Yearly Archives - 2006

The BSG's response to the European Commission consultation on Content Online was submitted today

The Directorate-General Information Society released the public Consultation on Content Online in the Single Market on 28 July 2006. The stated aim is to establish how EU policy should be designed in order to stimulate creation and distribution of online content and services in Europe. The closing date for the consultation was 13 October, and the Commission has said it intends to release a communication on the topic by the end of the year.

The consultation was wide ranging and so affects many sectors in the UK. Relevant organisations have also been responding individually and via their trade associations, reflecting their own industry perpsectives. However, it was agreed, with the support of the UK government, that it may also be useful to look at Content Online from a cross-industry UK perspective, considering points of common interest and submitting a response along these lines.

BSG coordinated this response, which was submitted with input from content players in the music, games and publishing industries via the Digital Content Forum, broadcasters, ISPs, mobile operators, telecommunications and technology companies.

European Commission Public Consultation on Content Online in the Single Market

BSG response to the European Commission consultation on Content Online

 

Three broadband reports commissioned by the DTI

UK Broadband Status Report – March 2006

This report, covering the period from October 2005 to December 2005, commissioned by the DTI from Ovum, continues the series of quarterly reports to monitor the progress of the UK broadband market in support of the Government’s overarching objective for the UK to have the most extensive and competitive broadband market in the G7 by 2005.

Ovum-Hedra Report: UK Broadband Status Report

International Broadband Market Comparisons Update – March 2006

This report, covering the period from October 2004 to March 2005, commissioned by the DTI from Ovum-Hedra plc, continues the series of six monthly reports to benchmark the progress of the UK against certain key broadband enabled countries in support of the Government’s overarching objective for the UK to have the most extensive and competitive broadband market in the G7 by 2005.

Ovum-Hedra Report: International Broadband Market Comparisons

Sophisticated Broadband Services Report – May 2006

This is the 3rd report on higher speed broadband coverage and services, commissioned by the DTI to Analysys. It provides a first look at whether a digital divide of next generation broadband services exists in the UK and compares the current coverage level of the UK with international peers.

Analysys Report: Sophisticated Broadband Services Report

 

Government Awards £1.2 Million to Drive Digital Innovation

The Digital Challenge Awards Ceremony 2006 took place today (12 July 2006) in London – Angela Smith MP, Parliamentary Under Secretary of State announced the top ten finalists at a presentation lunch held by the Department for Communities and Local Government and the City of London.

Out of the 79 entries representing over 250 organisations and partnerships, the judges shortlisted the proposals to 18 regional winners, from whom the finalists were chosen.

Each finalist was presented with an award and received £120,000 from the Department for Communities and Local Government. This will enable them to further develop their proposals and compete to be the ‘Digital Challenge Winner’ with a prize of £7m enabling them to implement their Digital Community Vision.

Top Ten Finalists submissions

Digital Challenge Inclusion Network

BSG today publishes Green Paper on 'Predicting UK Future Residential Bandwidth Requirements'

The Broadband Stakeholder Group (BSG) has published a green paper looking at possible demand for broadband in 2008 and 2012. This paper has been prepared as a contribution to the emerging public debate about the potential requirement for further investment in next generation access infrastructures in the UK.

Most observers agree that as the take-up of broadband services increases and new rich media content, services and applications emerge, demand for bandwidth by households will grow. However, it is not clear by how much or how quickly this will happen.

Making predictions about the uptake and demand for any new technology is fraught with difficulties and predicting demand for bandwidth is particularly challenging. Future bandwidth requirements will be dependent upon a wide variety of variables, some of which we know and can predict, others which we know but can’t predict, and some which we simply don’t know. The methodology developed in the green paper attempts to create a framework to address this uncertainty.

The BSG paper provides a scenario-based analysis of possible bandwidth requirements for 2008 and 2012 based on a set of key assumptions about technology development and changes in behaviour. In particular, assumptions have been made about the demand for high definition (HD) video; the development of compression technologies; the tolerable transfer times for large files; and the use of local storage and intelligent personal video recorders (PVRs). The importance of time criticality of certain applications and the impact of technological developments such as local storage devices and compression techniques were also considered.

