Convergence of video and telecoms means regulatory bodies may have
to be merged, writes Paul Mason
One of the highlights of the UK Online report is the rapid
take-off of digital TV. One in five households now has it. "Even
America only has one in six," Tony Blair proudly announced.
Later this year, digital TV companies will start to offer "true"
Internet services over set top boxes. Meanwhile, there is
speculation that digital broadcaster BSkyB is set to link up with
BT to provide video content down the next generation of copper
wires.
The prospect of video and telecoms convergence is forcing the
Government to consider merging regulatory bodies for "content" and
"carriers" into a single giant regulator that commentators have
dubbed "Ofcom".
A White Paper is in the offing, and it is highly likely that
some proposal for a merged content/network regulator will come
forward. The crucial issue, however, is the role of the merged
regulator: will it be active or passive?
Former Whitehall mandarin Sir Quentin Thomas chaired an expert
seminar on the forthcoming White Paper in July this year. One
option would be for the White Paper simply to identify "regulatory
bottlenecks and deregulatory tripwires" - a hands-off regulation
model aimed at removing imperfections in the market. "On another
analysis," he acknowledged, "the regulatory frameworkÉ is so
significant, that the 'market with modifications' model is
misleading. Better for the Government to acknowledge frankly its
own central role in charting the way ahead."
Commenting on the proposed White Paper, David Harrington,
director general at the Telecommunications Managers Association
(TMA), said, "There is no universal panacea, but this initiative is
likely to put increased focus on formal regulation rather than
self-regulation or partnered regulation.
"There has been a lot of discussion about the proposed deal
between BSkyB and BT providing a joint service down ADSL copper,
which indicates there is a strong need for a very tight and unified
regulatory grip. It's about regulation at content and network
ownership levels."
"Ofcom should be an organisation that links cultural regulation
and economic regulation very tightly, so an impact on one area
doesn't take another by surprise."
Philip Virgo, secretary general of Eurim, the IT
parliamentary-industry body, agreed. "The regulatory structure in
the UK is over- complex and should be simplified into a structure
that brings one roof over all the regulatory powers in the
communications industry.
"It will not be an easy bill to go through, but we are delighted
to see the government pursuing this," he said.
Additional reporting by Hazel Ward