DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution...

16
DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract This white paper describes a number of the challenges facing large- scale commercial deployment of Mobile TV (DVB-H). In order to achieve commercial success, a balance must be struck between the provision of more advanced and attractive services to increase rev- enue, and the cost of such provision. One of the most attractive ways to increase revenue is to provide localized content; however, this is also potentially highly expensive in terms of both bandwidth require- ments and equipment costs. This white paper illustrates the flexible direct distribution architecture that offers the benefits of the lowest cost distribution model (typically satellite distribution) even when significant localized content is broadcast. UDcast - January 2007

Transcript of DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution...

Page 1: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

DVB-H Mobile TV flexiblesatellite distribution

WHITE PAPER

Abstract

This white paper describes a number of the challenges facing large-scale commercial deployment of Mobile TV (DVB-H). In order toachieve commercial success, a balance must be struck between theprovision of more advanced and attractive services to increase rev-enue, and the cost of such provision. One of the most attractive waysto increase revenue is to provide localized content; however, this isalso potentially highly expensive in terms of both bandwidth require-ments and equipment costs. This white paper illustrates the flexibledirect distribution architecture that offers the benefits of the lowestcost distribution model (typically satellite distribution) even whensignificant localized content is broadcast.

UDcast - January 2007

Page 2: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

2 - UDcast - January 2007

TABLE OF CONTENTS

1. Introduction ..................................................................................................... 3

2. Challenges of Mobile TV operators .................................................................. 42.1. Technical Challenges in the generic DVB-H chain ................................................. 42.2. Commercial Challenges ........................................................................................ 5

3. DVB-H network architectures .................................................................. 63.1. Distributed .................................................................................................................. 63.2. Centralized .................................................................................................................. 73.3. Direct to Transmitter ........................................................................................ 8

4. Local content revenues and impacts .................................................................. 8

5. Introducing the Flexible Direct to Transmitter architecture .................... 10

6. Case study ..................................................................................................... 116.1 Assumptions ..................................................................................................... 126.2. Comparison of architectures ........................................................................................ 13

7. Conclusions ..................................................................................................... 14

About UDcast ..................................................................................................... 14

Page 3: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

1. INTRODUCTION

3 - UDcast - January 2007

The TV has been one of the most successful productsto be developed during the second half of the 20thcentury. Certainly it has become a major part of ourleisure time, with the average American consumer

watching about four and a half hours per day (sourceNielsen Media Research 2005) and the averageEuropean only slightly less.

Yet, unlike its simpler predecessor, radio, it has strug-gled to be successfully used in a portable environment.As the photos illustrate, battery powered portable TVshave been around for years in various forms; neverthe-less, they have not really caught on. Particularly whenit comes to watching TV on the move, numerous prob-lems with the products offered - such as short batterylife and large and vulnerable antennas - have resultedin low take-up despite all the millions spent in develop-ment and advertising.

However, the advent of comparatively cheap and lowpower LCD screens and improved battery technologyhas meant that in the last few years portable devicessuch as PDAs, DVD players or games consoles havebeen rather more successful. High-speed wireless tech-nologies such as 3G mobile telephony have permittedvideo calls with high-bandwidth data and hence, intheory, the ability to watch live TV on the move. Thiscapability has come at the cost of limited scalability, asthe 3G video session is always a unique one-one con-nection rather than the one-to-many service that isrequired for a broadcast.

As a result of the combination of the DVB-H (DigitalVideo Broadcast - Handheld) standard - explicitlydefined for broadcasting to mobile devices - with theserecent technical developments, mobile TV is now look-ing far more attractive than any time before. Yet whileDVB-H works well in the handset, it presents a certainnumber of challenges for the operator seeking todeploy a broadcast network on a large scale, some-thing that must be done if mobile TV is to reach a massaudience.

Page 4: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

4 - UDcast - January 2007

2. CHALLENGES OF MOBILE TV OPERATORS

Because DVB-H is a broadcast technology operating inlicensed radio frequencies, at least part of its challengestems from the need to balance its spectrum require-ments with those of other broadcasting services. DVB-H is largely adapted for the UHF (470-862MHz) spec-trum, but it is also possible to deploy it in the L(1.67GHz) and S (2.2GHz) bands. The UHF bands offerexcellent penetration of buildings and hence thelargest cell size, but these frequencies are currently notavailable everywhere in the world. The optimum cover-age of dense urban areas will in any case require signif-icant investment in transmitters in order to achieve therequired level of signal strength and quality.

