CELEX: 51993PC0557
Language: en
Date: 1993-11-17
Title: Draft COUNCIL RESOLUTION on a Framework for Community Policy on Digital Video Broadcasting

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                COM(93) 557 final
                                                                 Brussels, 17 November 1993
ir^w^
               Communication from the Commission to the Council and the European Parliament
                                  DIGITAL VIDEO BROADCASTING
                                   A Framework for Community Policy
           IM
                                                  Draft
                                       COUNCIL RESOLUTION
                  on a Framework for Community Policy on Digital Video Broadcasting
                                     (presented by the Commission)
  i'?;i^:,wm
 ---pagebreak---                    DIGITAL VIDEO BROADCASTING
                    A Framework for Community Policy
Communication from the Commission to the Council and the European Parliament
                                                           27 October 1993
 ---pagebreak---                                           -1 -
                                TABLE OF CONTENTS
                                                            Page
Introduction                                                    1
PART 1          THE POTENTIAL OF DIGITAL VIDEO BROADCASTING     4
1.1 Advantages of Digital Television                            4
1.2 The Digital Television Chain                                5
1.2.1  Source Coding                                            5
1.2.2  Multiplexing                                             5
1.2.3  Modulation and Channel Coding                            5
1.2.4  Conditional Access                                       5
1.3 The Service Potential                                       6
1.4 Research and Development                                    8
1.5 Standardization                                              9
1.6 Implementation Issues                                      11
1.6.1  The Issue of Spectrum Availability                      11
1.6.2  The Issue of Timescales                                 13
1.6.3  The Issue of Community Decision Taking                  14
PART 2          DIGITAL VIDEO BROADCASTING ACTIVITIES
                IN EUROPE, THE UNITED STATES OF AMERICA
                AND JAPAN
2.1    Europe                                                  15
2.1.1  The European Digital Video Broadcasting Group           15
2.1.2  The Work of the Digital Video Broadcasting Group        16
2.2    The United States of America                            18
2.2.1  Satellite Television                                    18
2.2.2  Terrestrial Television                                  18
2.3    Japan                                                   20
 ---pagebreak---                                            - 1! -
PART 3        A FRAMEWORK FOR COMMUNITY POLICY              21
3.1   Principles of Community Policy                        21
3.1.1 The Need for a Long Term View                         21
3.1.2 The Need for Continued Research and Development       22
3.1.3 The Need for Appropriate Standards                    23
3.1.4 The Need for Full and Open Consultation               23
3.1.5 The Need to Defend the Public Interest                24
3.2   Next Steps in the Development of Community Policy for 24
      Digital Video Broadcasting
3.2.1 Consultation of the Market Actors                     24
3.2.2 Research and Development                              25
3.2.3 Standardization                                       26
3.2.4 Frequency Planning and Implementation Scenarios       26
3.2.5 Cooperation with Third Countries                      27
3.2.6 Reporting                                             27
3.3   Conclusion                                            27
ANNEX:        Draft Council Resolution
 ---pagebreak---   This Communication in a response to the invitation of the Council to the Commission to report
  on digital television made in Council Resolution 93/C209/01 of 22 July 1993. It surveys the
 present and evolving state of the art of the technology. It discusses issues relating to the
  translation of technological potential into market implementation. It described the activities
  and plans already underway in Europe, the United States of America and Japan in relation to
  the exploitation of this new technology.
 Against this background the Communication sets out proposals for a framework of Community
 policy in this area. It seeks to initiate a process of consultation which will in time lead to
 specific Community policies and activities in this field.
  The preparation of the Communication was greatly facilitated by the open access which the
  Commission had to the work of the European Group on Digital Video Broadcasting - a body
 broadly representative of all relevant interests in this area.
 INTRODUCTION
 There can be no doubt that the business of delivering television services to the viewer is
 undergoing profound change throughout the world and especially in Europe at this time.
 The last five years has seen an explosion in the number of satellite television services in
 Europe and the number of European households connected to cable grow to some 35 million.
 New forms of service have also been pioneered, including thematic channels devoted to specific
 interests such as films, sports, music and so forth.
 Competition in the industry has intensified in this period. The number of services has
 increased but the number of hours viewed has not had an equivalent increase. Advertising
 revenues are tight at a time of recession in Europe and licence fees are being squeezed. New
forms of revenue are being sought with increasing attention being given to subscription and
pay-per-view services.
The same period saw an acceleration in the development of technology relevant to television
delivery. New services such as wide-screen TV saw early commercialization in Europe while
preoperational High Definition TV saw services were introduced both in Europe and Japan.
The technological development with the greatest potential for change has, however, been the
rapid progress in perfecting digital compression techniques. Fully-digital television holds great
promise for new, flexible and cost-effective television services within the medium and longer-
term future. As well as the potential for new service offerings, this technology may pose
threats to the established broadcasting scene by introducing a powerful new element of
competition which some economic actors may be able to exploit more rapidly than others. The
potential for change is such that it is not possible to predict with any precision the structure of
the industry in ten year's time.
The real issue is, however, much broader than digital television since with the widespread
implementation of digital television, homes will be connected, for the first time, to a large
digitized information gateway.
In fact digital technology will revolutionize not just television but also a wide range of existing
and new audio-visual and other communications services. The future global information
networks, if properly implemented, will have the potential of providing easy and flexible access
to all kinds of information whether in the form of images, sound, text or data. Television as a
mass medium has the potential of accelerating the trends towards the creation of the future
Integrated Broadband Communications (IBC) network and bringing it into everyone's home.
 ---pagebreak--- The main conclusions arrived at in the analysis given in the text may be summarized as
follows:
      digital technology offers significant potential benefits in relation to television service
      quality, the flexibility of its provision and the more efficient use of spectrum, compared to
      current analogue technology and, more importantly, digital television has the potential of
      accelerating the implementation of global information networks delivering a wide variety
      of information services to consumers in a convenient and flexible manner;.
      the complete transition from the existing analogue system to a digital system is a long-
      term process requiring, perhaps, two decades to complete. This transition will have to be
      organized and coordinated in order to enable the full potential benefits of the technology
      to be achieved in practice. Some of the benefits of the new technology will not be fully
      obtained until the end of the transition period. In the meantime it will be important to
      avoid the situation where early or not-well-conceived implementations of digital television
      in the market makes it difficult or impossible to introduce subsequent more general and
      more advanced steps in a compatible manner - thus inhibiting future market development
      both for television itself and for the broader global network;
      the Community is thus faced with a major political choice: can this transition be left to the
      market alone, where timescales for return on investment are typically much shorter than
      the time needed to make this transition in an optimum fashion, or is it appropriate for the
      Community to develop a longer term vision of the future global networks and encourage
      market parties to make their investments and market offerings in ways which are
      compatible with such a long term vision?
The conclusions therefore drawn in this Communication result in the identification of two
different kinds of issue for Community policy.
The first set of issues involve aspects where it is clear that the Community can and must act.
They include:
      the intensification and adequate coordination of Research and Development in this field;
      the encouragement of appropriate standardization of digital television systems including
      digital HDTV;
      the protection of the public interest through ensuring free and fair competition and
      through consumer protection;
      to continue the dialogue with third parties including the United States of America and
      Japan with a view to identifying and agreeing common elements in the future television
      systems to be implemented throughout the world.
Another set of issues, perhaps much more important than those above, will require a more
profound debate as to whether the Community possesses the means necessary to take the
appropriate initiatives. They include:
      the development of a long term perspective for the global Integrated Broadband
      Communication networks of the future including but not limited to digital television;
      the development and implementation of consistent migration strategies from the present
      analogue television situation to the future digital one, including the necessary replanning
      of frequency spectrum allocations in this connection;
      the desirability or otherwise of making certain standards mandatory through Community
      regulatory action.
 ---pagebreak--- A separate set of issues concerns the challenges stemming from the introduction of digital
delivery techniques that face Community and Member State broadcasting regulatory
instruments, such as Directive 89/552/EEC ("television without frontiers"), which play today
an important role in protecting the public interest and provide the legal framework for
broadcasting activities in the Community. These issues, and the impact of digital technology
on the film and programme production sectors, are not discussed in this document. They will,
however, be dealt with by the Green Paper on Audiovisual Policy the Commission intends to
issue in 1994.
The Council and the European Parliament are invited to debate the issues identified and to give
guidance for the further development of Community policy in this area with special attention
being focussed on the more challenging issues outlined in the second list above, where it is to
be noted that our trading competitors in developed regions of the world such as Japan and the
United States of America do already have the will and the means necessary to take the long-
term view and to see its consequences implemented in practice.
A draft Council Resolution addressing those issues is annexed to this Communication.
 ---pagebreak--- PART 1            THE POTENTIAL OF DIGITAL VIDEO BROADCASTING
The digitisation of information is well known in the context of modern computer and
telecommunications systems. Digital processing is also used in today's television systems - in
the studio and in the receiver - but all current systems use analogue technology for transmission
of the programme "over the air" and in cable networks to the viewer. Developments in digital
compression techniques now open the possibility of "fully digital" television where the signal is
digitized throughout the whole chain from the studio to the viewer.
