 Thank you for my fan club So We have a great panelist afternoon and we're our job is to keep you awake after a fabulous lunch And that is never an easy thing to do when the food has been so good The way we are going to proceed this afternoon is I'm going to ask our panelists to come up. I will then be Making a short presentation based upon some of the data that we've been seeing that's looking at the growth of data across the Global Internet and broadband and then we will have a panel discussion Focusing on a range of issues including convergence, but not exclusive to to convergence So if I could ask that are the the panelists To to come up. We have Marsden singer who is regional Managing director for effective measure Effective measure is a company that looks and tread at consumer behavior This is some of the issues raised earlier about which maybe we can have a conversation about some of the privacy questions Renee summer Colleague I work with very closely on policy and regulatory issues in Europe Renee is with Ericsson Leading the Ericsson's policy regulatory activities especially in Europe Muhammad al-Sabiya from Al Jazeera Muhammad focuses on the new media activities at Al Jazeera. So this is all about convergence You're living convergence Jay Bargava, I hope I didn't completely Okay, thank you Jay Jay is with booze Jay is the principal for media and entertainment and really understands this market in terms of Data and the trends Also on convergence questions Brahim Rahibi from Alcatel Lucent another colleague from the technology industry And of course, he's the he's leading government public affairs activities for Middle East and Africa for Alcatel And as the regional lead on all of these issues has a really good understanding of the policy questions in what's needed to enable broadband development and adoption and finally An old friend Nick Dent who is the group chief officer for new business at ordu And Nick has been part of the executive management team in ordu leading all kinds of Activities on digital efforts and creation of new business. And so the new business activities also are Really focusing on some of the convergence so Do I push this to come up with the first Slide from my presentation Press one. Oh, I'm gonna go back. The first thing I want to talk about. However is a Report that we did I jointly with the UN Broadband Commission, Dr. Hesse and I Are on the Commission together and we're privileged and privileged to do that with Dr. Hesse and In in July We released a report that I did with the UN Broadband Commission team the Economists at the ITU and we actually asked a question That usually is never asked Most people in public life only ask questions for which they know the answers Right and when I was a government official we were always nervous about asking questions that we didn't know the answers although Blair Levin who I Worked for it the FCC was always pushing and actually really good about asking those questions We asked the question Does having a broadband plan actually make a difference? Does it matter? and The short answer is yes We had four basic takeaways The first is having a plan actually can increase broadband adoption By 25% over baseline for fixed and 30% Increase in broadband adoption for mobile mobile broadband second takeaway competition matters If we look at especially in the mobile world the difference between monopoly and competition can double Can double mobile broadband adoption? third takeaway Public-private partnerships are the most effective way for developing deploy and deploying broadband plans why Government by itself Doesn't really are not really the experts on the technology in most places. It's the private sector that makes the investment But if you leave it purely to the market there will be gaps that will never be filled So the role for government is to set out a vision To set the framework to create and the the environment for the private sector investment deployment Service offerings and then provide the backstop when there are gaps that need to be filled Including things like universal service connecting schools the public e-government applications the type the types of things that are exactly in The broadband plan that is being launched today the fourth takeaway goes to Blair's point this morning and Richard raised it as well and that is broadband plans need to be regularly reviewed and refreshed We found that the average broadband plan was over seven years old in This industry seven years is 14 generations of technology Right. It's not static. It's dynamic. So it really is a world in which The broadband plan has always to be in beta and constantly reviewed in this dynamic world And that's exactly dr. Hesse one of the recommendations that you have So maybe you actually read the report before you know a report as you did yours So I wanted to make that point first Why is a broadband plan so important? What are some of the key components and? Congratulations because the plan here incorporates some of those very key elements So this is a roadmap for success Some key trends and drivers. I'm taking the data from our visual networking index study, which is a five-year rolling forecast of data and data consumption And patterns of data consumption and we've been doing this now for seven years So we actually go back and check and I'll show you that in a minute top line overall globally we're seeing Internet protocol traffic over a five-year period from 2012 to 2017 Grow at a compounded annual growth rate of 23% and that's leading us to the zeta bite error Right Richard talked about Exabytes we're moving into a zeta bite error. What's a zeta bite a zeta bite is 10 to the 21st and exabytes only 10 to the 18th All right big numbers, but what does that mean? We're forecasting that in 2017 1.4 zeta bites of traffic will cross the global internet the global IP networks putting that into context and perspective If you take all of the traffic for the history of the internet from the beginning through last year That was only 1.2 zeta bites One year five years from now four years from now more traffic is going to flow across the global networks Then the entire history of them of the internet today Cumulatively in this region We're not looking at 23% compounded annual growth rate, but 38% compounded annual growth rate And in mobile we're looking at a 77% compounded annual growth rate in this region Mobile data traffic is increasing will increase in this region by 17 times over the next five years Question right do we make up these numbers? No, we actually have models and they're very dynamic models. We go back and check so in 2009 we for this is the forecast we had for IP traffic in 2012 Blue was the four. I'm sorry green was the forecast and blue was the actual So this is actually what? So it's very close. So we're very confident key drivers and trends. I will focus on three There are actually four drivers that are driving demand more people connected more devices The applications are richer and more more bandwidth Intensive and fourth the networks in fact get more robust or faster. So