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Hello, this video will discuss convergence,
technical convergence to be more precise.

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Technical convergence is described as "the
tendency for different technological systems

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to evolve toward performing similar tasks."

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For example,
in the past we used to have a stopwatch and

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a voice recorder,
and now these features,

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along with many others,
come together into the neat package of a smartphone.

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For this MOOC,
we are primarily interested in convergence

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phenomena in infrastructures.

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That is infrastructures evolving toward the
performance of similar tasks.

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When describing convergence in infra-systems
the most distinct examples can be identified

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in the world of information and communications
technology.

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Once separate infrastructures such as the
Public Switched Telephone Network and the

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cable networks have merged.

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And with them many more:
faxes, radio, telegraphy,

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and some claim even newspaper and paper magazines.

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All different types of communication are increasingly
provided through a single infrastructure.

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In the early 1980s academics feared that convergence
would be accompanied with an increased concentration

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of power.

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In the twenty-first century it however became
clear that the opposite was true.

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Convergence has boosted competition and innovation.

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Today's world of ICT,
media and telecommunications is widely diverse,

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partly because multiple services can be offered
via competing infrastructures.

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The opposite effect of convergence
can also be identified:

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divergence:
dedicated and separate infrastructures.

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For example,
railway systems have evolved into various

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highly specialized modes of transportation.

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Whereas in the past the transportation of
people and freight often used the same railway

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infrastructure, nowadays infrastructures are
becoming more specialized.

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For instance high-speed railway trains exist
which run on dedicated,

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specially designed straight tracks,
with sophisticated related technology.

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The same goes for freight trains,
where dedicated tracks have been developed

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especially for the transportation of goods.

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Furthermore we see the development of 'intermediate'
train tracks that have been developed specifically

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for urbanized train traffic.

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This is also known as the 'light rail' concept,
a cross-over between a train and a subway system.

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There are a number of issues that almost always
come hand in hand with convergence and divergence

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in infrastructures.

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Five of these I will discuss here shortly:

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First of all,
convergence and divergence have an effect

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on users and companies who are using the services
provided though infra-systems.

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This often leads to uncertainty and the question
which technologies should be purchased and which not.

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Secondly, convergence or divergence often
lead to the inception of new business models.

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With convergence or divergence,
and the introduction of new technologies,

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new business opportunities arise.

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New technologies,
and especially so-called disruptive technologies,

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often allow for cheaper or better ways to
provide services to customers.

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The first entrepreneurs who are able to develop
new viable business models therewith generate

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enormous first-mover advantages.

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An example is the electricity industry where
we see a wide range of services emerging,

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where the use of smart technology allows for 
a more user centered and demand-side focus.

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These transformations from old to new business
models due to convergence or divergence are

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however often inhibited by large existing
infrastructure companies who may enjoy advantages

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such as economies of scale,
a large customer base and brand reputation.

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These large existing infrastructure companies
are often called incumbents.

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Third,
convergence and divergence are also connected

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to processes of liberalization and market
evolution.

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New markets are created and take over older
markets.

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Think about the decay of the telegraph system
or about the enormous growth of mobile telephone

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networks in countries which never had
a reliable traditional telephone network.

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Often the processes convergence and divergence
which lead to market liberalization and market

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evolution have to be governed
by some form of intervention.

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The reason for this is because our infrastructures
serve public interests.

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Questions that may arise when observing and
analyzing convergence and divergence

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are for example:
How can we enable a transition towards the

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digitization of our telecommunication sector?

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Or how can we improve the sustainability of
our electricity system?

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Should governments be allowed to subsidize
renewable technologies in power production

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or is this a form of undesired and market
disrupting state aid?

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A fourth vital ingredient of convergence are
the rules and institutions that emerge during

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the convergence process and that stimulate
or delay this process.

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Of key importance is the creation of technological
standards.

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Bodies of manufacturers,
service providers,

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but also government agencies can have a large
impact on the convergence process by focusing

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on standardization:
setting up the rules and standards that allow

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for interoperability and interconnectivity
of items.

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For example,
the development of the highly successful mobile

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GSM-standard that has been used all over the world,

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was in no small measure pushed by the European Union.

