Study shows that consumers will not reap the benefits of letting the market decide

According to a study published today, 27 February 2008, by Oliver & Ohlbaum Associates Ltd and DotEcon Ltd. there are sound economic reasons why a market for UHF spectrum is likely to fail. The study was presented at a Press Briefing in Brussels today. Speakers included Kerstin Brunnberg, Director general, Sveriges Radio AB and member of the EBU Executive Board and Frédéric Mion, Secretary General, Canal + Group.

The study states that if there is competition for access to spectrum, the significant public value of terrestrial TV services** will be ignored. In addition the balance and the strength of Europe's broadcasting and content creation industry would be damaged. The study shows that consumers will lose, if spectrum allocation for terrestrial broadcasting is inadequate. 

The truth about the "mobile myth" is revealed in the study which demonstrates that, the value created by using UHF spectrum for non-broadcast services, would be modest, and that the economic case for two-way mobile services (e.g. mobile telephony) in the UHF band in Europe is dubious. There are already large amounts of non-UHF spectrum available to mobile network operators.

The study also underlines that the business case for using UHF to deliver rural broadband is weak. In particular because there are other frequencies available which could be used for optimal delivery of rural broadband.  

European broadcasters***called upon decision-makers to be cautious when taking decisions on the future use of spectrum and welcomed the study's recommendation that: "Individual national markets need a critical mass of digital terrestrial broadcasting to ensure a fully functioning, vibrant, universal broadcasting market". 

* Mobile in this context refers to two-way mobile services, this does not include mobile broadcasting, which is one way transmission only

** Digital terrestrial television is the fastest growing method of TV delivery across Europe and cannot be replaced by other systems

***The following organisations are in the group of European broadcasters: AER, ARD, Canal+, EBU, france télévisions, Lagardère Active, Nordic PSB, ProSiebenSat.1 Media AG, RTL Group, VPRT and ZDF.

More information 

Press release

Download the executive summary of the study:

English    l   German

Download the full study:

"The effect of a Market-Based Approach to spectrum Management of UHF and the Impact on Digital Terrestrial Broadcasting"

More information on EBU Spectrum policy: www.ebu.ch/spectrum