Thoughts on the 22 April convergence thinktank

Ashley Highfield – BBC and soon Project Kangaroo: Is net neutrality only for PSBs or for all commercial users? Content creators? Citizens? “How can we move away from price towards value-added services?” Suggests that solution is that ISPs charge for better QoS – but not by charging BBC or other content providers. 2004 – MORI research that BBC websites had “brought around 2million people online – recommended that one of our goals should be the drive take-up of the Internet” “We are about creating demand for broadband in Britain” “I don’t think its our role to invest in the infrastructure … but to drive demand”

Both he and Steve Robertson (CEO: Openreach) want “redefinition of universality” – to “reasonable speeds” – say 2Mbps. “The consumer will be confused if different content comes through a different speeds” – basis “all content on that ISP should be treated equally”

Mike Short (O2) refers to Korean IT 8-3-9 plan and international competitiveness. Broad discussion of ICT-RTD – much more i2010. Discusses “applications think-tank” – and Financial Services Authority role.

Dave Happy support “Pipe Dreams” 9 recommendations

Background paper by Foster, Robin (2007)
“digital and broadband open up the prospect of many new entrants into the media market, and remove the need for intermediation between producers and consumers” – but with 4 caveats:
“Some powerful bottlenecks will remain (even with broadband, there are still only a few alternative distribution platforms to use, and consumers face costs in switching between them);
The rationale for vertical integration that exists today will remain – securing access to content, ensuring that content can get to the consumer, reducing transaction costs, effective planning etc;
Costs of marketing and packaging content (and the risks involved) are likely to rise, putting a premium on scale and access to funding;
Synergies from exploiting content and resources across media will drive companies to operate in related horizontal markets.”
(7.4.23 at p82) Foster, Robin (2007) Future Broadcasting Regulation - An independent report by Robin Foster commissioned by the Department for Culture, Media and Sport, January, at www.culture.gov.uk
It contains some assumptions: “Broadband might only be used where the extra functionality is sufficiently valued by consumers to cover the extra delivery costs involved;” (at 7.2. 21).
Van der Berg states: “From a regulatory perspective a point-to-point network offers more possibilities for regulatory measures such as Local Loop Unbundling and Wholesale Broadband Access.” OECD (2008) Developments In Fibre Technologies And Investment DSTI/ICCP/CISP(2007)4/FINAL, 3 April at p28