broadband telecommunications network delivers and facilitates infotainment content delivery SO that one may read a newspaper, listen Content Delivery and Net Neutrality Subscriber Capacity Retail Content Service Content Retailer operator Content aggregator Content Retail Device Capacity Content wholesale wholesale Content Content Device Core network manufacturer provider operator Content Content wholesale Content Content producer/owner Figure 14.5 Business system diagram for a telecommunications content provision business to streamed music or watch a movie on-line. While there may exist close collaboration or even cross-ownership between the entities in the parallel links, in general the business chains are independent. The dynamics of 'pipe' and service/content businesses have undergone a dramatic change since telecommunications industry deregulation and the rise of the internet. Historically 'pipe' services such as local and long-distance telephony, and mobile telephony and messaging accounted for nearly all of ARPU. With deregulation and increased capacity supply due to optical fibres and the new generation of wireless standards the portion of ARPU associated with these services has declined. Fixed telephony ARPU has now been augmented with fixed broadband services such as xDSL and cable. On the wireless side 'data' services have become a substantial addition to the overall ARPU. While the total ARPU has remained stable the share of data has risen from a small fraction to more than half [12]. Figure 14.6 shows the decline in voice ARPU VS increase in data ARPU in the United States. Most of the data ARPU is associated with content services. In contrast to the general decline in the ARPU and profitability of the 'pipe' business, the size of content business has grown significantly. The ratio of total revenue of the overall telecommunications ecosystem raised by 'pipe' and content businesses may be illustrated as shown in Figure 14.7. In fact it is reported that the revenue associated with data is now surpassing 