Europe
: Mobile TV is a key example of the digital convergence between networks,
devices and content. And digital convergence is important because
it is a carrier of new business opportunities, new jobs and new consumer
services, which is why I have placed it at the heart of my i2010 strategy
framework for the Information Society,
Viviane
Reding ( inset )
Member of the European Commission responsible for Information Society
and Media
Television is going Mobile – and needs a pan European policy
approach
International CeBIT Summit
Hannover, Germany March 2006
But
digital convergence also creates new challenges for market players
and also for governments and regulators. I would like to address these
challenges today.
Media on the move:
an irreversible trend
Mobile TV seems
set to become the next high growth consumer technology. It is at the
crossroads of two powerful social trends: greater mobility, and new
forms of accessing media content.
1) Mobility is
a powerful driver of growth: in early 1990 even the most optimistic
forecasts for mobile phones were 40 million users worldwide by the
turn of the millennium. Today over 1.5 billion people use GSM phones
worldwide (with approximately 430 Million in Europe). This growth
continues; one million new users sign up to GSM services every day.
European industry and business have clearly benefited greatly from
these developments: a study by Deutsche Bank estimates that GSM contributes
about 2% to Europe’s GDP. This is a significant achievement.
We all know it
from our own lives. The new found mobility and freedom of communication
that GSM has given us has changed the way we work and our daily life.
Many applications were a surprise: think how SMS has created entirely
new social networks, particularly among youngsters. Mobility and mobile
systems are also helping to bridge the Digital Divide. In Asia, Latin
America and Africa we see massive take-up of mobile networks.
2) Media content
consumption is also changing. New diverse audiovisual services are
emerging, based on the internet, outside of the traditional triangle
of TV, radio and written press. A content revolution is in the making.
Internet diversifies information channels and – more far reaching
- it has a significant economic impact on business models and advertising
budgets. We can expect more personalised; time shifted; on-demand;
non-linear services. Consumers will expect more choice and more individual
treatment. On-line content markets are predicted to double in size
in the next three years to reach nearly 3bn€. The amazing growth
rate of blogs (a new blog is being created every second) is another
example that points in that direction. The success of video on demand
services is another indicator. If we use this opportunity right this
trend offers not only new growth opportunities, also a new channel
for creativity, diversity and democracy.
Media on the move:
unlocking content
Mobile TV’s
combination of mobility and personalised, on- demand consumption spearheads
the new wave of mobile content. Mobile media consumption is already
there, with the rapid rise of audio and video downloads onto portable
and 3G terminals.
Over the past
few months, millions of mobile video sessions over 3G networks in
Europe, fuelled by the emerging partnerships between content and communications
players. The 2006 World Cup here in Germany, will accelerate this
trend.
Content that is
downloaded on demand by the user – which represents most of
the content on today’s mobile networks - is known as a ‘non
linear’ service. The Commission has taken the first steps to
accompany this important evolution of the content consumption modes.
Our proposed modernisation of the “Television without Frontiers”
Directive aims to modernise the rules that govern content distribution.
The divergent rules on on-demand content and the lack of a consistent
IPR regime across Europe are holding back innovative services such
as mobile television. The modernised directive therefore, founded
on the Country of Origin principle, will tackle part of this problem
by allowing on-demand audiovisual media services to fully exploit
the EU internal market – just as terrestrial and satellite channels
have over the last fifteen years. This proposal for a modernised,
light touch directive, made by the Commission at the end of 2005,
is currently being debated with the Council and the European Parliament.
When it is approved, this European legislation will be applicable
to mobile on-demand TV content as it is now to mobile linear TV content.
It will create the legal framework which mobile on-demand TV needs
to develop in the single market. In addition, to tackle the question
of IPR, I will present a Commission communication on "Content
On line" before the end of the year.
Media on the move:
unlocking the frequencies
This development
will soon lead to a capacity barrier. The results of the first pilot
projects suggest half of European mobile phone subscribers may become
mobile TV users.In Europe, this represents up to 200 million people.