Although this Communication deals primarily with digital television broadcasting it should be
emphasized at the start that television is only one of the "information services" which will be
impacted by new digital technology. It is perhaps not an exaggeration to say that we stand at
the threshold of a new revolution in communications in which digital technology will enable the
transition to global information networks in which all forms of information - whether in the
form of moving or still pictures, sound, text or data - will be made widely available in a
flexible manner.
Television is a mass market phenomenon and the w id escale penetration of digital television has
the potential for accelerating the pace of the revolution towards Integrated Broadband
Communications (IBC) networks of the future.
l.l   Advantages of Digital Television
The potential advantages of optimally implemented digital television systems are very great and
include:
      interoperability between services. There is the possibility that a properly conceived
      implementation of digital television could allow easy interworking between television
      terminals, multimedia workstations, personal computers and other information terminals
      resulting in easy and flexible access to a wide range of information services;
      clear and stable pictures and sound;
      efficient use of the electromagnetic spectrum. This is a potentially very important
      advantage, since spectrum is a finite valuable natural resource with much competition for
      its use. Some calculations show that with proper planning a gain of between 30 and 40
      times in the efficiency of spectrum use can already now be achieved with digital
      techniques;
      flexibility in the provision of television services.         Digital techniques allow the
      configuration of services to be adapted in a flexible manner, allowing a variety of
      different customer needs to be met when and as required. Indeed, the high bit-rate
      transmission system developed for digital television could also distribute the digital data
      for many other applications, thus providing "Integrated Service Digital Broadcasting"
      (ISDB);
      cost considerations. Experience shows that high volume production and higher levels of
      integration of integrated circuits leads in time to dramatic reductions in unit costs. In a
      mature market for digital TV, therefore, the prospect exists of high functionality at
      relatively low cost - as in the computer industry.
The advantages listed above are described as potential. There are significant obstacles to be
overcome before they can be realized in practice. While it is important to distinguish potential
from reality and to recognize that there are various timescales - some of them quite long -
before potential can be transformed into reality, nevertheless taken together the identified
advantages are so great that major efforts to achieve them are fully justified.
 ---pagebreak---  1.2 The Digital Television Chain
In order that some aspects of the ensuing discussion be understood it is necessary here to give a
simple description of the digital television chain. Much more detail is given in the
accompanying volume to the Communication.
The description of television systems differs in the digital environment from that which
pertained in the analogue era. Analogue TV systems were specific to the application (e.g. 625
line TV) whereas the digital environment is generic^ dealing simultaneously with different
kinds of service including, but not limited to, TV. Thus the digital environment is essentially
modular with different services using different configurations of standard modules as
appropriate. This approach facilitates the interoperability between different service functions
which constitutes a major advantage of digital technology as indicated above.
Figure 1 below gives a block diagram of the various elements in a digital TV system and their
inter-relationship.
The various elements in the chain are described briefly below:
 1.2.1   Source Coding
The volume of information in the "raw" digital image signal is inherently very large and is too
much to send through a normal TV channel. Source coding is the process whereby the bit
stream containing the picture information is compressed (i.e. the number of bits to be
transmitted per second is reduced) in such a way that vital information is not lost and the
picture can be reconstructed in all essentials without unacceptable degradation at the receiver.
Similar techniques can be used to compress the digital data representing one or more sound
signals and other forms of data.
 1.2.2   Multiplexing
The use of multiplexing allows several different components of a television programme (e.g.
picture, several sound channels, associated data etc) to be combined into a single bit-stream and
similarly several different television programmes to be carried simultaneously in a single
broadcast television channel.
1.2.3    Channel Coding and Modulation
With digital transmission it is essential to provide protection against some loss or corruption of
the broadcast data by deliberately introducing additional data derived from it into the multiplex
signal; this is known as channel coding.
Finally, in order that the multiplexed information can be broadcast, it must be imposed on one
or more carrier signals that have the required propagation characteristics. This process is
called modulation.
 1.2.4   Conditional Access
Conditional access systems enable broadcasting companies to determine which potential
viewers may receive their programme, notably in the case where payments must be made for
this service. In practice a conditional access system involves: scrambling the signal; the use of
encryption techniques; the operation of a subscriber management centre - an office dealing with
the commercial aspects of the system, such as promotion, tariffs and processing requests for
authorization; and subscriber interface equipment which sometimes involves the use of "smart"
cards.
 ---pagebreak---  Figure 1 below gives a block diagram of the various elements in that part of a digital TV
 system involved with signal processing for transmission and their inter-relationship.
                                                   Access-control
                                                     Information
      Video                            -±-
      signal        Video
                     source
    (HDTV or *
    otherwise)
                     coding
                                                                       -ÀL
                                                   Source         Programme
                                                   Error            multiplex
                                      Comp-       Correction
                                      onent
                                      Multi-                           J£.
      Audio        Audio
                                      plex
      signals  M    source                                          Channel
                                                                                   to transmitter
                    coding                                         coding &                       >
                                                                   modulation
      Associated data
      Additional programme(s) - if any
                           Figure 1 : Basic structure of a digital television system
 1.3 The Service Potential
The approach to digital television currently discussed in Europe is to consider that the market
may require different grades of television services to be made available in a flexible manner.
(See section 2.1 below where the work of the European Digital Video Broadcasting Group is
outlined).
One (of several potential) categorization systems identifies distinct levels of picture resolution:
       High Definition Television (HDTV), for use with stationary antennas and having a picture
       quality level roughly five times the current broadcast PAL and SEC AM.
       Extended Definition Television (EDTV), for use with stationary antennas and having a
       picture quality roughly twice current systems.
       Standard Definition Television (SDTV), having a picture quality equivalent to current
       systems. It can be used with portable receivers, as well as fixed antennas.
      Limited Definition Television (LDTV), for use with mobile receivers having picture
      quality levels roughly one quarter of current television systems.
The flexibility referred to above corresponds to the possibility of reconfiguring the available
bit-rate between different service options on a programme-by-programme basis to meet
different viewer requirements.
One of the possible ways to achieve this flexibility is by using a so-called hierarchical system,
wherein a single bit stream is broadcast which contains, embedded within it, information
needed for all service options and levels of ruggedness.
 ---pagebreak--- To illustrate what an hierarchial system and service multiplex could mean in practice for
service provision, Figure 2 shows one set of possible options for a single satellite channel.
                                                                      Can be raoénfiswad to                                      C MteraMnfigurarfto
                                                                                                       I EOTV I                                                ÊâflEa?,
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                                                                    Figure 2: Possible satellite DTVB service
                            (Proposal of the Working Group on Digital Television Broadcasting)
In this example each satellite channel can carry either one HDTV and a second EDTV
programme or eight SDTV programmes etc... or any equivalent combination required. An
HDTV receiver could receive any of the programmes at the equivalent quality level. An
EDTV receiver could receive the HDTV programme at EDTV quality level or any of the eight
SDTV programmes (at SDTV level). Generally, terrestrial broadcasting is subject to greater
constraints but Figure 3 illustrates possible service options under investigation for one
terrestrial channel.
                                                       Proposals for terrestrial DTVB in Europe
        HDf\75iition»ry
                                                                                                                                                                 EDTV/
                                                                                                                                                                 tUUon
                                                                                                                                                                  O n . i SDTV/
                                                                                                                      EDTV/
                                                                                                                      station
                                                                                                                                 SDTV/
                                                                                                                                 pan
                                                                                                                           1
                                 reconfigured
                                                                                                                                       LDTV/
                                                                                                                                       mobile
                                                                                                                                                                  Two , S D T V '
                                                                                                                                                                         . port
                Fini propoMi of the WGDTB
                                                                                                                   Nonnil UHF channel
                                                                                                                    bandwidth I M H z
                                                                                                                                  Second propotil of the WGDTB
                                                                                                                                                                    I
                                                        Figure 3: Possible terrestrial DTVB service
                     (Proposal of the Working Group on Digital Terrestrial Broadcasting)
 ---pagebreak---                                                   8
In this example each terrestrial channel can carry a HDTV programme which can also be
received in EDTV by an EDTV receiver or in SDTV by a portable receiver. An alternative
would be to transmit two EDTV programmes which would be receivable in EDTV quality by
EDTV and HDTV receivers or in SDTV quality by portable receivers.
Further detail on those issues is given in the accompanying volume to this Communication.
The main point to be emphasized here however is the possibility of designing digital television
systems which are capable of responding in a highly flexible manner to a variety of market
requirements. Further work at the research and development level and at the standardization
level must be done before such systems can be made available. In the meantime it will be
important to ensure that early implementation of digital television in the market will not
preclude the subsequent compatible implementation of more sophisticated systems in the future.
1.4 Research and Peyeippment
For some years now a number of important R&D projects on digital television have been
underway in Europe at national level or through international collaboration.
