Draft Strategy

TRANSITION FROM ANALOGUE TO DIGITAL BROADCASTING IN REPUBLIC OF KOSOVA

July 2013

INTRODUCTION

Drafting of the Strategy

1.INDEPENDENT MEDIA COMMISSION (BROADCAST REGULATORY AUTHORITY IN THE REPUBLIC OF KOSOVA)

2.REVIEW OF THE SITUATION IN BROADCASTING SECTOR IN KOSOVA

TV channels

Radio channels

Broadcasting on Cable Networks

Broadcasting on IPTV Network & Satellite Platform

Media market

Media penetration in Kosova

3.BENEFITS FROM DIGITAL BROADCASTING

Improved utilization of frequency spectrum

Improved reception of the signal

Increase of television channels

Lower cost of broadcasting

New picture format

New services

I.REGULATORY FRAMEWORK

4.REGULATION OF DIGITAL TERRESTRIAL TELEVISION (DTT)

Functional description of the DVB-T2 transmitter chain parts

Multiplex service

Content provider

“Must carry” Rule

II.PROGRAM CONTENTS

Main Principles of Program Content

New technological forms

Programs of General Interest

Non-profitable audio-visual media services

Stimulated Programs – Fund for subsidizing of program contents

Regional and local audio-visual media services

III.TECHNICAL FRAMEWORK

Technical characteristics of the elements that compose digitalization

Standards of broadcasting and compression

Logical Channel Numbering (LCN)

Common interface

Electronic Program Guide (EPG) and Interactive Program Guide (IPG)

Radio frequency plan

National allotment: Kosova

Modification of existing assignments in Kosova

Spectrum issues in accessing the benefits of the digital dividend

Digital Radio Service T-DAB

Digital Dividend

5.THE PROCESS OF IMPLEMENTATION OF DIGITAL TERRESTRIAL TELEVISION (DTT) IN KOSOVA

Transition period

Analogue Broadcasting Switch-Off period (ASO)

6.LICENSING OF DIGITAL TERRESTRIAL TELEVISIONS (DTT)

Considerations during competition

Minimum coverage requirements and the dynamics for the establishment of multiplex service

IV.FINANCIAL CONSIDERATION

Financial cost for transition to digital broadcasting

Financial impact on broadcasters

Operating costs (electricity, maintenance, personnel, etc.)

Public Television (RTK)

Commercial TV stations

Financial impact for viewers

Funding Models / The role of state institutions

Subsidies for vulnerable groups of citizens

V.INFORMATION AND AWARENESS

7.ACTION PLAN FOR REALIZATION OF THE STRATEGY ON DIGITAL BROADCASTING

APPENDIX A - List of abbreviations

APPENDIX B - Co-channels allotments in the region (7, 31, 44, 46, 48, 58, 67)

  1. 1. INTRODUCTION

This document addresses theoverallprocessof the transition ofterrestrialtelevisionbroadcastingfromanalogtodigitaltechnologies. This document also addresses all stakeholders (such as industry, civil society, relevant state institutions, who in one way or another will be involved in the process of transition from analogue to digital broadcasting) and clearly defines the strategic directions, duties and timeframes.

Digitalization will provide the citizens of Kosova better receipt of TV signal, greater variety of content, more television programmes, new services for users with disabilities and for senior citizens, enhanced additional services, portable and mobile programme reception, as well as convergence of services. Digitalization will bring the options for service providers to adjust the programme content to the needs of different target groups, provide interactivity, the potential to provide services on demand and lower broadcasting costs.

The State will benefit from more efficient utilization of the radio frequency spectrum, from the exploitation of the digital dividend of the spectrum for implementing new services, promotion of technological development and new job opportunities, improved competition and more prospects for enhanced creativity and preservation of cultural identity.

In 2006, a new frequency plan for terrestrial television broadcasting was agreed at the Geneva RRC-06 Conference. The result of the conference are the Final Acts of the Regional Radiocommunication Conference for planning of the digital terrestrial broadcasting service in parts of Regions 1 and 3, in the frequency bands 174-230 MHz and 470-862 MHz (RRC-06) and two frequency plans; GE-06A for analogue and GE-06D for digital terrestrial television. Both plans are in use since 2006 but because both includes frequencies of the same spectrum, the analogue plan is protected by the digital plan. This means that while analogue broadcasters recorded in the main register are still in operation, the digital broadcasting in that frequency band can not be used. This protection is guaranteed until 17th of June 2015 when the transition period will end and the GE-06A plan will be abandoned. Therefore, the analogue terrestrial television networks should be upgraded to digital technology which will change the way that viewers receive the audio-visual media services in the future.

