Ofcom Appoints Adjudicator To Boost Broadband Competition
Media super-regulator Ofcom has appointed Peter Black, an experienced telecoms executive, as an independent telecoms adjudicator as part of the watchdog’s blueprint for growth of broadband in the UK.
Ofcom unveiled its plans today, announcing that its focus will now shift from rollout and coverage of broadband services to local loop unbundling in order to encourage greater competition between internet providers and telephony companies.
Local loop unbundling, the practice of allowing third party companies access to BT’s local telephone exchanges, should increase competition by removing BT’s control over network infrastructure. However, previous attempts have so far failed to succeed on a large scale.
Several broadband providers have complained that BT’s virtual monopoly over the UK’s internet infrastructure has stifled the growth of rival networks. A coalition of internet service providers raised their concerns earlier this year, calling on Ofcom to “enable true competition and the development of innovative and competitive broadband across the UK” (see Broadband Britain Being Stifled By BT Monopoly).
Ofcom’s decision not to intervene directly echoes a similar decision to appoint David Connolly to oversee the TV market and resolve disputes between media agencies and ITV (see Starcom Motive’s Connolly To Oversee ITV Airtime Sales). Black’s role will be virtually identical, but will see him overseeing the fast developing broadband market.
Black’s appointment is backed by a total of 12 telecoms companies, including BT, and was welcomed by Ofcom’s chief executive Stephen Carter. He said: “We welcome BT’s commitment to making the process work, we welcome the fact that 12 of the most significant companies have signed up to the independent Adjudicator scheme; and we hope this drives growth in the future.”
The switch by Ofcom from concentrating on increased availability to reduced price and increased competition marks the next stage of Britain’s broadband strategy. Official figures suggest that the UK currently ranks third in the world in terms of coverage and competitiveness and joint sixth with Italy in terms of take-up (see Britain On Track To Lead Broadband Nations).
Ofcom: 020 7981 3040 www.ofcom.org.uk
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