IDATE proposes international benchmark for DTT
May 30, 2012
IDATE has published a report which proposes an international benchmark for DTT rollout and Analogue Switch-Off (ASO) practices and also presents guidelines for the ASO. It addresses the issues and prospects of the (Second) Digital Dividend and details business models for the overall process of transition to digital, including three country cases in the low- to mid-GDP/pop range.
Based on an in-house modelling, IDATE has developed three business models for DTT – matching costs and sources of funding DTT networks shows that:
– In very poor rural countries, the digital dividend spectrum fees cannot match the total amounts needed for subsidising the set-top boxes and the marketing plan. There is a gap of at least 20 per cent of the total digital transition cost, but additional funding may be needed to help television channels in funding the simulcast network costs and in upgrading their facilities to digital.
– In poor urban countries, the revenues from the digital dividend can match both the subsidisation of set-top boxes and the marketing campaigns for promoting the digital transition. However, as in the very poor rural countries discussed above, there may be a need for additional funding to support television channel in funding simulcast network costs and in upgrading their facilities to digital.
– In semi-developed countries, the revenues from the digital dividend are significantly higher than the costs of both the subsidisation of set-top boxes and the marketing plans to promote the digital transition. Again here, at this level, there may be a need to assist television channels with funds for simulcast network costs and for the upgrade of their facilities to digital. Part of the surplus revenue from the digital dividend could be allocated to this.