Transcript Perils of Powerpoint

Guy Berger, Rhodes University
2-4 February 2006
“The evolution of the media through
convergence”.
“Dialogue between telecom and media regulation stakeholders in
times of convergence: challenges and prospects for Africa”,
Cotonou, Benin, Panos Institute West Africa
Looking ahead…
Scenario thinking:
• “We overestimate the changes
that will occur in 2 years, but
we under-estimate those in
10”. - Pete Rinearson
• Eg. CD in 2016?
Coming up:
1.
2.
3.
4.
5.
6.
7.
8.
Origins
Converging industries
Device convergence
Production convergence
Money and mergers
Impact on regulation
Policy, law and regulation
Conclusion
1. ORIGINS
Currency of a term:
•
•
•
•
•
The word arose in the 1990s.
Part of the wave of the Internet
Hype came with $$ signs …& went…
Yet Internet continues to expand.
Some aspects are slowly becoming
commmercially sustainable.
• Convergence is coming of age.
Convergence outgrows the Net
• Convergence today is not just about Internet
– it impacts on the “old” mass media.
• As convergence grows, stand-alone &
single media enterprises will not survive.
• = sustainability challenge to a small
newspaper or radio stations AND to
cumbersome state-owned broadcasters.
• Convergence affects ALL media: big/small,
old/new, local/global, physical or electronic,
profit/public-service, individual/institutional
Concept:
• Convergence simply means
the coming together of
formerly separate things.
• But: “We are virgins” about
“convergence”
• The complication is that it
covers lots of processes …
Foundation & floors
Culture
Finance
Regulation
Production+distrib
Devices
Media sector
ICT sector
Technology
2. INDUSTRIES
CONVERGE
1. Ways of seeing …
•
•
•
•
•
Services: Telecoms – voice & data
Media: content on many platforms
Focus: changing core business (eg. Google)
Corporate: mergers and alliances
Devices: fax-copier, camera-phone, phone-pda,
PC-TV
• Mobile & fixed (note wireless ≠ mobile)
• All are due to DIGITALISATION
Converging tech, services, devices
Note:
Management
Data Networks
Between
AND
Within
Broadband
Network
Wireless
IP
PSTN
Enterprise
Laptop
Voice
Content
Camera
Mobile
Device
Service
iPod
Video
Data
PDA
Credit card
Phone
Broadcast
Source: Telkom
A global network of signals
• Convergence means linking and merging
in a common, integrated, system…
• But it’s NOT 100% seamless – there are
different technical standards, languages,
cultures, platform strengths. Therefore,
differences persist. THUS:
• Convergence = patchwork of connections.
• NOTE: divergence does not disappear!
History: once upon a time
telcoms
IT
media
Computers infiltrate
telcoms
IT
media
Internet is born:
IT=ICT
Internet
telcoms
media
What was seen as a voice network grew to
include data distribution between computers
ICT&Telecom business blur
 EBay buys Skype
 Google also into VOIP
Two principles operating
Internet
telcoms
Traditionally:
1 to 1 comms
IT=ICT Many to
Many
comms
(P2P)
begins to
emerge
media
The media gets interested
IT=ICT
Internet
??
telcoms
media
Media joins the party …
ICT
internet
telcoms
media
Adding a different principle
many to
ICT many comms
internet
telcoms
1 to 1 comms
media
1 TO MANY =
MASS COMMS
Using Internet for “new media”
ICT
new
media:
WWW
telcoms
media
TRIO now offers all 3 principles of comms:
Eg. TV broadcasters display audience SMS
Question?
 Media joins the party – but …
 As an equal player – or,
 As subordinate to the Telcos? Or ICT
companies – (eg. Google News)?
 Who moves the most? And takes
over/on the character of the others in
the process?
But there’s more …
• Prominent in “media” is Broadcasters
now transmitting content by telecoms.
• This is sending audio & video via
cables (wired) on the WWW –
streaming or downloadable.
NOW: the wireless WWW is fast
extending where & when this content
can be accessed.
And more …
• There is also growth in non-WWW wireless
publishing via GSM & 3G (SMS, MMS).
i.e. It’s convergence, but not IP-based!
• Plus there are non-broadcasters pushing
“broadcasting” content on telecoms!
