European Commission plans to overhaul state funding for public broadcasters seem to be on the right track, commercial and public-service broadcasters said Tuesday. Indications from Competition Commissioner Neelie Kroes are that the regulations won’t be unpalatable to either group, they said. But whether public-service broadcasters should get taxpayer money to compete among digital media remains an “emotional” question, said Ross Biggam, director general of the Association of Commercial Television in Europe.
A British Telecom trial of Phorm starts Tuesday, the behavioral advertising company said Monday. The carrier’s customers are being invited to participate in the program, BT Webwise, over several weeks, Phorm said. If the pilot succeeds, the technology will be used throughout the telco’s network, it said. A BT spokesman said the company hopes to see 10,000 customers take part in the trial, which will run at least four weeks, the BBC reported. Subscribers invited to take part will see a special Web page when they start browsing and can opt in or out or seek more information, it said. The U.K. Department for Business, Enterprise and Regulatory Reform this week responded to questions from the European Commission about Phorm’s compliance with EU privacy and data protection rules. A statement by the department, which reportedly refused to make public its entire response to the EC, said the technology will protect privacy if: (1) User profiling is done with customer knowledge and accord. (2) The profile is based on a unique identification assigned randomly, hiding the user’s identity. (3) Search terms used by users and advertising categories exclude sensitive terms and are drawn widely to avoid revealing user identities. (4) Phorm doesn’t collect information letting it link a user ID and profile to a living person. (5) Users are given an “unavoidable statement” about the product and are asked to choose whether to be involved. (6) Users have easy access to information on how to change their minds and are free to opt out of the program. Enforcement authorities will study future Phorm developments, the department said. But the Open Rights Group said the department’s conditions “either misunderstand or ignore a crucial stakeholder in the web- browsing process -- website owners.” Unless ISPs using Phorm’s technology to intercept communications between their subscribers and owners of Web sites their customers are visiting have both sides’ express consent, they probably will be violating the Regulation of Investigatory Powers Act, on intercepting communications, the group said. Several Freedom of Information requests seeking full disclosure of the department’s letter to the EC have been filed, the group said.
In its Wednesday approval of creation of an advisory body on telecommunications, the European Parliament urged governments to maintain net neutrality. In a series of first-reading votes on proposed changes to Europe’s e- communications regulatory framework, lawmakers endorsed putting mobile phone and broadband services under universal service rules, speedy reallocation of digital-dividend spectrum and more privacy and data protections. Network operators and software companies have major concerns about some of the proposals, they said.
The European Competitive Telecommunications Association wonders “if the European Commission would agree” with a report endorsing competition policies that favor incumbent telecommunications companies, Regulatory Affairs Director Ilsa Godlovitch said Thursday. A study of five major EU countries ranked Germany’s telecom market policies lowest, in part due to unfavorable antitrust laws and “modest” state support for Deutsche Telekom (CD Sept 4 p7). The report suggested that incumbents enjoy significant benefits, such as support for greater debt, if the state is the major shareholder, Godlovitch said. That may help incumbents, but “quite clearly signals” that providers with government support have an edge over competitors and probably are better placed for outlays such as building fiber access networks, she said. If the EU is serious about telecom competition, it must ensure that countries sell their stakes in incumbents and don’t promote national champions at the expense of competitors, she said.
A report ranking German telecommunications market policies the worst of five major EU countries has angered rivals of Deutsche Telekom. They fear that the government will use it to justify more protection for the former monopoly. A central finding of the study -- ordered by DT and done by the German Institute of Economic Research -- was that more state support for the incumbent could close a gap between Germany and the other nations. The report paints a “distorted picture” that could promote DT’s efforts for regional price deregulation, the German Competitive Carriers Association said.
The European Parliament is set to approve a wide-ranging overhaul of EU e-communications rules this month. The first- reading plenary vote comes as differences remain between MEPs and governments. The sides “seem to converge” on many matters, but it’s unclear how much they agree, said Luc Chatel, minister of state to the French economy, industry and employment minister. The EU bodies must work diligently for accord on some points, he said. The Presidency is pushing for a Nov. 27 Council accord, he said.
