Memorandum submitted by Cisco Systems
INTRODUCTION
Cisco Systems ("Cisco") is the global
leader in Internet networking equipment and therefore closely
follows policy decisions that may encourage or discourage the
growth of network capacity.
Cisco believes that digital switchover has the
potential to deliver significant benefits in that it opens up
options for making more efficient use of use scarce radio spectrum.
This submission by Cisco aims to provide the
Committee with summary information about these potential economic
benefits. We make a number of recommendations as follows:
Regarding digital switchover, Cisco would make
the following recommendations:
— Set a short timescale and fixed date
for digital switchover.
— Maximize the commercial broadband
wireless opportunity when planning television broadcasting in
the digital world.
— Consider the wider economic benefits
of different uses of released spectrum.
— Reserve a sufficient part of the
vacated spectrum below 1 GHz for wireless broadband—including
convergent services such as interactive broadcast TV over mobiles.
— Make this spectrum licensed (exclusive
spectrum usage rights).
— Aim for a fixed date for digital
switchover and spectrum harmonization as much as possible across
Europe.
DIGITAL SWITCHOVER—A
POTENTIAL OPPORTUNITY
TO BOOST
BROADBAND TO
THE BENEFIT
OF THE
ECONOMY
— The digital switch-over will free
up very valuable frequencies.
Terrestrial digital television (DTV) is a far
more flexible and efficient broadcast technology than the current
analog system. Converting to DTV will clear valuable spectrum
for other important uses, particularly for wireless broadband.
The amount of cleared spectrum will vary depending on how the
European regulators decide to set the limits of digital broadcasting
frequencies.
The propagation characteristics around 700 MHz
are much more favorable than the current frequencies available
for wireless broadband, and translate into reduced cost and higher
efficiency (assuming licensed, service provider deployment). When
it comes to the ability to penetrate buildings and to the range,
the 700 MHz signals show better performances.
The following chart derives from the US context
and includes frequencies at 700MHz, 1,900 MHz and 2,400 MHz. Even
though these frequencies are not the same as those used in Europe[11],
the results illustrate how the frequencies below 1GHz are much
more favorable than frequencies currently available for wireless
broadband—either fixed or mobile.
SPECTRUM BELOW 1GHZ OFFERS THE MOST COST
EFFECTIVE SOLUTION
Source Intel
— It is critical to promote the deployment
of new broadband infrastructures in Europe
The data in terms of broadband penetration show
a correlation between infrastructure competition and penetration.
The competition between infrastructures also
stimulates the migration to next generation broadband. The availability
of the most advanced generation of broadband is key for Europe
competitiveness.
In Europe, the availability of a relatively
inexpensive network build is really important because wireless
broadband does not have first mover advantage in the market—it's
competing against DSL, cable and some of the latest 3G technologies.
Spectrum below 1GHz therefore represents an
important "potential competitor" for the broadband future
because it will have a lower cost basis, giving it a big boost
for its business case.
Wireless broadband technologies have also experienced
significant innovation over the last few years unleashing the
possibilities of convergent (voice, data, video) services.
The spectrum that would be freed up by digital
switchover fills an important gap in the market in allowing the
development of high-speed wireless Metropolitan Area Networks
(MANs) at relatively low cost. This is because technologies such
as the WiMax (802.16 family) are likely to become available in
the frequencies that may be freed up by analogue switch off and
offer true broadband speeds.
Source Cisco
— Wireless broadband : a converged
platform to unleash innovation for innovative applications to
the benefit of the whole economy |
Wireless broadband is able to host all the information
& communication technologies (ICT) applications which transform
our economies and drive productivity growth. In particular, broadband
infrastructure is a converged platform which can host all ICT-related
transformation : e-business, e-government, school of the future,
e-healthcare, etc.
The allocation of spectrum to wireless broadband
would therefore enable the development of new services—based
on a variety of wireless broadband platforms—generating
new businesses as well as providing many opportunities to improve
existing businesses and practices.
— |including the Creative Industries
Sector
Wireless broadband is a key pillar of the transformation
of the economy including the creative industries sector. Broadband
infrastructures constitute an opportunity for broadcasters to
distribute their contents through new media.
The next generation networks enable innovative
services and business models related to audiovisual such as interactive
program guide, video on demand, multiview[12],
interactive advertising, network-based PVR[13],
local contents, and time-shifted TV[14].
As demonstrated by its recent announcements[15],
the BBC has identified the opportunity of the high speed Internet
as a new media—with much less bandwidth scarcity than air
broadcasting—to deliver video contents and take advantage
of innovative features.
Increased competition and bandwidth availability
in the wireless broadband sector will offer more opportunities
at lower cost for the creative industries to reach their audiences.
This will provide a boost to the audiovisual content sector as
a whole.
The digital dividend also constitutes an opportunity
to launch a mass-market mobile TV. Many players in the audiovisual
content sector are planning for this transition.
Technologies such as DVB-H, T-DMB or mediaFLO
enable the broadcast of audiovisual programs to mobile phones.
The use of such technologies in TV spectrum bands allows mobile
operators to deliver video to phones while sparing the scarce
2G and 3G mobile spectrum. Some experiments with TV over mobile
using such technologies as DVB-H have already started in Europe.
— Licensed spectrum (exclusive spectrum
usage rights) is likely to enable a faster time to market for
a new convergent service.
To achieve cheaper wireless deployment with
relatively fewer towers requires minimizing the risks of interference
sources sitting between the network and the end user devices.
Currently it seems the most realistic way to do this is licensed
spectrum.
— Pan-European harmonized spectrum
would improve business models.
Pan-European spectrum and conditions of use
would help manufacturers providing cheaper equipments by leveraging
economies of scale. Also it would create a higher opportunity
for pan-European service providers. Overall harmonization would
improve the business model.
— Pan-European certain date for digital
transition.
A pan-European deadline for digital switchover
would give further visibility to the industry and encourage Member
States to promote the digital transition. From the digital TV
industry perspective, establishing a firm date for the DTV transition
would help drive the market for digital products.
29 September 2005
11 In Europe, the relevant frequencies to compare
with should be 2,6 GHz and 3,5 GHz which are currently planned
to host 3G and wireless broadband services. Back
12
By multiview, we mean the feature which enables the viewer to
choose its angle of view from different cameras. Back
13
Personal Video Recorder. Back
14
http://promise.tv/index.html Back
15
http://creativearchive.bbc.co.uk/ ; http://backstage.bbc.co.uk/
; Back
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