Multiple Play: Market and Policy Trends in OECD Countries

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1 Multiple Play: Market and Policy Trends in OECD Countries Dimitri Ypsilanti OECD ITU-T IPTV Global Technical Workshop October

2 Greece OECD Broadband (June 2006) 2 Finland Norway Sweden Canada United Kingdom Belgium United States Japan Luxembourg Austria France Australia Germany Spain Italy Portugal New Zealand Czech Republic Ireland Hungary Poland Turkey Slovak Republic Mexico Netherlands Iceland Korea Switzerland Source: OECD OECD Broadband subscribers per 100 inhabitants, by technology, June 2006 DSL Cable Other OECD average OECD average Denmark

3 Network Telecom Convergence (Step 1): Multiple play Services Voice (Fixed) Cable TV Mobile Network Television Internet Voice (mobile) Other 3

4 Convergence (Step 2): Next generation networks Network Fixed Copper Fibre Wireless 3G Wi-Fi WiMAX Satellite UWB IP platform with QoS Services Voice (FMC) Video Internet Other 4

5 Development of multiple play (88 firms in 30 OECD countries) Triple play Double play ADSL Cable Fibre 0% 20% 40% 60% 80% 100% 5

6 Average broadband speeds OECD average broadband speeds, by technology, Mbit/s, September 2005 Download Upload ADSL Cable Fibre 6

7 Need for speed (10000 feet = 3.12km) Source: 7

8 Broadband pricing per Mbit/s, by technology Broadband costs per Mbit/s, by technology, September 2005, USD/PPP Yahoo! BB (Japan) NTT West (Japan) KT (Korea) Bredbandsbolaget (Sw eden) Glocalnet (Sw eden) Mstar (USA) Lyse (Norw ay) Smart Telecom (Ireland) J:COM (Japan) Noos (France) UPC Norw ay (Norw ay) UPC Chello extreme Kabel Deutschland (Germany) Com Hem (Sw eden) UPC (Austria) Cogeco (Canada) Telenet (Belgium) C&M (Korea) Welho (Finland) Casema (Netherlands) Telstraclear (New Zealand) TV Cabo (Portugal) Comcast (USA) Hanaro (Korea) Free Telecom (France) TeliaSonera (Sw eden) Versatel (Netherlands) Sonera (Finland) Internode (Australia) France Telecom (France) Homechoice (UK) Hive (Iceland) Elisa (Finland) Arcor (Germany) T-Com (Germany) Cabovisao (Portugal) Simmin (Iceland) KPN (Netherlands) Fibre Cable ADSL $0 $4 $8 $12 $16 8

9 Percentage of operators offering unlimited nationwide calling to fixed lines, by technology 32% 35% 29% ADSL Cable Fibre 9

10 Average number of video channels available, by technology Average num ber of video channels available, by technology, Sept ADSL Cable Fibre Satellite 10

11 Top offers (unlimited fixed calling) Company Type Country Price USD (PPP) Price USD Down (kbit/s) Bit Cap (MB) TV Chan Free Telecom ADSL France Casema Cable Netherlands Versatel ADSL Netherlands Kabel Deutschland Cable Germany Cablecom Cable Switzerland TeliaSonera ADSL Sweden France Telecom ADSL France Lyse Fibre Norway Mstar Fibre USA Smart Telecom Fibre Ireland Noos Cable France Telenor ADSL Norway TDC ADSL Denmark Telewest Cable UK Belgacom ADSL Belgium SBC ADSL USA

12 Top offers (timed/charged fixed calls) Company Type Country Price USD (PPP) Price USD Down (kbit/s) Bit Cap (MB) 12 TV Chan Yahoo! BB Fibre Japan NTT West Fibre Japan Welho Cable Finland Elisa ADSL Finland Auna Cable Spain KT Fibre Korea J:COM Cable Japan Com Hem Cable Sweden Simmin ADSL Iceland Sonera ADSL Finland Aliant ADSL Canada Bell Canada ADSL Canada Bigpond ADSL Australia AON ADSL Austria TCNZ ADSL New Zealand Telefonica ADSL Spain

13 Bit caps and limitations on service Com pany Country Bit Cap Video Voice call Podcasts DIVX Video 2064 kbps 64 kbps 30 m in 1.5 hours MB Minutes Minutes Downloads Downloads Belgium Versatel Iceland Og Vodafone Portugal AR Telecom Portugal Portugal Telecom Portugal TV Cabo Australia Bigpond New Zealand TCNZ New Zealand Telstraclear Australia Optus Austria AON UK BT Ireland Eircom Luxembourg Coditel Austria inode

14 Mobile multiple play (France) Prices Web access EUR 0.20 per minute EUR 0.98 per megabyte TV 30 minute sitcom EUR per minute for the video + EUR 0.10 per minute for the connection EUR Charged on traffic as above, but roughly EUR 0.40 per minute of video. TV free on weekends for one year EUR hour movie EUR EUR

15 Slingbox Television without borders US FR 15

16 Multiple Play and Convergence Merging of two different traditions: Broadcasting: High public impact, high relevance for democracy and society; Distribution via scarce resources; Policy focus on plurality of voices, and neutrality of news, quality of information and public decency; Active government interference, especially on content layer Telecommunications: No scarcity: access to networks for anyone; Policy focus on liberalisation, competition and innovation; No government interference with what s transmitted Restrictive broadcasting licensing declines, competition increases less scarcity Development of multiplatform environment Lowering of access barriers: active consumers on different layers. Enables interactivity, consumers produced content and multimedia 16

17 Key policy issues The evolution of video regulation: How and if existing regulations should apply to linear (traditional broadcast) and non-linear (streamed, time shifted) video delivery How to maintain social and cultural objectives (universal access telephony, broadcasting; plurality of voices, cultural diversity, consumer protection); Must be vigilant against anti-competitive behaviour from firms using bundled services to leverage market power Consumers should retain the ability to access competitive services from outside service providers in a network-neutral manner Avoid walled gardens Balancing equal access to services with QoS demands Limited access to content (such as exclusive contracts) could hinder alternative multiple play providers Current ADSL technologies limited in bandwidth so need to invest in fibre The future role of must carry" regulations in a converged environment Retransmission rights & access to content; 17

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