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and broadcasting sectors. The blurring of boundaries between these sectors has posedsome challenges in terms of policy. In order to understand these challenges better,first the regulatory characteristics of converging sectors are explored in the nextsection.2.3.2. The Regulatory Characteristics of Converging SectorsAs it is stated briefly in the introduction part, information technologies, media andtelecommunications sectors have different regulatory structures stemming fromdifferent characteristics of each sector.Telecommunications industry is subject to sector specific regulation. Regulators areexpected to „provide constant monitoring, arbitration, legal guidelines and a levelplaying field for all. Regulations are required that control operators, provide themwith frameworks for operation and ensure that the interests of operators andconsumers are protected‟ (Murdock 1990 cited in Gardner: 2003 p.104).„Broadcasting, especially television, is often viewed as the most pervasive form ofmedia. It can influence the manner in which we receive the information that we needfor entertainment, to keep informed and information to fulfil our obligations ascitizens. Broadcasting also offers the most accessible cultural experience for the bulkof the population‟ (OECD:2004 p.10). „The principles and objectives behind mediaregulation include defining and protecting values such as freedom of expression andaccess to information, and balancing these with acceptable limitations, such asprotection of minors, rights to privacy and personal integrity, and conceptions ofpublic service and fair competition as Noveck, McGougan, Gibbons and Tonguedetail‟ (Marsden and Verhulst:2000 p.7). As it can easily be seen, different fromtelecommunications sector, broadcasting sector is subject to content regulation inorder to provide pluralism, diversity, fairness, and impartiality; social responsibility;maintenance of high quality programming and of cultural and linguistic identity;coverage of important events; protection against abuse of market power;strengthening national and regional industries; protection of consumers; andmaintenance of standards in matters of violence, sex, taste and decency as stated byMarsden and Verhulst (2000 p.7). Besides, as broadcasting necessitates spectrum15
usage, regulation is also needed in order to encourage efficient use of this scarceresource.In comparison with telecommunications and media sectors, the InformationTechnologies sector does not have sector specific regulation tradition, but generalcompetition law applies to this sector.As Xavier and Ypsilanti (1998) state, over time „historical characteristics of differentservices and the technological platforms they used to deliver service, have expandedand evolved leaving behind the distinctions that regulators have placed upon them‟(p.650). So the scene between regulators and players in the market has changed andthis necessitates some changes in terms of regulation. Next section explores this issueand discusses whether a new regulatory approach is needed.2.3.3. The Need for a New Regulatory ApproachAs it is stated above and highlighted by OECD (2004), the previous regulation ofelectronic communications sectors was based around delivery platforms and „thischaracteristic developed in an analogue environment where delivery platforms wereservice specific‟ (p.18). But with the emergence of internet phenomenon and serviceslike digital TV, this separate structure is challenged and the distinctions between thesectors of ICT industry became blurred.In the literature, most of the researchers highlight the fact that existing regulatoryframework is challenged by convergence concept and this necessitates some form ofintervention. For example, Just and Latzer (2000) claim that, the major challengesstemming from convergence resulted because „the industry has already entered themediamatics era while the policy makers still remain anchored in the traditionalseparation between telecommunications and media (audiovisual)‟ (p.396). Theyfurther claim that in this situation, the criteria used to categorize the new services arenot objective anymore and this creates regulatory problems that can lead unnecessaryconflict. Since, inapplicable categorizations, combined with divergent regulationsproduce contradictory preconditions for market development, they claim that „it isnecessary to propose an institutional integration of telecommunications and media16
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