That drives consumption. I'm going to talk about three More devices and each device is more data hungry video in cloud If we look at the global trend in connected devices By 2017 machine-to-machine Devices and handsets And basically smart phones Although handsets all but combined will have 73% of the device share the fastest growing categories Are not voice phones It's smart phones and machine-to-machine devices But not all devices are created equal if you look here in 2012 last year Right your average non smartphone Consumed 19 megabits per month a smartphone 342 mega. I'm sorry. These are megabytes per month a 4g smartphone 4 times a 3g smartphone at 1.3 gigabytes and then tablets and laptops the biggest variable the processor speed and the form factor the resolution on the screen But what's interesting is if you go forward five years a Smartphone today that's consuming 300 megabytes is going to consume 2.6 gigabytes And if you look at a 4g smartphone a tablet and a laptop They're essentially going to be consuming the same amounts of data on average five gigabytes per month per device And people are going to have more devices now. I know that this room is not average But how many people here have smartphones? All right of those of you have your hands raised how many people also have tablets How many people also have a laptop that's connected with Wi-Fi, right? So right there. It's three devices And if you think about each of those devices consuming five gigabytes per month You can see where this is going in this region Mobile device growth is growing Right smartphones will reach for the device 19% share of the devices You're still going to have in the region a lot of GSM phones That's not relevant. What's relevant is this right the the 18 19% of the devices the smartphones Will be consuming 71% of the data Not all devices are created equal and as we have more of these smartphones out there These are the things that are going to be important in terms of what the the profile for the data consumption and data generation is by the way when we come to 2022 here and your normal Traffic pattern is asymmetric. I download more than I upload There's one major exception to that which we already see in sports stadiums everywhere in the world at a sports stadium It's reversed. There's more traffic going upstream than downstream People are taking their smartphones or doing videos and pictures and they're uploading them So the network that you configure for FIFA is Gonna have to be a completely different upside-down architecture from what we do today on the average or even in 2022 on the average basis Some really interesting implications for the networks and the architectures video video is the new Prime time medium. Why do I say that? First in this region IP video will account for 70% of the traffic across the networks By 2017 In mobile it's going to be even more 72% of data traffic will be video smartphone the tablet the laptop and Last year what we did was you know, we've been doing this for seven years. We've been looking at average data consumption Last year this year rather earlier this year when we looked at this we decided let's take a look at peak versus average and guess what today Peak hour traffic is two and a half times greater than average hour traffic in five years It's going to be over three times average hour and peak hour is 9 p.m. To 1 a.m. It's going to be The next prime time Medium and Al Jazeera is taking advantage of that and we're gonna hear a little bit about that and Ordu's having to cope with over the top video in that context and you can see that the busy hour is Growing at a 29% compounded annual growth rate where the average hour is only growing at 24% so the gap between average and busy is growing even larger cloud We need networks fit for purpose for cloud Because not all applications have the same requirements Not all bits are created equal What we're seeing is in this region cloud traffic will grow nine times nine and a half times over five years at a compounded annual growth rate of 57% and even on mobile in this region 87% of the data going across mobile services will be based in the cloud and You know, I note that in the broadband plan Cloud is important. There's a key component for cloud part of the goal But when people talk about cloud, they never tell you what they mean So what we've done is we've taken a look based upon a bottom-up Concrete what are some applications and what are the requirements from a network to support those applications and We created three very over oversimplified baskets basic intermediate and enhanced cloud applications You know and basic include things like downloading a tune from iTunes some basic streaming When you get to intermediate you begin to get in some business applications some of the the customer management Some file sharing some of the voice over IP IP telephony a single HD video streaming But the more interesting applications are in the advanced cloud basket Some of the education in health care the health care applications by the earlier today the panel were great Those are the kinds of collaborative applications that require advanced that are examples of advanced cloud industrial design collaboration in business researchers in different universities working together Simultaneously on projects and what you see is that If you have a basic cloud application, it doesn't require as much bandwidth as an intermediate or an advanced It turns out though even more importantly is the network characteristic of latency Latency for basic you don't care For an intermediate cloud application You have to have latency end-to-end of less than a hundred sixty milliseconds for advanced cloud It's less than a hundred milliseconds, but what's interesting Most of the cloud applications are not single cloud applications. You do more than one at a time We talk about these as concurrent applications And if you think about an advanced cloud application you can get up to a requirement per collaborative session From the cloud of 20 megabits down 10 megabits up in latency of less than a hundred milliseconds That's a requirement and that the network to in order the network has to support that in order to have those applications work question How is the network here doing? So we actually have network statistics. So here are the GCC countries Qatar is sort of in the middle So the good news on the fixed speed network is that we're looking at about four mech down One and a half meg up and latency of less than a hundred milliseconds So that can support Maybe one advanced and one intermediate or two intermediate concurrent cloud apps So it's a really good start green is the latency But it's of only a beginning and this is where the types of investment that we heard about earlier this morning And why the broadband plan is so important in order to provide the types of applications going forward On mobile on the upload and download speed We're doing pretty well. It's over Six and a half meg down two and a half meg up, but the latency will not support advanced cloud apps Only the net only the mobile services