                                                            
Manufacturers of consumer equipment might experience a faster replacement of consumer equipment 
than  would  be  the  case  in  the  absence  of  an  EU  measure  because  DTT  viewers  will  need  DVB-T2 
compliant  equipment  (television  or  set-top-box)  by  202033.  The  Commission  study  estimates  that 
consumer costs will amount to between EUR 616 million (for primary households only) and EUR 1.3 
billion  (for  all  DTT  households)  to  upgrade  to  DVB-T2  MPEG4  set-top-box  and  EUR  1.6  to  3.3 
billion  respectively  to  upgrade  to  DVB-T2  HEVC  set-top-box  by  2020.  This  corresponds,  per 
household  concerned,  to  EUR  40  for  a  DVB-T2  MPEG4  set-top-box  and  EUR  100  for  a  DVB-T2 
HEVC set-top-box. 68% of these costs will arise in France, Italy and Spain where consumers will need 
new  equipment  if  they  want  to  continue  receiving  DTT  services.  On  the  other  hand  these  countries 
have  relatively  low  LTE  coverage  and  WBB  take-up  and  will  hence  benefit  from  the  better  quality 
WBB offers based on the additional 700 MHz spectrum, particularly in rural areas. 

The  majority of undertakings in the cultural and creative industries34 are SMEs. In particular PMSE 
users are the undertakings likely to be affected by a significant reduction of available 'white spaces' for 
their  operations  in  the  700  MHz  band.  The  Commission  study  estimates  that  PMSE  costs  for  a 
transition  by  2020  will  amount  to  200  million  euro  based  on  30%  of  current  audio  PMSE  users 
operating in the 700 MHz band.  At the same time, it should be noted that wireless microphones can 
access spectrum in other tuning ranges outside the 700 MHz band and efficiency can also be improved 
by  making  more  use  of  digital  technology.  The  Commission  anticipated  spectrum  needs  for  audio 
PMSE (see Annex  10.3) and ensured a baseline of frequency bands suitable for average daily use in 
an  Implementing  Decision35  on  harmonised  technical  conditions  of  radio  spectrum  use  by  wireless 
audio PMSE equipment in the Union (see also the related impact assessment36). This decision provides 
harmonised core bands amounting to 29 MHz and an obligation of outcome for Member States to find 
an additional 30 MHz of spectrum for PMSE. The proposed implementing decision on the 700 MHz 
band will give Member States the possibility of using the duplex gap and guard bands of the 700 MHz 
band for PMSE, thus making available 25 MHz of the 30 MHz identified in the PMSE decision and 
harmonising  its  technical  conditions  of  use.  The  proposed  implementing  decision  does  not  mandate 
PMSE  use  as  this  is  not  uniform  across  and  within  Member  States  and  is  thus  best  left  to  national 
authorities  to  decide.  The  Commission  will  also  request  an  Opinion  from  the  RSPG  concerning  a 
Union Strategy for PMSE services37.  

Other  cultural  and  creative  industries  specialized  in  audio-visual  content  production  will  not  be 
affected as the DTT platform would continue to be amongst the platforms to distribute their content 
and since they would benefit from a better high-speed WBB which would be better suited to distribute 
their content to a wider group of citizens. 

For  regulatory  authorities,  costs  and  benefits  will  depend  on  the  applicable  national  regulatory 
framework – i.e. the possibilities of license withdrawal, renewal or extension in other frequency bands 
and/or other administrative costs. Some of the current licences in the 700 MHz band will have to be 
amended in order to enable transition to mobile broadband services, depending on their date of expiry 
(Figure 27). This will entail procedural steps in terms of due process pursuant to the principles set by 

33 For cable receivers, additional immunity requirements on the basis of current standardization activities will be 
set in place when introducing mobile services in the 700MHz. This will ensure that cable TV receivers (DVB-C) 
will be protected against interference. 
34 Germany has already announced compensatory measures, see Annex 10.5.6.  
34 Independent producers are often SMEs but incumbent broadcasters are large organisations 
35 Commission Implementing Decision 2014/641/EU 
36 https://ec.europa.eu/digital-agenda/en/news/commission-implementing-decision-01092014-spectrum-use-
wireless-audio-pmse 
37  As  part  of  the  follow-up  to  this  initiative,  and  on  the  basis  of  the  Opinion  requested  from  the  RSPG,  the 
Commission will consider the need to identify additional frequencies to be made available for audio PMSE, and 
if necessary launch a strategy to put this into effect; which may include a number of frequencies located in the 
UHF band. 

27 

 
 
 
 
 
 
                                                            
the  electronic  communications  regulatory  framework,  including  Directive  2002/20/EC  and  in 
particular Article 14 thereof on amendment of rights and obligations. Pursuant to that Article, Member 
States  shall  ensure  that  the  rights,  conditions  and  procedures  concerning  rights  of  use  may  only  be 
amended in objectively justified cases and in a proportionate manner, taking into consideration, where 
appropriate, the specific conditions applicable to transferable rights of use for radio frequencies. To do 
so,  notice  shall  be  given  in  an  appropriate  manner  of  the  intention  to  make  such  amendments  and 
interested  parties,  including  users  and  consumers,  shall  be  allowed  a  sufficient  period  of  time  to 
express  their  views  on  the  proposed  amendments,  which  shall  be  no  less  than  four  weeks  except  in 
exceptional circumstances.   

The costs of cross-border interference and coordination between WBB and DTT would be reduced as 
these  agreements  would  be  concluded  by  2017,  in  line  with  a  milestone  that  would  be  set  in  the 
legislative measure to prepare the way for using WBB by 2020. In addition cross-border interference 
vis  à  vis  third  countries  would  benefit  from  a  common  EU  position  as  opposed  to  single  Member 
States  on  their  own  in  terms  of  external  border  coordination.  Member  States  submitted  a  RSPG 
Opinion38  that  supports  EU  action  in  the  form  of  a  Decision  of  the  European  Parliament  and  the 
Council and a complementing Commission Implementing Decision describing the technical conditions 
for the use of the 700MHz band.  

The  scale  of  these  impacts  may  vary  considerably  across  Member  States  depending  on  the  country 
topology,  DTT  portfolio  as  well  as  network  parameters.  This  diversity  represents  a  challenge  to  the 
coordinated release of the 700MHz band. Given the varied importance of DTT as a television delivery 
platform  as  well  as  its  network  topology  in  different  Member  States,  the  Commission  study  on  the 
Socio-economic  impact  of  repurposing  the  700MHz  band  organised  Member  States  into  groups 
representing a certain topology for the assessment of transition costs (Figure 38). 

Restacking  cannot  accommodate  about  20%  of  the  current  channels,  so  the  assumption  is  that 
broadcasters  will opt for upgrading to more efficient technologies which also enables them to better 
compete with other platforms. The total minimum and maximum costs for the three groups of affected 
stakeholders  (broadcasters,  audio  PMSE  and  DTT  users)  are  listed  for  both  MPEG4  and  HEVC 
upgrades with minimum and maximum values depending on the cost assumption for each transmitter 
(Figure 40) in Annex 10.5.7). 

Figure 13  – Estimated total costs of clearing the 700 MHz band with upgrade to DVB-T2/HEVC 
and DVB-T2/MPEG4 in EU 28 (€ million)  

Source: LS telcom & VVA 

6.2.2.  Reservation of the sub-700 MHz frequency band for DTT and PMSE 

The protection of the DTT platform in the sub-700MHz band would safeguard and sustain the current 
European audiovisual model in countries relying on the DTT platform for such purposes by providing 
regulatory  certainty  as  to  the  availability  and  location  of  spectrum  for  broadcasting  services.  This 
would  accelerate  network  investment  to  update  broadcasting  technologies  while  promoting  research 
and  innovation  on  new  means  of  audiovisual  content  distribution.  The  upgrade  to  more  spectrum 

38 http://rspg-spectrum.eu/wp-content/uploads/2013/05/RSPG15-595_final-RSPG_opinion_UHF.pdf 

28 

 
 
 
 
 
 
 
                                                            
efficient technologies estimated in the section above will densify broadcasting networks in the sub-700 
MHz  band  resulting  in  less  'white  spaces'  available  for  wireless  audio  PMSE.  These  users  will 
encounter more difficulties in accessing spectrum; an exact estimate of the costs generated by this is 
not possible as it depends on which equipment is being used on which frequency and the intensity of 
use  at  a  specific  time  and  location  (this  varies  widely  for  PMSE).  As  detailed  in  Annex  10.3, 
Commission  Decision  2014/641/EU  obliges  Member  States  to  make  available  at  least  59  MHz  for 
PMSE (in different ranges, also outside the UHF band). This constitutes a baseline across Europe. In 
case of higher national demand a Member State could also reserve spectrum for PMSE in the sub-700 
MHz band, subject to national rules. 

Given  the  cross-border  nature  of  radio  spectrum,  reserving  the  sub-700MHz  band  for  DTT  services 
means  that  Member  States  less  dependent  on  the  DTT  platform  will  be  prevented  from  using  this 
spectrum  for  the  roll-out  of  next  generation  WBB  networks  that  can  create  the  conditions  for  the 
provision of IoT and other innovative services, including social and public service innovation. 

Non-linear  TV  is  increasing  fast.  Indeed,  more  and  more  audiovisual  content  is  being  consumed 
through platforms other than linear television39; streaming video is growing strongly, primarily driven 
by  over-the-top  (OTT)  providers  like  YouTube  and  Netflix.  This  is  confirmed  by  the  increasing 
number  of  commercial  agreements  between  non-linear  streaming  content  providers  and  telecom 
operators which contribute to accelerating the distribution of OTT streaming services (Figure 28). 

Despite the growth of mobile viewing, linear TV generally remains the predominant means of viewing 
audiovisual  content  with  over  80%  of  viewing  time  in  the  EU  Big  540  still  dedicated  to  linear  TV 
(Figure 25). EU citizens choose to watch linear television in spite of the increasing alternatives; pre-
scheduled content thus appears to have inherent value for them. At the same time demand for linear 
TV is declining in some Member States41. 

Around 125 million European households in 2014 received television channels via the DTT platform. 
About  half  of  these  only  have  DTT  technology42  with  no  additional  services  from  other  platforms. 
Promoting freedom of choice and expression, cultural diversity and media pluralism is not intrinsically 
linked to the terrestrial TV platform but in some Member States DTT is currently the only platform 
supporting  these  general  policy  objectives  whereas  in  others  these  are  fulfilled  through  obligations 
imposed on cable and satellite platforms. Despite the competitive role of alternative platforms in the 
distribution of audiovisual content, the number of DTT  households is forecast to remain  stable until 
2020 in the European Member States (IHS Technology, 2015). 

6.3.  Option  3  –  Coordinated  designation  and  authorisation  of  the  700MHz  band 
for  wireless  broadband  by  2020  and  coordinated  designation  of  the  sub-
700MHz  band  for  flexible  use  for  audiovisual  and  wireless  broadband 
services [in downlink-only mode], according to national demand.  

6.3.1.  Coordinated  designation  and  authorisation  of  the  700MHz  band  for 

wireless broadband by 2020 

The socio-economic impact of the designation and authorization of the 700MHz band is the same as 
the one assessed in Option 2.  

39 Linear TV is intended here as the mass distribution of scheduled programs 
40 EU 'Big 5' are France, Germany, Italy, Spain and United Kingdom 
41 http://www.telecompaper.com/news/linear-tv-falls-to-39-of-total-video-viewing-time--1100112 organised a 
survey through their Dutch consumer panel which is likely to have some inherent bias towards younger, more 
Internet friendly consumers and which shows 61% of viewing time goes to non-linear content 
42 IHS Technology  

29 

 
 
 
                                                            
6.3.2.  Flexibility approach to the sub-700MHz band  

In  Option  3,  the  'flexibility  approach'  allows  for  the  co-existence  of  DTT  and  WBB  services  in 
downlink-only  mode,  which  sufficiently  mitigates  interference  with  DTT  thus  allowing  remaining 
DTT  services  in  a  country  and  along  its  borders  to  operate  effectively.  Cross-border  coordination 
ensures that DTT broadcasting services in border territories will not be disrupted by WBB services in 
neighbouring countries 

Option 3 enables Member States to decide on the use of the sub-700MHz band. They could maintain 
the current DTT services or deploy (some) downlink-only WBB services, according to their national 
circumstances. A combination of WBB services in downlink-only mode and/or DTT services will be 
provided in the sub-700MHz band depending on the economic viability and social acceptance in each 
Member  State.  For  Member  States  that  decide  to  lighten  if  not  lift  current  technology  or  service 
restrictions on the use of the sub-700MHz band  they will be asked  to align to harmonized technical 
parameters  of  use  of  the  sub-700MHz  band,  detailed  in  a  Commission  Implementing  Decision43,  to 
avoid  divergent  approaches  at  national  level  and,  therefore,  the  risk  of  interference.  By  allowing 
Member  States  the  flexibility  to  decide  the  best  designation  of  the  sub-700MHz  band  the  positive 
economic impacts are maximised and the negative social impacts are minimised.  

