Convergence of ICT & Broadcasting Industry

Background:

Media convergence is the provision of video programming, interactive entertainment and voice and data services over the same broadband wireless or wireline infrastructure. An example of media convergence is the integration of video, internet and mobile telephone services.

Middle East Region has got a number of opportunities for convergence in the areas of infrastructure, technology, or services provision. However, the success of those ventures would depend on the availability of a number of critical success factors in the environment where those ventures will be established.

These factors include:

• Reliable communications infrastructure.

High-speed backbones architecture:
For saving on bandwidth while being able to deliver high-quality content, providers need to analyze and study the available high-speed backbones and possible locations for Points-of-Presence (PoPs). Although fiber-optic networks are becoming readily available in the MENA region, yet other technologies like satellite are providing means for complementing the backbones and reaching closer to customer.

Broadband access technologies
For receiving media rich and interactive content, customers need to have broadband access to the PoPs. While digital subscriber technologies (xDSL) and especially ADSL are gaining popularity in the MENA region, possibility of using alternative means for broadband access like fiber or utilities (power or water) is forming a new opportunity for a cost-effective solution.

Wireless and mobile technologies
MENA region is now experiencing the global phenomenon where wireless and mobile users exceeded the fixed-line users making wireless a primarily means for reaching the masses. The promise of high-speed wireless connectivity using Wi-Max or 3G technologies makes it an eligible platform for delivery of converged services.

• Digital media.

Digitization of existing content
The MENA Region has a wealth of media content created over the past decades. This content needs to be digitized and converted into formats usable by operators & service providers to be delivered to the end customer. This provides for an exceptional opportunity to both local & multinational firms to undergo this operation.

Digital Right Management (DRM)
The digitized content whether old or new needs a mechanism to preserve the IPR of its owner as well as the rights of the operators. Thus, the need for mechanisms and technology to prohibit piracy of such content becomes imminent.

Digital Asset Management (DAM)
Needless to say, the main asset as far as any digital media delivery service is the content itself. Accordingly, both the content owner as well as the operators delivering that content to the end customer need elaborate means to ensure that this asset is well managed & maintained. With any digital media network, the elements of DRM & DAM are of major importance.
Encoding technologies
Encoding for a Digital media network & content delivery services especially in the area of entertainment is a major component of the supply chain. All the content has to be properly encoded for the appropriate medium of delivery as well as the receiving equipment. On the other hand, encoding can be very crucial in the billing process as on-demand services and subscription based services.
Rich customer experience
Customer experience is the quality of the experiences apprehended by a customer resulting from direct or indirect contact with any touch point of a digital media service, including marketing, branding, customer service, support, in-store experience, usage of a product, or service, etc. The quality of the customer experience at any touch point individually can affect the overall relationship a customer has with a digital media provider or content developer.
This should be manifested in the ways content is packaged, bundled services, CRM, billing as well as the service diversity to satisfy different tastes & demographics.

• Regulatory framework.

Deregulation and Competition
Entry barriers need to be eradicated to enable participation of competent players in all segments of the market. Safeguards are crucial to protect niche players and new entrants against larger or dominant providers. Yet, those measures need to be crafted in a manner that wouldn't provide a disincentive for investments to be made by larger participants.

Technological Neutrality
As a means for empowering innovation and entrepreneurship, regulators need to consider a neutral approach for licensing where they would be licensing delivery of services irrespective of the means to be used for its delivery. This would require a new approach for management of scarce resources like spectrum and numbering as well as right-of-way. However, regulators need to protect the interests of the consumer by guaranteeing certain quality-of-service parameters that would assure the successful delivery of the services.

Intellectual Property Rights (IPR)
In most of the MENA region, and inline with the WTO commitments, measures have been put in place concerning IPR protection. However, best practices need to be shared concerning the best means for enforcing such measures.

• Conducive market conditions.

Due to the economies of scale associated with some of the activities in the convergence industry, presence of harmonized markets of adequate size is crucial for the success of such products. Hence, deregulation and integration of local and regional markets in the MENA region would be a critical success factor