Explosive Growth of Media

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Explosive Growth of Media

• Enhanced Consumer Choice-
• need for convergent regulation

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Explosive Growth of Media need for convergent
regulation

• Today as we enter the second digital revolution,
  the long heralded revolution has begun aided to
  the altar by the rise of the ever faster
  broadband connections and more efficient
  compression technologies and driven by powerful
  competitive forces that are now reshaping the
  communication landscape.
• The telecommunication network is the nexus for
  convergence of TV with the internet and the next
  generation of digital video service.

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Explosive Growth of Media need for convergent
regulation

• Telephone lines that once carried merely voice
  communications are now able to provide
  broadband, data services capable of delivering
  both live and on demand television programmes in
  standard and high definition formats through set
  top boxes connected to TV screen as well as PC
  and other devices.
• Exploiting the full potential of digital
  delivery this new form of distribution will
  fundamentally affect the way TV is viewed change
  channels of distribution and disrupt the
  traditional broadcasting business as the

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Explosive Growth of Media need for convergent
regulation

• Conventional boundaries of telecommunications and
  television industries collide and collapse.
• The choice of channels and programmes will
  further explode as viewers roam beyond their
  national borders of broadcast TV and access live
  and recorded programes around the world
  reflecting their interest
• Viewers will further benefit from increasing
  control watching what they want, when they want,
  where they want and on a device of their choice.
  Informitv Consulting. 2006.

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Explosive Growth of Media need for convergent
regulation

• The FICCI-Frames Report by Price Waterhouse
  Coopers for 2007 expects the Indian media and
  entertainment industry to grow at 18 CAGR to
  reach Rs. 1 trillion by 2011
• Television segment will grow by 22 per cent from
  Rs 191 billion to Rs 519 billion by 2011
• With CAS/DTH/IPTV making an entry in metros in
  2007,subscription revenues will be the key driver
  of TV revenues benefiting from increased number
  of pay TV homes as well as increased subscription
  rates.

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Explosive Growth of Media need for convergent
regulation

• The dawn of digital TV broadcasting will enable
  optimization of scarce spectrum
• This will lead to provision of additional forms
  of distribution like new TV channels
  enhancements like mobile TV reception/HDTV/IP
  based TV and introduction of new convergent
  multimedia services and new applications such as
  3G
• With digitization of content and entertainment
  it is now possible to bridge the digital divide
  effectively bringing in triple play and using the
  home TV or mobile phone as the bridging
  device.-Subgroup on Going Digital-Planning
  Commission. 2006.

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Explosive Growth of Media need for convergent
regulation

• The last ten months have seen intensive
  competition between digital CAS and DTH. IPTV has
  made a slow start .Most importantly customers
  have finally got choice of different digital
  platforms
• Reduced ARPU of telecom companies has led them to
  look to providing video content on telephone
  lines and mobiles to customers
• The next three years will see a tectonic shift in
  the manner in which distribution and broadcast of
  electronic video content is accessed by
  customers.

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Explosive Growth of Media need for convergent
regulation

• Current regulations ensure non- discriminatory
  access to all technology platforms for video
  content.
• Two recent bold decisions of TRAI to allow a la
  carte choice of TV channels to network service
  providers in DTH/analogue non CAS areas has
  ensured a balanced level playing field.
• The tight price controls are intended to empower
  customers to pick and choose premium content
  without compulsion of hard bundling by
  broadcasters.

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Explosive Growth of Media need for convergent
regulation

• With improved digital compression, the present
  regime of a 100 TV channels is going to get
  replaced by a million customized choices
  especially through IPTV
• Broadcasting in its generic shape will convert to
  narrowcasting of localized interactive content
  and finally niche-casting of consumer selected
  programmes
• Live-casts of sports and news will continue. The
  rest of content will shift to the time and
  choice individual to each customer. This throws
  many regulatory challenges which need to be seen
  holistically.

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Explosive Growth of Media need for convergent
regulation

• The International Telecommunication Union defines
  convergence as technological,market or
  legal/regulatory capability to integrate across
  previously separated technologies
• This implies the creation of a single regulatory
  authority which will regulate convergence be it
  digital broadcast through Cable/DTH/IPTV/mobile
  TV or live streaming or video on demand or VOIP.

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Explosive Growth of Media need for convergent
regulation

• The International Telecommunication Union defines
  convergence as technological,market or
  legal/regulatory capability to integrate across
  previously separated technologies
• This implies the creation of a single regulatory
  authority which will regulate convergence be it
  digital broadcast through Cable/DTH/IPTV/mobile
  TV or live streaming or video on demand or VOIP.

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Explosive Growth of Media need for convergent
regulation

• The World Bank observes that convergence allows
  new entrants to enter into protected markets.
  Telecom companies are providing IPTV and cable
  companies will provide telephony
• Convergence opens up possibility of greater
  competition that will benefit consumers with
  aggressive pricing,increased availability and
  competitive service packages.
• The challenge is to offer both service providers
  and users flexibility to deploy and enjoy new
  technologies.

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Explosive Growth of Media need for convergent
regulation

• Very few countries have a converged regulator.
  Some examples are Malaysia,UK and USA
• India had planned a converged regulator in 2001
  with technology neutral licensing and an
  Appellate Tribunal
• The Bill was a revolutionary effort to regulate
  all converged media/telecom even though it fell
  short of the Supreme Court directive of 1995 in
  terms of setting up an independent autonomous
  authority.

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Explosive Growth of Media need for convergent
regulation

• Today we do have a Universal Access Service
  Licence for 22 circles costing 1680 crores but
  many issues relating to content control and level
  playing field between telecom and cable need
  urgent settlement
• TRAI has recently launched a series of
  consultations on IPTV/HITS/Mobile TV
• The UASL license deserves a complete overhaul as
  technology is always outstripping any licensing
  regime
• The time has come to revive a Convergence
  Authority/Tribunal.

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Explosive Growth of Media need for convergent
regulation

• The challenge for the immediate near future is to
  create a level playing regulatory environment
  with clear cut light facilitative but
  transparent technology neutral consumer friendly
  regulation
• This will enable both existing incumbents and
  new entrants to compete equitably to provide all
  forms of content/services that appeals to
  individual customers rather than mass bundled
  content to customers at attractive rates.

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Explosive Growth of Media need for convergent
regulation

• In conclusion Indian media is on the cusp of
  tectonic changes in the way customers will access
  video and gaming content
• The current growth estimates show that this
  sector will easily double the annual GDP National
  growth figures
• The challenge lies in creating a legal and
  regulatory framework enabling creation of a
  viable business model while maximizing consumer
  choice serving various demographic and economic
  price points.

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Explosive Growth of Media

• Thank You

Ashok Mansukhani President Corporate Affairs
President