21. 11. 2012

ANEM ROUND TABLE ON DIGITALIZATION

Deeming that establishing communication and building cooperation with the competent authorities in implementation of digitalization, which was lacking in this process so far, is in the best interest of broadcasters as future providers of media services, ANEM organized, on November 21, 2012 in Belgrade, a round table entitled "Cooperation between different actors in resolving the challenges of the digitalization process". The aim of the round table was to gather all the relevant actors in the process of digitalization and to define, through constructive dialogue, all the issues important for the further unobstructed implementation of the process, so that the disputable ones could be addressed timely and jointly, respecting the interests of all participants in the process. In addition, this meeting was the opportunity for broadcasters to obtain information from the competent authorities on what was done so far, what was yet to come, what were the roles, tasks and responsibilities of all participants in the process, what problems and challenges were identified, as well as what was the currently available data on technical requirements and costs of broadcasters, as well as on other aspects of the implementation process important to them. At the same time, the broadcasters were given the opportunity to voice their suggestions, expectations and requests to the authorities regarding this process. The event was attended by over 60 participants, namely representatives of all competent authorities and regulatory bodies, all national broadcasters, including public services (RTS and RTV), as well as many regional and local TV stations, representatives of the media and journalists' associations, media experts and other stakeholders.

Presentations of panelists:

Stefan Lazarevic, State Secretary at the Ministry of foreign and internal trade and telecommunications - the transition from analog to digital broadcasting of TV program has to be accelerated, with the cooperation of all the participants in the process, having in mind that only 2.5 years was left until the deadline for its completion - June 17, 2015, but only  15-20% of the planned activities was done so far; the reason for this situation was the lack of cooperation and coordination of relevant institutions and the lack of communication with other stakeholders, especially with local and regional broadcasters; Lazarevic stressed the necessity and importance of working together with broadcasters, who had experience and knowledge, as well as the mutual cooperation of all stakeholders for the successful completion of the transition to digital broadcasting of TV program as an assumed international obligation of Serbia; he also said that the realization of the process ought to be predictable, with realistic deadlines that would be respected; in the first 100 days of its work, the Serbian Government had adopted the Allocation Plan, under which the digital dividend (part of the spectrum that will be freed after digitalization) would be intended for the development of broadband internet, which would provide for an advancement of rural areas, which was in fact the key to the development of economy and society; however, some other key documents were missing, e.g. Network Project, being the most urgent, much like the Law on Electronic Media, which was essential for this process.

Dragana Curcic, Assistant Director of Public Company "Broadcasting Equipment and Communications" (ETV), spoke about the role and responsibilities of ETV in this process and regulatory framework for the implementation of the process; as of March 21, 2012, PC ETV has started digital broadcasting of television programs in the initial network, whose parameters can be found on ETV website; this low-strength simulcast is free of charge in the 2012, while, according to Curcic, further costs of simulcast would need to be borne by broadcasters involved in it; she pointed out shortcomings of the existing regulation and the lack of concrete solutions to many important technical issues, as difficulties and challenges in the process of digitalization; she emphasized that, for the entire process to be successful, it was necessary to secure, above all, clearly defined regulation, funds, professional and efficient management of the process with specifically delegated implementer, cooperation of all participants and finally, the responsibility for success or failure of this process; according to her, the coverage area of national commercial broadcasters will be the same as those of ​​public services, which will mean higher costs for them; she pointed out that the programs of local services would be broadcast in the second multiplex, with high strength, which would create a problem of local broadcasters stepping into the space of ​​regional broadcasters, as well as higher prices for local broadcasters.

Milan Jankovic, Ratel Director, said that the Agency had warned before of the necessity to speed up the process of digitalization, reminding that the state had assumed this responsibility back in 2006; according to him, the process of digitalization will be implemented in phases, as there are no free frequencies for the full transition at one go; he also reminded that at the beginning of 2012, there were 154 television stations, 5 national, 6 frequencies were allocated in Belgrade, one in Vojvodina, 27 regional and 115 local; Law on Electronic Communications was adopted on an urgent basis because of digitalization, but it was also necessary to pass a new Law on Electronic Media, to resolve various issues and concerns, such as the issue of broadcasting licenses, which were to expire in 2014, as well as the validity of radio licenses by June 17, 2015; it is necessary to complete the Network Project and technical-economic analysis in the next three months, as well as to define the costs of the process, the equipment that should be purchased, tasks to be accomplished; good aspect of the process is the fact that at least a high-quality standard has been selected; Jankovic said that Ratel was ready to take on all its obligations and fulfill them, but that it was necessary to resolve all arguable issues.

