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Business Regs surveillance & privacy

UK Music piling on lobbying – DEAct consultations delayed

The consultation on the Initial Obligations Code required as part of the Digital Economy Act has been delayed. Originally due out at the end of July it missed this date and because it has to be issued whilst parliament is sitting was not therefore published during the summer break.

This is currently slipping week by week presumably whilst the government tries to make its mind up regarding the content.  I am also told that potentially the Cost Sharing part of the DEAct might need to be referred to the European Commission which would mean a three month delay. It looks likely that the launch of the Code of Practice which has to be done in January 2011 will be a softly softly low key affair. I can’t imagine that the CoP will be in a usable state at that time.

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Business internet piracy Regs

BT TalkTalk ISPAs Judicial Reviews and Feargal Sharkey

Much in the news yesterday was the request from BT and TalkTalk for a judicial review into the Digital Economy Act. Nobody I spoke to from the ISP industry had any further details of this other than to say that Sky and Virgin were notably absent from the story line.

This is likely to be because the latter two are far more closely aligned to the content provision industry with BT and TalkTalk being really just (or largely in the case of BT) connectivity providers.

People should not get too excited at the prospect of a Judicial Review. This is just a process of checking to see that the legal process was followed. Did it receive the required number of readings in Parliament? etc.etc

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broadband Business internet online safety piracy Regs

UK Government Efforts ISP Regulation Gets Opposition from Unexpected Sources

There has been a lot in the press recently regarding Government plans to regulate the ISP industry. ISPs have been vociferous where they consider that this regulation is unnecessary and adds cost burdens that will have to be borne by consumers.

Quite pleasingly other industries which the Government is likely to think would be the beneficiaries of the legislation have also come out against it.

For example the high profile “three strikes” approach to Music Piracy whereby persistent file-sharers have their broadband cut off is attracting a lot of opposition from the music industry itself. The BBC reports:

Radiohead guitarist Ed O’Brien, a member of the Featured Artists’ Coalition (FAC), said: “It’s going to start a war which they’ll never win.”

Feargal Sharkey’s UK Music allegedly has a war chest of up to £20 million a year to lobby Government on the subject of ISP regulation. This FAC stance seems to be clear disagreement within that industry.

The leak in the Independent this week that the Queen’s Speech currently is planned to propose mandatory blocking of consumer broadband connections for child abuse images has also created a bit of a stir.

The vast majority of consumer broadband connections already have such screening and it seems that the Government is trying to make political capital out of a subject which everyone will of course support in principle.

The issue is how much effort and money will it take to cover the last few consumers not already “protected” particularly as it is smaller ISPs who are most likely to be affected. This is particularly relevant considering that all we are not talking about stopping hard core child abusers who already know how to get around the blocking.

The Register has come out with an interview on this subject with Jim Gamble, Chief Executive of the Child Exploitation and Online Protection Centre (CEOP), and effectively the UK’s leading investigator of online child abuse who has come out against legislation in this area.

There is potentially a lot more regulation in the pipeline. Somewhere in a Government office near you someone is plotting to gain more control ever our every day lives. It is at least nice to see that there are people out there with some common sense who are willing to stick their hands up and say “this is not right”.

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Business internet ofcom Regs

Ofcom report indicates reduction in music downloading

The Communications Market Report published by Ofcom yesterday has thrown up some interesting stats in subject areas regularly commented on in this blog.

For example Ofcom says that there is an overall reduction in the number of people downloading music and videos.  This overall decrease is only 1% but the number is marked in certain age groups.  15 – 24 year olds are downloading 8% fewer files and the maturer 25 – 44 age group is at it 5% less.

Now there is nothing to say that all these downloads are against the law but this must surely point to an overall reduction in illegal P2P filesharing which must in large part be down to all the high profile activity in this space of Feargal Sharkey and UK music. Any comment Feargal?

