Ofcom Consults on the Proposed 10Mbps Broadband USO

The UK telecoms regulator has today launched a new ‘Call for Inputs‘ to help inform the design of the Government’s proposed broadband Universal Service Obligation (USO), which would ensure that everybody could get a minimum Internet speed of 10Mbps (Megabits per second) by 2020.

The Government has itself already launched one consultation on the legally binding USO (here) and as part of that they’ve also asked Ofcom (read the DCMS letter) to investigate the proposed speed, technical measures, funding, scope and affordability of implementing such a provision.

The existing USO is comparatively weak and only requires that BT (or KCOM in Hull) deliver, following the “reasonable request of any End-user” (i.e. demand-led), a telephone service that includes the ability to offer “data rates that are sufficient to permit functional internet access” (here); strictly speaking this box can be ticked via ancient dialup (28.8Kbps) connections.

The current telephony USO also sets a cost threshold of £3,400. For connection costs below this, households pay a standard connection charge to BT of £130. For the most expensive to connect premises, consumers have the option of covering any construction charges over this threshold, alongside the standard connection charge. But expanding this to include a 10Mbps USO could quickly become very expensive for some remote areas.

Specification and scope of the USO

How should the minimum technical performance of the USO be specified?

1.7 We have said that 10Mbit/s is the appropriate level at present for a broadband USO. This is also the Government’s ambition for the USO. However, other factors will also affect how ‘decent’ a consumer’s or business’s broadband connection is. These may include upload speed, latency, jitter, contention and capacity.

1.8 We are interested in stakeholders’ views on the minimum download speed for a broadband USO, as well as which other aspects of technical performance should be specified, and at what level.

1.9 We recognise that a variety of technologies, including wireless, are capable of delivering download speeds of 10Mbit/s. We aim to encourage the deployment of the most appropriate technology for different local circumstances so as to achieve the goals of the USO in the most efficient way.

How should we ensure the USO is affordable?

1.10 European and UK legislation requires Ofcom to ensure the universal service is provided at an affordable price. We are therefore considering how we might best ensure that this is the case. Options for achieving this include requirements for uniform pricing of broadband services or caps on charges. We are interested in views and evidence on what measures it may be appropriate to impose, if any, to ensure that services provided under the USO are affordable.

Should there be a social tariff for broadband services?

1.11 A USO may also include particular measures for the benefit of those on low incomes or with special social needs. For example, BT (and KCOM in Hull) provides a ‘social tariff’ for consumers on certain income-related benefits. We are interested in evidence and views on the extent to which a social tariff for broadband services may also be appropriate.

The Government’s own consultation is due to run until 18th April 2016, while Ofcom’s Call for Inputs will be open until 23rd June 2016 and the regulator aims to “provide our final advice to Government” by the end of 2016. It will be interesting to see how many ISPs, other than BT and KCOM, will voluntarily put themselves forward for helping to deliver the USO (Virgin Media have already ruled themselves out).