in UAE Will support advanced cloud apps that will change with the migration to LTE more spectrum We have a lot of discussions earlier about spectrum That's extremely important and it's also about the the configuration of the mobile services. I Joke some of you heard me make my joke people talk about mobile networks. I have no idea what that means In fact, I don't even think there is such a thing Think about it The network is not mobile. I am My devices The first thing that happens when the when the radio link hits the tower the base station the antenna It goes into a fixed network And that's an architectural issue Those networks have been designed in the past for voice. So I go a lot of hops Right, I finally get to the mobile switch But if we're talking about data where we need low latency you have to put that into the IP core right away So summary and conclusion We're going to have more users and each user is using more bandwidth each user will have more devices and more powerful devices Video in cloud is driving demand and consumption Convergence is here. That's what this panel is about This is not in the future people talked about it for a long time. It's done. It's here We see it already. What are the implications? Advanced cloud apps are going to require advanced networks with low latency We need more spectrum licensed and unlicensed. We've talked about that the plan talks about that There's gonna be need for fiber for backhaul middle mile and aggregation Networks are becoming heterogeneous Macro cell outside small cell Wi-Fi Femto indoors 80% of the use of a mobile device is indoors and sitting down It's all gonna have to be all gonna have to be connected in the backhaul by fiber Having the targets 95% of households Here have at least a hundred meg down 50 meg up is Extremely important to meet these goals on the fixed Having a gigabit to every institution government education health care Is it is critical in order to meet these needs the plan lays The groundwork for that the targets and the goals the other thing that's extremely important is that With his network fits for purpose We have to recognize that broadband is multi-dimensional all too often the public discussions about broadband are one dimensional What's my nominal download speed? Do I have five gigabit five megabits down? You know five mega ten mega a hundred megabits down a gigabit down That's not broadband It's download upload latency jitter and some other characteristics, but the three critical ones download upload latency That's what gives you a network fit for purpose and the plan addresses those needs Is looking at those trends and the drivers and I think it's a great place to start so with that what I would like to do is turn to the panelists For some reflections and some initial comments and some reflections I'm gonna just for this round. I'm just going to move Down this way So Nick, why don't we start with you from an overdue perspective? Okay, great. Thanks. So just some reflections on the presentation there I mean, there's no question that there's a huge Explosion in data happening. We actually think that it's going to be even more than what you said at least for cat I'll maybe for the region that that's about right, but We're seeing 70 to 100% growth in traffic year on year and we have seen that for for a number of years And that's very exciting for us Well, I'm glad that you hit on the point of latency because latency is so so important and I can tell you in my house today We already have the 100 meg and 50 meg within that house But that doesn't solve everything for you because it's not just about the speed about the sort of the fatness of the pipe and the speed Of the pipe to your house, but it's also about the latency and that and that also comes down to where the content is where is it that you're trying to interact with and Even if you've got a very clear pipe all the way to America With the way the HTTP is designed today and internet protocols You will only ever get a 10 to 15 meg experience So bringing that content closer to us bringing that content to the region is the only way that you're going to get a really a Sort of a hyper broadband experience and so latency is absolutely critical and very few people ever talk about that So I'm glad that you that you highlighted that Thanks to that leads directly to Al Jazeera with local content Yeah, I'd like to reflect a little bit on the presentation and the next point adding on this Seeing that Al Jazeera operates and if you could pull the microphone a little bit closer to you Yeah, you don't have to move you and move the microphone. Yeah Seeing that Al Jazeera operates in Middle East and North Africa We're not seeing this explosion of data only in Qatar or GCC region. We are seeing this explosion also in And the Middle East in general. I understand the penetration of mobile broadband and the Middle East is not comparable with GCC but The data and the analytics that we have from our OTT and the digital media activities that we have done We have seen a huge growth and and the demand for data Over the top and and this adds on to the Capacity challenges that we you guys have on the first lecture side Thank you Jay Robert some amazing statistics here. I think the one that My closure The one that stands out is the prime time because this has huge implications on media Television has been the prime time and I think it's going to continue to coexist with online And this has some implications on every aspect of media. I think it's all about integration of both experiences So from a content producer standpoint is like how do I engage the audience more while he's watching my content on TV? And that's a that's a quite important challenge for content producers from broadcasters or for distributors The challenge is more around, you know, how can you be the single source or the single provider of video services? Right now the game is quite fragmented and the data that you show Shows that it's going to be far. It's going the fragmentation is only going to increase So, you know a very recent survey on OTT video Majority of the survey respondents who are users of content said that we would prefer a single source provider that Transcends all different aspects of television online tablet mobile video and that puts a very important sort of challenge for the distributors Even for advertisers, we always talk about, you know, you see an ad in television and very quickly The same ad is repeated on online and that has a huge impact on what that ad can do or deliver to to your influence and And that's a challenge for the advertising community So I think the data that you showed has very serious implications and as you mentioned, it's now. It's not in the future Thank you, Marcia. This is a great lead to Marcia. You actually look at consumer behavior. Yes, of course I mean for us as an effective measure. We're basically More into the analysis of the consumer behavior on online so that we understand the people what they are doing online how they are consuming different websites and Their profiles, which is the most important