Changing the assumptions made about these critical variables could significantly affect the results and we do not expect that there will be complete consensus about the findings. Some will argue that the bandwidth estimates are too conservative, others that they are excessively high. However, we hope that this Green Paper will help to frame the debate and stimulate further discussion on future demand for residential bandwidth in the UK.

The BSG would welcome further comment, thoughts and ideas from all interested parties about the study and any additional factors that could have an impact upon the findings.

BSG report: Predicting UK Future Residential Bandwidth Requirements

The Communications Market: Nations and Regions Research Reports

Ofcom has today published its Communications Market reports examining availability, take-up and usage of internet, telecommunications and broadcasting services across the UK Nations and the nine English Regions. These surveys are part of Ofcom’s Communications Market series of reports.

The Communications Market: Nations and Regions – Research Report

The Communications Market: Nations and Region – English regions

The Communications Market: Nations and Regions – Northern Ireland

The Communications Market: Nations and Regions – Scotland

The Communications Market: Nations and Regions – Wales

Media and telecoms players unite against new AV Directive

INTELLECT and BSG PRESS RELEASE 18/04/06

A unique alliance from across the broadcasting, telecoms, technology, new media and advertising sectors is voicing its concerns about the draft Audiovisual Media Services (AMS) Directive that is currently under discussion in Brussels. The UK government has serious concerns about the draft Directive and is currently discussing these with other Member States.

The draft Directive proposes substantial changes to the existing Television without Frontiers Directive (TVWF), which has governed broadcasting regulation in the EU since 1989. While moves to liberalise some of the advertising restrictions currently placed on broadcasters have been largely welcomed, the draft Directive also suggests extending regulation to cover a broad range of new and emerging audiovisual media services, something which has been met with fierce criticism in the UK.

The group, led by Intellect and the Broadband Stakeholder Group (BSG), agrees with the objectives of the proposed Directive, including consumer protection and the promotion of a strong European economy, but is concerned that the proposed text will have an opposite and damaging effect. It is feared that in its current form, the draft Directive will:

  • Deter new and existing new media players from the market and divert investment and innovation away from the EU
  • Not protect consumers as effectively as possible, by undermining existing legislation and self-regulatory schemes, which already operate successfully in this area.

At the heart of the problem is the proposal to extend regulation designed for traditional scheduled broadcast television to a new and as yet unformed ‘on-demand’ market, despite the fact that there is already adequate EU level regulation and self-regulation.

“We are not arguing that new ‘on-demand’ services should be exempt from legal standards” said John Higgins, Director General of Intellect, the ICT trade association and one of the leading groups in the coalition, “but this is not the most effective way either to protect consumers or to create a healthy media sector in Europe.”

Antony Walker, BSG CEO argues, “As currently drafted, this Directive is likely to confuse businesses, overwhelm regulators and let down consumers. The proposed scope is too broad and the definitions used too vague. The result could be an all-encompassing regulatory framework that takes five years to implement, undermines existing safeguards and proves largely unenforceable.

The group’s paper and website http://www.audiovisualstakeholders.org/will be published this week, and signatories will be lobbying MEPs throughout the year.

About the Television without Frontiers Directive: The TVWF directive (TVWF) was originally devised in 1989 by the European Commission, was reviewed in mid 1990s, and is now under review again. The original aim was to create a single market for broadcasting by preventing broadcasters from being subject to double regulation (in country where content is produced and then again in country where it is broadcast). Under the directive, content is only regulated in its ‘country of origin’, as all countries within the single market have agreed minimum broadcast standards to ensure consistency across EU.

Why are changes being suggested? Technology has changed the way that television services are consumed. The advertising model that has sustained non-publicly funded television for many decades is increasingly being challenged, and new funding streams are needed to allow quality programming to continue. At the same time, new services where programmes are delivered ‘on-demand’ to consumers such as IPTV (television delivered over the internet) or mobile TV are just beginning to emerge.

