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Publication of a study on very high-speed: new services, new uses and their effect on the chain of the value

Official statement of the Thursday, March 1, 2012

The general direction of competitiveness, industry and Departments (DGCIS), the general Directorate of the media and cultural industries (DGMIC), the Authority of regulation of the electronic communications and stations (ARCEP), the higher Council of audio-visual (CSA), the High Authority for the diffusion of works and the protection of the rights on Internet (HADOPI) and the national Center of the cinema and the animated image (CNC), made up in grouping of orders, elected Analysys Mason in order to carry out a study on the future uses and services, in particular audio-visual, of the networks with very high fixed flow (THD) and onimpact of the deployment of these networks in terms of development of the existing uses.

This study proposes a prospective analysis, while being based on an inventory of fixtures of the French market, a comparison with foreign countries representative as regards THD (Japan, the United States, Sweden, Australia and the United Kingdom) and an analysis of the advantages of the THD compared to high-speed.

Here principal conclusions that Analysys Mason drew from its study carried out between February and July 2011.

Paradoxically, the assets of high-speed are currently as many elements being able to limit the adoption of the THD in the short run

The good quality of the French copper network, excel it quality ratio/price of the offers with high-speed allowed emergence in France of a market high-speed among the most developed and most competitive with the world. These assets can constitute elements as many slowing down the development of the THD in the short run. In particular, the consumers yet clearly do not perceive the advantages of the THD compared to high-speed.

Currently, the benefit of the THD depend mainly on the intensity of the uses of the users

In spite of the technical superiority of the THD compared to high-speed, the contributions seem at this stage limited in terms of new services and uses, and offers THD currently made by the operators bring few additional services compared to the broadest offers with high-speed.

Consequently, in a context where information technologies and communication take an increasing importance in all the sectors of the economy and the daily newspaper of the citizens, the benefit of the THD depend primarily on the intensity of the uses. This intensity progresses quickly, in particular because of the development of the services based on the video (nonlinear), of the increase in the quality of the video formats and the simultaneous uses which generate an important requirement in flow. In practice, the THD facilitates consumption and allows the evolution of many existing services. Among those appear:
- services audio-visual in “direct access”, known as “over the top”, available on the connected television sets
- technical formats in the course of emergence (ultra-high definition, 3D) or spreading (high definition);
- services and applications based on data processing also distributed called “cloud computing”.

The THD thus allows as of today the users of many already existing services profiting from an experiment definitely more fluid than high-speed allows it.

Later on, should spread of new services “all-network” intended for the general public and ready to fully benefit from the performances of the THD: the residential videoconference, the telemedicine and the optimization of the care, telecommuting and the teleformation, of the new services of education based on the use of interactive digital tools, the social data processing, based on the principle of division of computer's resources etc

The chain of value on the THD is in full evolution. The development of the models of services in “direct access” calls into question the traditional models.

The development of the models of services in direct access and the massive arrival of the suitable for connection television sets in the hearths should be made for the benefit of consumer but could reduce the prospects for additional income that the operators would draw from the THD. Thus, the operators could be reduced to simple carriers of contents, circumvented (or “désintermédiés”) by the services in “direct access”. In the same way, the finance mechanisms of creation, which rest on the TV channels and the distributors, could be affected by the arrival of new competitors on their terminal of predilection, the television set.

Within sight of the number limited of specific services to the THD for which the users are currently ready to pay, it is difficult to precisely consider the incomes incrémentaux of the THD which makes it possible to ensure the financing of networks THD. New economic models appear between content suppliers and operators. The maturation of the market will validate the perennial economic models.

Abroad, political interventionists support the THD

The exercise of international comparison showed that the countries wanting to support the THD adopted political interventionists (incentive, governmental investment or Co-investment of the local government agencies) or regulation frameworks supporting the THD and competition.

The study also underlines that the development of the THD is often correlated with the differential of quality compared to high-speed available, although the value does not rest solely on the increase in the flow. Indeed, the access to services such as VoIP or the IPTV, not necessarily available on networks HD abroad, for this reason constitutes real benefit for certain new users of networks THD. Nevertheless, no new service or use related exclusively to the THD was still identified within the framework of this study and the differences in consumption of contents are not yet significant.

NB: One very indicates by high-speed any service of access to Internet with a flow peak going down higher than 50 Mbit/s and a flow peak going up higher than 5 Mbit/s

Consult the study of Analysys Mason.

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