Digital Radio in Thailand
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1 Digital Radio in Thailand DR market dynamics and overview of ITU work 12 December 2017 Peter Walop International Telecommunication Union
2 Agenda Topics 1. Radio market dynamics 2. ITU/NBTC joint DR projects 3. Key lessons learned 2
3 1. Radio market dynamics Radio is not TV Digital Radio is efficient FM and DR markets are correlated Digital Radio is not only IP 3
4 1. Radio market dynamics Radio is not TV Installed base of analogue receivers much larger than for TV Analogue receivers have to be replaced Digital radio business case more challenging Radio market is FTA no receiver subsidies ARPU is much lower than for TV No Digital Dividend for Radio ASO Business case much harder to make viable Simulcast period long Digital receiver retail prices are critical 4
5 1. Radio market dynamics Digital Radio is efficient (1/2) DAB DAB Nationwide DAB only after TV ASO (in VHF band) FM (Main sites) 5
6 1. Radio market dynamics Digital Radio is efficient (2/2) Audio delivered via DAB+ Programme information delivered via broadcast or IP Slides DLS and SLS text delivered in DAB+ broadcast service (PAD) inc inc URLs logos delivered via broadcast or IP Additional features, interactivity and content delivered via IP 6
7 1. Radio market dynamics FM and DR markets are correlated (1/3) Thai FM Band (87.0 to MHz) Congested Congestion is Severe or High mainly in central, north and east Due to the high number of local FM stations (~ 5,500) Without local FM, the 313 main FM stations are interference free 7
8 1. Radio market dynamics FM and DR markets are correlated (2/3) Thai radio industry under pressure Radio revenues stable (at best) and competition increasing: o Already an extreme high number of FM broadcasters (> 5,500) o Radio streaming services from (foreign) OTT providers Broadcasters turning to IP streaming as an alternative to FM: o To get a better reach due to poor FM coverage o To increase the number of services o To reach larger audiences without regulatory costs Interference free PI reception Interfered Households Portable Indoor (PI) Coverage 1 1 8
9 1. Radio market dynamics FM and DR markets are correlated (3/3) Improved FM revenues needed to invest in Digital Future 9
10 1. Radio market dynamics Digital Radio is not only IP (1/2) Internet s listening share is limited compared to (digital) broadcasting platforms, even in Broadband countries Building up an digital listeners base, can not be done without a broadcasting platform (FM, DAB or both) Digital Listening Shares UK (1) All Listening Shares Norway (2) DAB FM DAB Internet Internet (1) ITU ICT Development Index (2016) global ranking: 5 (2) ITU ICT Development Index (2016) global ranking: 9 10
11 1. Radio market dynamics Digital Radio is not only IP (2/2) Digital Listening Shares Australia 11
12 2. ITU/NBTC joint DR projects Overview of key deliverables Key deliverables 12
13 2. ITU/NBTC joint DR implementation Overview of key deliverables Nov 2013: Spectrum options ❷ Feb 2014: Roadmap report ❹ Feb 2015: CAPEX model Oct 2016: Deployment strategies ❶ ❺ Feb 2014: Service requirements ❼ Oct 2015 DAB Trial FP Oct 2016: NPV model ❻ ❸ Dec 2014: Network architecture ❽ Jan 2016: Initial National FP Nov 2016: Auction report Policy & regulations work Frequency planning work Nov 2016: Trial report 13
14 2. ITU/NBTC joint DR projects ❶ Spectrum options DAB Trial to protect ATV Adjacent channel interference to be avoided CH 12 not available for DAB in Thailand 14