What changes are being proposed? The draft Directive proposes extending regulation to cover not just traditional scheduled broadcast services, but all ‘audiovisual media services’. It divides these services into ‘linear’ or scheduled and ‘non-linear’ or on demand, with a so-called ‘lighter’ range of obligations being placed on the latter. It also proposes liberalising advertising provisions within the current scope, although the group fears the proposals do not go far enough.

Full list of signatories: ATVOD (Association for Television On-Demand), British Screen Advisory Council, Broadband Stakeholder Group, BT Group plc, Channel 4, Cinema Exhibitors’ Association, Cisco Systems Ltd, Communications Management Association, European Publishers Council, Five (Channel 5 Broadcasting Ltd), Global Village Limited, H3G UK Ltd, Homechoice, Institute of Practitioners in Advertising, Intellect, Internet Service Providers’ Association (ISPA), ITV plc, Newspaper Publishers Association, NTL, PACT (Producers Alliance for Cinema and Television), Phonographic Performance Limited (PPL), Satellite & Cable Broadcasters’ Group, T-Mobile UK, Video Performance Limited (VPL), Vodafone, Wanadoo UK, Yahoo!

South Korea and Japan

UK can learn from South Korea and Japan in broadband development…

A new report highlights lessons for the UK from these leading ICT markets

Intellect, the trade body for the UK high tech industry, co-ordinated a DTI Global Watch mission to South Korea and Japan in November and December 2005.

The Mission report: ‘Exploiting the Broadband Opportunity: Lessons from South Korea and Japan’ was launched at a Seminar on 29 March, held in London by the DTI in association with Intellect.

Through a series of presentations from the mission participants and a Q&A Panel Session, this event reported back the mission findings, highlighting the impact that the widespread deployment and take-up of advanced broadband services is having on the market for content, applications and services in Korea and Japan.

High population densities, ethnic homogeneity and distinct cultural characteristics have helped the rapid deployment and take up of broadband and broadband enabled services in Korea and Japan. However, while these factors make these markets distinct from the UK, there are many lessons that can usefully inform the UK, which faces similar challenges as broadband-enabled technologies drive convergence.

The report focuses on four key findings and concludes with recommendations so the UK can fully utilise on the continued growth of broadband services:

  • Focused ICT policies drive progress towards convergence
  • Ambitious network solutions are being developed to deliver policy aims
  • Broadband is driving growth in the market for innovative rich content
  • Next Generation Networks are leading to disruptive convergence

Commenting, Antony Walker, CEO of the Broadband Stakeholder Group, Director of Strategy at Intellect, and one of the Mission participants, said:

“ It is easy to dismiss Japan and Korea as irrelevant as both markets are very different to the UK. However, there is a lot that we can learn from their experience in terms of government policy, regulation, commercial experience and consumer trends.”

“ Both markets are more advanced than the UK, but perhaps not quite as advanced in terms of content and applications as some might have predicted. However, as the take-up of much faster fixed and mobile broadband services increases, the question is whether they are heading for the kind of tipping point that could see both markets accelerate away from the UK and other European markets. It is still too soon to know for sure, but both countries are continuing to invest in and priorities global leadership in ICT. The UK should keep a close eye on these markets over the next 9 to 18 months.”

DTI Global Watch Mission Report

Erratum: comments and corrections to the report

Presentions:

DTI Global Watch Overview – Philip White, DTI Global Watch Service

Introduction – Philip Graf, BSG

Policy, Regulation & Infrastructure – Mike Short, O2, and Prof. Rahim Tafazolli, University of Surrey

Consumer Trends – Stella Creasey, BBC

Applications Development – Bill Jones, Global Village Limited

Conclusions and Recommendations – Antony Walker, Intellect and BSG

Two broadband reports commissioned by the DTI

Sophisticated broadband services – 28 November 2005

This document is the second report of the study commissioned to Analysys by the Department of Trade and Industry (DTI) to examine the market for sophisticated broadband services across the G7,1 Australia, Ireland, South Korea and Sweden. This report summarises Analysys’s findings on the performance of these countries regarding both the availability (coverage) and usage of sophisticated broadband services. The availability (coverage) data is estimated at the end of the third quarter of 2005; the usage data is estimated mid-2005.

