Tag: Ofcom

Pubcasters still account for more than half of broadcast TV viewing, claims Ofcom

NEW DELHI: Even as Prasar Bharati continues to struggle with the Sam Pitroda report which was largely a reiteration of earlier reports, the British Broadcasting Corporation last year brought out a Green Paper to review its working and make changes.

Now, a report by the British media regulator Ofcom says public service broadcasters (PSBs) still account for more than half of broadcast TV viewing and around three in four viewers are satisfied with their services.

Investment by PSBs in programmes on their public service channels appears to be stabilising after several years of decline and spending has increased on new factual programmes and original drama. However, spending on children’s shows, the arts and classical music and religion has continued to decline.

Ofcom has said in is latest PSB Annual Research Report published this week that has shown that 16 to 24 year old people have particularly embraced on-demand services, and spend around a third of their daily viewing time watching free (e.g. BBC iPlayer, All 4, ITV player) or paid (e.g. Netflix, Amazon Video) on-demand services. Live TV accounts for 36% of daily viewing in this age group, a 14 percentage-point decrease in two years.

The study was based on BBC, ITV, STV in Scotland, UTV in Northern Ireland, Channel 4, S4C in Wales and Channel 5.

The main five public service channels provided by PSBs1 reached 84% of the TV population in a typical week, and accounted for 51% of all broadcast TV viewing in 2015, according to a report on the OfCom website.

This share is similar to the last three years but represents a decline from ten years ago when PSBs held a 70% share of viewing. When PSBs’ ‘portfolio’ channels – such as BBC Four, ITV2 or E4 – are included, their share of viewing was 71% in 2015.

Overall, TV viewing has fallen in recent years with viewers now watching 26 minutes less a day than in 2010. While the average person watched three hours and 36 minutes of TV per day in 2015, there is a widening generational gap in the viewing habits of the youngest and oldest audiences.
People under 25 are watching around a quarter less broadcast TV than in 2010, while the average viewing of those aged 55 to 64 has only declined by 5%.

The PSBs spent £2.50 billion on new UK programmes3 on their public service channels in 2015, a 2% increase since 2013; the most recent comparable year due to the absence of major sporting events4 .

PSBs’ spending on new UK factual programmes rose by 8% to £522m, more than any other genre and the highest investment in this type of programme since 2008. They also spent more in 2015 on original UK drama (up 12% to £311m), and showed more of it – 416 hours, up from 371 hours.

However, the hours of original UK children’s programmes decreased in 2015 – from 672 in 2014 to 580. This was the first time fewer than 600 hours of original UK children’s programmes have been broadcast since 1998. Spending on this genre was £77m, 13% down on 2014.

The PSBs also spent less on new UK arts and classical music programmes in 2015 – £36m, down 14% from 2014 – as well as religion and ethics (down by 6% to £12m). Original UK comedy also decreased (by 4%, to £99m).

Audiences continue to value programmes from the public service broadcasters: 73% of viewers said they were satisfied with PSB public service broadcasting overall, while 7% were dissatisfied.
Nearly nine in ten (86%) viewers of public service channels cited trustworthy news programmes, and showing programmes of a high quality, as an important purpose of public service broadcasting.

This was the most-cited purpose, followed by programmes that help viewers understand what is happening in the world (83%).

The BBC, along with ITV, STV and UTV (the ‘Channel 3′ licence holders), spent a combined £270m on programmes specifically directed towards viewers in the particular nations and regions of the UK in 2015.

At least seven in ten regular viewers are satisfied with BBC One and Channel 3’s delivery of nations and regions news.

S4C spent £63m on original Welsh-language programmes in the 2015/16 financial year, a slight increase from the previous year.

Jane Rumble, Director of Market Intelligence at Ofcom said: “Our research shows that UK audiences still watch and value public service broadcasting. But there are significant differences in the viewing habits of older and younger audiences.

