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Overview of the Required Architecture
and Regulatory Considerations
Introduction
Section I of this white paper provides an overview of the required
architecture for a Direct-to-Home (DTH) system, from the point of
content source, through multiplexing, encryption and modulation
at the headend, to transmission over the satellite and reception by
a customer. The major components of a DTH system are addressed
along with key considerations in implementing such a system.
8/1/5457-DTH
Direct-to-Home (DTH) Services
TVRO
Encrypt TVRO
Content Conditioning
STB
Source Content
TVRO
Encrypt
Mux Mod
CA
System
2
Direct-to-Home (DTH) Services
3
Direct-to-Home (DTH) Services
Encryption (Scrambling) and Condition- published by the DVB (Digital Video Broadcasting)
consortium and standardized through ETSI (European
al Access (CA) Systems Telecommunications Standards Institute). Another
Encryption is used to prevent unauthorized decoding scrambling algorithm gaining traction in areas such as
and viewing of content. An encryptor scrambles the IPTV is the AES (Advanced Encryption Standard) family,
bits of the digitized content. Once scrambled, only which includes several variants. Some standards groups
authorized STBs can descramble (decrypt) the received are investigating various versions of AES for possible
stream and make the content available for viewing. adoption.
The authorization is managed by the CA System. A CA
System is, therefore, typically coupled to a subscriber Another key standard is the interface between the
management system (SMS), and other back-office sup- encryption and CA Systems. Again, DVB provides a
port systems (BSS) including those for billing. generally accepted standard for this; the DVB-Simul-
Crypt interface. A major benefit of using a DVB Simul-
The actual encryption process and system can be Crypt-compliant encryption system is that multiple CA
thought of as separate from the CA System, but is systems can simultaneously be used on a single trans-
closely interfaced. The encryption system uses an al- mission.
gorithm to scramble the content based on an encryp-
tion key, also known as a control word (CW). The CW While the scrambling algorithm is common to all con-
is changed on a regular basis, often on the order of nected CA Systems, the entitlement messages are
seconds, to deter hacking the content. The encryption unique to each CA System. This opens up the possibility
system generates the CWs and provides them to the CA of sharing a DTH Headend among several operators,
System. each using their own, separate, CA system. This is fur-
ther addressed below, when dedicated verses shared
The CA System generates entitlement messages that DTH headends are reviewed.
are sent to the STBs. The entitlement messages are
used to indentify, on a STB by STB basis, which pro-
grams can be viewed (i.e., decrypted). Information con- Modulation
tained within the entitlement messages enables a CA Modulation is used to transfer the information of the
module within each STB perform the actual decryption. digital content on to a signal suitable for transmission
Entitlement messages are added into the multiplexed via the satellite. As with other aspects of the DTH sys-
content stream at the DTH Headend for delivery to tem, standards are available.
the STBs. The structure and content of the entitlement
messages is unique and proprietary to a CA vendor and The available standards have evolved from DVB-S, to
are, themselves, encrypted by the CA System. DVB-DSNG, and recently to DVB-S2. All these standards
are published through ETSI. The evolution relates to
Many of the major video equipment vendors have de- the efficiency (and complexity) of the modulation and
ployed scrambling systems, but use of these typically forward error correction (FEC) coding schemes. Legacy
results in creating a proprietary solution or network systems likely use DVB-S or DVB-DSNG and their STB
which extends to the STBs that can be used. However, cannot receive DVB-S2 signals. This needs to be taken
standards do exist for both the scrambling process and into consideration if a new DTH platform is required to
the interface to the CA System(s). integrate with existing users. DVB-S2 provides approxi-
mately 30% improvement in efficiencies over its pre-
Use of a standard scrambling algorithm opens up op-
decessors, and therefore requires serious consideration
tions and creates more STBs choices for the home
for any new deployments
viewer. The most widely adopted standard, to date,
is the Common Scrambling Algorithm (CSA) which is
4
Direct-to-Home (DTH) Services
Dedicated DTH Headends must be borne by one operator. Figure 2 shows two
separate satellites be used for the respective service
The traditional approach in deploying a DTH system is
operator headends, but this separate capacity could
to have a headend dedicated to a given user commu-
also be at a transponder level on a single satellite.