Individuals, firms, political parties, telco’s…
• = Very different from the previously
separate worlds of Telecom, IT and Media!
• = BIG competition for Satellite!
Eg. Vodacom - 3G
SA cellphone firm now offering:
$2 a day access to MobTV–
E! Entertainment, FashionTV, Uefa
Champs League, Sky News, Fox,
Yebo Entertainment, Mini-soaps (eg.
Sunset Hotel).
Telkom SA – doing trials on subscription TV via broadband cables.
And yet more …
• Besides mobileTV on 3G, there’s also:
IPTV (via wired or wireless Internet)
• Yet, there is not only Telecoms and
Broadcasting convergence … as
important as this is.
• There’s also convergence within the
Media sector – eg. between Print &
Broadcast, and Radio & TV. (esp USA)
Plus …convergence:
• … between real-time transmission
(traditional broadcasting) and timeshiftable content (used to be only with
tapes, records, newspapers).
= (PVRs, Video-on-demand – which kills
watershed hour regulation).
• … between content push & pull
directions (= interactivity)
• … between consumers & producers.
What goes at the Centre?
Digital Camera
Computer
Scanner
Inkjet
Printer
xDSL
Access Point
Home Audio System
MP3
Player
PDA
Cell Phone
Cordless Phone
Base Station
What goes at the Centre?
Digital Camera
Computer
Scanner
Inkjet
Printer
xDSL
Access Point
Home Audio System
MP3
Player
PDA
Cell Phone
Cordless Phone
Base Station
What goes at the Centre?
Digital Camera
Computer
Scanner
Inkjet
Printer
xDSL
Access Point
Home Audio System
MP3
Player
PDA
Cell Phone
Cordless Phone
Base Station
The Centre is variable!
Digital Camera
Computer
Scanner
Inkjet
Printer
xDSL
Access Point
Home Audio System
MP3
Player
PDA
Cell Phone
Cordless Phone
Base Station
Viewpoint: Mass media
ICT
WWW
print
telcoms
broadcast
Other new media exploited
ICT
telcoms
WWW,
email-newsletters,
PDAs,
phones,
billboards.
print
broadcast
Print & broadcast blur
ICT
new
media
print
telcoms
broadcast
Dog and tail
•
•
•
•
Which platform is primary in general?
Who moves towards the other?
Who wags what?
In the whole converged media pack, what
platform is top dog?
• In a given media company, what is the primary
platform?
• What when “alien” players intrude?
• Do we “protect” old media (PBS, National Telco) –
or should they have to compete fairly with others?
Summing up:
• Telcoms and IT industry create Internet.
• Media industry joins the party, mainly with
Internet, but also other new ICTs.
• Lines within the media industry itself start
to blur.
• New competitors all-round: (eg. BT to buy
ITV?; BSkyB already bought ISP Easynet)
3. DEVICE
CONVERGENCE
On the consumption side
• Questions:
– Top connected device: PC or TV? Lean
forward or back?
– Convergence of Cellphone & Laptop/PDA?
– True multi-media converges text, audio, etc.
– Will it be “killer app”, killing off mono-media?
• Answers:
– Devices multi-functional
– Divergence survives
Web didn’t kill “old media” star
• Divergence PLUS Convergence = future
There will still be times when:
• Solo sound is sought after,
• It will be most efficient to
communicate with text & still
photographs,
• Couch potatoes will still want to
have unidirectional AV content
Looking ahead…
• Content may arrive on handhelds,
electronic paper, smart TV, PC, fridge, car,
clothing …
• It may ride on wired or wireless signals,
and via Internet or non-IP technologies.
• In Africa 2016, volumes of content will
come by cellphone:
– Consumers increasingly have the device
– There is a viable pay model in place –
unlike content distributed via the Web.
Difference …
• New stuff will still fullfil classic
functions of radio, TV, print
• But: content will be convertible
between text, sound & image
• And: Some content will be blended
as multi-media, where whole is
greater than the sum of parts
• Plus: Much will be interactive.
Movable feast
• Devices will offer fixed and
mobile access.
• Global trends: Σ content, any
time, any place … at a price.
(What about Universal Service?)
• Ubiquity and speed of info will be
hallmarks of Info Society.