15 2. ITU/NBTC joint DR projects ❷ DR Roadmap report Two frequency planning scenarios & targets Trail Frequency Plan Item Scenario 1 Scenario 2 Description Plan A All VHF Band III on air (and protected) Plan B All digital situation ASO VHF Band III Pop coverage city 95%, including target 11 cities # national MUX Up to 3 Up to 4 # national audio 3x(18 or 9)=54 4x(18 or 9)=72 services to 27 (1) to 36 # local MUX None 4 # local services None 72 to 36 in 39 local areas (1) Multiplex total bit rate = 1152 kbps, bit rate per Service license between 64 and 128 kbps Initial National Frequency Plan 15
16 2. ITU/NBTC joint DR projects ❸ Network architecture national and local layers (1/2) 16
17 2. ITU/NBTC joint DR projects ❸ Network architecture detailed design (2/2) Contribution network feeds Full System LMTS 4 redundant EMUX pairs EMUX EMUX controller controller EMUX controller Ensemble Ensemble and and Ensemble data data multiplexer multiplexer and and data data multiplexer (main) (main) (main) A Quad EDI Monitor EDI EDI SW SW EDI SW A B Tx A Quad EDI Monitor IP SW A National Distribution satellite transceiver (main) Local Area microwave link (main) Telco VPN Redundancy switching link Ensemble Ensemble and and data Ensemble data multiplexer multiplexer and and data (backup) multiplexer (backup) (backup) B EDI EDI SW SW EDI SW B IP SW A Local Area microwave link (backup) EDIM monitors all 4 local ensembles Quad EDI Monitor EDIM monitors all 4 national ensembles Quad EDI Monitor National Distribution satellite transceiver (main) 17
18 2. ITU/NBTC joint DR projects ❹ CAPEX model (1/2) Total $1,402,000 Encoders redundant SP controller services Price / encoder Price / # SP Service Provider # services/sp # mux pcs instance pcs Price / SP pcs instance pcs Price / IP RS pcs Price / SP pcs Price / SP pcs /mux Price / SP $6,000 $0 $5,5k $ 12k $3,000 $3,200 $900 $0 4 National (large) 4 32 $192,000 4 $0 4 $32,000 8 $24,000 4 $12,800 8 $7,200 4 $ National (small) $672, $0 28 $154, $168, $89, $50, $ $864, $0 32 $186, $192, $102, $57, $0 PAD server CAPEX National studios IP Router/Switch (VPN) redundant Installation & Comm. Encoders/PAD Installation & Comm. VPN redundant Training Encoders/PAD National & Local Studios Total head end National distribution CAPEX Local head ends IP Router/Switch Ensemble/data MUX E MUX controller National service (+ National service (+ $18,024,800 $2,743,600 (VPN) NMS traffic) satellite NMS traffic) satellite TX/R Dish redundant redundant redundant redundant redundant NMS (per monitored # MSTS & Set of Racks GPS/NTP server Installation & Installation & Installation Price / instance & / No break power Training MUX & NMS # head end # mux services pcs Price / RS pcs Price / mux pcs pcs Price / TXR pcs Price / Dish pcs mux pcs site + installation) & mounting parts Commissioning VPN Commissioning Commissioning supply (UPS) Price /mux 6 kva /mux $12,000 $28,500 $15,350 $20,000 $10,000 $2,000 $9,500 redundant MUX/controller Satellite 38 Local $912, $8,664, $2,333, $1,520, $760, $608, $2,888, $0 redundant 0 $0 0 $0 redundant Sub Total Price / site + Price/ headend Price / NTP / Price / Head Price / Head Price / Head Price / Head pcs $20k pcs pcs head end pcs end pcs end pcs end pcs end pcs Price / NO $1,000 $3,000 $8,000 $3,600 $17,000 $5,000 $6,000 $0 502 $522, $114, $608, $273, $646, $190, $456, $0 EDI Monitor EDI Switch National & Local Head ends $522, $114, $608, $273, $646, $190, $456, $0 Total $60,705,400 MW pair IP Router/Switch (VPN) racks for VPN & MW UPS 6 kva (incl. Installation) Distribution