nity. An example of this is shown in Figure 2, below. In
this scenario each DTH headend, including its SMS, CA From a business perspective, a dedicated DTH Headend
system and encryption system, is dedicated to a specific is likely an attractive and viable model for a large ser-
service provider. It is effectively a closed environment vice operator, but is potentially a financial burden for
where all systems are chosen by the service provider smaller operators
and adherence to standards is not necessarily required.
Encrypt Encrypt
Content Conditioning
Content Conditioning
Source Content
Secure Content
Encrypt Encrypt
DTH Headend for Service Provider 1 DTH Headend for Service Provider N
SMS 1 SMS N
5
Direct-to-Home (DTH) Services
Mux Mod
DTH Service DTH Service
Provider 1 Provider N
User Community Encrypt User Community
Content Conditioning
Secure Content
Encrypt
Mux Mod
CA CA
System 1 System N
6
Direct-to-Home (DTH) Services
7
Direct-to-Home (DTH) Services
____________________________________________
1 Article 7.1 of the Schedule of Terms and Conditions of the License Agreement to maintain and operate a DTH platform. Available at: http://www.trai.gov.in/dthguidelines.asp.
See also Indian Standard Digital Set Top Box For Direct-to-Home (DTH) Services Specification. Available at: http://mib.nic.in/informationb/CODES/dstbdth.pdf
2 Currently, only two providers are offering DTH services in India Dish TV having launched in May 2005 and Tata Sky in September 2006 - with three more soon expected to
enter Reliance, Sun Network, and Bharti Group.
3 Directive 2002/22/EC of the European Parliament and the Council on a common regulatory framework for electronic communications networks and services (March 7, 2002)
(Framework Directive), at article 18. Available at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32002L0021:EN:NOT.
4 Framework Directive at article 18.3.
5 Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on review-
ing the interpretability of digital interactive television services pursuant to Communication COM(2004) 541 of 30 July 2004, (February 2, 2006) at page 2.
Available at: http://eur-lex.europa.eu/LexUriServ/site/en/com/2006/com2006_0037en01.pdf.
6 Article 7.3 of Norma No 008/97, Servio de Distribuio de Sinais de Televiso e de udio por Assinatura Via Satlite (DTH). 8
Direct-to-Home (DTH) Services
____________________________________________
7 Second Report and Order, 20 F.C.C. Rcd. 6794 (2005).
8 Charter Commcns., Inc., et. al v. FCC, 460 F.3d 31, 35 (2006), available at
http://www.cesweb.org/shared_files/edm/2006/govalert/DCCircuitAdvanceNewhousevFCCOrder081806.pdf
9 Twelfth Annual Report, 21 FCC Rcd. 2503 (2006), available at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-11A1.pdf
10 Communications Act of 1934, as amended, 47 U.S.C. 548(c)(2)(D).
11 The rules are narrowly tailored; for example, they do not cover terrestrially-delivered programming. See In the Matter of Implementation of the Cable Television
Consumer Protection and Competition Act of 1992; Development of Competition and Diversity in Video Programming Distribution: Section 628(c)(5) of the
Communications Act: Sunset of Exclusive Contract Prohibition; Review of the Commissions Program Access Rules and Examination of Programming
Tying Arrangements, 2007 FCC LEXIS 7082 (2007) (2007 Extension Order). 9
Direct-to-Home (DTH) Services
In countries such as Australia, Spain and the United 2. Exclusivity Agreements over
Kingdom, regulators have also imposed restrictions Premium Content
on exclusive content agreements between vertically
Exclusive rights over premium content or must
integrated video programmers and distributors. These
have content have also raised competitive concerns
restrictions, however, have been adopted on a case-by-
from regulatory authorities. The European Commission
case basis in the context of mergers and other transac-
has recognized that securing exclusive rights over pre-
tions. In the United Kingdom, for example, the merger
mium content is the driver of the pay television mar-
between British Satellite Broadcasting and Sky in 1990
ket.16 What type of content is considered premium
was conditioned on the requirement that the resulting
content or must have content depends, of course,
entity BskyB - offer a range of its affiliated channels,
on a country-specific assessment.