The results of the Agreement RRC-06 provide Kosovo with 8 channels (multiplexes) and 2 assignments but leaving almost half of the territory of Kosova out of coverage. The plan of 2006 should be modified to ensure full coverage for the whole territory. The Government of the Republic of Kosova shall take all the necessary measures to negotiate with International Telecommunication Union (ITU), specialized agency of the United Nations, for the membership of Kosova in this international organization. The modified plan needs to be coordinated with the neighbouring countries because the ITU requires consensus of member states for modification of the GE-06 plan. The process should be completed at the latest by the beginning of 2015.

Because of the technological changes, a new legal framework should be established. In the process of transition to digital broadcasting,many stakeholders should be involved– such as government, national regulator, audio-visual service providers and citizens, with the purpose of successful realization of this national strategy.

This strategy aims at creating the legal framework, the spatial frequency plan for digital television broadcasting, setting limits and minimum standards on the programmes and the proposal of socio-economic support to the Republic of Kosova citizens. Thus, the implementation of this strategy provides better quality and efficient broadcasting of television and other audio-visual contents of great value for end users.

In the Republic of Kosova, the strategy for transition from analogue braodcasting to digital broacasting is prepared by the IMC and will be adopted by the Government. A law on digitalization is draftedunder the management of the Ministry of EconomicDevelopment (MED).

The new law on digitalization shall regulate the method and conditions for digital terrestrial broadcasting, the procedures for switch over from analogue to digital broadcasting, planning, development and using of networks, the right to multiplex access for digital terrestrial broadcasting and other matters of importance for digital broadcasting. The law should have provisions for switch off process of analogue broadcasting and transition to digital terrestrial broadcasting and provisions on the rights and obligations during the switchover period (ASO). The purpose of new regulation should be to maintain the efficient use of radio frequency spectrum pursuant to international and national legal acts for electronic communications, audio-visual media services with available technological options. Legal provisions which regulate the field of electronic communication (Law on electronic communication) and media (Law on IMC) should apply accordingly to the matters relating to digital broadcasting.

The Law on IMC has been amended and as a new one has entered into force on April 2012. The competences and the power of IMC remains the same. The new structure consists of the members of the Commission, the Executive Office and the Appeals Board.

Drafting of the Strategy

Working groups led and financed by the Independent Media Commission (IMC), the competent institution for the regulation and management of broadcasting spectrum and licensing of audio-visual media services in the Republic of Kosova, have worked on drafting this strategy.

For this purpose, the IMC Commission established five working groups:

Working Group on Legal Issues;

Working Group on Program Content Issues;

Working Group on Technical Issues;

Working Group on Social-Economic Issues; and

Working Group on Information and Awareness.

The working groups were composed of different members representing different institutions and stakeholders. All working groups were chaired by IMC members. Their meetings started in August 2010. Based on the data provided by the IMC, but also by local and international experts, drafted specific parts of the strategy, such as: Regulatory Framework, Content/programming principles; Technical Framework; Economic and social feasibility andthe Plan for Public Information.

  1. INDEPENDENT MEDIA COMMISSION (BROADCAST REGULATORY AUTHORITY IN THE REPUBLIC OF KOSOVA)

The Independent Media Commission (IMC) was established by the Assembly of Kosova in 2005 as an institution responsible for managing and regulating the broadcasting frequency band and the licensing of public and private media. The work of the IMCis organized at the decision-making level (IMCCouncil), executive level (the Executive Office) and with the appeal level (the Media Appeals Board).

The Independent Media Commission is an independent body for regulation, management, and supervision of the broadcasting frequency spectrum. IMC regulates the rights, obligations and responsibilities of natural and legal persons that provide audio and audio-visual media services.

According to the Law on IMC no.04/L-44, IMCprepares the strategyforthetransitiontodigital broadcastingin the Republic ofKosova, aswellasother strategic documentsforaudio-visual mediaservices, for approvalby the Government.

