The White Paper Ian Moss

THE COMMUNICATIONS WHITE PAPER  In May of this year the Government announced that it was planning a Communications White Paper  In June, the Director General submitted a paper to the White Paper team setting out Oftel’s views

What was Oftel seeking?  Single sectoral regulatory framework  Maintenance of ex ante rules to complement the Competition Act  Rules to promote competition by enabling competitors to the networks and gateways of operators with market power  Rules to safeguard access to services for consumers

What was Oftel seeking (2)  Proportionate regulation  Rolling back of regulation as competition develops  Self-regulation and co-regulation where possible  A single regulatory framework for both economic and content regulation under a single regulator

Consistency with Oftel’s submission  The policy proposals set out in the White Paper reflect to a considerable extent Oftel’s views

The regulatory framework for the communications sector  White Paper proposes a single regulatory framework encompassing telecoms, broadcasting and radiocommunications  This framework will be administered by a single regulatory authority undertaking sectoral regulation (both economic and consumer protection) and content regulation

Ofcom  Ofcom will undertake the work of Oftel, the ITC, the RA, the R.Auth and the BSC  Ofcom will however be an entirely new body - not a merger of existing agencies  The new statutory body will comprise a board rather than having a single regulator

The Government’s policy objectives  To help create the most dynamic and competitive market possible for communications services;  To ensure universal access to diverse services of the highest quality; and  To safeguard the interests of citizens and consumers

The economic regulatory framework will consist of: ·Sectoral specific economic regulation to promote effective competition and ensure that consumers are adequately protected  The Competition Act, applied concurrently by the OFT and OFCOM in relation to anti- competitive behaviour

Sectoral rules and Europe  The sector specific economic rules under this framework will be determined by the European Directives that are currently being negotiated  These rules will apply to all electronic communications networks and services  The regulation of content is outside the scope of the proposed European framework

Ofcom’s principal objective  Ofcom will have a principal duty to protect the interests of consumers through the promotion of open and competitive markets

The consumer panel and consumer complaints  A new consumer panel will be established to undertake research and advise Ofcom  Will not deal with complaints about service quality  Complaints that are not resolved satisfactorily by the communications company will be dealt with by an industry sponsored ombudsman  Complaints about the content of television programmes will be dealt with by the regulator

Code of practice and standards  The communications industry has been challenged to devise and implement an effective code of practice for service delivery, supported by effective means of redress where service standards are not met  The industry will be encouraged to develop standards for the interoperability of telecommunications equipment

Universal service  The Government will continue to ensure that those telecommunication services that are used by the majority and are essential to full social and economic inclusion are made available to everybody on reasonable request, at an affordable price  The Government will aim to achieve universal access to the internet by 2005

Access to other communications services  The Government will promote widespread access to higher bandwidth services  The Government will ensure that public service TV channels are available to everyone as now, both before and after switchover to digital television  BBC radio services will continue to be universally available

Content regulation  Ofcom will be responsible for content regulation and maintaining content standards  A high level set of principles will be established for the regulation of content across all electronic media  Ofcom will develop with the industry codes of practice on content standards

The proposals are consistent with Oftel’s long term strategy  Consumer is central  Focus on effective competition  Recognition of the need for appropriate and proportionate sector specific rules linked to the level of competition in the market  Co and self regulation initiatives are encouraged

Next steps  Consultation period until 12 February 2001  Draft Bill - earliest date: summer 2001  A Communications Bill may be included in the 2001/2002 session…or it might have to wait until the 2002/2003 session  After the Bill receives Royal Assent, it will take some time before all its provisions are implemented (including the establishment of Ofcom)

When?  All this suggests that the earliest date for Ofcom is 2003 and it may not be in place until 2004  ‘Pathfinder’ groups are to be established  These groups will include representatives from the regulators and relevant Government departments  There will be groups to explore and discuss policy issues and practical matters including staffing and accommodation