Direction Direction for for Global Global Environments Environments IPTV IPTVWorkshop Workshop Korea Korea 12 12-13 -13October October2006 2006 Presentation by Stuart Chiron Director of Regulatory Affairs PCCW Limited IPTV Regulation Most Mostregulation regulationwill willbe bethe thesame samefor forIPTV, IPTV,CATV, CATV,FTA, FTA, Satellite, Satellite,etc etcon onaacountry countryspecific specificbasis basis Ownership Ownership License Licenseand andOrdinance Ordinanceand andterms terms Content Contentregulation regulation Price Priceregulation regulation Trade Tradeagreements agreements(WTO, (WTO,etc) etc) 1 IPTV: Telco Entry into Content Is Isentry entryallowed? allowed? Î ÎCompetition CompetitionLaw Lawconcerns concernssuch suchas ascross-subsidization, cross-subsidization, leveraging leveragingand andbundling bundling Î ÎSafeguards Safeguardssuch suchas asseparate separatesubsidiaries subsidiariesand andaccounting accounting manuals manuals Î ÎCompetition CompetitionLaw Lawconcerns concernsgenerally generallyminimal; minimal;public publicbenefits benefits can canbe besubstantial substantial Î ÎOpen Openaccess/carriage access/carriagerequirements requirements Î ÎInternet Internetexception exception Is Isthe theCATV CATVoperator operatorproviding providingtelco telcoservices? services? Î ÎVoice Voice Î ÎBroadband Broadband Î ÎEtc Etc 2 Ownership Ownership Î Î Foreign Foreignownership ownershiprestrictions restrictions -- % %restrictions, restrictions,control control -- Board Boardlevel, level,Company CompanyArticles Articles Î Î Cross Crossownership ownershiprestrictions restrictions(media (mediadiversity) diversity) --TV, TV,Radio, Radio,Newspapers, Newspapers,Magazines, Magazines,Advertising AdvertisingAgencies Agencies --Direct, Direct,Indirect, Indirect,Disqualified Disqualifiedpersons/corporations persons/corporations Î Î Separating SeparatingIPTV IPTVcarriage carriagefrom fromcontent contentservice service Î Î Trade TradeAgreements Agreements -- Bilateral, Bilateral,Multilateral, Multilateral,WTO WTOcommitments commitments 3 Ordinance or Licensing Requirements Investment Investmentlevels levelsover overtime time Rollout Rolloutand andgeographic geographiccoverage coverageover overtime time Channel Channelintroduction introductionover overtime time License Licensefees fees Performance Performancebond bond Data Dataprotection protection May/Must May/Mustcarry carry Copyright Copyrightprovisions provisions Enforcement Enforcementpowers powers License Licenseor orasset assettransfer transfer License Licenserepresentations representations 4 Content Regulation Violence, Violence,children, children,adult, adult,gambling, gambling,language language(bars/time (bars/timeof ofday) day) Program Programclassifications classificationsand andannouncements announcements(Cat (CatI,I,IIIIand andIII) III) Education, Education,children, children,family, family,news, news,religion, religion,current currentaffairs affairs Advertising Advertising(minutes, (minutes,sponsors, sponsors,program programlength, length,products) products) Security Security(parental (parentallocks) locks) Public PublicService ServiceAnnouncements Announcements Codes Codesof ofPractice Practice Keep Keeptapes tapes 6 Price Regulation New Newentrant, entrant,no nomarket marketpower power Safeguards Safeguards(e.g. (e.g.separate separatesubs subsor oraccounting accounting manuals) manuals)ififnecessary necessary(but (butat ataacost) cost) Competition CompetitionLaw Law Deceptive Deceptiveand andmisleading misleadingadvertising advertising 7