This  Option  will  not  only  give  priority  to  DTT  services  and  thus  ensure  a  continuing  future  for 
terrestrial  television  delivery  where  needed  but  will  also  potentially  enable  mobile  operators  to 
increase their downlink capacity to respond to consumer demand where the spectrum is available (by 
acquiring  new  spectrum  or  leasing  it  from  current  right-holders).  Downlink  and  uplink  speeds  and 
traffic are asymmetric with a greater need for downlink than uplink capacity mainly due to increasing 
video and app-based mobile use (Figure 22-24). Audio PMSE users will encounter more difficulties in 
accessing  'white  spaces'  due  to  the  densification  of  DTT  networks.  A  cost  benefit  analysis  of  this 
flexibility cannot be calculated as it will depend on the individual Member States' decisions. Member 
States  take  the  view  in  the  RSPG  opinion  that  there  is  a  need  to  have  technically  appropriate  and 
sufficient spectrum for PMSE and consider that depending on developments and requirements of such 
services, there could be a need to identify additional spectrum. The RSPG recommends that the PMSE 
industry develops more advanced and spectrum efficient technologies. 

The Lamy Report and the RSPG support this Option as it would provide both flexibility and certainty. 
The  flexibility  allows  Member  States  to  introduce  different  WBB  services  in  the  sub-700MHz  if 
compatible  with  broadcasting  needs.  Certainty  (in  terms  of  frequency  resources  for  DTT)  will  be 
provided in Member States that would rather use the sub-700MHz band for broadcasting services and 
audio PMSE in white spaces. In promoting DTT and WBB co-existence, this Option would also pave 
the way for converged and innovative broadband-broadcasting services in the longer term when such 
technology matures. 

In  addition,  this  Option  foresees  an  obligatory  market  evaluation  by  2025.  The  Commission,  in 
cooperation with the Member States, will carry out an assessment on the developments relating to the 
use of the sub-700MHz band taking into account social, economic, cultural and technological aspects; 
the  outcome  would  determine  whether  any  regulatory  changes  are  needed.  The  Lamy  Report 
advocates  a  more  efficient  and  flexible  approach  to  radio-spectrum  management  so  that,  as  far  as 
possible,  market  forces  and  technological  innovation  determine  the  optimal  use  of  spectrum,  with  a 
view  to  optimising  economic  benefits.  This  evaluation  was  broadly  supported  by  respondents  to  the 
Lamy Report public consultation (Annex 10.2.3). 

43 Following the harmonisation of the 700MHz band, the Commission will trigger the process to adopt a future 
Commission Implementing Decision specifying the technical framework to allow a flexible use of the sub-
700MHz band.  Such an Implementing Decision would still require a mandate to CEPT, pursuant to the Radio 
Spectrum Decision (2002/676/EC). 

30 

 
 
 
                                                            
6.4.  Option  4  –  Coordinated  designation  and  authorisation  of  the  whole  UHF 

broadcasting band for wireless broadband services by 2020.  

Option  4  would  provide  mobile  operators  with  the  entire  UHF  band  to  roll-out  next  generation 
networks (LTE technology) to provide new and innovative services. Harmonised coverage obligations 
as  envisaged  in  Option  2  would  be  extended  to  the  additional  sub-700MHz  band  thus  providing 
extensive coverage and indoor penetration for wireless broadband. The target of 1200 MHz for WBB 
set  by  the  RSPP  would  be  exceeded  contrary  to  the  Commission's  2014  conclusion  that  "there  is 
currently no need  for  additional  spectrum  harmonisation,  beyond  the  1200  MHz  target,  in  the  range 
400 MHz-6 GHz for licensed wireless broadband"44. The Commission launched a public consultation 
in  September  2015  to  look  into  the  needs  for  Internet  speed  and  quality  beyond  202045.  Option  4 
would include the harmonisation of the technical conditions allowing the provision of WBB services 
across the Union and thus create a single EU-wide market for network roll-out and equipment. Even 
though  this  Option  makes  available  the  entire  UHF  band,  for  the  purpose  of  estimating  costs  and 
benefits, the Commission still considers the 700 MHz band as a separate portion to the sub-700MHz 
because: 

 
 
 

the technical parameters of the band plan and of devices are not available; 
there is no global harmonization of the sub-700MHz; 
the additional needs for WBB are currently being evaluated by the Commission 

Therefore, it is not currently possible to quantify the benefits of releasing the sub-700MHz for WBB. 

Allowing  both  downlink  and  uplink  wireless  broadband  services  in  the  sub-700MHz  band  is  not 
compatible  with  current  DTT  services.  DTT  services  will  not  be  protected  in  Option  4,  so  de-facto 
they  will  be  unable  to  operate  in  the  UHF  band  as  of  2020.  The  release  of  the  whole  UHF  band  to 
wireless  broadband  would  be  likely  to  have  significant  impacts  on  the  structure  of  the  broadcasting 
market in some Member States. DTT could operate in the VHF band (e.g. in Finland)46 but this band 
only offers 56 MHz of spectrum, it is already used for digital radio47 in many Member States and TV 
antennas are not currently adapted to transmit on this band. 

The  audiovisual  content  (including  pay-tv  channels  only  distributed  on  this  platform)  would  be 
distributed  across  the  available  alternative  platforms.  This  might  include  innovative  distribution 
channels  such  as  LTE  broadcasting  or  OTT  (internet)  distribution.  These  could  stimulate  cultural 
diversity by providing opportunities for new forms of cultural expression such as interactive content 
platforms  (Youtube,  Vimeo,  etc.)  but  there  may  be  a  risk  of  a  diminished  offer  and  content 
prioritisation as operators tend to promote content on a purely commercial basis (Annex 10.5.3). The 
imposition  of  legal  compulsory  must  carry  obligations,  requiring  innovative  platforms  to  provide 
content, could mitigate this risk and best-efforts on internet distribution and other measures to ensure 
quality of service would provide optimal conditions to facilitate their emergence.  

Option 4 does not entail any network transition costs since broadcasting towers will still be used for 
radio and mobile network operators will mainly reuse their existing infrastructure to deploy services 
on the additional spectrum. Broadcasting network operators (in some countries separate from the TV 
distribution)  will  experience  lower  returns  as  their  infrastructure  will  be  used  only  to  transmit  radio 
signals. Also, the costs of cross-border interference and coordination between WBB and DTT would 
only arise vis-à-vis third countries as per the GE06 agreement. Option 4 implies large costs for audio 

44 Commission Report COM(2014)536 on the Radio Spectrum Inventory 
45 https://ec.europa.eu/eusurvey/runner/InternetConnectivitySurvey 
46 According to information collected in the RSPG Report on "Spectrum for Wireless Broadband and 
Broadcasting in the Frequency Range 400 MHz to 6 GHz" (RSPG13-522, pp.24),  4 Member States use the VHF 
broadcasting band III for DTT while the band is used mostly for Digital Audio Broadcasting. 
47 WorldDAB indicated that Digital Audio Broadcasting services are on air in Band III (174-230 MHz) in 
Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, and the UK. 

31 

 
 
 
 
                                                            
PMSE users. The Commission study estimates that PMSE costs for a transition by 2020 will amount 
to  667  million  euro.  PMSE  users  may  be  able  to  use  the  duplex  gaps  between  uplink  and  downlink 
WBB  but  it  is  uncertain  how  much  spectrum  would  be  available  and  whether  that  would  allow  for 
their  average  daily  operations  in  the  UHF  band  and  how  Member  States  would  tackle  spectrum 
requirements for extraordinary events.  

Finally, Option 4 will generate costs related to the loss of the DTT sector as a whole and the strong 
pressure on audio PMSE users. It is not possible to estimate these costs but they would include the loss 
or drastic change of business plan of current DTT broadcasters as well as the related job losses. 

Citizens  would  experience  better  coverage  and  better  quality  of  innovative  services  provided  by 
mobile  operators.  On  the  other  hand  they  will  see  their  TV  choice  reduced  by  one  platform.  Those 
currently  using  DTT  as  their  only  TV  platform  (some  DTT  households  already  view  television  via 
another  platform  in  addition  to  DTT)  will  have  to  migrate  to  alternative  platforms:  satellite,  cable, 
IPTV  or  to  innovative  distribution  models.  Migrating  to  an  alternative  platform  (satellite  or  cable) 
might imply costs up to 9 billion euro depending on the platform (when available) and the equipment 
(Annex 10.5.8).   

Depending on the Member State and specific location of the viewer, a number of issues might arise 
with alternative platforms for the provision of audio-visual services: 

  Satellite networks use higher frequency spectrum than DTT and allow high data rates which 
eliminates the trade-off between numbers of channels, and higher audio and video quality than 
DTT.  Its  coverage  is  100%  but  viewers  might  experience  reception  issues  in  densely 
populated urban areas (because of obstacles preventing the dish to receive the signal) and in 
the  very  northern  part  of  Europe  (i.e.  northern  parts  of  Finland  and  Sweden).  Although  a 
number of free-to-air satellite channels are available, some households may prefer to subscribe 
to pay-tv services; 

  The  cable  platform  is  not  available  in  all  EU  countries  and  does  not  typically  cover  remote 

areas; 

  Some  questions  remain  about  the  resilience  of  wireless  broadband  infrastructure  and  its 
capacity  to  ensure  a  high-quality  viewing  experience.  According  to  Ofcom's  paper  on  the 
Future  of  Free  to  View  TV  (2014),  significant  challenges  need  to  be  overcome  in  order  for 
WBB  networks  to  be  able  to  offer  consumers  a  viewing  experience  comparable  with  DTT 
networks; 

  Mobile  networks  do  not  currently  offer  the  same  levels  of  coverage,  network  reliability  and 

robustness as DTT, even if their potential in this regard is steadily growing. 

This Option was not envisaged in the Lamy Report. The RSPG Opinion did consider it and noted that 
the  introduction  of  uplink  would  require  ITU  Region1-wide  agreement  to  synchronise  different 
implementations and transition periods in these countries. The RSPG Opinion concluded that it would 
be too challenging to agree on all the technical elements necessary to set up both cross-border bilateral 
and multilateral agreements with EU and non-EU countries and therefore did not prefer this Option. 

7.  Comparison of options 

For the comparison of the efficiency of options in Figure 11 we assumed that broadcasting transition 
costs  were  related  to  more  efficient  technologies  (DVB-T2  with  MPEG4  or  HEVC)  because 
restacking cannot accommodate the entire current DTT offer in terms of channels and quality. Figure 
11 also provides the costs for PMSE users and consumer equipment cost is assumed to be related to 
primary  DTT  households  as  other  DTT  households  would  already  be  viewing  content  from  an 
alternative TV platform. 

32 

 
 
 
 
 
 
The Commission considers that Option 3 best fulfills the policy objectives. On one hand, a full-scale 
repurposing  as  envisaged  in  Option  4  is  not  currently  considered  appropriate  as  DTT  still  has  an 
important role in many Member States. On the other hand, in light of the evolving trends of consumer 
viewing of audiovisual content, Option 3 provides the supplemental downlink flexibility and thus an 
opportunity  for  innovative  platform  development.  This  'flexibility  option'  safeguards  the  interest  of 
both DTT and WBB services in the sub-700MHz band – it would enable the creation of an innovation 
ecosystem  for  both  of  them.  The  positive  economic  impacts  would  be  maximized  and  the  negative 
social  impacts  minimized.  Even  though  the  cost  of  transition  is  lower  for  later  dates,  the  timely 
availability of the 700MHz band for WBB will benefit SMEs by promoting investment in connectivity 
to enable a range of new and innovative services and business models and will address the interference 
problems likely to arise as Member States decide to assign this spectrum to WBB. The 2020 timing is 
appropriate  as  it  would  enable  IoT  applications  in  the  context  of  5G  deployment  expected  to 
commence in 2020. 

Option 3 offers optimal legal conditions for traditional broadcasting services to co-exist with wireless 
broadband services in downlink-only mode provided that continued access to spectrum for terrestrial 
broadcasting as a primary user is guaranteed on the basis of national demand. 

This option aims to improve the conditions for the establishment and functioning of the DSM. In line 
with the Radio Spectrum Decision (676/2002/EC) and the RSPP (243/2012/EU) objectives, this policy 
option  proposes  a  sustainable  and  balanced  solution  to  achieve  the  DAE  goals  on  broadband  access 
and audiovisual policy (i.e. cultural diversity and creative content) in the UHF band. Releasing the 700 
MHz band for wireless broadband (with additional carrier aggregation along with the 800MHz48 and 
900MHz49 band) offers unique capabilities to provide sufficient coverage in rural areas and offer in-
building penetration in urban areas. 

Option 3  is the  best option  in terms of subsidiarity and proportionality. The subsidiarity principle  is 
respected because the initiative's objectives could not be achieved by Member States individually (as 
detailed  in  section  2)  while  at  the  same  time  allowing  national  circumstances  (in  the  sub-700MHz 
band)  to  be  taken  into  account.  The  flexible  use  of  the  sub-700MHz  band  is  proportionate  since  it 
addresses the problem and achieves the objectives in the most efficient way. Clearing the whole sub-
700MHz band for WBB,  as envisaged  in Option 4, would go beyond what is currently necessary to 
satisfy the demand for sub-1GHz spectrum needed to meet mobile traffic demand. 

