83990 Note Number 04 ICT POLICY NOTES Development, the Digital Divide and the Digital Switchover September 2013 (DSO) Why the DSO in Africa (really) matters Jérôme Bezzina – TWICT The digital switchover (DSO) is a term used to describe the transition from analogue to digital technology for the delivery of television and radio broadcast services. It is a complicated global process and countries have taken widely differing amounts of time to complete it. Few African countries are likely to meet the International Telecommuni- cation Union (ITU) deadline of 2015. The biggest impact of this transition is improved television service through better picture quality, improved national coverage, and a wider choice of channels. But improvements are also expected in broadband internet through the efficiency gains afforded by digital broadcast technology. The spectrum that the switchover liberates presents a significant opportunity for extending internet access (through mobile broadband). This is particularly significant for Africa, where the internet penetration rate is only 16%, half that of Asia and the Pacific.1 If managed effectively, the DSO could boost economic and social development and support the delivery of programs related to the Millennium Development Goals (MDGs) by enabling increased access to and delivery of digital services, for instance,remote educational content. The DSO process can also enable a range of competitive service offerings; improve the coverage of digital services even in remote areas; make access to communication networks more equitable; while serving as a catalyst for optimizing the management of public-domain spectrum resources. Those countries that are least likely to achieve the DSO deadlines are also those which can least afford to miss out on this opportunity. Targeted policies and investment can contribute to a successful transition that supports information society goals and broader development objectives. This series highlights 1. DSO and the ‘Digital Dividend’ . The spectrum freed up by the DSO tends to be transformative analytical and more suitable. It uses lower frequencies that have The DSO represents a massive, one-time opportunity a greater range, and allows operators to rollout operational work and discusses to enable more pervasive and affordable access through networks effectively thereby passing on those savings emerging policy issues in the increased competition and innovation in both the to consumers. This is particularly important for rural information and communication broadcast and telecommunications sectors. The radio areas because the capital cost for networks using these technologies sector. spectrum freed up by the transition from analogue frequencies can be lower than that of existing networks to digital technologies is referred to as the Digital which must use the higher. Dividend. The key impacts of the DSO are listed below: In the history of communications to date, there has generally been only a limited engagement between . Efficiencies from digital broadcasting transmission the broadcast and telecommunications sectors. From will lower barriers to entry for new TV channels, a governance and regulatory perspective, they are improve picture quality and facilitate national coverage for all channels. usually managed by different ministries. The DSO introduces ‘competition’ between the two sectors to . Substantial demand for additional spectrum retain control over the parts of the radio spectrum for mobile broadband has dramatically increased traditionally allocated to them. Convergence of these the value of the Digital Dividend spectrum. The sale of appropriate frequencies can raise funds for sectors has yet to happen in most African countries. governments and proper spectrum pricing will Because so little television broadcast spectrum is ultimately have an impact on broadband service pricing to end users. currently in use in Africa, the new spectrum freed 1 “The World in 2013: ICT Facts and Figures”, ITU, 2013 New Frontiers and Opportunities in Work: ICT is dramatically reshaping the global job market International regulatory framework of the Digital Dividend (source: GSMA) Mauritius – the experience of Africa’s early adopter • The spectrum allocation for analogue television Mauritius is a small island with a relatively high standard of living. Some 360,000 Analogue broadcasting households have Televisions, there is one Television operator, the state-run MBC, and 470 MHz 862 MHz one signal carrier, Mauritius Multi Carrier • In 2006, the Geneva 06 Agreement (GE-06) planned the migration from Ltd (MMCL). analogue to digital TV broadcasting for Europe, the Middle East and Africa, with the analogue switch-o (ASO) deadline set for June 2015. Digital transmission launch: The Digital transmission was launched in 2006 with Digital broadcasting 70% geographic coverage of the island. 