DVB-H, by reusing much of the previously defined DVB-T standard, is also able to reuse part of the equipmentand network planning set-up of DVB-T broadcasters;however, because DVB-T is not intended for mobileuse, issues such as handover between broadcast zonesand reception quality of the built-in antenna receiversdo not apply. The distribution network supplying con-tent to the towers must be carefully engineered, andthis adds to its cost and complexity. In the ideal worldevery tower would be easy to connect to via terrestrialdistribution links, but this is not always possible sincethe preferred broadcast locations (hilltop towers andthe tops of buildings) are not usually the sorts of placesthat have a ready-laid network link.

2.1. TECHNICAL CHALLENGES IN THE GENERIC DVB-H CHAIN

The key technical challenge for DVB-H is that within anSFN (Single Frequency Networks) all towers mustbroadcast the identical signal to within 100ns accuracy.This stringent requirement means that the latter part ofthe distribution path must be totally deterministic, up toevery single bit transmitted.

Although not as stringent in its requirement for syn-chronization, the rest of the distribution path also ben-efits from having as similar a path as possible, especial-ly to transmitters in the same SFN. And beyond theboundary of the SFN, issues such as handover from oneSFN to another (MFN handover) can be engineered to

be smoother when the signals are deterministicallyrelated to each other. In the illustration below, loss-freehandover is illustrated by the way that the wheel istransmitted by the two SFNs. The blue cell is broadcast-ing the left half then the right half, while the red cellbroadcasts the middle first and then the edges. Thismeans that handover from one to another can be per-formed with no loss of image. However, significant net-work planning and coordination are needed to ensurethat this occurs, and this is simpler when the pathsthrough the distribution networks to the adjacent SFNareas are similar.

Page 5: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

5 - UDcast - January 2007

2.2. COMMERCIAL CHALLENGES

In addition to the technical network issues, there is alsothe question of commercial viability. The two main sources of revenues from the DVB-Hservices are subscription fee and advertising revenues.The results of numerous customer trials show the highwillingness of mobile users to pay for the Mobile TVservice (50-70% of trial participants declare satisfac-tion, as well as the interest in paying for the service),and this seems to be confirmed by the initial success ofthe first commercial deployments in Italy and Finland.First and foremost, subscribers are looking for a similarprogramming experience to that from traditional TV.This includes the availability of local TV stations, region-al news, and coverage of regional sports events. Then,as an additional step, the subscription value can beincreased by providing locally adapted services; forexample, weather and traffic news that is specific to thearea that the watcher is in, not to the whole country.

Traditionally TV business rely on advertising revenues,thus the combination of both subscription and adver-tising will guarantee an adequate revenue level.

In order to preserve an adequate revenue level, adver-tising revenues are likely to become critically impor-tant. Currently, many TV stations around the world areoffering regionalized advertising so that the same 30seconds of prime time advertising slot can be sold todifferent clients in the various regions. That brings in

new advertisers by enabling smaller local businesses,which do not wish to pay for a national advertisementthat will be wasted on viewers who are not potentialcustomers, to still place their TV commercials on top-profile national channels. With a reasonable number ofregions, the total revenue for the TV station may wellbe significantly higher than with a single nationaladvertiser.

National advertising can also take advantage oflocalised spot broadcasting, by adapting spots to localrequirements. This could be contact information foroutlets in the area where the advertisement is beingshown, or different choice or presentation of productsdepending on local preferences or demographics.

The latest multimedia technologies, when combinedwith various "canned" advertising services, are nowmaking the cost of creating video advertising extreme-ly attractive. Local video advertising, significantly lesscostly than a national campaign, massively increasesthe potential advertiser base, enabling a much-improved advertising sales pitch. Hence the potentialfor localization greatly increases the commercial viabil-ity of the DVB-H service.

