British Telecommunications Plc is looking into offering video-on-demand services, but confusion surrounding the precise definitions of the technology means that it is unclear whether current law would permit it to do so. While it has made no formal application to offer video-on-demand to customers – the official line is that it is merely looking at the technology’s potential – it is already clear that it faces a tough task convincing regulatory bodies that it has the right to do so. Heart of the problem is that video-on-demand technology has evolved in advance of legislation covering its use. Indeed much of the controversy centres on exactly which pieces of legislation cover such a service: both the Office of Telecommunications and the Independent Television Commission agree that the precise situation will require legal clarification before the matter can be decided. Oftel does say that it believes video on demand comes under the auspices of the Broadcasting Act, rather than BT’s Public Telecommunications Operator licence, and while the ITC agrees, it also says that the question of whether it constitutes a broadcasting service has still to be decided. The relevant section in the 1990 Broadcasting Act defines the criteria for deciding what is a licensable programme service.
Duopoly Review
The definition includes simultaneous reception at more than one location, and also distinguishes between programming provided for business purposes and that provided for entertainment. Whether video-on-demand can be classified in this way has yet to be established. Even if BT gets over the hurdle of proving it does not need a licence, it will still face restrictions on the types of service it can offer. It was laid down in the 1991 Duopoly Review that it should not be allowed to offer entertainment until at least 1997, when the situation will again be reviewed, and possibly for another three years after that. Perhaps for this reason, BT is playing down the entertainment side, instead stressing other applications such as video databases for such sectors as estate agents. Even if it restricts itself to these, it is certain to face opposition from the Cable Television Authority, many of whose members are investigating the technology.