At national level the Swedish project HD-DIVINE and the German project HDTV-T are
concerned with terrestrial HDTV. The UK project SPECTRE and the French project
STERNE are investigating conventional quality terrestrial television.
At international level the Community project RACE dTTb deals with terrestrial and cable
digital television broadcasting. This project has the potential of integrating all or certain parts
of the national projects mentioned above and extending their scope. Also within the RACE II
programme are two satellite-oriented projects HD-SAT and FLASH-TV and two cable oriented
projects FIRST and BAF.
Under the auspices of the EUREKA framework of international collaboration there is the
VADIS project which provides European inputs to MPEG (the Motion Picture Experts Group
of the International Standards Organization - see section 1.5 below) and the EUREKA 256
project which has developed flexible digital codecs.
In Figure 4 below the various elements of digital television systems are identified and the scope
of the European R&D projects mapped onto them.
Generally it can be concluded that Europe is strong in R&D activity in digital television.
Nevertheless there is scope for further development under three general headings:
i)    The existing R&D projects could be better coordinated to eliminate overlaps, identify and
      fill in gaps and ensure the overall coherence of the effort in an efficient manner.
ii)   Certain missing elements need to be addressed as a matter of urgency. Those include
      aspects of satellite digital broadcasting (much of the European work to date has focused
      on terrestrial broadcasting). Source coding, modulation and overall systems concepts for
      satellite needs to be investigated as also does the conversion of satellite services into a
      physical format that can be used on cable networks. This field is especially important as
      the earliest implementations of digital television in Europe are expected to be by satellite,
      and the number of homes supplied through cable networks is three times that equipped for
      direct satellite reception.
iii) R&D must become progressively focussed on the practical realities underlying
      implementation in the market. It is argued in section 1.6 below that it is here that the
      major challenges to the success of digital television in Europe will occur. Once clear
      implementation scenarios and migration strategies are agreed, R&D should be directed
      beyond generic technology to the specific issues required to achieve the market
      implementation in practice.
 ---pagebreak---                                         Fields of activity in the existing projects in Europe
            Monitoring and
              Maintenance
           Source Equipment
                                    ©   frequency Spectrum^
                                                 Planning
                                                                            Home Equipment
                                                                                Reoenrar
                                                                                   (Dmçtay I eon
                                                                                                      Auxiliary Activities :
                                                                                                      Syaaant Raquèamanw
                                                                                VCRIntatfaoa          I eat and Evekietion
             for Video. Audio, Data        Network Planninc                     C                     Hardware {Prototypal 0 e » \ ^ *
                                                                                                      Reletionehip to Otnar Modukaj
                                                                                                      Reietronerup to Inter national Bodiee
                                                                                                      Technical Pobeoetion*
           Baseband Coding                Channel Coding and
            Video                               Modulation                 Distrib. Equipment J
                 IDTV                      for larreeaial land Cabta)         leneatiel Ifenemrtter
                 SDTV     f   1 A ,           SatoWta (and Cabta),
                 »DTV       \ l x m
                 HDTV
           Audio                                                                                           Relevant European
                 Multichannel                                                                              Projects:
                 Stereo                       Multiplexing        II.LPIJ                                  HO-OIVINE                   1
                 Mono
                                              on Ba—band and/or              Point-to-Point ServJ          SPECTRE
           Data                                                                                            STERNE
                                  O;
                                          Modulated- Signal Laval far
                                                                                 on Mutttotax Level
                                                                                                    ©
                 fetetext                                                                                  RACE d T I b
                 Cond. A C C M               Hierarchical Syalama or                                       HDTV-1
                 Header»                     Mutticata Syetema                                             VACXS
                                                                          0
                 Deeorjptora..                                                                             FLASH-TV
                                             Inluding                                                      HO-SAT
                                                                                                           Eureka EU 2 5 6
                                             Flexibility                                                   EBU Work. Party R
                                                                           Channel Managem.
          Point-to-Point Ser                 Scalability                                                   EBU Work. Party V
            on Baaaband Laval
                                    Ë)                                     (Program) Multiplex             lit M i l : Tit+a • i e e
                            Figure 4: Fields of activity in existing projects in Europe.
                  (Analysis of the Working Group on Digital Television Broadcasting)
1.5 Standardization
In broadcasting standardization is necessary in order to ensure the free interchange of signals,
programmes and the equipment used to produce and receive them. An ideal world would be
one in which common standards were used everywhere, where programmes made in one region
could be readily transmitted in any other part of the world, without the need for conversion,
and where radio and television signals and receivers are interchangeable.
This is unfortunately not the case today. There are four colour television systems (PAL,
SECAM, MAC and NTSC), with many incompatible variants in different parts of the world -
even within the Community. Bands in the electromagnetic spectrum are also unevenly
allocated with different bands in different parts of the world.
It would appear to be self-evident that certain aspects of broadcasting should be standardized if
possible. Common signal formats make it possible to achieve the economics of scale of
equipment production, and thus bring unit costs down. Failure to achieve standardization may
also lead to user confusion, resistance to invest and thus the retarding of market development.
There are those who argue on the contrary that standardization tends to freeze the development
of technology, inhibiting rapid future progress. It is also sometimes in the commercial interest
of operators to use proprietary systems which are not available to other operators.
Policy aspects of standardization of broadcasting will be addressed in Part III of this
Communication; this section concentrates on the bodies active in broadcasting standardization
at the world and regional levels and on their areas of competence.
 ---pagebreak---                                                   10
 It was mentioned in section 1.2 above that digital television systems are combinations of
 different generic elements. Different bodies at world and regional levels deal with the
 standardization of these different elements. Although they work independently in practice they
 generally maintain close liaison as far as possible.
 At world level the Radiocommunications Bureau of the International Telecommunications
 Union (ITU/RB) deals with the standardization of broadcasting. The ITU/RB aims to produce
 "Recommendations" which are not legally enforceable as such. In relation to digital television
the ITU/RB is likely to be influential on the standardization of the modulation and channel
coding elements.
Also at world level the International Standards Organization (ISO) and the International
Electrotechnical Commission (IEC) are agencies concerned with the standardization of
equipment, consumer and industrial products.            Under the auspices of both of these
organizations a subgroup - the Motion Picture Expert Group (MPEG) - was established to deal
with the standardization of source coding and multiplexing of audio-visual systems. The group
has already standardized VHS-quality video (MPEG-1) and CD quality audio. The group is
now addressing systems with higher video qualities up to HDTV. The group is moving
extremely rapidly and it is now fully expected that a generic International digital video
Standard, MPEG-2 will be adopted in November 1993. The group is, in addition, preparing a
new standard, MPEG-4, dealing with low bitrate coding of audio-visual programmes with a
deadline of 1997 for a draft specification of a standard which will be suitable for a whole range
of new applications, including interactive mobile multimedia communications.
At the regional level, the European Telecommunications Standard Institute (ETSI), and its joint
technical committee with the European Broadcasting Union (EBU/ETSI JTC) will set
broadcasting standards for Europe. The European Committee for Electrical Standardization
(CENELEC) is concerned with the standardization of consumer and industrial equipment and
would be the body to standardize conditional access systems. In Europe also the Digital Video
Broadcasting Group (DVB) (see Part II) is very active in developing specifications to be
contributed to standardization bodies for adoption as standards. Currently the DVB group is
proposing to EBU/ETSI that the MPEG-2 system be adopted as a European standard for source
coding and multiplexing.
Figure 5 below sets out the bodies involved in developing broadcasting standards at National,
European and World level. The whole system works by means of a formalized series of
interactions between these bodies at each level and between levels. The final results are
National, European and World standards as outlined above.
In the United States the Federal Communications Commission (FCC) aims to set a US standard
for terrestrial HDTV in 1995 or 1996 (see Part II). At the present time certain aspects of the
MPEG-2 system are included in the evolving US system's design. The system's design is
being prepared under the auspices of the Advanced Television Advisory Committee which will
make a recommendation to the FCC for a standard in the next year or so.
 ---pagebreak---                                                        11
      National         National             Consumer        Telecoms
                                                                               Broadcasting
       level           Standards            Electronics     Administrations/
                                                                               Companies
     (Europe]          Bodies               Companies       Operators
      European         CEN (non-    CENELEC           CERT       ETSI| | EBU 1 ELGDVB
       level           electrical)  (electrical)    European     JTC EBU/ETSM Technical
                                                     Radio                        Module
                                                     Office
      World           ISO (non-        IEC                         | ITU
      level           electrical)   [electrical)              VYARC Radiocommunications
                       ISO/IECJTC/WGMPEG                        _            Bureau
              Figure 5: The principal bodies involved in broadcasting standardization
                                    at National, European and World levels
1.6 Implementation Issues
At the beginning of this Communication it was argued that the potential advantages of
optimally implemented digital television systems are very great. The words optimally
implemented are now emphasized.
History shows clearly that the mere existence of new technology does not ensure its uptake in
the market. Furthermore even when such technology does impact the market it can often be
seen with hindsight that better ways could have been defined for its introduction.
