Building Britain's Digital Future 2/3
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CHAPTER 1: INTRODUCTION AND EXECUTIVE SUMMARY
"Only a Digital Britain can unlock the imagination and creativity that will secure for us and our children the highly skilled jobs of the future... secure the wonders of an information revolution that could transform every part of our lives… enable us to demonstrate the vision and dynamism that we have to shape the future."Rt Hon. Gordon Brown MP, Prime Minister, at the Digital Britain Summit
This Chapter gives a summary of the Report’s conclusions, the ambition behind the Digital Britain programme and examines the significance of the digital sector.
CHAPTER 2: BEING DIGITAL
"The number one benefit of information technology is that it empowers people to do what they want to do. It lets people be creative. It lets people be productive. It lets people learn things they didn't think they could learn before, and so in a sense it is all about potential."
Steve Ballmer, Chief Executive, Microsoft
The Government is determined to address three obstacles to digital inclusion - availability, affordability and capability and has today announced the appointment as Champion for Digital Inclusion of Martha Lane Fox. Together with a supporting Taskforce, she will work to tackle digital exclusion and the economic and social disadvantages it can cause.
With one in 10 households currently unable to access baseline broadband networks, the UK Government’s commitment to deliver universality in today’s broadband services of up to 2Mb/s by 2012 is a significant step which will give access to everyone in the UK.
To get more people using digital services, the Government is:
- appointing a new Digital Inclusion Champion and expert Taskforce
- developing a National Plan for Digital Participation, to increase the extent and scope of digital technology use in all parts of society
- providing guaranteed funding over three years to the new Consortium of Stakeholders for targeted marketing and outreach
- making public service content providers and broadcasters more central to increasing digital participation
- developing a programme of Digital Delivery of Public Services (more in ch 8)
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CHAPTER 3(a): A COMPETITIVE DIGITAL COMMUNICATIONS INFRASTRUCTURE
“If Lord Reith was right that the broadcasting system should be a mirror of the nation’s conscience, surely our ambition should be for a broadband system that is the engine of the nation’s mind.” Lord Carter, CBE
The Report sets out a programme of broadband access and upgrade, in the context of a full review of the national communications infrastructure capability.
Fixed-line infrastructure
The Government welcome the substantial investment and upgrade that is already taking place to build the next generation broadband infrastructure. Market-led investment is set to achieve wide-scale coverage, with superfast coverage likely to be available to two thirds of the population within five years.
However, evidence, analysis and industry consensus shows that, in the absence of some market incentive, around one third of the country is likely to still be excluded by that date. The Government accepts that the case has been made for high-speed, next generation broadband services being made available to the vast majority of the UK population.
To address this:
- the Government will consult on proposals for a Next Generation Fund which will be financed through a 50 pence per month levy on all fixed copper lines
- the Fund would be used to support market expansion to the final third
Mobile liberalisation
The last 25 years have seen mobile radio networks transform our lives and businesses. Today’s expansion of data services, in particular mobile broadband, is putting increasing demand on mobile network capacity.
To address this, the Government will:
- reform and liberalise spectrum, following the recommendations of the Independent Spectrum Broker
To ensure the UK’s wireless infrastructure is right for the future, the Government will support:
- the effective transition to next generation, high speed wireless broadband;
- increased wireless coverage across the country for 3G and next generation mobile;
- the extension of reliable coverage throughout the rail network
- the maintenance of a highly competitive mobile market
The Report makes the case that strengthening and modernising the UK's communications infrastructure is essential to the future economic health of our society, individual security and ability to access information and services. To that end, the Government proposes:
- a new duty on the sectoral regulator, (Ofcom) to carry out a full assessment of the UK’s communications infrastructure every two years.
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CHAPTER 3(b): RADIO GOING DIGITAL
“One must verify or expel his doubts, and convert them into the certainty of Yes or No." Thomas Carlyle
The Government is proposing a Digital Upgrade timetable for digital radio, to be completed by the end of 2015.
The Digital Upgrade Programme includes:
- a new licensing regime for national radio multiplexes
- a revised regulatory framework for commercial radio
- all national and large stations to stop broadcasting on FM and MW
- a proposal to work with the BBC Trust to ensure extended coverage of its national DAB multiplex so it is comparable to FM
- a five-point plan to support the take-up of digital radio in cars
- a new tier of ultra-local radio, with small local community and commercial stations to occupy the vacated FM spectrum
- greater coordination across Europe on the development of digital radio services
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CHAPTER 4: CREATIVE INDUSTRIES IN A DIGITAL AGE
“This is what real revolutions are like. The old stuff gets broken faster than the new stuff is put in place. The importance of any given experiment isn’t apparent at the moment it appears: big changes stall, small changes spread. Even the revolutionaries can’t predict what will happen”. Clay Shirky, Blog Posting April 2009
Britain has an impressive track record in making and selling creative content, and building creative businesses, We have significant international success in marketing services, educational publishing, film, video games, data management, music, publishing, TV and broadcasting. Our creative industries are already a major source of jobs and national wealth, with almost 2 million people in creative employment.
As well as this industrial strength, these industries uniquely underpin our cultural identity.
Britain’s standing as a source of innovation in content and applications is disproportionate to the relative size of our overall economy. The Government wants that to continue. But digital distribution is radically changing the way we watch, listen and use content, which is having a profound impact on the market.
Evidence suggests that most people – given a reasonable choice – prefer to be legal users and buyers. To support this, Government will provide a framework for a legal market in the online sharing and using of content, offering inexpensive, convenient and easily accessible downloads. To tackle the hardcore of users who willfully continue to flout the law, a new, graduated protection regime for rights holders will be introduced.
