Digital TV

NTL Bids For Virgin Mobile: 1st Mobile Quad Play?
NTL is currently in talks to merge with Virgin Mobile in a deal that would create a potential rival to the now broadband-enabled BSkyB.
Virgin Mobile’s official word?
The Board of Virgin Mobile Holdings plc confirms that it has received an approach from NTL Incorporated that may or may not lead to a formal offer being made for the Company.
Shares of Virgin Mobile immediately climbed to a record high after NTL/Telewest announced its £835m ($1.44 billion) takeover bid.
If the bid is successful, it will create the first media group to serve up mobile and fixed-line telephony, broadband Internet access and pay-TV.
(Ed: It has a similar resonance as the deal between 3 Italia and Canale 7)
We’ve found that getting straight numbers of subscribers for each separate business is difficult. The figures that the Guardian are quoting for the merged Virgin/NTL/Telewest uber-company are impressive too, accounting for 10m customers, 3.3m television customers, over 5m mobile phone users, 2.5m broadband Internet customers and 4.4m fixed-line telephone accounts.
NTL/Telewest do have to do something pretty radical as they feel the pressure from other previously unrelated business getting in on their main business areas.
The new company will go under the Virgin brand, and would become the biggest Virgin-branded business in the world, outstripping the music retail business which launched Branson’s career and the Virgin Atlantic airline business.
In a fiercely competitive market, cable companies on both sides of the Atlantic are looking to outflank their satellite and phone company rivals by adding mobile phone services to their portfolio of voice, Internet and TV services.
NTL is the UK’s number two pay-TV operator after BSkyB’s Sky and is also the second-largest residential telephony provider after BT Group.
Long seen as a juicy takeover candidate, Virgin Mobile is the fifth-largest UK mobile phone carrier. The company operates on rented capacity on T-Mobile’s UK network.
Virgin Mobile current 4 million users (source Virgin Mobile) in the UK, puts them at less than a third of the UK market leader, o2’s, who have 15 million users.
NTL and Telewest have notched up around 5 million subscribers combined, next to BSkyB’s 7.8 million digital television viewers.
If the deal goes through, it won’t be the first time the two companies have worked together – in 1996 they launched the Internet service provider Virgin Net, which had an original owner ship of NTL with 49% and Virgin, 51%. The enterprise was fully taken over by NTL in 2000 but still trades under the powerful Virgin brand name.
Virgin Mobile
NTL
5 December, 2005
Digital TV: Confusion Over European Support For Move
The words European and Commission, when used together rarely equate to clarity. This is holding true with the mixed signals on the financial support that will be permitted in the transition to Digital TV across Europe.
Last week the EU ministers of Transport, Energy and Telecommunications met. They agreed on the need to accelerate the switchover, and a 2012 deadline for the move from analogue to Digital TV. Currently ten member states are expected to complete the switchover by 2010.
But this push to digital comes somewhat bizarrely against the background of a recent European Commission ruling. It subsidies the commercial broadcasters in Germany use of the digital terrestrial television (DVB-T) network, violating EC Treaty state aid rules. Subsidies valued at close to €4 million were granted to the German Land of Berlin-Brandenburg, with beneficiaries that included German broadcasters RTL and ProSiebenSat.1. The commission says they are illegal and the sums already paid (around €2 million) should be returned.
The Commission made clear that it supports the transition to digital broadcasting, and that Member States have a variety of methods to assist the digital switchover, that fits in with EC Treaty state aid rules.
Neelie Kroes the Competition Commissioner said, “The Commission is firmly committed to encouraging the transition to digital TV, which has many advantages for consumers and innovation. However, state support must be based on objective criteria, address specific issues where the market does not provide solutions and avoid distortions of competition, particularly between terrestrial, cable and satellite platforms.”
The single market in Digital TV would facilitate the economies of scale for both ‘head-end equipment’ (the digital gizmos that transmit the TV services) and domestic set top box makers that include European giants, like Pace and Phillips.
Europe could benefit economically and socially, by a concerted approach across Europe to the ‘liberated’ spectrum. The EC wants to see trading in radio wavebands (much championed by the UK regulator OFCOM) and believes that this could assist European firms in launching innovative products and services. A study commissioned by the executive indicated that the move to Digital would have potential benefits of around EUR 9 billion for community members through greater efficiencies.
