National objectives for digital television. The approach of Peru

As a communications medium, television contributes to public opinion formation, and therefore constitutes a highly important national telecommunication service. Digital television is a clear manifestation of the coming major changes worldwide, affording better image quality and compact disc sound quality, with the added value of access to new telecommunication service facilities and their consequent additional program offerings, using the same radio frequency resource.

As digital television facilitates access to different services, promoting interaction among the television program producers of the world’s large information markets and utilizing the connection with service providers, it will become an effective complementary medium for bridging the digital divide.

DIGITAL TELEVISION IN PERU

The Peruvian state is promoting the implementation of digital broadcasting, assigning to the Ministry of Transportation and Communications the planning and promotion of development of Peru’s telecommunication services, and heading up the coordination necessary among the different agents comprising the value chain. The Communications Subsector has responsibility for ownership of television broadcasting, reservation of frequencies, and developing and implementing state plans and programs related to management, supervision, and control of the radio spectrum utilized to provide digital television, with the aim of ensuring pluralism of supply, competition, and efficiency, and of avoiding monopolistic practices in its operation.

The Office of the Deputy Minister has established a commission to study, review and, if appropriate, propose the transmission standard to be chosen by Peru, indicating the scopes of the digital TV system, by preparing a document to serve as the basis for drafting a Plan to implement digital television in Peru.

The agents involved in the value chain must have a document giving details of planning guidelines for the implementation of digital terrestrial television. The document should contain the Plan’s objectives, proposals for achieving them, and an appropriate method therefor.

The initial guidelines will be based on open signal television distributed free of charge, broadcasting based on a multiple-image format television standard, with a high definition television option and value added services, particularly in new applications, such as, inter alia, telemedicine, and distance education for groups living in areas needing such facilities, all in keeping with the services market.

Efforts will also be made to facilitate the availability of a return channel for interactive digital television and to enable new telecommunication services to be developed.

GUIDELINES FOR IMPLEMENTATION OF DIGITAL TELEVISION IN PERU

1. Guidelines for mass access to digital television and ICT services

In Peru’s environment, analog television is one of the most important means of mass communication with its people. Taking as a reference 2003 National Household Survey (ENAHO) data, 77% of the population has at least one television set, and an estimated 80% of the public watches television.

Therefore, conversion from analog to digital television will impact households significantly, as it will enable them to access a large wireless source of information; domestic television sets serving as terminals to access innovative multimedia services.

Compared with other countries in the region, in Peru, Internet penetration remains low. We therefore consider the introduction of digital television an opportunity to provide access to Internet content to groups without personal computers and to continue to disseminate public and private sector information that contributes, on the one hand, to knowledge of state activity, taking advantage of the different services provided and, on the other, to interaction with opportunities afforded by the private sector.

2. Guidelines for transition to digital television

As three systems are available on the international market -- ATSC in the United States; DVB in Europe; and ISBN in Japan -- and given the importance of knowledge of them, the Vice Minister of Communications has facilitated the holding of international seminars on the first two standards. The experiences of other Administrations in the region are also being reviewed.

Having made an exhaustive evaluation of the technological alternatives and of their costs and benefits, and taking account of social inclusion needs, the standard to be adopted by Peru must be determined in order to continue migration from analog to digital broadcasting, providing a prudent period of coexistence between the two systems. It is also advisable to make compatible the three broadcasting platforms: terrestrial, cable, and satellite.

Companies operating television chains, cable TV companies, direct satellite TV companies, program production agencies, advertising agencies, and all other members of the value chain will be impacted by the advent of digital television technology. Such changes will be reflected on the services market.

With new channels available to authorized digital television companies, new types of business are envisaged, based on advertising income, the main source of revenue, which will vitalize the market. Also anticipated is greater advertising fragmentation, as a result of segmentation of the television program supply, so that program production activity will play a key part.

3. Spectrum planning and the regulatory environment

One priority identified in our Administration is planning of digital terrestrial broadcasting channels, as reserving frequency resources will be a priority, whatever standard is chosen. To that end, the work being done by the commission designated by the Ministry of Transportation and Communications is giving consideration to, inter alia, ITU-R Recommendation BT.1368, “Planning criteria for digital terrestrial television services in the VHF/UHF bands,” and to experiences of other Administrations of assignment on multifrequency networks, offset techniques, and single frequency networks for the deployment of stations based on optimization of radio frequency resources and premised on utilization of the same frequency channel bandwidth as given by the standard in force.

The radio spectrum will be used more efficiently with digital terrestrial television, as it enables more programs to be transmitted with the same frequency resources. Migration to the UHF band is planned in Peru’s environment, as is simultaneous operation for an appropriate period of analog and digital transmissions, at the end of which frequency band segments may be available for use in other telecommunication services. The National Frequency Allocation Plan (PNAF) also provides for reservation of the corresponding frequency band.

As regards regulation of digital terrestrial television, account must be taken of the following: - Requirements for awarding digital terrestrial television station licenses; - Planning channels in accordance with service areas; - Licensing of analog television broadcasting licensees and of new digital terrestrial television operators; - Duration of the transition period, during which analog transmission will be concluded; - Market availability of digital receivers and encoders, including their cost.

4. Promotion of the industrial sector and derived services

With the advent of digital television technology, ever-greater complexity of the television value chain is anticipated, generating a series of new elements, among them:

a. Providers of transmission equipment, in conformity with the standard; b. Providers of receiving equipment, such as digital television sets, adapter boxes, and double synthesizing equipment for both analog and digital systems; c. Providers of software to provide guidance on program guides, Internet-related services, increased ATM machine activity, teletexting, on-demand television, etc.; d. Producers of public and private sector programs and content; e. Providers of interactive services and providers that bring together on a single frequency channel digital television programs, data, and interactive content, and return from users who initially were only receivers; f. More advertising agents; g. Multiplicity of advertisers.

5. The international environment

We consider that what has been thus far achieved through CITEL’s efforts, enriched by experiences of member states that have opted for digital television, is essential in achieving a better profile for the implementation of digital television in Peru. We also wait with anticipation likely developments in countries of the region.

EPILOGUE

As the television industry’s value chain undergoes major expansion, existing regulatory legislation, planning, and frequency spectrum management will have to be adjusted to conditions prevailing at the time, with the aim of achieving a harmonized framework for implementation of the service.

Raul Gómez
Technical adviser
Secretaria de Comunicaciones de Perú