Historically there was a clear distinction between telecommunications and broadcasting. They operated on separate networks, used different technologies and served different purposes.
Telecommunication services enabled customers to talk to one another via a network of fixed wires and exchanges. The same networks came to be used for data services, in particular to provide access to the internet. Wireless networks (such as for mobile phones) providing voice services started in the 1980s, with data and internet services following. Telecommunications was (and is) essentially about two-way communications.
Broadcasting services were, traditionally, one-way communications only with a small number of broadcasters providing programmes at fixed times on a specific piece of equipment – a radio or a TV set – to many consumers simultaneously.
Since the 1980s, a combination of increasing competition and major technology developments has changed the situation radically, particularly through the phenomenal growth of the internet and mobile telephone services. The distinction between telecommunications and broadcasting has become increasingly blurred. For example, some telecoms companies provide television services; the BBC operates one of the most popular websites in the United Kingdom and some pay television services also offer voice and broadband services.
Convergence is allowing consumers greater control over when and how they consume services. The consumer is no longer tied to accessing broadcast content at a time dictated by the broadcaster: all major broadcasters now offer TV “on demand” which, within limits, allows the consumer to decide what to watch and when. Consumers can access this material, and communicate widely, using a range of devices whenever and wherever they choose.
In addition, new types of businesses have emerged offering services and applications that take advantage of the ability to mix voice, text, video and animation, or the declining costs of production so that content can be produced by the consumers themselves, e.g. videos on YouTube and MySpace.
This process is called convergence and it has significant implications on for industry and the consumer. It will, and is, challenging existing business models, patterns of consumption, shared values/common experiences which will in turn pose challenges for the policy and regulatory framework. The current regulatory framework, set out in the Communications Act 2003, reflects the once clear differences between telecommunications and broadcasting. There are relatively basic rules about the provision of networks for both telecommunications and broadcasting which focus on competition, but there are detailed regulations for television content, and more complex regulation for radio content and media ownership. Online services and content in contrast, although subject to the general law, are not bound by any comparable external regulatory regime.
It is time to consider what the converged world will look like and the implications this will have. We need to consider how to promote growth and innovation in this converged world and ensure universal access to high quality content, while protecting the citizen from harm and ensuring consumers can access the content they want, where they want and when they want it.