At the same time, Option 3 provides regulatory certainty for DTT in the sub-700MHz band for those 
Member States that wish to maintain their current sub-700MHz DTT capacity. 

A  timely  and  coordinated  clearance  of  the  700MHz  band  in  the  EU  will  reap  the  full  economic 
benefits of mobile broadband connectivity in the EU by maximizing economies of scale and reducing 
operating  costs.  It is  essential that the 700MHz band  is  made available for WBB within a relatively 
short and synchronised time window to ensure the right incentives for rapid network roll-outs.  

The preferred option, in line with the Lamy report recommendation, is that by 2020 spectrum needs to 
be  assigned  to  mobile  networks.  This  does  not  happen  overnight  -  in  some  Member  States  complex 
reallocation procedures will have to be put in place. Past experience with 3G and 4G in the 800 MHz 
band has shown that this might take more than 24 months.  

The Commission has identified that the following operational objectives of the preferred option are: 

48  Decision  2010/267/EU  on  harmonised  technical  conditions  of  use  in  the  790-862  MHz  frequency  band  for 
terrestrial systems capable of providing electronic communications services in the European Union 
49 Decision 2009/766/EC on the harmonisation of the 900 MHz and 1 800 MHz frequency bands for terrestrial 
systems capable of providing pan-European electronic communications services in the Community amended by 
Decision 2011/251/EU 

33 

 
 
 
 
 
 
 
 
 
                                                            
  Allocate 60MHz50 of additional harmonised spectrum  in the 700MHz band towards the 1200 

MHz target; 

  Contribute  to  the  achievement  of  DAE  broadband  targets  by  2020  through  encouraging 

Member States to include coverage obligations in 700MHz licenses; 

  Ensure cross-border frequency coordination agreements within the Union as well as with non-

Union countries by 2017. 

In summary, Option 3 will: 

• 
• 
• 

Provide additional EU harmonised spectrum to meet growing mobile traffic demand by 2020; 
Contribute to DSM connectivity objectives and DAE broadband targets; 
Reduce  fragmentation  of  UHF  band  use  and  prevent  interference  between  WBB  and  DTT 
services; 
Facilitate market transformation towards more efficient technologies; 

• 
•  Adapt  to  new  forms  of  audiovisual  consumption  while  sustaining  the  current  free-to-view 

model; 

•  Allow Member States to choose whether to use (part of) the sub-700MHz for uses other than 

DTT and audio PMSE, under certain conditions. 

Article  6  of  Decision  243/2012/EU  establishing  a  multiannual  radio  spectrum  policy  programme 
(RSPP)  provides  that  Member  States  may,  where  appropriate  and  in  conformity  with  Union  law  (in 
particular  with  Union  State  aid  law),  ensure  that  the  direct  cost  of  migration  or  reallocation  of 
spectrum  usage  is  adequately  compensated  in  accordance  with  national  law.  Some  Member  States 
have already asked for guidance on cost compensation compatibility with EU State aid law (i.e. in the 
RSPG  Opinion).  On  the  basis  on  their  national  law,  Member  States  may  consider  the  adoption  of 
appropriate,  necessary,  proportionate  and  technologically  neutral  cost  compensation  measures  to 
mitigate the impact on consumers (households), PMSE users51 as well as to ensure the continuity of 
broadcasting  services.  When  considering  such  measures,  in  particular  for  broadcasters  with  running 
DTT licenses, Member States must comply with the principle of technological neutrality and take into 
account  the  relevant  decision  practice  of  the  Commission  in  the  area  of  State  aid52  as  well  as  the 
related  case  law  of  the  EU  Courts53.  In  some  instances,  measures  adopted  to  compensate  for  the 

50 N.B.: 60 MHz is the maximum amount that can be made available in the band 694-790 MHz due to technical 
reasons, including compatibility with a worldwide channelling arrangement that generates high economies of 
scale. 
51 The Commission approved state aid in several decisions. See, among others, N622/03 Digitalisierungsfonds – 
Austria,  OJ  C  228,  17.9.2005;  C25/04  Introduction  of  digital  terrestrial  television  (DVB-T)  in  Berlin-
Brandenburg  –  Germany,  OJ  L  200,  22.7.2006;  C24/04  Digital  terrestrial  television  in  Sweden,  OJ  L  112, 
30.4.2007; C52/05 Digital decoders in Italy, OJ L 147, 8.6.2007; N270/06 Subsidies to digital decoders with API 
– Italy, OJ C 80, 13.4.2007; N107/07 Subsidies to IdTV – Italy, OJ C 246, 20.10.2007; C34/06 Introduction of 
digital terrestrial television (DVB-T) in North Rhine-Westphalia, OJ L 236, 3.9.2008; SA.28685 Captación de 
Televisión Digital en Cantabria – Spain, OJ C 119, 24.4.2012; N671b/2009 – Digital switch-over in Slovakia, OJ 
C 39, 8.2.2011. 
52  State  aid  C  25/2004,  DVB-T  Berlin  Brandenburg;   State  aid  C  52/2005,  Digital  decoders;  planned 
Commission  decision  for  January  2016  on  State  aid  SA.32619  notified  by  the  Kingdom  of  Spain  for  the 
compensation of damages for the liberation of digital dividend. 
53 Case ECJ, C-222/04 of 10 January 2006, Cassa di Risparmio di Firenze, para. 131; Case ECJ, C-126/01 of 20 
November 2003, GEMO SA, para. 28; Case ECJ, C-53/00 of 22 November 2001, Ferring SA, paras. 19 ff; Case 
ECJ, C-143/99 of 8 November 2001, Adria-Wien Pipeline, para 38; Case ECJ, C-310/99, Italy v. Commission, 
para 251; Case ECJ, T-109/01 of 14 January 2004, Fleuren Compost BV  v. Commission, para. 54; Case ECJ, C-
251/97 of 5 October 1999, France v. Commission, para. 40. Case GC, T-177/07 of 15 June 2010, Mediaset v. 
Commission, case ECJ, C-403/10 P of 28 July 2011, Mediaset v. Commission. GC Case T-21/06 of 6 October 
2009,  Germany  v.  Commisssion  concerning  DVB-T  –  Berlin/Brandebourg,  GC  Cases  T-461/13  Spain  v. 
Commission,  T-462/13  Basque  Country  and  Itelazpi  v.  Commission,  T-463/13  and  T-464/13  Galicia  v. 
Commission  and   Retegal  v.  Commission,  T-465/13  Catalonia  and  CTTI  v.  Commission,  T-487/13  Navarra  v. 
Commission and finally T-541/13 Abertis Telecom and Retevisión v. Commission. 

34 

 
 
 
 
                                                            
withdrawal  of  rights,  where  such  compensation  does  not  exceed  the  prejudice  generated  by  the 
withdrawal, could be in certain circumstances consistent with Union State aid law. 

Figure 14  – Comparison of options across all dimensions considered  

effectiveness

coherence

efficiency

option 2

option 3

option 4

stakeholders

The scope of the legal approach would be different for the 700MHz and sub-700MHz bands. The EU 
strategy for UHF band should therefore comprise four major elements:  

i. 

harmonised technical conditions for WBB in the 694-790 ('700') MHz band via a Commission 
Implementing Decision. This Implementing Decision will contain the channelling arrangements 
for  2x30  MHz  of  spectrum  for  wireless  broadband (global  alignment  for  economies  of  scale), 
guard bands for protect services in neighbouring frequency bands, and four options for using the 
so-called  centre  gap  (25  MHz)  for  either  PMSE,  supplemental  WBB  downlink,  Public 
Protection and Disaster Relief or Machine to Machine Communications, depending on national 
demand. Any of these services would contribute to achieving a priority mentioned in the RSPP.   

In addition, a Decision of the European Parliament and the Council will 
ii. 

establish a binding, common deadline to ensure the assignment and effective use of 700MHz for 
WBB  services  across  the  Union  as  well  as  measures  for  coordinating  this  transition  while 
promoting coverage obligations;  
introduce  a  flexible  approach  whereby  Member  States  can  choose  a  shared  use  of  the  sub-
700MHz  band  for  TV  broadcasting  and  WBB  services  (downlink-only)  according  to  national 
circumstances, provided there is no interference with DTT-using Member States and priority is 
given to audiovisual services distribution;  

iii. 

iv.  mandate an evaluation of the proposed UHF legal  measure   no later than 1  January 2025 that 
will  enable  the  Commission  and  Member  States  to  re-assess  developments  and  adjust  the  EU 
strategy, if necessary.  

This solution would give legal certainty for providers of audiovisual services to mass audiences while 
enabling co-existence of wireless broadband technologies (downlink-only) where possible. 

35 

 
 
 
 
 
 
 
Option 

Option 1 - 
Base line;  
no EU action 

Option 2 – 
Coordinated 
repurpose of 
the 700 MHz 
band for 
WBB and 
reservation of 
the sub-700 
for DTT and 
audio PMSE 

Does not contribute to DAE broadband 
targets and DSM connectivity objectives 

Increased UHF band fragmentation : 
potential interference between WBB and 
DTT and lack of economies of scale 

Does not facilitate market transformation 
towards more efficient technologies 

(+) 700MHz 

Additional EU harmonised spectrum to 
meet mobile traffic demand by 2020 

Contributes to DAE broadband targets 
and DSM connectivity objectives 

Reduces fragmentation of UHF band use 
and prevents WBB and DTT interference  

Facilitates market transformation towards 
more efficient technologies 

Reduced availability of 'white spaces' for 
audio PMSE use 

Figure 15 - Comparison of options: effectiveness, efficiency, stakeholder views and coherence 

Effectiveness versus objectives 
(- negative; 0 neutral; +positive) 

Efficiency (million €) 

Stakeholders' views 
(- negative; 0 neutral; +positive) 

(-)   

No additional spectrum band harmonised 
at EU-level to meet mobile traffic demand 

0 

(-) 

Vast majority of respondents to Lamy Report 
Public Consultation  support a coordinated 
approach to repurpose the 700 MHz 

Member States support  a coordinated 
approach to repurpose the 700 MHz 

Coherence 
(- negative; 0 neutral; +positive) 

(-) 
Will  not  help  to  fulfil  RSPP  Art.  9 
'identify  1200  MHz  of 
goal  to 
spectrum for wireless broadband by 
2020'. 

Will not fulfil DAE target 30 Mbps 
broadband coverage by 2020 

Mobile 11400 
Broadcasters:       -659 
(HEVC) 
-888 (MPEG4) 
PMSE -200 
Consumer equipment: 
-616 (MPEG4) 
-1602 (HEVC) 

TOT: 8939 (HEVC) 
9696 (MPEG4) 

(+) 700MHz 

Vast majority of respondents support a 
coordinated approach to repurpose the 700 
MHz band but with no consensus on a single 
date (see Annex 10.2.3). Some national 
broadcasters prefer to leave the timeframe to 
national discretion. 

(+) 700MHz 
Will  contribute  to  RSPP  Art.  9 
'identify 1200 MHz of spectrum for 
wireless broadband by 2020'. 

Will  fulfil  DAE  target  of  30  Mbps 
broadband coverage by 2020 

Member States support a coordinated 
approach to repurpose the 700 MHz band as 
reported in RSPG Opinion and RSC. 

Decision  2014/641/EU  guaranteed 
a baseline of available spectrum for 
audio PMSE equipment 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(0) sub-700MHz 

Prevents Member States from using the 
sub-700MHz for uses other than DTT and 
audio PMSE 

(0) sub-700MHz 

Supported by broadcasters and content 
production industries in the Lamy Report 
public consultation 

Safeguards 
and 
audiovisual model 

sustains 

current 

Rejected by mobile network operators in the 
Lamy Report Public Consultation 

Option 3 – 
Coordinated 
release of the 
700 MHz 
band and 
coordinated 
designation of 
the sub-700 
for flexible 
use for 
audiovisual 
and WBB 
services 

(+) 700MHz 

Additional spectrum band harmonised at 
EU-level to meet mobile traffic demand 

Contributes to DAE broadband targets 
and DSM connectivity objectives 

Reduces fragmentation of UHF band use 
and prevents interference between WBB 
and DTT 

Facilitate market transformation towards 
more efficient technologies 

Mobile 11400 
Broadcasters:       -659 
(HEVC) 
-888 (MPEG4) 
PMSE -200 
Consumer equipment: 
-616 (MPEG4) 
-1602 (HEVC) 

TOT: 8939 (HEVC) 
9696 (MPEG4) 

(+) 700MHz 

Vast majority of respondents support a 
coordinated approach to repurpose the 700 
MHz with no consensus on a single date (see 
Annex 10.2.3). 

Member States support a coordinated 
approach to repurpose the 700 MHz as 
reported in RSPG Opinion and RSC. 