Let’s hope that European bureaucrats can get their act together on this one.
5 December, 2005
3 Italia Buys TV Broadcaster: Now First Euro Hybrid Mobile TV Co
In a sure sign that TV to the mobile is the new European media battleground, 3G mobile operator 3 Italia have announced its plans to purchase the Italian national broadcaster, Canale 7. Reports have put the price of the acquisition at between €30-35m.
The addition of Canale 7, Italy’s fourth largest broadcaster, gives the company access to the country’s existing home TV business. Canale 7 currently broadcasts in analogue to around 40% of Italy, predominantly its north. More interestingly, it also has a terrestrial digital TV nationwide network operator’s license. This should provide coverage for over 70% of the country.
It is expected that 3 Italia will work to develop a Pay-TV and interactive services proposition for handhelds. We also understand their intention would be for Canale 7’s nationwide digital project to be integrated with 3 Italia’s UMTS mobile network to create a DVB-H network.
The company intends to offer a DVB-H mobile TV service from the second half of 2006. Indications are that there will be a minimum of 20 channels, although no line up has yet been decided. 3 Italia already carries Playboy adult entertainment and football via existing technology, and has worked with Mediaset and News Corp’s Sky Italia pay-TV operator.
Italy is already one of Europe’s leaders in mobile consumption and is considered to be a prime market for such services. Reports we’ve seen rather puzzlingly mention a “standard of video quality comparable to DVD” perhaps somewhat unlikely on the small screens that will be deployed for this sector – but we’re sure the picture will be absolutely bella.
3 Italia, which is owned by Hong Kong-based Hutchison Whampoa, has so far invested €9bn in its 3G network since obtaining a license from the Italian government in 2000. It currently has around 4.8 million Italian subscribers. Hutchison Whampoa also own 3G licenses in other countries including the UK.
3 Italia
Canale 7
29 November, 2005
Digital Dividend Review: Ofcom Look At Spectrum Use After Analog TV Switch Off
Now that the Government has hit the ‘go’ button for switchover there are plenty of people anxious to know how the released spectrum will be used – and thereby how we will realise the value of it for UK plc.
In an attempt to address this issue Ofcom announced today the beginning of the Digital Dividend Review (DDR) – the project which will examine the options arising from the release of spectrum afforded by the digital switchover programme.
Ofcom estimates that the digital switchover programme will release up to 112 MHz of spectrum in the UHF (Ultra High Frequency) band for new uses. The UHF band is prime spectrum, because it offers a technically valuable combination of capacity (bandwidth) and range.
Ofcom say,
“The cleared spectrum – the Digital Dividend – offers real opportunities for wireless innovation.”
The Digital Dividend could enable the launch of a wide range of different services. Ofcom’s examples include:
- New mobile services, with high quality video and interactive media delivered to handheld devices
- Wireless broadband services, with high-speed data and voice services
- Wider coverage for advanced services in remote and rural areas. This spectrum is particularly suitable for low cost, wider-area coverage
- Advanced business and broadcasting services, such as those used to support major sporting events
- Additional television channels including possible High Definition (HD) channels carried on Freeview
Ofcom point out that this is not an exhaustive list – which will please HM Treasury since the greater the potential uses and users the higher the value likely to be realised from auctioning it.
On this point, Ofcom have a tricky job since they will have to ensure that there is enough incentive to investing the development of a particular wireless technology with no guarantee of it actually securing an allocation of the spectrum required – however it should be noted that Ofcom have stated that they will also begin work on a new auction design, with a view to ensuring that the spectrum is acquired by users who are likely to make best use of it – (i.e. best use = greatest value) – not sure how HMT will view this.
This approach means Ofcom will:
- Consider the potential uses for the available spectrum
- Set out the technical limits on spectrum use to prevent potential interference
- Draw up packages of frequencies that give flexibility to the market
- Design an efficient auction/allocation process
The proposed timetable for DDR is:
- Digital Dividend Review (DDR) begins – November 2005
- Programme team and consultants in place – end 2005
- Stakeholder meetings begin – Jan-Feb 2006
- Outcome of RRC – June 2006
- Digital Dividend Review completed – Q3 2006
- Ofcom publishes final proposals – Q4 2006
- Digital switchover programme begins – 2008
- Digital switchover programme completed – 2012
Luke Gibbs writes regularly for Ofcomwatch.