including the sport and film channels, for resale to
other pay television operators. The FCC, for example, considers must have content
as programming for which there are no readily avail-
Similarly, in Spain, the Government conditioned ap-
able substitutes and, without access to which, competi-
proval of the merger between Via Digital and Canal
tive MVPDs would be limited in their ability to com-
Satelite Digital (Sogecable) the two main DTH provid-
pete in the video distribution market.17
ers , inter alia, on the obligation that the resulting
entity makes available to third parties for resale on European Commission case law has recently addressed
non-discriminatory terms theme channels directly or the competitive implications of these agreements. In a
indirectly produced by its affiliates.12 series of decisions involving exclusive agreements over
premium content mainly football and premium
Finally, in Australia Foxtel and Optus (the two leading
films the European Commission expressed concern
pay television operators) entered into a content shar-
over possible horizontal effects (i.e., joint selling,
ing agreement in which the two operators agreed to
where sporting associations pool the rights of the par-
share programming. The Australian Competition and
ticipating clubs; and joint buying); vertical effects (i.e.,
Consumer Commission (ACCC) expressed concern over
where exercise upstream of exclusive rights by pool-
the competitive implications of this arrangement, in-
ing for example leads to reduced competition and
cluding the impact of Foxtels vertical integration in
exclusion in downstream distribution markets); or a
wholesale aggregation and supply of programming for
combination of both (i.e., combination of a dominant
subscription television.13 Foxtel accordingly presented
position in the upstream and downstream markets,
the ACCC a set of undertakings including making its
leading to strong market foreclosure).18
programming available to any competing video dis-
tributor.14 Recognizing the competitive concerns deriving from
the joint selling of exclusive rights to premium content,
In Singapore, the lack of vertical integration between
the doctrine of the European Commission stemming
video programmers and cable distributors was a de-
from the UEFA Champions League decision,19 and sub-
termining factor for Ministry of Information, Commu-
nications and the Arts (MICA) to allow StarHub Cable
Visions exclusive carriage agreements.15
____________________________________________
12 See Order ECO/19/2003, Jan. 8, 2003. Available at: http://www.boe.es/boe/dias/2003/01/14/pdfs/A01707-01709.pdf
13 ACCC, Foxtel/Optus Arrangements Issues Paper September 2002, p. 11. Available at: http://www.accc.gov.au/content/item.phtml?itemId=340358&nodeId=5062be3bdc34d0
8786fb08e7d2002a67&fn=Foxtel/Optus%20proposed%20arrangements%20and%20undertakings%20issues%20paper%E2%80%94September%202002.pdf
14 See Undertaking to the Australian Competition and Consumer Commission by Foxtel Management PTY LTD (for and on behalf of the Foxtel Partnership) and Foxtel Cable Tele-
vision PTY Limited, Clause 8. Available at: http://www.accc.gov.au/content/item.phtml?itemId=755182&nodeId=f96556d722ff3a06cd70135d7e604a33&fn=Draft%20section%
2087B%20undertaking%20by%20Foxtel%20Management%20and%20Foxtel%20Cable%20Television.pdf
15 See The Ministers Decision in Singtels Appeal Against MDAs Decision dated 10 May 2006 on Exclusive Carriage Agreements, Press Release, July 27, 2007.
