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Ofcom today published its ‘Communications Market – Interim Report February 2006’, which includes the latest data available for the second and third quarters of 2005. This report is one of a series of regular updates to Ofcom’s annual Communications market reports, the latest of which was published in August 2005.

This issue mainly covers data from Q2 and Q3 2005, with market development updates covering the period from June 2005 to February 2006. It aims to give a comprehensive picture of the radio, telecommunications and television sectors, with a round-up of recent developments and the latest available data on:

• Industry size, structure and financing;
• Availability, penetration and use of products and services; and
• Consumer attitudes and behaviour.

In addition, in this report Ofcom takes a closer look at some emerging themes in each sector:

• Radio sector finance;
• Mobile Virtual Network operators (MVNOs); and
• The cable sector.

Amongst key facts are included:

• By the end of September 2005, Ofcom’s data showed that 57% of the country’s 15.5 million internet connections were over broadband, and latest figures show that by December 2005 there were almost 9.8 million broadband connections across the UK
• The number of local loop unbundled (LLU) lines grew from fewer than 50,000 in Q1 2005 to over 200,000 by the end of the year, and according to the Office of the Telecommunications Adjudicator this total had increased to 250,000 by February 2006

Purnell backs industry on revision of the TV without Frontiers Directive

Speaking at a Foreign Policy Centre event last week, James Purnell MP, Minister for Creative Industries, laid out the UK Government’s concerns about the proposed changes to the TV without Frontiers Directive, echoing points raised by the BSG throughout last year.

This was one of the first times that the Government has spoken publicly about the Directive since the European Commission published its final draft in December and the speech confirmed that this is a major issue for the UK Government as the Directive moves into the European Parliament.

Mr Purnell reminded the audience that this is not just a ‘techie’ debate, but one that will fundamentally affect the ‘digital technology’ sector that forms the backbone of Europe’s knowledge economy, and in particular the UK, which is ‘on its way to becoming Europe’s digital laboratory’.

Despite agreeing with a number of aspects of the Directive, such as the retention of the Country of Origin Principle, Mr Purnell explained that Government had ‘serious concerns’ about extending legislation designed for the broadcasting world to cover a much wider range of audio visual media services delivered over new and emerging platforms. He questioned the rationale for the extension of scope – given that e-Commerce Directive already covers many of the new services – and explained that in a rapidly evolving sector the Directive’s market definitions are unworkable, in particular the distinction between linear and non-linear services, which is effectively ‘a line in the sand’ that will be ‘washed away by the tide of convergence’. Burdening a nascent market with unenforceable and unnecessary regulation would have far reaching consequences, he said, raising barriers to entry in new media markets, preventing new services from developing and pushing investment outside of the EU.

The Government’s views mirror those that have been voiced by Intellect and the BSG over the last year. Antony Walker, CEO of BSG, was also on the panel of speakers at the event and took the opportunity to highlight the disparity between the EU’s better regulation policy and the draft Directive. He also said that in many cases self-regulation is a more effective instrument for delivering the public policy objectives of the Directive than centralised legislation and that this is an area where the BSG is actively engaging with industry bodies.

James Purnell’s speech in full

Experts are concerned that the broadband ‘Digital Divide’ – the gap between the haves and have-nots – is deeper than was thought and may be getting even deeper.

High-speed broadband use is still subject to huge regional variations, according to a study published last week. The 10 most connected areas are all in London and the South-East, creating concerns about a continuing digital divide, says telecoms researcher Point Topic, which carried out the survey.

Regional differences in broadband take-up

A series of free seminars throughout the UK.

To assist potential Digital Challenge bidders, Intellect, with the co-operation of the Office of the Deputy Prime Minister (ODPM) and a number of ICT private sector companies, is running free seminars throughout the UK.

The Digital Challenge is one of the eight actions contained in the UK Government’s DIGITAL STRATEGY, launched April 2005. The Challenge is a Government-run competition that will act as a catalyst to develop e-enabled local public services and encourage greater exploitation of ICT to better meet the needs of local communities.