Ofcom Digital Dividend Review
17 November, 2005
UK Digital Switchover Costs: Ofcom Report Questioned Again
Matthew Wall of the Sunday Times Doors section hammers Ofcom over the regulator’s recent report on digital switchover cost and power consumption issues. Wall labels Ofcom’s report a ‘dubious attempt to play down the true costs of switching…’
Read for yourself folks, but basically Wall claims that The Times / Doors estimates the digital switchover costs at about one billion GBP, while Ofcom’s report claims a ‘pie in the sky’ figure of 572 million GBP. The tone of Matthew Wall’s piece is aggressive and he suggests Ofcom is deliberately playing down the true costs of digital switchover.
My comments: Wall needs to be careful in his accusations. Ofcom did not author the report at issue. Instead it was authored by Scientific Generics. While I don’t know if this is the case with this particular report, in the past Ofcom has published third-party research without endorsing the conclusions contained therein. In particular, Ofcom’s recent third-party produced report on the Television Without Frontiers Directive proposed revisions was merely put on the internet as an interesting report for public viewing and comment. The regulator informed me that the TVWF report was useful third-party data but did not contain Ofcom’s views, per se.
That being said, Ofcom need to do a better job at handling third-party research. Some suggestions:
1. These types of reports should be tendered in a public manner. How do these research projects get sourced? I’d like to know…
2. Ofcom should publish how much it pays for these types of reports. I’ve mentioned this before and the reasons Ofcom gives for not reporting how much this research costs are not convincing.
3. The significance (or lack thereof) of these reports should be plainly stated. Similarly, if Ofcom is not necessarily endorsing a particular report’s conclusions, it should plainly state that fact. An ‘evidence-based’ regulator should be very clear as to how it treats these findings made by third parties. If the Scientific Generics report is not endorsed by the Ofcom Board, but it is merely one of many research inputs on the issue of digital switchover costs, then Walls’ claims are clearly overstated. However, it’s hard to blame the press when reports like these are published on the Ofcom website with no disclaimers, giving them the imprimatur of Ofcom approval.
On the merits, I think people should stop bellyaching about the cost of digital switchover. No expert can seriously claim to accurately predict the true cost: Qui numerare incipit errare incipit (He who begins to count, begins to err). Anyway, the cost is not the real problem – the real problem is that Freeview stinks as a platform and Wall is correct when he observes that the U.K. government tends to assume it is the standard of the future. But that’s just my opinion.
Russ Taylor writes for OfcomWatch
14 November, 2005
BT Results Analysis: Stuck Between Rock And Hard Place
Poor old BT. Now that it’s reached a settlement with OfCom that allows it to keep retail and wholesale arms under one, some would say, severely stretched umbrella, commentators emerge from cover and say it might be better if it’d spit into two (or more) parts. The cost of Openreach has been put at £70m so far and in terms of efficiency in the UK telecoms market this could well be an ongoing sore.
BT has announced an IPTV offer for the retail market that some say offers too little too late. Early adopters of Digital TV are, in the main, already committed to Sky, who will look to rapidly integrate an Easynet download capability in an attempt to beat off the challenges from BT and a combined resurgent UK cable monolith formed by Telewest and NTL. The remnants of the consumer markets’ move to digital TV that BT will attract, are likely to be those less inclined to convert to a pay TV proposition, and they’re likely to be operating with tighter disposable incomes than those who have already left analogue TV behind.
Sky’s upcoming purchase of Easynet adds considerably to the pressure on BT.
Major Telcos in Europe have, by and large, a coherent mobile strategy and BT’s deal with Vodaphone is viewed as little more than a stop gap.
Where does this leave BT?
Interestingly enough, Telefonica’s bid valuation of O2 put the value of the former Cellnet constituent of BT above that of the remainder of the UK’s juggernaut Telco- perhaps BT Group could be of interest to another global suitor?
At present there’s a danger that not only will wholesale be delivering utility-style performance but that retail may be moving into a period of decline and could it be that the future of BT is again up for a re-evaluation by it’s major stakeholders?
14 November, 2005
Wharfedale DV832B Review: Digital TV Box
After several years of battling with the clunky interface and weird quirks of our museum-ready OnDigital digital terrestrial television box, we decided it was time to replace it with something a little more contemporary.
