QUESTIONNAIRE
“THE EVOLUTION OF NEW SERVICES ON TELECOMMUNICATIONS NETWORKS”
The purpose of this questionnaire is to set out a possible approach to the regulation of new services on
telecommunications networks in Jordan in light of the recently issued “Statement of Government Policy 2012
on the Communications, Information technology, and Postal sectors” (hereinafter, Policy) which Section 3.5 is
devoted to “Convergence”.
1. The economic and technological context
In the latest years the telecommunications market around the world has shown a tendency towards the
decrease of voice services and the increase of data services. This phenomenon is visible through the analysis
of both traffic and revenues data in most developed countries.
The rising consumption of data services is due to the growth of popular internet services and applications,
including VOIP applications, that are replacing the traditional voice calls, and audiovisual content delivered
over IP networks. This aspect is normally referred to as “convergence” and the new services as “convergent
services”.
Such market developments, and in particular the development of over-the-top services and the advent of
Connected TVs, are pushing traditional broadcasters and telecom operators to adapt their business models,
protect existing sources of revenue and seek new ones, under the general umbrella of convergent services.
Technological developments (e.g., increased IP based delivery of content and innovation on software and
platforms) allow advertisers and audiovisual media service providers to be more creative in the way they
produce, sell and place advertising and other commercial communications in audiovisual media services. For
example, advertising can now be more targeted to the specific profile of a particular audience group or indeed
individuals.
This brings both opportunities and risks. On the one hand, it is to be welcomed, as a way to support the
audiovisual industry, increase choice and overall enhancing consumer welfare. However, there are also risks,
in particular linked to the protection of vulnerable categories such as minors, under the concept of
dissemination of harmful content, or the elderly that may be subject to isolation due to an increasing digital
divide.
2. The regulatory implications of the convergence
In this context new communication services and new media are rapidly developing, but their features and
uses, as well as the opportunities and potential dangers associated with them, have still to be explored.
It is important, therefore, to understand the role that traditional telecommunications operators are playing in
light of the transformation of the market and what is their vision of their business in the future.
At the same time, we are witnessing the birth and growth of various new intermediaries, e.g. Internet service
providers, who are not professional media operators but disseminate user-generated content through their
dedicated sites and content aggregators, and broadband operators are steadily involved in the delivery of
audiovisual content, in such a way to blur the boundaries between media and telecommunications.
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Having become a vehicle for communication by users and non-professional content creators, intermediaries
go very often beyond the role of a “mere conduit” and do perform the role of gate-keepers and guardians of
ethical standards, as happens with many international online newspapers which impose “House Rules” to
users when offering them the possibility to use their websites to post comments on the news.
The question here is not whether these intermediaries can themselves be classified as media, but whether
some of the functions they perform can be described as being media-like or editorial in nature. If
intermediaries substantially perform editorial and regulatory functions vis-à-vis both suppliers and users of
content, this would imply a certain degree of editorial responsibility and accountability for the content being
distributed.
Another important challenge for the regulators is the issue of “Net neutrality”: so far the principle of internet
access is that the end-user buys a connection and that connectivity is provided on an equal and nondiscriminatory basis for any content or application. But several initiatives are being taken by providers to
differentiate the price or the speed of connections according to the type of usage or to filter certain services (in
particular VoIP services and services which require a large consumption of bandwidth, such as video
downloading). In part this is caused by the loss of revenues from calls and SMSs that have been replaced by
‘free’ online connections through e.g. Skype, Whatsapp or other applications. Another reality is the filtering of
peer-to-peer traffic that overloads network capacity in such a way that it crowds out other types of traffic. Some
countries have already adopted legislation to ensure that telecom operators and Internet service providers do
not discriminate between different kinds of content and applications online, but the debate is ongoing: Should
net neutrality be imposed by regulation and, if so, how? And what is the consequence for business models of
operators losing revenues from open connections? More in general, how does this affect systems of
regulation?
3. The impact of new services on TRC activity
The abovementioned Policy issued in October 2012 is giving TRC an important role in the development of a
consistent regulatory framework for convergent services, and more precisely on the following actions:
1.
2.
3.
When consulted by the Ministry of ICT, re-examine the Audiovisual law and Telecommunications
law with the view of accommodating issues of convergence1;
Give inputs to the Ministry of ICT in order to re-examine the relationship between the Audiovisual
Law and the Telecommunications Law and between the two regulators in order to avoid both
regulatory overlapping and gaps2;
Launch as soon as possible a consultative proceeding to identify convergence issues and the
most appropriate regulatory approaches3. This specific line of activity is dealt with by the present
questionnaire.
