Chris Smith Unveils Ofcom
The Communications White Paper published today will see the creation of Ofcom, a regulator for the whole communications sector including TV, radio and telecommunications. It will have concurrent powers with the Office of Fair Trading to exercise Competition Act powers for the communications sector, and it is thought that it is these general powers which will prove more useful in an increasingly competitive sector than specific sectoral ones.
In most cases rules dealing with issues specific to a sector will cover consumer protection, access and interconnection. However, where companies have significant market power, stronger sectoral competition rules will be applied. Ofcom’s powers will extend to, and include, EPGs and similar systems as they are introduced.
In terms of quality control, the paper proposes a three-tier structure of broadcast regulation. The basic tier would support standards across all services, while further tiers would be applicable to public service broadcasters, the BBC and Channel 4, which will be required to develop detailed statements of programme policy and regulatory arrangements.
Thus the independence of the BBC will largely remained unchanged, although guidelines surrounding public service broadcasting at the Corporation will become more severe. “Public service broadcasting will become more, not less important to society, especially as a forum for informed, public democratic debate and high quality material,” Smith said.
Presenting the White Paper, Chris Smith confirmed that Channel 4 will not be privatised. ITV’s regulation is to become less prescriptive, while Channel 5’s public service obligations are to be reviewed as digital TV makes its style of popular programming more widely available.
The new regulatory body will incorporate the Radiocommunications Agency’s responsibilities for managing radio spectrum; will have responsibility for the regulation of electronic communication networks and services, including telecommunication systems and other activities currently regulated by Oftel; and will also be responsible for the licensing of broadcasting services.
The White Paper is to tackle the lack of regulation on the internet by establishing a set of principles and objectives for regulation of content, based on the general protections provided in law. Ofcom will have responsibility for maintaining these standards.
A new consumer panel will be established to advise the regulator. It will be able to research consumer views and concerns on service delivery, represent these concerns to Ofcom and other relevant bodies, and publish its findings and conclusions.
The ITC today welcomed the proposed changes. Sir Robin Biggam, ITC chairman, said: “Public service broadcasting and standards are quite rightly high on the White Paper agenda. We now look forward in the months ahead to the debate on the bill before the introduction of legislation and we will continue to advocate simpler but not softer regulation, the involvement of the viewer and the maintenance of public service broadcasting as a leading contributor to the democracy and culture of the nation.”