The coverage findings are based on a combined survey and desk research approach for fixed and mobile broadband infrastructure operators identified across the 11 countries under study. Coverage results are provided for downstream, upstream and mobile technologies.

The next iteration of this study will be published in April 2006.

Sophisticated broadband services report, 12 May 2006

Sophisticated broadband services report, 28 November 2005

 

UK Broadband Status Report – January 2006
Covering the period April 2005 – September 2005

Ovum has been commissioned by the DTI to provide a series of reports on the current state of the UK broadband market and its likely development over the next ten years. This report forms the main six monthly update on broadband coverage and take-up up to the end of September 2005. An interim quarterly report that focused on coverage developments was last produced for the quarter ending June 2005. The findings and analysis contained in the report are based on information provided by the major broadband infrastructure providers and additional research, analysis and forecasting carried out by Ovum, building on its comprehensive and continuous research programme.

Chapter 2 contains a summary of recent developments in the broadband market, focusing on the activities of key players.

Chapter 3 provides an analysis of the current state of broadband coverage in the UK, based on data provided by infrastructure players including BT, ntl, Telewest, Kingston, Pipex and UK Broadband.

Chapter 4 contains a summary of the current levels of broadband take-up and provides forecasts of future take-up by technology.

Chapter 5 summarises the key competition issues, building on recent developments outlined in Chapter 2.

Annex A contains a summary of the major current broadband technologies.

UK Co- and Self-Regulatory Forum established

Co- and Self-Regulatory Forum

Background

The Co- and Self-Regulatory Forum was established in November 2005 in response to the European Commission’s references in their revised Television Without Frontiers (TVWF) Directive to the important role that co- and self-regulation has in delivering public policy objectives in the audiovisual media sector.

Membership

Advertising Association (representing the Committees of Advertising Practice)
ATVOD (Association for Television On-Demand)
ISPA (Internet Service Providers’ Association)
Mobile Broadband Group
Internet Watch Foundation (IWF)
Independent Mobile Classification Body (IMCB)
ICSTIS – the premium rate services regulator
Video Standards Council (VSC)

BSG provides the Chair and secretariat for the Forum;
Ofcom, DTI (Department of Trade and Industry) and DCMS (Department for Culture, Media and Sport) attend as observers;
the Forum also benefits from the input of the BBC and industry bodies including the Confederation of British Industry ~(CBI) and the Digital Content Focum (DCF).

Objectives

A major objective of the forum is to explain how co- and self-regulation are already working as a successful regulatory model in key areas of the UK’s audiovisual media industry.

Co- and self-regulation play a vital role in the effective regulation of communications services in the UK today. They work not just because they can directly and promptly respond to the industry to which they relate, but also because their members have a market incentive to ensure that the services that they provide are in conformity with social standards and public policy objectives.

In particular, co- and self-regulatory initiatives have proved key in the regulation of new media services and, in fact, they are already effectively addressing public policy concerns in a number of areas, including protection of minors and human dignity.

The forum believes that co- and self-regulatory solutions, supported by a strong focus on media literacy programmes, are a critical element of both European and national regulation in this area.

International Broadband Market Comparisons – Update January 2006

This report for the Department of Trade and Industry is the latest in a series commissioned from Ovum-Hedra plc, and covers the period April 2005-September 2005.

It continues the series of six monthly reports to benchmark the progress of the UK against certain key broadband enabled countries in support of the Government’s overarching objective for the UK to have the most extensive and competitive broadband market in the G7 by 2005.

International Broadband Market Comparisons, Update January 2006

European Commission launch Communication on 'Broadband for all'

22 March

‘Broadband for all’ : Commission mobilises all its policy instruments to bridge the broadband gap.

The European Commission considers wide broadband coverage in Europe as crucial for fostering growth and jobs in Europe. This is why EU telecoms legislation, structural and rural policy instruments need to be mobilised in full respect of state aid rules in a joint drive to bring high-speed “broadband??? internet access to all Europeans, in particular to the EU’s less-developed areas.