“As media and technology continue to evolve, it is important that broadcasters respond to these changes, so they can keep meeting the needs and expectations of viewers.”

OfCom clarified that its data was from Ofcom Digital Day research 2016 as there is currently no single industry-wide measurement for understanding the share of viewing to all forms of viewing across all screens.

It also found that Public service channels typically spend more in even-numbered years (2014), which contain major sporting events such as World Cups, European Championships, Olympic or Commonwealth Games. Spending here covers new UK network programming only, and excludes nations and regions content.

July 13, 2016
Tackling pirate radio could save Londoners ?1 million: Ofcom

MUMBAI: A new approach to tackling pirate radio has eradicated the problem in one London borough, and could save up to ?1 million for Londoners by being rolled out across the capital.

Pirate radio harms local communities and the critical communications used by the emergency services. Ofcom, which manages radio frequencies, is hosting a summit on 3 November to explore the new approach to tackling the problem.

Pirate stations typically use high-rise buildings for their broadcasts, with illegal transmitters installed on rooftops or hidden in lift shafts. This damages residential properties owned by local authorities, disrupting residents’ lives and putting people at risk from falling equipment.

Ofcom has been working in north London, one of the UK’s most affected areas, with housing body Homes for Haringey. In 2014, 19 pirate radio stations were illegally broadcasting in Haringey. By quickly removing their transmitters and regularly patrolling and securing rooftops, pirate radio has now been eradicated in the borough.

As a result, Homes for Haringey has saved ?90,000 in enforcement and maintenance costs over the past year.

On 3 November, Ofcom will be meeting with local authorities from across London to share the success of the Homes for Haringey partnership. If this collaborative and proactive approach is rolled out across the capital, local authorities stand to save an estimated total of ?1 million per year.

Ofcom’s Spectrum Enforcement team head Clive Corrie said, “Illegal broadcasting harms local communities and risks lives by interfering with vital communications used by the emergency services and air traffic control. By working in partnership with local authorities, Ofcom is tackling this problem. We also strongly urge those broadcasting illegally to get involved with internet or community radio, a legitimate route on to the airwaves.”

Homes for Haringey executive director of operations Astrid Kjellberg-Obst added, “Pirate radio stations damage people’s homes and can be extremely distressing to our residents. We’ve seen huge success in tackling the problem with the measures that we’ve introduced, removing all pirate radio stations from Haringey and saving the borough tens of thousands of pounds in the process. We will continue to work with Ofcom to keep Haringey pirate-free.”

Harmful interference to emergency services

Pirate radio causes interference to critical radio services, including those used by the emergency services and air traffic control.

In 2014, the UK’s air traffic control service NATS has reported 55 cases of communications interference from pirate radio.

Ofcom also receives reports each week from the emergency services and other, legitimate radio services of illegal interference. Ofcom has powers to seize illegal broadcasting equipment and prosecute those involved.

November 2, 2015
Ofcom to hold spectrum auction in 2016 with ?70 million reserve price

MUMBAI: UK communications regulator Ofcom will be releasing valuable new airwaves by holding a high-capcity spectrum auction that could be used to meet the growing demand for mobile broadband services. It has set reserve prices totalling ?70 million for the spectrum.

The auction is planned to take place in early 2016 for the spectrum, which has been made available by the Ministry of Defence as part of a wider Government initiative to free up public sector spectrum for civil uses.

A total of 190 MHz of high-capacity spectrum is being made available in two bands – 2.3 GHz and 3.4 GHz – which are particularly suited for high-speed mobile broadband services, because they can carry large amounts of data. This is equivalent to around three-quarters of the spectrum released by Ofcom through the 4G auction in 2013.

Ofcom spectrum group director Philip Marnick said, “Spectrum is the essential resource, which fuels the UK’s wireless economy. This auction is an important step in ensuring that the UK has the wireless capability to deliver and support new technology. We’re responding to rapid change and innovation in the communications sector, which is placing greater demands on spectrum. Part of our plan to meet this demand is by making new spectrum available and allowing it to be used in a number of different ways.”

