Communications regulator Ofcom has today announced a review of the UK’s digital communications markets to ensure communications providers and services “meet the needs of consumers and businesses”.
The review will examine competition, investment, innovation and the availability of products in the broadband, mobile and landline markets.
Ofcom said the review will consider a range of issues, but will focus on “ensuring the right incentives for private-sector investment”, “maintaining strong competition and tackling obstacles or bottlenecks that might be holding the sector back”; and identifying whether there is “scope for deregulation” in some areas.
The review will be Ofcom’s second major assessment of the wider telecommunications sector. The first began in December 2003 and led to new rules which allowed competing providers to access BT’s Openreach network, on equal terms, in order to offer phone and broadband services to consumers.
However, Sky’s chief executive, Jeremy Darroch, said the latest review must address what he said was Openreach’s “conflict of interest” as a subsidiary of BT or “risk extending the problems” that are affecting the industry and its customers today.
“The sector is vital to the UK’s future but there are serious questions about whether the existing structure can deliver the infrastructure, innovation and choice that consumers and businesses need,” he said.
Tech UK, which represents more than 850 tech companies, also said the review was to be welcomed. “The UK has a world class communications network, which is vital to supporting the growth of our digital economy,” commented Antony Walker, deputy CEO of techUK.
“To maintain our leadership position, a supportive policy and regulatory environment is needed to encourage ongoing investment and innovation. That’s why we’re particularly pleased to see that Ofcom’s review will include ensuring the right incentives for investment.”
The first phase of the review will examine current and future market factors that may affect digital communications services, and current regulatory approaches. To inform this work, Ofcom intends to engage over the coming months with a wide range of stakeholders – including industry, consumer groups, the UK Government and devolved administrations – through meetings and workshops.
Ofcom expects to conclude the review’s second phase by outlining initial conclusions around the end of the year.