Key actions to protect creative content include:
- giving Ofcom an explicit duty to significantly reduce unlawful file-sharing
- written warnings for those who download unlawfully, with repeat infringers facing identity release and civil action through the courts
- the Technology Strategy Board will lead and coordinate investment in Next Generation Digital Test Beds and has allocated an initial budget of up to £10- million
- a suite of technical measures, such as bandwidth reduction or protocol blocking, for ISPs to use should notification fail to stop unlawful file-sharing
- considering the case for a wider cultural tax relief, based on that currently enjoyed by the film industry, for all culturally-specific digital content
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CHAPTER 5: PUBLIC SERVICE CONTENT IN DIGITAL BRITAIN
“Let us be the generation that reshapes our economy to compete in the digital age”. President Barack Obama
Digital innovation has transformed the opportunities for delivery of a wide range of Public Service Content. Public cultural institutions such as the Tate Gallery or the British Library now reach a far wider audience than ever before. At the same time, there are increasing demands on the commercial broadcasters, who are walking away from traditional public service content obligations.
With the old, advertiser funded model under strain, gaps are emerging in the provision of valued public service content. This reinforces the importance of a strong, confident and independent BBC. It is a gold standard for British media, and the creative engine that allows many of our finest talents to grow. It has shown real strategic vision in its entry to the digital and online world over the last 15 years.
While the Government believes a multi-annual financial settlement is necessary to provide the BBC with operational stability and independence from political intervention, it also believes that the BBC should not be the sole provider of essential public content.
Responding to the changing media market, the BBC has begun to develop its role as a partner with an increasing range of other media and cultural organisations. Potentially the most significant of these is the prospective joint venture between Channel 4 and BBC Worldwide.
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The Channel 4 Corporation (C4C) has a key role to play in providing a balanced mix of public service content alongside the BBC. It is a major commissioner of independent content, and in 4IP has begun to extend delivery into the online and multimedia world. To enable C4C to continue as a catalyst for innovation in future and build on Next on 4, the Government invites the Board of C4C to respond to its proposals to:
- update the statutory remit of Channel 4 should be updated to include providing public service content, promoting creativity and new talent across all digital media
- make C4C’s remit less television-centric,
- and with clear commitments tonational and international news
- programming for older children and young adults
- original, high quality content, including film, which provides alternative perspectives and reflects Britain’s diversity
- developing content through partnerships with other British cultural organisations
In looking to secure a long-term and stable financial footing for Channel 4, the Government has considered a range of options, including a joint venture between C4 and BBC Worldwide; a merger between C4 and a private sector partner; creating a new commercial entity; and options for a standalone C4.
After detailed examination, the Government has concluded that:
- partnerships of scale between C4C and BBC Worldwide have the potential to deliver significant value to both parties
- it welcomes the discussions between the BBC and C4 on a series a joint ventures including around digital channels, advertising and DVD sales, and are ready to provide the regulatory clearance for such joint ventures, if commercial terms can be agreed.
BBC Worldwide has the potential to become a significant global rights business for Britain and restricting it to a narrow supporting role to the BBC would be a missed opportunity.
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Funding for essential pubic service content is facing an acute challenge, with provision of news in the nations, regions and locally under particular threat. Without action, there will be a significant reduction in the range and quality of commercially provided news across all media - TV, radio, newspapers and online. To address this, the Government will:
- discuss with the BBC Trust whether a portion of the projected underspend in the Digital Switchover Help Scheme could fund a range of pilots to test options for contestable funding for news before 2012
- consult on the idea of a Contained Contestable Element of the Licence Fee, primarily for news. This option would mean that, from 2013 onwards, an element broadly equivalent to the 3.5% currently ring-fenced for the Digital Switchover Help Scheme and communications could be maintained, for the clearly defined purpose of funding news.
Subject to the outcome of this consultation, the Government proposes:
- pilots of Independently Funded News Consortia (IFNCs) should be conducted in Scotland, Wales and one English region to help secure a regional and local stream of multimedia and broadcast news
- these IFNCs could include existing TV news providers, newspaper groups or other newsgathering agencies
- IFNCs would be substantially publicly financed, potentially through a Contained Contestable Element of the Licence Fee
- as well as providing cross-media news, IFNCs would provide broadcast news for the existing regional news slots of current Channel 3 Licensees, to maximise audience reach.
The framework for the independent production sector must also be updated for a digital age to support original, high quality independent content across the UK online and on air.
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To that end: the BBC’s New Media Rights Framework should be adopted more widely in Government and other public bodies who commission online content
To sustain a content production base in the Nations, the Report recommends that:
- the BBC Trust encourages the BBC to aim to exceed its targets for production in Scotland by 2012, and in Wales and Northern Ireland by 2012
- STV Group plc and UTV Ltd should be given equivalent status to qualifying independent production companies for the purposes of independent production quotas which apply to the BBC, C4, ITV plc and five. The Government proposes to bring forward legislation, following a consultation.
The Office of Fair Trading has conducted a review into the local and regional media sector. It has concluded that:
- the existing merger regime is suitably flexible and evidence-based to respond to changing market conditions and no legislative change is needed; but
- the OFT will amend their guidance to ensure that in cases relating to local and regional newspaper mergers raising prima facie competition issues, the OFT will ask Ofcom to provide a Local Media Assessment
In recognition of the changes from linear television viewing of public service broadcasting since the Communications Act 2003, the Government will discuss with Ofcom:
- how it can take account of wider delivery of public service content in future, and
- whether to amend their statutory obligation to review delivery of public service broadcasting to include the wider delivery of public service content
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