Proposed changes to e-communications rules could harm Europe’s satellite sector, European Satellite Operators Association Secretary General Aarti Holla-Maini said Monday in an interview. Amid European Parliament debate over European Commission (EC) plans to revamp the framework for telecommunications regulation, the ESOA has been lobbying “heavily” on several issues, she said. So far, lawmakers appear receptive to only one, she said.
Storage of Internet and VoIP traffic data in the U.K. will be mandatory as of March, under plans announced Tuesday by the Home Office. It’s seeking feedback on a proposal to extend existing traffic data-holding rules relating to fixed and mobile telephony to Internet access, e-mail and IP telephony, as the EU Data Retention Directive requires. As with earlier data retention debates, the issue continues to spark privacy concerns.
A “broad base of growth” across all markets resulted in a 13.5 percent jump in net profits the first half of 2008 over the same period last year, satellite operator SES said in an Aug. financial results presentation. Growth drivers included video broadcasting, continually rising numbered of TV and HDTV channels, and more leasing by government of capacity in commercial satellites, said CEO Romain Bausch. Demand continues to outpace supply and SES expects the trend to continue, he said. SES’s “excellent results” also showed hikes in recurring revenue -- income adjusted to remove currency exchange effects, one-time items, start-up businesses and the like -- and EBITDA (earnings before interest, taxes, depreciation and amortization), Bausch said. The company’s share buyback program, and a 2007 split from GE, contributed to a 40 percent rise in earnings per share compared to the first half of 2007, he said. SES has 1,064 transponders and 77 percent satellite fleet utilization, Bausch said. Between now and 2010 the company expects to launch 10 satellites, he said. In Europe, SES ASTRA delivers 2,433 TV and radio channels, including 42 HDTV channels, and direct-to-home satellite households in Europe grew by more than four million this year, he said. A joint venture between SES ASTRA and Eutelsat Communications known as “Solaris” will offer mobile satellite services in the S-Band, Bausch said. Eutelsat’s W2A satellite is to launch at the beginning of 2009, SES said. It will be the first commercial satellite infrastructure in Europe for transmitting video, radio, data and interactive mobile services to mobile devices and vehicle receivers, said the company. The two operators have a top-priority filing pending at the ITU and do not expect any problems, Bausch said. Under EU law, regulators must approve providers, he said. If the number of bidders is below the available capacity, each will get what it requested, but if there are more applicants than capacity, there will be a “beauty contest” that could take time, he said. The European Commission is expected to request bids this week, with applications due in early October, he said. Solaris is the only competitor with an existing satellite, he said. Meanwhile, SES Americom’s landmark deal with Comcast means the AMC-18 satellite payload is fully contracted, he said. This year will see the launch of two more satellites in North America, he said: AMC-21, set for launch Aug. 14, will provide 24 more Ku-band transponders to cover all 50 U.S. states, and Ciel-2, launching Q4 2008, is contracted entirely to the DISH Network Corporation for digital broadcasting services over North America, he said. And the U.S. government and EADS are exploring use of commercial satellites to carry sensors, or “hosted payloads,” to support operations, said Rob Bednarek, CEO of SES Americom and SES New Skies. There were several glitches this year, Bausch said. AMC-14, the only satellite expected to go into an EchoStar, not SES position, failed to launch in March and was declared a total loss. Insurance paid off, but SES has no plans to build another satellite for EchoStar, he said. Nine Lockhead Martin A2100 satellites have had varying power loss in their solar array circuits, Bausch said. The power loss cut available commercial capacity in two of the nine, AMC-4 and AMC-16. AMC-4 was co-located with AMC-2, and their payloads split between them to keep the malfunction from having any commercial impact, he said. AMC-16’s capacity reduction was resolved by an adjustment to EchoStar’s monthly bill, he said.
EU lawmakers late Monday endorsed creation of a new telecommunications authority to ensure consistent regulation but said its funding mechanism remains unsettled. Members of the European Parliament Industry, Research and Energy, and Internal Market and Consumer Protection Committees also called for a more pan-EU approach to spectrum management, better investment incentives for next-generation networks and net neutrality. Amendments to European Commission (EC) plans to reform e-communications rules, however, sparked criticism by incumbent and alternative providers.