The FINANCIAL — Georgia has the international responsibility to move to digital broadcasting by 17 June, 2015. The transmission processes are quite lengthy and complicated.
The FINANCIAL — Georgia has the international responsibility to move to digital broadcasting by 17 June, 2015. The transmission processes are quite lengthy and complicated.
Therefore the country has to start a “simulcast” period (where both analogue and digital broadcasting will be transmitted at the same time) as soon as possible to manage to accomplish everything in time. The more the process is delayed, the more problems will occur after switching off the analogue broadcasting.
The whole world is involved in this process. Several countries have already moved entirely to digital broadcasting, while lots of them are in their simulcast period.
The Ministry of Economy is responsible for drafting a plan and strategy for TV digitalization and simulcast in Georgia. But they have remained silent up till now. Irakli Chikovani, Chairman of the GNCC and Tiko Tkeshelashvili, Head of the Strategic Planning Department at GNCC, talked to The FINANCIAL about the digitalization process and the problems involved.
Q. Why is the process starting so late in Georgia?
Irakli Chikovani: We aren’t responsible for these processes. The Ministry of Economy has to develop a strategy and create legislation for this. The strategy which we have presented is only our proposal and the Ministry of Economy may not take it into consideration at all. We have worked a lot, but for the moment we can’t go any further. Now we are waiting on the Ministry, for it to provide its official strategy and the new legislation. We have to meet with the representatives of the Ministry and exchange our ideas with them.
Q. Moving to Digital TV is an international obligation and inevitable process. What kind of advantages does it provide viewers with? What will it change for them?
Irakli Chikovani: First of all, viewers will get significantly improved sound and picture. The number of potential channels will grow significantly and this will support an increase in competition. Increased competition will result in better content which is of course an additional advantage for viewers. Frequencies could be used more effectively. These are all clear advantages as viewers are not at all interested in how they get their TV signal.
At the same time, digital transmitting is more energy efficient, which is good for the state budget.
Q. How do you see the issue of TV licensing. Till now this process has been very limited. Why?
Tiko Tkeshelashvili: First of all the state has to form the relevant legislation. Only after this will we be able to issue licenses for digital TV.
As for analogue broadcasting, to place content in the open air a license is necessary in which content is linked with frequency. But in more developed countries the licensing of content and frequency are separate processes.
At the moment almost all frequencies are in use. To give a license for analogue TV we need confirmation from the International Telecommunication Unity (ITU) as well as our neighbour countries. But now that the digitalization process has started in the whole world, analogue licensing is not prioritized. We need frequencies for the simulcast period to transmit several digital channels. So for the moment the possibility of getting a license for an analogue channel is very low and does not only depend on us. We recently had an application for licensing an analogue frequency. We sent a request to ITU but they haven’t confirmed it. Our neighbours have to confirm it as well but it has less chance because they are missing the frequency which can be used for digital TV in the simulcast period. Currently we are protecting all the analogue channels we have, but after 2015 we won’t be able to do that anymore.
Q. How are licenses for internet broadcasting issued?
Irakli Chikovani: Internet broadcasting doesn’t need a license. All it needs is authorization. This is a very simple process. The application can be filled out online. Internet broadcasters just let us know that they are doing it, nothing else.
Cable broadcasters needed licensing before, but now they also only need authorization.
Q. How do you see the licensing of digital broadcasting?
Tiko Tkeshelashvili: There are three options including competition, auction and direct sale. All of them are well-accepted practices in European countries. Now we are waiting for the Ministry of Economics to approve any of them. In my opinion, first of all content and frequency licensing should be separated. Creating and distributing TV content should not be linked to any platform. Licensing a frequency has to become the responsibility of an electronic communications department. I hope that this will be changed in digital TV licensing. The obligations which a frequency owner will have should be determined as well.
Q. What are the main difficulties for commercial TV channels in the digitalization process?
Tiko Tkeshelashvili: The main difficulty is the high cost of digitalization. Commercial channels have to change the whole network, which is associated with quite significant costs.
Q. How much does the building of one network cost? Do commercial channels finance the whole process themselves or does the state support them financially?
Irakli Chikovani: I can’t give an exact number. It depends on several important factors including the equipment’s quality as well as coverage area. Building one multiplex (network) costs no less than USD 8-9 million though.
Tiko Tkeshelashvili: Commercial channels finance it themselves. It is a totally private business. The state may finance or co-finance simulcast. But they finance only the transmitting signal in the network. During simulcast TV channels have doubled expenses as they have to transmit both digital and analogue signals. So the state supports them financially.
Q. There are ten broadcasting areas in Georgia. Is the country divided reasonably? Will they be changed?
Tiko Tkeshelashvili: In terms of geography it is not a very reasonable division. But ITU has done it and we can’t change it. Any changes now can only be slight.
That said however, digital broadcasters will have the possibility to be available in any amount of broadcasting areas they want. This will be more convenient for regional broadcasters.
Q. Will people have to change their television sets or buy any special new equipment?
Irakli Chikovani: Changes will only affect the people who are getting a Free to Air TV signal. They have to have special receivers. But the state may put subsidies toward this and provide a receiver at least for socially unprotected families. Households that receive signal via cable or satellite won’t have to change anything. They will just receive a digital signal instead of its analogue, without the need for any changes.
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