Koichiro Agata - Convergence of Telecommunications and Broadcasting in Japan, United Kingdom and Germany

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Convergence of
Telecommunications and
Broadcasting in Japan,
United Kingdom and Germany

Convergence of
Telecommunications and
Broadcasting in Japan,
United Kingdom and Germany

Technological Change, Public Policy
and Market Structure

Edited by

Kiyoshi Nakamura
and
Koichiro Agata

First published 2001
by Routledge
2 Park Square, Milton Park,
Abingdon, Oxon, OX14 4RN

Transferred to Digital Printing 2006

Routledge is an imprint of the Taylor & Francis Group

Edited Matter 2001 Kiyoshi Nakamura and Koichiro Agata

Typeset in Garamond by LaserScript Ltd, Mitcham, Surrey

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

British Library Cataloguing in Publication Data
A catalogue record of this book is available from the British Library

Library of Congress Cataloguing in Publication Data
A catalogue record for this book has been requested

ISBN 0-7007-1555-X

---

Contents

Peter Eichhorn

Arnold Picot

Jrg Eberspcher

Koichiro Hayashi

Martin Cave

Campbell Cowie

Greg Clark

Hajime Oniki

Sadahiko Kano

Hitoshi Mitomo

Koichiro Agata

Kiyoshi Nakamura

---

Preface

Welcome to the printed edition of papers and comments from the conference on Convergence of Telecommunications and Broadcasting in Japan, United Kingdom and Germany held at Waseda University, Tokyo, Japan on March 18, 2000. This prestigious conference was a forum for reporting on research into convergence issues for telecommunications and broadcasting and the conference program reflected important policy issues and research themes in the digital age. Since drastic changes are occurring in the telecommunications and broadcasting sectors on a global scale, this book marks a starting point for the continuing study of convergence policy issues. It is also the first book in the new Waseda/Curzon International Series.

The editors would like to thank all the individuals who proposed papers for inclusion in the conference. Without their efforts a conference of such high quality could not have been achieved. The editors would also like to thank Malcolm Campbell, President of Curzon Press Ltd, Rachel Saunders, and Takahiko Kaneko of Edition Synapse for their support.

This work was supported by the Ministry of Education, Sports, Science and Technology Grant-in-Aid for Scientific Research (B) 3268911694038, and the Waseda University Grant for International Joint Research 99C007 and 99A137, as well as a Waseda University Academic Publications Subsidy in the fiscal year 2000. The conference at Waseda University was supported by the Telecommunications Advancement Foundation and the Suntory Foundation.

Kiyoshi Nakamura, Koichiro Agata
Waseda University

---

List of Contributors

Professor Dr Koichiro Agata, Professor of Public Administration at Waseda University, Japan

Professor Dr Martin Cave, Professor of Economics and Vice-Principal at Brunei University, The United Kingdom

Dr Greg Clark, Head of Commercial Policy and Controller, Fair Trading, British Broadcasting Corporation, The United Kingdom

Mr Campbell Cowie, Senior Advisor, Commercial Policy, Public Policy, British Broadcasting Corporation, The United Kingdom

Professor Dr Jrg Eberspcher, Professor of Communication Networks at the Technical University of Munich, Germany

Professor Dr Peter Eichhorn, Professor of Public and Nonprofit Management at the University of Mannheim, Germany

Professor Dr Koichiro Hayashi, Professor of Telecommunications at Keio University, Japan

Professor Dr Sadahiko Kano, Visiting Professor in the Institute for Japanese-European Technology Studies at the University of Edinburgh, The United Kingdom

Professor Dr Hitoshi Mitomo, Professor of Telecommunications Economics at Waseda University, Japan

Professor Kiyoshi Nakamura, Professor of Industrial Economics at Waseda University, Japan

Professor Dr Hajime Oniki, Professor of Economics at Osaka-Gakuin University, Japan

Professor Dr Arnold Picot, Professor of Organization Theory at the University of Munich, Germany

PART 1

---

Telecommunications and
Broadcasting in Germany

CHAPTER ONE

---

Convergence of
Telecommunications and
Broadcasting in Germany

Technological Change, Public Policy
and Market Structure

Peter Eichhorn
Mannheim University

Technological development is integrating the former separated industries of Television, Computer and Telecommunication.

The expansion of digital technology enables electronic devices in domestic homes, free enterprise, associations (e.g. societies, federations, chambers, social insurance) and administrative authorities to be networked and allows them to connect to the outside world via the Internet. The World Wide Web is the basis for global, interactive communication.

It is not yet clear which digital communication based technology will lead to the merger of the TV-set and personal computer. Will we watch television on the computer monitor or will a keyboard allow the TV audience to go on-line with their TV-set? The terminals do not necessarily have to merge despite the uniformity of the distribution. The reason is that two user attitudes are becoming more and more visible: desk viewing (lean forward) and couch viewing (lean backward).

Furthermore, broadcasting networks can be used for telephone calls and radio and television programmes can be received via the telephone network. In August 1998 the German Federal Government took a decision on this possibility, not self-evident as, in Federal Germany, the States have the responsibility for Broadcast Regulative Laws, the Federal Government for Telecommunications Regulative Laws.

Globalisation, understood as worldwide business strategy, will also influence broadcasting.

We are looking at two different concepts: From the American point of view, broadcasting is a commodity that can be offered commercially. The Commission of the European Union seems to sympathise with this primacy of the market. In Germany, in comparison, a pluralistic arrangement is preferred: broadcasting as cultural possession and commodity. For this reason the Green book on convergence of telecommunications, media and information technology as well as a working paper summarising public consultations, published by the Commission dated 29 July 1998, receive criticism.

The pluralistic arrangement of broadcasting in Germany is illustrated by the sharing of Public Broadcasting and Commercial Broadcasting, the so-called dual broadcasting system. Licence fees, supported to a small extent by commercials, finance the public broadcasters while the private broadcasters exist exclusively through commercials. Recently the dual broadcasting system has been changing to a triple system. As a third finance model Pay TV (Subscription TV, Pay Per View and Video on Demand) is becoming prominent. A new conflict is becoming obvious between so called Free TV (financed by commercials) and Pay TV.

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