DVB-H seems likely to share the audience with the FMradio services more than anything else, by providingboth video and audio content. It is worth noting that

Probably the best way to ensure that such smooth han-dover is achieved is to have a centralized, hierarchicaldistribution network made up of common equipmentat each level and broadcasting a common signal

throughout. However although it simplifies the techni-cal network design, a single signal has a number ofcommercial (and possibly regulatory) drawbacks, as itremoves the possibility of localization.

Page 6: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

6 - UDcast - January 2007

local radio business model is driven by local content -announcements of local events, local traffic reportsand so on.

There may in fact be regulatory issues that drive this -such as a requirement that local affiliates or regionalstudios provide some of the programming - but even ifthis is not the case, advertising content is also a strongdriver for local content.The recent advances in IPTV and cable TV are changing

the shape of advertising industry, by introducing theAddressable Advertising concept, with higher andhigher resolution of addressability of the audience, andfuture Mobile TV networks will be required to copewith the new advertising standards.

However, localization has a significant impact on thesort of network architecture to be employed.

3. DVB-H NETWORK ARCHITECTURES

3.1. DISTRIBUTED

The traditional distributed DVB-H architecture has an IPEncapsulator per region (or per SFN), which receivescontent via the contribution IP network. The distribu-tion network is then used to distribute the MPEG-2Transport Stream to the modulators within the localSFN cells. The distributed architecture lends itself wellto local programming and is similar to the network of acellular phone operator. The IP contribution is

designed to reuse any of existing and inexpensive IPmulticast backbones. Thanks to the possibility of aggre-gated management of multiple IP Encapsulators withonly a single IPE Network Manager console, the entiresystem is very easy to configure and control. At thesame time, though it requires advanced and separateddistribution networks for the transport streams withineach SFN cell.

Contributionnetwork

SFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN A

dapter

SFN M

odul.SFN

Modul.

Distributionnetwork

SFN imposes synchronized

outputs

IP

DVB-H + MIP

IPE NetworkManager

IP Encapsulator

IP Encapsulator

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

SFN CellSFN CellSFN CellSFN CellSFN CellSFN CellSFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN A

dapter

SFN M

odul.SFN

Modul.

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

SFN imposes synchronized

outputs

IP

DVB-H + MIP

IPE NetworkManager

IP Encapsulator

IP Encapsulator

Page 7: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

3.2. CENTRALIZED

7 - UDcast - January 2007

NationalDistribution

network

SFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Cell DistributionnetworkIP

DVB-H + MIP

IP Encapsulator

IPE NetworkManager

NetworkAdapter

NetworkAdapter

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

SFN CellSFN CellSFN CellSFN CellSFN CellSFN CellSFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell DistributionnetworkIP

DVB-H + MIP

IP Encapsulator

IPE NetworkManager

NetworkAdapter

NetworkAdapter

In the centralized architecture, there are no externalcontribution networks, but the distribution network isthus considerably larger and more complex. The cen-tralized architecture does not directly rule out localiza-tion of the content, but it is clearly optimised for cen-tralized content. This architecture is similar to nationalbroadcasting networks today. The IP Encapsulation is

managed at the national head-end, and the each trans-port stream need to be distributed nation-wide via ded-icated data links. Because of its centralization, it is rela-tively simple to engineer, but the terrestrial distributionnetwork it is not much less expensive than the distrib-uted architecture.

Page 8: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

8 - UDcast - January 2007

Contributionnetwork

SFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Distributionnetwork

National Distribution network only

DVB-H + MIP

IPIP Encapsulator

IPE NetworkManager

NetworkAdapter

NetworkAdapter

NetworkAdapter

NetworkAdapter

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

SFN CellSFN CellSFN CellSFN CellSFN CellSFN CellSFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

National Distribution network only

DVB-H + MIP

IPIP Encapsulator

IPE NetworkManager

NetworkAdapter

NetworkAdapter

NetworkAdapter

NetworkAdapter

"Direct to Transmitter" is the logical extension of thecentralized architecture. Rather than using a terrestrialdistribution network, the encoded signals are transmit-ted via satellite to all transmission towers. This architec-ture is much less expensive to deploy in terms of capi-

tal expenditure since the distribution network is simplya single satellite, but localization is difficult to introdu-ce without sending multiple separate high-bandwidthstreams to the satellite, drastically increasing the opera-tional costs of the network.