part because we're using we're dealing with a human interaction at the end on the internet I mean the key point here is the for the Q&B is the conversion and the conversion will happen through Creating a local content which is relevant to the region because I want to share with you I came up through a study which is it says that only three percent of the Internet content is is in Arabic language Which is a very scary number Because I mean if we are in this region We are creating a plans that will encourage the convergence and So that we can create more local contents relevant to the local market, which is really important at this point and That's how can we see it and that's how we fill the gap through analyzing state this data how it is Creating this convergence and how this content is enriching the whole market. I mean Thank you Raheem. Okay. Thank you. So yes great statistics in fact and From a technologies perspective in fact we we do agree in fact because talking to our customers We do see them Reflecting on these figures and they saw of course all this you know explosion of data But also video and a lot to a lot of you know People in the industry the question is is it the end of TV as we know today? So the point is I think TV is still there But the point is the environment around TV is changing. I think you know Removing from linear TV where everyone is watching the same thing to on demand where even within the same house You know, it would you have maybe within the same family Members of the same family watching different things on different devices So this is a multi-screen and this is of course putting a lot of pressure on the networks And as you mentioned rightfully the delay and the latency in these issues, of course The operators are confronted with these issues now We have looked at this as well from from the impact and we saw, you know The proliferation of this video but also the move to the cloud as a big impact on network architecture for For the telcos and this is basically We have done a study to extend it to the next step to look What's the impact on the architecture of the telcos? We looked at the real reference architecture of the service provider was a convergent service provider We looked at the pattern of traffic and the next five years and we saw that basically the TV and IPTV architecture is shifting We used to have let's say Sort of a central office ahead and and then we try to optimize the distribution of the video to The residential users and today actually we're trying to distribute this architecture We saw through the study that actually the traffic in the next five years will be basically increasing in the metro Cities by 570% in the next five years Which means in fact that there's a need to push and to get closer to the custom to distribute this from a central Architecture to a distributed architecture distributed centers distributed CDN and so on so there's also a huge impact on the architecture and I think the telcos are faced with a challenge of Making this big value of the network of ensuring that between both ends the devices and the handheld devices and the huge data centers somewhere that needs to be very minimum latency and Very good quality of service especially for video. Thank you, but I'm going to make a really good point which is And we've shared the data as well that Metro and access traffic is growing significantly faster than the Global core backhaul traffic and the reason is because it's video that's being pushed and then cached locally and then CDN's Content delivery networks are being used in a local delivery area So that's more evidence that video is driving the consumption model, right? And it happens to be video That people more more than one person watches, right because you only get those advantages of local caching and the growth of Metro versus backhaul When lots of people are watching the same video, right? And that goes also to your point about reducing latency, which is you know, maybe helping Nick get better video at home And then having it be be the local content. So I'm thank you for raising that because that's exactly You know some of the additional data We agree completely Renee from a from Ericsson's perspective, especially because you're in this mobile world Well, I would like to pick up on the video data you talked about and I think it clearly points to one thing and that is that It's good to have a national broadband plan and the first generation of broadband plans typically were about Rolling out infrastructure. I think what video data says that that's the key Driver for mass market adoption of broadband if you don't have that kind of amount of content in For broadband distribution It will be much harder to get a mass market adoption of high-speed broadband services Secondly, I think the data shows one important observation and that is that This is the convergence Phenomenal watching at it looking at it from a network point of view that all data is coming from somewhere and We never go behind the curves The forecasts and I mean they are very important But what's behind those forecasts and that is actually that there is a migration away from offline That is physical and from broadcasting that is terrestrial and satellite networks So there is a shift away of consumption from these one-way distribution platforms to to The IP world and that has I think implication for the convergence discussion from a policy point of view one is that If we talk about converge regulation I think we need to make sure that we are not putting the old broadcast regulatory models onto a broadband platforms and Limiting them to just become another me broadcast distribution platform And that is because the ultimate goal for a policy-making point of view Why convergence matter is to get substitution and competition to happen between different Networks and devices and service providers So the number one reason why convergence matters from a policy point of view is ultimately to drive these Competitive forces that will drive innovation choice and price for consumers to choose between different platforms and devices Thank You Renee. I want to come back To to your point about regulatory frameworks in a second, but if I could just first In terms of the questions that turn to Jay You know You're looking at the media landscape across the region Right, how do you see it evolving? In terms of both, you know the media the consumer the behavior the players and this is What you do sure I think digitization in general is Is a good thing for media because at the end of it the amount of time that an individual or a consumer in the Middle East is Spending on media is increasing. So it's not, you know, online video or mobile video is coming at the cost of television It's actually all of the of the below every aspect is increasing Globally for there's a 4% increase year on year in amount of time that people spend in media and we are seeing a similar evolution In the GCC and in the Middle East more broadly So back to Ibrahim's point TV is the dominated dominating video consumption platform today And it will