Competition Must Guide Ofcom’s Hand in Review of Next Generation Networks
Wednesday 13th April 2005
The Internet Services Providers’ Association (ISPA UK) – the UK’s leading Internet trade association - is highlighting the concerns of its members over the competition implications that Next Generation Networks (NGNs) will have for access and interconnection arrangements in the UK.
Industry regulator Ofcom is conducting a consultation into ‘Next Generation Networks - Future arrangements for access and interconnection’, and is due to report back in the coming weeks.
The introduction of BT’s Next Generation Network, known as 21CN, will help to deliver Broadband Britain. NGNs are integral to the success of Broadband Britain by enabling end users to take advantage of new and innovative services. However, innovation demands a competitive environment.
NGNs deliver convergence between the traditional world of public switched telephone networks and the new world of data networks. Whilst it may cause significant upheaval, ISPA agrees with Ofcom that the move to 21CN should be viewed as creating the first ever opportunity to ensure that access and interconnection to an incumbent’s network supports competition from the outset.
Equality of access to 21CN should help to achieve a more competitive market. BT must treat all customers in exactly the same way irrespective of whether the customer is an external customer or an internal BT customer. Equivalence of product, process and price for Service Providers should not be an aim but a minimum requirement for NGNs.
Barriers to achieving equivalence of inputs to 21CN such as security, standards, supports and scale are surmountable given time and appropriate regulatory guidance and vigilance. A system of flexible regulation that can be focused on key bottlenecks and rolled back in other areas would grow a competitive industry and drive innovation. ISPA believes that areas of regulation should be constantly monitored and evaluated, and ultimately withdrawn when appropriate.
Mrs Hendrie-Liaño, Chair of ISPA Council said, “ISPs have made significant investments based on the current access and interconnection arrangements, so many will lose out in the short term. But ultimately competitive Next Generation Networks are likely to benefit all providers and customers.”
“ISPA believes Ofcom’s role should be to ensure that there is clarity to the regulatory principles and policies necessary to support effective competition with the introduction of NGN services. A competitive industry is a healthy industry, and one we must strive to achieve.”
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Notes to Editors
The views expressed in this release are those of the Internet Services Providers' Association (ISPA UK) and do not necessarily reflect the corporate policies of the individual companies that are members of the Association or other organisations that may be mentioned in the release.
For further information, please contact the ISPA Press Office. Email: pressoffice@ispa.org.uk Tel: 020 7340 4535
About the Internet Services Providers’ Association
The Internet Services Providers’ Association (ISPA) was established in 1995 as a trade association to represent providers of Internet services in the UK. ISPA promotes competition, self-regulation and the development of the Internet industry. For a list of members or other information about ISPA, please consult the website: www.ispa.org.uk