The Philippines’ biggest broadcasting networks are busy upgrading their facilities to be able to deploy DTV services. ABS-CBN Broadcasting Corporation reportedly allotted one billion pesos (US$20 million) for the operation of a DTV broadcast facility. Since free-to-air (FTA) remains the dominant platform in the Philippines, it only makes sense to invest in upgrading FTA infrastructure to enable DTV deployment. Meanwhile, rival broadcaster GMA Network is also preparing to rollout DTV services, but it sees the shift from analogue occurring within the next two to three years. GMA says it has a pending application with NTC for the use of digital broadcast, and aims to convert its channel 27 UHF (ultra high-frequency) station to a DTV one. In a recent media briefing, GMA says the migration would cost an estimated investment of 35 million pesos – 22.33 million for the transmitter, 6.58 million for the antenna system, 3.34 million to finance the electrical support system, and 2.15 million to cover the cost of peripheral equipment. The rest of the amount will be used for tower improvements, commissioning and installation, and other electro-mechanical equipment. The network adds that the introduction of DTV will allow network operators to conceptualise new revenue streams that are not possible in analogue TV. Another network, the Associated Broadcasting Company (ABC), which operates the newly re-branded TV5 (joint venture with Malaysia’s Media Prima Berhad) is also conducting DTV test broadcast on UHF Channel 47. The management of ABC says it planning for digitalisation by the last quarter of 2010, way before the 2015 analogue switch-off. Digital broadcast will not only benefit the FTA platform; it will also allow the broadcast of multiple content to other devices with DTV receivers like laptops or even to handheld devices like mobile phones or personal digital assistant (PDA) units. However, the biggest stumbling block to fulfilling the Filipino broadcasters’ digital dreams may not be the upgrading budget, but the government’s delay in deciding which DTV standard to adopt. Initially, the European developed DVB-T was the standard of choice of the National Telecommunications Commission (NTC), the agency that oversees all telecommunication policies in the country. In 2006, the agency released a draft set of Rules and Regulations for Digital Terrestrial Television (DTT) Broadcast Service mandating the use of DVB-T as the sole digital terrestrial TV broadcasting standard for the Philippines. Section 2.1 of the draft Memorandum Circular states: “The Digital Video Broadcast – Terrestrial (DVB-T) standard shall be the sole standard in the delivery of DTT services in the country.” The DVB standard also got the nod from ASEAN countries, as Ministers endorsed DVB-T as the standard for the ASEAN member nations at the Ninth Conference of the ASEAN Ministers Responsible for Information (AMRI) back in 2007. However, current developments indicate that the DVB-T standard may not be the final choice in the Philippines after all. An NTC insider, who declined to be named, tells Television Asia Plus that there is currently intense lobbying from various groups to consider either the US-born ATSC, or the Japan-bred ISDB standard. Bong Osorio, head of corporate communications at ABS-CBN, confirms that the market is still waiting for the Philippine government to decide as to which standard the country will really adopt. He also reveals that ABS-CBN conducted DTV service trials in key areas in Central Luzon last month. One key benefit of DTV, says GMA, is that the transmission operating expenses per programme can be significantly reduced due to the efficiency of DTV transmission techniques that would result into less capital and operational expenses in the long run. But while these networks are ready to shell out huge funds to upgrade their facilities, the question remains as to whether or not the broadcasters would shoulder the cost of DTV receivers for households without DTV-enabled sets. ABS-CBN’s Osorio says the company is still planning for this aspect and will announce plans as soon as they are finalised. On the other hand, Felipe Gozon, president of GMA Network, says that migrating to digital may not be easy (for consumers) as replacement of TV sets and the additional set-top box for access to digital content may prove costly. Nenette Lustre, client services director for AGB Nielsen Philippines, adds that DTV rollout would have socio-economic implications as low-income families may not be able to afford the prices of DTV receivers. But it is precisely this problem that spurred ASEAN Ministers to agree upon a common standard back in 2007. The Ministers told the media at the time that the DVB-T standard was the most commonly adopted international DTV standard and would offer the most advantages in terms of economies of scale, ease of adoption and versatility for multiple platforms. The common standard is expected to make equipment, such as set-top-boxes and DTV receivers more affordable throughout the region. And while the Philippines and the rest of the analogue region are still debating on the merits of each DTV standard, another industry question is raised: while transmission of programmes may prove less costly, as outlined by GMA, would DTV broadcasters charge higher rates for advertisement spots, because of the improved picture and sound quality (including HD) of the content being broadcast? As with the standards issue, this question does not have a clear answer for the moment, as broadcasters would of course have to think of a new business model to ensure they get their ROI for the costly DTV upgrades they will put up. As far as ABS-CBN is concerned, Osorio says that that a new business model to derive revenue for DTV-quality ad spots is still being planned and finalised.