Each full day seminar will explain the Digital Challenge evaluation criteria and other areas important to the development of proposals. The successful bid will need to provide evidence of a highly focused and effective partnership of public, private, community and voluntary sectors. The afternoon session will provide an opportunity for one-to-one meetings with the private sector partners who are sponsoring these events.

The dates are as follows – please follow the links for full details of each event:

• Cambridge, De Vere University Arms – Monday 13 February
• London, Millennium Conference Centre, SW7 4LH – Tuesday 14 February
• Bristol, Marriott City Centre – Friday 17 February
• Guildford, The Carlton – Tuesday 21 February
• Newcastle, De Vere Slaley Hall, Friday 24 February
• Leeds, Village Hotel & Leisure Club – Monday 27 February
• Nottingham, Village Hotel & Leisure Club – Tuesday 28 February
• Birmingham, The De Vere Belfry, B76 9PR – Friday 03 March

This free, one day seminar will report back the findings of a DTI Global Watch Mission, which visited the USA in October 2005. The mission delegation met with public and private sector bodies involved in the deployment of WiMAX technologies with the aim of examining developments made by key vendors, investigating the technical developments affecting choice, and considering the sources of investment behind WiMAX deployments.

A full report of the mission findings will be made available to all attendees.

The Economic, Environmental and Social Impacts of Cornwall’s actnow Project.

In April 2005 actnow, in collaboration with project partner BT, commissioned SustainIT, and the University of Bradford to conduct a survey of the impacts of broadband on businesses in Cornwall.

The survey received 433 responses from actnow’s business customers. The results show that broadband is benefiting enterprises, individuals, the Cornish economy, society and the natural environment by, for example:

• Extending market reach and impact
• Making organisational working practices more efficient
• Enabling staff to work flexibly
• Substituting travel and meetings with electronic communication – thus reducing traffic congestion and fuel use.

Every community in Scotland now has access to affordable broadband services.

Now 378 remote and rural telephone exchange areas have access to broadband, thanks to an ambitious Executive and BT project. This is the largest project of its kind in the UK and is part of the Executive’s £24 million broadband initiative.

It means the government has met its commitment to roll out broadband to every community of the country by the end of 2005.

Broadband in every community of Scotland

Wednesday 7 December 2005 10:29
Office of The Deputy Prime Minister (National)

DIGITAL CHALLENGE £9 MILLION ANNOUNCED TO DRIVE ICT INNOVATION

The “Digital Challenge” – providing the opportunity to create a world class exemplar of a “wired up community” – was launched today by Minister for Local E-Government Jim Fitzpatrick. The challenge is to use technology to transform the face of services, including local and central government services, to better meet the needs of local communities – including the most disadvantaged.

Government and Industry have provided more than £7 million, to be given to the Digital Challenge winner, as well as ten regional finalists who will each receive £200,000.

The successful bid will need to provide evidence of a highly focused and effective partnership of public, private, community and voluntary sectors. It should also make a real and significant change for the local community as quickly as possible.

Jim Fitzpatrick, Minister responsible for Local E-government at the Office of the Deputy Prime Minister, said:

“I am very excited by the Digital Challenge – it has the potential to bring real change to peoples lives through the innovative use of ICT. It will also act as beacon for service providers, government, and the rest of the ICT community on how they can make a real difference to ordinary people”s lives.

“I look forward with keen interest to see what kinds of projects will be developed as part of this challenge. The Digital Challenge will drive forward improvements in local services and in local e-government which are at the core of ODPM”s work.”

Digital Challenge has the potential to make a real difference to people”s lives, providing streamlined access to local government services, through a variety of channels. We look to the winning bid to meet three fundamental requirements:

Empowerment – The winning bid will be able to show how they will use ICT to give new choice, voice and empowerment to citizens; it should be about enabling citizens to participate in their communities, as well as gaining access to services.

Service Transformation – This must demonstrate radical innovation in changing how we offer services to people – using ICT to transform the whole way a service is provided; used and experienced.

Efficiency – Local Authorities must show that after year one their initiatives are sustainable and cost effective and be prepared to showcase these to other local authorities in years two and three, acting as the UK exemplar.

It has gained support from across government including ODPM, Department for Heath, The Department for Educations and Skills and the Department for Trade and Industry.

