Terrestrial Digital Broadcasting Convergence and Implication

Reza Tadayoni*, Knud Erik Skouby

Center for Tele-Information, Technical University of Denmark, Building 371, DK-2800 Lyngby, Denmark

Abstract

This paper is a contribution to the development of analyses of the process of converging media and to the

clarification of the regulatory implications of this process. It is generally agreed that the process of

convergence between telecommunications, IT and broadcasting through its technological, organisational,

and market/service aspects has far-reaching inßuence on the sectors involved and on future socio-economic

settings. The paper explores the preparation for introduction of terrestrial digital television in Denmark as an

aspect in the general process of convergence. The explorative analysis establishes an understanding of the

technological issues and drivers in the development, which in interaction shape a digital distribution

structure that is a concrete part of convergence. Based on this understanding, a model Ð the OSA-model Ð is

suggested for the techno-economic structure of distribution of terrestrial digital TV. The model is used to

discuss market prospects and regulatory implications, as these are derived from the interplay of traditional

areas of regulation in the three sectors and areas emerging as candidates for regulatory activity based on their

functionality. The discussion of the process of introduction of terrestrial digital TV in Denmark thus provides

a general analysis of convergence and its regulatory implications. ( 1999 Elsevier Science Ltd. All rights

reserved.

Keywords: Terrestrial digital broadcasting; Convergence; DAB; DVB

1. Introduction

During the past few decades the communication landscape has been subject to radical changes.

Traditionally, communication has been divided in three sectors Ð telecommunication, broadcasting

and information technology (IT) Ð which cover di¤erent communication applications. The sectoral

PII: S 0 3 0 8 – 5 9 6 1 ( 9 8 ) 0 0 0 8 6 – X

1 This work is a result of participating in two Danish research projects:

f Service development, Internationalisation and Competences (SIC) project.

f Distributed Multi Media (DMM) project.

2DAB and DVB is used for digital audio broadcasting and digital video broadcasting, respectively, without reference

to the speciÞc European technologies/protocols-agreements using DAB and DVB as brand names.

division has been based not only on di¤erent technologies being used in the di¤erent sectors but it

has also evolved in close interplay between political-regulatory interventions, economic considerations

and technological characteristics.

Understanding the di¤erent aspects of regulation in the information age requires a solid

understanding of the development in the communication landscape as well as of the ongoing

process of convergence between the traditionally separate forms of communication and of the

Ôinformation fusionÕ. Technological speciÞcity has not been determining for sectoral division and is

not determining for the convergence process but it has been a vital factor in this process.

Technological innovations like digitalisation, audio and video coding technologies, computerisation

and broadband infrastructures Ð such as cable and satellite networks Ð make service

provision across the sectoral boundaries possible. This also imposes new political and regulatory

challenges and makes re-thinking and re-designs of the existing regulatory framework for communication

a necessity.

This paper1 discusses digital broadcasting as an instance in the convergence process where this is

seen as a process with technological, economic/structural and regulatory aspects. Within digital

broadcasting a focused area namely the terrestrial digital broadcasting in Denmark will be studied

in details.

Broadcasting is quickly moving into the era of digitalisation as digital audio broadcasting

(DAB)2 and digital video broadcasting (DVB) to replace traditional analogue broadcasting

technologies. Full digitalisation of the whole production chain, from recording and editing over

transmission media to receivers in the end usersÕ homes, will be a reality in 10 to 15 years. This is

a challenging and extensive change that will face broadcasters, politicians and regulators in the

coming years. The main political and economic focus is generally on DVB and the transition has

already started in some European countries, most notably the UK and Sweden.

For users, DAB/DVB will o¤er many advantages over analogue broadcasting, such as better

technical quality, more programs and services on a given set of frequencies, and the option of

multimedia and interactive services. This development is an expression of converging media:

DAB/DVB will integrate elements from several di¤erent media, computers, telecommunications

and broadcasting. The shift to digital broadcasting is not simple, however, as it introduces a range

of interrelated political, economic and technical challenges. Some of these challenges are speciÞc to

the mode of distribution Ð satellite, cable or terrestrial with the latter having special problems and

potentials.

As the basic technologies are now ready, solutions to two sets of regulatory issues are pertinent

for the development and di¤usion of terrestrial DVB. One set of issues is related to the concept of

Public Service Broadcasters. In almost all countries, cultural policy considerations have given

Terrestrial Digital Broadcasting Convergence and Implication

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