Digital switchover in Sweden

[BGonaSTICK]

Sweden is at the forefront of digital switchover. In 1999, it became the second country in Europe to launch DTT services and is currently in the process of switching off its analogue terrestrial platform. Already, 23 main transmitters, out of a total of 54, have stopped their analogue television broadcasts.

With analogue switch-off expected to be completed by November 2007, the government has begun planning for the re-use of the released analogue frequencies. The network operator Teracom has already conducted trials for high-definition television (HDTV) and mobile television using the DVB-H standard, two services which may be made available to viewers in the next two years.

But the digital switchover process has not always been easy. At the time of launch, few viewers were interested in the DTT service offering and it was not until 2003 that viewer penetration improved dramatically. The European Commission (EC) caused further complications when it launched an inquiry into the funding of the DTT network in July 2004 following complaints from satellite operators that Teracom had effectively received illegal state subsidies. Only recently did the EC decide that Teracom did not in fact benefit from any state aid.

Initially launched in April 1999 with 3 multiplexes, the DTT platform is now available on 5 multiplexes and offers viewers 10 free-to-air and 27 pay-DTT services in additional to regional programming. DTT coverage has reached 98% of the population and is expected to increase to 99.8% by early 2008 for the multiplex operated by the public service broadcaster.

It is estimated that over a third of households rely on terrestrial delivery for their main television reception platform. In addition, it is used for secondary television sets as well as those in vacation homes. Among Sweden's 4.2 million television households, close to 1 million have converted to the DTT platform as of September 2006. Of these DTT households, 300,000 rely only on the free-to-air platform.

The process of analogue switch-off has begun using a regional approach in five stages begun in September 2005 and ending in October 2007. A break in the process occurred between May to November 2006 to prevent against any adverse impacts on the national elections.

* Stage 1: September - December 2005: Gotland, Gävle and Motala/Linköping

* Stage 2: February - May 2006: Kisa, Norrköping, Uppsala, Västerås, Östhammar, Bolinäs, Borlänge, Hudiksvall, Mora

* Stage 3: November 2006: Boräs, Emmaboda, Finnveden, Halmstad, Jönköping, Nässjö, Skövde, Varberg, Vislanda, Västervik

* Stage 4: March - May 2007: Stockholm, Sollefteå, Sundsvall, Sveg, Tåsjö, Ånge, Örnsköldsvik, Östersund, Arvidsjaur, Gällivare, Kalix, Kiruna, Pajala, Älvsbyn, Överkalix

* Stage 5: September - October 2007: Filipstad, Karlstad, Lycksele, Skellefteå, Storuman, Sunne, Vännäs, Bäckefors, Göteborg, Trollhättan, Uddevalla, Helsingborg, Hörby, Karlshamn, Karlskrona, Malmö

The first three stages of the process have been completed which has resulted in analogue switch-off affecting nearly 50% of the population. However, much work remains as analogue switch-off is not expected in the three largest Swedish cities, Stockholm, Gothenburg and Malmö, until later this year.

The analogue switch-off process has been managed by the Digital Switchover Commission. With a small staff and limited budget, its has focused primarily on providing the general public with information on digital switchover. Funding to help purchase DTT receivers for low-income households has been managed by local social services.

With analogue switch-off expected to be completed by November 2007, the government has started to plan how to re-use the released analogue frequency channels. Already, it announced that a sixth DTT multiplex will be available in the Stockholm area to provide viewers with the Finnish language services of Sverigfinska Riksförbundet. While these services have been available on the terrestrial analogue platform, they had not previously been simulcast on the DTT platform.

The government would like to make efficient use of the spectrum while also making it possible to offer new services such as mobile television and/or HDTV. In order to better understand how to use the available terrestrial frequencies, the government mandated the communications regulator, National Post and Telecom Agency (PTS), to make a study.

In September 2006, PTS delivered its report in which it estimated that at least 189 MHz can be released by analogue switch-off in frequency bands I, III and IV/V. However, it is unlikely that band I will be used for further television services.

As a key recommendation, the PTS supports the allocation of technology- and service-neutral spectrum licenses to allow operators to adapt to continual technological developments and the changing demands of the market. This means allowing for much flexibility for current and future usage.

The PTS also recommends that frequencies be allocated in such a way that provides society with the greatest value, although it has questioned the allocation of frequencies for further standard-definition DTT services. This may serve as an impetus for the provision of HDTV services on the terrestrial platform especially since the public service broadcaster, SVT, already makes its HD services available on the satellite and cable platforms.

Sweden is in a privileged position as one of the first countries in Europe to complete analogue switch-off. It is able to allow its viewers to benefit from new services, such as mobile television and HDTV, within a period of a few years whereas a majority of European countries will need to wait until 2012 when their digital switchover is completed. Serving not only as a model to other countries for the digital switchover process, Sweden may now become a leader in the allocation of the digital dividend.