OFCOM Listened!!!!!!!!

[miken]

21|05|08
Deregulating the UK’s wholesale broadband markets: 70% of the country to be liberalised

Ofcom today announced the removal of regulations for wholesale broadband access in areas of the UK which are served by effective competition.

The decision is part of Ofcom’s commitment to review and, where appropriate, remove regulations in markets where there is effective competition, further promoting innovation and investment.

The regulatory environment created by Ofcom has resulted in significant competition which has matured at different rates across the UK. The most competitive areas tend to be those where there is high population density, in particular large towns and cities and business districts.

Following a public consultation, Ofcom will deregulate almost 70 per cent of the UK wholesale broadband market where there is now strong competition.

The measure will affect those parts of the country which are now served by four or more wholesale broadband providers and where no single company has significant market power. In these areas customers are protected by the disciplines of effective competition.

However, some parts of the country do not enjoy this level of competition. Where there is less competition and where a company still has significant market power, Ofcom will maintain regulation designed to promote retail competition. This requires BT and KCOM, in Hull , to provide a wholesale product to other providers on a fair and reasonable basis, thus allowing these providers to offer retail services.

In February 2008 the European Commission endorsed Ofcom's proposal for regulation of the wholesale broadband access market in the UK , noting that it is based on detailed economic evidence and that it represents a reasonable move towards better targeted regulation. The approval was the first time the European Commission had agreed to geographically targeted regulation in broadband markets.

Ed Richards, Ofcom Chief Executive said, “This is a major step forward in the UK broadband market reflecting the success we have had in promoting effective competition. It shows that we are determined to deregulate wherever we can do so in a way that is consistent with the broader public interest.” He added, “We now need to build on these foundations and see timely investment and a competitive market emerge for next generation access as well.”

Ends.
NOTES FOR EDITORS

1. A map of areas that will be deregulated can be found at: http://www.ofcom.org.uk/consult/condocs/wbamr07/statement/wbam.pdf.

2. Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.

3. For further information about Ofcom please visit: www.ofcom.org.uk. Ofcom’s news releases can be found at: www.ofcom.org.uk/media/

http://www.ofcom.org.uk/media/news/2008/05/nr_20080521

[miken]

What exactly does it mean? What is Deregulating?

This requires BT and KCOM, in Hull , to provide a wholesale product to other providers on a fair and reasonable basis, thus allowing these providers to offer retail services.

What exactly does that mean? how I read it is there isn't any changes.

[Hobbisbang]

It means that they cant up the prices up over and above the reasonable current market rates.


Wont change anything as nobody wants to so come in anyway.

Look how quiet enta went !!!
 

[dylan]

It means that they cant up the prices up over and above the reasonable current market rates.


Wont change anything as nobody wants to so come in anyway.

Look how quiet enta went !!!
 

That is quite scary in a way! Every potential new ISP we come into contact with seems somewhat positive at the start then disappear without a word. Wierd 

[tef89]

What exactly does it mean? What is Deregulating?

This requires BT and KCOM, in Hull , to provide a wholesale product to other providers on a fair and reasonable basis, thus allowing these providers to offer retail services.

What exactly does that mean? how I read it is there isn't any changes.

That's exactly correct Mike - no change in Hull.  Ofcom will continue with the existing regulation - after all it's been working so well up to now   

[Adrian]

Same price as BT so everyones happy

[marko]

Sorry if this has already been posted elsewhere. I just found it on Karoo's home page,

 Voluntary code for broadband providers

Broadband providers have been asked to sign up to a new industry code to provide more honest internet speeds to customers.

Regulator Ofcom found consumers could be misled or misinformed when choosing their broadband services by ISPs advertising headline speeds that are higher than users can receive in practice.

In a deal with Ofcom and 32 internet service providers (ISPs) a new code of conduct will be established for the industry. The regulator will also be undergoing a national investigation into broadband speeds.

Under the new deal ISPs will provide customers with accurate estimates of their maximum speed when they buy.

Also if internet speeds advertised do not live up to expectations, consumers will be allowed to switch to lower speed, and cheaper, deals.

Clearer information on usage limits will also be provided.

"The ball is very much in the ISPs' court for them to meet the spirit and the letter of the code," a spokesperson for Ofcom said.

Firms have six months to adhere the code – at which point Ofcom will conduct mystery shopper research to ensure the plans are being met.

If the broadband firms fail to meet the demands of the code, Ofcom has warned it will introduce mandatory regulations – as it has done for the sale of mobile phones when a voluntary code failed to change poor sales practices.