There are several important challenges to be met before digital television systems can be
effectively implemented in the market in Europe and before the potential benefits of this new
technology can be fully realized in practice.
This section sets out for discussion some of the underlying issues involved. It is considered
that it is in this field of effective implementation that Member States will wish to have the most
profound reflections and will need to take the most far-reaching decisions.
1.6.1     The Issue of Spectrum Availability
This issue is mainly of importance for terrestrial broadcasting. Satellite broadcasting (and of
course cable distribution) are less concerned. The situation in relation to existing frequency
planning in Europe is set out in the accompanying volume. Two aspects are emphasized here.
Firstly there is in general very little spare spectrum for new terrestrial broadcasting in Europe
and secondly the frequency planning situation varies widely between countries, with, for
example, channel occupancy in the VHF/UHF bands very close to saturation in Italy while the
position is much less constrained in Scandinavia.
It should be recalled that the existing spectrum allocations involve long-term commitments with
users and operators. It is very difficult if not impossible to withdraw existing television
broadcasting services from the viewers suddenly or to impair their technical quality greatly
while making a transition to a new system. Long transition periods will be required between
old and new systems and they may involve costly practices (both in terms of spectrum usage
and in financing) such as simulcasting in the meantime. The US plan for terrestrial HDTV
 ---pagebreak---                                                   12
involves a fifteen year simulcast period before NTSC is finally withdrawn. It will thus be at
least two decades before the US makes the complete transition from analogue to digital TV. It
may also be worth pointing out here that the US frequency planning is in general less
constrained than is the case in Europe.
When the present frequency assignments for terrestrial television broadcasting in Europe were
made, it was regarded essentially as a public service, and therefore they were designed to
ensure that virtually the whole population could satisfactorily receive the appropriate national
or regional programme services. Because of the technical constraints of the PAL or SECAM
system used, mis requires not only a network of high-power transmitters located about 100 km
apart, but also many hundreds or thousands of low-power "gap-filler" re-transmitters, such that
the transmissions for each programme service require a total of about nine channels. As the
bands currently allocated for terrestrial television broadcasting in Europe provide at most a
total of 11 VHP + 48 UHF channels, they cannot accommodate more than about 6 national
terrestrial television programme services on this basis. In the larger European countries, at
least one set of "regional" programme services takes the place of a potential national network.
Elsewhere, notably in the United States, frequency assignments for terrestrial television have
been granted according to the "local market" approach: within each major conurbation,
assignments for as many high-power transmitting stations as possible are grouped together so
that several different "stations", each responsible for its own programming, can compete on an
equal basis to serve that market; "gap-filler" re-transmitters are used mainly to ensure that all
stations in a market have the same coverage.
In section 1.1 it was stated that an increase of between 30 and 40 times in the efficiency of
spectrum usage could be achieved using appropriate digital techniques. This very high number
results from the assumption that a system such as the COFDM modulation system is employed
in Europe. The use of COFDM would allow the construction of "single frequency networks"
(SFN) avoiding the need, as at present, to use different frequencies in adjacent regions for the
same service, thus using up much more spectrum per service. It should be emphasized that
such efficiency gains can only be achieved if such SFN can be implemented and will accrue
only when the very lengthy transition has been made.
It is important to appreciate that such SFN operation (enabling full national coverage of up to
five digital programme services to be provided within one of today's channels) corresponds to
the existing practice in Europe, but not to that in the United States. Indeed, because SFN
operation is incompatible with the long-standing "local station" approach to television
broadcasting. This situation could limit the possibility that COFDM would be adopted in the
United States.
It was pointed out above that the spectrum issue is largely of importance for terrestrial
broadcasting, with the situation for satellite being much easier. The obvious corollary of this is
that satellite television services may have a competitive advantage with the new technology and
the implications for the future of terrestrial broadcasting will have to be faced.
The above analysis raises the issue of the optimum allocation of terrestrial frequencies in the
medium and longer term. Spectrum is an extremely valuable natural resource with much
competition for its use and if the new technology allows potentially a dramatic increase in
efficiency, it will become progressively more untenable to maintain the status quo as time
passes.
The conclusions of this section are:
*      the recognition of the constrained and uneven frequency planning situation for terrestrial
      television in Europe;
*      the recognition that digital technologies particularly using COFDM and single frequency
      networks has the potential for a dramatic increase in the efficiency of use of the spectrum;
 ---pagebreak---                                                   13
 *     the recognition that the status quo cannot be maintained into the future and thus;
 *     the need to develop practical and implementable migration strategies for the transition
       from the existing to the future frequency planning regimes, and the need for the Member
       States and the Community to take the necessary decisions in a coordinated way to ensure
       the achievement in practice of the benefits of the new technology.
 1.6.2    The Issue of Timescales
It is clear from the above discussion that the full introduction of a new network technology
such as digital terrestrial broadcasting has a long planning horizon, particularly when, as has
been stressed above, it is to be part of a global information network providing many different
services simultaneously.        In Europe, private operators are increasingly active in the
broadcasting market. The timescales for the return on investment of such operators may be
shorter than this. This can lead to tension in the planning process, especially if early market
entry were to make more difficult or even impossible the subsequent general transition to the
optimal overall system.
Another issue arises in relation to the generalized desire to wait until the "ultimate" technology
is available before implementation decisions are taken. This is based on the false assumption
that this "ultimate" technology will ever exist. On the contrary, the history of technological
progress shows that constant improvements are achieved over time. Every implementation
decision therefore involves acceptance of systems compromises which may not be necessary say
five years later. This cannot argue in favour of constantly waiting for these improvements,
however, as that would simply lead to inaction and the failure to achieve the tangible benefits
which could be obtained by using current technology.
This issue also adds an important dimension to the international environment. The history of
television is replete with examples of one region of the world developing and seeking to
implement a new television system, only to find after three or four years that another region
wishes to introduce further improvements, followed in turn by a third region opting for a
system that purports to be even more advanced a few years later. Indeed, there is potentially
no limit to the number of iterations in the cycle. Technology is advancing constantly and there
is no compelling need -viewed from the local, regional perspective - why any region should
accept technical compromises that would be unnecessary for its own implementation
circumstances, and in whose selection it played no part, even though those compromises may
have been crucial for the first region at the time it was planning to implement the system
originally. This dimension has always caused difficulties in the past. It has become even more
pronounced in recent times, threatening to block the emergence of a common global approach
to advanced television that would be simultaneously acceptable in Europe, Japan and the USA.
The analysis in this section argues in favour of a Community policy of:
*      defining a reasonable long-term vision of the future requirement of advanced television
       systems in order to guide commercial and government strategies in this field;
*      seeking, through international negotiation, to break the cyclical process whereby the three
       regions of the world seek to "leap-frog" each other's systems-planning.
 ---pagebreak---                                                   14
1.6.3    The Issue of Community Decision Taking
Certain aspects of television broadcasting will always retain a regional or local character.
Nevertheless the process of European integration means that the planning of television systems
and networks can no longer be done at national level alone. The single European market with
its implications for manufacturing and services and the potential for pan-European broadcasting
to provide easier access by all Europeans to the cultural diversity within the Community, argue
compulsively for a common approach. In addition satellite television knows no borders and
terrestrial frequency planning requires significant coordination across the borders of the
densely packed countries of the Community.
The Community dimension of future television planning is therefore large. Europe cannot
afford the costs that would be inherent in a fragmented approach which would inhibit market
development and limit access to Community-wide information provision and cultural offerings.
In practice, however, experience shows that the instruments available to the Community for
implementing new television systems are relatively weak. This contrasts sharply to the
situation of the USA where the Federal Communication Commission can ensure
implementation through powerful regulatory means including the setting of mandatory
standards and the control of the allocation (and withdrawal) of spectrum. By contrast the
European consensus-based approach is vulnerable to attack by any powerful interest which is
unwilling to accept compromises not in its immediate interest.
This issue will have to be addressed by the Community. Weak decision-making processes
could lead in the future either to a fragmentation of approach or a paralysis of inaction. In
both cases the potential benefits of digital television technology may not be achieved or may be
seriously compromised.
 ---pagebreak---                                                    15
 PART 2            DIGITAL VIDEO BROADCASTING ACTIVITIES IN EUROPE,
                  THE UNITED STATES OF AMERICA AND JAPAN
 This part of the Communication deals with the plans in the three regions for the introduction of
 digital video broadcasting services and the processes preparing for this.
 2.1 Europe
 Over the past decade Europe has completed development of advanced television systems based
 on MAC technology: D2MAC for 625 line services with 4:3 and 16:9 aspect ratios, and
 HDMAC for HDTV services. These systems show excellent performance: D2MAC is in the
 early stages of commercial exploitation and HDMAC is available for use by broadcasters
 wishing to provide HDTV services soon. Both systems are designed for use on satellite and
 cable.
 The Council has consistantly affirmed, through Decisions 89/337/EEC, 89/630/EEC,
 93/424/EEC and Directive 92/38/EEC, the importance for European industry, broadcasters and
 viewers of High Definition Television.