Reduced availability of 'white spaces' for 
audio PMSE use 

(+) sub-700MHz 

Allows Member States to choose whether 
to use the sub-700MHz for uses other 
than DTT and audio PMSE  

Value of supplemental 
downlink capacity 

(+) sub-700MHz 

The flexible use of the sub-700MHz is subject 
to diverging opinions of respondents 

and 

Safeguards 
audiovisual 
neighbouring countries' DTT 

model, 

sustains 

current 
including 

The flexible approach is envisaged in the 
Lamy Report and supported by mobile and 
broadcasting vendors, other stakeholders 
remain cautious until it is more clearly defined  

Member States support  the flexible use of the 
sub-700MHz (RSPG Opinion) 

37 

(-) sub-700MHz 
Will  prevent 
starting 
wireless services 

to 

some  MS 

from 
innovative 

introduce 

(+) 700MHz 
Will  contribute 
to  RSPP  Art.  9 
'identify  1200  MHz  of  spectrum  for 
wireless broadband by 2020'. 

Will  fulfil  DAE  target  30  Mbps 
broadband coverage by 2020 

Decision  2014/641/EU  guaranteed  a 
baseline  of  available  spectrum  for 
audio PMSE equipment 

(+) sub-700MHz 
Proportional 
that 
accommodates  the  different  current 
situations in Member States 

measure 

Coherent  with  EU  Audiovisual 
Media Services Directive 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(+) 700MHz  

Mobile 11400 

(+) 700MHz 

Vast majority of respondents support a 
coordinated approach to repurpose the 700 
MHz 

(+) 700MHz 
Will contribute to RSPP Art. 9 goal 
to  'identify  1200  MHz  of  spectrum 
for wireless broadband by 2020'. 

Option 4 – 
Coordinated 
repurpose of 
the UHF 
band (700 
MHz band 
and  sub-700) 
for WBB 

Additional spectrum band harmonised at 
EU-level to meet mobile traffic demand 

Contributes to DAE broadband targets 
and DSM connectivity objectives 

Reduces fragmentation of UHF band use 
and prevents interference between WBB 
and DTT 

Facilitate market transformation towards 
more efficient technologies 

Reduced availability of 'white spaces' for 
audio PMSE use 

(0) sub-700MHz 

Further EU harmonised spectrum to meet 
mobile traffic demand by 2020 

Does not safeguard and sustain current 
audiovisual model  

Reduced availability of 'white spaces' for 
audio PMSE use 

Member States support a coordinated 
approach to repurpose the 700 MHz band. 

Will fulfil DAE target 30 Mbps 
broadband coverage by 2020 

Decision  2014/641/EU  guaranteed 
a baseline of available spectrum for 
audio PMSE equipment 

(0) sub-700MHz 
Overachieves RSPP objective of 
1200 MHz 

Does  not  safeguard  and  sustain 
current audiovisual model 

Decision  2014/641/EU  guaranteed 
a baseline of available spectrum for 
audio PMSE equipment 

Additional value to 
mobile operators 

(0) sub-700MHz 

Supported by mobile network operators 

Rejected by broadcasters and content 
production industries  

Option discarded by the Member States 
(RSPG Opinion) 

PMSE -667 
Broadcast distribution: 
0 
Consumer equipment: 
-9000 

Reduced return on 
broadcast 
infrastructure 
End of DTT sector 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.  Monitoring and evaluation 

From the experience of a similar initiative, i.e. the release of the 800 MHz band, the Commission has 
identified some aspects that can be improved: a longer deadline, intermediate milestones and a better 
degree  of  assurance  as  to  what  will  happen  with  the  rest  of  the  UHF  band.  The  Commission  has 
identified the following milestones that need to be reached to ensure a coordinated release of the 700 
MHz band. These measures should provide an additional EU route that will facilitate MS to meet the 
final transition deadline: 

  Adopt a national transition plan no later than mid-2017 to promote a timely and synchronised 

time window for700MHz band release  

  Finish cross-border frequency coordination agreements within the Union as well as with non-

Union countries no later than December 201754   

  Allow the effective use of the 700MHz band (694-790MHz) for electronic communications 

services by 30 June 2020 

  Establish regulatory certainty and flexibility in spectrum use of the sub-700 MHz band to 

match Member State diversity in DTT penetration 

  Evaluation to assess market developments regarding the usage of the sub-700MHz band (470-

694MHz) no later than 2025 and adapt the regulatory framework as appropriate. 

The table below outlines the indicators of progress that will be monitored by the Commission Services 
to  evaluate  whether  the  objectives  of  this  initiative  are  being  met.  The  indicators  will  be  monitored 
through  various  sources  including  the  Commission's  missions  in  Member  States  and  permanent 
dialogues with National Authorities. 

Figure 16 - Monitoring indicators by policy objective 

Policy objective 
Avoid interference between WBB and DTT via 
a coordinated release of the 700MHz band for 
WBB 

Monitoring indicators 

Number of Member States that have adopted and 
communicated a transition roadmap by 30 June 
2017 
Number of Member States that have concluded 
their cross-border frequency coordination 
agreements by 31 December 2017 
Number of compliant national transition roadmaps 
which must, if relevant, include:  
i) national frequency planning;  
ii) follow-up on the authorization of DTT licenses; 
iii) measures to facilitate the timely availability of 
interoperable television broadcasting network 
equipment and receivers  
iv) any national compensation measures 

Promote DSM connectivity/coverage through 
wider use of sub-1 GHz spectrum  

Number of 700MHz licenses to be issued 
nationally to mobile operators that include 
coverage obligations  

Secure the public interest and consumer benefits 
on the UHF band while facilitating market 

Number of sub-700MHz licenses issued to provide 
wireless broadband services that follow the 

54 According to the RSPG opinion on 'Long-term strategy on the future use of UHF band in the European Union', 
all  necessary  cross-border  coordination  agreements,  including  transitional  agreements,  need  to  be  finalized  by 
the end of 2017 at the latest.  

39 

 
 
 
 
 
 
                                                            
transformation 

technical parameters needed to protect DTT in 
cross-border territories. 
RSPG focus discussions on the  technological 
progress of video technologies, audio PMSE 
Strategy that will reserve core assets (spectrum 
bands) in the UHF  and steer the debate to prepare 
the market review in 2025 
European Commission, in cooperation with 
Member States, will report to Council and the 
Parliament on the usage of the sub-700MHz band 
in the Union  

Option  2  and  the  preferred  Option  3  include  an  evaluation  no  later  than  1  January  2025,  This  will 
allow a reappraisal of the benefits of further policy adjustments in the sub-700MHz band if market and 
technological  developments  warrant.    The  2025  evaluation  will  help  the  Commission  to  assess  the 
performance of the EU intervention and whether it delivers, at a minimum cost, the desired EU goals 
described in section 4.  

This evaluation will provide a key opportunity to engaged stakeholders to continue providing feedback 
on EU interventions and an independent judgment of the situation based on the evidence available55. 
According to stakeholders that participated to the Lamy Report public consultation, the scope of the 
evaluation should include at least: 

i. 
ii. 

iii. 

consumption trends and patterns of audiovisual content; 
technology  and  market  developments  including  platform  competition  and  efficiency,  growth 
and demand for WBB;  
regulatory  requirements  to  guarantee  access  to  critical  resources  and  public  service  needs 
including coverage obligations. 

55 All respondents to the Lamy Report Public Consultation agreed on the need to undertake a market Review (see 
Annex 10.2.3). 

40 

 
 
 
 
 
 
                                                            
9.  BIBLIOGRAPHY 

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Fishbein, B. (2002). Waste in the wireless world: the challenge of cell phones, the toxic content of cell 

phones and other electronic devices. INFORM Inc. 

Frontier Economics. (2015). A cost benefit analysis of the change in use of the 700 MHz radio 

frequency band in Ireland. London. 

Gartner. (2015, 11 10). Gartner Says 6.4 Billion Connected "Things" Will Be in Use in 2016, Up 30 

Percent From 2015. Newsroom. Stamford, Connecticut, USA. 

GSMA. (2012, 02 27). GSMA. Consulté le 10 08, 2015, sur GSMA Announces the Business Impact of 

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http://www.gsma.com/newsroom/press-release/gsma-announces-the-business-impact-of-
connected-devices-could-be-worth-us4-5-trillion-in-2020/ 

Harvey, S. (2015, 09 04). Digital Dreams and opens skies: universal service and the BBC. . Consulté le 
10 26, 2015, sur Open Democracy.: https://www.opendemocracy.net/ourbeeb/sylvia-
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Meabe, U., Gil, X., & Caiwai, I. (2015, June). On the coverage and cots of HPHT versus LPLT networks 
for rooftop, portable and mobile broadcast services delivery. IEEE Transactions on 
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of Upward Bias in Mobile Data Forecasts. 

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Association. 

Nielsen. (2015). Total audience report Q1 2015.  
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Purchase Decisions Driven by Picture and Sound Quality Despite Introduction of New 
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purchase_decisions_driven_by_picture_and_sound_quality.asp 

OECD. (2013). Communications Outlook. OECD Publishing. 
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42 

 
 
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43 

 
 
 
 
 
10.  ANNEXES 

10.1.  Annex: Procedural information  

10.1.1.  Identification 

This  Staff  Working  Paper  was  prepared  by  the  unit  B4  'Spectrum'  of  Directorate  B  'Electronic 
Communications  Networks  and  Services'  of  Directorate  General  'Communications  Networks, 
Content and Technology'. The RWP reference of this initiative is 2015/CNECT/017.  

10.1.2.  Organisation and timing 

Other services of the Commission with a policy interest in the subject have been associated in the 
development  of  this  analysis.  The  Impact  Assessment  Steering  Group  was  drawn  from  the 
existing Spectrum Inter-Service Group. The Impact Assessment Steering Group met for the first 
time on 10 March 2015 to discuss the problem definition and the possible policy options as well 
as its preliminary impacts. During the first meeting B4 presented the tender specifications for the 
study  on  "Socio-economic  impact  of  repurposing  the  700MHz  band  for  wireless  broadband 
services in the EU".  

A  second  Impact  Assessment  Steering  Group  meeting  took  place  on  17  July  during  which  the 
Commission  services  discussed  the  proposed  options  based  on  the  results  of  the  Lamy  Report 
public consultation. Participants were also informed on the tender on the socio-economic impact 
of repurposing the 700MHz for wireless broadband that should support the IA.   

A third Impact Assessment Steering Group took place on 23 September 2015 to discuss a draft of 
the impact assessment. Comments were received by 28 September 2015.  

A  fourth  Impact  Assessment  Steering  Group  took  place  on  9th  October  2015  to  discuss  a 
considerably revised version of the document. 

Other  units  in  DG  CONNECT,  as  well  as  DG  COMP,  DG  GROW,  DG  ENER,  DG  MOVE, 
HOME,  JUST,  EAC  and  Secretariat  General  provided  their  input  and  comments  during  the 
process. 

10.1.3.  Regulatory Scrutiny Board  

This staff working document was discussed at the regulatory scrutiny board meeting of 25 
November 2015.After the positive opinion of the Board, their recommendations have been 
addressed as follows. 

RSB recommendation 

How is it addressed? 

C.1. Enhance the baseline scenario  

A mapping of status-quo including the situation of 
different MSs has been added in section 2.1 (Figure 4), 
further reference to the starting point of MSs has been 
included in section 2.2.  

The baseline scenario has been enhanced in section 6.1 
when explaining how the problem would evolve in 
option 1. 

Reference has been made to the international context 
including an updated reference to the outcome of WRC-
15. Further explanation to the 2013 telecom package, 800 
MHz Decision and the ongoing telecom review has also 
been included in section 2.1 

44 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
C.2. Strengthen 
the analysis of 
impacts 

1.  baseline 

2. coordinated 
approach 

3. consumers 

A better explanation to the benefits of economies of scale 
on a more illustrative and anecdotal way has been added 
in sections 2.1 and 6.2.1.  

The problem definition has been updated with the most 
recent information available, in particular concerning 
France and Germany which have already auctioned the 
700 MHz to mobile operators for WBB use and with 
regards to the current diversity in terms of DTT 
penetration and available alternative TV platforms. 
Option 1 has been clarified to explain what we think is 
likely to happen including the elements that we cannot 
predict. 
Section 2.2.on how would the problem evolve without 
coordination has been fine-tuned and section 6.1. 'no EU 
action' has emphasized the negative impacts of such a 
lack of coordination.  
The impact on consumers has been made clearer in 
section 6.2.1. This section now includes two additional 
figures i) figure 7 on 4G coverage in Europe and ii) 
figure 9 on percentage of EU households with a mobile 
subscription giving access to the Internet have been 
inserted. 
Additional reference to consumers has been made in 
section 6.4 

4. PMSE 

Section 6.2.1 now includes a reference to the proposed 
implementing decision on the 700 MHz that will allow 
MS to use part of the band for PMSE. 

Annex of SME Test dedicated to PMSE manufacturers 
and users has been modified accordingly. 

5.Environmental 

Section 6 clearly states that there is no environmental 
impact linked to the replacement of DTT but to the 
electricity consumed by TV sets or set of boxes. This 
statement is based on available studies that conclude that 
most of the carbon footprint comes from customer use of 
the equipment rather than manufacturing,   

6. DTT licenses 

A narrative on possible compensatory measures (possibly 
as a result of breaking the running DTT licenses) has 
been added in section 7. 

D. Clarification of elements included 
in the Implementing Decision and 
Council Decision 

Sections 3 and 7 clearly state and define the scope of the 
two legal instruments to be used to implement the EU 
intervention logic on the UHF broadcasting band. 

