Ofcom was created in anticipation of convergence across the various communications services.
At that time, we were only just beginning to see some of the transformations yet to come. Four years later, we are in a world where convergence is truly upon us. The way we go about our personal lives, how we participate in society as citizens and how we act in the marketplace as consumers are all changing profoundly. These changes have far reaching consequences for all sectors of the economy, but they are felt especially in the communications sector.
Convergence is not easily defined and refers to a broad range of developments. These include: changes in the way that communications services are used; transformations in business models; and technological advances. But what is clear is that it offers many opportunities, while raising a number of new challenges for consumers, citizens, businesses and Ofcom. We are moving rapidly to an increasingly digital world, which features more competition, more choice, more complexity and more change in the communications sector than ever before. These changes raise a number of new questions – questions that apply to us as citizens, and as consumers.
For citizens, there are many benefits from these changes. An increasing number of communications platforms can be used to achieve public interest objectives. One example is public service content that can now be delivered over TV, the radio or the internet. Citizens can also benefit from becoming part of a better connected, more networked society.
But there are challenges for us as citizens too. We must guard against the risk of excluding certain groups from participating fully in society. This can happen because of issues with the availability of services, or because of lower take-up and usage among some groups. The traditional ways in which public interest objectives have been delivered in the past are increasingly being challenged. For example, the current business model for the provision of public service broadcasting is being undermined by increasing choice and competition in broadcasting. Some approaches to securing universal availability of services will also need to be reassessed in an increasingly convergent and digital world.
As consumers, we are finding ourselves with more control than we have ever had before. As an example, mobile technologies – hardly a feature of the communications landscape 15 years ago – are now key to communication, and increasingly to accessing and sharing media content. We are also able to select from an ever-growing range of services, and customise these services to our needs. In the emerging digital, convergent world, we are also increasingly producers of our own content, taking advantage of the possibilities offered by the internet and other interactive technologies.
Yet there are challenges for consumers. While new services offer the potential for greater control, growing complexity means that there is a greater need to empower consumers in the new world. We need to ensure that consumers can make the most of the potential benefits, while at the same time protecting themselves. However, empowerment is not the only solution to protecting consumers. The Draft Annual Plan 2008/9 will continue to be a role for Ofcom to intervene in certain circumstances to protect consumers from actual or potential harm.
Finally, the opportunities and challenges presented by convergence are no less significant for industry. The business models of companies in the communications sector are being transformed. Many new players are entering the market, and some have been highly successful in only a few years. At the same time, many traditional businesses are benefiting from new opportunities and extending their reach to new platforms. But the fast pace of change makes for a challenging market environment for new entrants and long-established companies alike.
All of these opportunities and challenges raise questions for Ofcom. To make sure we are prepared to meet these challenges, we developed a three-year strategic framework last year to consider the implications of convergence. The aim of the framework was to guide our work until 2010, and to deliver on our objective of regulating for convergence.
As part of our annual planning process this year, we have looked at the main developments in the communications sector to check whether the strategic framework remains appropriate. Our analysis suggests that it is indeed still highly relevant. However, the developments we have witnessed in the past year need to be reflected in our detailed work programme. Therefore, our work programme set out in this document balances a number of existing work areas (such as the implementation of our strategy for fixed telecoms) with some new areas of focus (such as our second review of public service broadcasting).
We must focus our activities on the most relevant areas for consumers, citizens and industry. It is therefore important that we take account of a broad range of views on the proposed work programme.
In developing our proposals we sought input from all of Ofcom’s advisory bodies. For national perspectives, we discussed with the National Advisory Committees for England, Northern Ireland, Scotland and Wales. For issues affecting different groups across UK society, we consulted the Content Board, the Consumer Panel and the Advisory Committee for Older and Disabled communications users. And we reviewed issues concerning the radio spectrum with the Ofcom Spectrum Advisory Board.
We are keen to hear the views of all our stakeholders, including those representing consumers, small and large businesses, and government, as well as companies in the communications sector. We would very much encourage anyone with an interest in Ofcom’s work programme to contribute and respond to this draft annual plan. We will publish responses to this consultation within our final annual plan in April 2008.