1. Convergence: European experience – the example of IPTV/Internet TV Alison Birkett First Counsellor European Commission Delegation to China MII/ITU Seminar, Shanghai July 2007

2. OUTLINE Ii2010 Information Society – the overall plan for ICT IIElectronic communications (telecom) policy III Audiovisual policy IVApplying the Framework to IPTV/Internet TV

3. OUTLINE Ii2010 Information Society – the overall plan for ICT IIElectronic communications (telecom) policy III Audiovisual policy IVApplying the Framework to IPTV/Internet TV

4. A comprehensive five-year strategy to boost the digital economy, by fostering growth and jobs in the Information Society and Media industries 1. A Single European Information Market 2. Innovation and investment in research 3. Inclusion, better public services and quality of life

5. Tools for Implementation MODINIS ICT FUND - CIP FP 6 and 7 Others (SF) Review and revision of the regulatory frameworks Specific discussion i 2010 GovernanceLegislation Benchmarking and Monitoring Financial Support Communication Stakeholders Dialogue MS Cooperation Reporting High level events i2010 events

6. Review and Revision of Regulatory Frameworks  Communications Policy: e-Communications Regulatory Framework  Audiovisual Policy: Check name Directive

7. Ii2010 Information Society IITelecom (electronic communications) policy III Audiovisual policy IVApplying the Framework to IPTV/Internet TV OUTLINE

8. Content Services Outside scope of EU framework (e.g. broadcast content, e-commerce services) Electronic Communications Scope is all networks and services – independent of infrastructure Communications Services (e.g. telephone, fax, e-mail) Communications Networks (e.g. fixed, mobile, satellite, cable TV, powerline systems, networks used for radio and television broadcasting) and associated facilities

9. Identify markets Product markets (e.g. call termination) See whether there are dominant operators on those markets (Significant Market Power) and whether they abuse market power Minimal and linked to degree of competition Flexible BUT harmonised at a European level Technologically neutral If so, Regulate only where an operator has a dominant position in an identified market where competition is not effective and the operator abuses market power Rely increasingly on competition law as a medium-long term goal Regulatory Approach to the Existing Framework

10. Proposals for Change Spectrum management Functional separation will be proposed Strengthening consumer protection and user rights Improving security Investment and innovation How to deal with new, emerging services, e.g. IPTV

11. Ii2010 Information Society IIElectronic communications (telecom) policy III Audiovisual policy IVApplying the Framework to IPTV/Internet TV OUTLINE

12. “Despite a general European move towards deregulation, there is a disparity between the regulation of old-world TV platforms (terrestrial, cable, satellite) and new delivery technologies like IPTV…. IPTV is widely regulated under telecoms law, despite providing a full-channel pay television service in every way equivalent to those on cable.... there was a feeling that this could impact the way in which adult content and advertising content was regulated.” Regulatory Environment is not fully consistent Source: Interactive content and convergence: Implications for the information society. A Study for the European Commission (DG Information Society and Media), 2006

13. Modernising the “TV without Frontiers” Directive Existing EU rules: limited to traditional TV; created the conditions necessary for free movement of TV broadcasts within the EU Minimum standards applicable to all MS  MS apply their national broadcast legislation, within the limits of the EU framework Why change? Answer: Convergence of technologies and services E.g. traditional (linear) TV plus Internet TV, mobile TV, video on demand, peer to peer exchanges, new advertising methods, etc.  Need to broaden the scope of the “TV without Frontiers” Directive to include existing novelties  Yet, at the same time, need to ensure that new services which are not the same as traditional broadcasting services, are not held up by heavy broadcasting rules

14. Necessary Modernisation: the “TV without Frontiers” Directive General view that regulatory disparity between “traditional broadcast” and “new” services requires revision of regulation New rules for audiovisual services to be based on content, rather than mode of delivery Distinguish between traditional broadcast or linear (‘push’) services and “new” ‘on-demand’ (‘pull’) services ‘On-demand’ services to be subject only to a basic set of minimum principles E.g. to protect minors and prevent incitement to racial hatred

15. Ii2010 Information Society IIElectronic communications (telecom) policy III Audiovisual policy IVApplying the Framework to IPTV/Internet TV OUTLINE

16. State of IPTV in Europe and the world The European market for IPTV is expected to double in 2007 54 IPTV services across Europe, 19 of which are in operation in the five European markets of the UK, France, Italy, Germany, and Spain. Screen Digest forecasts that subscriptions to IPTV services across Europe will almost double from 2.9m in 2006 to 5.6m in 2007, with subscription revenues from IPTV increasing from €470m to over €1bn. 2010: 12 per cent of all TV viewers worldwide will use IPTV (ABI Research) Global revenue in 2010: US-Dollar 10 bn (Informa Telecoms & Media) other research expects 60 Mn subscribers, US 27 bn revenue in 2010 (iSuppli)

17. Regulation: Distinction necessary Internet TV: content is transmitted across the public internet to the private internet access pipes into the homes (stream or on-demand) Internet TV: content is transmitted across the public internet to the private internet access pipes into the homes (stream or on-demand) IPTV: content usually sourced directly onto the private access pipes coming to the home. Content originates at the head ends and takes private pipes all the way. IPTV: content usually sourced directly onto the private access pipes coming to the home. Content originates at the head ends and takes private pipes all the way.

18. e.g. Internet-TV: Atomfilmswww.atomfilms.com

19. Internet-TV: Regulation “Internet-TV” does not exist from a regulatory perspective – it is merely another website “Internet-TV” does not exist from a regulatory perspective – it is merely another website same regulation as for other Internet services applies same regulation as for other Internet services applies Ie “light” regulation: no specific restrictions, no license requirements Ie “light” regulation: no specific restrictions, no license requirements general provisions on copyright, youth protection, hate speech, etc. general provisions on copyright, youth protection, hate speech, etc. non-specific provisions apply fully (civil code, antitrust, criminal law) non-specific provisions apply fully (civil code, antitrust, criminal law) country-specific regulations apply (e.g. age verification system in Germany, imprint requirement in Germany) country-specific regulations apply (e.g. age verification system in Germany, imprint requirement in Germany)

20. e.g. IPTV: BT Vision (UK): http://www.btvision.bt.com/

21. IPTV: Regulation IPTV providers in Europe are primarily telecoms companies offering DSL lines  communications regulation applies in principle (market definition, SMP, ONP, interconnection, price reg....) IPTV providers in Europe are primarily telecoms companies offering DSL lines  communications regulation applies in principle (market definition, SMP, ONP, interconnection, price reg....) Content regulation: as for web services, not as for broadcasting services! Content regulation: as for web services, not as for broadcasting services!

22. Broadcasting vs. IPTV/Internet TV different regulatory treatment different regulatory treatment strong regulation of broadcasting because of high opinion-building power of TV programmes strong regulation of broadcasting because of high opinion-building power of TV programmes soft regulation of IPTV because of fragmented audiences of all IP-services  relatively little influence on public opinion soft regulation of IPTV because of fragmented audiences of all IP-services  relatively little influence on public opinion but IPTV networks and cable networks are able to carry the same content and service And Cable TV Networks actually do the same …

23. For More Information…. e-Communications:Tomorrow’s Framework e-Communications:Tomorrow’s Framework http://europa.eu.int/information_society/policy/ecomm/tomorro w/index_en.htm EU Audiovisual and Media Policies: EU Audiovisual and Media Policies: http://ec.europa.eu/comm/avpolicy/reg/index_en.htm Mobile Broadcasting: http://ec.europa.eu/information_society/industry/broadcasting/ mobile/