470 MHz 862 MHz Today, there are three multiplexes offering 12 channels. By the end of 2011, some 250,000 • The transition will provide: set top boxes had been sold. Mauritius • Significant improvement in programme choise and picture quality for viewers • An opportunity to use some of the radio spectrum currently used for TV for other anticipates turning off the analogue signal purposes, such as expanded mobile broadband service. in 2013. • The Digital Dividend is the amount of spectrum made available by the Duration of DSO: 7 years in circumstances transition of terrestrial television broadcasting from analogue to digital. far more favorable that in most of Africa. Key lessons: • Digital Dividend 1: In 2012, as proposed by the African Telecommunication Union (ATU), a second international decision (ITU treaty—WRC-12) 1) Existing rooftop aerials were not allocated the 694–790MHz band to mobile broadband after 2015. suitable for Digital Terrestrial Television (DTT) and had to be replaced. There was Digital broadcasting Mobile poor installation of the replacement aerials 470 MHz 790 MHz 862 MHz and a training program for installers was launched. • After the 2012 decision, the ATU organised a series of regional coordination meetings to re-evaluate the frequency plan adopted in 2006 2) Retail staff was not familiar with DTT, (GE-06 plan) for terrestrial television broadcasting. which led to a high volume of customer queries. A video was made available to staff Digital broadcasting Mobile Mobile and customers, explaining DTT. 470 MHz 694 MHz 790 MHz 862 MHz 3) Where cheap set-top boxes were • In October 2012, the ATU positively concluded that it is feasible to limit purchased, there was sometimes a problem broadcasting to 470–694MHz, for four multiplexes with nationwide with asynchronous audio and video. A touring coverage. van was used to check and adjust coverage to overcome this problem. up through the DSO is potentially the biggest technical process. However it involves a wider of the two will be required. One option is windfall of spectrum for the next 20 years. In public private partnership (PPP) structures for set of policy issues related to cost, access, market this respect, it represents a special opportunity structure, resource allocation and broadcast signal carriers (of the kind that have been used to boost both broadcast and telecommunications content. widely for international fibre cable ownership in Africa. in Africa) to ensure that development purposes Cost of the process and access issues: A digital remain central to the process. Decisions on spectrum allocation tend to have transmission network is costly to establish and impacts that can last a generation or more. As a generally requires that consumers acquire new The switchover requires that all households result, the long-term consequences of how well devices. As a result, there is a risk that the DSO that have a television will need to pay as much the DSO is managed are significant. African will reinforce the exclusion of poorer citizens as US$50 (for a set-top-box), or purchase governments can learn from the experiences from access to television if they have to bear the a new TV, for a service they are already of countries that have already completed or full cost of the upgrade. Historically, African receiving. Without substantial improvement are further along in the process of their DSO governments have financed broader transmission in programming or picture quality, it would implementations. coverage area for public broadcasters with be hard to justify the cost for users. Although private broadcasters focusing on the wealthier South Africa, Kenya and Tanzania have subsidy 2. Policy Issues and Challenges urban areas. The DSO offers an opportunity schemes planned, other countries have not to create signal carrier platforms that will and therefore the estimated 30% or more who for African Policy-makers extend nationwide television transmission to cannot afford a set-top box may lose the use The DSO is a technology-driven process all broadcasters, allowing audiences outside of their TV. internationally driven by ITU with consensus urban areas to access a more diverse offering from all countries . Because it has been set by than just the public broadcaster. But this will Aside from set top boxes, the process of making the imminent obsolescence of a technology, not be achieved solely through government the public aware of the DSO is also costly. DSO is in danger of being treated solely as a funds - private investment or some combination Producing and packaging information on what ICT Policy NoteS POlicIES for the ICT TRANSFORMATION DTT Market Structure and Licensing regulation is assigned to different institutions. Broadcast regulators are often only responsible for monitoring content, leaving spectrum allocation issues to the telecoms regulator or other government department. 