OFTEL proposes new strategy for industry regulation

In a strategy statement “Achieving the best deal for telecoms consumers” published on 18th January 2000, OFTEL has set out its new approach to regulation designed to enable consumers to get the best deal from the rapidly developing telecoms market, and which will see OFTEL taking a less active role in regulating the telecoms services market.

According to the Director General of Telecommunications, where regulation originally focused on opening up a previously monopoly market, promoting competition and protecting customers, now it will be appropriate to the level of competition within the telecoms market.

OFTEL has announced it will be conducting a cycle of reviews of the key sectors of the telecoms market over the next few years to see if competition is effective in delivering benefits to consumers, and, if so, whether regulation needs to be changed or is still necessary.

OFTEL envisage that where competition is effective and already protects consumers, formal regulation will be rolled back. There will be more self-regulation by the industry, and co-regulation where some control is still needed. The industry will have a key role in both initiatives. OFTEL intend to focus on preventing anti-competitive practices.

Comment: Where OFTEL’s proposals may be good news for the industry, they have had a mixed reaction from consumers. The Consumers’ Association issuing a “warning note” and its Senior Policy Adviser, Liz Cloud, commenting that consumers need information as well as protection from anti-competitive practices, and that self-regulation may not provide sufficient consumer protection

(OFTEL Press Release 02/00)