continue to remain a mainstream sort of Focus I think what your data is suggesting is that there will be a lot of integration of that television experience With lots of other online and mobile video and this would happen a lot to do with multi-tasking So from a behavior perspective, we will see a lot of media snacking, which is, you know You're consuming on different forms different content, which is somehow somehow related So you may be watching a reality show on television, but you're using all sorts of gadgets to interact with what's going to happen and You know and that's going to drive a lot of how the how the media has been consumed I think social networks also are playing an important role. So, you know, you talk about disruptive models Globally and in developed markets. We don't we're not seeing a lot of disruptive Models or disruption happening in video in the Middle East where it's happening is on social network I think there is a high percentage of the population and growing every every day That's going on social networks and social networks actually becoming the town squares in the Middle East where everyone's participating It's not only the youth. It's not only the digital generation, but it's also the middle-aged People and somewhat even the senior citizens who are coming on that because what distinguishes Middle East is the family ties 62% of people who are in the age group of 15 to 35 actually live in extended families and there is a buy sort of Generational exchange of ideas values, but also technology So you don't see the the use of technology habits very different in a middle-aged person as opposed to a digital generation Here in the Middle East. So you see that, you know town squares everyone's on it And I think that's where the disruption is Which is more affecting if you may print media or news because social media is now Becoming the primary source or the first source of news content for for many of the of the younger and the Digital generation and that's how they're growing up with news So I think that's where the disruption is video is going to be a more integrated experience and the players who can integrate it faster Are going to be the ones who are going to be coming out the winners And I think broadcasters and and telecom operators have that sort of advantage In the Middle East compared to pure OTT players that you see in the developer And that's because you know the predominant form of distribution of television content in the region broadly Continues to be free to wear satellite and that will coexist as we move in the future Thank You Jay and actually that leads very nicely into Mars and you know Yes, looking at consumer behavior consumer consumption broadly Yes, basically, and I want to go back to the same point which is related to the content I mean we have realized the meaner consumption in the terms of digital most of the time people They are spending time on the search engines So basically spending time on search engines it means people they are searching for a lot of content And that's why here the conversions plays an important role for providing this content to the To the online users in the meaner region So that it can cater and fills this gap that as I said from the beginning about the Arabic language And also if you want to talk more about the e-commerce scene in the market I mean We have realized that only nine percent of the brands and retailers They have an online presence Which is this thing it should be changed by time because As I said like when you are searching for content you need to be reached online And that's very important in that part for the conversions Only nine percent Yeah So that's that's that's basically how do we see it and Of course the social media network and the video as you said is the next big thing Or it's it is the big thing right now And the behavior of the online which is more shifting towards the mobile and the connected devices all the time Like you were mentioning about the tv when we are watching the tv Where we're using our our mobile phone or we are interacting with a certain show for example like x-factor or whatever So basically the online behavior is moving towards the mobile devices as well Um, so that's pretty much how we can how we see it actually So Muhammad Hearing this about the behavior. How does that affect or you think about The aljazeera business model mean your new media guy, right? So What are you thinking about going forward? How does that change the business model? I'd like to really global footprint. Yeah, I think touching a little bit on the point of the gentleman here Because I come from the pay tv part of the aljazeera, which is aljazeera sport And we are seeing a huge shift in the way that people are Consuming our content the the emergence of second-screen apps We have We have experienced with that in europe especially in one of our subsidiaries We have seen that 50 percent of our subscribers are using or consuming our sporting premium content While also interacting with with with second screen So, I think the demand is not going to come entirely only from ott But also it's going to come from the way that people are experiencing the content nowadays People are watching tv, but at the same time they have their ipads. They have their mobile phones. They are interacting and they are Consuming the or using the this content to To to drive some of the second experience apps that they are using at the same time Thank you Renee, could I ask you to maybe we're talking about some of these major shifts in consumer behavior industry structure technology disruption But we're living in a world of Legacy policy and regulation and I know that you've thought about that and you have a great Way to think about that. Could you to have raised? You know so wanted what how you think about this and what some of the big policy issues are Yes, thank you. And if we can get the slide up This is actually one slide that is Capturing We have looked in as a company into about 30 countries different convergence reviews that have happened around the world I personally have been talking to this slide all the way from New Zealand to Europe why so it's been traveling someplace in every single of feedback But ultimately if I can come back to the first speaker about saying The government will gain the most if you let the industry to compete This is my point. I'm trying to make if We want to maximize the economic impact in terms of driving innovation choice and competition. We should make sure that the Converged media landscape is regulated in such a way that it stimulates maximum competition between different platforms This means that we don't have to and we have looked at different countries lose control of how content is regulated But we have to look from an economic point of view How access to content can be increased That comes from increased production subsidies If that's necessary in some parts of the world that has to do with with competition between platforms That has to do with copyright and other broadcast regulation that needs to be updated The worst thing