4. LOCAL CONTENT REVENUES AND IMPACTS

In order to understand the impact local content has onthe different architectures (distributed, centralized anddirect to transmitter) it is perhaps worth looking atthem visually.

The addition of local content makes the distributed andcentralized architectures rather similar in terms ofimpact on the network components, as the two imagesbelow illustrate.

Contributionnetwork

SFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN A

dapter

SFN M

odul.SFN

Modul.

Distributionnetwork

IP

DVB-H + MIP

Regional or local content

IP Encapsulator

IP Encapsulator

IPE NetworkManager

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

SFN CellSFN CellSFN CellSFN CellSFN CellSFN CellSFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN A

dapter

SFN M

odul.SFN

Modul.

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

IP

DVB-H + MIP

Regional or local content

IP Encapsulator

IP Encapsulator

IPE NetworkManager

NationalDistribution

network

SFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Cell DistributionnetworkIP

DVB-H + MIP

SFN A

dapter

A full TS per SFN cell

IPE NetworkManager

IP Encapsulator

IP Encapsulator

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

NationalDistribution

network

SFN CellSFN CellSFN CellSFN CellSFN CellSFN CellSFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell Distributionnetwork

Cell DistributionnetworkIP

DVB-H + MIP

SFN A

dapter

A full TS per SFN cell

IPE NetworkManager

IP Encapsulator

IP Encapsulator

“distributed” with local content “centralized” with local content

3.3. DIRECT TO TRANSMITTER

Page 9: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

9 - UDcast - January 2007

Content for the two networks follows a similar pathbut, since there are differences about where the aggre-gation occurs, the size of the distribution and contribu-tion networks differs. In the centralized model localcontent must be brought to the central location forencapsulation and subsequent distribution, thus requi-ring a high capacity distribution network.

The direct-to-transmitter model is an extreme exampleof centralization and, although it is technically elegant,

it suffers from one simple practical problem. Each localarea requires its own expensive satellite bandwidth forthe entire MPEG2 Transport Stream , even though inmost practical cases 80-90% of its content is nationaland thus shared between all areas. Obviously thedegree of localization affects very strongly the distribu-tion cost, and since every stream incurs the same band-width charge the total could range anywhere from 10-to 100-fold that of a single stream.

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

SFN CellSFN CellSFN CellSFN CellSFN CellSFN CellSFN Cell

SFN A

dapter

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

SFN A

dapter

A full TS per SFN cell

DVB-H + MIP

IPIP Encapsulator

IP Encapsulator

IPE NetworkManager

NetworkAdapter& demux

NetworkAdapter& demux

NetworkAdapter& demux

NetworkAdapter& demux

An initial nationwide roll-out using the direct-to-trans-mitter model would at first sight make sense, since thecapital expenditure would be so much reduced; howe-ver, introducing localization in order to bring in localcontent to satisfy viewers and maximize potentialadvertising revenue is very hard and expensive usingthis model.

In the typical mobile TV broadcast service one mightexpect 80% of the content to be common nationwide

with perhaps 15% being regional and 5% local to aparticular urban areas. In the traditional direct to trans-mitter network model supporting such content, thecost of the capital expenditure and ongoing operatio-nal costs required to implement it are very high.

Thus the rollout of local TV services (local channels oradvertising) is problematic from the cost perspective inall traditional centralised DVB-H network models.

Page 10: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

10 - UDcast - January 2007

The ideal solution is to use the direct-to-transmitterapproach but introduce in the path at each transmis-sion tower some device that is able to remove selectedcontent from the IP encapsulated MPEG2 TransportStream not required for the local area, and then rege-

nerate the stream without it. The creation of such aadaptation device is far from straightforward, requiringintimate knowledge of both satellite transmission andDVB-H. That combination of specialities is one thatUDcast, uniquely, possesses.

Contributionnetwork

SFN Cell

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Distributionnetwork

IP

One TS Aggregates

national + local content

Synchronous iSplicers regenerate

the contentIPE Manager

IP Encapsulator

iSplicer

iSplicer

iSplicer

iSplicer

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

Contributionnetwork

SFN CellSFN CellSFN CellSFN CellSFN CellSFN CellSFN Cell

SFN M

odul.SFN

Modul.

SFN M

odul.SFN

Modul.

