Introduction
Welcome to our weblog about triple play. ‘Triple play’ may be one of the most fashionable terms of the past year. The populair term implies the bundle of the Internet, television and telephone service that is offered by just one (Internet) provider. Thanks to the introduction in broadband internet, the number of possibilities with respect to datatransmission is evergrowing. Developments in datatransmission techniques have led to the opportunity to transmit high quality audio and video: it is now possible to watch television through the Internet instead of through cable or satellite connection. Also, telephone services through the Internet is growing more populair, as one does not have to pay additional costs for using the telephone.

All these developments have left existing cable companies not undisturbed. They have taken counter measures by offering not only television, but also Internet and digital telephone services. Because both telecommunication and cable companies are focusing on other services than just their original core business, they are blending in their offers of services.

This weblog has been set up in the framework of the course Technology Policy at the Eindhoven University of Technology. It aims to follow current trends and developments in the market and the society. Moreover, we shall look whether governmental intervention is needed and if needed, how policies can be adjusted in the best way.

Thus, your comments would be very welcome and we hope this weblog will unchain interesting discussions!

Kind regards,

Hoi-Ying Chan

For the time being the EU has no concrete plans to regulate the rise of triple play, apart from the existing legislation for competition and the reduction of monopolies. In one of her speeches, Vivian Reding said that the EU ‘cannot tolerate national fragmented national approaches which may favour only the former national incumbents and could thereby block competition and the development of a true European market for electronic communications’.

Also, Reding expects that Voice over Internet Protocol, i.e. Internet telephony, will lead to more diverse and innovative services which may well have an even bigger impact on consumers and businesses than email. ‘IP-based networks and services will be the basis for a whole new range of communications services, not only benefiting consumers directly, but feeding through directly to the whole economy. I am convinced that, as the market develops, the European Commission and national regulators will jointly ensure that throughout the EU, the roll-out of new IP-based services will not be hindered by regulatory hurdles’.

Sources:
http://www.euractiv.com/29/images/Reding_Munich_tcm29-151856.pdf
http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/167&format=PDF&aged=1&language=EN&guiLanguage=en

With Tele2, KPN has gotten a serious fellow contestant in the race for offering triple play to the customers. As of today, the Swedish enterprise is the first telecom company that offers a complete package of television channels through a broadband Internet connection.

Tele2 has high expectations for the near future. In 2005, the European Commission has given permission to let Versatel be taken over by Tele2. This approval was needed because the fear existed that it would threaten competition; both companies offered Internet and telephone services. As Tele2 has taken over Versatel last year for 1,34 million euros, it can now offer Internet television. Versatel owns a fiberglass network that can provide approximately 65% of the Dutch homes with broadband Internet.

Versatel started broadcasting live premier league soccer in the summer of 2005, but until now it has turned out a flop. Only 60.000 homes had subscribed for this service, a considerable amount less than the 100.000 Versatel originally had in mind. Since Tele2 does not want te be reminded of this past, it will from now on not anymore use the name Versatel.

The new bundle contains soccer as well. However, Tele2 wishes to focus on the complete television pack instead of promoting the soccer only. Also, Tele2 wants to start offering http://www.uitzendinggemist.nl for TV; a service that would make it possible to watch missed programs later on. Yet this service is still in development. Other services that are in development are personalised television and pay-per-view (payment per soccer match).

Sources:
http://www.nu.nl/news/693286/51/Tele2_troeft_KPN_af_met_internettelevisie.html
http://www.elsevier.nl/nieuws/economie/nieuwsbericht/asp/artnr/63255

With triple play consumers can get multiple services using only one (internet)connection. The actual concept has in the Netherlands existed for some time. Before the introduction of ADSL, cable companies UPC and Casema have offered Internet connection beside cable television for some years now. However, it has not been before the introduction of other broadband technologies (like ADSL) and the overall adoption of broadband that society is starting to get aware of the possibilities of this concept.

One of the very first companies that came with a concrete triple play Internet subscription based on ADSL2+ was telco (telecom company) Versatel. In December 2004 Versatel bought the exclusive rights for broadcasting soccer matches of the Dutch premier league live over the Internet, in hopes of attracting customers to subscribe to the triple play service. Right now KPN is also busy with actualising the possibility of offering triple play service in one package instead of offering it through the existing separate channels. The expectation is to have the service online by summer 2006.

As telcos are ‘intruding’ the television market, cable companies like Casema, UPC, Essent and Multikabel have responded by offering telephone and internet services in one pack as well. In addition, some local municipalities are building fibreglass networks. This all leads to heavy price competition.

The ‘triple play’ sounds very promising, but will it also indeed become a success? Should telcos and cable companies keep to their core businesses for their own and the customers’ sake? The fact that the customer will have only one supplier for these services can be advantageous, from the perspective of convenience. At the same time, it can get more difficult to compare the services to one another as they are not so easily distinguishable anymore. Also, it might only be the question whether it will be that financially advantageous for the customer when he does not that often use the e.g. TV or the telephone. And even if it will become successful, what companies (telcos or cable companies) will obtain dominance of the (renewed) market?

These are just a number of questions that we will try to answer in the next couple of months. Feel free to leave any comments.

Sources:
http://www.webwereld.nl/articles/31206
http://www.internetten.nl/div/document.asp?id=10011&kleur=blauw
http://www.freeband.nl/uploadedFiles/FreeNovation/Magazine_Nr2/Articles/Article_1120_nl.pdf