ITC Opinion On Optical Fibre Networks

The ITC has published a memorandum which has been submitted to the Trade and Industry Select Committee investigation into optical fibre networks; it outlines ITC policy on the following:

• The impact on broadcasters of the convergence of broadcasting, information technology and telecommunications.

The ITC sees the main impact of convergence will be in increased competition, with competition for viewers’ attention growing. The impact on established broadcasters is likely to be long term; a result of this will be a diminishing share of viewing and advertising revenue for terrestrial channels. A result of such would be, the ITC suggests, a reduction in sums paid to the Exchequer by franchisees. This would ensure quality programme services. The ITC also suggests that the new technologies present fresh opportunities to established broadcasters.

Another area which gets special mention is the development of digital television. The ITC, after a public consultation, is in favour of an all-digital terrestrial television service; however, the path will not be straight forward, and viewers’ interests will need to be safeguarded.

• Whether it would be possible to regulate the content of broadband networks, as they become increasingly international, and the difficulties in determining what is being carried over the networks.

The fact that it is difficult to regulate does not mean to the ITC that the licence requirements are invalidated, nor that it will become difficult to maintain in the foreseeable future; as the services become more established they will be easier to control. The onus is on each licensee to comply with the terms of the Broadcasting Act 1990.

• The provision of broadcast entertainment services via public telecommunication operators such as BT

There is no reason why BT should not apply for the licence of delivering television programmes to a local area, in the same way as any other company. One issue which the ITC addresses is that BT should be allowed to provide entertainment services as of right; the ITC’s franchises give exclusive rights. To deprive cable operators of this exclusivity would be a substantial disincentive to further investment. The industry is still at a crucial early stage, with only 3 million out of a possible 14 million homes passed so far. Most of the investment in cable is expected to occur over the next five years, and the ITC intends to encourage that investment by maintaining the assurances to the industry of exclusive rights to provide broadcast entertainment.

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