DTI position statement on the Broadband Aggregation Programme, 1st December 2004

This is an update on the report by Oftel on Broadband Quality Of Service, published for the BSG on 30 July 2003

Ofcom report – Broadband Quality of Service, November 2004

Europeans are signing up for broadband faster than ever research reveals.

The report by analysts Datamonitor said high-speed net services were popular because intense competition was driving awareness to new highs and prices to new lows.

Datamonitor said it expected the dash for broadband to peter out in two years time when European user numbers topped out at 60% of households.

It predicted that up to 8 million UK households will have broadband by 2008.

Home broadband sign-ups ‘soaring’

London, 23 November 2005

BSG Chairman to take Ofcom Role

Philip Graf CBE has been appointed as the new Deputy Chairman of Ofcom, taking effect from January 1st 2006. He will therefore step down from his role as Chairman of the Broadband Stakeholder Group at the end of the year.

Commenting on his new appointment, Philip Graf CBE said “I have enjoyed chairing the BSG over the last year. I am sure the insights I have gained will prove invaluable in my new role.” He added: “The sector is changing rapidly; and it is more important than ever for industry to engage with policy makers and regulators. The BSG provides a unique forum for that dialogue and will have my continued support in my new role at Ofcom.”

Antony Walker, CEO of the BSG said, “I’d like to thank Philip for the fantastic contribution he has made as Chairman of the BSG over the last year. With his background in the media, Philip brought unrivalled expertise to the BSG and helped shift the debate towards the exploitation of broadband by the public and private sectors and the development of new content, services and applications. It has been a pleasure working with him and I’d like to wish him every success in his new role.???

The BSG will to appoint a new Chairman early in the New Year.

November: Telecomms

One of a series of five thought-provoking seminars hosted by Intellect and the WDA (Welsh Development Agency):

Thursday 17 November 2005 – TELECOMS

From 17:00 – 20:00 hrs @ Intellect Conference Suite, Russell Square House 10-12 Russell Square, London WC1B 5EE
The ‘After 5’ seminar series looks at topical issues relating to: outsourcing; telecoms; data security; GRID computing and telematics – highlighting different perspectives on offer to nimble technology companies.

The Speakers for this Thursday 17 November will be:

Andy Williamson, CTO, Broadband Wales and Ann Benyon, Director, BT Wales

The telecoms industry is responding to demand for broader-band services, but what happens next? Join us at the ‘After 5′ Telecoms seminar which will take a look at issues surrounding this topical subject.

Broadband Wales’ CTO, Andy Williamson will examine the future of communications, mobility and convergence and how these increasingly impact on today’s sophisticated IT systems. Andy will explain how Wales is gearing up its broadband infrastructure to meet these imperatives.

Ann Beynon will give an overview of BT’s investments in Wales, such as the 21st Century Network (21CN) – the world’s most radical next generation network transformation programme – and the challenges this presents. Ann will set this against the backdrop of BT’s significant investments in Wales, such as its datacentre.

Dates for future seminars in 2006:

• Thursday 19 January: Data Security
• Thursday 16 February: GRID Computing
• Thursday 16 March: Telematics

The homeless should be given broadband internet access, John Prescott’s office has said in a new report.

The Office of the Deputy Prime Minister believes digital technology could be a lifeline for people on the streets.

It says many homeless people already use the internet and mobile phones to look for work and accommodation.

And it wants to build on this by encouraging homeless hostels and community centres in deprived areas to install broadband access.

Call to give broadband to the homeless

In March 2005 the European Council agreed to re-launch the Lisbon agenda to focus it more sharply on the key priorities of jobs and growth. Subsequently, the Integrated Guidelines package, endorsed by the European Council in June 2005, identified the key challenges facing the EU as a whole. Member States were then invited to identify their own reform priorities and present forward-looking reform plans to the European Commission by 15th October 2005.

The UK’s first National Reform Programme was published on 13th October 2005. It sets out the challenges currently facing the UK economy, and details the Government’s forward looking agenda of economic reforms to ensure macroeconomic stability, to deliver higher productivity growth and to increase employment opportunity for all.

The UK National Reform Programme – October 2005

Global Europe: full-employment Europe – October 2005