British telecom regulator Ofcom today announced its plans to review Digital Communications that will examine competition, investment, innovation and the availability of products in the broadband, mobile and landline markets.
The telecom regulator is doing this major review after a gap of 10 years.
This review will be Ofcom’s second major assessment of the telecom sector. The first major review started in December 2003 and completed in September 2005. The review led to new rules which allowed competing providers to access BT’s network, on equal terms, to offer phone and broadband services to consumers.
The Ofcom statement does not talk about bringing out guidelines on net neutrality in the U.K. telecom market. The recent FCC norms on net neutrality was objected by several telecom operators such as Verizon and AT&T in the U.S.
Ofcom will conduct the review in two phases. The first phase of the review, which will examine current and future market factors that may affect digital communications services, will conclude with a discussion document in summer 2015. The second phase of the review will outline initial conclusions around the end of the year.
The new review will aim to ensure the right incentives for private-sector investment, which can help to deliver availability and quality of service. It will also focus on maintaining strong competition and tackling bottlenecks that may be holding the telecom sector back. The special review will consider any scope for deregulation in some areas.
Steve Unger, acting chief executive of Ofcom, said: “We have seen huge changes in the phone and broadband markets since our last major review a decade ago. Only five years ago, hardly any of us had used a tablet computer, high-definition streaming or 4G mobile broadband.”
The Strategic Review of Digital Communications will consider the impact of current and future developments for regulation, including: plans from operators for network investment; telecoms services increasingly operating over the internet; and various potential mergers, acquisitions, joint ventures and partnerships in the sector, said Ofcom.
Ofcom says its periodic reviews have assisted both telecom operators and subscribers. For instance, since 2005 broadband speeds have increased more than 20-fold, while prices fell by around 50 percent; and the cost of a monthly mobile bundle has halved to £16 from around £32.
Baburajan K
editor@telecomlead.com