Summing up:
• Convergence does not annihilate all
differences between devices/platforms,
• But it boosts inter-media co-operation:
– Old – Old
– Old – New
– New – Old
– Producers – Consumers.
• Requires portability & open access.
• Multiple platforming ahead.
4. PRODUCTION
CONVERGENCE
The re-making of media …
• Media as a sector:
–Distribution convergence:
• Content re-purposing
–Production convergence:
• Database publishing
• Multi-skilling
• Archiving
Organisational: 1
Setting up separate newsops in offspring
web & other
platforms
radio
magazines
television
newspapers
Organisational 2
Bringing 'em
back home:
converging
newsrooms
radio
magazines
television
newspapers
Organisational 3
Fusion: converging companies;
integrated
newsroom
web
radio
cms
television
newspapers
magazines
Evolutionary levels:
• Level one: Media sector sharing
content across platforms.
• Level two: Media sector sharing
production across platforms – with
increasing integration of newsrooms.
• Level three: Converged ownership?
5. MONEY &
MERGERS
Drivers of convergence…
History of Internet growth was due to US
military, pornography, e-business.
= irony: gives Africa ICT4D & Democracy!
BUT: “The mere fact that convergence is a
technical possibility does not explain why
convergence is taking place now” Hoogenboezem
Economic drivers
• Produce once, publish countless times
Content is costly to produce
– Cheap to reproduce electronically
– Repurpose for different platforms.
• Background of:
– Fragmentation of audiences
– Increased competition for advertising
– Global and niche opportunities
Digital economics
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•
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Intellectual Property vs Commons
Editorial integrates with Adverts
E-commerce convergence into media
Subscription, pay-per-view
Customisation
Data-mining (consumer rights?)
Cross-promotion & branding
Value chain elements:
1. Content (origination, production)
2. Services/applics (content packaging
and design)
3. Transmission/delivery (eg. ISP,
satellite, cable, mobile, wireless,
broadband)
4. Consumer devices (eg. decoder, tv,
pc, mobile, pda)
Value chain today:
• Old:
–Content creators + owners 
–Platform owners 
–Audience  (Ads/Subs)
Tomorrow: overturned?
• Now, SABC pays Sentech (signal
distributor) to deliver its broadcast.
In future, Sentech may pay SABC for the
content it seeks to deliver.
• Now, Johncom (newspapers) pays
Telkom for bandwidth to deliver Internet
content to customers.
In future, Telkom may need to pay
Johncom for content to run on its pipes.
Content folk in new food chain:
• New: channels & carriers dominate?:
– Platform 
– Content creators + owners 
– Audience
• New: connectivity cheap, content???
• New: disintermediation:
– Advertisers  Audience (bypass Media)
• New: consumers becomes producers:
– Audience  P2P (& blogging).
Summing up:
• Value chain is changing
• More platforms
• More producers, incl audience
= More competition
Convergence & monopoly
• “Significant Market Power” becomes an
issue –
Eg. Interconnect & common carrier status.
• Consumer Protection:
– Tariff controls when there’s monopoly?
• Child protection:
– What to do about porn online & on cellphone?
6. IMPACT ON
REGULATION
Who may do what, and how
Some Mass Media Areas:
Newspapers
Radio
TV
Telecoms
Internet
ISPs
Degrees of control:
REGULATION SELFLAISSEZ
(eg. Licensing, REGULATION FAIRE
censorship,
(industry,
(market,
police)
codes of
citizens,
conduct)
parents)
SA regulation: back then …
IBA
telcoms
Satra
broadcast
Regulatory convergence: now …
Icasa
telcoms
broadcast
Regulatory convergence: tomorrow?
Icasa
telcoms
broadcast
SA 2005: Govt power
• Policy directions - Telecoms:
– ICASA must follow everything.
• Policy directions – Broadcasting:
– Limited to broad issues and to:
• Radio frequency spectrum
• Local content
• Universal service coverage targets
– ICASA must consider any policy
direction issued by the Minister
SA 2005: Regulations
• Making regulations - Telecoms:
– ICASA regulations must be approved by the
Minister
• Making regulations – Broadcasting:
– ICASA make regulations (not local content)
– No requirement of Ministerial approval.
• Regulator council appointments issue.
• What power set-up prevails with convergence?
Complications for 2006:
• New ministerial power – unconstitutional?
