Abstract

Although the telecommunications, CATV, and broadcast industries were until recently carried by different means and therefore treated as mutually distinct, digital technology and with it the digital revolution are now converging these industries and the Internet into what we call "digital network industries". With the help of digitization and packet-switching, digital network industries can convert any information-be it voice, video, text or data-into digital form and transmit that digitized information across different networks without regard to the underlying network technology and platforms. In short, digital network industries are "platform independent," posing a challenge for the existing regulatory regimes of the TV (both cable and wireless), telecommunications, and broadcasting industries, each of which has its own laws, competent authorities, licensing scheme, etc. In a segmented regulatory environment, "regulation by-pass" can work against consumer welfare by distorting market competition (e.g. cross-subsidy between different sectors, unjustified tariff adjustments), creating disparities among competitors (both actual and potential), and removing incentives for technological/business innovation (e.g. preventing deployment of all-encompassing technology and limiting entrepreneurial initiatives).
In this research report, competition policies and principles for digital network industries will be explored. Moreover, the most eminent obstacles to their union will be identified and dealt with. Since both the composition of the research team and issues involved are diverse, it is not surprising that consensus cannot always be reached. In that case, all the opinions expressed will be faithfully documented.