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

Distributionnetwork

IP

One TS Aggregates

national + local content

Synchronous iSplicers regenerate

the contentIPE Manager

IP Encapsulator

iSplicer

iSplicer

iSplicer

iSplicer

UDcast has developed the patented UDcast iSpliceradapter (the 'i' in the name stands for isochronous),which allows for the synchronous, completely determi-nistic regeneration of the encapsulated stream. Theresult combines the low capital and operational expen-diture offered by satellite transmission with not onlythe content flexibility of the distributed model, but alsothe synchronization and handover advantages of thecentralized model. Moreover, UDcast's unique back-ground and long involvement with both DVB-H andsatellite distribution mean that their new solution isassured to function correctly despite the innovativenessof the technology.

In this unique solution, a single transport stream iscreated by the IPE, which contains all the local contentfor all regions as well as the common national data.

The stream is completely standard except for someadditional in-bound control, added to the PSI/SI meta-information, which identifies which cells particularlocal content is destined for. However, it has to benoted that since the transport stream includes all thecontent for all areas it consumes more encapsulationbandwidth than would be the case if the encapsulationincluded only the content that can be broadcast by asingle DVB-H transmitter. The iSplicer filtering algo-rithm uses the modified PSI/SI information to identifywhich parts of the stream are to be discarded, andreconstructs the stream so that it comprises only rele-vant content. The filters perform this task in real time ina completely deterministic fashion so that not only arethe 100ns timing requirements of DVB-H adhered to,but the synchronization between different towers isalso guaranteed.

5. INTRODUCING THE FLEXIBLE DIRECT TO TRANSMITTER ARCHITECTURE

Page 11: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

6. CASE STUDY

11 - UDcast - January 2007

In order to illustrate the advantages of the flexibledirect-to-transmitter model, it is probably best to use acase study with cost structure representative of eachnetwork architecture. The example presented is basedaround the requirements for a country similar in surfa-ce and size of the population to France. It assumes thatDVB-H is rolled out to cover 2/3 of the population,which corresponds to about 1/3 of the surface area ofthe country. The costing used is conservative in termsof pricing and is not intended to be anything morethan an indicative one suitable for comparison.

The case study makes revenue assumptions basedpurely on subscription income, assuming that the ser-vice deployed by each operators is taken up by 18.75%of the total addressable population. Advertising andincreased subscription revenues would clearly be inaddition, and it is not taken into account in this compa-rison for sake of simplicity.

Page 12: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

12 - UDcast - January 2007

6.1. ASSUMPTIONS

The ideal solution is to use the direct-to-transmitterapproach but introduce in the path at each transmis-sion tower some device that is able to remove selectedcontent from the IP encapsulated MPEG2 TransportStream not required for the local area, and then rege-

nerate the stream without it. The creation of such aadaptation device is far from straightforward, requiringintimate knowledge of both satellite transmission andDVB-H. That combination of specialities is one thatUDcast, uniquely, possesses.

Market Assumptions Equipment costs

Urban Area 354 IPE (cap)(op p.a.)

€ 30,000

Surface 175781 km2 € 3,000

Cell Surface 497 km2 Direct Equip(cap)(op p.a.)

€ 10,000

Cells (local content areas) 100 € 1,000

Transmitters &/ Cells 25Tx + Amp (cap)(op p.a.)

€ 70,000

Target Population 39 Million €8,300

Content : NationalRegionalLocal

8 Mbps1.5 Mbps0.5 Mbps

Satellite Uplink(cap)(op p.a.)

€ 100,000€10,000

Annual Fee Per User € 100 Sat (B:w (p.a.) € 150,000 per Mb

Market Share 18.5 %

Revenue € 712.5 Million

As noted above, the estimated revenue is calculatedfrom the subscription income alone. Further details ofprecisely how the various equipment costs have been

estimated and how the different networks have beenpriced are available from UDcast upon request.

Page 13: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

6.2. COMPARISON OF ARCHITECTURES

13 - UDcast - January 2007

The table below shows the costs of capital (CAPEX) andannual operational expenditure (OPEX) required forthe different network architectures. The total annualcolumn consists of the operational cost plus the amor-

tized capital expenditure spread over four years. Thesubscription revenue % column then takes the totalannual cost as a percentage of the annual subscriptionrevenue (€712.5 Million).