10.1.4.  Evidence 

The options considered in this impact assessment were designed by taking into account the 
following main inputs: 

(i) 
(ii) 

the Lamy report,  
the contributions to the Pascal Lamy report public consultation,  
45 

 
 
 
 
 
 
 
 
 
 
  
 
(iii) 
(iv) 

(v) 

the RSPG opinion on a long-term strategy on the future use of the UHF band, 
a study on the 'Economic and Social Impact of Repurposing the700MHz band 
for Wireless Broadband Services in the European Union', 
a study on 'Challenges and opportunities of broadcast-broadband convergence 
and its impact on spectrum and network use'. 

The sources are clearly indicated in the bibliography and range from academic papers to industry 
figures and estimates. 

10.1.5.  External expertise 

The  European  Commission  sought  external  expertise  on  the  technical  field  as  well  as  on  the 
socio-economic impacts of possible uses of the UHF band.  

The  European  Commission  issued  on  11  March  2013  a  Mandate  to  the  CEPT  to  develop 
harmonised technical conditions for the 694  -790 MHZ ('700 MHZ') frequency band in the EU 
for  the  provision  of  wireless  broadband  electronic  communications  services  and  other  uses  om 
support of EU spectrum policy priorities. The final report is expected in March 2016.  

Beside the technical external expertise the Commission contracted a study on the 'Economic and 
social impact of repurposing the 700 MHz band for wireless broadband services in the European 
Union' (SMART 2015/010). The study was conducted by Valdani Vicari Associates (VVA) and 
LS telcom. Details of the study findings are provided in the technical sections, Annex 10.4 and 
10.5 below. 

46 

 
 
 
 
 
 
10.2.  Annex: Stakeholder consultation  

10.2.1.  High Level Group 

The High Level Group (HLG) on the future use of the UHF band (470-790 MHz) was convened 
at the end of 2013 by the Vice President of the European Commission and Commissioner for the 
Digital Agenda Neelie Kroes. It comprised nineteen executive-level representatives from the 
mobile and broadcasting sectors, including the PMSE sector, under Pascal Lamy Chairmanship. 
The overarching objective laid down in the mandate of the Group was to deliver strategic advice 
to the Commission for the development of a European strategy on the future use of the UHF band 
including possibilities for sharing parts of the band.  

The Group was asked to look at how Europe will access and use audiovisual content and data in 
the medium to long term and come up with options that respond to 4 separate challenges: 
  What will next generation (terrestrial) provision/reception of audiovisual content 

(including linear TV) look like? 

  How do we secure the public interest and consumer benefits while facilitating market 

transformation? 

  What are the strategic elements of spectrum use in the UHF band in light of the first 

challenge? What would the regulatory role of the EU be in coordinating developments?  

  What are the financial implications for a next-generation terrestrial platform for 

broadcasting and internet use? 

10.2.2.  The Lamy Report  

The Lamy Report made two main recommendations: 

1. 

2. 

The "2020-2030-2025" formula: the 700 MHz band should be vacated from DTT 
use by 2020 (+/- 2 years) and made available ('repurposed') for wireless broadband 
thus offering additional spectrum to mobile operators. The transition, if and when 
the band is repurposed, is a major challenge at national and EU level. The formula 
also foresees regulatory certainty for DTT in the spectrum below the 700 MHz band 
until 2030. The report recommends an evaluation by 2025 to re-assess developments 
and adjust the EU strategy, if necessary. 
The "flexibility option" proposes downlink-only wireless broadband use of UHF 
broadcasting spectrum in the remaining portion below the 700 MHz band (in the 
band 470-694 MHz). Broadcasting use would always have priority, yet specific 
channels or locations not used for terrestrial broadcasting or PMSE could become 
available for downlink-only applications depending on national circumstances. 

The  report  focused  on  a  coordinated  EU  position  in  future  World  Radiocommunication 
Conferences  to  support  the  European  framework.  In  particular,  it  proposed  that  the  EU  did  not 
support  the  co-primary  allocation  of  the  470-694  MHz  band  –  which  would  remain  the  only 
spectrum  available  to  DTT  –to  mobile  services  at  the  next  WRC  in  2015  (WRC-15).  The 
Commission, with broad consensus from the Member States, and other countries worldwide (e.g. 
Russia, South American, African and Asian countries) did not support such action. Although, the 
proposal was not approved in Region 1, Finland and Slovenia supported the identification of the 
sub-700MHz band for mobile services.  

The full Lamy Report is available by following this link: 
http://ec.europa.eu/newsroom/dae/document.cfm?doc_id=8423 

10.2.3.  Lamy Report Public Consultation on 700MHz spectrum band 

The Commission submitted for public consultation a questionnaire in order to collect the views 
of  stakeholders  of  options  for  the  future  use  of  the  UHF  TV  Broadcasting  Band:  the  Lamy 
47 

 
 
 
 
Report. The questionnaire asked contributors inter alia to provide views on the Lamy Report. The 
closing  date  for  comments  was  12  April  2015;  however  contributions  received  up  until  the  16 
April  2015  were  included.  The  Commission  received  a  total  of  356  contributions  to  the  public 
consultation;  260  citizens  and  96  stakeholders  representing  different  industries  provided  input. 
Three  contributions  came  from  experts,  representing  universities,  research  institutes  or 
professional societies. 

The results of the consultation suggest that an EU coordinated approach, a common roadmap as 
well as a cost-efficient transition are needed for a successful release of the 700MHz band in the 
European  Union  (the  upper  part  of  the  UHF  band).  The  respondents  gave  their  suggestions  on 
how to use the 700  MHz band  (694-790  MHz), on the regulatory  certainty for current users of 
spectrum,  the  flexibility  and  harmonisation  of  use  of  sub-700MHz  for  TV  (470-694  MHz),  as 
well as the European approach at the 2015 World Radiocommunication Conference (WRC-15). 

EU Coordination 
Out of 96 organisations, 61 organisations see merits in an EU coordinated approach to clear the 
700MHz band for wireless broadband usage, representing 64% of the respondents, while only 4 
organisations (4%) see no merits in such an approach. 31 Organisations (32% of the respondents) 
have not specified whether or not they see merits in an EU coordinated approach.  

Figure 17 – Stakeholders in favour of an EU coordinated approach 

Source: Commission Public Consultation, 2015 

The  respondents  argue  that  EU  coordination  reduces  fragmentation  on  the  internal  market  and 
contributes  to  the  harmonisation  of  the  network  coverage  obligations  and  establishment  of 
common standards for receivers. It also contributes to the development of a spectrum strategy for 
complementary users such as Program Making and Special Events. 

According  to  the  stakeholders,  the  EU  coordination entails  the  cross-border  coordination of  bi-
lateral  and  multi-lateral  frequency  rights,  as  well  as  negotiations  with  third  countries.  The  vast 
majority  of  mobile  operators  and  equipment  manufacturers  additionally  finds  EU  coordination 
crucial for co-existence of the digital terrestrial television and wireless broadband in cross-border 
territories. Various stakeholders from the cultural and creative industries indicate that the scope 
of regulatory coordination should ensure continuity of digital terrestrial television below the 700 
MHz band. 

48 

 
 
 
 
 
A great majority of the respondents are in favour of establishing a common deadline to clear the 
700  MHz  band  and  support  the  date  range  in  the  Lamy  Report  of  2020  (+/-  2  years).  Mobile 
operators favour the release in 2020 or earlier. On the other hand, cultural and creative industries 
as  well  as  broadcasting  network  operators  and  some  consumer  associations  tend  to  support  a 
deadline of 2022 (2020 +2). Stakeholders in the manufacturing and electronic industries suggest 
that the deadline of 2020 is reasonable as the general rule. 

Most  stakeholders  are  in  favour  of  a  common  EU  deadline  for  conducting  a  review  for 
broadcasting  and  wireless  broadband  services  market  developments  shortly  thereafter,  possibly 
around 2025. 

Figure 18 – Stakeholders in favour of a common deadline for a market review 

Common Deadline for a Review 

60

40

20

0

Yes

No

Not specified

Source: Commission Public Consultation, 2015 

Funding and Financial Resources 
Regarding  funding  arrangements,  cultural  and  creative  industries  in  particular  ask  for  clear  EU 
guidance  on  the  availability  of  funding  and  financial  resources  needed  to  cover  the  costs  of 
transition  and  clearance  of  the  700  MHz  band  that  is  currently  used  by  broadcasting  and  other 
cultural-related services such as Program Making and Special Events. This guidance is required 
to ensure that Member States progress in a timely and coordinated manner towards the release of 
the  700  MHz  band.  Electronic  manufacturers  moreover  urge  the  EU  to  promote  industry 
collaboration to reduce delay and to fully reap the benefits from economies of scale. 

Spectrum-efficient Technologies 
There  is  general  support  to  promote  spectrum-efficient  technologies  for  Digital  Terrestrial 
Television  equipment  (i.e.  Digital  Video  Broadcasting-Terrestrial  2  (DVB-T2)  and  High 
Efficiency Video Coding (HEVC)), and to take measures at the EU level to facilitate usage of the 
latest  technologies.  However,  most  of  the  respondents  reject  mandatory  measures  to  use  a 
specific  technology.  According  to  the  respondents,  such  an  approach  will  go  against 
technological neutrality and the industry should be able to choose the most adequate and suitable 
technology. 

Flexible Downlink-only Use 
The  flexible  use  of  the  sub-700MHz  is  subject  to  diverging  opinions  of  respondents.  Some 
stakeholders did not support the flexible downlink-only use of the spectrum below 700 MHz for 
wireless broadband services because of concerns on the potential technical compatibility or not 
with digital terrestrial television (DTT) while others reject it for being too restrictive and ask for 
the inclusion of uplink too (bidirectional wireless broadband services) which enables provision of 
full internet access services.  

The EU at the World Radiocommunication Conferences 

49 

 
 
 
 
 
 
There is broad support for a common European approach to the sub-700MHz band at the World 
Radiocommunication Conference 2015 (WRC-15). 

(1) 

(2) 

(3) 

Link to Summary Report 

Link to Citizens' Contributions 

Link to Organisations' Contributions 

50 

 
 
 
10.3.   Annex: Who is affected by the initiative and how – SME Test 

Who is affected 

How 

Member States 

The EP and Council decision will establish regulatory certainty and 
flexibility in spectrum use of the sub-700MHz band to match Member 
State diversity in DTT penetration by 30 June 2020. 

To promote a short and synchronised time window of 700MHz release, 
the EP and Council decision will require Member States to: 

  Adopt national transition plan by 30 June 2017 
  Finish cross-border frequency coordination agreements within 

the Union as well as with non-Union countries by 31 December 
2017 

The Implementing Decision will require Member States to: 

  Designate and authorise the 700MHz band for electronic 

communications services 

  Harmonise the technical conditions of use of the 700 MHz band 

for electronic communications services 

  Designate and make available the 703-733MHz and 758-

788MHz frequency bands for networks other than high-power 
broadcasting networks. They shall do so on a non-exclusive 
basis for terrestrial systems capable of providing electronic 
communications services. 

Broadcast network 
operators 

In compliance with the EP and Council Decision, broadcast network 
operators will have to reconfigure their networks to move to the lower 
part of the UHF band (i.e. sub-700MHz) in order to clear the 700MHz in 
2020. 

In order to meet the deadline, DTT network operators will be required to 
convert systems to most efficient spectrum technologies if they wish to 
maintain current choice and transmission quality of programmes or 
improve it (eg. through transition to Ultra High Definition programing). 
The upgrading of DTT networks can be done in three ways:  

i. 

through a compression of technology, 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 UHF 
broadcasting band  

ii.  modulation of 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. This standard increases the capacity of 
DTT channels (multiplex) compared to DVB-T;  

51 

 
iii. 

network topology, most DTT networks in the EU are mostly 
multi-frequency networks (MFNs) so each given DTT channel 
(multiplex of 8MHz frequency channel) uses different 
frequencies in different geographic locations to avoid self-
interference. Restacking or the increased use of single-frequency 
networks (SFNs), where all frequency channels are used at all 
sites, could reduce the need for spectrum. 

Mobile Network 
Operators 

The EP and Council Decision will enable the provision of wireless 
broadband services in the 700MHz once this band is cleared by 2020. 
MNO will roll-out high speed wireless networks and provide extra 
capacity in rural areas and improved indoor coverage in the urban areas. 

Consumers and Users 

In compliance with the Commission Implementing Decision, MNO will 
provide electronic communication services on a non-exclusive basis in 
the 700MHz band, particularly in 703-733MHz and 758-788MHz.  

Upgrade TV sets which might create end-user equipment costs. These 
costs are calculated on the basis of the life cycle of current equipment, 
cost of new equipment and, the number of times the equipment is used 
daily.  

Equipment 
manufacturers 

The harmonization of the 700MHz band for systems capable of 
providing electronic communication services and other uses in the 
Union, will enable equipment manufacturers to  benefit from the 
economies of scale 

PMSE users 

The Implementing Decision will make it harder for PMSE users to find 
enough spectrum for their needs in the 'white spaces' of the UHF band.  

Program Making and Special Events operate in radio spectrum white 
spaces across the UHF. They will have to operate in the sub-700MHz 
band. 