that can happen is to retrofit other countries old technology specific regulatory models And make a broadband platform just a me to broadcast distribution. That's the worst outcome That can happen from a policy point of view Thank you, Renee That leads very nicely into you know nick for ordu in this world You know, how are you addressing This world of over-the-top content other content What are some of the things that you see both from a network Investment perspective that also some of these policy and legacy policy questions that that Renee raises Okay, so Yeah, a few angles there. I think when people talk about ot that can be That can mean very many different things. Sometimes they're really meaning google skype and those likes other times They're meaning the technology, but frankly we love ot both as a technology and we love those players there as well And when we think about this it's both very exciting but also very scary as well The scary bit is if you look at your pnl today 80 of our revenues that we have today and probably at least as much of our profits Simply will not exist in 2020 Um And that is the scary bit, you know, if I go to career today and say how much do you pay for an sms? They say, what are you talking about? They don't pay for that if I go there in two years from now and say, how much do you pay for a telephone call? They won't know what you're talking about. So the model is changing Dramatically and that's even through the the the traditional ways, but what is exciting is Those the broadband and the data growth, you know, if any of you were starting up a business and I said to you Look demand for your product is going to grow by 50 to 100 per year for the next 10 years You know, is that a good business or not? You think that's a fantastic business and then on top of that There's all these opportunities for you to partner and get into other industries now Would you like to start up a business like that? Yeah, absolutely The challenge the industry has got is one of complete transformation and pricing and and so forth That that's the real issue. There's no shortage of demand for services and you really have to innovate So if I take our media business as an example We're one of the longest established media players and pay tv providers in kata started years back And I think hasham who's in the audience here was one of the the founders of this and a very successful business But then then the satellite providers Came in and we went from a hundred percent market share down to five percent Then after that and hasham studies off we then had to innovate and we had to put in place new New services new products and today our media service which happens to be over IPTV currently It has the on-demand. It has the catch-up tv. It has the high definition. It has the ala cart packages And we're back up to the number one Pay tv provider we partner with algezera So we sell a lot of algezera sport through our network and we've got a very good partnership there And you just have to innovate and change your business Probably you have to keep up with technology But most importantly you've got to keep your eye on what the customer wants and what and what they need So that's what we we think about But you know what we in that environment regulation has to change You know tremendously as well And so you need to forget about what the price per sms the price per voice call is because in five years from now That's not even going to exist But when we were talking about latency and so forth before and how do we get that broadband service? How do we get the content close to here and then talking about things like We haven't talked about privacy yet, but privacy is critical And then on top of that things about the copyright And and so forth and IP protection is absolutely critical about fueling this broadband environment So I think yeah when we talked earlier about To where the the football and actually where the ball is going And that's where really where we need to be focused So we think a lot about that and that's what I have to do start up all these these new businesses We we love ott. We love all of this We're well over the fact that you know, we don't say these guys are eating a lunch Maybe they are but my lunch was a small sandwich now. It's a big buffet And we just got to we've just got to get in there and and we're very excited about the future Thank you You raised a lot of the policy questions. I don't know bruhim that you know You've looked at the broadband plan of policy regulatory proposals, but you also work across the entire Middle East and Africa and you see The wide range of policy issues and with different countries are doing so what what do you see? And linking back again back from the plan to what you've heard on the panel so far of What needs to be done? What are the priorities to enable these things to grow? Yeah, I think I think What's happening is the same questions have been raised by other of course service providers In the region in a sense that they see the decline in revenue And they see the risk of decline in revenue, especially in voice and sms and message While at the same time they see the increase in video and data traffic So so of course the question here is the pressure on the investment on the network infrastructure And basically in the long term a lot of people are asking the question. Is this a sustainable Model in the long run and the question is how How to create a balance between basically who invests in the infrastructure, but also who captures value Of course in these end-to-end value chain So this main question is is basically raising concerns about how to rethink The regulation and policy as part of you know You know new broadband plans and things like that and and the point is here is is basically how at the same time not to How to preserve openness and how to preserve a non discriminatory Rules while putting in place a broadband plan Of course people are saying the internet has emerged and Thanks to its openness this open model that's non-regulated has created its success But at the same time they are saying some argue that okay the broadcasters and the telcos are are subject Are subject to regulations on the point is how to rethink this this This basically and how to allow for example telcos to monetize their network infrastructures How basically they can leverage on On the traffic to differentiate traffic Thanks to quality of service because this is the demand of the end users They ask for more valued more better quality service different services And the question from telcos is how to differentiate how to monetize these different services This is by the way the big question facing service providers globally. I mean, you know nick has talked about You know sucking it up and basically saying the old world of voice Is the old world right and we're trying to figure out what the new world is In fact the way I think about it is there you know are five key assumptions that have governed the telephone the traditional telephone industry For 85 years 90 years First assumption is the product is voice