With digital broadcast delivery technology moving so fast, we weren’t minded to shell out too much for something that may be rendered obsolete by some funky new feature in a few years, so we went looking for a cheap’n’cheerful option.
A quick visit to box-shifting supremos Argos saw our eyes fixing on an ideal candidate: the Wharfedale DV832B digibox.
Sure, it’s not much to look at and the plastic case – with its cheap, old-school red LCDs – is unlikely to woo the neighbours, but the feature list was far more than what we expected at the price level.
For the princely sum of just £35 (~$62, €52), the Wharfedale offers a digi box with a 7 day electronic programme guide (EPG), digital text, digital interactive services, DVB subtitles, auto scan and setup and 2 SCART sockets.
Suitably impressed, we shelled out the readies and plugged the unit into our home entertainment system.
Once powered up, the unit asks if we want it to automatically scan for stations and after saying “Yes please Mr DigiBox”, we were presented with a long list of available digital TV and radio stations.
Onscreen menus
As with most digital boxes, you need the remote control to access the key functions with the front of the unit only offering controls for on/off and program up/down.
The onscreen interface was simple, crisply designed and easy to navigate, and proved fairly intuitive in operation.
Using the onscreen menus we were given options to delete channels, rename channels, select favourites, set up to five timers, add a parental lock, choose TV type and set up Over-Air software downloads.
Within minutes of getting the DV832B out if its box, we were skipping channels with glee, pausing momentarily to wonder who on earth watches those dire Bid TV programs.
Picture quality
Picture quality was good with no nasty outbreaks of the jaggies to be seen (although we do live within eyeshot of the Crystal Palace transmitter so we can’t say how it might perform in areas with weaker coverage), and we found the overall performance to be perfectly satisfactory.
The slimline silver unit (4.8 x 30 x 20.6cm) comes with a simple and straightforward 24-page manual, a SCART lead and a run-of-the-mill remote control (there’s no Top Up TV compatibility on board, but we’re not complaining at this price!).
Our conclusion
The Wharfedale DV832B provides outstanding value for money, is a thoroughly capable performer and we have no hesitation in giving it five stars.
27 October, 2005
Humax PVR-9200T: Freeview Duovisio PVR Launched
Humax have dished out detailed information about their new dual-tuner, Freeview-enabled PVR, the PVR-9200T.
Like the Sony RDR-GXD500 we reviewed in April 2005, Humax’s PVR lets users watch and record digital terrestrial Freeview TV shows, with lucky UK consumers able to feast on over 30 channels of freebie programming.
With two tuners onboard, Humax’s PVR-9200T (or “Duovisio” as it likes to be called), lets you record one channel while watching another or you can really push the boat out and simultaneously record two channels while playing back a previous recording.
Receiving and recording of pay TV channels is possible through a special CA module.
There’s no DVD recorder on board, so storage is taken care of by a fairly generous 160GB hard drive, supporting up to 100 hours recording.
The unit comes with preloaded software, allowing for picture-in-a-picture and “assorted trick play, diverse formats of recording and recording services playback, all through the time shift recording function.” We’re not quite sure what that last bit means.
Folks baffled by the complexities of traditional video programming will enjoy the 7 day Electronic Programme Guide (EPG) with the Duovisio providing support for subtitles, digital teletext and interactive features.
There’s also a handy USB2.0 port provided for MPEG A/V file transfers between the Duovisio and a PC, letting users play back their digital photos or listen to MP3 files downloaded from a PC.
Humax
22 September, 2005
UK Analog Switch-Off For Digital TV By 2012: Confirmed
In her speech to the Royal Television Society in Cambridge this evening, Rt. Hon. Tessa Jowell confirmed digital switchover and outlined the timetable for switching by region.
Digital switchover will happen between 2008 and 2012 by ITV region in the following order:
2008 – Border
2009 – West Country, HTV Wales, Granada
2010 – HTV West, Grampian, Scottish Television
2011 – Yorkshire, Anglia, Central
2012 – Meridian, Carlton/LWT (London), Tyne Tees, Ulster
This regional order has been determined by a technical criteria determined by the broadcasters and Ofcom. The regional order will follow ITV regions. This ensures that the impact on ITV regional advertising markets is minimised.
