Telecoms | UK Regulatory Outlook February 2026

Ofcom asks for stakeholder views on the impact of AI on telecoms customers  

Ofcom published an invitation on 27 January for industry stakeholders to share their views on the impact that adoption of artificial intelligence (AI) could have on the experience of telecoms customers.  

Ofcom's focus is on three questions.  

• How are AI tools being deployed and adopted across the telecoms value chain, and how are those tools affecting the experience of business and residential customers, throughout the customer journey, both today and in the future?
• What opportunities and risks does the adoption of AI tools, and their growing capability, present for telecoms customers?
• Does Ofcom need to make changes to its rules to support responsible innovation or to protect consumers? 

Review focus 

The review focuses specifically on how AI can affect the "customer journey" from when "people and businesses first choose a service and enter into a contract, to when they seek support as problems arise and when they decide whether to renew or terminate their contract". It is looking at the impact on both residential and business customers – with a focus on small to medium-sized enterprises and microenterprises.  

The review will not be covering AI tools used by providers that impact customers in more indirect ways; for example, network security, network management, environmental impacts and data protection.  

Why it matters 

• By publishing this request for information, Ofcom has given a clear indication of priorities.
• Ofcom has stated that the information it gathers as part of the review will help it to decide whether any changes to its existing rules are required. These changes could include additional protection for vulnerable customers and for customers who do not wish to use AI tools. Providers should therefore take this opportunity to make their views heard on this subject. Responses are due by 10 March. 

Ofcom publishes regulations enabling satellite direct to device services 

Following a series of consultations on its approach to authorising direct-to-device (D2D) services, Ofcom has now proceeded with making regulations to "exempt mobile handsets and other SIM-enabled devices from the requirement to be licensed under section 8(1) of the Wireless Telegraphy Act 2006" when the devices are established, installed or used for D2D satellite services.  

The exemption applies where devices connect to D2D services delivered using spectrum held by a UK mobile network operator (MNO) whose wireless telegraphy licence has been varied to include Ofcom’s D2D licence schedule and the relevant D2D conditions. Following the first variation for Telefónica UK, part of Virgin Media O2 (VMO2), Ofcom has added the specific frequencies on which VMO2 may provide D2D services into the regulations. 

Why it matters 

• Enabling D2D services in practice. The exemption is a key enabler for the commercial rollout of D2D services in the UK, as it allows existing consumer and business devices to connect to authorised D2D networks without separate end-user licensing.
• New business models and spectrum use for MNOs and satellite operators. Mobile network operators (MNOs) can seek licence variations to add D2D capability to their existing spectrum holdings, potentially increasing spectrum utilisation and extending coverage beyond terrestrial networks.
• Regulatory obligations: MNOs and satellite operators must comply with conditions in the D2D licence schedule and any related coordination or technical requirements within the broader framework.
• Open door for further D2D deployments: The process to vary licences is open to UK MNOs wishing to offer D2D services. As new MNO–satellite arrangements are agreed and approved, Ofcom expects to update the regulations to add further D2D frequencies, paving the way for the expansion of the D2D market. 

The regulations come into force on 25 February.