Paragraph 70 of the 2012 Policy:
“The Government finds that Jordan’s Telecommunications and Audio-Visual Media Laws require re-examination to
determine whether and how they should be amended in order to accommodate issues of convergence and hereby
directs the Ministry to conduct such a re-examination, in consultation with the Commission, the Audio Visual
Commission (AVC), and other relevant stakeholders.”
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Paragraph 75 of the 2012 Policy:
“Accordingly, the Government directs the Ministry, with appropriate input from the Commission and the AVC, to closely
examine the relationship of the two laws and the two commissions in light of convergence issues. This review should
include the amendments that should be made to clarify issues of jurisdiction and to eliminate overlap in the provisions
of the two laws as well as to address any regulatory gap.”
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Paragraph 80 of the 2012 Policy:
“In order to begin the process of developing such a framework, the Government directs the Commission to begin, as
soon as possible, a consultative proceeding designed to identify the multiple issues presented by convergence and to
establish the necessary regulatory framework and time frame for follow-on proceedings to address them.
The
Government believes that this “framework proceeding” should begin with the process of gathering relevant information
from private sector stakeholders concerning plans for the development and deployment of converged networks in
Jordan, and should identify relevant issues and principles for addressing converged networks, as well as respective
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2
For the purposes of this consultative process, a preliminary investigation among stakeholders appears
necessary in order to allow TRC to acquire a basic set of information to identify the multiple issues presented
by convergence and to establish the necessary regulatory framework and timeframe for follow-on proceedings
to address them, as requested by the new Policy.
On the one hand, the Internet is becoming increasingly commercialized, as shown by ubiquitous online
advertising and other visual reminders of the profits being made in cyberspace, and its freedom is being put at
risk; on the other hand, regulators have to face the increasing diffusion of potentially harmful content and
recent discriminatory practices adopted by telecom operators to differentiate the price or the speed of
connections according to the type of usage or to filter certain services (in particular VoIP services and services
which require a large consumption of bandwidth). Therefore there is a growing recognition internationally of
the need to develop policies and regulatory frameworks for the new media, both to ensure non-discriminatory
practices and protect their freedom and to prevent the distribution of illegal and harmful content and prevent
other forms of harm that can be inflicted by the convergent communication services. There is therefore a need
to explore the possible alternatives that might be applied to convergent media services, and to detect the most
balanced option.
4. The questionnaire
The aim of this questionnaire is to understand how such convergent media services are being disseminated in
the Jordanian market, what definition may be given to them, what is the role played by the traditional
telecommunications operators, who are the service providers that are involved and which regulatory approach
might be the most appropriate in a context where the balancing of interests will be one of the heaviest
responsibilities for the regulator.
The answers to the questionnaire, that is addressed to all stakeholders actually or potentially interested in
providing services in a convergent environment (eg. telecommunications service providers, broadcasting
companies, Jordanian OTT subsidiaries), where telecommunications meet media, will be treated with highest
level of confidentiality and the results of the enquiry will be made available in an aggregate way, as general
market data.
The structure of the questionnaire reflects three ideal parts: the first part is aimed at analyzing the state of the
market in Jordan (questions 1-10). In order to ensure the accurate targeting of the questions, questions 1-3
are addressed to any respondent, questions 4-6 are mainly addressed to telecommunications services
operators and questions 7-10 are mainly addressed to operators offering or planning to offer convergent
services. The second part (questions 11-13) deals with the economic dimension of the new services, the third
part (questions 14-15) deals with the regulatory options available. Respondents are encouraged to answer as
many questions as possible, also by referring to independent studies if available.
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PART 1
State of the market
In the latest years the telecommunications market around the world has shown a tendency towards the decrease of
voice services and the increase of data services. The rising consumption of data services is due to the growth of popular
internet services and applications, including VOIP applications, that are replacing traditional voice calls, and audiovisual
content delivered over IP networks. This aspect is normally referred to as “convergence” and the new services as
“convergent services”.
Such market developments, and in particular the development of over-the-top services and the advent of Connected TVs
are pushing traditional broadcasters and telecom operators to adapt their business models, protect existing sources of
revenue and seek new ones, under the general umbrella of convergent services.
In this part of the questionnaire the respondent is required to give its view on the market developments and to declare
how these developments are affecting its business.
A. Questions for all:
1. What is your view on the development of the telecommunications and convergent services in the
Jordanian market?
e.g: Do you think the consumption of voice services will keep decreasing? Is the internet penetration
increasing, with specific reference to the mobile networks? What are the “traffic enhancing” services? Are
audiovisual contents available on telecommunications network? Please elaborate.
