Brazil - Price Update

The Brazilians launched their DTT services earlier this month based on the Japanese ISDB-T system, with a few local variations (and using MPEG-4 video). Indications are that it will be some time yet before receivers reach a price that will be affordable for the masses.

For a Standard Definition box, i.e., one with MPEG-4 decoding but outputting only 480i the price seems to be around 500 BRL, which is about $280 USD.

For a High Definition box, with 720p and 1080i video output (over HDMI) the price leaps to $44o USD.

Why Taiwan is important for Chile?

Despite the fact that an announcement was expected last Friday on which DTT system the Chileans would choose, it seems that decision has been postponed (again) and the political maneuvering is set to continue.

Proponents of the Japanese system (as chosen by Brazil) are said to have been claiming that DVB isn't used anywhere else that uses 6MHz channel bandwidths and the NTSC system for analogue TV. This has sparked a flurry of activity amongst DVB supporters pointing to the example of Taiwan. The DVB website reports (with a Spanish translation, leaving no doubt as to who the story is aimed at) that Taiwan now has more than 2 million DVB-T receivers, the majority of which are set-top boxes.

Limiting access to new technologies...

Starting from January, US consumers who rely on over-the-air signals for the TV service will be able to apply for up to two US$ 40 coupons that can be used to off-set the cost of digital-to-analogue converter boxes (or set-top boxes, as they're known elsewhere). These will allow consumers to continue using their old TV sets after analogue switch-off, which is due to happen in February 2009.

I've been reading through some of the information about the coupon program on the NTIA website, and I can't helping finding the whole philosophy behind the scheme to be somewhat twisted. There's a section of the site aimed at manufacturers who want to produce boxes that can be certified as qualifying under the coupon program, including a set of criteria (PDF) that can disqualify a box from being eligible. The general message seems to be that the coupons can only be used against the most basic of boxes - in other words, if you can't afford to equip yourself for the digital TV revolution, you're not entitled to have the latest technology. Features that disqualify a set-top box from the coupon program include not just high value-added things like a DVD drive, a hard disc or even a VCR, but also such basic features as VGA output, DVI output, YPbPr component video output, or HDMI. (One wonders what was the thinking behind putting in place these criteria?)

Contrast this to the equivalent programs in Italy and Austria where the respective governments, when DTT services were launched, used the subsidies to ensure that consumers could benefit from a more highly specified box, specifically a box with MHP middleware along with smartcard slots (and, as far as I'm aware, no limit on what outputs the box offered). If consumers wanted to go out and buy a simple "zapper" box, with only the very basic specs, they pay for it themselves...

I wonder whether this is related to the differing DTT standards used in the USA and these two European countries. DVB-T has been so successful worldwide that basic receivers are so cheap as to not require a subsidy. (e.g. more than 8 million receivers sold in France since launch in 2005). In the USA, where ATSC holds sway, the majority of receivers sold can be accounted for by the mandate that requires all new TVs to have an integrated tuner (which many or most people don't even use) - there isn't really a market for converter boxes, or set-top boxes. (I've been unable to come by any real information about what the price point will be for these boxes yet.)

The moral of the story: if you have a big population of analogue TV sets and you want your citizens to have the best technology at the cheapest price, you're probably better off with DVB-T.