Ed Richards, Ofcom's chief executive, said: "Broadband is a thriving market in the UK. We want to encourage real clarity for consumers about the actual broadband speeds they can receive. This voluntary code is a significant step in this direction."

[The Dominator]

There was a mention of this on Radio 4 this morning.
KCOM have been giving the info to users for some time via:
http://www.karoo.co.uk/broadband/postcodespeedchecker/

but they have not been saying anything other than the standard quotation "up to 8mbs" in their advertising.

I am not sure how they can move this along, other than remove the "up to 8mbs"..?

[commandergc]

i don't understand why ISPs don't just say "the maximum speed your line will support" instead of this "upto 8Mbps" bull. At least then it would more accurate, since they can provide an estimation about the speed your line is likely to achieve before you sign up.

Also has Ofcom told the ISP's to include speeds based on traffic management or is it just to do with Sync rates?

[willcocks]

most isp's I know of mention in the small print that 8mb is dependant on "other factors". in the small print it always lists reasons why you wont get 8 meg. i can get 8mb here, which is great... but the "other factors" for Karoo include 10k/s at peak regardless of sync and rude customer services.

ofcom should make isp's like the train companies, so they can lose their franchises. that has been sort of successful...

have no confidence in ofcom doing anything,

surely the "up to 8" means "up to". in Karoo's case obviously up to 8mb if theres a deadly epidemic and only 3 people are using the internet..

[commandergc]

most isp's I know of mention in the small print that 8mb is dependant on "other factors". in the small print it always lists reasons why you wont get 8 meg. i can get 8mb here, which is great... but the "other factors" for Karoo include 10k/s at peak regardless of sync and rude customer services.

This is the problem OFCOM are missing! How many people actually read their ISP's T&C/FUP and or small print? Most people will just see the 'headline' speeds and think that's what they'll get.

[Project Novo]

Dear all

If you really want competition then its up to all of us residents to write to petition OFCOM to force KCOM to provide FULL LLU pricing information.

OFCOM HAVE AN OBLIGATION under their terms of reference to exist to ensure that their is true competition in the market for the provision of telecommunication services.

OFCOM FORCED BT to provide full LLU pricing infromation and forced BT to provide precise costs in order to establish what a fair and reasonable price would be for Wholesale Line Rental and LLU. That way operators could make a fully informed commercial judgement whether or not they wished to enter the market.

THIS IS WHAT KCOM ARE AFRAID OFF !
   
So the burning question is WHY havent OFCOM forced KCOM to be transparent as they did with BT ?? Whose on the payroll? - whose knows something about someone ?. Also, maybe the Head of KCOM Regulatory affairs will get a job with OFCOM ! 

My guess that this is due to the influence that KCOM have with OFCOM ,particulary from KCOM regulatory affairs personnel, since any competition in Hull will result in a significant reduction in the subsidy of KCOM national network operations. Hull supports the rest of KCOM's national network operations of which Hull people subsidise to the detriment of their own network services in the City. Believe you me it will only get worse. Why dont big businesses wish to invest in the City? - no competitive ICT infrastructure is cited as the main reason.   
 
I have first hand experience in dealing with OFCOM when assisting in the deployment of the Azzurri Communications / Core Projects City wide WIFI network and found OFCOM unhelpful and provided me with incorrect information. Also, the afternoon before the day my official complaint against KCOM was to be heard by OFCOM, KCOM's prices mysteriously changed in line with their regulated book prices - In my opinion it was no coincidence and KCOM had been informed that a valid complaint had been received.

In my opinion, OFCOM have NO Interest in ensuring that the conditions permit for competitive telecommunication services in Hull.

OFCOM have a LEGAL obligation to act under their reason for existance. If OFCOM do not act  I suggest that a petition be put together to force the end of Ofcom since they are in breach of their own terms of reference.

Please see:

http://www.ofcom.org.uk/about/sdrp/

PS - New wholesale reductions in KCOM's IP line wholesale product will make no difference in aiding competion since the line is still owned by KCOM with line rental still payable. KCOM's bowed to pressure put on through local Pressure to help serve local requirements by its previous largest local shareholder.

Project Novo

 

[Project Novo]

Ofcom's Statutory Duties
Under the Communications Act 2003:
" 3(1) It shall be the principal duty of Ofcom, in carrying out their functions;
(a) to further the interests of citizens in relation to communications matters; and
(b) to further the interests of consumers in relevant markets, where appropriate by promoting competition"

ITEM (b)  is the relevant bit

[Hobbisbang]

Novo

I know your impassioned about this and I would suggest running a petition at:

http://petitions.pm.gov.uk/
I know for one I would sign it

[Robo]

You may sign it like 3000 other people did the last one, however did they listen, did they heck.