Source · Select Committees · Culture, Media and Sport Committee
Recommendation 13
13
Paragraph: 109
We are concerned that Ofcom has significant catching up to do for its regulatory regime...
Conclusion
We are concerned that Ofcom has significant catching up to do for its regulatory regime to deliver the Government’s goals and protect consumers. The regulatory framework proposed in the Wholesale Fixed Telecoms Market Review has the potential to undermine the Government’s £5 billion subsidy for hard-to-reach areas and does not accurately reflect the competitive landscape for fixed telecoms. Consideration will also have to be given to the potential impact of the Government’s new target and spending plans. We expect Ofcom to address these issues in its final statement on the Wholesale Fixed Telecoms Market Review 2021–26 and to write to us explicitly outlining how it has done so.
Paragraph Reference:
109
Government Response
Not Addressed
HM Government
Not Addressed
The Government set out the importance of regulation that promotes competition and investment in new gigabit-capable networks wherever possible in our 2018 Future Telecoms Infrastructure Review and Statement of Strategic Priorities. However, these documents also recognise that it would be necessary for the Government and potentially the regulator to intervene in areas of the country where competition and commercial investment is less likely. Since the publication of these documents, the Government has engaged closely with Ofcom on the interaction between our £5 billion UK Gigabit Programme and their regulatory proposals, particularly in relation to its proposed Area 3. We are confident that our publicly subsidised intervention and Ofcom’s regulations will work effectively together to maximise nationwide gigabit capable coverage by 2025.