The size and the exact frequencies of the 'white spaces' differ between 
different geographical locations. 'White spaces' are used by wireless 
audio PMSE applications, on the condition that they do not cause 
interference to the authorised broadcasting services and that they are not 
themselves protected from interference from other users. They will need 
multiple equipment or equipment that can tune into a wider range of 
frequencies. Small users need less spectrum for their operations and this 
will likely remain available via the ‘white spaces’ in the remaining part 
of the UHF band (i.e. the sub-700MHz band) while large professional 
wireless audio PMSE users claim they need about 100 MHz of spectrum 
in the UHF band due to its technical characteristics.  

Wireless audio PMSE users are concerned about the increasing risk of 
interference they are subject to due to these changes in the use of UHF 
spectrum. If and when unacceptable levels of harmful interference were 
to become frequent, wireless audio PMSE users would have to find 
alternative solutions.  

52 

 
 
 
PMSE users are not protected from harmful interference in the 700 MHz 
band and there is no guarantee for a minimum amount of available, 
usable spectrum. PMSE use can be licence-free, subject to general 
authorisations or licence-based. PMSE use of spectrum does not 
generally require payment or in case of licences e.g. when coordinated 
by a regulator, it implies minimal fees.  

PMSE manufacturers  Manufacturers, which are mainly SMEs in this sector, need to adapt 

each model to the specific frequencies made available in the different 
Member States. Since this is a niche market, these specialised 
manufacturers have limited resources and R&D on digital equipment 
and other innovations would be encouraged if there were a single 
market. 

SME Test dedicated to PMSE manufacturers and users operating in the 700MHz band 

(1) Consultation with SMEs 
representatives 

(2) Preliminary assessment of 
business likely to be affected 

Consultation with the SMEs took place during the Lamy 
Report Public Consultation that ended on the 12th of April 
2015. Although the Commission Implementing Decision 
2014/641/EU on PMSE was already published in the Official 
Journal of the European Union on September 2014, the 
public consultation took place before the Decision was 
implemented in all Member States.  
36 contributions were submitted by stakeholders from the 
creative and cultural industries that are made up of 
broadcasters, content producers, arts and creative 
organizations and PMSE users.  
SMEs were also consulted through regular bilateral meetings 
with specific companies. 
As described in section (6.2.1. and 6.4) content producers 
would not be negatively affected by the preferred option 3 of 
this IA. Their core business model consists of pushing 
content through various platforms and, in Option 3 DTT 
would continue to be available to deliver audiovisual 
content. 
On the contrary, the release of the 700MHz band could be 
detrimental for PMSE services which would need to be 
reallocated in other bands.  
There is already evidence that the pressure on the UHF band 
availability has led national regulators to find alternative but 
uncoordinated solutions to the needs of the wireless audio 
PMSE users. Further, some of the solutions are of a 
temporary nature. Such uncertainty means users are reticent 
to invest in equipment operating in this band and 
manufactures reticent to producing it since it could become 
unusable within some years. 
It would be expected, however, that some radio-microphone 
users, being aware of the potential future loss of the 700 
MHz band, would have, where possible, purchased and be 
using equipment that would be sub-700 MHz. 

53 

 
 
 
 
The impact on PMSE applications will affect both users 
(arts, music, conferences…) and manufacturers of the 
relevant equipment.  

There are approximately 2.2 million audio PMSE in use in 
the EU and  30% of devices are currently operating in the 
700 MHz band. 

(3) Measurement of the Impact 
on SMEs 

The impacts due to the on-going changes in spectrum use in 
the UHF band were estimated over the following  
assumptions: 

(4) Assess alternative options and 
mitigating measures 

  2.2 million audio PMSE in use in the EU  
  30% of devices are currently operating in the 700 

MHz band. 

  Natural replacement cycle of 8 years 
  Radiomicrophone system varies from 100 to 5000 

Euro, but on average is around 650 Euro. 

These inputs lead to a total replacement cost for EU28 
countries as shown in the table below. Both a positive and 
negative acceleration factor have been implied to take 
account of user restriction, or use encouragement to replace 
equipment knowing that it will become unusable over the 
coming years. The table below illustrates the PMSE costs 
associated with different deadlines for the release of the 700 
MHz band.  

-20% acc. 
Neutral 
+20% acc. 

2020 
230 mill € 
200 mill € 
173 mill € 

2021 
207 mill € 
175 mill € 
147 mill € 

2022 
187 mill € 
153 mill € 
125 mill € 

Although the preferred Option of the Impact Assessment 
shows that the PMSE sector could be particularly affected, 
the spectrum needs for this sector were anticipated by the 
European Commission in 2014 when  
Implementing Decision 2014/641/EU on harmonized 
technical conditions of spectrum use PMSE equipment was 
adopted.  
This Decision not only designates and makes available 
frequency bands for wireless audio PMSE but also improves 
coexistence between microphones and mobile networks 
across the EU. This measure provided harmonised 'core 
bands' in the 800 MHz and 1800 MHz 'duplex gaps' to 
stimulate economies of scale for 'basic' equipment, facilitate 
the use of small users, foster the cross-border and EU-wide 
employability of equipment, and focus manufacturers' R&D 
efforts. This measure also gives certainty on an amount of 
spectrum available through the harmonised bands and the 
additional 30 MHz to be made available if there is demand. 

The value of this EU measure approved in 2014 lies in its 

54 

 
 
 
 
 
 
 
 
 
 
 
tiered approach which aims to address the different 
objectives while fully taking into account subsidiarity and 
proportionality as well as efficiency of spectrum use. It was 
estimated to reduce the costs due to the UHF spectrum 
changes by 76 million euros. 

In addition, as explained in section 6.2.1. the proposed 
Implementing Decision on the 700 MHz band will give 
Member States the possibility of using the duplex gap and 
guard bands of the 700 MHz band for PMSE, thus making 
available 25 MHz of the 30 MHz identified in the 2014 
PMSE Implementing Decision.  

Finally, in order to mitigate the effects on PMSE services, 
the Commission will request an RSPG Opinion concerning a 
Union Strategy for PMSE services.  

55 

 
 
 
 
 
 
 
 
10.4.  Annex: Analytical models used in preparing the impact assessment. 

10.4.1.  Costs 

The LS telcom & VVA study's general approach was to make first a very detailed cost analysis 
for  5  selected  countries:  Finland  (FI),  Slovakia  (SK),  Spain  (ES),  Germany  (DE)  and  Greece 
(EL). This outcome was used to benchmark the methodology used to determine the costs based 
on  18  EU  member  states  where  the  necessary  data  was  provided.  Finally  the  total  costs  were 
extrapolated  for  all  EU  Member  states.  These  countries  show  a  wide  diversity  of  parameters 
regarding  country  size,  network  topology,  population  density  and  terrestrial  TV  penetration. 
Another extrapolation based on the country size (cost/sqkm) validated this approach as the results 
were quite similar. 

The  methodology  itself  was  to  define  the  necessary  number  of  DVB-T2  multiplexes  and  the 
derived  transition  costs,  which  is  also  shown  in  a  graphical  manner  below  based  on  certain 
assumptions regarding labour and equipment costs and the expected technology gain.  

The costs for broadcast network operators are estimated on the basis of three potential scenarios:  

i. 

ii. 

iii. 

restacking  as  a  means  of  re-organising  the  frequencies  in  use  at  a  given  site  – network 
operators  will  no  longer  use  frequencies  in  the  700  MHz  band  and  start  using  other 
assignments at that site that are sub-700 MHz;  
replace  the  present  DTT  system  and  move  to  second  generation  video  broadcasting 
(DVB-T2) along with the source of coding standard HEVC (minimum costs) 
or  replace  the  present  DTT  system  and  move  to  second  generation  video  broadcasting 
(DVB-T2) along with the source of coding standard MPEG4 (maximum cost). 

56 

 
 
All  costs  are  given  in  a  Min.  to  Max.  range.  This  is  based  on  an  assumed  range  of  transition 
efforts  spend  per  transmitter  which  comprises  labour  as  well  as  equipment  costs.  This  finally 
results in certain range of entire costs. 

The consumer costs are based on the analysis framework illustrated in the diagram below. This 
example shows the situation for a move from DVB-T to DVB-T2, but the same analysis method 
has also been used for a move to HEVC or for the replacement of PMSE equipment. 

Taking the example above, the method is as follows: 

  Determine the existing penetration of DVB-T2 receivers in 2015 in EU Member States 
(the study team assumed a penetration of 50% of DVB-T2 receivers for countries where 
there  are  DVB-T2  services  and  20%  for  countries  where  there  is  DVBT  and  0%  of 
HEVC receivers as these are not yet available); 

  Determine the extent to which the natural replacement (of television receivers) will cause 
an increase in DVB-T2 receiver penetration, assuming that all receivers purchased from 
today onwards are DVB-T2 compatible (the study team assumed a replacement period of 
7 years); 

  Consider  that  there  may  be  an  accelerated  replacement  of  receivers  if  consumers  are 
aware  that  they  require  a  DVB-T2  receiver  by  a  given  date,  or  because  new  services 
become available on DVB-T2 before that date.  

  Determine the number of receivers that would need a forced replacement, that is to say, 
those receivers which, by the end of the period in question, would not have been replaced 
through  natural  or  accelerated  replacement  and  thus  would  represent  the  cost  of 
migrating all remaining consumer equipment to. 

The  costing  model  delivered  by  the  study  team  was  run  with  DTT  penetration  data  from 
Eurobarometer (2013) and data for DTT primary households and DTT total households from IHS 
Technology  (2015)  and  refers  to  the  forced  replacement  of  set-top-boxes  that  would  not  have 
already  been  replaced  by  2020.The  study  also  applies  faster  and  slower  replacement  cycles  to 
consider the amount of set-top-boxes to be replaced in different scenarios and the relevant cost 
figures.  For  the  purpose  of  cost  comparisons  in  this  document  the  neutral  scenario  was 
considered. 

10.4.2.  Benefits of the 700 MHz band 

The Commission estimated how much the 60 MHz of spectrum (2*30 MHz) available in the 700 
MHz  could  be  licensed  for  based  on  the  prices  paid  for  the  800  MHz  and  900  MHz  bands  in 
auctions that took place in the period June 2010 to May 2014.  

57 

DVB-TDVB-T2DifferentEU MS3 –7 yearsNatural replacementForced replacementAccelerated  replacementAdditional costsDVB-T2 
 
 
The 700 MHz could be worth about 11 billion euros to European mobile operators based on the 
average price per MHz per population paid for the 800 and 900 MHz bands on the conditions of 
the  existing  licenses,  for  example  in  terms  of  coverage  obligations.  If  mobile  operators  are 
willing to pay this price  to acquire the 700 MHz spectrum, this should be equal to or less than 
their valuation for this spectrum, i.e. the benefit (revenues-costs) that they expect to make from 
this asset. If Member States were to set more ambitious coverage obligations, mobile operators 
would be likely to offer less money for these licenses but the overall value would nonetheless be 
the same as consumers would benefit from the increased coverage. 

Figure 19 – Estimate value to mobile operators of the 700 MHz band based on 800 and 900 
MHz band auctions, 2010-2014 

Auctions took place in Germany and France in 2015. In the former the auction was concluded in 
June 2015. Since this was a multi-band auction it is not possible to identify the price paid for the 
700  MHz  band  only.  Based  on  the  total  price  paid  for  all  the  bands  (very  likely  an 
underestimation for the 700 MHz), the 60 MHz of the 700MHz were valued at 1.07 billion euro. 
In  France,  the  reserve  price  for  the  700  MHz  band  has  been  set  at  nearly  2.5  billion  euro with 
Arcep estimating that the final bid could raise over 3 billion euro. The figure of 11 billion for the 
EU28 thus seems like a reasonable baseline estimate for the value that will be raised by 700 MHz 
auctions. 

58 

 
 
 
10.5.  Technical Annex 

10.5.1.  Glossary and Acronyms 

CEPT 
:  European  Conference  of  Postal  and  Telecommunications  Administrations,  an 
organisation  in  which  48  European  countries  cooperate  to  regulate  posts,  radio  spectrum  and 
communications networks 

DTT : Digital Terrestrial Television 

DVB-T2: Latest Standard for Digital Video Broadcasting Terrestrial 

DVB-C: Digital Video Broadcasting Cable 

EBU : European Broadcasting Union 

ECC: Electronic Communications Committee 

GE06 : ITU Geneva 2006 agreement 

HEVC:  High  Efficiency  Video  Coding  with  double  the  data  compression  ratio  compared  to 
MPEG-4 at the same level of video quality 

HPHT : High power high tower 

IPTV : TV carried via IP protocol (via broadband) 

IoT: Internet of Things 

ITU : International Telecommunications Union 

LPLT : Low Power Low Tower 

MPEG4: Method of defining compression of audio and visual digital data. MPEG4 is an evolving 
standard of MPEG1, MPEG2 and MPEG 3. 

MUX:  DTT  multiplex  is  a  bundle  of  TV  services  that  have  been  digitised,  compressed  and 
combined into a data-stream for transmission to the consumer over a single spectrum channel. 