This is the conclusion of ‘Bridging the Broadband Gap’, a European Commission Communication presented today (21 March 2006) jointly by the European Commissioners for Information Society and Media, Competition, Regional Policy and Agriculture and Rural Development.

Ofcom Communications Market – Interim Report February 2006 published

Ofcom today published its ‘Communications Market – Interim Report February 2006’, which includes the latest data available for the second and third quarters of 2005. This report is one of a series of regular updates to Ofcom’s annual Communications market reports, the latest of which was published in August 2005.

This issue mainly covers data from Q2 and Q3 2005, with market development updates covering the period from June 2005 to February 2006. It aims to give a comprehensive picture of the radio, telecommunications and television sectors, with a round-up of recent developments and the latest available data on:

  • Industry size, structure and financing;
  • Availability, penetration and use of products and services; and
  • Consumer attitudes and behaviour.

In addition, in this report Ofcom takes a closer look at some emerging themes in each sector:

  • Radio sector finance;
  • Mobile Virtual Network operators (MVNOs); and
  • The cable sector.

Amongst key facts are included:

  • By the end of September 2005, Ofcom’s data showed that 57% of the country’s 15.5 million internet connections were over broadband, and latest figures show that by December 2005 there were almost 9.8 million broadband connections across the UK
  • The number of local loop unbundled (LLU) lines grew from fewer than 50,000 in Q1 2005 to over 200,000 by the end of the year, and according to the Office of the Telecommunications Adjudicator this total had increased to 250,000 by February 2006

Minister challenges 'unworkable' EU proposals to regulate online content

Purnell backs industry on revision of the TV without Frontiers Directive

Speaking at a Foreign Policy Centre event last week, James Purnell MP, Minister for Creative Industries, laid out the UK Government’s concerns about the proposed changes to the TV without Frontiers Directive, echoing points raised by the BSG throughout last year.

This was one of the first times that the Government has spoken publicly about the Directive since the European Commission published its final draft in December and the speech confirmed that this is a major issue for the UK Government as the Directive moves into the European Parliament.

Mr Purnell reminded the audience that this is not just a ‘techie’ debate, but one that will fundamentally affect the ‘digital technology’ sector that forms the backbone of Europe’s knowledge economy, and in particular the UK, which is ‘on its way to becoming Europe’s digital laboratory’.

Despite agreeing with a number of aspects of the Directive, such as the retention of the Country of Origin Principle, Mr Purnell explained that Government had ‘serious concerns’ about extending legislation designed for the broadcasting world to cover a much wider range of audio visual media services delivered over new and emerging platforms. He questioned the rationale for the extension of scope – given that e-Commerce Directive already covers many of the new services – and explained that in a rapidly evolving sector the Directive’s market definitions are unworkable, in particular the distinction between linear and non-linear services, which is effectively ‘a line in the sand’ that will be ‘washed away by the tide of convergence’. Burdening a nascent market with unenforceable and unnecessary regulation would have far reaching consequences, he said, raising barriers to entry in new media markets, preventing new services from developing and pushing investment outside of the EU.

The Government’s views mirror those that have been voiced by Intellect and the BSG over the last year. Antony Walker, CEO of BSG, was also on the panel of speakers at the event and took the opportunity to highlight the disparity between the EU’s better regulation policy and the draft Directive. He also said that in many cases self-regulation is a more effective instrument for delivering the public policy objectives of the Directive than centralised legislation and that this is an area where the BSG is actively engaging with industry bodies.

James Purnell’s speech in full

Study shows regional differences in broadband take-up

Experts are concerned that the broadband ‘Digital Divide’ – the gap between the haves and have-nots – is deeper than was thought and may be getting even deeper.

High-speed broadband use is still subject to huge regional variations, according to a study published last week. The 10 most connected areas are all in London and the South-East, creating concerns about a continuing digital divide, says telecoms researcher Point Topic, which carried out the survey.

Regional differences in broadband take-up