The second assumption Is that the metric by which you measure it regulate it and bill it is the minute Right, there are sort of going back to first economic principles Um Marginal cost differences with how long you talk right the longer you talk the more you charge Um, the distance over which you've connected affects the cost And then where you're located could affect the cost Well in a world of a flat ip network you're either on or off The product is in voice it's connectivity The metric isn't meant to expand with right and the networks are Distance time and location insensitive you're buying it in chunks, right? You're you've got a broadband connection for a certain amount of Bandwidth right if that's the case But most of the revenue today in the industry is still coming From charging for minutes of voice We know where we're going to where we need to be how do we make that transition? And by the way, it's not two years away in korea My local plan now in the us my mobile service is AT&T I get to connect five devices a data plan Right, it's a data plan I can connect five devices to the data for the plan on the same package and they tell me Don't worry about voice voice is free Right Text we don't care so it's it's already happening. The question is how do we actually How do we find the the new business model? That will do two multiple things, but at least two Right Still result in the investment in the networks that we need because without that nothing's going to happen Right and then number two create the right business case For the market and revenue to grow for both operators and content providers And grow the pie as you say into the buffet Yeah, so it's a really interesting Question I don't think we really have nailed the answer yet But what I'd like to do and I know this may sound Radical is I would like to turn to the audience to see if you have questions before we go to another round Up here And I think there's supposed to be a microphone someplace They're running to get it because we haven't needed it yet. Um, are there any questions? There's a question. Let me see how many there are so if you raise your hand We'll take a couple of questions or we just have the one up one back here one over here And so let's take both questions And then is that one or a 10 That 10. Oh, yes. So I thought Okay, so let's do both questions and then we'll them. We'll have the answers and then we'll see if there are more questions If not, I have a whole bunch more. Okay, please Yeah, uh, I my name is Amidad Afifi I'm from center for for GIS But I'm asking as a Normal user, okay For me as a As a home user for brand broadband. I keep thinking why can't I have my web page on at home This I'm talking about content. We are talking about content in order to One of the key factors for the broadband success is content. So I believe that by enabling Normal users to have To host their web site by at home This can increase the content Okay, thank you. So the question is what about hosting content at home Not just your web page, but other content at home Interestingly, of course, if you go to youtube and upload video from your mobile phone In some ways that's At least generating if not hosting But yeah, so we'll come back on the other question was over here Um, Muhammad Razaar with the Qatar University Thank you. Thanks everyone for this opportunity My question is um more of an academic Nature and the old days you used to talk about osi model versus ip model the ip model one by you know Just being practical I wonder if there's any new in new technology that could Handle or tackle this problem of latency and other problems as well that are technological other than ip I know there's a lot of research in this area, but can you expand or do you know of anything that could be eminent or could be You know that would help in this in this regard All right, so the question is are there other ways to deal with latency or capacity constraints, perhaps All right, so we have a question a technology question about latency and we have a A question. I'm not sure whether it's a technical or business model or whatever Why can't I host from home? Um renais, please I can ask maybe from a point of view And I think this is a very good example when copyright and ict meets and In in countries where you don't provide visions and immunities to those who host and cash content In somewhere close to the network to the user. Sorry It's it comes with a risk because you can be You can face injunctions and you can face liability for third party infringements So one important role of copyright is of course is to create create conditional immunities As though we have in dmca or in the european copyright law that you can actually safely as an intermediary cash content locally and that will of course improve the performance of the of the experience Of of of the end user without actually requiring additional investments Anybody want to answer the question about the Home caching or the whole the hosting your website at home Yeah, I think um, yeah, I mean yeah, it can be done already And I think they're very happy for anyone that wants to do that I think my observation on the trend of of how people are managing their home it is It's actually going more to the cloud rather than in the home Due to the cost And actually the reliability of that you know the amount of hard drives that have been smashed and so forth in my house is quite high And I've lost quite a bit of content, but uh, you know, whether that's aridu or amazon or so forth They tend to lose much less of it And so Yeah, from that side then just on the other one the ip question So there is a new version of Http under development and the way that Various protocols across the internet Work my understanding is that it's going to be about 2017 before that starts to become You know widespread I think some of the more immediate problems are the ipv6 and getting that more broadly adopted So there's just enough addresses for this explosion of devices to talk to each other But yeah, there are new protocols which are emerging I'm not a deep engineering technologist But I know that there will be much more efficient communication between packets to enable some of this and that is a Certainly a hot topic among the broader industry And again to your question about the hosting You know most business now is moving away from doing their own hosting and moving into cloud hosting a question from khaled Stand up and introduce yourself. My name is Khaled. I'm from next then Actually, it's something that I've heard it in the telecom world in Bangkok It was a special program about an experience that the malaysia telecom have shown showcased in the In the conference where they did this connected at the root initiative So I'm happy to hear about the broadband plan because this creates the the environment and the framework and enables everybody to compete and increase The capability of the different players to to play in the market and create But what I'm suggesting here is something to look into the social side of the story because this where the regulator Or the