More spectrum for mobile broadband

There will not be a cap on the amounts bidders can buy. Ofcom believes that any cap could prevent a bidder from buying large blocks of adjacent spectrum. Large blocks have the potential to support very fast download speeds, meaning even faster mobile broadband for consumers, which helps pave the way for 5G.

The auction is designed to be fair and transparent, enabling the spectrum to be awarded to those who can put it to the most efficient use in the best interests of consumers. Ofcom proposes to auction the spectrum in lots of 10 MHz for the 2.3 GHz band and 5 MHz for the 3.4 GHz band.

Many existing mobile handsets from major manufacturers, including the Apple iPhone 6, HTC Desire and Samsung Galaxy, are already compatible with the 2.3 GHz spectrum. The band is so far being used for high-speed 4G mobile broadband networks in ten countries outside Europe, including China, India and Australia.

The 3.4 GHz band is currently being used for 4G wireless broadband in six countries including the UK, Canada and Spain.

Planning for the future

Demand for mobile data services is expected to rise considerably in the coming years. To address this, more spectrum is needed – together with new technology to use spectrum more efficiently, and networks of small wireless ‘cells’ to provide greater capacity over local areas.

Ofcom supports industry and research groups to enable these developments and ensure the UK’s wireless infrastructure continues to play a central role in the growing digital economy.

October 28, 2015
Ofcom to take over video-on-demand regulation from 2016

MUMBAI: The regulation of video-on-demand (VOD) programme services is being brought fully within Ofcom to sit alongside its regulation of broadcast content.

The move follows an Ofcom review to ensure regulation of broadcast and on-demand content remains as effective and efficient as possible for the benefit of consumers, audiences and industry.

The review included the current co-regulatory arrangements for VOD services. These can include catch-up TV and on-demand services on the TV and the internet. Ofcom designated the Authority for Television On Demand (ATVOD) in 2010 as a co-regulator to take the lead in regulating editorial content for video-on-demand services.

Following the review, Ofcom decided that acting as sole regulator for VOD programmes is a more effective model for the future than having two separate bodies carrying out this work. This will create operational efficiencies and allow editorial content on VOD to sit alongside Ofcom’s existing regulation of broadcasting.

VOD services have become increasingly popular among viewers. The proportion of adults aged 15 and over that watch VOD services has increased from 27 per cent in 2010 to 57 per cent in 2014, according to Ofcom research.

ATVOD has played an important, effective role in regulating on-demand TV over the past five years. Like Ofcom, it is committed to protecting audiences from harmful content. ATVOD and Ofcom are therefore working closely together to ensure a smooth transfer of responsibilities so that audiences, especially children, remain protected at all times.

As co-regulator for on-demand services, Ofcom already has concurrent responsibility to act in addition to, or in place of, ATVOD. From 1 January 2016, Ofcom will take sole responsibility for regulating VOD programme services. The Advertising Standards Authority will continue to act as a co-regulator for advertising content on VOD services.

October 15, 2015
Sky is UK’s best-performing pay TV provider in Q2 2015: Ofcom

MUMBAI: Of all the pay TV providers in the UK, Sky is the only company to generate fewer complaints than the industry average (0.01 per 1,000 customers) and was named the best-performing pay TV provider according to independent regulator and competition authority for the UK communications industries – Ofcom.

TalkTalk became the most complained about pay TV provider. Their complaints volume increased to 0.14 per 1,000 customers, compared to 0.12 in Q1 2015. The main reasons for TalkTalk complaints were fault, service and provision issues (36 per cent), billing, pricing and charges (28 per cent) and issues relating to complaints handling (17 per cent).

In Q2 2015, BT saw a reduction in complaint volumes, generating 0.11 complaints per 1,000 customers, compared to 0.15 in Q1 2015. Virgin Media’s complaints volume increased to 0.05 per 1,000 customers, compared to 0.04 in in Q1 2015.