The market implementation of commercially viable HDTV in Europe for broadcast television
 and for non broadcast applications, remains an object of Community policy.
2.1.1     The European Digital Video Broadcasting Group
Towards the end of 1991 a group of broadcasters, industrialists and government officials came
together informally to discuss the potential for and requirements for digital terrestrial television
broadcasting in Europe. The Commission participated in the meetings of the group from an
early stage, encouraging it in its work and encouraging it to expand its activities both in scope
and in membership. By the summer of 1993 the European Launching Group for Digital Video
Broadcasting had expanded its scope to include satellite and cable and its membership to some
thirty to forty organizations. These organizations included: broadcasting companies, both
public and private, and both terrestrial and satellite; manufacturers; satellite and cable
operators; government administrations and European international organizations.
The Launching Group prepared a Memorandum of Understanding (MOU) setting out its aims
and methods of working. This MOU (see accompanying volume) is open for signature and has
already been signed by the 85 organizations who are listed also in the accompanying volume.
The Launching Group has thus made the transition from an informal grouping to an established
body, called the European Digital Video Broadcasting Project.
The aim of the group as set out in Article 1 of the MOU is:
"to create in Europe a framework for a harmonious and market driven development of digital
television via cable, satellite and terrestrial broadcasting.
This shall be realized through:
      promoting and contributing to the definition of technical standards for digital television
      and their widespread utilization/adoption;
      facilitating the introduction of new television services using these standards, which
      includes studies on ancillary matters such as frequency planning and conditional access;
      facilitating the closest possible coordination between pre-competitive R&D and
      standardization."
Membership is open to any European organization agreeing with its objective and undertaking
to contribute actively to its work.
 ---pagebreak---                                                           16
The structure of the organization comprises:
      A General Assembly of all the members
      A Steering Board of up to 34 elected (voting) members
      A Technical Module
      A Satellite/Cable Commercial Module
      A Terrestrial Commercial Module
      An Ad hoc Group on conditional access.
2-1.2    The Work of the Digital Video Broadcasting Group
For about the first year of its existence, the Launching Group focussed its attention on the
prospects for digital terrestrial television. The Technical Module - then called the Working
Group on Digital Television Broadcasting (WGDTB), was charged with producing a
comprehensive report on the matter. This report was completed in November 1992 and is
included in the accompanying volume to this Communication.
Following the announcement by two major satellite television organizations - News
International and Canal + - of their intention to provide pay-television services by satellite
using digital compression technology from the second half of 1994, attention was focussed
within the Technical Module on satellite and cable issues.
The Technical Module is working very rapidly and its output is already extensive. It has:
*     surveyed the existing European R&D and mapped it on to systems requirements (see
     Figure 4 above), and identified gaps in the R&D effort;
*     identified potential fields for application for digital television broadcasting in Europe, see
     Figure 6 below.
                           Field of application for digital television broadcasting
                                           broadcasting (DTVB)
                                               Received lervice quality / resolution
                  Traramuaion                                                              Receiving
                        medium    HDTV          HDTV                    SDTV         LDTV      condition
                       Satellite
                                   II           III                      [|]         •     Stationary
                                                                                             (Dish)
                        Cable      •            m                         I]         II    Stationary
                                                                                            (Cable)
                 Terrestrial
                    trarorfutieri  111          •                        •  *
                                                                                       f
                                                                                           Stationary
                                                                                           (Rooftop)
                                                                                       I
          N.B.:
                                                                          I]          •    Portable
                                                                                          (Stubaenai)
                                                                                      mf
          MPEO-2 ii assumed                                                                Mobile
          to be used for
          source coding and                                                               (Car aerial)
          multiplexing
          Satellite and cable
          may carry inter-
          active MTvicca                         Requirement*   nBun*.:         ]Q|J
                      Figure 6: Field of application for digital television broadcasting
                 (Analysis of the Working Group on Digital Television Broadcasting)
 ---pagebreak---                                                                  17
 *         identified potential systems configurations for the flexible delivery of digital television
           services in Europe, both by satellite (see figure 3 above and terrestrially (see figure 4
           above).
4c
           proposed a provisional timetable for Digital Video Broadcasting (DVB) in Europe see
           Figure 7 below.
                                            Provisional timescale for DTVB in Europe
  WGDTB                                 '"2     I  1993   I   1994   |    1993 |     1996 |     1997 | 1998
 Ssnisçfrfinrtwp(WOPTB)
    - Terrestrial, cable              -      f)
 Source coding n d
    - EDTV, SDTV, LDTV
    -HDTV
Channel coding, modulation
      Satellite, cable (...?...)                            X? ,
      Terreatrial, cable (WGDTB)                            — a)
 Syatem çrnnp|efr>B (WGDTBJ)
  • Satellite, cable w/o H D T V
     Satellite, cable incl. H D T V
  • Tctreetrial, cable
                                                                       *?        .    1
    - Satellite, cable w/o HDTV                                       a)
    - Satellite,
      w w w , cable
                 iigimï incl.
                        W M . IHDTV
                                U/I v                                             T
                                                                                  a*              |
    - TeneatriaJ, cable                                                                          •/
Equipment cfrrignfllrflfffrY)
    • Satellite, cable w/o HDTV
    - Satellite, cable incL HDTV                                                              X
    - Temstnal, cable                                                                         —
Service ready |Q fttjt
  - Satellite, cable w/o HDTV                                              X
                                                                           v
                                                                                            ,
  •Satellite, cable ncl. HDTV                                                              •)?
  - Tenxatrial, cable
                                      Figure 7: Provisional timescale for DTVB in Europe
                          (Analysis of the Working Group on Digital Television Broadcasting)
It should be emphasized that the ideas listed and illustrated above do not constitute final choices
and decisions. They are included here to illustrate the state of thinking on these issues within
the European Digital Video Broadcasting Group. They are intended as an aid to the
discussions being initiated through this Communication.
The technical module has also been active in recent times in following developments of
relevance in MPEG. It has helped to ensure, together with other involved bodies, such as the
EBU/ETSI JCT, the coordination of European inputs on the definition of the MPEG-2 generic
video standard. It is providing technical inputs in the form of specifications to ETSI with a
view to assisting the adoption of a European standard for source coding and multiplexing based
on the MPEG-2 work.
The Satellite and Cable Commercial Module and the Terrestrial Commercial Module have
started work more recently. They have the task of providing a focus for all non-technical
aspects needed for the successful implementation of digital video broadcasting over these
media. These modules, which are composed of senior managers from any MOU signatory that
is planning to make significant financial investment in the implementation of services and
products, will provide the definition of service requirements, priorities and time scales to the
Technical Module which will then translate these into technical specifications. By this process
 ---pagebreak---                                                  18
the service requirements, systems configurations and timescales illustrated above may be
modified or confirmed in the future.
The Conditional Access Ad Hoc Group is charged with seeking agreement on common
European conditional access systems, if this is possible.
The work of the European Digital Video Broadcasting Group is said to be "market led" in the
sense that service requirements, priorities and timescales are determined by those economic
operators having the stated intention to provide DVB services in Europe.
2.2 The United States of America
Although much attention has been focused on the US process for introducing digital terrestrial
television, in fact the first medium to use digital techniques, as is probably also the case in
Europe, will be satellite.
2.2.1    Satellite Television
Hughes Aircraft Company has announced its intention to provide a satellite television service in
the US from early 1994. There are intended to be up to 150 separate services provided
consisting of movies, in a near-video-on-demand mode (i.e. each movie is repeated on other
channels at short intervals and so the viewer may choose his time to start viewing), sports,
general interest programmes and specialist interest programming.
The broadcasting system uses digital compression techniques and uses the MPEG approach.
The extent to which it is fully compatible with the evolving MPEG-2 Video standard remains
to be seen.
2.2.2    Terrestrial Television
The Federal Communications Commission, under the authority of the Communications Act,
regulates broadcasting in the USA in the public interest. It has well established formal rules
for setting standards and for issuing licences. Its activities are carried out in public and at
stated intervals, comments are received from all interested parties. Since 1987 a process has
been underway, governed by these rules, to define a terrestrial broadcasting standard for
HDTV.
The FCC appointed an advisory committee - the Advisory Committee on Advanced Television
Service (ACATS) to assist it in this process. The ACATS will eventually make a
recommendation to the FCC which will then make its decision. The FCC is free to reject all or
part of the recommendations of ACATS.
The FCC process relates only to a terrestrial broadcasting system; It does not relate to satellite
or cable systems nor is it concerned with equipment performance standards.
The ACATS invited interested organizations to propose advanced television systems as the
basis of the future standard. These systems were to be tested in full hardware implementation.
Testing laboratories were established for this purpose.
