Digital TV Network – Filling an Unoccupied Niche

Transition to digital video broadcasting (DVB) is a global over-the-air television trend. The end of the analog TV era in the US has been set by the Government for February 17, 2009. The European community plans to complete the transition by 2012.
In the Russian Federation the Government mandated TV companies to switch to digital broadcasting by 2015.

The existing equipment of television broadcasting companies cannot be made fit for the DVB technology as it involves building surplus broadcasting towers and communication lines, and deployment of powerful transmitters.

Actually, transition to digital TV means building a broadcasting network from scratch. For this reason conventional TV broadcasters have no head start over other competitors. The position of the national DVB operator is currently vacant.

Cellular operators are best poised for creation of national DTV network

At present mobile operators possess the infrastructure that fits the purpose best. The existing network of GSM base stations can easily accommodate an overlay DVB network.

MFI Soft suggests the project Combined Communications and Video Broadcasting Network (CCVBN) aimed at building a digital TV broadcasting network on the basis of the existing operator’s installations through deployment of minimum additional equipment and software.

The project implementation involves the use of the following elements of the mobile operator’s network (without any effect for the host facilities): stations and antenna towers, premises with deployed electronic equipment, power supply facilities, communication channels, and premises of regional switching centers.

Any scheduled 3G upgrade implemented on the existing mobile network automatically make the network suitable for digital TV broadcasting.

Alternative DVB transition projects and technologies in Russia are at a disadvantage to the presented technology in terms of capital intensity, scope of required work and project implementation time.

Over-the-air TV broadcasters do not have the necessary infrastructure. To migrate to digital broadcasting, analog TV companies will have to purchase equipment and build all the essential network elements from scratch, including:

• Antenna structures
• Digital transmitters
• Communication lines

Cable TV cannot boast a high penetration rate in the Russian market. Analysts forecast that cable TV networks will account for only 17% of the market in Russia by 2017. Such moderate growth rate cannot allow one to speak of a material TV market share. In addition, the majority of existing cable networks are built around the analog TV and transition to the digital technology implies a complete technological refurbishment of the industry.

IPTV and satellite companies account for just 3% of the market now. IPTV penetration is hindered by slow development of broadband access and the need to invest in the underdeveloped BBA infrastructure.

Opportunities and Benefits for Mobile Operators

New Market Development

A proactive operator gets an opportunity to significantly increase revenues and enhance the company financial standing by offering additional services and attracting new customers. Rapid penetration into the market is a chance to gain a monopoly standing in it. This will add to the operator’s equity value.

Implementation of new business models

A delicate structure of local TV allows efficient collaboration with local TV businesses through offering them broadcasting services. The number of TV companies will grow as content creation technologies and audience reach grow.

This feature broadens the horizons of regionally-oriented advertising. With a video broadcasting capability in place and established co-operation with content suppliers, mobile operators may wish to explore the paid mobile TV market.

Implementation of a socially important project

The suggested technology allows:

• Enabling the country’s mass public access to DVB-T programs within the shortest span of time.
• Providing ethnic groups and communities with local TV.
• Creation of a public address emergency alert system.