National & Local Power Generator 50 kva Installation & Commissioning MW Installation & Commissioning VPN Distribution Total # sites 502 redundant redundant redundant # SS tower & facilities SS tower & facilities redundant Guy tower & facilities Price / Headend Greenfields (60m) (120m) (120m) ground space 5 pcs Price / pair pcs Price / RS pcs pcs Price / UPS pcs Price / Gen pcs Price / site pcs Price / site rai # of non main sites $20,000 $3,000 $1,000 $6,000 $35,000 $15,000 $ $18,520, $2,778, $463, $5,556, $17,570,000 Price / 463 $6,945,000 Price 926 / $833,400 pcs tower pcs tower pcs Price / tower Totals 926 $18,520, $2,778, $463, $5,556, $17,570,000 $100, $6,945,000 $300, $833,400 $40, $ ,040, $0 0 $0 201 $8,040,000 18
19 2. ITU/NBTC joint DR projects ❹ CAPEX model (2/2) Total $497,776,900 Transmission National & Local DAB Transmitters (incl. Cooling, GPS) kw kw kw kw redundant redundant redundant redundant TX installation & commissioning Tot Tot Tot Tot pcs Price / TX ERP / pcs Price / TX ERP / pcs Price / TX ERP / pcs Price / TX ERP / Price / grp of sites Type Antenna of sitesystem 10 # Antenna sites tot system # mux/site 20 Antenna system $151, site $132,000 site $80,000 site Antenna $35,000 system site 7% 50 kw ERP Combiner system kw total power (side kw 0 total power 8 (side 0 kw total power $0 Antenna 0 system 100 Antenna system 200 Antenna system 400 installation & $0 (including installation) 25 kw ERP mount) 0 mount) 8 (panel) kw total 0 power (panel) kw $0 total power 0 (panel) kw total power (panel) Commissioning $0 10 kw ERP $108,000, $7,560,000 5 kw ERP $0 0 $0 2 kw pcs ERP Price / system pcs 130 Price / 8system pcs Price / system pcs Price / system pcs Price / system pcs Price / system 1170 Price $40,950,000 / grp of sites 16 pcs $2,866,500 Price per port 1 kw ERP $40, $55,000 $140,000 $140,000 $193,000 $193, % $69,930,00025% 8 $4,895,100 $37,500 Training Antenna Gapfiller 0 $0 0 $0 0 $0 0 $0 0 $0 EDI 0 monitor $0 TX monitor $0 Training 0 TX system $0 0 $0 0 Totals$0 0 0 $0 0 0 $0 $ $0$108,000, $0 $110,880,000 $0 0 $15,321,600 $0 redundant 0 $0 0 $0 0 $0 150 $21,000,000 0 $0 0 $0 /transport $4,200, Price $50,625,000 Price 0 $0 0 $0 0 $0 0 $0 0 $0 pcs 0 stream $0 pcs Price $0/ mux pcs 0 (USD)/NO pcs $0 (USD)/NO 0 $0 130 $7,150,000 0 $0 0 $0 0 $0 0 $2,150 $0 $7,750 $1,787, $10,000 $43,875,000 $3, $8,880,000 0 $0 0 $0 0 $0 0 $0 0 0 $0 $0 0 $2,220,000 $ $400,000 $74,925, $120,000 0 $0 0 $0 222 $8,880, $7,150,000 0 $0 150 $21,000,000 0 $ $5,160,000$ $4,200,000 $9,300,000 $4,007, $169,425,000 0 $0 0 $ $4,472, $8,060, $7,636, $13,764,000 Transmission 8032 $17,268, $31,124, $400, $120,000 DAB CAPEX Dashboard Pop coverage Frequency Plan Theoretical 95% 61,750,000 CAPEX / Nat. SP CAPEX / Local SP Total # sites 502 parameter should be "LS Trial" when Trial Studio equipment $43,813 $40,500 Number of National MUX (layer) 4 NATIONAL layer LOCAL layer Number of Local MUX (layer) 4 parameter should be "0" when Trial CAPEX / MUX CAPEX / MUX / LA Number of Local areas 39 parameter should be "0" when Trial Head end $253,150 $118,496 Distribution $8,221,925 $194,569 Number of audio services in national ensemble 18 Transmission $62,222,113 $1,595,439 Number of audio services in local ensemble 18 parameter should be "0" when Trial Total $70,697,188 $1,908,504 % greenfield sites 40% parameter should be "0" when Trial Total CAPEX Nat local $282,788,750 $297,726,550 49% 51% National Local Total CAPEX $580,515,300 Redundant encoder yes yes check = ok Redundant multiplexer yes yes Network