Ofcom's recently published its Strategy Review of Digital Communications – Discussion document. There has been widespread UK press coverage of the decision by Ofcom to include in the Review the idea of a Structural Separation of Openreach, BT's local access network, as one of a range of options. Ofcom Chief Executive Sharon White confirmed that Ofcom would not have included the option in the strategy document if it wasn’t a serious option.
Press reports describe Ofcom considering whether splitting Openreach from BT may be the best way to improve competition in the sector and follows complaints that the network's performance has often been poor. Sky's public reaction to the news was typical, calling on Ofcom to ask the Competition and Markets Authority to begin a full competition enquiry.
The Strategy review is about much more than just Structural Separation
Ofcom's review is the first in 10 years and is considering how regulation should be shaped
for the next 10 years. It outlines four challenges for regulation:
■ How to encourage Investment and innovation and widespread availability.
■ How to encourage a competitive market
■ Empowering consumers and businesses to take advantage of competitive markets
■ Regulation where necessary, but to deregulate elsewhere