Samsung Electronics unveils the first mobile phone for the mobile wireless Internet service WiBro on Nov. 13, 2005.
The heads of two global IT leaders said at the Consumer Electronics Show in Las Vegas last week effectively declared war on conventional broadcasting. “We’re at the threshold of a new entertainment era," Intel CEO Paul Otellini said, while Microsoft founder Bill Gates said consumers will be watching fast Internet-based TV in their living rooms imminently.
Content will come not through the television networks but via the fast Internet. To make that happen, Intel and Microsoft have formed an unprecedented union of the giants, whereby Microsoft will provide programming from DirecTV, the largest satellite broadcaster in the U.S., to customers’ personal computers.
The two one-time bitter rivals have joined hands to launch something called Triple Play Service (TPS), a package of broadcasting, Internet and phone service. Over 200 companies are in competition overseas. Because using this package is 30 to 50 percent cheaper than paying the fee for each service separately, TPS is gaining in popularity.
The U.K. is the most advanced country in the field of TPS. Over 10 percent of broadband Internet users subscribe to TPS services, and TPS provider Home Choice has secured 240,000 subscribers mainly in London. But satellite cable companies are not just sitting back. British Sky Broadcasting acquired high-speed Internet company EasyNet, and British Telecom has also joined the market, with its CEO Christopher Bland saying consumers are not interested in which network the content is coming through but in quality.
Online firms are aggressive in dismantling the wall surrounding the broadcasting industry. The world’s largest Internet search engine Google is already regarded as a potential leader bringing about a seismic shift in broadcasting. Google co-founder Larry Page said the company will start selling TV programs through Google Video, providing multimedia content by CBS and NBA basketball games at a price of about US$1.50-4.00 per episode. Google is also considering selling foreign multimedia content over the Internet -- a sign that the last limits and boundaries for TV are coming down.
Apple also provides online multimedia and music content, with an episode of the ABC hit soap opera “Lost” priced US$1.99 per episode. Yahoo has announced it is launching a service called Yahoo Go, which enables consumers to log on to Yahoo sites through computer, mobile phone or television. It will first launch a free video service with commercials and start a pay-per-view service from the end of this year.
Consumers will eventually benefit from heated competition between global companies since boundaries no longer exist for TV via Internet. International calls cost only W10-30 (1-3 cent), and search engines can be accessed anywhere.
But Korea is falling behind in the global trend because of regulations and a weak system. To launch their own Triple Play Service, communication companies here should be allowed to transmit broadcasting programs and cable TV companies should be able to make inroads into Internet phone business. However, the Korean Broadcasting Commission stops communication firms from branching out, and the Ministry of Information and Communication stands in the way of cable TV firms diversifying.
Even if the two authorities were to change their minds, domestic consumers would not be able to benefit from lower prices -- the most attractive trait of TPS -- under the current system, since KT, the dominant operator in the fast Internet service market, needs permission from the ministry to lower service charges.
The world is moving towards Internet-based TV, and the nationality of the service provider is no longer an issue. Whether the program is received through cable TV or the fast Internet network is no longer significant. One expert in the field says if the government hinders the development of Korean companies through strict regulations, Korean consumers will simply turn to other sources like Yahoo, Google and Microsoft to get the entertainment they want. The “second Internet revolution” has already broken down the boundaries of broadcasting and communication, he says.
(englishnews@chosun.com )
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