Jowell also reiterated the Government’s pledge that digital switchover will be platform neutral. As reported earlier on OW, SwitchCo, which will be renamed ‘DigitalUK’ will launch tomorrow, and will oversee the switchover process, marketing and neutrality.
Jowell also outlined a programme to help vulnerable consumers. Households with one person over 75 and those with one person receiving disability allowances will be eligible for help and subsidy. The assistance scheme will be funded by the BBC through the licence fee (which is therefore obviously secure despite not Bill yet being in place).
It remains to be seen whether the BBC will be limited in how it promotes technologies in which it has a vested interest like DTT (Freeview) to these households.
Comment – It is interesting that London will be switched in 2012. Same year as we host the Olympics.
It is also worth noting the name change of SwitchCo to DigitalUK. This suggests a role beyond digital television, with the organisation being ambitious in its aims and looking to embed the most sophisicated digital technologies at the core of the home. Only by taking this approach will switchover be genuinely enabling for citizens, narrowing rather than extending the digital divide.
Tessa Jowell
15 September, 2005
SwitchCo: UK Unveiling This Week?
There’s been quite a lot of talk in the UK media about SwitchCo, the organisation tasked with switching from Analogue to Digital TV in the UK. Luke Gibbs of OfcomWatch wonders if it will come to life this week?
It seems as though digital switchover has been going on for ages. And yet it hasn’t even begun – it’s just been a load of people talking about it!
Despite the Government announcing the creation of SwitchCo earlier in the year no-one has heard anything since. The only things we know for sure are that Barry Cox is the Chairman and some bloke called Ford Ennals is the Chief Executive. No website, no contact details, nothing – the proverbial blank screen. Perhaps it’s a precursor for what’s to come in 2012!
[ed. – an extremely limited site does seem to have emerged today!]
We also know that the Government remains committed to switchover. How? Because, the Labour Party election manifesto outlined the switchover process and thereby made both the process and timeframe an election pledge. So if you voted for Labour you voted for switchover. And if you didn’t vote for them or didn’t vote – well – tough luck they won the election.
Now, it’s possible that Labour will renege on its pledge. It’s certainly been known before for political parties to come into Government and do a spot of backtracking. Could this happen with switchover?
Well, later this week we may get some answers. On Thursday evening Secretary of State for Culture, Media and Sport, Rt Hon Tessa Jowell, MP, will make the keynote to the Royal Television Society’s bi-annual conference in Cambridge. As if Jowell hasn’t got enough high profile issues on her plate – licensing, Olympics, gambling – she also has digital switchover.
It is likely that in her keynote will offer a clearer vision of how switchover will take place and what SwitchCo’s role will be in making it happen.
After outlining the process it makes sense for SwitchCo to launch in earnest, publishing the technical and marketing plans for switchover. Will they be what the world has been waiting for?
From a technical perspective switchover it is not going to be a walk in the park. A phased switchover to digital by geographical area between 2008 and 2012. And we’ll only know how many people might be unable to get digital television once the analogue signal has been turned off and the digital signal boosted.
The technicalities of switchover will be critical to acheiving it. However, the marketing plan will also be essential to its success. Bringing the two strands together will be no easy task.
A successful switch to digital will release swathes of spectrum for re-allocation. But switchover also provides an opportunity to embed digital technology in the core of people’s homes – digital television is fundamental to acheiving the long envisaged, much touted Digital Britain.
So SwitchCo needs to be more ambitious in its aims than just pushing people to takeup digtial television. Digital television is just the beginning of digital enablement not the end of it.
There may be temptation to promote Digital Terrestrial Television (DTT) services such as Freeview over other digital services such as cable (D-Cab) or satellite (D-Sat) because it provides a low cost, convenient method of switching to digital television. However, it is also limiting as a digital technology, providing a few extra television channels and a low level of interactivity. Freeview might allow us to meet the proposed 2012 target but by then it will be out-moded.
It has already been stated that when SwitchCo does launch that it will take a platform neutral approach. So maybe we shouldn’t worry. However, switchover has the potential to become a political nightmare – and if it does there maybe a temptation to take the easiest possible route.
I am certainly not the first person to have pointed these things out. But I thought it was worth re-iterating ahead of various announcements this week, when potentially we will see an important new organisation emerge.
SwitchCo
13 September, 2005