This session in the latest round of Aspen Seminars for Leaders opened with the observation that the digital revolution is still underway, and that whilst the transformations so far have been radical, there are many changes – if not actual reversals – of direction yet to come. Even American authorities were aware of this when, not more than twenty years ago, they chose to expand the internet: today, there are 2 billion 500 thousand internet users worldwide. Technology speeds up any process, but not without some level of disruption and reappraisal: this is the case with respect to infrastructure hardware, but may also be the tendency with regards to business models and content. What has by now become certain is that a single digital platform looms ahead, where internet providers, mobile operators, television networks and publishing houses will all converge.
What matters now – it was stressed – is the speed of progress: in the past five years, the digital world has been changing at a great pace, much more so than in the past. By way of example, it was noted that it will not be long before 90% of mobiles have access to video apps. At such a whirlwind rate of development, there will be many shifts in the value chain and great demand for new investment. At stake is the sustainability of the system, which must be maintained, first and foremost by coming up with solutions for developed countries which are different from those that work for developing countries.
Much emphasis was laid on the fact that this will require a regulatory framework to be put in place, even if it is not yet clear what form the associated governance – whether it be government or market-based – might take. It is difficult to imagine there being a “UN for the digital world”, but the idea of very stringent regulation does not seem particularly viable either, cherished though it might be by the French President Nicolas Sarkozy. Nor – it was suggested – will it be easy to strike a balance between freedom and security: a Chinese-style system where censorship is still a given is definitely out the question for the West, but at the same time clear rules need to be set to prevent the Western international community from once again becoming the helpless prey of another dreaded Wikileaks.
Even in terms of financial aspects, the participants pointed to the need for rules, calling in particular for a more widely-applicable framework. It was noted in this respect that not only have significant differences emerged between Europe and the United States, but also within Europe itself. It comes as no surprise that the major “over the top” or OTT operators have been American, given that US firms benefit from a very advantageous regulatory system. It was observed that, in general, matters are currently governed essentially by bilateral agreements, especially as regards revenues. Of course, there can be quite serious clashes of interest, especially between telcos and OTT operators. According to some participants, however, this does not exclude the possibility that the time may be ripe for some form of – albeit none-to-easy to achieve – agreement to be reached.
It was felt that in such a rapidly changing landscape, business models need to be adapted to prevailing conditions very quickly, particularly in the infrastructure sector. The participants highlighted some interesting new experiences that have emerged in countries such as Mexico, Nigeria and Indonesia, which have been able to attract long-term investment in their infrastructure networks. In terms of business models for content-driven enterprises, there was a perceived need for improved organization of processes: access to large quantities of data – or, in the case of news information systems, to a constant stream of news – does not suffice alone. The content still needs to be sorted through, ordered and assessed, on penalty of exclusion from the market.
In the era of the digital platform, traditional media outlets, such as television in particular, must necessarily alter their content and production processes, but without sacrificing quality. Whilst the internet may bring with it a glut of information and a plethora of sources, the journalist’s skill in sifting information remains essential. But quality costs money. It is undoubtedly for this reason that the BBC, one of the international flagships of quality news, stands behind the choice of public financing as a means of maintaining a proficient news selection, analysis and commentary service – not so much with a view to reigniting the old debate on public and private funding, but so as to reaffirm the need for a quality public service. It was acknowledged, in conclusion, that in an era of digital communications, it is an inescapable reality that news spreads instantly: the internet definitely sees to that. Nevertheless, the task of ensuring news is interpreted accurately and with a background knowledge of the facts is still that of the skilled journalist, whether he/she is a “native” or digital “immigrant”.