Telecommunications and Internet Federation
Mike Byrne
Commissioner,
Commission for Communications
Regulation
Telecoms Convergence and Infotainment
Facilitating Convergence: a Regulatory Perspective
IBEC TIF: Telecoms Convergence and Infotainment
Mike Byrne - Commissioner
ComReg
19th October, 2006
www.comreg.ie
Overview of ComReg
 Commission established in Dec 2002
– replacing ODTR (1997)
 Wide range of responsibilities in Electronic Communications
(ECS) and Postal sectors
 Promote Competition
 Contribute to the development of the Internal EU market
 Promote efficient use of Spectrum
 Promote Innovation and Investment in the sector
 Promote the development of the Postal Sector
 Promote the Interests of End Users and to protect and inform
consumers of electronic communications services
 110 people – analysts, accountants, engineers,
economists, lawyers (mainly private sector experience)
www.comreg.ie
Overall Market Revenues and Voice Traffic
Annualised industry revenue for to the end of June 2006 was €4.23bn.
Fixed line revenue accounts for just over half of industry revenue, while traffic
originating on fixed lines accounts for 61% of total voice traffic.
Profile of Industry Revenue June
2006
B'Casting
4.3%
Mobile
45.2%
Profile of Industry Traffic June 2006
Mobile Intl
3%
Mobile to
Fixed
9%
Fixed
50.5%
Mobile to
Mobile
27%
Fixed to
Fixed
40%
Fixed to
Fixed Intl
Mobile
9%
12%
Annualised Revenue Q2 2006= €4.23bn
Annualised Voice Traffic Q2 2006= 14.6bn mins
www.comreg.ie
Competition in Broadband Markets
Broadband Subscribers By Platform
400000
350000
Number of Subscribers
300000
250000
200000
150000
100000
50000
0
Q2'04
Q3'04
DSL
Q4'04
Cable
Q1'05
FWA
Q2 05
Q3'05
Q4 05
Q1 06
Q2 06
Other incl Satellite and Fibre
Source: Quarterly Key Data Questionnaire
•
410,000 broadband subscribers by the end of August 2006,
indicating strong demand for broadband over the summer of
2006.
•
While DSL is still the dominant means of broadband access growth also in other platforms. Fixed Wireless Access now
second-largest platform for broadband provision.
www.comreg.ie
High Penetration of Pay TV and Digital TV Services
Broadcasting Market in Ireland, June 2006
22%
30%
30%
18%
Analogue Cable
Satellite
Digital Cable
Free to View Only
•
Pay TV penetration in the Irish market grew by 11% in the 12 months to June
2006; 70% of TV households have a Pay TV service.
•
There has been some consolidation in the sector – Liberty Global, owner of
Chorus, acquired NTL in late 2005.
www.comreg.ie
Communications Prices
Since January 1997, Telecoms prices have decreased by over 20%,
compared with a 38% increase in overall prices in Ireland over the
same period
Telephone and
Communications Prices
Index of Telecoms Prices in Ireland
Jan 1997- Aug 2006
Index of communication services base
100= Jan1997
All Prices
140
136
132
128
124
120
116
112
108
104
100
96
92
88
84
80
76
72
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
www.comreg.ie
Convergence and the Regulator
Innovation
Consumers
Continuing the
Cycle
More Choice
Convergence
Convergence is
desirable –
Consumer, Industry
and Regulator
Competition
More Opportunities
for Service
Providers
www.comreg.ie
Convergence and the Consumer
 More services in convenient packages
 When, where and how you want them
 Its about users, not devices
I go to my content
My content comes to me
www.comreg.ie
Infotainment on the Move - Customers Usage?
Usage Levels – How Much? (%)
Usage Levels – Time of Day (%)
Short, quickly-digestible ‘snacks’ of information

Average 24 mins session / during commute

Most popular content: News, soaps, music, sports….
User created content and networked communities/social networks
www.myspace.com ; www.flickr.comwww ; youtube.com
User generated content is driving half of US top 10 fastest growing brands
– Neilsen / NetRatings
Source: O2 / Arqiva Mobile TV trial, May 2006
www.comreg.ie
www.comreg.ie
www.comreg.ie
BBC Web-site - customised
for viewing on PDA
www.comreg.ie
Challenging Environment for both Operators and Consumers!
Multiple operators &
service providers
interacting
Single operators
providing multiple
services
New technologies,
services and devices
Great new opportunities and services
While some operators will put customer-care
firmly at the centre of their businesses, some
will not, and consumer choice in a competitive
market will ultimately decide the fate of all
service providers
Service providers will also compete on their customer-care
standards
www.comreg.ie
Consumer Protection – Current and Future Regulatory Concerns
1. Availability of service

Levels of coverage

Universal service – Narrowband only?

Services for people with disabilities
2. Quality / End-user Rights

End-to-end QoS and Dealing with complaints and queries

www.askcomreg.ie and www.callcosts.ie

Transparency of billing arrangements

Interoperability of services / Number portability + linked info.
3. Security

Privacy (esp. location information)

Disclosure of user information / legal intercept

Protection of Minors & denying access to inappropriate content
www.comreg.ie
Innovation – Current and Future Regulatory Initiatives
WAPECS
Wireless Access Policy for
Electronic Communication Systems

Increasing Service Convergence

Demand from Spectrum Users for Flexibility

Demand for Flexible harmonisation

EU Policy to Encourage Innovation

Moves towards Spectrum Trading and less ‘C&C’
Other ComReg Initiatives

ComReg Test and Trial framework (mobile TV tests)

Wideband digital mobile data services (WDMDS) Licence scheme

The All Island Wireless initiative (with Ofcom)
www.comreg.ie
Conclusions
 Convergence will result in the delivery many services over
many platforms; move from a device centric approach to a
people centric approach
 Service providers will compete more on their customer-care
standards
 Ultimately however it will be consumers who decide what
model works.
 To support convergence regulators have a role to play in
ensuring:
 Consumer expectations are met – complaints/enquiries/information
 Fair and robust competition
 Support innovation in new converged services through a
Harmonised and Flexible approach to Spectrum Management
www.comreg.ie
Thank You!
Further Information
[email protected]
www.comreg.ie
www.askcomreg.ie
www.callcosts.ie