The strategic review, which begins next year, will examine the extent to which the sector benefits from competition in the rapidly expanding fixed and mobile phone markets, as well as the narrowband and broadband internet markets.
It will look at the success of regulation in delivering the goals of lower prices, higher quality of service and wider choice. The impact of emerging technologies will also be assessed as a driver of new opportunities for services providers and consumers.
The project team leading the review will report directly to Ofcom chief executive, Stephen Carter, who said: “The arrival of the new converged communications regulator presents a unique opportunity to look afresh at these important and dynamic markets.”
He added: “The outcomes from this wide-ranging and comprehensive analysis will inform OfcomÂ’s future approach to the telecommunications sector. This will include the creation of a new strategic regulatory framework. This framework will set out opportunities to withdraw from regulation, wherever appropriate, as well as identifying areas where regulation is effective and should be retained, or applied in a different manner.”
The three-phase review will build on the work of the outgoing telecommunications regulator, Oftel, which will be replaced by Ofcom on 31 December. It is intended that the review will be completed in time to inform an assessment of the new EU market review framework as its implementation is completed across Europe.
Ofcom has also announced the appointment of Dr Helen Weeds as its chief economist with responsibility for leading a small team within the strategy and market developments group providing economic analysis across OfcomÂ’s competition and regulatory work.
The advertising industry has given a mixed reaction to Ofcom’s recent decision to lift the rules banning the joint selling of television airtime, as it looks likely that the move will trigger a further round of sales house consolidation (see Ofcom’s Airtime Sales Ruling Receives Mixed Reaction).
