Network Insight Institute

Graeme Barclay

Graeme Barclay, Managing Director, Broadcast Australia

The topic allocated to me concerns datacasting: Is it alive, well and growing?

I've expanded the scope of this in order to raise some interesting issues in the debate about how to move DTV forward. Therefore, I will cover datacasting but more as a sub-set of the broader topic.

Therefore, in addition to datacasting, the issues I want to raise for consideration are:

• the drivers for the takeup of DTV;
• finalisation and implementation of the relevant standards;
• allocation of available DTV spectrum; and
• testing and conformance.

On the issue of drivers for the takeup of DTV, clearly the price of equipment is crucial. SD and HD box prices continue to reduce and manufacturers are becoming more creative about the features the boxes offer. As Paul Walsh noted in the last session, there are now combo units involving DVD, VCR and SD receivers reselling in the Australian market for less than $550.

I believe HDTV is a critical differentiator. DVD is already the benchmark experience in the home, and people are buying and watching DVDs more than ever before because of the limited amount of HD quality broadcasts being provided by FTA television networks.  HD DVD is going to be the next step as HD DVD units become increasingly available at sensible consumer prices. 

Greater choice of content is also critical and it is the need to multi-channel that should drive the use of available compression technology. New entrant content, plus inter-active applications from datacasters and others, will contribute to that smorgasbord of choice.

With use of available compression technology, high definition television and multi-channelling are not mutually exclusive. It's not just HD or multi-channelling.  We can actually have it all on the terrestrial platform.  We can have HD and multi-channels as part of the consumer offering.

The decisions that we make now in response to the Government policy reviews will impact on our industry for the next 5 to 10 years, and over that timeframe compression technology is expected to continue to improve.  MPEG-4 offers, roughly speaking, a 50% saving in bandwidth over MPEG-2 video services.  Fifty per cent of a 12 Mbps HD signal at present is really significant and could represent 6 SD TV services at approximately 1 Mbps. 

MPEG-4 receivers have arrived but they are not driven by DVB-T, rather it is the IP networks seeking to drive per unit bandwidth costs down that are leading the charge.  Once there is scale from the IP network rollout we fully expect the DVB markets will readily follow suit, subject to the regulatory environment and the business case.

On the business case, the opportunity to deliver twice as much through the same bandwidth cannot be ignored.  What we need to create now is the ability to take advantage of this in the future.  As an option, we must not close it off.

Of course in making any change the legacy issue has to be considered.  And that's the legacy of MPEG-2 receivers.  We estimate that there are fewer than 50,000 MPEG-2 HD boxes currently in the market. The point is that this legacy issue will only grow unless we grasp the nettle now and make decisions now about being in a position to capitalise on compression technology and efficient use of bandwidth.

Turning to broadcast channel multiplexing, to demonstrate the potential: currently MPEG-2 channels carry one SD signal, one HD signal and have some bandwidth left over for some data services.

One option to consider is a strategy that provides for MPEG-2 SD signal (which will address the vast majority of current legacy MPEG-2 boxes) being carried concurrently within the transport stream with MPEG-4 content. This will provide the opportunity to use the remaining bandwidth for HD and multiple SD channels, or even multiple HD channels and multiple SD channels within the SAME 23 Mbps bandwidth.

On standards, the question for the industry is: What does the catalyst need to be for the API Standard to be defined and adopted?  The standard currently says MHP but HTML is being implemented.  What we as an industry need to do is sort out the standard, define it and provide certainty to all parties. Otherwise we will continue to stifle the development of content applications and interactivity.

What I am very keen to see is the finalisation of the standard that incorporates MPEG-4 so as not to exclude the flexibility and benefits, technical and economic, of compression technology going forward.

On broadcast spectrum, there is available spectrum that is not being used currently. I think Gerry Moriarty made the point that spectrum need not be a scarce commodity going forward.  There is ample spectrum that could, and should, be made available permanently to assist the wider choice and offer more services to the viewer.