Milos Stojkovic from ANEM Legal Department - current broadcasters will no longer be holders of the radio frequency: they will be responsible only for the content of program production and for the delivery of signal to specific locations, from which the program would be then broadcast; it is necessary to pass the Law on Electronic Media that would regulate relations between broadcasters and operators, who will provide technical broadcasting services; also important are the issue of conversion of licenses, issue of varying validity of licenses (some are valid even after June 2015), which puts broadcasters licensed until 2014 in a disadvantaged position; broadcasters must be provided, as soon as possible, with at least general information on the costs they would be obliged to pay as well as the amount of fees to be paid to the state; if the fees are to be too high, and if the costs of digitalization are to fall on the broadcasters, it could surely bring the survival of local and regional media to question, but which will reflect on the entire system of digital broadcasting; transparency and cooperation, communication and coordination between all actors, including broadcasters, is a necessity.

Miloje Nesic, Head of broadcasting equipment and telecommunications at Prva TV, elaborated on technological aspects of the digitalization process, current analogue network in Serbia, new technologies and platforms, lack of communication between the actors and the need for changing that so that the whole process would be successfully completed; Nesic stressed that it was necessary to: adopt the Law on Electronic Media, but also a Rulebook, or a Law on Digital Television, which would take into account all the competitive technologies and new platforms, to define clear procedures and deadlines for additional analog coverage, define prices and other conditions for broadcasting in multiplex at the national, provincial, regional and local level, as well as to create conditions for the commercial multiplexes and market liberalization in the field of digital terrestrial broadcasting.

Following the panelists' presentations, present representatives of broadcasters and other stakeholders opened a discussion, noting that it was necessary to accelerate the implementation of the digitalization. They also emphasized the need for the cooperation of all stakeholders in this process, including the broadcasters, which was lacking so far; it was noted that, at the moment, there was a great number of challenges due to inadequate regulation and the lack of important technical decisions, as well as unclear roles and responsibilities of the competent authorities; that it was necessary to urgently develop the network project and convey the technical-economic analysis, to adopt the Law on Electronic Media that should resolve many of the contentious issues and take into account all the competitive technologies and new platforms; that the broadcasters needed to get specific information on the calculation of costs, important for their business planning, whilst the costs of digitalization should not fall solely on broadcasters, but they ought to be proportional to their benefit from the process of digitalization, which was far less than the one the state and mobile operators would have; ANEM requested, as one of the primary tasks, an extension of broadcasters' licenses whose validity would expire before the switchover to digital broadcasting of program, which was possible in line with existing regulation; ANEM also put forward a request for establishing clear criteria for license renewal, with mandatory participation of broadcasters; ETV emphasized that, unless something was changed in the regulations, the digitalization would be excessively costly process for broadcasters, that ETV operated in line with market principles and that it was not in a position to predetermine prices, but that the company would strive to be competitive with other platforms; representative of the Ministry of Culture and Media said that the ministry would complete all tasks on time, that it was currently working on a set of media laws, including the Law on Electronic Media, which should be put to public discussion in spring; a representative of the RBA noted that the agency was ready to engage in a process of digitalization, in the part concerning content of the program, namely as soon as all previous technical issues were resolved; representative of Telekom made a suggestion to consider the possibility to deliver the signal to the ETV's head-end with existing networks of other operators, who could participate in both the distribution and the delivery of signal, which could result in the cost reduction; it was pointed out that this process should provide citizens with new services and better contents, instead of disregarding them, and that they should be given the opportunity to voice their expectations and needs; it was noted that the media should already start thinking about services that they would be providing to viewers, who should be the source of income that was much needed for the investments to pay off; however, in the current situation, when basic information about the parameters of specific technical and financial requirement were lacking, that was practically impossible.

This public event brought together all the relevant actors in the process of digitalization and facilitated exchange of information, opinions and views, which has not been the case until now. The general assessment of all present at the event was that ANEM had, by organizing this round table, created the conditions for establishing cooperation between various actors, emphasized as essential in the discussion in order to carry out the process of switchover to digital broadcasting of TV program on time and in a quality manner, respecting interests of all participants in the process.

Following this event, ANEM will submit its recommendations for the further implementation of the switchover from analogue to digital broadcasting to all stakeholders in the digitalization process, taking into account comments and conclusions brought in the discussion at the round table.