The current state of convergence of telecommunications and broadcasting

 ■ The current state of convergence of telecommunications and broadcasting

I was invited to the investment working group at the Regulatory Reform Council to engage in debate about broadcasting reforms. I made a presentation entitled “Telecommunications and Broadcasting Convergence 2.0.” Let me share a summary of this presentation below.

What is the current state of telecommunications and broadcasting convergence?

Major developments in video services are 1) convergence, 2) smartphones and 3) large screens.

There are three trends: 1) the development of combined telecommunications and broadcasting services, 2) the trend to ‘smartphone-first’ and 3) signage and public viewings for 4K8K.

1) One example of combined services is broadcaster ‘radiko,’ which was formed out of a collaboration between an Osaka radio station and NTT and was launched as an experiment in collaboration between industry and academia here at Keio University. It has since expanded nationwide.

An example of using DTTV bandwidth for telecommunications was led by a consortium called the ‘IPDC Forum’ since 2009 whereby IPDC was spread by overlaying IP onto the broadcasting bandwidth

2) The main battleground has shifted to smartphones

There has been an unmistakable shift to ‘smartphone-first,’ whereby the central device has shifted from the television to the smartphone. There are examples, such as Abama, of broadcasters collaborating with IT companies, but this is the exception rather than the rule. Most services are pursued from the telecommunications side. Since last year, overseas OTT media streaming services such as Netflix and Amazon have taken off. With massive investments in content production, we are starting to see signs of structural change, mainly in the television sector.

3) Digital signage and public viewings through ultra high-definition 4K8K on large screen displays have expanded onto main street 

The ‘Digital Signage Consortium’ was formed 10 years ago and has become a fully-fledged business. The ‘Next Generation Contents Distribution Forum,’ which creates opportunities for 4K8K public viewings around the country, was established last year. In cooperation with MIC, NHK and NTT, there are plans for public viewings in 100 locations throughout 2020. Telecommunications will take the lead on 4K8K.

Now we must turn our attention to three examples from overseas.

1) All-IP, All-cloud media services

Amazon has built a platform upon AMS cloud infrastructure to create a multi-network, multi-device streaming system. Many broadcasting networks around the world have already begun to use it. Some networks are considering shifting entirely to a cloud-based system.

2) A platform in the United Kingdom

BBC and commercial networks have created a joint platform on YouView and FreeviewPlay. This also acts as a way to go head-to-head with OTT media services from the United States such as Netflix and Amazon.

3) Policy Responses in the United States

The way the United States deals with the system through bandwidth auctions and net-neutrality requires attention. In 2016, the FCC transferred bandwidth that was no longer being used by television networks to telecommunications operators, paying television networks a total of $10.5 billion (¥1 trillion). The aim was to promote equipment consolidation amongst regional networks and investment in mobile phone technology.