There is an awful lot of work left to be done in this area and it is going to be the subject of discussion for some years to come.  Ofcom’s chart purloined below – click twice to get a better res view.

ofcom09

Note downloading has increased amongst older folks. One imagines this age group is less likelyto illegally fileshare. Also note increase in uploading content.  This is going to be a driver for Next Gen broadband as currently being rolled out by Virgin and trialled by BT.

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Business internet

Anti-P2P Piracy Regulation Likely To Be Imposed On ISPs?

The UK Government has stirred up the industry today with a press release by the Department of Business, Enterprise And Regulatory Reform (BERR) that intimates it’s intention to regulate ISPs into assisting the music industry to combat illegal downloading.

BERR is saying that last year’s consultation with stakeholders (ISPs and music industry) showed that there is no consensus on how to address the problem and the suggestion is that it sees regulation as being necessary. The whole subject matter, however, is riddled with complexity.

In 2008 the music industry, under a new representative body known as UK Music, run by former pop star  Feargal Sharkey, began discussions with what are known as the “Big Six” ISPs. These are the large branded ISPs that actually represent the majority of the consumer broadband customers in the UK. These discussions were held in private and the rest of the industry has not been party to what was actually being said. My understanding is that the discussions centred purely around enforcement and have not gone particularly well.

The problems centre around being able to prove who is doing the downloading and what is being downloaded – most ISPs can’t tell and have no interest – this surely is a privacy issue. Then there are the costs of policing and finally the fact that none of the ISPs want to lose customers.

At the ISP Conference in London last November I sat on a panel with Feargal Sharkey to discuss this whole issue. At that time we arranged to meet again in the New Year so that the other , smaller, UK ISPs, represented by the ISP Association of which I am a council member could participate in the discussion. That meeting is scheduled for 9th February. So the position taken by BERR is in my view somewhat premature as discussions between stakeholders do not yet appear to me to have  finished.

The nature of talks now is centred around licensing and revenue models. There have been some high profile announcements recently where some big consumer ISPs have severed their contractual relationships with music content providers. This is being done because the existing business models do not work. For example music streaming is licensed on a per stream basis. As the number of streams grow ISPs have to increase their capacity to measure and account for them and the cost of doing so soon outweighs the income derived from selling access to the music. 

So they have to look for an alternative. The strong rumour is that a big UK ISP has already negotiated a deal whereby it can sell unlimited access to music for a fixed monthly fee per subscriber (word on the street is that this is  BT though there has been no offical acknowledgement of this fact).

The meeting on the 9th February is likely to centre around how other ISPs can adopt the same model to everyone’s mutual benefit. From the ISP industry perspective it makes more sense to make music easy to access legally than to drag everyone into complex legal processes which will only benefit lawyers in the long run.

BERR is also now saying that this subject area is also now going to be taken under the wing of the Digital Britain Review, the interim report for which is due out at the end of this month. I am not convinced that this interim report will show much progress. The likelihood is that another consultation will happen in the summer with a target date for legislation in the autumn.

This timetable, I believe, does not really provide enough time for sensible consideration of the legislation and if I were the Government would not want to be getting into an unpopular debate with industry in the run up to the election. There is a feeling on the ISP streets that the government is now looking to come up with some good news stories to take them through 2009 and into a notional spring General Election in 2010.

Time will tell, and soon enough. I will continue to report and comment on this subject. This post is a little longer than usual but there is a lot to talk about.

Categories
Business internet ofcom

ISPA Conference

Another busy week in prospect starting on Monday with the ISPA conference in the City of London. This is an annual event where the industry gets together to debate “commercial and regulatory issues of today and tomorrow”.

I’m on at 14.00 on a panel that discusses how ISPs can work in harmony with content providers. Other panelists are Feargal Sharkey of UK Music, Jeremy Olivier of Ofcom and Steve Purdham of We7, a music download business that was co-founded by Peter Gabriel.

This is a pretty hot topic at the moment, not only because of how piracy is hurting the music industry but also because of the pressure that legal download sources such as BBC iPlayer is placing on both ISP networks and margins.