In landline telephone services, EE continued to generate the highest volume of landline complaints as a proportion of its customer base (0.34 per 1,000 customers). Others like Post Office HomePhone, Plusnet and TalkTalk also generated landline complaint volumes above the industry average, whereas BT was broadly in line with the industry average. Sky and Virgin Media were the only providers with complaints volumes below the industry average.

For broadband services too, EE generated the most complaints. BT and Plusnet both saw reductions in their complaint volumes since Q1 2015, Virgin Media complaints were below the industry average, whereas Sky had the lowest complaints volume for broadband.

In mobile pay-monthly services, Vodafone continued to be the most complained about mobile provider in Q2 2015. The main drivers of Vodafone complaints were problems with billing, pricing and charges (34 per cent), complaints handling (27 per cent) and concerns around faults, service and provision (17 per cent).

Ofcom published data on the volume of consumer complaints made against the major providers of telecoms and pay TV services. The latest report covers the three-month period from April to June 2015 (Q2), and includes complaints made about 13 providers of fixed line telephone, fixed line broadband, pay monthly mobile and pay TV services.

The total volume of telecoms and pay TV complaints made to Ofcom continued to decrease in Q2 2015, even as the number of consumers taking up these services increased.

Broadband, mobile pay-as-you-go and mobile pay monthly services saw the most notable reductions in total volume of complaints.

Total complaints volumes for fixed line telephone and pay TV services remained at similar levels to Q1 2015. Broadband services continued to attract the most complaints, albeit at lower levels than previously.

Ofcom Content and Consumer Group director Claudio Pollack said, “Our complaints data allow consumers to make meaningful comparisons that can be useful when looking for a new provider. While it’s encouraging to see a continued decrease in the total number of complaints, there is still room for improvement. We expect providers to make customer service and complaints handling top priorities.”

September 24, 2015
Ofcom completes first phase of digital communications review

MUMBAI: Ofcom has outlined the challenges facing the UK in ensuring that consumers and businesses receive high-quality digital communications services over the next decade and beyond.

Ofcom’s Strategic Review of Digital Communications, announced in March 2015, is examining competition, investment, innovation and the availability of all digital communications services. These include broadband, mobile, landline and bundled services.

Communications are essential to the functioning of the economy, and to the way people work and live. Improving these services for consumers and businesses is Ofcom’s first priority, and the review forms a fundamental part of that work.

Ofcom is seeking views on its review, which is focusing on four main areas detailed in a discussion document published:

• investment and innovation in the market, which can help make services widely available;

• competition, to deliver quality services and affordable prices;

• empowering consumers and businesses, particularly making sure they have the information and means to choose and switch between providers; and

• keeping regulation targeted at areas of concern, and deregulating where possible to allow markets to function well.

Ofcom CEO Sharon White said, “This review is about ensuring people get the best possible communications services, wherever they live and work.

“Our priorities are clear. We want to promote competition, investment and innovation, so that everyone benefits from even better coverage, choice, price and quality of service in years to come.”

Investment and innovation

UK consumers and businesses have benefited from significant investment in communications services in recent years. 4G mobile broadband is now available to 42 per cent of premises from all four operators, and 90 per cent from at least one. Superfast broadband is now available to 83 per cent of premises, with a range of providers competing on service and price.

Ofcom wants to see the widest possible availability of high-speed broadband at home, at work and on the move. Ofcom estimates that a broadband speed of 10Mbit/s is necessary to benefit from today’s popular online services, such as on-demand video. However, eight per cent of UK households cannot currently access those speeds.

Availability is a concern in more rural areas, particularly in the nations and regions, but also in some urban places where roll-out costs or low incomes present particular barriers. Ofcom’s review will seek possible solutions to these problems.

It is examining how regulation can enable the commercial development of future ultrafast broadband, making it as widely available as possible.