  1. REVIEW OF THE SITUATION IN BROADCASTING SECTOR IN KOSOVA

TV channels

In Kosova, the television sector consists of 3 TV channels with national coverage and 18 TV channels with local and regional coverage. The public service broadcaster - Radio Television of Kosovo, first program (RTK1), broadcasts 24 hours a day, covering 62.7% of Kosovo’s territoryand 80% of the population, through terrestrial broadcasting. Whereas RTK 2, licensed by the IMC as program service provider for broadcasting program in the Serbian language, is on the testing phase and actually the signal of RTK2 is distributed only on cable networks. The two private broadcasters with national coverage, TV21 and Koha Vision (KTV), reach the same coverage as the RTK. All three televisionstations broadcast terrestrially and via satellite. Via satellite broadcast all three broadcasters cover the whole territory of Kosova.

The company named KTTN (Kosovo Terrestrial Transmission Network) performs broadcasting services for the needs of 3 national televisions (RTK, TV21 and KTV) and 4 radio stations (Radio 21, Radio Dukagjini and both public radio Radio Kosova 1 and Radio Kosova 2). KTTN was created as a part of a project financed by the USAID for Kosova Independent Media Project (KIMP), managed and implemented by IREX/Kosova. KTTN operates as shareholding company owned by RTK (25% of shares), RTV 21 (35%), KTV (35%) and the private national radio broadcaster Radio Dukagjini (with 5% of shares).

For the coverage with TV signal, the KTTN network consists of 6 broadcasting sites: Vneshta, Zatriq, Cernusha, Maja e Gjelber, Koliq and Kranidell.

The 18 regional and local TV stations:(TV Besa, TV Balkan, TV Dukagjini, TV Festina, TV Herc, TV Iliria, TV Liria, TV Men, TV Mir, TV Mitrovica, TV Most, TV Opinion, TV Prizren, TV Puls, TV Syri Vision, TV Tema, TV Vali and TV Zoom), operate using private broadcasting sites/networks and together they cover 68.14 % of the territory of the Republic.

Despite the fact that a considerable number of TV channels operate on terrestrial analogue network, there are regions of Kosova which have no access to their signals.

The major concern remains the Region of Dragash with a population of 33.584 Albanians, Bosnians and Gorans, which does not have access to the terrestrial signal of broadcasters with national coverage. By the previous law (Law No. 02/L-47) on the Radio Television of Kosova, the public broadcaster of Kosova (RTK) should have covered 90% of the population but for 13 years they managed to reach coverage of 80%. Many of the broadcasting sites which RTK should have used are out of function because of destroyed infrastructure and they were not rebuilt because of lack of financial means.

The major problem remains the neccessay broadcasting use of Golesh Peak. In fact, the upper part of this broadcasting site which is 1019m above the sea level (altitude) is used only for military purposes by KFOR forces. The lower part, which is 969 m above the sea level, has been allowed to be used only for FM broadcasters, four national broadcasters: two RTK channels (Radio Kosova 1 and Radio Kosova 2) and two commercial channels: Radio 21 and Radio Dukagjini, including here also conveyance of FM and TV signals for Zatriq.

If TV stations could broadcast from the upper site of Golesh Peak, the coverage on the whole territory of the Republic of Kosova would increase up to 90%. With the reactivation of this broadcasting site, also the Dragash region could be covered using repeaters.

Although the IMC has licensed a number of local broadcasters in Prizren and Dragash,there is no coverage with qualitative signal for the majority of citizens in this part of Kosova. The only way how the population of Dragash can ensure access to audio-visual media services is through satellite and cable platforms.

In Dragash there is only one cable operator, located in Restelica, through which the popullation of this region can watch national TV chanels and local TV channels of Prizren. Whereas, through satellite platform the RTK program, which is shorter than the program broadcast in terrestrial network, and programs of other TV channels of Kosova that broadcast their programs in satellite platform can be seen. It is alegal obligation of RTK to fulfil its public remit to cover the territory of the Republic of Kosova and ensure access to its program to all citizens of Kosova.

Besides Dragash, there is no qualitative receiptof the TV signal of RTK and the other commercial national broadcasters also in some parts of Mitrovica region (Skenderaj, Zvecan, Leposavic and Zubin Potok), of Podujeva region (Orllan), Kacanik, Hani i Elezit, and the Anamorava region (Pogragjë).

Out of 21 TV stations licensed by theIMC, three (3) belong to the category with national coverage, eleven (11) with regional coverage, six(6) with local coverage and one (1) with low power transmission. The current categorization is based on the location of broadcasting site and technical parameters.

