Broadband Day January 28, 2002

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Broadband Day January 28, 2002
Broadband ServicesOpportunities and Challenges
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The good news first ! from countries ahead of
the pack

• Example of Korea
• Richness of the service offering has first
• of all increased Internet connectivity
• from 15 to 50 within 2 years and a half
• Internet usage has gone up dramatically
• a shift from lean back TV-watching to Internet
  lean forward
• Connections to web-sites have shifted
• from 80 foreign to 80 national
• reinforcing the development of local content and
  service providers
• Combined penetration and added-value generation
• boosted platform service competition
• benefits for the consumer, but also for the
  productivity of SMEs

Broadband services a tremendous motors of growth
for those countries that have set the right
environment
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What is essential added-value on top of
connectivity

60
50
MARGIN
40
SERVICES
30
SERVICES
SERVICES
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TRANSMISSION
TRANSMISSION
TRANSMISSION
COSTS
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ACCESS
ACCESS
ACCESS
ADSL OFFER
HIGH SPEED ACCESS
BUSINESS ACCESS
RESIDENTIAL MULTIMEDIA
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Key elements of the value-chain
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Main challengesfor the take-off of broadband
services

• The need for a stable regulatory environment
• The need to avoid applying audio-visual legal
  scheme to new content offering on broadband
• The need for generalised adoption of content
  protection technologies and solutions
• The need for an open and interoperable
  environment
• The need for an equitable revenue sharing model

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An EquitableRevenue Sharing Model
Kiosk Model i-Mode or Minitel

• Operators
• - provide access
• - billing
• - keep part of billed revenue
• Service or Content providers
• - advertise services
• - provide services
• - collect part of billed revenue

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What implies an open environment

• A set-top box which has interoperability
• Service providers having open platform accessing
  all content owners / aggregators
• Service being on demand

Open environment opportunity for players to
enter the market, for more competition and
greater economic impact
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What can be done by Member States

• Accelerate the implementation of Seville
  commitments and beyond set a national broadband
  penetration target to SMEs residential
• Create a level playing field for all network
  technologies by promptly transposing the Telecom
  Package
• Remove uncertainties about the legal regime of
  new content offering on broadband networks
• Subscribe to the EUREKA approach for RD and
  launch a program for broadband applications and
  services the CELTIC initiative
• Allow local governments to assist in bridging the
  connectivity divide in rural and disfavoured
  areas
• Create incentives for SMEs to use broadband
  services

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What actions should be takenat European level ?

• Continue close monitoring on broadband aspects
• of eEurope
• Bring mediation between the value-chain
  stakeholders by
• promoting equitable revenue sharing models
• promoting open and interoperable platforms
• and set top boxes
• raising confidence about content protection
• technologies and solutions

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ARCHITECTS OF AN INTERNET WORLD