Ministry of Internal Affairs and Communications’ Committee for the Future of Broadcasting Services

 ■ Ministry of Internal Affairs and Communications’ Committee for the Future of  Broadcasting Services 

This is a committee to discuss the future of broadcasting at the Ministry of Internal Affairs and Communications (MIC).

It is a committee set up based upon the recommendations of the Regulatory Reform Council. It is charged with discussing how to effectively make use of broadcast bandwidth, with an eye to the future of broadcasting. I am participating as one of the committee members.

This is the first time I have participated in discussions about broadcasting policy since my involvement in the process of setting out the legal framework for the convergence of telecommunications and broadcasting ten years ago. Having been brought onboard for the first time in ten years, I felt the pressure of being expected to lob difficult questions into the debate — just like last time.

The convergence of telecommunications and broadcasting was first debated by the Telecommunications Council in 1992, which is now 28 years ago. This topic came to prominence in 2005 with the kerfuffle over the merger of Livedoor with Fuji TV, and Rakuten with TBS. This is now 15 years ago. Apart from the advent of radiko, there have been very few developments since then.

There have, however, been developments in arguments about the system. In 2006, there was debate in the MIC Conference regarding legal issues, leading to the establishment of a legal framework for the convergence of telecommunications and broadcasting five years later. This opened the way for the separation of the tangible and intangible aspects of broadcasting, and the establishment of dual-purpose telecommunications and broadcasting bandwidth licenses. However, we have still not seen the advent of many new businesses that have taken advantage of this new system.

In this period, the installation of digital terrestrial television (DTTV) was completed.

DTTV aimed for three things: clarity, convenience and ‘rezoning’. Providing high-definition image clarity has been achieved. However, the aim of convenience, which is equivalent to IT functionality, was usurped by smartphones and the internet.

In terms of bandwidth ‘rezoning,’ it was possible to construct and have ‘tenants’ occupy virtual ‘high-rise buildings’ in the digital UHF band. However, the plan to build similar ‘high-rise buildings’ for ‘tenants’ in the freed-up VHF band has floundered.

Let’s move on to the outlook for the field of broadcasting.

I have previously made comments along the following lines: “How do we view structural changes in businesses such as smartphone-first and OTT media services? How do we view the technological possibilities being discussed in the United States and Europe around All-IP and All-cloud media services? Is this wave of businesses and technology unavoidable, or can Japan chart its own course? Our gut-reaction to these questions will determine policy.”

The total market value of television stations in Tokyo is ¥1.8 trillion. The operating profit of NTT last year was ¥1.5 trillion. We must sketch out a strategy that takes into account the fact that there is a difference in scale and investment capacity such that the annual profits of a single telecommunications company could buy out a broadcaster in its entirety.

The legal framework has been resolved, and technology should be incorporated. I believe the remaining issues are to do with business methodology and management strategies.

Some committee members have said that the internet protocol is no longer in the realm of telecommunications and should properly be thought of as infrastructure. I couldn't agree more.