Regulatory Timeline: Telecoms

“As the Internet of Things takes off and technology becomes ever-smarter, we can
expect demand for high-speed, always-on connectivity to continue to surge. If
players in the supply chain are to stand any chance of keeping up with consumer
demand, they will need to squeeze as much use as possible out of existing
spectrum rights. Persuading operators to commercialise e.g. trade or share
spectrum may not be easy, but could be the key to unlocking longer term benefits
for a competitive market.”

31 December 2015 – Increased consumer protection
enforcement 

Ofcom is consulting on revising its penalty guidelines (“Penalty Guidelines
Consultation”) to increase their deterrent effect, and help reduce the continuing levels
of complaints to Ofcom and contraventions of regulatory requirements. Ofcom is
particularly concerned about the continuance of practices such as scamming and silent
and/or abandoned calls; and has indicated that it may consult on proposals for
changes to the current Ofcom guidelines on silent and abandoned calls before the end
of 2015.

The current Penalty Gudelines Consultation closed on 24 September 2015, which
means that we could see new guidelines in early 2016. 

Revised penalty guidelines will focus more on the link between the objective of
deterrence, and the size and turnover of the communications provider that is to be
subject to the penalty. This will likely form an important part of Ofcom’s consumer
protection toolkit. Ofcom has already flagged that it will be free to depart from
precedents to date and take a more aggressive approach such as higher fines. 

31 December 2015 – Spectrum sharing

Ofcom is proposing a new framework for spectrum sharing, to address the continuous
growth in demand for mobile and wireless data, when faced with limited existing
spectrum resources. The current consultation closes on 2 October 2015, and Ofcom
intends to issue a follow-up document by the end of 2015/2016. This could then form
the basis of specific revisions to Ofcom’s current approach to spectrum sharing and
wider Spectrum Management Strategy (published 2014), that would be implemented
during 2016. 

Ofcom has indicated that it will not mandate sharing, although ‘credit’ may be given in
future spectrum assignment processes such as auctions, to bidders who are willing to
share spectrum won. 

Ofcom’s objective of ensuring that existing barriers to sharing (such as information
barriers) are removed could see licensees having to provide detailed information about
actual, real-time usage and future usage plans for their spectrum rights. 

30 April 2016 – Net neutrality

In June 2015, the EU Commission, Council and Parliament reached agreement on a
Regulation to enshrine net neutrality into EU law. The Net Neutrality Regulation is
designed to ensure that users have access to online content and services without
discrimination or interference by internet service providers. All internet traffic must be
treated equally, subject to limited exceptions. The Net Neutrality Regulation is
expected to come into force on 30 April 2016. 

This forms part of the EU’s wider reform of the EU telecoms regime, which includes the
end of international roaming charges in June 2017. 

1 July 2016 – New Regulation on crossborder
electronic signatures
takes effect 

Regulation 910/2014 on Electronic Identification and Trust Services for Electronic
Transactions in the internal market replaces the existing E-Signatures Directive
(Directive 1999/93/EC). The European Council believes that the failure to make greater
use of electronic signatures within the framework of an independent certification
system has hindered the creation of a fully integrated digital single market. It remains
to be seen whether the new Regulation and related initiatives will result in greater use
of electronic certification facilities. With some exceptions, the new Regulation will apply
from 1 July 2016. 

1 December 2016 – Ofcom consultation on the
future use of 700MHz spectrum
frequency band: change in use
from DTT to mobile broadband 

Ofcom is consulting on a proposal to use the 700 MHz spectrum band for mobile
broadband (including issues associated with clearing the current band). It believes that
this would deliver significant net benefits to the UK, while recognising that there would
be significant transition costs. However, Ofcom believes that it would be possible to
reconfigure the Digital Terrestrial TV network in the spectrum between 470–694 MHz
without materially affecting the current coverage or channel mix, or significantly
disrupting viewers. 

If it proceeds with this proposal, Ofcom would expect to award licences to the 700 MHz
band through an auction process. If auctions were held shortly before the spectrum
became available, this would mean an auction taking place in around 2020. Ofcom is
inviting comments on the timing of the process and the relative merits of holding an
auction earlier, possibly as early as 2016. 

31 December 2016 – Data Retention and
Investigatory Powers Act

The Data Retention and Investigatory Powers Act (“DRIP”) was rushed through in July
2014 as a temporary measure, with a sunset clause for its expiry by the end of 2016.
The Government will need to consider before then what measures it intends to put in
place to replace DRIP. 

The Government also intends to review the Regulation of Investigatory Powers Act. 

31 December 2016 – More radio spectrum for
Internet of Things

Ofcom is consulting on using more of the VHF frequencies (below 90 MHz) for
machine-to-machine (“M2M”) applications, in rural areas where connectivity is required
over longer distances. Possible applications include: smart farming; agriculture
applications (e.g. crop and/or livestock management) costal/maritime applications;
environmental applications; and safety-related communications. The consultation
closes on 12 November 2015, and Ofcom intends to publish a statement on the issue
before the end of the year.

Unless significant objections are received, the relevant rules to enable greater use of
these frequencies for M2M applications in rural areas could be ‘live’ by summer 2016.