2. What is the role that your Company is playing in the market?
e.g. Is your business affected by the developments of the market as described? Are you already offering
convergent services such as VOIP, delivery of audiovisual content, OTT services? If yes, please explain
what services you are offering and whether they are part of a package bundled with a subscription or not.
3. What is your view on the topic of net neutrality? Do you think it should be regulated?
e.g. Do you agree on the idea that there should be rules on Internet service providers obliging them to
treat all data (or content) distributed over the Internet equally, without discriminating or charging
differentially by user, content, site, platform, application, type of attached equipment and modes of
communication? Such rules would be aimed at avoiding that telecom companies control the pipeline and
thereby remove competition, create artificial scarcity, and oblige subscribers to buy their otherwise
uncompetitive services..
B. If you are a telecom operator:
4. Please describe the value chain of the telecommunications and convergent services that you are
offering.
Is your company vertically integrated with a network operator, with a service provider, or with an
audiovisual content provider?
If your company manages a network, who is providing it with the services and the content for the end
users? If your company is a service provider, who manages its network and who provides audiovisual
content (if any) for the end user?
5. As a telecommunications operator, what are your relationships with the Over-the-top main service
providers (Google, Amazon, Yahoo, Youtube, Facebook, Twitter….)?
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Please describe any contractual relation or revenue sharing agreement you have put in place with the
OTT providers and elaborate your view on the possible development of this relationship: e.g. do you think
they should be involved in the quality of service issues and in the roll-out of broadband?
6. Are you setting restrictions to the availability of any convergent service?
e.g. Are you blocking, throttling or setting other restrictions on the carriage of internet traffic from content
providers, network operators or consumers? In particular, are you restricting the access to VOIP services
or services which require a large data consumption?
C. If you offer convergent services:
7. Please indicate what convergent services your Company is already offering and what services
your Company is planning to offer in the future (in the next 5 years).
Services4
VOIP services
Cloud services
Web portals managed by your
company
Web-tv / IPTV
Electronic/online versions of
newspapers or magazines
User generated content
Video on Demand
Other (please specify)
Present
Future
8. If the answer to question 7 is YES, are you planning to offer the services in a bundled package?
Please elaborate.
9. If the answer to question 7 is YES, do you have minimum quality of services requirements
currently in place?
Please elaborate.
10. Is your company offering or planning to offer convergent services (as those listed in question 7)
for the following devices?
[] Smartphones/tablet
[] Connected/Smart TVs
[] Set top boxes
[] Other (please specify)
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For an explanation of the convergent services, please see the annex to this questionnaire
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PART 2
Economic dimension of the sector
In order to ensure an acknowledgeable regulatory choice with respect to convergent services, the picture of what
characterises the market as to existing or planned business models has necessarily to be linked with an in-depth insight
into the revenues generated by these services.
For this purpose the perception of the economic flows that derive from each type of convergent service will lead to a
more accurate knowledge of which services will reasonable be the drivers for the development of the market. In addition
to the overall numbers, another important tool is the possibility to distinguish between the different sources of these
incomes and the penetration rate of the services as to the choices and the preferences of the consumers.
11. Please indicate the overall net revenues originated by the concerned convergent services.
Services
Net revenues (JD)
2009
Net revenues (JD)
2010
Net revenues (JD)
20112011
Est. revenues (JD)
2012
VOIP services
Cloud services
Web portals managed by
your company
Web-TV / IPTV
Online versions of
newspapers/ magazines
User generated content
Video on Demand
Other (please specify)
12. What are the main revenues source of convergent services listed in question n. 11?
[] Advertising
[] Subscriptions
[] Revenue shares from:
 internet service providers (if your Company is a network operator)
 network operators (if your Company is a service provider)
 content providers (e.g. traditional broadcasters, OTT providers etc)
 manufacturers (e.g Samsung, LG)
[] Other (please specify)
13. Please provide data showing the penetration rate of the convergent services provided by your
Company.
(e.g. time spent on average by the consumers on convergent services, data traffic generated by
convergent services, number of active 3G SIM cards allowing an Internet connection….)
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PART 3
Regulatory issues
The convergent services appearing in the telecommunications market are posing a new challenge to the convergent
regulators all around the world. On the one hand regulators should protect the freedom of speech and freedom of
expression; on the other hand, however, they have to face the increasing diffusion of potentially harmful content and
services. To strike a balance between the two contrasting needs requires a share of interest of the stakeholders.
This part of the questionnaire is therefore aimed at exploring the possible alternatives that might be applied to
convergent services in order to detect the most balanced option.