3 Currently in many countries there is a lack of clarity over: how digital channels will be allocated to broadcasters; if new entrants will be allowed; and how local content quotas will operate. Some African countries lack comprehensive spectrum plans and the capacity to manage spectrum allocations effectively. The DSO offers new challenges in terms of effectively freeing individual households need to do to avoid for sub-urban and rural areas. A number of up new spectrum for broadband technologies losing access to television broadcasts, and countries may have difficulty in meeting the such as LTE. This spectrum is a public good making sure it reaches everyone in time, is a ITU deadline of completion by 2015. The and it is important to ensure that it becomes massive effort, particularly in countries with slowness of the process is underlined in the available in a way that supports rapid and large rural populations. table below. widespread broadband roll-out. The speed with which the process is carried Regulatory issues: African broadcast and out in light of these obstacles will have a communications regulators have limited 3. DSO as an agenda for Policy- direct impact on when telecoms operators can capacity (in terms of staff, skills and resources) makers and for Development start using the most effective spectrum for and are subject to political interference. In Financial Institutions (DFIs) high-capacity mobile broadband, particularly many countries, broadcast and telecoms Whilst ITU is doing some work on technical Table 1: Africa’s Digital Transition – Summary of the State of Play issues and on regulator capacity building, policy-makers, and possibly several players Status Number Countries in the Development Financial Institutions (DFIs) need to make a concerted effort to Total countries 54 ensure that development benefits flow from No announcement of 35 See footnote2 national DSO processes. If they do not, the timeline opportunity cost of the status quo is enormous, Affected by civil 4 Cote d’Ivoire, Libya, Somalia and South as noted above. disturbance Sudan Policy goals, to be adopted by policy-makers Policy paper or Task 7 Benin, Botswana, Cameroon, Ghana, and the development community, could Force/Committee Mali, Senegal, Zambia, Nigeria include: Policy paper or Task 4 Congo-B, Mozambique, Namibia, Niger . Avoid widening the digital divide and Force/ Committee foster innovation: If the DSO process is not within 6 months managed effectively the digital divide may widen Pilots 6 Angola (short), Burundi (commercial), and citizens may be excluded from global digital CAR (small-scale), DRC (small-scale), developments and opportunities. Moreover Guinea (small-scale), South Africa Note: DSO could help produce the next wave of Only (Angola and South Africa) look like- development opportunities in Africa (e.g. ly to lead to a public transition process. innovation in multimedia content production – access to education, job / recruitment adverts?). Launched 9 Algeria, Gabon (private), Kenya, Morocco, Nigeria (Star Times/NTA), . Maximize opportunities for fast-tracking Rwanda (Star Times), Tanzania (Star widespread affordable broadband: A successful Times/TBC), Tunisia, Uganda Note: No DSO process will accelerate the freeing up policy yet announced in Nigeria of spectrum that can be deployed to provide broadband. This is a potential game-changer in Completed 1 Mauritius Africa, both for economic competitiveness and Source: Balancing Act for the African Telecommunications Union, November 2011 for rural broadband rollout. 2 The following 43 countries look unlikely to meet the ITU’s 2015 deadline: Angola, Benin, . Promote awareness: Many governments Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, are either unaware of the DSO, ill-prepared to Comoros, Congo-Brazzaville, Cote d’Ivoire, Djibouti, DRC, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Ghana, Guinea, Guinea-Bissau, Lesotho, Liberia, Libya, Madagascar, Mala- manage it successfully or ill-prepared to build wi, Mali, Mauritania, Mozambique, Namibia, Niger, Senegal, Seychelles, Sierra Leone, Somalia, the necessary public awareness. South Africa, South Sudan, Swaziland, Uganda, Zambia and Zimbabwe New Frontiers and Opportunities in Work: ICT is dramatically reshaping the global job market . Promote cooperation and support improved access models for the signal carrier. regional integration: Electromagnetic spectrum . Financial modeling and loan support to help doesn’t recognize or respect national boundaries. implement the signal carrier approach and for cross Without regional coordination countries run the risk of subsidy strategies linking auctions of mobile spectrum interfering with the broadcast or telecommunications to the re-farming of broadcast spectrum. networks of their neighbors With 55 countries each addressing the same problem in roughly the same It will be important to create momentum for timeframe, there are many opportunities for the DFIs broadband policies