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UK Government Starts Review of the Communications Act and Eyes Deregulation

Posted: 17th May, 2011 By: MarkJ

The UK governments Secretary of State for Culture, Media and Sport (DCMS), Jeremy Hunt, has officially begun a "wide-ranging review" of the 2003 Communications Act (i.e. the rules that govern much of Ofcom's remit to regulate) by writing an open letter and seeking feedback from the entire industry (internet providers, telecoms, media firms.. even consumer groups etc.).

The government intends to publish a Green Paper at the end of this year that will set out the full scope of their new Communications Bill, which will be followed by a White Paper and Draft Bill before April 2013. Hunt hopes that the new act will ultimately be put in place by 2015 and "support the sector for the next 10 years and beyond".

The Secretary of State (DCMS), Jeremy Hunt, said:

"Ten years ago few could have predicted the extent to which developments in communications and media technology would influence our lives. Broadband is now available to 70 per cent of UK homes, music downloading has revitalised the singles chart and the power of social media has not only had a major impact on our day to day lives but is influencing political change around the world.

So the question is how do we stay ahead of the curve? We need to imagine what new technologies will emerge and how broadcasting and telecommunications might look in another 15 years. We want a communications framework that will drive growth and innovation, remove unnecessary burdens and continue to protect consumers and the public."

The government is clearly not yet ready to set down any firm proposals of its own, although the phrase "deregulatory approach" crops up more than once, especially when spoken in relation to the mobile and broadband ISP sectors. There's also a very specific mention of "reducing barriers to private investment in superfast broadband networks".

It's already known that the new act will include limited rules to cover emerging broadband television ( IPTV ) services, albeit not online video sites (e.g. YouTube). Back in January of this year Hunt noted that it would be impossible to introduce blanket regulation for internet based TV services.

Extract from Hunt's Open Letter

The UK is already a world leader in the broadband and telecommunications market, ahead of Germany, Japan and the US in terms of broadband penetration (at 70% of households), and the availability of an enhanced 3-G service for mobile data transfer at 87% of the total UK population. We want to ensure we have the framework in place to enable further success and promote healthy competition and growth in this innovative sector.

We need to adopt a flexible solution to this challenge. A deregulatory approach that deals with these developments to the benefit of both consumers and citizens, and also industry, is the aim. Though the focus in this letter is on the growth aspect of the review, the wider public interest will always underpin our approach to how any issues are addressed. We remain committed to the principle of independent regulation and will ensure that Ofcom has the right powers and duties to work in a way that gives businesses confidence in the regulatory system.

The Conservative lead coalition government had, prior to winning the May 2010 General Election, expressed a desire to see Ofcom scrapped. In reality that move was never quite feasible and would have caused too many problems; as a result the new Communications Act will instead seek to adjust Ofcom's existing powers. The government has thus given the wider telecoms and media industry, including consumer groups and trade bodies, until 30th June 2011 to respond.