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Digital dividend 'not that big'

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 09 Nov 2012
The anticipated digital dividend may not be as big as telecoms companies hope, says communications technical advisor Roy Kruger.
The anticipated digital dividend may not be as big as telecoms companies hope, says communications technical advisor Roy Kruger.

A tussle between broadcasters and telecommunications operators over space in the lower end of the frequency range could see the dividend being trimmed to much less than expected.

SA is moving from analogue broadcast to digital television, and the process is expected to be wrapped up by the middle of 2015 at the latest. Migrating to digital television will free up large chunks to spectrum - the so-called digital dividend.

This white space can be used to speed up , expanding penetration into SA's rural areas, which have historically been overlooked, while metropolitans reaped the benefits of broadband.

Mobile operators want access to the dividend in the 800MHz range as this spectrum has a bigger range, making it ideal for rolling out long-term evolution (LTE) in rural areas. Currently, most of SA's operators are either trialing or launching LTE, which offers speeds of around 70Mbps.

The Department of Communications has indicated that, although it will sort out allocations in high-demand 2.6GHz soon, space in 800MHz will have to wait as SA migrates to digital television.

Global tussle

Communications technical advisor Roy Kruger explains that, while the telecommunications sector wants bandwidth in the 800MHz band, which it argues is ideal for rolling out broadband in rural areas, broadcasters are not going to give up spectrum as they need it for high-definition services, which takes up more space.

Each high-definition channel requires as much frequency as four standard-definition stations would need, explains Kruger.

The International Telecommunications Union (ITU) has said it will release some bandwidth in the digital dividend space, but this is only likely to be around 70MHz in size. In SA, the amount of space that is freed up will depend on the number of channels that go on air, he says.

LTE requires a minimum block of between 10MHz and 20MHz to run, says Kruger. However, to gain speeds of up to 1Gbps, a 100MHz block is required, he adds.

Think big

While the digital dividend should see telecoms companies gaining space in the 800MHz range, broadcasters also want access to this range, says Kruger. He says this issue has not been decided and when it is sorted out, free space is not likely to be allocated in SA until around 2016.

Kruger adds that telecoms companies should consider using the 450MHz range, which he says is "even better" for rolling out LTE in rural areas. The department is scouting around for more frequencies that can be used and is currently auditing a range of bands. "We have to find bandwidth."

Kruger says operators need to think out-of-the-box and look at other potential frequencies to run long-distance evolution, as there are around 36 bands identified by the ITU.

Worried

Free-to-air broadcaster etv has already expressed concern over the Independent Communications Authority of SA's (ICASA's) plan to have broadcasters vacate the digital dividend space.

ICASA recently published the Frequency Migration Plan, which broadcasters have railed against as they are worried that the regulator has not adequately assessed the implications of frequency migration. Broadcasters are particularly concerned at the absence of any policy inquiry into the future needs of terrestrial broadcasting and the implications for their business.

Etv CEO Marcel Golding says: "A major concern is that ICASA is proposing the large-scale migration of TV broadcasters from the spectrum bands in which they have assignments without having considered the future spectrum needs of the TV industry or compensation for affected broadcasters."

The broadcaster says it is not realistic to move broadcasters out of the digital dividend ranges as they face the prospect of losing highly valuable spectrum without being compensated. It wants at least one multiplex.

"Without defined entitlements after analogue switch-off, broadcasters will be thrown into an environment where they are unable to explore additional services such as HD, 3D, etc, and compete against TV-like services delivered over new technologies."

Paseka Maleka, ICASA spokesman, says the authority is considering all submissions and will take them into account when determining regulations.

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