The European broadcast landscape has seen unprecedented change in recent years. With more competition than ever before in television markets as well as new consumer behaviors emerging in the way we consume content, new regulatory issues have emerged. Areas such as mobile TV are now becoming a more important part of the broadcast equation and thus present a new set of regulatory issues. One of the most influential people in determining broadcast and media regulation in this changing landscape is Viviane Reding, European commissioner for information society and media. Reding spoke with IBC e-Daily about what the European Commission can do to ensure that Europe’s citizens have access to the very latest media services.

IBC e-Daily: What is the significance of the recent decision regarding pan-European licensing for mobile satellite services?

Reding: Given that the European space industry holds 40 percent of world markets for manufacturing, launching and operating satellites, clearly the potential of the European satellite market is huge and there is a lot to gain for satellite system operators. But until now investments by these operators have often been discouraged as a result of the 27 different national selection procedures in place. Therefore, to simplify things, create economies of scale and increase transparency and legal certainty, the European Commission, with the help of the European Parliament and the Council, adopted a single European procedure for selecting operators of mobile satellite services. This new one stop-shop-procedure will not only cut red tape and safe a lot of time but it will also enable an operator from the United Kingdom or France to compete on the same basis with a satellite operator from Sweden or Luxembourg because the selection criteria used are the same now no matter in which EU (European Union) country operators would like to offer their services.

IBC e-Daily: Why was a pan-European licensing structure not implemented sooner?

Reding: Carefully preparing such decisions takes time, especially when they are of a complex nature concerning the use of spectrum and touching often sensitive questions of national sovereignty and competences. In order to be able to organize a single selection and authorization process of operators for all member states at European level, we first need to assign the same spectrum to operators in each member state so that they can provide their satellite services at a pan-European level. Next, to prepare the mobile satellite services decision in a public consultation lasting from 30 March to 30 May 2007, we sought the advice of relevant experts and the wider public. Following all the responses received, the Commission then needs to coordinate its proposals with the 27 member states who all have to give their opinions before the decision can be taken. Given that the proposal for the selection procedure had then to pass through the European Parliament and the Council, we had an impressive run and the decision was adopted in only 10 months. So all the time-consuming preparatory coordination work was worth it. We can say that today, there is one market, not 27 in Europe for mobile satellite services. I hope that next time when we want to create economies of scale for a specific cross-border communication service, we will be able to benefit from the experience made with the mobile satellite decision and arrive at such a good result in only half the time.

IBC e-Daily: Do you believe with this latest piece of regulation, you have created a level playing field for satellite operators in mobile broadcasting that did not exist before?

Reding: Most important, the new EU decision will give industry long-term legal certainty to operate throughout the single market. Until now, in spite of the clear cross-border dimension of satellite services, existing national rules obstructed the creation of a single market for mobile satellite services by leaving the selection of operators to each member state based on different sets of criteria. The result was a patchwork of procedures, legal uncertainty and a substantial competitive disadvantage for the satellite industry in Europe. Having now the same criteria for all operators who would like to offer their services in Europe clearly creates a level playing filed and will enhance competition. Only the best with the most attractive service package will succeed.
 

IBC e-Daily: Does the failure of a mobile satellite service in Japan offer a warning for players in Europe??

Reding: Mobile broadcasting is an important innovative service, but it is just one of many potential ways for exploiting a mobile satellite system. One should also note that there are important differences between the European and Japanese competitive environments. For instance, approximately 84 percent of Japanese mobile subscriptions are for 3G  mobile services which give access to viable mobile broadcasting solutions, whereas the level of 3G subscriptions in Europe is only approximately 11 percent. Another important factor is that Japan is much more densely populated than an average European country, which makes the business case for terrestrial infrastructures much stronger. The main lesson would be an obvious necessity for the candidate mobile satellite services’ operators to weigh carefully the different factors affecting their business prospects across Europe, about which we remain optimistic.

IBC e-Daily: Do you see satellite technology playing a role in reducing the digital divide in Europe?

Reding: Mobile satellite services have the tremendous advantage of being able to cover most of the EU’s territory, thereby reaching millions of EU citizens across borders. A lot of remote rural areas will have access to high-speed Internet and other services that they previously could not access via ground-based networks. Opening areas up to services that were once considered too expensive to reach should energize local economies and could indeed help to close the digital divide. As such, they represent an unprecedented opportunity for all Europeans to access new communication services. That is also why geographical coverage and the range of services to consumers in rural or remote areas are among the criteria that will be assessed in the selection process. It is obviously in the operator’s interest to reach as many potential customers as possible by serving an area as wide as possible.

IBC e-Daily: Is there a growing appreciation within the European Commission on the role satellites and satellite technology can play on the media and communications landscape going forward?

Reding: Satellites and satellite technology in today’s world are rocketing upwards. While the satellite industry is a 77 billion euro ($112 billion) market worldwide, it has been growing at 16 percent in 2007. Of this, satellite services alone generated approximately 38 billion euros ($55.3 billion) in global revenue. Mobile satellite services will change the future landscape of media and communications as the potential of such systems is huge. They will allow us to experience services we did not know before — using a high-speed internet connection to watch TV or listen to the radio via your mobile phone or even to guarantee communication services in case the telecommunications infrastructure has broken down as a result of a natural disaster. Satellite communications are an integral — and essential — part of the new global information highway, and they will substantially improve high-speed communication throughout the entire EU.