| The future use of UHF spectrum : The truth about the mobile* myth |
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Study shows that consumers will not reap the benefits if letting the market decide.
Brussels, February 27th, 2008. There are sound economic reasons why a market for UHF spectrum is likely to fail, according to a study published today by Oliver & Ohlbaum Associates Ltd and DotEcon Ltd. European broadcasters** call upon decision-makers to be cautious when they take decisions on the future use of spectrum. According to the study, if there is competition for access to spectrum, the significant public value of terrestrial TV services***, will be ignored. In addition the balance and the strength of Europe's broadcasting and content creation industry would be damaged. The study shows that consumers will lose, if spectrum allocation for terrestrial broadcasting is inadequate. The truth about the "mobile myth" is revealed in the study which demonstrates that, the value created by using UHF spectrum for non-broadcast services, would be modest, and that the economic case for two-way mobile services (e.g. mobile telephony) in the UHF band in Europe is dubious. There are already large amounts of non-UHF spectrum available to mobile network operators. The study underlines that the business case for using UHF to deliver rural broadband is weak. In particular because there are other frequencies available which could be used for optimal delivery of rural broadband. Broadcasters welcomed the study's**** recommendation that: "Individual national markets need a critical mass of digital terrestrial broadcasting to ensure a fully functioning, vibrant, universal broadcasting market". Note to Editors: * Mobile in this context refers to two-way mobile services, this does not include mobile broadcasting, which is one way transmission only **The following organisations are in the group of European broadcasters: AER, ARD, Canal+, EBU, France télévisions, Lagardère Active, ProSiebenSat.1 Media AG, RTL Group and VPRT. *** Digital terrestrial television is the fastest growing method of TV delivery across Europe and cannot be replaced by other systems **** The full study is available here
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