Available at: http://www.mica.gov.sg/pressroom/press_070727.htm
16 In a recent merger decision affecting the Italian pay-television market, the European Commission found exclusive rights over premium content in that case recent premium
films and certain football events- constitute the essential factor (the drivers) that leads consumers to subscribe to a particular pay-TV channel / platform. Case COMP/M.2876
Newscorp/Telepi, para. 54.
17 See 2007 Extension Order, 13, P 6.
18 See Herbert Ungerer, Commercialising Sport, European Commission, Competition DG, COMP/C/2/HU/rdu, October 2, 2003, at 4.
19 COMP/C.2-37.398 Joint selling of the commercial rights of the UEFA Champions League. Available at:
http://eur-lex.europa.eu/LexUriServ/site/en/oj/2003/l_291/l_29120031108en00250055.pdf 10
Direct-to-Home (DTH) Services
____________________________________________
20 Case COMP/C.2/37.214 Joint selling of the media rights to the German Bundesliga. Available at:
http://eur-lex.europa.eu/LexUriServ/site/en/oj/2005/l_134/l_13420050527en00460046.pdf
21 Case COMP/C-2/38.173, Joint selling of the media right to the FA Premier League. Available at:
http://ec.europa.eu/comm/competition/antitrust/cases/decisions/38173/decision_en.pdf
22 See: http://ec.europa.eu/comm/competition/sectors/sports/overview_en.html
23 Case COMP/M.2876 Newscorp/Telepi, para. 225 (b),(d).
24 Supra note 18.
25 Directive 2002/22/EC of the European Parliament and the Council on universal service and users rights relating to electronic communications networks and services
(March 7, 2002) (Universal Service Directive), at article 31. Available at: http://eur-lex.europa.eu/pri/en/oj/dat/2002/l_108/l_10820020424en00510077.pdf
26 European Commission, Must carry obligations under the 2003 regulatory framework for electronic communications networks and services (July 22, 2002), at p 2.
27 European Commission, MEMO/07/255, New round of infringement proceedings under the EU telecom rules: What are the issues? (June 27, 2007), at p 6.
Available at http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/07/255. 11
Direct-to-Home (DTH) Services
In both the European Union and the United States, Africa Sales
must carry obligations are generally imposed only on +27 11-535-4700
cable operators, not on DTH providers.30 In the limited sales.ame@intelsat.com
instances in which these obligations are imposed on
satellite operators, the must carry obligations are con- Asia-Pacific Sales
siderably less restrictive than those imposed on cable +65 6572-5450
operators.31 sales.asiapacific@intelsat.com
____________________________________________
28 See Proposal for a Directive of the European Parliament and of the Council amending Directives 2002/21/EC on a common regulatory framework for electronic
communications networks and services, 2002/19/EC on access to, and interconnection of, electronic communications networks and services, and 2002/20/EC on the
authorization of electronic communications networks and services, at p 9. Available at:
http://ec.europa.eu/information_society/policy/ecomm/doc/library/proposals/dir_better_regulation_en.pdf.
29 See European Commission, Must carry obligations under the 2003 regulatory framework for electronic communications networks and services (July 22, 2002), at p 8.
30 For instance, the United Kingdom decided not to impose must carry obligations on satellite operators as these were subject to the conditional access non-discrimination
regime. In the United States, DTH operators are not subject to must carry obligations. However, there is a carry-one, carry-all requirement that mandates satellite operators
to carry all local stations of the specific market if they decide to carry one single local station.
31 For instance, in France, DTH operators are subject to must carry obligations. However, they must carry only the public national stations (5 channels), whereas cable
operators are mandated to carry any over-the-air television, regardless of whether it is public or private. See Le must carry sur le satellite avant la loi n 2004-669
du julliet 2004, Direction du Dveloppement et medias. Available at: http://www.ddm.gouv.fr/imprime.php3?id_article=252
32 See, for example, article 12 of the Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorization of
electronic communications networks and services. 12