Recommendation 8

HM Government Acknowledged

The Government recognised the importance of demand for gigabit-capable networks in its Future Telecoms Infrastructure Review, published in July 2018, and its Statement of Strategic Priorities (SSP), which was designated in October 2019. Ofcom has to have regard to the SSP when it is exercising its regulatory functions. The SSP set out the key role of the industry in stimulating demand and take-up of services on new gigabit-capable networks, as the owner of the UK’s broadband networks and the provider of broadband services to consumers. For example, the SSP set out Government’s expectation that Internet Service Providers will provide suitable ‘entry level’ products for consumers at prices similar to those provided on existing networks, including voice only services for those who want them, to aid the migration of consumers to these new networks. The SSP also set out the important role that Ofcom has to play, including in ensuring industry readiness for gigabit switchover. Ofcom will need to protect consumers, safeguard competition and ensure that switching processes are easy, reliable and transparent, including where consumers switch between different networks. The Government recognises that it can play an important supportive role in stimulating demand for gigabit-capable networks, including by addressing the difficulties that consumers experience in navigating the communications market. This is why the Government is working with the Gigabit Take-Up Advisory Group (GigaTAG), being led by the CBI, the Federation of Small Businesses and Which?. GigaTAG published its interim progress report in December 2020. The Government ​ ​ looks forward to receiving their final report, expected in May, with recommendations for industry, Ofcom and the Government. The Government will carefully consider GigaTAG’s recommendations. Since the SSP was published, Ofcom has taken a variety of actions that we expect to help to stimulate demand for gigabit-capable broadband. For example, Ofcom has put in place new rules that require communication providers to send a notification to their customers when nearing the end of their contract. In October 2020, Ofcom also published a statement outlining new rights for telecoms consumers. These rights seek to improve the information available to them and which will make switching easier. These include new gaining-provider led-switching (GPL) provisions when consumers are switching between different broadband networks. Ofcom has recently published a consultation with proposals for implementing a ‘One Touch Switch’ system. The Government also consulted on its Smart Data initiative in June 2019 and published its response in September 2020, stating its desire to extend the Government’s powers to mandate firms’ participation in a smart data - or Open Communications - initiative in telecoms. Open Communications has the potential to increase consumer awareness and switching through better information and new and innovative third party services. In August 2020, Ofcom published a consultation examining the case for a smart data initiative in the sector. This set out Ofcom’s initial thinking to understand the potential uses and benefits, how it could best work for people and businesses and the associated costs.