Six proponent systems were tested and following these tests four systems which were all fully
digital remained in contention in early 1993 when the proposal for the standard was due to be
selected. In the event however there was no clear winner between these systems and the four
remaining contestants, with the encouragement of ACATS, agreed to form a Grand Alliance to
develop the final specifications for a standard. The members of the Grand Alliance are: North
American Philips, Thomson Consumer Electronics, Zenith, General Instruments, AT&T and
the Massachusetts Institute of Technology (MIT)- By the summer of 1993 certain parameters
of the Grand Alliance system had been (provisionally) fixed and others were still open. The
following list gives the main elements:
 ---pagebreak---                                                 19
i)    Scanning Formats
Six formats are listed:
1050/1:1/30,24
787.5/1:1/60,30,24
1050/2:1/60
(the first number is lines, the second number is either progressive (1:1) or interlaced (2:1) and
the third number is frames per second).
Progressive scanning has been judged by the Americans to be very important in view of the
need for interoperability with other media. Square pixels have also been chosen for this
reason.
ii)   Video Compression
The Grand Alliance will use MPEG-2 "syntax" with additional features. Those features are
under discussion.
iii)  Transmission
The Grand Alliance still had to choose between four transmission systems (not at the moment
including COFDM favoured by the Europeans). If necessary a competition between some or
all of these systems will be organized.
iv)   Sound
The Grand Alliance must choose between three different sound systems.
Once the final parameters are chosen, tentatively fixed for the Autumn of 1993, then the system
will have to be built and tested. Assuming the tests are successful and that no redesign and
retesting is required this process should take nine months. Thus, by the middle of 1994 a
specification could exist which ACATS could propose to the FCC as a standard. The FCC
itself then takes over and has its own formal open consultation process on the proposed
standard. This process would normally take one year and if so the FCC could set a standard
for terrestrial advanced television broadcasting in the middle of 1995. Given the complexity of
the technical and political processes involved it would not however be surprising if the whole
process (assuming it is indeed finally successful) were to slip by about one year to the middle
of 1996.
Separately from the work of ACATS, the FCC has made a number of important decisions:
*     The new system must use 6MHz channels (The European channel spacing practice is 7 or
      8MHz)
*     The new service will be simulcast with the existing NTSC services
*      Following the setting of the standard (1995/96) broadcasters will have three years to apply
      for a licence to broadcast the new service. If a licence is awarded they get an additional
      6MHz of spectrum per programme
*      A further three years (i.e. up to 2001/2002) is envisaged for equipping the networks and
      studios for the new technology
 ---pagebreak---                                                    20
  *      Following fifteen more years (i.e. 2016/2017) the NTSC system would be withdrawn and
        the entire US terrestrial television network would be digital.
 Independently of the detailed technical nature of the system being chosen by the Americans, it
 is worth reflecting on the process itself. The US process has a clear goal or vision and the
 means necessary to carry it out. The clear vision sees the universal replacement of the current
 analogue television system by a new one based on digital technology over a period of about
 two decades. There is a well defined and credible implementation strategy for migrating from
 the existing to the future system. The means necessary to carry it out - the FCC - is a statutory
 body with considerable powers, which is independent of both the industrial and political
 systems and can and does set timescales and goals, to which the economic actors respond. It
 works in the interest of no economic or other sector but in the public interest.
 While emphasizing that the FCC process is open and involves much consultation it may
 nevertheless be described as "top down" process with a long term time horizon in contrast to
 the "bottom up" approach underway in Europe. Although the FCC needs to take fully into
 account the views of the market actors, the US process cannot be described as "market led" in
 the sense in which that is used in Section 2.1.2 above.
 2.3 Japan
Japan was the first region of the world to design and implement (in an, at least, pre-commercial
 manner) an HDTV system. Using their satellite delivered MUSE transmission system, 8 hours
 a day are currently being broadcast in Japan. The costs of receivers remains however, very
 high and it is unclear if the system will ever be commercially successful even in Japan not to
 speak of any other region.
 On terrestrial networks sharper 4:3 pictures have been provided using the Clearvision system
 which employs improved receiver processing and the use of enhanced signal processing in the
studio. Very high costs of receivers have limited sales however. In the near future 1993/1994
 it is intended to provide a wide screen enhanced NTSC service, EDTV. The Japanese have
been cautious to date about digital television developments for a number of reasons:
 *     the belief that the MUSE system provided adequate HDTV service using currently
       available technology and could have a reasonable operational period before being
       overtaken by new technology.
 *     the great practical difficulties of implementing terrestrial digital systems in Japan due to
       the frequency planning difficulties there which are more constrained than in Europe and
       much more so than in the United States.
 *      the feeling that digital technology had very great potential for the future and that it was
       premature to rush into setting standards soon while much of the new potential remained to
       be explored.
It should be emphasized that Japan has great strength in depth in digital technology and it will
not be surprising if their investigations identify important new concepts and approaches in this
field.
In recent times the Japanese Ministry of Posts and Telecommunications has announced
establishment of a new study group to investigate the requirements for and potential of new
digital technology for future broadcasting systems. The scope of the study covers satellite,
terrestrial and cable television delivery means. The time horizon is the next twenty years. The
Group was established on 26 May 1993 and will report its findings to the Ministry in one years
time.
The output of this study is awaited with interest.
 ---pagebreak---                                                   21
PART 3             A FRAMEWORK FOR COMMUNITY POLICY
The preceding analysis shows that:
*      digital technology offers significant potential benefits in relation to television service
      quality, the flexibility of its provision and the more efficient use of spectrum, compared
      with current analogue technology and digital television has the potential of accelerating
      the implementation of global information networks delivering a wide variety of
      information services in a convenient and flexible manner;
*      the complete transition from the existing analogue system to a digital system is a long-
      term process requiring, perhaps, two decades to complete;
*      this transition will have to be organized and coordinated in order to enable the full
      potential benefits of the technology to be achieved in practice. Some of the benefits of the
      new technology will not be fully obtained until the end of the transition period. In the
      meantime it will be important to avoid the situation where early implementation of digital
      television in the market makes it difficult or impossible to introduce subsequent more
      general and more advanced steps in a compatible manner - thus inhibiting future market
      development.
Taking these understandings into account, the following set of principles governing Community
policy in this field is offered for consideration.
3.1 Principles of Community Policy
The following five key aspects are identified:
3.1.1     The Need for a Long Term View
      It has been argued consistently that the full benefits of the new technology will not be
      achieved in practice unless the lengthy transition from today's analogue system to
      tomorrow's completely digital system is implemented in an optimal manner. This
      presupposes not only that there is a long term view of what is ultimately to be achieved,
      but also that there is the will and the means to plan and implement a consistent migration
      path between the existing situation and the future one.
      This vision can not be limited to television alone which will be but one of a range of
      interoperating information services in the future global information network, but should
      extend to the requirements for achieving the global information network itself in an
      optimal fashion.
Elements which will be vital in this regard include:
*     A system conception and design which allows all potential forms of multimedia services -
      mobile, portable, standard definition, extended definition and full high definition
      television - as well as easy interoperability with other information services, to be realized
      in future in a flexible and fully consistent and mutually compatible manner, in response to
      market demand.
*     The commercial implementation of HDTV in Europe, compatible with market
      requirements, has been and must remain an object of Community policy. Thus, even if
      HDTV will make heavier demands when compared with other grades of service, its
      requirements should be addressed from the start. It follows therefore that the necessary
      R&D, specification writing and standardisation activity should be accelerated in order to
      have a HDTV system available when the market requires it and in order to ensure that
      earlier market implementation of digital television services having lower resolution may
      be specified in a manner which is compatible with the ultimate HDTV system.
 ---pagebreak---                                                  22
*     A clear view of how best to re-deploy the spectrum so as to take advantage of the new
      technology. Member States and the Community will have to reflect deeply on the
      optimum use of terrestrial spectrum in particular, in this connection. It is not to be
      excluded that a radical rethinking of existing frequency planning may be necessary.
*     the development of migration strategies for making the transition between the existing
      situation and the future one. Once the best migration path or paths have been chosen
      (taking full account of the Community dimension in this regard), this migration path or
      paths should be implemented in a consistent manner throughout the Community. This is
      unlikely to be easy or cost free. The price of failure of action or inadequate action here
      however would be that the full benefits of the new technology would not be realized in
      practice. This could include the less than fully efficient use of the valuable resource of
      the electro-magnetic spectrum.
Market forces will be crucial for the introduction of new services; It has been argued above,
however, that market forces alone may not lead to the optimum implementation of the future
global networks. This is so because the timescales relevant to the return on investment of
economic actors is much shorter than the timescale required for such optimum implementation.
This issue would appear to be fully understood by Japanese planners but also in this field now
very much by the US authorities.
The Community is thus faced with a major political choice: whether to see this new technology
being implemented in practice through market forces alone; or whether to develop a long term
vision of the future global network and encourage market parties to offer services consistent
with that vision.
3.1.2    The Need for Continued Research and Development
Although the digital era in broadcasting is just beginning progress has already reached the point
at which the introduction of digital television broadcasting becomes commercially attractive.
Technology has evolved rapidly in this area in the recent past but it will certainly continue to
evolve significantly during the implementation times discussed above. It will continue to be of
great importance that R&D receive continuing support at national and Community level in this
area in order that the most developed technical options are available to market actors when
implementation decisions are to be taken.