3G investors that
are deploying mobile infrastructures are already accepting that, even
with the rollout of HSDPA 3G networks, there will be a need for complementary
networks and technologies in order to meet this demand. This means
that, if we want Mobile TV to be the next economic carrier wave of
technological, industrial, and consumer services growth, we had better
make sure that we create enough space for these services to take-off.
In particular,
we have to make sure that harmonised spectrum is available across
Europe, so that consumers can access services on their travels: this
is the European freedom to move.
Access to frequencies
is characterised for the time being by a patchwork of national regulatory
and usage approaches, which has not kept pace with technological developments,
and which is not well adapted to new services such as mobile TV. If
we want European players to develop efficient business models in that
field, we need a coordinated approach on spectrum policy.
We cannot afford
to sleep on this. Actions are already well underway outside Europe.
Spectrum has been made available across the whole US territory; paving
the way for a nationwide roll-out of mobile TV networks. Japan has
developed its own technology and is planning for national deployment
this year. China is considering whether to select a technology by
the time of the Olympic Games in 2008, and has started to experiment
mobile TV in public transportation. Korea, the most advanced nation
in the field, has already opened up commercial services.
That is why we
should act now to allocate at least some common European spectrum
bandwidths for Mobile TV.
In the medium
term, as mobile TV takes off, we may need further bandwidth for the
new mobile, audiovisual services that come on stream. This means we
should start serious discussions now about the use of the digital
dividend for spectrum: including further harmonisation at EU level
of frequency bands for potential use by services such as mobile TV.
I am more and more convinced that we cannot wait until 2012 to deploy
new services such as mobile TV on a large scale. I also follow with
attention possible innovative solutions as regards mobile TV such
as the use of satellite capacities.
Mobile TV is an
opportunity for Europe. It is also a natural successor to mobile telephony.
In a first step, to stay in the game, we have to move now to create
an initial set of bands that can be used for Mobile TV. I see this
issue as a matter of urgency: decisions must be taken in the coming
twelve months.
This is a complex
task. It is not just a question of allocating frequencies. But it
also requires that we decide on consistent and workable approaches
to the terms for licensing and fees for this radio bandwidth.
This will not
be easy. But this is urgent, if we want Mobile TV to be based on European
technologies and content. European industry is at the origin of many
of technologies being used today to launch mobile TV services. The
EU-funded R&D programmes have provided significant support. Many
Member States started mobile TV pilot trials in 2005, notably the
UK, France, The Netherlands, Spain Finland, and Italy. Here in Germany,
a number of regional pilot trials also started last year, and experiments
are currently under way with the two standards currently dealt with
by the European Telecommunication Institute (ETSI), notably DVB-H
and DMB. We need now to capitalise on all these efforts and investments.
In a second step,
Member States should also seriouslyengage in the discussions on how
to capitalise on the digital dividend that will come from the switching-off
of analogue TV. Part of this discussion should be on the allocation
of channels for Mobile TV. We cannot wait until 2012 to start this
discussion, it will be too late. In a global world, Europe has to
move at the rate of our fastest competitor not our slowest member.
I therefore call
on Member States to move in a citizen-friendly and business-friendly
way, to have a light touch approach and most of all to take the right
decisions quickly and efficiently.
Media on the move:
standards & interoperability
The issue of standards
is important as well for the success of mobile TV services in Europe.
This is for several reasons: first, the choice of a standard has heavy
consequences in terms of technologies used to deploy the service and
accordingly in terms of patent ownership and royalty fees. I would
like the technologies used in Europe for mobile TV to be the best
for the consumers and for the European companies at all levels of
the value chain.
Second, the choice
of a widely accepted standard - such as GSM for mobile telephony -
is of paramount importance to get economies of scale. This is one
of the arguments put forward by us, the Europeans, to convince Brazil
and Argentina to make the choice of the worldwide deployed DVB standard
in their ongoing transition from analogue to digital television. We
need to apply the same logic in Europe as we promote abroad.
