DVB-S2 Standard Ratified by Europeans; Good Timing for Satellite HDTV

The original DVB-S specification, a cornerstone of the digital TV business, was locked in around 1996. “Since then there has been a realization, largely coming from the U.S. broadcast market, that this might be the point in time for DVB-S to upgrade,” said Peter MacAvock, exec. dir. of the DVB Project, an industry-led consortium pushing the standard. Formal ratification of DVB-S2 is “good news for satellite broadcasters,” said MacAvock. Because manufacturers didn’t wait for a formal ratification to begin DVB-S2 product development, the standard “made it to market in time for the big HD launches, and the view now is that the DVB-S2 industry following will hold sway over any alternatives,” said MacAvock: “We've already seen significant announcements from major broadcasters due to launch HD services this year and there will be more to follow.”

The impetus behind DVB-S2 is largely incorporation of MPEG-4 technology and the rollout of HDTV in the U.S., said analyst Steve Blum of Tellus Ventures Assoc. The new DVB-S2 standard allows a 30% capacity increase over DVB-S, which satellite broadcasters need in order to maximize bandwidth efficiency for more channels and bandwidth- hungry HDTV service. Industry analysts have said that without more spectrum or better use of existing spectrum, satellite simply won’t be able to deliver the amount of HD programming needed to stay competitive with cable. Satellite operators “need all the help they can get to get value from transponder space,” said MacAvock: “And I would go so far as to say you're likely to see a very small number of DTH services launched henceforth on DVB- S.” But analysts also said DVB-S2 won’t be the tail that wags the dog. DVB-S2 won’t push HDTV to market “by itself” but, combined with higher order compression technology like MPEG-4, “it makes for a pretty powerful combination,” said Carmel Ortiz, senior partner at Skjei Telecom, a high tech consulting firm.

In the U.S., major strides are being made in DVB- S2/MPEG-4 implementation. Blum said both DirecTV and EchoStar plan to switch to MPEG-4 this summer. DirecTV has been the most open about its progress. Analysts were unaware of EchoStar’s specific plans. DirecTV showcased MPEG-4/DVB-S2 at the 2005 Consumer Electronics Show in Jan., which the company has said it will use to expand its video offering when it launches hundreds of local and national HD channels later this year and in 2007. The HD expansion will be via 4 new Ka-band satellites carrying 1,500 local and 150 CONUS HDTV channels, 2 of which will be launched early this year. Sea Launch officials said Mon. the Boeing-built Spaceway F1 is undergoing preparations for an April 26 launch. DirecTV has said it will continue to use MPEG-2 for standard definition broadcasts and eventually will convert all existing HD customers to the new technology.

If DVB-S2 and MPEG-4 allow the Spaceway birds to provide retransmission of all local TV signals in HD -- almost unthinkable 10 years ago -- it will “eliminate one of the big question marks about the shape of the multichannel television over the next decade,” said John Hane, pres. of Highcast Network. And the standard “might even last us another 10 years,” said Blum. According to Ortiz, the DVB Project claims DVB-S2 is very close to the “Shannon Limit” of maximum bandwidth efficiency, “so there will likely not be a successor to DVB-S2, which should encourage widespread deployment without fear of technology obsolescence.” Adoption of the standard by the high- volume DBS market also should drive down DVB-S2 receiver costs for all industries. The price “could drop as fast as the original DVB-S chip did,” said MacAvock.

Abroad, the Chinese Ministry is investigating launch of DTH service in China using a DVB-S2 backbone, MacAvock said. In other countries, incorporation of the standard is being driven more by the potential for greater channels using less bandwidth than HDTV rollout, said Blum, but one needs only to look at the Middle East to gauge a DVB standard’s social significance. “One of the biggest factors in what’s going on there is satellite TV,” said Blum. Al Jazeera is the best-known channel in the U.S., but people can access hundreds of other channels thanks to the common DVB-S standard. “All they have to do is buy a box that is compliant, and usually people can even figure out how to receive encrypted signals,” Blum said.

DVB-S2 also will make systems significantly more powerful in transferring IP traffic, officials said. The ESA consortium initiative, led by Norwegian equipment supplier Nera, will develop a DVB-S2 modem and verify that DVB-S2 can be used in DVB-RCS networks. Using this research, the ESA said, it hopes satellite systems will be able to follow the pattern seen in terrestrial networks, where bandwidth availability rises while prices drop. “Internet access as well as a wide range of other broadband applications over satellite will be even more price-competitive and become a commercial option for an even larger part of the world,” said Stig Are Mogstad, CTO at Nera. The Nera-led European consortium will consist of EADS Astrium, Hispasat, TurboConcept, German Aerospace Center and Frauhofer IIS Research Institute.