The government is bringing out a white paper on telecoms
regulation.
The Government is currently seeking opinions on the future
regulatory regime for telecoms in the UK, and plans to produce a
white paper on the subject before the end of the year.
The outcome of this exercise is crucial for UK businesses
because the existing regime, which is policed by Oftel, is simply
not working.
That BT has prevaricated over the introduction of real
competition for broadband communications in the local loop, is just
the latest example of Oftel's failure to act effectively.
Giving up on Oftel
Last week a clutch of leading international telecoms firms gave
up waiting for Oftel to get tough with BT and abandoned plans to
enter the UK market, offering broadband services to homes and
businesses. They were outraged at the limited number of exchanges
that BT was willing to open up to rivals' equipment - less than
half of the 860 requested exchanges.
The European Commission and senior ministers have now lost
confidence in Oftel's ability to force BT to open up local phone
services to competitors.
It now looks like the UK will lag behind other leading countries
in the introduction of widespread access to broadband services -
where it once looked like leading the world.
This is not the first time that BT has been allowed to hold back
or overprice key technologies. British firms have always paid more
than their rivals in the US and elsewhere in Europe for leased
lines. And the UK's take-up of ISDN has been far slower than many
hoped because it costs hundreds of pounds more than it does in
other countries, such as Germany.
An effective, robust, nation-wide broadband communications
network is an essential part of the infrastructure for a 21st
century economy. In future it will be at least as important as an
efficient road network. And, as with roads, the Government has a
responsibility to make sure that this infrastructure is in
place.
That doesn't mean it has to be delivered or paid for by the
state. But it is the Government's duty to put in place a regulatory
regime that will ensure the market delivers what is needed.
The Government says it wants to make the UK the best place in
the world to do business online. When you weigh up the factors that
make a place attractive for e-business, few are more important than
the communications infrastructure. So this is perhaps the best test
yet of the Government's determination to deliver on that
pledge.
Brain game
The Government should put the civil service's best brains to
work on devising a more effective regulatory regime. This is a
highly complex task, given the speed of technology change and the
convergence of the telecoms, broadcasting and content industries. A
single regulator covering all three industries is the most likely
outcome, but balancing and prioritising the objectives of such a
broad regulator will not be an easy task.
The IT community also has a part to play. There is a wealth of
experience out there, which has been acquired through years of
dealing with the inadequacies of the present telecoms regime.
If you want to see a change for the better, make sure your views
are heard. Get involved in the consultation exercise.