OTT : Over the top services provided over broadband  

PMSE : programme making and special events 

PPDR : Public Protection and Disaster Relief 

Restacking: A means of re-organising the frequencies in use at a given transmitter site 

RSC  :  Radio  Spectrum  Committee,  a  Committee  which  assists  the  Commission,  which 
procedures  and  functioning  is  recorded  in  Articles  3  and  4  of  the  Radio  Spectrum  Decision 
(676/2002/EC) 

RSPG  :  Radio  Spectrum  Policy  Group,  a  group  of  Member  States'  delegates  (not  independent 
regulatory authorities) representing their country's positon on spectrum related matters 

RSPP : Radio Spectrum Policy Programme 

UHF band  : Ultra high frequency  band,  intended in  this document as the frequency range 470-
790 MHz 

VHF : Spectrum band 30-300 MHz 

WBB : wireless broadband 

WRC : World Radiocommunication Conference 

59 

 
 
 
10.5.2.  Mobile sector  

Although  in 2013  Cisco  lowered  its  previous  projections,  they  still  estimate  mobile  data  traffic 
growth rate (CAGR) at 45% in 2014 and 48% in 2015 in Western Europe.56 

Figure 20 - Mobile Data and Internet Traffic, 2014-2019 

Figure 21  – Mobile data traffic per application type, 2014-2019 

Source: Cisco VNI Mobile, 2015 

According  to  the  Ericsson  Mobility  Report  201457,  video  streaming  is  expected  to  grow 
exponentially: around 55% of global mobile data traffic will come from video streaming by 2020 
(Cisco  forecasts  72%  by  2019).  Many  factors  fuel  the  demand  of  the  mobile  video  such  as  the 
quality  of  the  smart  device,  including  the  screen  size  and  resolution  as  well  as  the  production 
quality, the viewer’s expectations and network performance. 

56 CISCO (2015) 
57 Ericsson (2014) 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
Figure 22 – Mobile data traffic per application type, 2010-2020 

Source: Ericsson Mobility Report, 2014. 

Figure 23  – Mobile data traffic per application type, change between 2014 and 2020 

Source: Ericsson Mobility Report, 2014 

Figure 24  – Observed and predicted mobile traffic off-load 

Source: Wik Consult, 2012  

61 

 
  
 
  
 
 
10.5.3.  The European Audiovisual Model and the audiovisual sector 

The audiovisual sector is one of the most important in the culture related domain. Certainly, the 
audiovisual  industry  belongs  to  the  cultural  and  creative  sector  which  makes  a  significant 
contribution  to  the  EU  economy,  creating  around  3.3%  of  the  EU  GDP  and  employing  6.7 
million people58. 
The  audiovisual  sector is mainly cultural and thus  an  essential  national  area of competence. At 
the same time, both Union59 and Member States level rules have a common rationale comprising 
the following categories:  

1.  The financing model of the audiovisual sector in Europe consists of a mixed model based 
on  private  and  public  funds.  The  commitment  of  the  EU  and  Member  States'  public 
institutions towards the audiovisual industry is based on the importance of Public Service 
Broadcasting.  

i. The Amsterdam Protocol  acknowledges that the system of public broadcasting in the 
Member  States  is  directly  related  to  the  democratic,  social  and  cultural  needs  of  each 
society  and  to  the  need  to  preserve  media  pluralism  .The  Protocol  guarantees  Member 
States' right to fund public service broadcasting60 insofar as such funding is granted for 
the  fulfilment  of  a  public  service  remit  as  conferred,  defined  and  organised  by  each 
Member State, and insofar as such funding does not unduly affect trade and competition 
in the EU. 

ii.  Public  service  broadcasting,  although  having  a  clear  economic  relevance,  is  not 
comparable  to  a  public  service  in  any  other  economic  sector.  There  is  no  other  service 
that at the same time has access to such a wide sector of the population, provides it with 
so  much  information  and  content,  and  by  doing  so  conveys  and  influences  both 
individual and public opinion. 

iii.  As  underlined  by  the  Council  Resolution  concerning  public  service  broadcasting61: 
"Broad public access, without discrimination and on the basis of equal opportunities, to 
various  channels  and  services  is  a  necessary  precondition  for  fulfilling  the  special 
obligation of public service broadcasting" and more "public service broadcasting must be 
able to continue to provide a wide range of programming in accordance with its remit as 
defined by the Member States in order to address society as a whole; in this context it is 
legitimate for public service broadcasting to seek to reach wide audiences." 

2.  Rules  ensuring  cultural  diversity  (promotion  of  European  of  works)  in  the  Audiovisual 

Media Services Directive.  

i. 

The  AVMS  Directive  requires  broadcasters  to  reserve  a  majority  proportion  of 
their  transmission  time,  excluding  the  time  allotted  to  news,  sports  events, 
games,  advertising,  teletext  services  and  teleshopping,  for  European  works 
(Article 16). In some Member States private broadcasters are requested to invest 
a  portion  of  their  revenues  to  finance  audiovisual  productions  (e.g.  art  5.3 
Spanish Audiovisual Law). 

ii.  Article  17  requires  broadcasters  to  reserve  a  minimum  share  (at  least  10%)  of 
their  transmission  time,  excluding  the  time  allotted  to  news,  sports  events, 
games,  advertising,  teletext  services  and  teleshopping,  for  European  works 
created  by  their  independent  producers.  Alternatively,  Member  States  may 

58 https://ec.europa.eu/digital-agenda/sites/digital-agenda/files/external_swp.pdf 
59 Audiovisual Media Service Directive  
60  The  national  financing  systems  are  compliant  with  EU-law  as  long  as  they  comply  with  the  criteria 
Communication from the Commission on the application of State aid rules to public service broadcasting 
of  2 July 2009. Basically, funding is subject to (1) a clear definition in law of the scope of activity/public 
interest   (2)  no  overcompensation/  control  of  overcompensation  and  supervision  of  the  public  service 
mission (3) transparent evaluation of the overall impact of publicly-funded new media services. 
61 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:41999X0205&from=EN  

62 

 
 
 
 
 
                                                            
require  broadcasters  to  allocate  at  least  10%  of  their  programme  budget  to 
independent  productions.  An  adequate  proportion  of  works  by  independent 
producers should be recent, i.e. less than five years old. 

3.  Broad access to events of societal importance. As underlined by the Council Resolution 
concerning  public  service  broadcasting62:  "Broad  public  access,  without  discrimination 
and on the basis of equal opportunities, to various channels and services is a necessary 
precondition for fulfilling the special obligation of public service broadcasting"  

Figure 25 –The relevance of linear television in the EU 'Big 5'63 

Source: IHS – Screen Digest: Cross-platform television viewing time 

Figure 26 - Means of receiving television in the EU 

Source: Eurobarometer, 2014 

62 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:41999X0205&from=EN  
63 EU 'Big 5' are France, Germany, Italy, Spain and United Kingdom. 

63 

 
 
 
 
 
 
 
 
                                                            
Figure 27 – TV viewing habits per age group in the EU 

Source: Eurobarometer, 2012 

64 

 
 
 
 
The American provider of on-demand Internet streaming media, Netflix, is currently available in 
many  EU  countries:  Denmark,  France,  Germany,  The  Netherlands,  Norway,  Sweden,  Finland, 
Switzerland, Austria, Belgium, Luxembourg, Ireland and United Kingdom. 

Figure 28 - Overview of Netflix deals with EU Telecom Operators 

EU Member State 
Austria 

Belgium 

France 

Germany 

Telecom Operators 
T-Mobile Austria is offering its LTE customers a free six-month Netflix 
subscription from 23 February 2015. 
Proximus (existing customers): six months free Netflix subscription 
Valid for customers with a subscription to at least two products (of which one 
should be Internet Maxi). 
Bouygues Telecom Netflix through its TV set-top boxes from November 
2014.and  Orange 
Deutsche Telekom's Entertain IPTV platform; Vodafone Germany offers a free 
six-month subscription for Netflix with certain plans 
Vodafone deal: Six months of free access to Netflix for all new customers of 
Vodafone deal: Six months of free access to Netflix for all new customers 
Vodafone deal: Six months of free access to Netflix for all new customers  

Ireland 
The Netherlands 
United Kingdom  
Source: European Commission services 

Aetha estimated Consumer Premises Equipment (CPE) costs (CPE costs may be underestimated 
due to the potential requirement of new aerial systems). 

Figure 29 – CPE cost by category 

Cost category 
Satellite dish 

Set-top Box (per TV devices) for cable and satellite 

Installation 

Source: Aetha, 2014  

Cost category 
Installation and purchase satellite equipment (dish, set-top-box) 

Set-top box cable  

Source: LS telcom & VVA, 2015 

Cost in EUR 
50EUR 

70EUR 

Varies in EU 
countries (average 
100 EUR) 

Cost in EUR 
200EUR 

40EUR 

65 

 
 
 
 
 
 
 
 
10.5.4.  Digital Television 

Digital  television  (DTV)  is  the  transmission  of  audio  and  video  by  a  digitally  processed  and 
multiplexed  signal.  Several  regions  of  the  world  are  in  different  stages  of  adaptation  from 
analogue  to  digital  TV  and  are  implementing  different  broadcasting  standards.  Europe  adopted 
the  Digital  Video  Broadcasting  (DVB)  standard;  its  extension,  DVB-T2  offers  higher  bit  rate 
(more data can be carried over the same frequency per second) and makes the system suited for 
carrying HDTV signals on the terrestrial TV channel. 

Figure 30 – Countries with DVB, DVB-T2 and other broadcasting standards  

A video coding format is used to store and transmit digital video content. Several video coding 
formats exist including MPEG-2, MPEG-4 and HEVC. Coding techniques reduce redundancy in 
video data, i.e. limit the amount of information needed to reproduce the content on a TV screen 
thus allowing more content to be transmitted over a certain signal. 

HEVC is the successor of MPEG-4. HEVC is said to double the data compression ratio compared 
to MPEG-4 at the same level of video quality. It can alternatively be used to provide substantially 
improved video quality at the same bit rate. 

10.5.5.  DTT spectrum use in EU Member States 

The  800  MHz  band  comprises  a  range  of  9  channels,  the  700  MHz  band  12  channels  and  the 
UHF band (including 800 and 700 MHz) 49 channels. Decision 2010/267/EU established the 800 
MHz  frequency  band  as  a  digital  dividend  in  the  European  Union  and  Member  States  had  to 
allocate this band (790 to 862 MHz) for other services.  The Radio Spectrum Policy Programme 
(RSPP) mandated the opening up of the 800 MHz band throughout the EU by 1 January 2013. 
This Decision had significant consequences for the national planning of Member States as many 
of them had to reallocate the DTT services to lower frequencies different than the ones initially 
planned. 11 Member States awarded the spectrum by 1 January 2013, while almost all the others 
sought a derogation with regard to the deadline64. This delay i) was detrimental to the roll-out of 
4G  mobile  networks  and  uptake  of  smartphones  adapted  to  the  800MHz  band  in  Europe  ii) 
caused a number of cross-border interference issues. 

64  Report  of  the  Commission  to  Council  and  Parliament  on  the  implementation  the  RSPP  (European 
Commission, 2014)  
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014DC0228&rid=1 

66 

 
 
 
 
 
 
 
                                                            
If the 700 MHz channels were also to be vacated, the changes would lead to a repurposing of 21 
channels  in  total,  which  is  about  43% of  the  channels  previously  intended  for  terrestrial  digital 
TV. 

The  figure  below  shows  the  assignments  (i.e.  operational  broadcasting  services)  that  operate  in 
the VHF and UHF bands for the 19 countries for which LS Telcom obtained data. 

Figure 31 – Distribution of DTT assignments in the VHF and UHF bands (percentage)  

Source: LS telcom & VVA (2015) 

Figure 32 - Expiry dates of existing broadcasting licenses in the UHF band in EU28 

Expiry timeframe 

Number of 
countries 

Percentage of 
countries 

2013-2015 

2016-2019 

2020-2023 

2024-2027 

Expire at some point after 2027 

No answer 

2016-2026 

License renewed annually 

Expires 2032 

No license expiration 

5 

8 

16 

9 

3 

2 

24 

1 

1 

6 

15,2% 

24,2% 

48,4% 

27,3% 

9,1% 

6,1% 

72,8% 

3% 

3% 

18,2% 

Source: RSPG Report on wireless broadband spectrum (RSPG13/552) 

67 

 
 
 
 
 
 
 
 
10.5.6.  Current spectrum harmonisation and usage of sub-1 GHz in the EU  

EU harmonized spectrum for WBB 

Figure 33 – EU harmonised bands for wireless broadband with respect to 1200 MHz objective 
identified in the RSPP 

The setting of a target was requested by the European Parliament to steer Member States' efforts 
to allocate spectrum for wireless band 

Suitable  spectrum  for  WBB  has  been  identified.  The  figure  below  maps  the  EU  harmonised 
spectrum for WBB as well as simulates the effect of the harmonisation of the 700 MHz and the 
2.3  GHz  band  (both  currently  under  consideration  for  an  EU  harmonisation  measure  for  WBB 
use) which would contribute to the 1200 MHz target. 