Ofcom is also considering what further options might be available to improve mobile services. Mobile 4G broadband will reach 98 per cent of UK premises, due to Ofcom rules and industry investment. But consumers’ and businesses’ growing expectations for reliable, universal, always-on voice and data services will need to be matched by network investment.

Making sure competition delivers

A major focus of the current review is how well competition is delivering benefits to consumers and businesses. Ofcom’s last strategic review began in December 2003, concluding in September 2005. It led to the creation of Openreach, through which BT is required to provide access to competing providers on equal terms, for them to offer telecoms services to consumers.

This approach has delivered real choice, quality and value for phone and broadband customers over many years. However, some challenges remain. For example, the incentive for BT to discriminate against competing providers can be limited by regulation, but not removed entirely.

BT’s network has evolved in recent years, with fibre lines running closer to premises. This may require different models of competition than those that worked best for the traditional copper telecoms network.

In addition, Ofcom has been concerned that Openreach’s performance on behalf of providers has too often been poor, requiring the introduction of rules for faster line installations and fault repairs.

The review will address these issues, and Ofcom is today seeking views and evidence on future regulatory approaches, including:

• Retaining the current model, where Openreach operates as ‘functionally separate’ from BT, and using regular market reviews to address any concerns around competition;

• Strengthening the current model by applying new rules to BT – such as controls on its wholesale charges with stronger incentives to improve quality of service, or tougher penalties if BT falls short;

• Separating Openreach from BT could deliver competition or wider benefits for end users. It would remove BT’s underlying incentive to discriminate against competitors. Separation could also offer ways to simplify existing regulation. However, the process would be challenging and it may not address some concerns relating to Openreach – such as service quality, or the timing and level of investment decisions;

• Deregulating and promoting competition between networks. Virgin Media and a variety of smaller operators own networks, which allow them to provide phone and broadband services without using BT’s network at all. This kind of ‘end to end’ competition, which sometimes involves running fibre lines directly to premises, can help incentivise Open reach to improve its infrastructure. However, it could also lead to duplication of networks and weak competition.

It will also examine converging media services – offered over different platforms, or as a ‘bundle’ by the same operator. For example, telecoms services are increasingly sold to consumers in the form of bundles, sometimes with broadcasting content; this can offer consumer benefits, but may also present risks to competition.

Empowering consumers and businesses

People tailor communications services to their own needs, choosing from a range of providers at a price that suits them. For this to work properly, they need to understand the range of options available to them, and be able to switch between them effectively.

Ofcom’s review is considering whether consumers have all the information they need to make the choice that is right for them, both when researching the market and at the point of sale. It is also looking at how switching between providers might be made easier.

On 20 June, Ofcom introduced new rules that mean people can switch provider over BT’s network by only dealing with their new supplier. Ofcom is currently considering whether similar processes may be appropriate for mobile and services bundled with pay TV, as consumers increasingly buy services this way.

Beyond this, Ofcom is keen to explore new ways in which consumers can engage with the market, in order to benefit from competition. Examples might include making services easier to compare, and increasing access to independent advice or feedback generated by users.

Targeted regulation and deregulation

The rules that govern the communications sector must evolve to keep pace with developments in technology, consumer needs and expectations. Ofcom’s review will identify where existing regulation may be simplified, removed or replaced.

For example, the rise of ‘over the top’ (OTT) internet communications services, such as instant messaging, may create a case for less regulation on mobile operators, or for extending existing rules to internet-based services.

Next steps

Today’s discussion document marks the conclusion of the first phase of Ofcom’s Strategic Review of Digital Communications. Since announcing the review, Ofcom has been engaging with a wide range of stakeholders – including industry, consumer groups, the UK Government and devolved administrations – through meetings and workshops.

Ofcom will now take forward the review’s second phase, and is seeking evidence and responses to the discussion document by 8 October, 2015. This will inform a statement at the turn of the year on priorities and action, which will shape Ofcom’s regulatory approach for the next decade.