Specific aspects of this matter already identified in section 1.4 above include:
*     The better coordination of the existing national and international R&D projects in Europe
      with a view to avoiding overlaps, filling gaps and ensuring an overall coherence of the
      effort.
*     Addressing already identified gaps including aspects of digital satellite broadcasting
      (source coding, modulation, overall systems concepts), and the transcoding of satellite
      services into a physical format that can be used for cable networks.
*     The progressive focusing of R&D effort on issues related to the achievement of market
      implementation strategies once those have been identified and the relevant migration paths
      chosen.
 ---pagebreak---                                                 23
 3.1.3    The Need for Appropriate Standards
 If common standards can be achieved tor broadcasting, everybody gains - at least in the long
 run. Manufacturers gain since common standards allow the achievement of economies of scale.
 Broadcasters gain due to the prospect of large unfragmented market for their services.
 Programme makers gain since they avoid conversion costs for their programmes. Perhaps most
 important of all the consumer gains due to the reduced equipment costs and the wide access to
services. The fact that the consumer is not confused by different standards and has the
confidence to invest reflects back on the whole of the above chain in a positive manner forming
a virtuous circle.
This is the ideal world - not always achieved in practice, particularly at the international level.
At the European level the case for common systems is clearly unanswerable. At the broader
 international level the benefits of the greatest degree of commonality between - perhaps
 inevitably different systems, makes the dedicated pursuit of such consumer elements a worthy
objective of international cooperation.
A very positive aspect of standardization activities in this field at world level is the speed and
success to date of the MPEG process. It would appear that the new MPEG-2 Video standard
soon to be agreed provides a good basis for European requirements for source coding and
multiplexing. It also has the potential for the creation of significant elements of commonality
between European systems and those that will be implemented in other parts of the world.
Substantial cost reductions would follow from standard MPEG chips being available in large
quantities from a variety of competing sources.
If the MPEG-2 approach is to provide the basis of future European service concepts, then it is
essential that early implementation of digital television in the European market is fully
compatible with this approach.
In addition to source coding and multiplexing the elements of channel coding and modulation
must also be addressed. Here aspects of compatibility between services on the three different
delivery systems, terrestrial, satellite and cable, should be taken into account, since it is
desirable to ensure that viewers will be able to use the same receiver to obtain all the services
supplied by whichever of these three systems are available where they live. The importance
given in Europe to the creation of single frequency terrestrial networks and to mobile services
has been emphasized. The COFDM modulation system may have much to offer in this
connection.
Finally the contentious area of the requirement to develop common European conditional access
systems must be addressed and resolved as early as possible.
3.1.4    The Need for Full and Open Consultation
The provision of advanced television services is a market phenomenon working within a
regulatory framework. Those services will, in general, be provided only when the market
actors, who make the investments to develop systems and take the risk to provide offerings on
the market, decide to do so. The regulatory environment of standards and frequency allocation
is however a major factor circumscribing to some extent the freedom of action of service
providers. It is thus of the highest importance - both for the service providers and for the
regulators - to have the closest possible dialogue so that their separate and joint responsibilities
are fully understood and consented to in the interest of having harmonious market
development.
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3.1.5    The Need to Defend the Public Interest
The Community and its Member States have the duty at all times to ensure that the public
interest is defended against threats from powerful industrial and commercial sources. The
protection of the consumer and the ensuring of fair competition are cornerstones of national and
Community policy in general and are also specifically relevant in the field under discussion.
At a time of increasing media concentration it is also intended to ensure that all broadcasters
have access to digital broadcasting technologies and that no barriers to entry are erected for
new market entrants. In order that the market may be kept open, media companies should be
prohibited from using restrictive practices in order to impose their own technologies or to limit
competition from competing television channels.
3.2 Next Steps in the Development of Community Policy for Digital Video Broadcasting
There is now much consideration and activity in Europe relating to digital television
broadcasting. The potential of the new technology, the constraints on that potential and
important elements of the requirements for realizing in practice this potential in the future - are
all becoming clearer. It is not the case however that these considerations have reached such a
stage of maturity that definitive proposals for long term Community policy can be made at this
time. It is not a fortiori appropriate to propose now new Community legislation in this field.
This was not the intention of this Communication. The intention is rather:
*     to report on developments in the technology and its potential
*     to report on activities in Europe and elsewhere in the world
*     to propose aframeworkwithin which Community policy could develop
Having set out for discussion the principles which could underline Community policy in this
field in the last section, this section addresses the actions and initiative which needs to be
undertaken in the short term future - say the next year or two.
3.2.1    Consultation of the Market Actors
The market actors in this field: broadcasters public and private; manufacturers, and operators
of cable, satellite and telecommunications systems will have a crucial role to play in
determining the future evolution of advanced television systems in Europe. Their commercial
intentions and ambitions, their requirements of technology and of each other, their views of an
appropriate regime of national and Community regulation in this field are important inputs to
Community policy.
The European Digital Video Broadcasting Group now provides an open forum of consultation
in which these market actors can make their views known and can work together to achieve
common purposes. The Commission considers that this is a positive development and will
continue to encourage its work. The decision of the group to make its deliberations and the
outcome of its work freely available to the Commission as an input to Community policy
formulation is welcomed.
At the same time, the group is an independent body and draws its strength from this. It will
not be appropriate therefore that the Commission sign its Memorandum of Understanding and
thus become a member of the group.
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The Commission will nevertheless monitor closely the deliberations of the group and for this
purpose be represented on its Steering Board and the various working modules and ad-hoc
groups.
The Commission looks forward with interest to the output of the Group over the next year in
relation to: service requirements; systems configurations and timescales. To the extent that this
output achieves a consensus among the relevant market parties, which is compatible with the
requirement of appropriate long term perspectives and which does not conflict with aspects of
the public interest, the Commission will in general consider this as a positive input into
Community policy formulation.
Consumers (viewers) are of course essential partners of suppliers in thé market place. Their
views should be actively sought in the process of developing and implementing digital
television systems. The presence of representatives of consumers, perhaps as observers, in the
deliberations of the European Group on Digital Video Broadcasting could serve the useful
purpose of providing adequate information and explanations to consumers on the one hand and
receiving their inputs on the other.
Notwithstanding the above, the Commission remains open at all times to hear the views of all
bodies with a legitimate interest in the area and to take such views, as appropriate, into account
in its formulation of proposals for policy.
3.2.2     Research and Development
R&D activities in the Fourth Framework Programme will ensure that all necessary elements of
technology are available for planning the long term strategy towards multimedia systems and
services.
The aim of the R&D work will be to enable the integration of broadband services, including
terrestrial, cable and satellite TV distribution, with the public switched digital services (ISDN
and GSM) for interactive multimedia services.
Specifically in the area of broadcasting, the work will aim to increase the efficiency of
frequency spectrum use, increase the number of channels and quality of service available on all
TV distribution networks, and develop technologies for flexible use of digital video
communications, including ultra-high definition video, for a range of different purposes.
The worldwide emerging perspective of fibre-to-the-curb and fibre-to-the-home, and mobile
and portable reception of audio-visual services offers a great potential for the introduction of
multimedia services. Further research is directed towards interactive TV, second generation
coding techniques for very low bitrate applications (e.g. mobile video communication) and very
high definition television. This will lead towards an intelligent home terminal (Telecomputer),
the introduction of electronic newspapers (based on retrieval or broadcasting), flat screen panel
displays opening the way to HDTV, and 3D image capture, processing and display techniques
for advanced applications such as telepresence and advanced man-machine interaction.
The work will involve development of digital technologies for cost-effective transmission and
reception of different image resolutions on large screens and on portable receivers, in a
coherent digital image hierarchy. The provision of a flexible multiplex scheme will enable the
different configurations of image and sound streams within one channel; it will provide means
for access control at programme and channel level, and it will enable more efficient use of the
frequency spectrum. Technology developments will include development of systems for
efficient frequency allocation; multimedia communication architectures; an interoperable set of
source-coding systems for storage, transmission and display; common channel-coding and
modulation techniques for digital transmission, and advanced operating systems for
management of multimedia objects.
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The work will also involve the development of advanced image compression systems for
communication on bandwidth-limited media, and image analysis, understanding and generation
for advanced services such as 3D-video communication and "Virtual Presence". It will address
the development of stereoscopic and 3D presentation technologies; advanced image capture,
editing, storage and retrieval; and interaction techniques such as pointing and gesture
recognition.
The outcome of this precompetitive cooperative work will make a major contribution to
common functional specifications and standards, particularly in the area of multimedia
communication protocols, and image coding, and will permit the economies of scale that are
needed for industry to stay competitive in world markets.
3.2.3    Standardization
The work of the European and International standardization bodies will be closely monitored
by the Commission in this field. The Commission will continue to ensure, where necessary,
the coordination of European inputs into international standardization bodies. In addition the
output of the work of the Digital Video Broadcasting Group, in so far as its decisions result in
specifications which are suitable inputs to the standardization process, will also be monitored.
