Progress in making digital communications work for everyone Steve - - PowerPoint PPT Presentation

Ofcom’s Strategic Review of Digital Communications

Progress in making digital communications work for everyone

Steve Unger, Strategy Group Director Jonathan Oxley, Competition Group Director 26 July 2016

Ofcom’s vision for the long term

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We set out plans in February to help make the UK a world-leading digital economy over the next ten years and beyond

Under our long-term strategy:

• Everyone in the UK will enjoy fast, reliable broadband
• We will move to a fibre future: widespread, competing networks connected directly to

homes and businesses, taking us from ‘superfast’ to ‘ultrafast’

• The latest mobile phone technologies will be rolled out across the UK
• Competition will drive innovation and affordable prices
• Vulnerable people will be protected through effective, targeted intervention
• UK will be a world leader for quality and coverage of its telecoms services, ensuring

consumers and businesses enjoy strong competition and fair prices for years to come

Updates today on three major areas

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OPENREACH REFORM

A new governance structure, and greater independence from BT

NETWORK CHOICE

Major shift to promote new fibre networks, using BT’s infrastructure

QUALITY OF SERVICE

A step-change in quality across the industry, and automatic compensation

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Our immediate and longer-term strategy

Wholesale Local Access Review: ducts/poles, QoS and Openreach standards

(consultation)

Business Connectivity Market Review

(statement April)

New USO for broadband 98% indoor 4G coverage Connected Nations Report: new tools

(December)

700 MHz release

(est. 2020)

First annual QoS report

(early 2017)

Automatic compensation: proposals and consultation

(call for input in June)

Pay-TV and bundles switching

(coming shortly)

Review of GCs completed (spring)

Note: future dates to be confirmed

Openreach structure proposals; ducts and poles update (today) Mobile switching

(consultation March)

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Openreach reform

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OPENREACH REFORM

Openreach today

• Company is part of BT Group, but must treat all customers equally
• Structure has delivered benefits since 2005, but we identified problems:
• Governance lacks sufficient independence
• BT Group control over strategic decision making
• Insufficient consultation on investment plans
• Limited capabilities in areas such as R&D

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OPENREACH REFORM

Openreach in the future – our proposed model

• Distinct company – own ‘Articles of Association’, industry-wide interests
• Openreach Board – with a majority of non-exec directors, including the Chair
• Accountability – new Board appoints and holds executives to account
• Greater consultation – obliged to consult, with confidential phase
• Greater control – including own staff and assets
• Strategy – developed by Openreach, in all customers’ interests
• Budget – greater control, within a budget approved by BT Group
• More capabilities – in areas such as research and development
• Independent branding – no longer associated with BT

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OPENREACH REFORM

Openreach in future – our proposed model

• Our solution should be effective and proportionate
• Designed to ensure that Openreach acts more independently from

BT Group, taking decisions for the good of the wider telecoms industry

• If it cannot achieve this, BT and Openreach could be split into two

separate companies, under different ownership

• New model must respect BT corporate governance, shareholder rights

and the contractual and pensions interests of staff

• We are seeking views by 4 October

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Network choice

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NETWORK CHOICE

A choice of how to receive broadband

• February strategy to promote large-scale ultrafast networks. Major
• perators have stressed importance of fibre; this gives them the tools
• Reducing the country’s reliance on Openreach, and providing greater

choice of technology and provider

• Openreach must open up its tunnels and poles, and provide

comprehensive data on its network – a ‘digital map’ of the UK

• Competition will incentivise Openreach to improve its network
• Protecting investment incentives – setting prices that encourage

network investment by all, for example through pricing flexibility for risky new investments

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NETWORK CHOICE

How duct and pole access works

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NETWORK CHOICE

Progress since February

• BT required to draw ‘digital map’ of its duct and pole network.

Demonstrated last week to competing providers.

• Openreach now trialling new sharing process, working with five

telecoms companies. They can inspect ducts and poles, clear blockages and install fibre immediately, at lower cost

• Communications (Access to Infrastructure) Regulations come into

force on Sunday – for easier sharing of infrastructure

• Several companies laying ultrafast fibre: Virgin Media, CityFibre,

Sky, TalkTalk, KCom, Hyperoptic and Gigaclear

• Further detail on ducts and poles from Ofcom in autumn

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Quality of service

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QUALITY OF SERVICE

Work to improve quality of service across the industry is well underway, including:  Automatic compensation (June) Published call for input on requiring telecoms companies to provide automatic compensation when service falls short  Improving business lines (April) Confirmed new rules requiring BT to provide ‘dark fibre’ access to its leased-line network, to boost innovation and competition Measures coming up include:  Tough performance rules on Openreach (later this year) We will set out stricter minimum requirements for Openreach to repair faults and install lines more quickly  Performance tables (early 2017) We will publish first report on providers’ quality of service, showing best and worst performers so customers can shop around

Progress on quality of service

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QUALITY OF SERVICE

Other recent work to improve telecoms services:  Easier mobile switching (March) Published detailed proposals for making it simpler and speedier for mobile customers to switch network  Advanced coverage checkers (March) Launched enhanced mobile and broadband coverage maps in maps, incentivising operators to improve  Text to opt out of nuisance calls (May) Ofcom and the Telephone Preference Service launched a simple ‘text-to-register’ service for mobile users Measures coming up include:  Simpler switching for pay TV and bundles (shortly) We will announce plans to make it easier to switch landline, broadband and pay-TV services.  Coverage checkers by address We plan to produce updated maps with even more comprehensive information on mobile and broadband coverage by individual address

Progress on empowering consumers

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Better coverage

BETTER COVERAGE Better broadband BDUK aiming for superfast to reach 95% by 2017 Government committed to min.10 Mbit/s broadband for all by 2020. We consulted in April on the USO’s design;

• utlined need for minimum

speed to increase over time Better mobile Ofcom rules mean 98% of homes and offices must get indoor 4G mobile next year Mobile operators must reach 90% voice coverage of UK geography next year

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Our immediate and longer-term strategy

Wholesale Local Access Review: ducts/poles, QoS and Openreach standards

(consultation)

Business Connectivity Market Review

(statement April)

New USO for broadband 98% indoor 4G coverage Connected Nations Report: new tools

(December)

700 MHz release

(est. 2020)

First annual QoS report

(early 2017)

Automatic compensation: proposals and consultation

(call for input in June)

Review of GCs completed (spring)

Note: future dates to be confirmed

Openreach structure proposals; ducts and poles update (today) Mobile switching

(consultation March)

Pay-TV and bundles switching

(coming shortly)