July 17, 2015
Ofcom to auction more 4G spectrum; outlines next steps

MUMBAI: Ofcom plans to release valuable new airwaves that will improve 4G coverage and be used to meet the growing demand for mobile broadband services in the UK.

Decisions announced today will help Ofcom set the groundwork for the spectrum award, including how these frequencies will be licenced and the mechanics of the auction.

Potential bidders are also being asked for their views on how to best proceed with the auction.

While no specific uses for this spectrum have been prescribed, it is likely to interest the mobile industry, which relies on spectrum to offer internet services to consumers’ smartphones and tablets.

The 2.3 GHz and 3.4 GHz spectrum bands are being released for civil use and could be suitable for providing very high data capacity.

Since Ofcom’s last consultation on the auction, BT has announced plans to buy EE, while Hutchison Whampoa – the owner of Three – has reached agreement to acquire O2 from its current owner Telefonica. If the latter merger goes ahead it would reduce the UK wholesale mobile market from four major operators to three.

Ofcom’s objective is to award the frequencies in a way that will allow consumers to enjoy greater access to high-capacity mobile internet without undue delay.

The consultation invites potential bidders to comment on an option where Ofcom would award most of the newly available spectrum later this year, or early in 2016. The remaining frequencies would be held back for award at a later date.

This approach may be preferable to the alternatives of either awarding all of the spectrum, or delaying the award – although both those options remain open. Ofcom will determine later in the year the best approach to making the spectrum available, following stakeholder responses and the condition of the market.

Under decisions announced today, Ofcom would issue licences for the 2.3 and 3.4 GHz bands for an indefinite period, but with an initial term of 20 years after which licence fees may be payable.

There will be no coverage obligations placed on this spectrum. This is because the frequencies being auctioned are better suited for high capacity and faster speeds, rather than achieving wide geographical coverage.

The closing date for this consultation is 26 June.

May 27, 2015
44% adults used Internet TV via STBS in the last 12 months: Ofcom

MUMBAI: Close to 44 per cent (over four in ten) adults in the UK had used an internet connected TV – most via set-top boxes such as TiVo or Sky – in the last 12 months. Some 34 per cent had watched catch-up TV services via connected TVs or set-top boxes.

Moreover, Ofcom’s research into UK audience attitudes to content on TV and radio showed that households surveyed owned two TV sets on average.

This research covered what people find offensive on TV and radio, their awareness of and attitudes towards regulation and their understanding of advertising and product placement.

The report also includes research on consumers’ access to and views on internet ‘connected devices’, which are used to watch services like the BBC iPlayer, 4oD, ITV Player, YouTube and Netflix.

The research further found that nearly half (49 per cent) of adult TV viewers felt the quality of TV programmes had stayed the same in the past year, three in ten (30 per cent) felt they had got worse, and around 16 per cent said TV had improved.

Among those who thought programmes had got worse, the top reasons were repeats (57 per cent), a lack of variety (43 per cent), a general lack of quality (32 per cent) and too many reality shows (30 per cent). Among those who said programmes had improved, the top reasons were a wider range of shows (50 per cent), improved quality (48 per cent), more entertaining shows (37 per cent) and better dramas (33 per cent).

Offensive material on TV

Close to 79 per cent people had not been offended by anything on TV in the past year. However, one in five had found something offensive, rising to a third (33 per cent) for people aged 65 and over. Those aged between 16 and 24 were least likely to be offended (nine per cent compared with 33 per cent of over 65s).

Of those who had been offended, bad language (44 per cent), violence (41 per cent) and sexual content (41 per cent) were the top concerns. Adults below 45 years old were more likely to say they had been offended by some type of discrimination (29 per cent compared with 19 per cent of over-45s).

On average, about half of all people thought current levels of sex (57 per cent), violence (47 per cent) and swearing (52 per cent) on TV were acceptable. Four in ten felt there was too much violence (43 per cent) and swearing (40 per cent), while nearly three in ten (28 per cent) said there was too much sex.