Capex(€’000)

Opex p.a.(€’000)

Total annual(€’000)

SubscriptionRevenue %

Distributed(no localization) 185,270 39,935 86,214 12 %

Distributed(with localization) 185,270 39,935 86,214 12 %

Centralized(no localization) 181,558 39,910 85,300 12 %

Centralized(with localization) 211,679 188,410 222,192 31 %

Direct(no localization) 105,130 12,013 38,296 5 %

Direct(with localization) 135,220 160,513 194,295 27 %

Flexible Direct(no localization) 105,823 12,013 38,469 5 %

Flexible Direct(with localization) 105,823 24,869 52,325 7 %

The traditional distributed architecture is the most flex-ible one, representing no increase in the network costindependently of the availability of local content.

An additional further decrease of cost is possiblethrough the direct to transmitter architecture. The useof satellite distribution compared to terrestrial distribu-tion is a clear winner in both opex and capex terms, solong as there is no wasteful repetition of bandwidth.Since the direct-to-transmitter architecture is conven-ient, presents clear advantages from an ease of synchronization perspective, and is similar to currentmethods of distribution, this ought to be a very attractive model.

Unfortunately, a requirement for local content ruins thearchitecture's effectiveness because, while its capitalexpenditure remains low, the operational cost skyrock-ets due to the requirement to send multiple copies ofthe same data over expensive satellite links.Fortunately, the flexible direct architecture is able tooffer the same low capital and operational costs asother satellite technologies while offering similar localcontent capability to the distributed architecture.

Page 14: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

14 - UDcast - January 2007

7. CONCLUSIONS

The simplicity, synchronization advantages andlow capital investment required for the satellitearchitectures mean that deployment of suchdirect-to-transmit networks is very attractive froma commercial perspective. However their greatdrawback - the apparent requirement for centrali-zed content - has previously meant that operatorswould be locked into a centralized business modeleven if, as seems likely, offering of custom localcontent would increase their customer satisfactionand revenue.

Fortunately the "Flexible Direct" architecture,based on the DVB-H iSplicer technology, allowsthe low costs of satellite distribution to be combi-ned with the flexibility of the terrestrial distributedarchitecture. Not only does this increase ROI, italso reduces the risk of misreading the require-ment for local content.

ABOUT UDCAST

UDcast is the leader in the DVB-H IP Encapsulation pro-viding its IP Encapsulators, as wells Mobile TV networktransmission (DVB-H iSplicer) and monitoring equip-ments to 70% of global DVB-H deployments and trials.The solutions of UDcast are deployed in the countrieslike USA, Finland, France, UK, Spain, Italy, Germany,Netherlands, China, Hong Kong, Singapore, Taiwan,Philippines, Indonesia, Malaysia, Vietnam, India,Australia, and South Africa. The equipments and

technologies of UDcast are selected by Nokia,Motorola, Alcatel-Lucent, Harris and other globalMobile TV integrators as part of their commercial solu-tions. UDcast has been at the forefront of DVB-H devel-opment from the very beginning, and was involved inthe standardization process through ETSI, as well as inthe development and standardisations of protocolsenabling satellite IP communication.

Page 15: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

AUTHORS

15 - UDcast - January 2007

Dr Antoine ClergetDr Luc OttavjFilip Gluszak

CONTACT UDCASTHeadquarters:2455 route des Dolines BP 355 06906 Sophia AntipolisCedexFRANCE

Tel. +33 (0)493 001 660 Fax. +33 (0)493 001 661

[email protected]

For more information please visit our website:

www.udcast.com

Page 16: DVB-H Mobile TV flexible satellite distribution · DVB-H Mobile TV flexible satellite distribution WHITE PAPER Abstract ... programming experience to that from traditional TV. ...

©2006 UDcast SA. All rights reserved. UDadmin, UDauth, UDboost, UDbox, UDcast, UDcrypt, UDgateway,UDkit, UDpush, UDredundancy, UDroutecast, UDstation, iSplicer, the UDcast corporate logo, are trademarks ofUDcast SA. All other trademarks are the property of their respective owners. Information is subject to changewithout notice, in equipment design as engineering or manufacturing methods warrant. Text, pictures & schema are not contractual.