Below is presented the current situation of audio-visual media services with respect to their coverage. The data used for the calculation of the population per municipality are based on the 2011 report of the Agency for Statistics of Kosova. New municipalities are not included as well as the data on the population of the municipalities of Leposavic, Zvecan and Zubin Potok are missing.

RTK (public service broadcaster, national category) covers 23 municipalities[1] with 1,503,916 inhabitants;

TV 21 (national category) covers 22 municipalities with 1,503,196 inhabitants;

KTV (national category) covers 22 municipalities with 1,053,196 inhabitants;

TV Besa (regional category) covers 5 municipalities with 426.009 inhabitants;

TV Dukagjini (local categories) covers 3 municipalities with 172.602 inhabitants;

TV Festina (local category) covers 2 municipalities with 135.978 inhabitants;

TV Iliria (local category) covers 1 municipality with 46.959 inhabitants;

TV Mir (regional category) covers 4 municipalities with 82.607 inhabitants;

TV Mitrovica (regjional category) covers 7 municipalities with 554.696 inhabitants;

TV Puls (regional category) covers 2 municipalities with 136.974 inhabitants;

TV Balkan (regional category) covers 3 municipalities with 292.867 inhabitants;

TV Tema (local categories) covers 6 municipalities with 296.677 inhabitants;

TV Zoom (low power category) covers 1 municipality with 90.015 inhabitants;

TV Herc (regional category) covers 10 municipalities with 375.916 inhabitants;

TV Liria (local category) covers 2 municipalities with 135.978 inhabitants;

TV Men (regional category) covers 3 municipalities with 172.574 inhabitants;

TV Most (local categories) covers 3 municipalities with 141.482 inhabitants;

TV Opinion (regional category) covers 5 municipalities with 426.009 inhabitants;

TV Prizren (regional category) covers 5 municipalities with 426.009 inhabitants;

TV Syri Vision (regional category) covers 6 municipalities with 360.797 inhabitants;

TV Vali (regional category) covers 2 municipalities with 136.974 inhabitants;

For the citizens of Kosova, television remains the most important source of information (85%). As a legacy from the past, Kosova is divided into 5 broadcasting regions: Prishtina, Peja, Prizren, Mitrovica and Gjilan.But, the media market remains dominated by the television stations based in Pristina, which broadcast nation-wide.

All TV stations licensed in Kosova serve to every ethnic community in their language: 14 broadcast in Albanian Language, Television of Kosova (RTK) broadcasts around 15% of its programming also in the languages of minorities, 5 televisions broadcast in Serbian Language and 1 in Turkish Language.

Radio channels

Four nation-wide radio stations, in the technical aspect are broadcast by KTTN: two public radios (Radio Kosova and Radio Kosova 2), and two private radios (Radio 21 and Radio Dukagjini). Whereas,79other local radio stations broadcast from their own networks.

All radio stations licensed in Kosova serve to every ethnic community in their language. Thus, 46radio stations broadcast in Albanian Language, 26 radio stations in Serbian Language, 3 radio stations in Bosnian Language, 2 in Turkish Language, 2 in Goran Language, 1 in Roma Language and 4 are multi-ethnic radio stations.

Broadcasting on Cable Networks

Cable television has spread fast in the last couple of years and it has increased the diversity of programmes and channels in Kosova, bringing to the public of Kosova programmes from the region, Europe and the USA.

Cable operators are licensed according to the regulation adopted by the IMC Council in 2007.Cable operators must submit an application forthe licence to provide TV cable services in Kosova, and they are obliged to carry RTK free of charge in their networks and in exchange, RTK is obliged to provide cable operators with the same programming that it broadcasts terrestrially. Cable operators must apply must-carry rule for all local/regional TV stations based on their coverage area. Cable operators are responsible for the technical maintenance of their networks and are required not to cause harmful interference with each other’s subscribers.

There are 17 licensed cable operators in Kosova: Ipko Telecommunications, and Kujtesa Net are cable operators with a national coverage and the other 15cable operators are local: Eagle (Prizren), Elektra (Hani i Elezit), TV Eho (Reçan), Progres (Sterpce), Eurina (Skenderaj), TV Net (Lubinje-Prizren), Link Produkcija (Gracanica), Dream (Dragash), Kumanova (Suhareka), Intersat (Drenas), KDS Telestar IC (Ropotova/Kamenica), NSH Drinia Net (Ratkoc), Elektroni (Zhur), EGC (Vllashne/Prizren), BB Herc (Shterpce).