Figure 34 – Simulation of EU harmonised bands for wireless broadband with 700 MHz and 
2.3 GHz harmonisation measures  

Source: European Commission services 

68 

 
 
 
 
 
 
 
Figure 35 – Current assignments in harmonised EU bands below 1GHz (October 2015) 

Source: European Commission services, 2015 

Status of EU Member States' plans to repurpose the 700 MHz band 

Germany (auction completed) 
Germany’s held in April 2015 a big spectrum auction for the 700 MHz, 900 MHz, 1500MHz and 
1800 MHz bands. Rights of use of the 700 MHz band were equally distributed between the three 
major mobile operators, and the spectrum will become available for effective use for the whole 
territory of  Germany  by  Q2/2019 (starting  in  2018). Germany  imposed  coverage  obligations  of 
50 Mb/s per cell sector with view to achieving 10Mb/s per mobile user for 98 % of the population 
of Germany in line with its national broadband strategy (50 Mb/s for all by 2018, independent of 
technology). Germany  is  organising  a  move  from  DVB-T  to  DVB-T2  and  compensatory 
measures  are  foreseen  for  PMSE  but  are  also  likely  for  DTT  given  that  50%  of  the  auction 
revenues from the 700 MHz band are allocated to the Bundesländer (federal states) which have 
the competence for managing broadcasting frequencies.  

France (auction completed) 
France completed the auction of the 700 MHz band in November 2015. The effective availability 
of  the  700  MHz  band  for  mobile  broadband  is  planned  to  take  place  progressively  across  the 
whole  country  between  2016  and  2019.  France  imposed  coverage  obligations  on  mobile 
operators  which  foresee  three  different  levels  to  be  complied  with  between  2022  and  2030.  In 
particular,  metropolitan  population  must  be  covered  at  98%  by  2027,  main  roads  at  100%  by 
2030 and villages included in the so-called "mobile coverage extension national programme" at 
100% by 2027.  

Finland (authorisation planned) 
The  political  decision  was  taken  in  January  2013  to  transfer  the  700  MHz  band  to  wireless 
broadband,  when  the  minister  requested  the  necessary  legislative  amendments  to  make  this 
possible.  The  formal  decision  will  take  effect  following  WRC-15  with  a  target  deadline  for 
repurposing the 700 MHz band set for the beginning of 2017. A part of the sub700 MHz band 
and the VHF band remain available for broadcasting. 

Sweden (authorisation planned) 
Sweden took  the  decision  on  27  February  2014  to  release  the  700  MHz  band  for  mobile 
broadband and mobile telephony. This decision states that on 31 March 2017, all broadcasting in 
the band 694-790 MHz will cease and the band is available for broadband for the following day. 
The  lower  UHF  band  and  the  VHF  band  remain  available  for  broadcasting.  The  NRA  is 
developing  the  conditions for  access  to  the  700  MHz  band  and  authorisation  is  planned  for 
Q4/2016. 

United Kingdom (authorisation planned) 
The UK regulator Ofcom launched on 28 May 2014 a public consultation about changing the use 
of  the  700  MHz  band  to  wireless  broadband,  which  indicates  2022  as  the  deadline   for  the 
69 

 
 
 
 
 
 
 
 
changeover while an earlier date is possible (from 2020). The consultation closed on 29 August 
2014.  The  UK  has  indicated  that  the  lower  UHF  band  is  required  for  broadcasting  for  the 
foreseeable future. 

Denmark (authorisation planned) 
At the request of the Danish government, the Danish  regulator and the Ministry of Culture has 
been  studying  the  possible  transfer  of  the  700  MHz  band  to  broadband  by  2020.  The  ensuing 
report, issued in June 2014, suggests that a transition would be beneficial, but requires using the 
most  modern  broadcasting  standards.  A  new  plan  'Digital  Growth"  released  by  the  Danish 
Government  in  December  2014  includes  as  its  first  point  the  use  of  the  700  MHz  for  mobile 
broadband from 2020 onwards. 

Ireland (authorisation likely) 
The Irish regulator completed in June 2015 a cost-benefit analysis (CBA) for the repurposing of 
the  700  MHz  band  and issued  the  preliminary  view that  the  700  MHz  band  can  and  should  be 
repurposed as this would represent its most efficient use. The CBA concluded that a net benefit 
of €91 million is to be expected for Ireland if the 700 MHz band is repurposed for WBB in 2018. 

The Netherlands (authorisation likely) 
In  2014,  the Dutch  government announced its intention  to  repurpose  the  700  MHz  band  for 
WBB. A recent public consultation ended in June 2015. 

Status of other countries' (outside the Union) plans to repurpose the 700 MHz band 
The 700 MHz band is allocated or commited to allocate in 42 countries worldwide according to 
the  same  technical  conditions  (compatible  channelling  arrangments  and  power  levels)  to  be 
adopted  at  Union  level (the  so-called  APT  band  plan) in  Argentina,  Australia,  Brazil,  Chile, 
Ecuador, Fiji, Japan, Mexico, New Zealand, Panama, South Korea, Taiwan. Currently, there are 
11 networks active, in particular in Australia, New Zealand and Taiwan. Globally, only the USA 
and  Canada (and  Bolivia) have  diverging  channelling  arrangments  for  the  band  – in  both 
countries the 700 MHz band is already used for WBB. 

70 

 
 
 
 
 
 
 
 
 
10.5.7.  Transition costs for the release of the 700 MHz band 

An indicator for the level of impact in repurposing of the 700 MHz band is the ratio of 700 MHz 
assignments  in  operation  vis  à  vis  the  total  DTT  operational  assignments.  The  theoretical 
reference value is 30% (12 channels in the 700 MHz band over the total 40 channels in the 474 – 
790 MHz range. 

The average of the 19 countries for which data is available leads to a very similar value of 30,2%. 
Countries with a larger ratio than the reference value are more affected by repurposing of the 700 
MHz band (red colour) and countries with a lower ratio are less affected (green colour).  

Figure 36 – Level of impact in repurposing 700 MHz band related to an average of 30% 

Source: LS telcom & VVA (2015) 

An additional indicator for the level of impact in repurposing is given by the transmitter power 
structure of the DTT network in operation as usually it is more difficult to find new channels for 
high power sites than for transmitters radiating with low power.  

71 

 
 
 
 
 
 
 
 
 
 
Figure 37 – 700 MHz transmitter power structure of 18 EU countries 

Source: LS telcom & VVA (2015) 

The selection of representative countries was based on three criteria depicted in the figure below: 
the type of terrain, the number of multiplexers and the percentage of assignments in the 700 MHz 
band.  

Figure 38 – Selected countries and relevant criteria 

Source: LS telcom & VVA (2015) 

72 

 
 
 
 
 
 
 
These  representative  countries  were  used  to  investigate  the  possibility  of  replacing  the  present 
DTT assignments in the 700 MHz band  by available GE06  frequency resources below channel 
49, i.e. restacking the current assignments by using only the sub-700 MHz band. A range of costs 
was estimated based on the expected effort per transmitter/site, which could differ. To retune a 
transmitter from a channel in the 700 MHz band to a channel in a sub 700  MHz band the effort 
expected can vary (some transmitters are easier to retune than others e.g. you need just a laptop 
and plug to the transmitter, the effort may also depend on the power category of transmitter, etc.): 

•  Min value – minimum effort for retuning  
•  Max value – maximum effort for retuning  

Based on the restacking analyses of the 5 representative EU countries, the study team concluded 
that it is not possible to restack all the current assignments. Therefore further coordination effort 
of the regulatory authorities would be necessary to investigate if and how many additional new 
channels could be add to the GE06 plan. This process is currently undergoing. 

The estimated restacking costs, developed on the available data of 18 EU countries and based on 
a  different  cost  per  power  category,  were  benchmarked  with  the  outcome  of  the  results  of  the 
detailed analyses of the 5 countries and extrapolated to total costs for 28 EU Member States.  

Figure 39 – EU28 restacking costs 

Country 

Total costs [€ million] 

Min. 

EU 28 MS 

182 

Source: LS telcom & VVA (2015) 

Max. 

245 

Compared to available information regarding real restacking costs incurred for the repurposing of 
the  800  MHz  band  in  Portugal,  these  estimated  cost  are  correlating  very  well  particularly  for 
countries with similar network topology to Portugal. 

An alternative scenario is that the present DTT system would be upgraded to DVB-T2 with the 
video coding standard MPEG4 or HEVC. In this scenario the costs were calculated assuming that 
the current number and quality of programs would be maintained. The costs are calculated for the 
necessary  number  of  multiplexes  using  DVB-T2/MPEG4  or  DVB-T2/HEVC  (fewer  are 
necessary with the HEVC coding standard).  

Figure 40 – EU28 transition costs to upgrade to DVB-T2 (MPEG4 or HEVC) 

Source: LS telcom & VVA (2015), IHS Technology (2015), European Commission (2015) 

The cost of migrating to DVB-T2 are made up from a combination of equipment costs, which we 
would expect to fall over the time period, and engineering/staff costs, which we would expect to 
rise. Given the rough balance between these two different cost elements, we do not believe that 
the costs for these transitions would vary significantly from year-to-year.   

73 

 
 
 
 
 
 
 
 
10.5.8.  Consumer costs for the release of the 700 MHz band 

To calculate the cost of the replacement of user equipment, the following assumptions have been 
considered: 
  An existing penetration of DVB-T2 receivers of 20% in DVB-T2 countries and 0% in DVBT 
countries in the current year (2015) and an existing penetration of HEVC receivers of 0%; 

  A natural replacement cycle of receivers of 7 years will increase DVB-T2 receiver penetration 
starting  2015  and  HEVC  starting  2018,  assuming  that  all  receivers  purchased  from  today 
onwards are DVB-T2 compatible; 

  The  cost  of  a  replacement  receiver  has  been  taken  to  be  that  of  a  set-top  box  only  since 
regardless of the television used, a new set-top box would be sufficient to provide consumers 
with the new service. The value used for 2015 are:  

  €40 falling 5% per year for a DVB-T2 set-top box; 

  €100 falling 10% per year for an HEVC set-top box; 

In Options 2 and 3, the number of receivers that would need a forced replacement, that is to say, 
those receivers which, by the end of the period in question, would not have been replaced through 
natural  or  accelerated  replacement  would  thus  represent  the  cost  of  migrating  all  remaining 
consumer equipment to DVB-T2 or HEVC. 

There are various values for the penetration of DTT in Member States. The values used by the 
study  team  have  been  taken  from  the  2013  Commission’s  Special  Eurobarometer  39665.  The 
Commission has run the estimation model with the IHS Screen Digest data for primary and total 
DTT penetration. The results for all 28 EU Member States for the three sets of DTT penetration 
figures are shown in the tables below. 

Figure 41 – Cost of forced replacement of DVB-T2 MPEG4 compatible receivers, 2020-2022 

2021 

2020 

1112 
913 
745 

1322 
1122 
947 

Year 
Cost (€ million), Eurobarometer Penetration Figures 
-20% acceleration 
Neutral 
20% acceleration 
Cost (€ million), IHS DTT primary penetration 
795 
-20% acceleration 
653 
Neutral 
20% acceleration 
533 
Cost (€ million), IHS DTT total penetration 
-20% acceleration 
Neutral 
20% acceleration 

1942 
1649 
1392 

1634 
1342 
1096 

945 
802 
677 

2022 

936 
744 
586 

669 
532 
419 

1375 
1093 
862 

Source: LS telcom & VVA (2015), IHS Technology (2015), European Commission (2015) 

65 http://ec.europa.eu/digital-agenda/en/news/special-eurobarometer-396-e-communications-household-
survey  

74 

 
 
 
 
 
 
 
 
                                                            
Figure 42 – Cost of forced replacement of DVB-T2 HEVC compatible receivers, 2020-2022 

2021 

2020 

1954 
1714 
1497 

2452 
2222 
2007 

Year 
Cost (€ million), Eurobarometer Penetration Figures 
-20% acceleration 
Neutral 
20% acceleration 
Cost (€ million), IHS primary receiver 
-20% acceleration 
Neutral 
20% acceleration 
Cost (€ million), IHS total DTT penetration 
-20% acceleration 
Neutral 
20% acceleration 

3670 
3326 
3004 

2925 
2566 
2240 

1767 
1602 
1447 

1408 
1235 
1079 

2022 

1558 
1322 
1116 

1123 
953 
805 

2332 
1979 
1671 

Source: LS telcom & VVA (2015), IHS Technology (2015), European Commission (2015) 

In  Option  4,  consumers  would  need  to  switch  to  another  platform.  For  the  purpose  of  cost 
calculation it was assumed that they would switch to cable (if available) or satellite. In this case 
the  equipment  costs  are  set  at  €40  for  a  cable  set-top  box  and  €200  for  a  satellite  receiver  kit 
(both falling 5% per year), the satellite figure includes €100 for installation. 

Figure 43 – Cost of forced switch to cable or satellite receivers, 2020-2022 

2020 

Year 
Cost (€ million), Eurobarometer Penetration Figures 
Neutral 
913-11959 
Cost (€ million), IHS DTT primary penetration 
Neutral 

1122-12588 

802-9072 

653-8619 

2021 

2022 

744-11361 

532-8188 

Source: LS telcom & VVA (2015), IHS Technology (2015), European Commission (2015) 

75