Attitudes differed by age: younger adults were more likely to feel there is an acceptable amount of violence, swearing and sex, while older adults tended to feel there is too much.

High awareness of regulation

The vast majority of adult TV viewers (90 per cent) knew about the 9 pm watershed, with over half (57 per cent) saying about 9 pm was the right time while around a quarter (27 per cent) said the watershed should be later.

The report found a clear understanding about what broadcast content is regulated, with over eight in ten (82 per cent) adults aware that TV is regulated. Most adults felt the current levels of TV and radio regulation were about right (61 per cent), or did not have an opinion (18 per cent for TV and 33 per cent for radio).

The research showed that 14 per cent of adult TV viewers could identify the ‘P’ symbol, which is designed to let viewers know the channel, or the programme-maker, has been paid to include products in that programme.

Protecting viewers

Ofcom has a duty to protect viewers from harmful and offensive material on TV and radio, as well as ‘TV like’ content on internet connected devices. When broadcasters break the rules, Ofcom takes robust enforcement action and has issued guidance to broadcasters on how they should enforce the watershed.

The majority of viewing today is live on the TV and many of the programmes delivered over the internet to connected devices in the UK were first aired on TV; because of this, they are subject to Ofcom’s rules.

However, people now watch programmes in a variety of ways, and on different devices, which poses challenges for parents and regulators. Hence, Ofcom is working with government, other regulators and industry to bring about a common framework for media standards.

May 20, 2015
Ofcom to make cost of phoning TV and radio shows clearer

MUMBAI: Ofcom has made changes that will make the cost of entering phone-ins, competitions and votes on TV and radio programmes simpler to understand.

In the UK, broadcasters often invite people to interact with shows in this way using phone numbers starting 084, 087 and 09.

From 1 July, the cost of calling those numbers will be made up of two parts: an ‘access charge’ going to the caller’s phone company, and a ‘service charge’ set by the broadcaster.

All TV and radio programmes using the numbers – from talent shows to quizzes, phone-ins and entertainment programmes offering a prize – will include the service charge for calling.

Clear prices are important because the cost of interacting with programmes varies considerably. Some calls may cost a few pence, but others may cost more than ?2 per minute.

Under the current system, viewers and listeners are typically given information such as:

“Calls cost Xp from a BT landline. Other landlines may vary and calls from mobiles may cost considerably more.”

That will change from 1 July, when broadcasters will explain their service charge using a form of words such as: Calls cost Xp plus your phone company’s access charge.

Phone companies – both landline and mobile – will have to give customers a single access charge for all calls to 084, 087 and 09 numbers, stating it clearly on bills and when a customer takes out a new phone contract. Viewers and listeners can then work out the exact cost of interacting with a show.

Ofcom has also published changes to the Broadcasting Code, the rules governing standards in TV and radio programmes in the UK, to reflect the new charging structure and explain how broadcasters should communicate the cost of calls to viewers and listeners.

As well as TV and radio shows, 08 and 09 numbers are used by millions of people every week to contact businesses and organisations or pay for premium services.

From 1 July, the cost of calling these numbers – as well as 118 directory enquiries – will be made up of an access and service charge, so callers can work out the exact cost before they dial.

On the same day, calls to Freephone (0800 and 0808) numbers will be become free from all consumer phones – including mobiles.

Together, the changes on 1 July will affect 175 million telephone numbers, making this the biggest overhaul of phone calls in more than a decade. The changes are being communicated by Ofcom and phone companies, working together under the banner UK Calling.

Effective immediately, adverts explaining the new charging system will be broadcast across major commercial radio stations, followed by newspaper adverts.

Major landline and mobile phone providers are now sending leaflets about the changes to millions of customers who take a paper phone bill.

Ofcom CEO Sharon White said, “In July we’ll see the biggest changes to phone calls in over a decade, affecting 175 million phone numbers. The changes are important for people who enjoy interacting with their favourite shows, but also for everyone calling companies and organisations on 08, 09 and 118 numbers. People can look out for more information from their phone company, or visit the UK Calling website.”