• Licensing Content Producers?
– Will SABC need licence to broadcast through other
means? Eg. Via Wifi spectrum?
– Offshore originators? Businesses? Individuals?
• Consumers?
– Need to pay TV licence for viewing via PC or cell?
• Owners?
– Cross-ownership? Foreign ownership?
2006:Tech Neutral regulation?
• Should all (and any) channels equally attract:
– Local content/ownership obligations?
– Universal access?
– Language mix requirements?
– Electoral balance?
• Or should it be specific providers (eg. SABC,
community broadcasters) who have conditions,
irrespective of channel?
• Desirability of content regulation? Practicality?
Regulate the regulatable?
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SA: 250 000 movies, 11m web pages
Heavy touch vs light touch philosophy
Penetration & scale as issues
Joint regulation, self-regulation
Active vs passive (fetch vs push)
Media literacy & parental regulation?
SA: draft licence categories 04
• Network facility provider:
– cables, transmitters, satellites.
• Network service provider:
– bandwidth, broadcasting.
• Application service provider:
– telephony.
• Content applications provider:
– various broadcasters.
SA: final licence categories 06
• Network facility provider:
– cables, transmitters, satellite transponder.
• Network service provider:
– transmission systems
• Electronic Comms service provider:
– (excl Content Providers; Broadcasting)
• Broadcasting service (Unidirectional)
• Radio frequency licenses
Summing up:
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A single regulator logical, but…
Practicalities and complexities
What model of power prevails?
“tech neutral”, but not with classic broadcast!
Regulating channels and/or providers?
SA 2006: Licences for infrastructure, some
services, but NOT for applications or content.
7. POLICY, LAW,
REGULATION
Transition from “a” to “b” …
• Current licences were service-specific as well as
technology specific:
Telecomms
Broadcasting
- PSTS
- Free to air TV
- VANS
- Free to air radio
- Mobile
- Signal distribution
Aim: to licence different parts of comms chain.
Pressures of opportunity-cost led SA Govt to rush
New SA laws now immanent
• Three year process replacing the old:
– Icasa (regulator) law
– Broadcasting laws
– Telecom laws
• Convergence Bill -> Electronic Comms Act
• Icasa Amendment Bill
• Problem: Lack of policy and process
Culminates in 2 draft bills
No definition of “convergence” → major rewrite
Final law is very different to earlier Bills!
Value added services
Former Approach to Licensing
This kind of old licensing = limited competition.
Now - horizontal
Everything that can be
conveyed across network
Content
Exempt
Applications
Communication Service
Communication Network
Prepares content for
conveyance across
networks
Conveyance of content
across a
communications network
Class
Facilities/transmission
Individual
Bill’s classes of licenses
• Individual licences
– Network services
– Frequency spectrum licences
– Broadcasting licences
• Class licences
– Communications services
• No licences needed
– Content producers
• A huge challenge for the Regulator to interpret
what counts as services and applications.
Summing up
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•
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•
Very complex transition.
Rushing convergence is false speed.
Separate policy and law-making phases
What principles should guide the
Regulator in interpreting the law?
• There are longterm issues at stake – tech
up-take, competition, investment, culture,
freedom…
8. CONCLUSION
Not end of story…media role
SA: weak coverage
60% reports did not
define convergence
•Many reports
65%
gave
no
come from press
background
releases &
official sources
•80% didn’t
question/crit
their sources
Highway Africa study (Catia)
Kenya Mozambique DRC Nigeria Ethiopia Senegal
Finding: Media silence re:
• Info Soc agenda-setting,
• policy debate & formulation,
• implementation,
• monitoring,
• review.
Press, Policy, Regulation
• Convergence law & regulation in parts of
Africa but sans prior policy to guide it.
• Let alone a policy framework that includes
input from stakeholders in society.
• If media & regulators collaborate, they can
highlight the debates & explicate issues.
• Give media regular briefings!
• Let informed coverage bring public interests
& wisdom into the policy picture.
Organised convergence!
Merci! Thank You
Berger, G. 2001. Configuring Convergence.
http://journ.ru.ac.za/staff/guy/fulltext/nrfboo8kisbn.doc
Online column: www.mg.co.za/converse
Highway Africa 10th conference: 11-13 Sept
– regulators more than welcome!