Of course we want datacasters to be treated like the free-to-air sector, in terms of the datacasting model, in that it is a revenue-based tax collection system.

But just turning to how much spectrum is available.  There are at least 2 channels available in each of the metropolitan markets.  There is more in most parts of regional Australia, and depending on how Channel 31 is treated in the conversion to digital in the metropolitan markets, there could be more than 2 channels available. So greater choice of content is definitely possible.

On testing and conformance, getting our act together in terms of testing and conformance is essential, and it should be undertaken as soon as possible with full industry participation, working with an agreed and defined standard.

Returning to the topic: Is datacasting alive, well and growing?  Well on this I have tried to demonstrate the approach we are taking to utilise the 7 megahertz bandwidth allocated for the datacasting trial.  Digital 44 is the datacasting channel brand and we are currently running MPEG-2 video and data services using an 800 watt transmitter, and we are operating with 8 channels of approximately 2 Mbps per channel.

The types of services that we are carrying on the datacasting service include the industry-wide VPG, which is being carried on Channel 4 on Digital 44. The Channel 44 Home Page summarises all of the other services that we are currently carrying on our datacasting trial service in Sydney.

We have a news, sport and weather channel, with information provided by the ABC.  That carries the top 15 stories from around the globe and is updated in real time at the same time as the ABC web site is updated for new stories.  Weather information in the major capitals is also included.

We are working with the State Government of New South Wales with a suite of services under the 'Services NSW' banner. We've got traffic reports, what's on in Darling Harbour - a tourism related service, we've got cameras located at 11 or 12 of the major surf beaches around the City, and there's a health and lifestyle information component to the service. TAB occupies one of the other channels and provides sports TAB information for non racing events.  We are carrying Federal Parliament services when they are sitting, with a choice of 7 audio services, and we are carrying the Expo lifestyle Channel.

There are 8 different programming channels being carried within the single 7 megahertz of bandwidth that we have been allocated.  At present we are only utilising 14 of the available 23 Mbps.  Thus, there is a substantial additional capacity to add more channels as new content demand emerges.

We formally launched the datacasting trial in March, so we've been running for less than 3 months.  Already further content demand is emerging, so we are contemplating an upgrade to the transmitter power levels to expand the bandwidth available.  We have had very positive early feedback from existing channel providers but the key point is, this is not a technical trial, this is a business trial.  There's a business viability test and frankly it's probably too early to make comment but it's not going to be easy to convert what we have so far into viable long-term permanent services. 

We're trying to convince the Government that this spectrum should be made available permanently as it has an opportunity to offer greater choice of services to the consumer if and when it comes to market.

The business viability of a datacasting service remains to be proven but nonetheless, we think it's got some huge public interest benefits in terms of the services that it can provide - and the services being trialled by NSW Government is one example of that.

Just to summarise - how are we actually going to take forward the fantastic opportunity that digital terrestrial television does offer us as an industry, and to the public?

We definitely need the ability and the flexibility for broadcasters to offer HD TV and multi-channelling content, and those things do not need to be mutually exclusive.

That means we need a strategy for MPEG-4 technology now. This MUST be considered as part of the policy reviews and response to the reviews that are currently underway.

Interactive television and the API Standards need to be finalised with certainty, because certainty will drive down costs and encourage development of the applications.

We would like to see the permanent allocation of the datacasting spectrum on a revenue-based model, with my eye very much on being able to offer additional choice to the consumer. And we clearly need a testing and conformance centre to be implemented on an industry-wide basis so that manufacturers, broadcasters and consumers can move forward with certainty in terms of the equipment that they are buying and the ability to receive upgrades to that equipment to maintain functionality.

I admit all of these must haves are consistent with our commercial strategy, but I would also strongly argue that they are also targeted at driving DTV penetration, making DTV more successful by providing a more compelling consumer proposition and therefore these initiatives are in the public interest as well as leveraging more use and services out of what has previously been (but need no longer be) a scarce commodity - prime broadcast spectrum.

To download Graeme Barclay's powerpoint presentation click here for part 1 & click here for part 2.

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