The regulatory options available to manage the convergent services are:
1. detailed regulation: convergent services should be regulated according to existing laws and provisions (e.g. a
set of detailed provisions should show what are the obligations and the prohibitions in offering convergent
services. Penalties may be applied in cases of breaches);
2. light regulation: convergent services should be regulated through general principles and guidelines (e.g. no
specific limits to the provision of services but general principles prohibiting the transmission of harmful content
etc.)
3. self-regulation: operators should agree on their own rules and adopt codes of practice which the regulators may
also formally approve. The compliance to the provisions of the codes of practice should in any case be
monitored by the regulator.
4. No regulation: the convergent service should not be regulated at all.
14. What changes in the legal/regulatory framework should take place to better regulate the
development of convergent services in the communications market?
(e.g. modifications of the Telecom Law, modification of TRC instructions on access and interconnection,
numbering, net neutrality and quality of service, pricing, consumer protection, modification of audiovisual
provisions, modification of copyright provisions…. ). Please elaborate.
15. How do you think the convergent services should be regulated?
(e.g: detailed regulation issued by a regulatory authority; light regulation providing only general principles
and guidelines; self-regulation agreed formally by the stakeholders; no regulation)
Services
Detailed
regulation
Light regulation
Self regulation
NO regulation
VOIP services
Cloud services
Web portals managed by your
company
Web-tv / IPTV
Electronic/online versions of
newspapers or magazines
User generated content
Video on Demand
Other (please specify)
Please describe the reasons why you opted for each regulatory tool.
Thank you very much for your cooperation!
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Annex
Definitions & acronyms for notions used in this questionnaire
Cloud services: services delivered over a network, typically the Internet. The cloud providers manage the
infrastructure and platforms on which the applications are run. End users access cloudbased applications through a web browser or a light-weight desktop or mobile app while the business
software and user's data are stored on servers at a remote location.
Connected TV /Smart TV: an hybrid TV set with the capability to be connected to two networks in parallel.
On the one side it can be connected to a broadcast DVB network (e.g. DVB-T, DVB-S or DVB-C). Via this
broadcast connection the hybrid terminal can receive standard broadcast A/V (i.e. linear A/V content),
application data and application signalling information. In addition the hybrid terminal can be connected to the
Internet via a broadband interface. This allows bi-directional communication with the application provider. Over
this interface the terminal can receive application data and nonlinear A/V content (e.g. A/V content streaming
on demand)
IPTV or Web-TV: Internet Protocol television (IPTV) is a system through which television services are
delivered using the Internet protocol suite over a packet-switched network such as the Internet, instead of
being delivered through traditional terrestrial, satellite signal, and cable television formats. IPTV services may
be classified into three main groups: live television, with or without interactivity related to the current TV show;
time-shifted television: catch-up TV (replays a TV show that was broadcast hours or days ago), start-over TV
(replays the current TV show from its beginning); video on demand (VOD): browse a catalog of videos, not
related to TV programming.
Net neutrality (also network neutrality, Internet neutrality) is the principle that Internet service providers and
governments should treat all data (or content) distributed over the Internet equally, not discriminating or
charging differentially by user, content, site, platform, application, type of attached equipment, and modes of
communication. Neutrality proponents claim that telecom companies seek to impose a tiered service model in
order to control the pipeline and thereby remove competition, create artificial scarcity and oblige subscribers to
buy their otherwise uncompetitive services. The remedy to these behaviors is the imposition of quality of
service standards and non-discrimination principles.
OTT (or Over-The-Top) services: services provided on the Internet by third operators independent from the
ISP, such as search engines (i.e. Google, Bing), social media (i.e facebook, twitter, LinkedIn), content
aggregators (i.e. YouTube, vimeo, daily motion), e-commerce i.e.(amazon, e-bay), hosting/file sharing (i.e.
Rapidshare, dDopbox) and portals (i.e. YAHOO, ESPN, AOL)
UGC or User-Generated content: http://en.wikipedia.org/wiki/UGC YouTube or Daily Motion are well-known
examples of websites based on user generated content.
VoIP (Voice over Internet Protocol) commonly refers to the communication protocols, technologies,
methodologies, and transmission techniques involved in the delivery of voice
communications and multimedia sessions over Internet Protocol (IP) networks, such as the Internet. VoIP is
available on many smartphones and Internet devices so that users of portable devices that are not phones,
may place calls or send SMS text messages over 3G or Wi-Fi.( http://en.wikipedia.org/wiki/Voice_over_IP)
VOD or video on demand: services provided by telecommunications operators which allow users to select and
watch/listen to video or audio content at the moment chosen by the user and at his individual request on the
basis of a catalogue of programmes selected by the media service provider.
http://en.wikipedia.org/wiki/Video_on_demand
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