I see a clear
need to “think pan-European” whenever we look at mobile
technologies and services. With a mobile device, consumers are naturally
inclined to roam beyond their national borders. Consumers expect continuity
of service whenever a national or regional border is crossed. Member
States will need to reflect on cross-border requirements as they plan
services with operators and broadcasters. For the Commission, there
is therefore an EU internal market issue at stake here. I am convinced
we need an approach to interoperability for Mobile TV that supports
this important new market, rather than constraining it. Industry should
take the necessary steps to make interoperability possible. I hope
they will. Obviously, IPR licensing regimes should also be consistent
with this Europe wide perspective. I make an offer: if industry calls
upon the Commission to assist in achieving these goals we will do
all that we can to assist.
In addition, interoperability
does not just have a technical dimension, but also a regulatory dimension
requiring a pan-European approach: sufficient clarity and flexibility
of authorisation rules at Member State level is required. Licensing
regimes must make sense in terms of the Internal Market that will
govern the deployment of Mobile TV infrastructures.
Last but not least,
I see a great challenge for European audiovisual content providers,
i.e. to develop new, attractive formats and original contents, for
a mobile consumption. While the US content industry is already working
on this – for example by adapting the most acclaimed TV series
to consumption on a mobile phone – we seem to be lagging behind
here in Europe!
Media on the move:
a European approach
These considerations
point in one direction: we need a pan-European approach to set conditions
for a rapid and wide deployment of mobile TV. Europe has led the race
to develop Mobile TV technologies. We now need to facilitate deployment
and market developments, and I want to share with you what I consider
would be a realistic approach to that end.
In the very short
term, we should concentrate on three clear areas of activity.
First, over the
next 12 months we need a minimum harmonisation of radio bands at European
level to allow Mobile TV services to get started. We urgently need
to check the technically feasibility of making such spectrum available
and to give legal certainty for a start up phase Europe wide markets
for mobile TV in Europe.
Second, Member
States must accelerate discussions on the use of the digital dividend,
including the possibility to harmonise some of it at EU level. The
“Regional Radio Conference 2006” (RRC 06) and the “World
Radio Conference 2007” are important milestones for this debate,
because they will define frequency plans for the future. The EU needs
to be in the driving seat in these for a, with clear and consistent
positions for the use of the dividend.
The Commission
is working on both these issues with the Radio Spectrum Policy Group
of the Member States. And I trust that we can expect this group to
produce opinions that will assist Europe’s position. They have
already supported us in maintaining flexibility on the use of the
future dividend. By October I expect their opinion that it is feasible
to make spectrum available for mobile TV, taking the results of the
Regional Radio Conference into account. By early next year they should
take a position on the use of the digital dividend.
The third area
of immediate activity is for industry. We need undivided support and
commitment from industry. Industry should come up with a set of recommendations
during 2006. These recommendations should give a clear and reasoned
position on spectrum requirements. I also expect concrete proposals
on a Europe-wide approach on standards, interoperability and coverage.
We also need an elaboration of the business case for these developments:
market prospects, business models and development scenarios under
different assumptions of the pathway to analogue switch-off and authorisation
rules.
These are the
essentials to move forward. I will follow developments of this hot
topic with interest and will come forward with a Communication early
next year - this communication will be called "Strengthening
the Internal Market for Mobile TV" - based on the results of
the work we get done this year and proposing specific further steps
to unlock the potential of Mobile TV.
Conclusions
Ladies and gentlemen,
The elements I
have outlined are my proposals to develop a European approach on mobile
TV issues in Europe.
Little will happen
without the readiness of Member States, industry and other stakeholders
to act jointly with the Commission, by actively helping to develop
a European strategy for Mobile TV. This is just one more concrete
example that we need a partnership on a coherent European approach
to spectrum. I am prepared to promote the much-needed dialogue at
European level. But you should also be prepared to deliver your part
of the deal.
The opportunities
for growth are there. Many new European jobs can be created. Mobile
TV is a perfect and concrete example of the opportunities that digital
convergence offers. It is a key step towards the deployment of innovative
wireless technologies in Europe. Let’s face this challenge together.