June 2015

[Commentary] On 16 June 2006, a treaty agreement was signed at the ITU Regional Radiocommunication Conference (RRC-06) in Geneva, setting a target date of 17 June 2015 for the digitalization of broadcasting in Europe, Africa, Middle East and Central Asia (known as Region 1 in ITU). The change from analogue to digital television broadcasting brings opportunities and challenges for all stakeholders, from manufacturers to broadcasters and end-users. The decision not only brings possibilities for structured development of digital terrestrial broadcasting but also sufficient flexibilities for adaptation to the changing telecommunication environment. As such, it represents a major milestone in the effort to connect underserved and remote communities and close the digital divide.

A former Chair of the World Broadcasting Unions Technical Committee, and Chair of ITU-R Working Party 6C and several groups of the DVB Project, David Wood is an expert in the field of digital broadcasting. ITU asked him about the switch from analogue to digital television broadcasting and what impact this process will have on the future of television. Asked about the direction digital TV could take in the future, David Wood said, "There are several schools of thought. One is that the efficiency gains of digital broadcasting should be used to develop digital broadcasting with new services such as ultra-high definition television. Such systems are being developed internationally with four times and sixteen times the image detail of high definition television. Another school of thought is that at least part of the spectrum would be better used for wireless broadband, which would bring cash for governments by the sale of spectrum, and easier access to the Internet for the public. The Internet itself could provide television programmes as a substitute for broadcasting."

[David Wood is EBU Consultant, Technology and Innovation, at the EBU Headquarters in Geneva Switzerland]

Cincinnati Bell isn't afraid of Charter Communications' proposed acquisition of Time Warner Cable, one of its main competitors in the Cincinnati market. In fact, the telecommunications company sees the disruption created by all of the consolidation in the cable industry as a potential competitive opportunity to further enhance its broadband speeds and reach.

Cincinnati Bell's CFO Leigh Fox said that the impending deal will give it more time to respond with a greater set of broadband services delivered over its growing fiber-to-the-home (FTTH) network. "When the Comcast deal was announced, we knew that Charter was going to be in Cincinnati," Fox said. "From a timing standpoint it probably delays things, which is a positive for us, but it's still going to be Charter and we need to be prepared for another good competitor and ultimately it gives us more time." Fox cited a social media post from one of its broadband users that noted the differences in approach between Cincinnati Bell and its cable competitors. While Cincinnati Bell is focused on building out higher speed fiber-based broadband, cable operators like Charter are investing their capital in buying one another.

Consolidated Communications is aware that Google Fiber is a formidable broadband service provider, including the markets where it also offers 1 Gbps broadband, but the century-old telecommunications company says that what differentiates them from their new competitor is customer service. Speaking during the Stephens Spring Investment Conference, Consolidated Communications' President and CEO Bob Udell, said that Google Fiber has upset the status quo in the broadband market. "I can say the market disruption they have caused has had some benefits and is raising the bar for bandwidth mostly for consumers," Udell said. "In Kansas City they overlap with us on 2,500 homes and that's increased moderately." Udell added that while reports of Google Fiber's 1 Gbps service is reliable, they take a low-touch customer service approach that makes it challenging for customers to make changes.

Google’s European chief executive acknowledges that the company has mishandled its messaging in Europe and is offering an olive branch to the European Commission. Matt Brittin, who oversees Google’s European activities, said in his first interview addressing the anti-trust charges lodged against the company in April, that while the search engine company disagrees with the accusations, it remains open to a settlement agreement. “We want to be pragmatic and get to a point where we can continue to invest in building great products for everyone,” he said.

Brittin acknowledged that Google had failed to explain its business and vision to policymakers in Brussels and elsewhere in Europe, and said that the company was trying to adjust its American-rooted Silicon Valley image. He said that in countries like Germany, France or Spain, Google for too long has seemed “like a West coast-driven, liberal values thing.” “We don’t always get it right,” Brittin said. “As far as Europe is concerned: we get it. We understand that people here are not the same in their attitudes to everything as people in America.” “We just didn’t have the people on the ground to be able to have some of those conversations as we grew.” His role as president for Europe, a new position created to unify Google’s operations here, reflects that realization. Brittin said Google should better explain how it benefits Europe’s economy, culture and small enterprises. He now expects to be in Brussels at least once a month, although he declined to specify what percentage of his time he spends on public affairs.