Value Explosion in Digital Economy

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Convergence of Communication Broadcasting
2002.10.31
Prof. Lee, Kark-Bum
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Agenda
Definition of Convergence
Genesis and manifestation of convergence
Drivers of Convergence
Type of Convergence
Companies action for convergence
Policy Implication
1
Lee Kark-Bum
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Definition of Convergence

• Provision of various communication services like
  text, data, image and video over the existing
  infrastructure
• Development of new infrastructure for handling
  multimedia
• transmission
• Managing of technologically and commercially
  distinct markets
• such as Broadcasting, Publishing, Cable TV,
  Fixed Voice, Cellular Mobile Services and
  Internet Services
• Integration and dimming of territory between
  broadcasting and communication

• Emerging new service with characteristics of both
  typical broadcasting and communication

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Definition of Convergence example
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Genesis and manifestation ofconvergence

• Driven by technological innovations
• Progressive integration of distinct markets such
  as IT, telecommunications, broadcasting, cable
  television into a single value chain.
• Regulation as enabler to convergence

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Drivers of Convergence

• Technology
• Digitisation of transmission and switching
  networks
• Global networks based on packet switching and
  open standards (IP)
• Increase in Processing power of Computers.
• Emergence of new applications (ICT) leveraging
  enhanced software capabilities
• Evolution of Broadband technologies(xDSL, CMTS,
  HFC, Broadband wireless- Fixed/ Mobile,
  Satellite).
• Market
• New markets and services such as Multimedia
  services,Video on demand, Interactive TV, Pay
  TV,Cable telephony,Unified Messaging services,
  Internet Telephony etc.
• Integration of content service providers with
  access providers.
• Emergence of new Market players based on
  Potential of ICT

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Drivers of Convergence (continue)

• Customers
• Option for new value added services in a modular
  fashion
• Cheaper access to communication
• Single Information Socket (for phone, data,
  video)
• Regulation
• Reduction in cost of regulation by optimum
  utilisation of regulatory resources
• Ease of Regulation and Interconnection

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Type of Convergence
Networks
Wire/wireless, public/private, Tele-/data-/mass
communication
1
Technology
Devices
Pager, cell phone, radio, TV, PC
2
Services
Text, voice, data, audio, video E-commerce
3
Enterprise
Place time
4
Language culture
Reg policy
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Convergence Network
1

• Bandwidth Need vs. Time

100.0 -
Future home Interactive TV Digital TV
Ultraband
10.0 -
Mpbs required
Interactive shopping Telecommuting Video streaming
Broadband
1.0 -
Web radio Web page E-mail
Narrowband
0.0 -
Time
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Convergence Net Devices
2
Telephone
Service
PC
TV
Cell-phones PDAs/Palm
Internet Appliances
GE, GM Boeing
PC/TV WebTV
Product
Medium
Content
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Convergence Business Service
3

• Industry Convergence

Info NP Phone Radio TV
PC
Type text voice
audio video data
Contents Providers
Collecting reptr (caller)
reptr reptr user
Processing text voice
audio video data
Storage paper amchn tape
tape disk
Platform Providers
Distribution bike network network
network network
Receiving transptn wire wireless
wireless wire
Info/Net Appliance Providers
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Convergence Regulation
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Voice
Regulated Monopoly
IP-Telphony
Deployment
Print
Digital Divide
No Regulation
Freedom of Speech
Broadcast
Standard?
Heavy Regulation
Internet TV, Radio, Film
(H)DTV?
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Companies action for convergence

• Microsoft .net strategy
• XML web service, User-oriented
• Focused on third generation Internet Provide
  same service in any different devices
• SUN Microsystems SUNONE strategy
• Open net environment
• SoD(Service on Demand) Providing information,
  data, application in any devices regardless of
  time and place
• KT (www.kt.co.kr)
• KT plan to enter into Digital Audio
  Broadcasting(DAB) business.
• KT and KTF cooperatively process DAB business
• Hanaro(www.hanaro.com)
• Plan to enter into Digital Media Center(DMC)
  business, which means transforming from analog
  cable TV broadcasting to digital one.
• SK Telecom
• Contract with Korea Digital Multimedia
  Center(KDMC) to advance to TV platform business (
  The platform that responsible for interactive TV
  broadcasting)
• Plan for Satellite DAB business with Toshiba

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Convergence trend Ubiquitous

• Ubiquitous computing
• Existed simultaneously at any place and any time
• Invisible network Person Computer Object
• IT companies strategy for Ubiquitous era
• Sony Ubiquitous value network
• Sharp/Toshiba/Hitachi/NEC Focus on developing
  core technology for ubiquitous network
• ATT Ultravailable computing (Focus on Global
  e-business)
• IBM Deep computing, automic
• Microsoft Smart MoveX, Easyliving new living
  space creation

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Policy Implication

• Status of Korea broadcasting and communication
  policy
• Separation of policy and regulation institute of
  broadcasting and communication
• Regulation for each service and media is mixed
  and inefficient
• Separated by three regulation institutes
  Broadcasting committee, Ministry of culture and
  tourism, Ministry of Information and
  Communication
• Foreign countries action
• Integration of broadcasting and communication
  policy as well as regulation institute
• Italy Integration of regulation institute
  (Autorita, 1997)
• Japan Jurisdiction of communication and
  broadcasting by Ministry of Home Affairs (2000)
• Great Britain OFCOM (Office of Communication,
  2000.12)

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Policy Implication II

• Suggestion
• Promoting convergence of broadcasting and
  communication
• - Convergence of regulation institute
• - Consistent support policy for new market
  creation
• - Abolition of unnecessary regulation and
  attract private investment
• - Maximum financial and taxation support in
  promising area
• - Positive support in industrial level to
  promote related industry
• 2. Redefine the concept of communication and
  broadcasting
• 3. Consolidation of regulation institute for
  communication market entry of broadcasting service

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Policy Implication II (continue)

• Suggestion
• 4. Revision of broadcasting law
• - Introduction regulations for satellite DAB and
  digitalization of broadcasting
• - Regulation appeasement policy for activating
  T-commerce through TV
• 5. Short-term Optimization of work process
  efficiency by close mutual cooperation among
  related institutes within present institution and
  law
• 6. Mid and long-term Adjustment of separated
  policy, institution and law related to
  communication and broadcasting
• ( 5,6 suggested by S.C.Lee, minister of MIC)