Study predicts UHF spectrum will fail

chris

A study commissioned by the European Broadcasting Union has stated that there are sound economic reasons as to why a market for the imminent UHF spectrum would fail.

The report, from Oliver & Ohlbaum Assoc., and DotEcon Ltd., states that auctions should be avoided as a result of terrestrial TV generating major public value for society, value that would not be seen in any alternative contest for spectrum with other uses. The report also recognised the fact that terrestrial TV cannot be easily replicated through the provision of TV by other platforms.

The report warns regulators that the medium-term value which could potentially be fashioned by alternate uses of UHF spectrum, including rural broadband, appear to be ‘modest’.

The problem seems to be that Europe’s main terrestrial broadcasters are funded either by ads, publicly or a mixture of the two. The report stated that although these funding models do deliver high public and consumer value, the broadcasters are less able than alternative service providers to unswervingly ‘monetise’ the consumer relationship.

The report also cited that the idea that €millions expected to flow from the mobile community for a potential auction is in fact unlikely and that, in reality, a further look into the business case behind deploying mobile networks in UHF spectrum reveals the lack of substance behind these claims.

It went on to state that the case for mobile rural (wireless) broadband is feeble with cellular and other potential broadband devices positioned in the UHF space causing noticeable interference.