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In fact, rules and institutions that perform
these functions are of crucial importance

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in the energy world as well.

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Consider for example a new technology such
as the electric vehicle.

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To allow for a successful large-scale breakthrough
of electric vehicles,

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standardization is an issue.

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If you've ever travelled abroad,
you know how problematic the differences between

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different electric equipment can be.

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It is therefore important to standardize and
make electric cars interoperable so that they

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can be plugged in any power grid.

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To achieve this interoperability,
the European Union and the USA

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are actually collaborating in a center for
smart grids and plug-in vehicles to establish

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global standards that may speed up the mass
adoption of electric vehicles.

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A fifth and final ingredient is the issue
of regulation.

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As a result of convergence and evolution of
infra-systems,

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roles and responsibilities and public interests
change.

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And this is where regulation steps in.

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So what role should the regulator have?

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Should the regulator stimulate the development
of a new cheaper infra-system or protect values

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connected to the old technology?

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Think for example about the ability to connect
to the electric or Public Switched Telephone Network.

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In the past when electricity and telephone
networks were introduced in society,

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the government ensured - or promised - that rural areas
would be connected to the gradually expanding grids.

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Should this principle remain in place?

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In the United States,
after hurricane Sandy devastated the Public

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Switched Telephone Network,
a debate emerged whether old standards should

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force telecommunication companies to actually
rebuild their old copper-based public-switched

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telephone networks to remote communities,
or whether they would be allowed to simply

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provide state-of-the-art wireless connectivity.

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And what about new roles?

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For example should regulators in a more competitive
environment be especially interested in issues

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of customer quality or not?

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Another problem with convergence for regulation
is the blurring or blending of the regimes

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as two infra-systems converge.

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For example,
the telecommunications industry has been regulated

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heavily for a long time,
whereas internet-infrastructures have not.

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What public values should be regulated and how?

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These types of issues become increasingly
important if we also consider that also new

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types of values enter the realm of regulation.

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For example should we regulate privacy in the digitized
media world that we have entered and how?

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Because of the blurring or blending of regimes
it often becomes unclear which rules comply,

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which regulator will be in charge
and which incentives will apply.

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For example,
almost everywhere old television industry

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had public committees which governed
what type of information,

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violence and certain advertisements
was broadcasted at what times.

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Clearly, with the role of internet-broadcasting
this authority is changing.

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The way in which new infra-systems operate
lead to different use of technology and thus

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changing values.

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For example,
'fact checking' used to be a golden standard

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with regard to TV-journalism.

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Nowadays, You-tube and twitter have thoroughly
altered the media-landscape and with them

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set new challenges to high-quality journalism.

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So, what can we conclude if we observe the
infra-system landscape?

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Can we identify one universal trend in convergence
across infra-systems?

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It seems that there are multiple developments
unfolding in infrastructures including convergence

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as well as divergence phenomena.

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One converging trend we observe is that in
almost all infra-systems an increase in digitalization

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has occurred.

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On the other hand,
examples of diverging trends are the emergence

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of a green gas network to transport 'waste'-gas
parallel to existing natural gas grids; new

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communal heating systems; or a new type of
water infrastructure where rain water is drained

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separately from the existing sewage infrastructure
to lower water flows that need to be processed

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at waste water treatment facilities.

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Consumer behavior and new technological developments
create a hugely dynamic and unpredictable landscape.

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In the electricity industry,
for example,

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a similar notion of the concept of multi-utilities
- just like in the telecommunication industry -

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has failed miserably.

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Experiments such as internet via the power
cable were often not successful.

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As a consequence of the forces of convergence
and divergence we do however see an important

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trend in the evolution of infra-systems.

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On the one hand we witness the development
of 'prosumer networks' (such as the PV-networks).

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On the other hand we identify meta-networks
such as fibre optic cable networks and electric

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superhighways that allow data and electricity
to be transported across infra-systems in

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large quantities across large distances.

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One thing is certain: convergence and divergence
are important concepts that are closely interrelated

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with the evolution of our infra-systems and
will lead to a large number of governance

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challenges for a long time to come.

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Thank you for your attention.