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Reshuffle and Ofcom Rethink as UK Government Updates 2003 Communications Act

Posted: 21st Jan, 2011 By: MarkJ
UK communications act DCMS review 2011The UK governments Secretary of State for Culture, Olympics, Media and Sport (DCMS), Jeremy Hunt MP, has announced a "thorough review" of media and communications that will lead to a fresh take on the 2003 Communications Act. The crucial Act was ultimately responsible for establishing Ofcom as Oftel's replacement and identifying regulatory controls to cover broadband / ISPs, telecoms and television.

Jeremy Hunt told the Oxford Television Convention:

"It is now seven years since the last Act – a long time in today’s fast-paced environment. Now is the moment to make sure we have the most modern, innovation and investment-friendly legal structure in place. One that will allow our digital and creative industries to move to the next stage, and to play their fullest possible role in promoting competition, innovation and economic growth.

I want to hear how a new Communications Act can create regulatory certainty. The certainty that people need to continue to develop and invest in the high-quality technology and content that is made here but enjoyed by people all over the world. I am prepared to radically rethink the way we do things."

Yesterday we reported that this review (here) would focus on updating the act to cover emerging broadband television ( IPTV ) services but not online video sites (e.g. YouTube), which seems odd at a time when UK IPTV products have yet to really take off. However Hunt is also likely to use the review as a tool for re-shaping Ofcom in other areas too.

Jeremy Hunt continued:

"What do we need to do to help our businesses grow and evolve between now and 2025? Where can regulation help and where is it a barrier? What can we do collectively to enhance the whole UK market?

This is not about tweaking the current system, but redesigning it – from scratch if necessary – to make it fit for purpose."

The government intends to publish a Green Paper at the end of 2011 that will set out the full scope of their new Communications Bill, which will ultimately be put in place during 2015 and should "last for at least a decade".

At more or less the same time the Prime Minister, David Cameron, has also controversially transferred any remaining responsibility for "broadband policy and delivery" (including telecoms, internet policy and related governance) from the Department for Business, Innovation and Skills (BIS) to DCMS.

Ed Vaizey, formerly a joint minister between DCMS and BIS, will now report solely to the Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt. It is also said that he will continue to work closely with BIS ministers.

Needless to say that ISPs and opposition politicians have already raised concerns about effectively being put in the hands of a media sector friendly department, which they are often found to be in conflict with (e.g. 2010 Digital Economy Act).

An ISPA Spokesperson told PC Pro :

"[The ISPA] would rather this area was looked over by BIS, as it always has been. The DCMS looks after interests in the music industry, which is a key area surrounding internet policy at the moment, so it’s not great to see more power handed to a department that is not associated with our industry."

In fairness not much is likely to change, with the key people (Ed Vaizey and Jeremy Hunt) still being in charge of the same aspects as before. As a cost saving move it might make sense and indeed internet access and content are coming together more now than ever before. However in other areas, as highlighted above, they remain bitterly divided. A conflict of interest for DCMS, perhaps.
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