As Dubai prepares to launch digital terrestrial, one of the most lucrative markets in the Middle East now faces a confusing plethora of multichannel options. Interspace assesses the latest entrants and the challenge they set for DTH offers in the region. . .

CabSat 2000, the sixth annual Dubai cable, satellite and broadcast show (which ran from February 29-March 2), generated plenty of fresh business as well as hard news about the region’s broadcasters. Local hardware distributors all emerged with smiling faces, largely as a result of the much higher margins generated by digital receiver sales compared to the now depressed analogue market. Indeed, CabSat Dubai was altogether a livelier event than its 1999 predecessor, with trade visitors up some 25 per cent.

Locally based Emirates Dubai TV (EDTV) made the running in terms of news from the show with confirmation that it would launch a region-wide 36 channel DVB-T digital terrestrial system shortly. The first six test channels went on air on February 28, and according to EDTV chief engineer David Boxall, the currently free-to-air system is using Divicom and Hirschmann equipment, and being played out to Nokia-supplied set top boxes.

Riyad al-Shuabi, Dubai’s special advisor on broadcasting, says the intention is to migrate the current 10 channel MMDS system to DVB-T, exploiting DVB-T’s better transmission reach, tested to a 35-40 km radius from Dubai town itself. It is also possible that the system could be extended outside this core geographical area after more comprehensive testing takes place. The broadcast radius is key to the system’s success because of the market offered by the adjacent emirates of Sharjar and Ajman.

No decisions have yet been taken on encryption or box supplier, and it is known that requests for proposals have been sent out. The existing MMDS system used Nagravision encryption. Boxall says DVB-T technology was chosen by Dubai TV because of its potential for including multimedia. Time-scale for full implementation is around six to nine months.

Hussein Anani, spokesman for Dubai TV, says while no decision had yet been taken on the precise channel line up, it would be concentrating on high-value premium channels. Al- Shuabi has also been busy, with Dubai’s Drama Channel added to the newly-launched Dubai Sport and Business channels. Al-Shuabi is also leading a consortium of private investors backing two other digital channels. Travel, described by him as the world’s first Arabic-language travel channel, launched at the show. It will be transmitted on ArabSat, NileSat and Eutelsat. Travel will shortly be joined by a Tele-Medicine channel.

The launch timings for these are not accidental. Dubai is determined to carve out a broadcasting niche for itself, and there is intense competition between Dubai TV and local telco Etisalat. Dubai TV fulfills both a public-service role as well as commercially delivering pay-TV channels to the region. Meanwhile Etisalat, the proposed launch of which is running much later than expected (the company scrubbed a ‘launch date’ press conference into the bargain) with its 20,000 home cable system, nevertheless mounted an impressive display at CabSat. Dubbed ‘E-Vision’, Etisalat is promising a varied package of channels (basic, Arabic, Western, Asian, selective and a la carte) drawn from an overall bouquet consisting of over 100 channels which, says the company, will include PPV/NVOD movie channels.

Etisalat, in a statement issued at the show, say they will pass “a total of 100,000 homes by the end of year 2000.” One local insider suggested this is an impossible target for E-Vision.”They have yet to decide on a number of key elements, not least a box supplier,” he pointed out. Conditional access will come from Viaccess. It is also known that Pace Micro Technology has been having discussions with E-Vision, which suggests that the recent RFP to box-suppliers is still open. If Pace were to win the contract it would see the UK company re-enter a market it once led. Pace had its XTV products on show at the Cab-Sat event.

E-Vision said that in addition to the “many channels which are on board. . .. discussions were progressing well with other channels and programme providers to finalise our product offerings.” Etisalat declined to list those channels, although it did confirm that it had assembled two content for two of their own channels.

However this is something of a dilemma for all platform operators in what is now a very confused local market, with more than one trader suggesting this confusion extends to would-be subscribers.

On the one hand you have the ‘big four’ DTH players (Orbit, Showtime, Star Select and ART) each claiming high subscriber numbers taking satellite penetration of the existingUnited Arab Emirates market comfortably to a 60-70 per cent. In addition, there are redistribution outfits like 10 channel Dubai Cable Vision, which uses analogue MMDS, and which is testing the DVB-T system. There is also local entrepreneur Bond Communica-tions which uses RF and IF to distribute SMATV-type signals to a large number of apartments and high-rise residential blocks in the region, and which is already adding NVOD and impulse PPV to some of its properties.

Most channel owners have struck exclusive distribution contracts, either for DTH satellite or terrestrial re-transmission. In other words E-Vision has to go cap-in-hand to existing rights-holders for the more popular channels. Orbit, Showtime and the others seem disinclined to give away their key channel assets without adequate fiscal compensation, and neither Dubai Cable TV or E-Vision have had any such conversations.

Dubai is the key market, but close by are the separate emirates of Sharjah and Ajman, each with transmission frequencies under their control, and with transmitters that already reach well into the rich Dubai territory. One insider suggested one likely scenario sees rival DVB-T systems emerging from outside Dubai. It could easily happen, and in the process create even more vibrancy, and perhaps confusion in an already cluttered market.