through the DSO switchover to assist in the development of templates and good and to provide a local content incentive for TV practice standards. owners to make the switch. Therefore we recommend . Minimize e-Waste: Analogue broadcasting the following additional areas: equipment is rapidly being phased out. This in turn could lead to an even greater e-waste problem at the . Support for local content promotion policies, end of the switchover process. particularly those that support MDG objectives such as education and learning channels. . Alignment of the DSO process with existing strategies: The DSO impacts many priority areas . Support for the development of policies that for regional development strategies, including lock media together with the roll-out of a converged competitiveness and employment, vulnerability and communications system that breaks down the urban- resilience and governance and public sector capacity. rural divide and assistance to link electricity roll-out to A converged digital communications structure (that a converged communications network roll-out. includes both television and broadband) has the POlICY NOTES potential to provide information and ideas that will 2: Mitigating market failure, and address all of these priorities. This series highlights trans- improving social and environmental formative analytical and op- sustainability erational work and discusses 4. Recommendations to meet the emerging policy issues in the There are financial barriers on the demand side information and communica- challenges of DSO tion technologies sector. The that will delay the DSO. The recommendations to findings, interpretations and African countries have little choice but to complete overcome these are the following: conclusions expressed the DSO process and will therefore face considerable herein are entirely those . Investment in subsidy schemes for set top boxes of the author(s) and do not challenges by 2015. The DSO should be seen not (STBs) to ensure that the DSO does not create new necessarily reflect the view just as an add-on to the broadcasting sector, but as inequalities in access to television. of the International Bank an opportunity for building an Information Society. for Reconstruction and . Investment in e-waste programs and facilities to Development/The World There are three proposed areas of focus to support deal with redundant analogue televisions. Bank and its affiliated the switchover. organizations, the Board . Rural electrification – vital to provide power in the of Executive Directors of many areas where there is none. the World Bank or the 1: Developing an enabling legal and governments they represent. regulatory environment 3: Supporting regional coordination, The World Bank cannot guarantee the accuracy Countries will need to build regulatory capacity and collaboration and public awareness of the data included in undertake activities specifically related to the DSO this work. and spectrum management. Areas recommended The DSO process will be achieved more quickly To order additional for attention include: and successfully if there is support for regional co- copies contact ordination between countries and an acceleration of . Spectrum auditing, management and assignment understanding best practices in the African continent. Siddhartha Raja strategies, including “spectrum trading”. sraja2@worldbank.org The recommendations to support this objective are . Liberalization that encourages new services and as follows: or technologies. Specific targeting of spectrum liberation Tim Kelly for mobile services in the 700 and 800MHz bands, . Promotion of best practices for speedy tkelly@worldbank.org implementation of the DSO and potentially, in the future, use of TV White Space Telephone: Technologies (TVWS). . Cross border co-ordination including frequency +1 (202) 473 1000 allocations and shared regional e-waste/recycling . Security and state integrity related issues (the facilities. The World Bank rationalization and optimization of public domain 1818 H St, N.W., spectrum resources for use by government). Washington, D.C., 20433 One of the weaknesses of existing DSO rollouts in It will be necessary to support development of open Africa is raising public awareness. Therefore countries access policies around signal carriage and licensing. could undertake the following: Areas recommended could include: . Provision of the expertise required and the formation of the bodies for devising practical strategies . Support for open access approaches to digital to speed up the DSO process. broadcast transmission infrastructure. Options include shared infrastructure for digital broadcast signal . Support for national multi-stakeholder consultation distribution, possibly supported by PPPs, and business processes. planning support for converged approaches to open ICT Policy Notes are also available online h tt p : // www.wo r l db a n k . o r g / I C T