Mike Byrne Commissioner, Commission for Communications Regulation

1. Mike Byrne Commissioner, Commission for Communications Regulation Telecoms Convergence and Infotainment

2. Facilitating Convergence: a Regulatory Perspective IBEC TIF: Telecoms Convergence and Infotainment Mike Byrne - Commissioner ComReg 19th October, 2006

3. Overview of ComReg • Commission established in Dec 2002 – replacing ODTR (1997) • Wide range of responsibilities in Electronic Communications (ECS) and Postal sectors • Promote Competition • Contribute to the development of the Internal EU market • Promote efficient use of Spectrum • Promote Innovation and Investment in the sector • Promote the development of the Postal Sector • Promote the Interests of End Users and to protect and inform consumers of electronic communications services • 110 people – analysts, accountants, engineers, economists, lawyers (mainly private sector experience)

4. Overall Market Revenues and Voice Traffic Annualised industry revenue for to the end of June 2006 was €4.23bn. Fixed line revenue accounts for just over half of industry revenue, while traffic originating on fixed lines accounts for 61% of total voice traffic. Annualised Revenue Q2 2006= €4.23bn Annualised Voice Traffic Q2 2006= 14.6bn mins

5. Competition in Broadband Markets • 410,000 broadband subscribers by the end of August 2006, indicating strong demand for broadband over the summer of 2006. • While DSL is still the dominant means of broadband access - growth also in other platforms. Fixed Wireless Access now second-largest platform for broadband provision.

6. High Penetration of Pay TV and Digital TV Services • Pay TV penetration in the Irish market grew by 11% in the 12 months to June 2006; 70% of TV households have a Pay TV service. • There has been some consolidation in the sector – Liberty Global, owner of Chorus, acquired NTL in late 2005.

7. Communications Prices Since January 1997, Telecoms prices have decreased by over 20%, comparedwith a 38% increase in overall prices in Ireland over the same period

8. Convergence Convergence and the Regulator Consumers More Choice Innovation Continuing the Cycle Competition More Opportunities for Service Providers Convergence is desirable – Consumer, Industry and Regulator

9. Convergence and the Consumer • More services in convenient packages • When, where and how you want them • Its about users, not devices I go to my content My content comes to me

10. Usage Levels – How Much? (%) Infotainment on the Move - Customers Usage? Usage Levels – Time of Day (%) Short, quickly-digestible ‘snacks’ of information • Average 24 mins session / during commute • Most popular content: News, soaps, music, sports…. User created content and networked communities/social networks www.myspace.com ; www.flickr.comwww ; youtube.com User generated content is driving half of US top 10 fastest growing brands – Neilsen / NetRatings Source: O2 / Arqiva Mobile TV trial, May 2006

13. BBC Web-site - customised for viewing on PDA

14. While some operators will put customer-care firmly at the centre of their businesses, some will not, and consumer choice in a competitive market will ultimately decide the fate of all service providers Challenging Environment for both Operators and Consumers! Multiple operators & service providers interacting Single operators providing multiple services New technologies, services and devices Great new opportunities and services Service providers will also compete on their customer-care standards

15. Consumer Protection – Current and Future Regulatory Concerns • Availability of service • Levels of coverage • Universal service – Narrowband only? • Services for people with disabilities • Quality / End-user Rights • End-to-end QoS and Dealing with complaints and queries • www.askcomreg.ie and www.callcosts.ie • Transparency of billing arrangements • Interoperability of services / Number portability + linked info. • Security • Privacy (esp. location information) • Disclosure of user information / legal intercept • Protection of Minors & denying access to inappropriate content

16. Innovation – Current and Future Regulatory Initiatives WAPECSWireless Access Policy for Electronic Communication Systems • Increasing Service Convergence • Demand from Spectrum Users for Flexibility • Demand for Flexible harmonisation • EU Policy to Encourage Innovation • Moves towards Spectrum Trading and less ‘C&C’ Other ComReg Initiatives • ComReg Test and Trial framework (mobile TV tests) • Wideband digital mobile data services (WDMDS) Licence scheme • The All Island Wireless initiative (with Ofcom)

17. Conclusions • Convergence will result in the delivery many services over many platforms; move from a device centric approach to a people centric approach • Service providers will compete more on their customer-care standards • Ultimately however it will be consumers who decide what model works. • To support convergence regulators have a role to play in ensuring: • Consumer expectations are met – complaints/enquiries/information • Fair and robust competition • Support innovation in new converged services through a Harmonised and Flexible approach to Spectrum Management

18. Thank You! Further Information mike.byrne@comreg.ie www.comreg.ie www.askcomreg.ie www.callcosts.ie