Whenever an element of the future system is ready for standardization the Commission will
consider supporting this process by issuing a mandate to an appropriate standardization body
for this purpose. This process of standardization is of course to be distinguished from the
process of regulation, whereby the compliance with a certain standard under certain conditions
would be made mandatory by legislation at Community level.
A matter of considerable urgency, with a timescale of the next few months, arises in relation to
digital satellite television broadcasting. It is pointed out above that certain major satellite pay
television broadcasters intend to offer services from the second half of 1994 using digital
compression techniques. In order to ensure the future development of the digital television
market it is essential that those early market implementations use standardized systems, and
that such standards are forward compatible to the future more general and more developed
systems to be introduced later to the market. The Commission will monitor this development
particularly closely in the coming months and shall continue to act, as necessary, with
standardization mandates.
Progress within the Digitial Video Broadcasting Group on a common approach to conditional
access will also be followed closely by the Commission, which will seek to ensure that the
broad public interest is served by any outcome arrived at. Community policy in this area
should be based on ensuring fair and open competition, on the one hand, and on protecting the
interests of the consumer on the other. This would be achieved through the creation of a
conditional access environment which would facilitate rather than inhibit new market entrants
to the pay television field and which would avoid the need for viewers to acquire a multiplicity
of "boxes" to gain access to different services. In practical terms such an environment would
require a sufficiently high degree of commonality between the conditional access systems used
in European markets.
In addition, with the growth of the market for pay television, there is a corresponding growth
in piracy against conditional access systems. Community policy should seek to harmonize
national anti-piracy legislation to combat this phenomenon
3.2.4    Frequency Planning and Implementation Scenarios
The Commission will initiate a dialogue with and between Member States in relation to future
frequency planning requirements of digital broadcasting services, and also other related
services.
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Implementation strategies, including migration strategies, will also be discussed with the
Member States in this connection. The intention is to contribute important elements to the
necessary long-term perspective for future digital broadcasting in Europe.
3.2.5    Cooperation with Third Countries
The Commission intends to initiate a dialogue with the United States of America and with
Japan, with a view to ensuring the greatest degree of commonality between systems to be
implemented in the three regions in so far as this is practicable given the different
requirements, the different timescales and the different infrastructural and other constraints
existing in these regions.
3.2.6    Reporting
The Commission intends to keep the Council and the European Parliament informed of relevant
developments, as they occur in this field. In this connection the Commission will report
developments, together with any proposals for Community initiatives that are necessary, to the
Council, to the European Parliament and to the Economic and Social Committee before the end
of 1994.
3.3 Conclusion
In conclusion the analysis in this Communication has resulted in the identification of two
different kinds of issue for Community policy.
The first set of issues involve aspects where it is clear that the Community can and must act.
They include:
      the intensification and adequate coordination of Research and Development in this field;
      the encouragement of appropriate standardization of digital television systems including
      HDTV;
      the protection of the public interest through ensuring free and fair competition and
      through consumer protection;
      to continue the dialogue with third parties including the United States of America and
      Japan with a view to identifying and agreeing common elements in the future television
      systems to be implemented throughout the world.
Another set of issues, perhaps much more important than those above, will require a more
profound debate as to whether the Community possesses the will and the means necessary to
take the appropriate initiatives. They include:
      the development of a long term perspective for the global Integrated Broadband
      Communications networks of the future including but not limited to digital television
      aspects;
      the development and implementation of consistent migration strategies from the present
      analogue television situation to the future digital one, including the necessary replanning
      of frequency spectrum allocations in this connection;
      the desirability or otherwise of making certain standards mandatory through Community
      regulatory action.
The Council and the European Parliament are invited to debate the issues identified and to give
guidance for the further development of Community policy in this area with special attention
being focussed on the more challenging issues outlined in the second list above.
 ---pagebreak---                                                -IK-
                               DRAFT COUNCIL RESOLUTION
                            On a Framework for Community Policy on
                                   Digital Video Broadcasting
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community;
Whereas the Community, through Council Decision 89/337/EEC, Council Decision
89/630/EEC, Council Directive 92/38/EEC and Council Decision 93/424/EEC, recognised the
strategic importance of Advanced and High Definition Television for the European consumer
electronics industry and for the European television and film industries, and established the
strategyframeworkfor the introduction of European Advanced and High Definition Television;
Whereas the Council in Council Resolution 93/C209/01 invited the Commission to bring
forward to the Council a Communication on digital television;
Whereas on (date) the Commission submitted to the Council a Communication entitled "Digital
Video Broadcasting - A Framework for Community Policy";
Whereas digital technology offers significant benefits for the future of television and of the
future Electronic Information Highways;
Whereas the benefits will be best achieved if an orderly approach, based on a long term
perspective is adopted from the start;
Whereas common standards are an essential prerequisite for such an orderly approach;
Whereas conditional access is an important matter for the providers and consumers of pay
television services and Community policy in this area should be directed at ensuring fair and
open competition, the protection of the interests of consumers and the minimizing of the
possibilities of piracy;
Whereas relevant research and development activities in the Community should be reinforced
and appropriate studies on frequency allocation and implementation scenarios intensified;
Whereas developments in digital television technology is a world phenomenon and whereas the
search of the highest degree of commonality between the various regions of the world in this
area is a desirable objective.
CONSIDERS that:
1.    Digital technology offers the potential of significant benefits for the future of television,
      and in the broader sense and for the future Electronic Information Highways or Integrated
      Broadband Communication, for which digital television can be a driving force;
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2. These potential benefits will only be fully achieved in practice if market implementation
   takes place in an orderly fashion which facilitates and does not retard the progressive
   development of the market towards new and more advanced services in a smooth and
   compatible manner;
3. An essential pre-condition for this orderly market evolution is the adoption in the market
   of common standards which, while providing necessary market clarity for both producers
   and consumers in the short term for early introduction of digital television services, also
   provide the potential for subsequent smooth upgrading to new and higher grades of
   service, including High Definition Television in response to market demand;
DECLARES:
1. That the preferred way to achieve the objective of orderly market development referred to
   above would be by means of a consensus process involving all relevant economic actors
   and that it looks forward to any voluntary agreements which may be made by such actors
   in this regard;
2. Its willingness, however, under the conditions that:
   i)      adequate consensus among economic actors to ensure the orderly evolution of the
           market is lacking;
   and/or
   ii)     the requirements of fair and open competition, consumer protection or other
           significant public interest demand;
   to introduce regulatory measures, if required, to facilitate the achievement of this
   objective and the protection of those interests;
CONSIDERS that:
1. Conditional Access is an important matter for the providers and consumers of pay
   television services;
2. Community policy in this area should be based on ensuring fair and open competition, on
   protecting the interests of the consumer, and on minimizing the possibility of piracy.
   This would be achieved through the creation of a conditional access environment in the
   Community which would facilitate rather than inhibit new market entrants to the pay
   television field and which would avoid the need for viewers to acquire a multiplicity of
   "boxes" to gain access to different services. In practical terms such an environment could
   be achieved by the establishment of a conditional access regime which is sufficiently
   "open" to allow access on fair and reasonable terms by all competing service providers,
   together with standardised customer interface equipment. Such a system would also have
   to be secure to minimise the possibility of piracy.
WELCOMES the Commission's intention to:
1. Propose, in the Fourth Framework Programme, a set of R&D activities in relevant areas
   with the objective of ensuring that all necessary elements of technology are available for
   planning the long term strategy toward multimedia systems and services;
2. Encourage the process of standardisation of digital television including through the
   issuing of mandates to European Standardisation bodies;
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3.  Encourage the development, with the involvement of market actors and national
    administrations, of implementation scenarios which would take account of all necessary
    steps to ensure a smooth transition from the current situation of analogue television to the
    future fully digital era;
4.  Initiate discussions wim relevant Member States' authorities on issues relating to
    frequency allocations for digital broadcasting with a view to developing a common
    Community approach to the most efficient use of the electromagnetic spectrum which is a
    valuable natural resource;
5.  Maintain a dialogue with third parties including the United States of America and Japan
    with a view to identifying and agreeing common elements in the future television systems
    to be implemented throughout the world;
INVITES the Commission:
1.  Having consulted the market actors and Member States authorities on the development of
    implementation scenarios and on the issue of frequency allocation as indicated above, to
    report the outcome to the Council, together with any proposals for action which are
    deemed to be necessary;
2.  To monitor closely all relevant developments in technology and in the market in relation
    to digital video broadcasting and to report on such developments to the Council, together
    with any proposals for action which may be required, as soon as it is necessary and useful
    to do so and in any event before 1 July 1995.
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                                                                     ISSN 0254-1475
                                                              COM(93) 557 final
                                                      DOCUMENTS
EN                                                                              15
                                 Catalogue number : CB-CO-93-595-EN-C
                                                             ISBN 92-77-60792-0
Office for Official Publications of the European Communities
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