CAPEX/per pop covered $1.145 $1.205 Redundant distribution yes Redundant transmitter yes Output No Rule Worksheet 1 IF [Encoders] are selected redundant THEN [IP router/switch] AND [Installation] are made redundant 2 IF the [MUX] is selected redundant THEN [IP router/switch] AND [EDI monitor] are made redundant 3 IF the [MUX] AND [Distribution] are selected redundant THEN [EDI switch] AND [UPS] are made redundant 4 IF [Distribution] is selected redundant THEN [IP router/switch] AND [UPS] AND [Installation] are made redundant 5 IF [Distribution] is selected redundant THEN [EDI monitor] are made redundant National Studios Local Studios National Head end Local Head end National Head end Local Head end Distribution Transmission Dashboard Redundancy rules 19
20 2. ITU/NBTC joint DR projects ❺ Deployment strategy (1/2) Advertising income (ADEX) Industry funding Service licensees Incumbents (e.g. RTA, MCOT, PRD) Pay for capacity (regulated network rental fee) 3 rd party broadcasters (e.g. GMM, RS, BEC, ICN) Trial seed funding Network licensee Incumbents Network Operator JVC Pool (Others) Facility licensees Incumbents Pay for facilities (subcontracted by JVC) Others 20
21 2. ITU/NBTC joint DR projects ❺ Deployment strategy (2/2) Option 1: JVC members get Package by Invitation + JVC closed Service licensees (SL) e.g. 50% of capacity + 100% JVC JVC members e.g. 50% of capacity Pool (Others) Option 3: as option 1 or 2 but Package assigned by Public Tender Package Network licensee (NL) JVC members MUX 1 MUX 2 Option 2: JVC members get Package by Invitation + later JVC open to Pool Service licensees (SL) Package e.g. 50% of capacity + 50% JVC JVC members e.g. 50% of capacity + 50% JVC Pool (Others) Network licensee (NL) JVC members + Pool members MUX 1 MUX 2 21
22 2. ITU/NBTC joint DR projects ❻NPV model $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $ Ref. # sites Pop % # MUX # SPs Total CAPEX NPV total market NPV / Nat. SP NPV / Local SP N % $84,702,880 $190,502,461 $10,583,470 NA N % $37,973,880 $266,538,766 $14,807,709 NA N % $131,831,770 $67,201,171 $2,488,932 NA N % $59,252,770 $204,157,121 $7,561,375 NA NL % $146,869,070 $434,513,538 $6,710,995 $1,149,838 NL % $74,290,070 $297,557,588 $11,411,848 $1,000,720 ADEX FM&AM Radio ADEX DAB Radio ADEX Internet Radio DAB Revenues/ADEX NPV scenarios 22
23 2. ITU/NBTC joint DR projects ❼ Trial DAB FP Interference analysis DAB>ATV Interference analysis ATV>DAB 23
24 2. ITU/NBTC joint DR projects ❽ Initial National DAB FP # Numb er of sites Example network topology ERP DTTB topology All sites 10 kw, except Bangkok 20 kw DTTB topology plus 29 additional sites DTTB topology plus 54 additional sites All sites 10 kw, except Bangkok 20 kw All sites 10 kw, except Bangkok 20 kw Mean ERP per site Household coverage Remaining HH to reach 95% Household coverage % kw 21,291, , % kw 21,863, , % kw 21,978, , % DAB coverage with 171 DTTB sites Additional sites to complete coverage to 95% 24
25 3. Key lessons learned 25
26 3. Key lessons learned (Thailand) 1. DR business case is harder to make viable and a long term strategy is needed 2. FM broadcasters have started to go digital with IP streaming and DR is lagging behind 3. FM congestion needs to be resolved to improve broadcasters earnings so that they can invest in their digital future 4. Industry collaboration is critical in keeping costs down and marketing DR effectively 5. DR planning and implementation last long and regulations may need to be reviewed 26
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