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www.ofcom.org.uk
Strategic Review of Telecommunications Phase 2 Proposals 18/11/04
Ofcom today published its proposals to support the growth of greater competition, innovation and investment certainty in the UK telecommunications sector.
The proposals are intended to prepare the ground for a new regulatory framework as the market undergoes what amounts to a move from analogue to digital; away from the switched-circuit fixed line networks of the past and towards next-generation networks based on internet protocol.
The challenge for the sector
Responses to Ofcom's Phase 1 consultation (published 28 April 2004) and Ofcom's own research indicated the following:
1. The telecoms sector is changing rapidly as it moves from historical business models based on the delivery of voice calls over switched-circuit networks to business models based on the delivery of data over internet protocol networks.
2. These changes bring uncertainty as well as opportunity, particularly for investors; yet companies have a limited opportunity in time to make the significant, long-term commercial decisions required if they are to remain competitive in the future.
3. The UK telecoms market offers choice and value to the end user in a number of areas, yet despite twenty years of regulatory intervention, competition in fixed line telecoms remains fragile. Additionally, many of the advantages upon which competitors have based their businesses are being eroded, not least by the transition to next generation networks.
4. Consumers' behaviour is changing as new technologies penetrate the mass-market. However, with growth in choice and innovat ...