The Information Society is becoming a reality. Its development is fuelled by the rapid technological change which is transforming the information industries. The nature and speed of this transformation may pose new challenges to policy-makers.
One of the most significant factors is the increasing use by different sectors, notably the telecommunications, media and information technology (IT) sectors, of the same technologies. Evidence of such convergence has been mounting in recent years with the emergence of the Internet and with the increasing capability of existing networks to carry both telecommunications and broadcasting services.
The phenomenon of convergence is relatively new and a range of different views exist on what its implications are for society and for economic activity. There is broad agreement that developments in digital electronics and software are creating the technological potential for a new approach to the delivery and consumption of information services. There is less agreement on how much these developments will change existing practices and over what time-scales. Some consider that convergence will lead to the complete and rapid transformation of existing telecommunications, media and information technology services in such a way that these currently separate groups of services will merge into one another, substantially blurring the previously clear distinctions between them.
Others feel that the specificity of the existing separate sectors will limit the scope for service convergence, and that the media industry has a role as the bearer of social, cultural and ethical values within our society, independent of the technology relied upon to reach the consumer. This would mean that regulation of economic conditions and that of the content of information services should be separated to ensure efficiency and quality. Others believe that, if it does occur, it will evolve over an extended time-scale.
It is nevertheless clear that the implications of these developments are potentially far reaching. The emergence of new services and the developments of existing services is expected to expand the overall information market. This will provide new opportunities for economic growth and employment. At the same time the new communication services environment will also provide opportunities to enhance the quality of European citizen's lives, by increasing consumer choice, facilitating access to the benefits of the Information Society and promoting cultural diversity.
These developments are therefore positive for European economic and social development and should be encouraged. Public policy will need to provide a supportive environment for convergence in order to ensure that the potential opportunities are grasped in a timely fashion.
What is needed now is wide ranging and deep debate on the convergence phenomenon and its implications as an input to such policy formulation. The objective of this Green Paper is to start such a debate.
This debate needs to be set into context in respect of other important Commission actions in the telecommunications, media and information technology sectors. In particular, this debate is central to the future communications landscape following the full liberalisation of telecommunications services and infrastructure by 1 January 1998. The process started by the Green Paper should ensure that during the overall review of the effectiveness of the 1998 regulatory package for telecommunications (to take place at the end of 1999), full account can be taken of the impact of convergence on that sector. Furthermore, the Cable Review, carried out in the light of liberalisation and more specifically as a result of the commitment contained within the Cable Directive[3] and the (telecommunications) Full Competition Directive[4] is the subject of a separate Commission communication. The review aims to create an open and pro-competitive market structure in the provision of telecommunications and cable TV networks which may have a significant impact on the markets affected by convergence. In particular, it will encourage competition and prevent the emergence of new anti-competitive gatekeeper positions or bottlenecks. Vigorous competition in these areas will encourage the development of innovative new services which will benefit consumers in the European Community, and will provide European industry and service providers with the expertise to compete on global markets.
Against the background of ensuring a competitive basic market structure, the timeliness of this Green Paper stems from the fact that new markets may develop rapidly, and that they will be essentially global in nature. If the applicable regulatory frameworks in individual Member States or, indeed, in Europe are not appropriate to the development of these new markets and even hinder their development, then Europe may find itself at a competitive disadvantage vis-à-vis its more flexible global competitors. This could restrict consumer participation by limiting choice and weakening consumer confidence in the new services, and have negative consequences for economic growth and employment creation in Europe.
The Green Paper addresses the nature of the convergence phenomenon, and focuses on the provision of services and the underlying networks over which they are carried. It further deals with the implications for both the shape and substance of regulation which may arise from convergence. Although the Green Paper deals with certain aspects of the regulatory framework for service provision, any future initiatives in this field would be without prejudice to existing on-going work within the Commission or the implementation of existing Community legislation.
The Green Paper does not take definitive positions with respect to new regulatory structures. Indeed, it recognises that convergence may lead to less regulation in telecommunications and media sectors, and should not lead to more regulation in areas such as IT. Rather it analyses the convergence phenomenon as evident in the market; it identifies issues relating to regulation arising from these developments, and it poses questions in relation to these issues.
All interested parties are invited to contribute to the debate by responding to these questions and by making any submission they wish on the subject. The period of such consultation is set for five months from the date of publication of this Green Paper. It is intended to produce a report on the results of the consultation by June 1998.
Submissions may be sent via E-mail, fax or post (4 copies please) to:
| European Commission, DG XIII A4 Attn. Mr. E. Lalor 200 rue de la Loi,BU31 0/62 B-1049 BRUSSELS Belgium Fax (+32 2) 296 9009 | and/or | European Commission, DG X C1 Attn. Mr. G. Paulger 200 rue de la Loi, L-102 5/25 B-1049 BRUSSELS Belgium Fax: (+32.2) 299 9201 | and/or | E-mail: convergencegp@cec.be |