April 28, 2015
Ofcom to review digital communications to ensure consumers getting best deals

NEW DELHI: British communications regulator Ofcom will be conducting an overarching review of the nation’s digital communications markets to ensure that communications providers and services continue to meet the needs of consumers and businesses.

Ofcom’s Strategic Review of Digital Communications will examine competition, investment, innovation and the availability of products in the broadband, mobile and landline markets. By assessing these areas as a whole, Ofcom will consider wider questions complementary to those addressed by its regular, three-yearly reviews of individual telecoms markets.

The review is in keeping with a commitment made in May last year when Ofcom had said 2015 would provide a timely opportunity to take stock of the effectiveness of the rules arising from the last major review, 10 years after they were introduced.

Ofcom anticipates that the review will focus on ensuring the right incentives for private-sector investment, which can help to deliver availability and quality of service; maintaining strong competition and tackling obstacles or bottlenecks that might be holding the sector back; and identifying whether there is scope for deregulation in some areas.

This review will be Ofcom’s second major assessment of the wider telecommunications sector. The first began in December 2003 and concluded in September 2005. It led to new rules, which allowed competing providers to access BT’s network, on equal terms, in order to offer phone and broadband services to consumers.

The Strategic Review of Digital Communications will consider the implications of current and future developments for regulation, including: plans from major operators for significant network investment; telecoms services increasingly operating over the internet; and various potential mergers, acquisitions, joint ventures and partnerships in the sector.

Since its last major review, Ofcom has adapted its regulatory approach to reflect the evolving telecom market.

In 2006, it removed retail price controls on competitive telecoms services. In 2010, it brought in new rules to promote competition in superfast broadband. In 2011, it placed a cap on wholesale mobile rates, leading to cheaper calls to mobile phones.

In 2013, Ofcom awarded spectrum for 4G mobile services, with a rule to ensure at least 98 per cent of premises would benefit from the new technology.

Over the last 10 years, average broadband speeds have risen more than twenty-fold since 2005, prices have fallen by around 50 per cent; and the cost of a monthly mobile bundle has halved from around ?32 to ?16.

Ofcom’s recent European Broadband Scorecard shows that the UK also leads the EU’s five biggest economies on most measures of coverage, take-up, usage and choice for different kinds of broadband, and performs well on price.

Ofcom wants to continue to support the development of the market by providing a clear and strategic regulatory framework. This will be designed both to promote competition and to support continued investment and innovation that can benefit consumers and businesses in the form of coverage, choice, price and quality of service.

Ofcom acting chief executive Steve Unger said, “We have seen huge changes in the phone and broadband markets since our last major review a decade ago. Only five years ago, hardly any of us had used a tablet computer, high-definition streaming or 4G mobile broadband. The boundaries between landline, mobile and broadband services continue to blur, and people are enjoying faster services on a growing range of devices. Our new review will mean Ofcom’s rules continue to meet the needs of consumers and businesses by supporting competition and investment for years to come.”

Sky Group CEO Jeremy Darroch said the broadcaster welcomed the review, describing the telecommunications sector as “vital” to the UK’s future but suggested there were serious questions about whether the existing structure could deliver the infrastructure, innovation and choice that consumers and businesses need.

“Structural separation of Openreach, the UK’s only nationwide broadband infrastructure, is at the heart of creating a sustainable industry; one that provides the capacity and incentive to invest whilst also harnessing the power of multiple competing retailers to drive higher take up and lower prices for customers,” he contended.

TechUK deputy CEO Antony Walker added, “The UK has a world class communications network, which is vital to supporting the growth of our digital economy. To maintain our leadership position, a supportive policy and regulatory environment is needed to encourage ongoing investment and innovation. That’s why we’re particularly pleased to see that Ofcom’s review will include ensuring the right incentives for investment.”

March 13, 2015