government needs to fill a bit the gap I'll use bore your term to try to enable that So this little family that we have seen in the video there That was able to create a whole industry around just a small connection that they had is a great story And I think repeating such stories will fill this gap between the beautiful discussions that we are having here And also some layers in the society that really needs this Technology to enable them to enhance their life and create a real impact on the society level just a recommendation Thank you So we have about three minutes left and I do want to come back to the panel with at least one thing and that is You know both Blair and richard talked about the importance of execution, right and what's needed um a number of people have raised Copyright or intellectual property questions um, is copyright an issue for This region. I mean for example, this is Al Jazeera. I mean this is You know, you're facing this all the time in terms of copyright protection but getting the balance between protection and liability. What's needed if anything? I think this is this is a very important question. I think we in Al Jazeera sport we We suffer from the challenges With the piracy, you know of our signals when you diversify and you go into different platforms and you open up your content to different technologies and different platforms You get exposed and and and since we are in the business of premium content and distribution of premium content It's very difficult for us to it's very important actually for us to think about security and you know how to secure our Our premium content and I think this is moving forward in the future. This will be a major concern for us once we go develop more and more digital products and And that can be consumed on anywhere and on every device There's a question of course of some of these intermediate liability questions And I don't know whether that's something that ordu is facing or not in this region Or is copyright not an issue No, the for us we We haven't had so so much of an issue about it But I've got a couple of reflections on on the copyright. We don't have a problem partnering with content partners and caching the the content With us because we're very stringent on the security and the DRM and so forth So people can feel confident with that But if you can move to a broader hosting business I think there are two main concerns Which is if I if I as a company want to host My content in in the region Is it secure and what happens if someone does Copy it or knock it off do what recourse do I have and if the answer is none then then for sure they're not going to go there And the other one is actually security now that people know a little bit more about what the NSA is doing They may have got some different views on that but in the past they were all very paranoid that having their data in This part of the world or anywhere else it would be snooped upon and look and people would have rights to look into it I think now they're seeing that wherever it is people are looking into it. So maybe attitudes will change I'm not sure how that will go but but the I give you an observation of the financial services industry There was places like switzerland a very small place that's built up a huge industry based around security Privacy and great trust and there's no reason why you can't do that in the digital space as well And so I think with the right legislation and the right environment You could find very attractive ways Which are non-threatening to people coming out there last observation from the consumer perspective is that Most people don't want to be criminals. They don't want to download stuff illegally But if they can't have access to the service at a reasonable price to meet their needs Then they will find other ways to meet their needs And so I think it's incumbent upon the industry also to find ways to deliver the services at the prices That's affordable to to most and then and then you've got much less of an issue around piracy and so forth Well, that was apples in sight with itunes people who are willing to pay a reasonable price Brahim you'll have the last word. Yeah, actually on this actually it's interesting because For example in north africa. I've talked to several service providers. They suffer a lot from the piracy because the only way for them to To promote the fixed at least the adsl The wireline subscriptions is basically to promote services such as iptv And all of them basically are saying we suffer. We don't we cannot have the wire line or the adsl take off The regulator doesn't know what to do because they're saying, okay, we put all the conditions for the unbundling But it's not working. So at the same time they're promoting aggressive mobile broadband. So basically, uh, You know in europe, we know for example in france What helped adsl take off is of course to have the bundling and to have the iptv as part of the story the voice the internet But in in north africa, for example, they're saying what can we do? You know People will do internet with the mobile with the dongle so they don't see value in having Just simple internet if I cannot find a way Basically to overcome this hurdle of piracy of and then being able to launch some attractive services to be induced as IPTV So it's in fact, it has a quite substantial impact on the business of the wire line at least in north africa some parts of the world Thank you. Actually, rena will have the last word because you you stimulated something and rena Then we're gonna have to be front of the time about the close rena. Go ahead I think the pick i'm trying to make is also captured in the plan and that is that to get Economic impact from from broadband plan. We need to have both supply side and demand side policies in place I think one important observation is that the first generation Broadband plans from mature economies focus very much on rollout of broadband not not very much on adoption I think that's a very important observation to take into account that adoption of high-speed broadband And what kind of adoption we have of course will ultimately lead to The economic impact and in that context When it comes to stimulating mass adoption of high-speed broadband content is key For the mass market. I'm not saying it's for every segment, but for the mass market it is in every country where we looked to when there is A market offer Providing attractive digital awful content. It can compete with free Piracy is typically a problem of a market supply failure when legitimate lawful alternatives Are there and far away If you can create a conducive environments from policy point of view that you can stimulate lawful digital access and local content It will drive the adoption of broadband and it will drive the media interest as well Thank you very much. And again This was a great panel. I learned a lot I want to thank Dr. Hesseff for the opportunity this afternoon to be here and again to congratulate ICT cutter for The plan and I want to very much thank the panel for a great discussion. So thank you very much. Thank you