The new chief executive of Ofcom, Sharon White, has said its strategic review of digital communications will look closely at convergence between telecoms operators and media companies.
In her first interview since starting the role in March, White told…
The new chief executive of Ofcom, Sharon White, has said its strategic review of digital communications will look closely at convergence between telecoms operators and media companies.
In her first interview since starting the role in March, White told the Financial Times that the British regulator will look to see whether convergence presented opportunities to both promote competition and to allow deregulation.
Ofcom’s study comes as the UK telecoms sector is in a state of flux. Fixed-line, broadband and pay-TV giant BT has struck a £12.5bn deal to buy mobile operator EE, and Hutchison Whampoa subsequently agreed the £10.3bn acquisition of O2, which it plans to combine with its local Three unit.
Elsewhere, broadband and DTH player Sky and fixed-line operator TalkTalk have announced plans to launch MVNOs are among a growing number of convergence developments.
White said another important issue on her plate was the influence US internet giants such as YouTube and Facebook on UK telecoms and media. She told the FT that there could be potential for a “lighter approach” in terms of regulation following the entrance of the newer players and developments in technology.
Ofcom plans to prepare a discussion document for the review by the summer, with initial conclusions ready by the end of the year. It will be conducted alongside the Competition and Market Authority’s review of BT-EE and as the European Commission scrutinises Three-O2, but won’t engage with either of those two transactions directly. However, Ofcom will liaise with the antitrust authorities to aid their investigations.
