Multiple Play:
Market and Policy Trends in OECD
Countries
Dimitri Ypsilanti
OECD
www.oecd.org/sti/telecom
ITU-T IPTV Global Technical Workshop
12-13 October 2006
1
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Po
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e
OECD Broadband (June 2006)
OECD Broadband subscribers per 100 inhabitants, by technology, June 2006
35
DSL
Cable
Other
OECD average
30
25
20
15
OECD average
10
5
0
Source: OECD
2
Convergence
(Step 1): Multiple play
Network
Services
Voice (Fixed)
Telecom
Television
Cable TV
Internet
Mobile
Network
Voice (mobile)
Other
3
Convergence
(Step 2): Next generation networks
Network
Services
Fixed
Copper
Fibre
Wireless
3G
Wi-Fi
WiMAX
Satellite
UWB
IP
platform
with
QoS
Voice (FMC)
Video
Internet
Other
4
Development of multiple play
(88 firms in 30 OECD countries)
Triple play
Double play
ADSL
Cable
Fibre
0%
20%
40%
60%
80%
100%
5
Average broadband speeds
OECD average broadband speeds, by technology, Mbit/s, September 2005
56.38
53.27
Download
Upload
7.49
6.90
0.70
ADSL
0.65
Cable
Fibre
6
Need for speed…
(10000 feet = 3.12km)
Source: http://www.farina1.com/bookmark/000004/2005/02/27/00020260.HTM
7
Broadband pricing per Mbit/s, by technology
Broadband costs per Mbit/s, by technology, Septem ber 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)
Fibre
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)
Cable
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)
ADSL
$0
$4
$8
$12
$16
8
Percentage of operators offering
unlimited nationwide calling to
fixed lines, by technology
35%
32%
29%
ADSL
Cable
Fibre
9
Average number of video
channels available, by technology
Average num ber of video channels available, by technology, Sept 2005
70
60
50
40
30
20
10
0
ADSL
Cable
Fibre
Satellite
10
Top offers (unlimited fixed calling)
Company
Free Telecom
Casema
Versatel
Kabel Deutschland
Cablecom
TeliaSonera
France Telecom
Lyse
Mstar
Smart Telecom
Noos
Telenor
TDC
Telewest
Belgacom
SBC
Type
ADSL
Cable
ADSL
Cable
Cable
ADSL
ADSL
Fibre
Fibre
Fibre
Cable
ADSL
ADSL
Cable
ADSL
ADSL
Country
France
Netherlands
Netherlands
Germany
Switzerland
Sweden
France
Norway
USA
Ireland
France
Norway
Denmark
UK
Belgium
USA
Price
USD
(PPP)
32.50
48.43
60.62
68.77
71.83
75.00
78.98
80.86
90.26
91.38
91.89
98.54
100.68
106.50
113.54
124.97
Price
USD
36.72
53.75
67.28
78.40
102.72
92.25
89.25
120.48
90.26
122.44
103.83
146.83
143.97
119.28
124.89
124.97
Down
(kbit/s)
20 000
10 000
20 000
6 200
2 000
24 000
8 000
4 000
15 000
2 000
10 000
4 000
4 096
1 000
4 000
3 000
Bit Cap
(MB)
TV
Chan
93
42
1
38
87
23
34
23
24
70
100
25
18
100
42
60
30 000
11
Top offers (timed/charged fixed calls)
Company
Yahoo! BB
NTT West
Welho
Elisa
Auna
KT
J:COM
Com Hem
Simmin
Sonera
Aliant
Bell Canada
Bigpond
AON
TCNZ
Telefonica
Type
Fibre
Fibre
Cable
ADSL
Cable
Fibre
Cable
Cable
ADSL
ADSL
ADSL
ADSL
ADSL
ADSL
ADSL
ADSL
Country
Price
USD
(PPP)
Japan
29.27
Japan
44.93
Finland
48.59
Finland
50.62
Spain
54.40
Korea
62.81
Japan
73.28
Sweden
73.49
Iceland
78.29
Finland
87.54
Canada
90.14
Canada
92.17
Australia
92.54
Austria
93.78
New Zealand 95.50
Spain
95.84
Price
USD
Down
(kbit/s)
39.22
60.20
61.71
64.28
51.13
54.01
98.20
90.39
126.05
111.18
94.65
96.77
99.01
105.03
101.23
90.09
100 000
100 000
6 000
8 000
2 048
100 000
30 000
8 000
6 000
24 000
5 000
5 000
1 500
2 048
2 000
1 000
Bit Cap
(MB)
TV
Chan
10 000
15 000
10 000
12
24
21
12
12
50
44
100
35
10
12
70
53
33
13
36
48
Bit caps and limitations on service
Com pany
Country
Bit Cap
MB
Belgium
Versatel
Iceland
Video
Voice call
Podcasts
DIVX Video
2064 kbps
64 kbps
30 m in
1.5 hours
Minutes
Minutes Dow nloads Dow nloads
500
32
1 042
17
1
Og Vodafone
2 000
129
4 167
67
3
Portugal
AR Telecom
6 000
388
12 500
200
9
Portugal
Portugal Telecom
8 000
517
16 667
267
11
Portugal
TV Cabo
8 000
517
16 667
267
11
Australia
Bigpond
10 000
646
20 833
333
14
New Zealand
TCNZ
10 000
646
20 833
333
14
New Zealand
Telstraclear
10 000
646
20 833
333
14
Australia
Optus
12 000
775
25 000
400
17
Austria
AON
15 000
969
31 250
500
21
UK
BT
15 000
969
31 250
500
21
Ireland
Eircom
16 000
1 034
33 333
533
23
Luxembourg
Coditel
20 000
1 292
41 667
667
29
Austria
inode
20 000
1 292
41 667
667
29
13
Mobile multiple play
(France)
Prices
Web access
TV
EUR 0.20 per minute
EUR 0.98 per megabyte
EUR 0-0.25 per minute for
the video + EUR 0.10 per
minute for the connection
Charged on traffic as above, but
roughly EUR 0.40 per minute of
video.
TV free on weekends for one year
30 minute sitcom EUR 10.50
1.5 hour movie
EUR 31.50
EUR 12.00
EUR 36.00
14
Slingbox
Television without borders
US
FR
15
Multiple Play and Convergence
Q
Merging of two different traditions:
–
–
Q
Q
Q
Q
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
Key policy issues
Q
Q
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);
Q
Q
Q
Q
Q
Q
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