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OPEN LETTER TO THE FINANCIAL TIMES – RADICAL MARKET REFORM NEEDED

September 21, 2015

 

The following letter was published in today’s Financial Times.

SIR– Every home and business in Britain deserves fast and reliable broadband access. It is essential if Britain is to fulfill its potential to be the world’s leading digital economy. Unfortunately, today’s broadband market is letting customers, businesses and Britain down. It is time we considered radical reform.

Ofcom is currently conducting the most fundamental review of the communications market in a decade, and has identified serious problems with the ownership of the national telecoms network by BT Openreach. These include a conflict of interest in the role of BT, poor quality of customer service and difficulties in enforcing the existing regulatory regime. The result is a sub-standard experience for millions of customers and diminished opportunity for alternative providers to compete effectively.

There is an urgent need for increased competition so that alternative providers are encouraged to invest and innovate to solve the challenges ahead. These include investment to deliver broadband coverage in hard to reach areas, improved service quality and reliability, fibre products suitable for Britain’s SMEs, and new ultrafast broadband services.

We do not believe that the fundamental problems identified by Ofcom can be addressed by tinkering with the existing regulatory framework. Ofcom has done a good job of delivering competition on the old copper network, but the powers given to it are insufficient for the new superfast world.

It is therefore crucial that Ofcom moves as quickly as possible to ask the Competition and Markets Authority (CMA), with its far reaching powers, to undertake a full market investigation. Only the CMA, with the support of Ofcom, can address the structural barriers to competition that will unlock the next wave of investment in communications infrastructure that the country urgently needs. We cannot afford to wait

Yours sincerely

Jeroen Hoencamp, Chief Executive, Vodafone UK

Jeremy Darroch, Chief Executive, Sky

Dido Harding, Chief Executive, TalkTalk

Chris Pateman, Chief Executive, Federation of Communication Services

Malcolm Corbett, Chief Executive, Independent Networks Co-operative Association

Simon Walker, Director General, Institute of Directors

Chris Bryce, Chief Executive, Association of Independent Professionals and the Self Employed

Contact

Vodafone UK Media Relations
01635 666777
ukmediarelations@vodafone.com

About Vodafone UK

Vodafone UK is part of Vodafone Group, one of the world’s largest telecommunications companies, and provides a range of services including voice, messaging, data and fixed communications. Vodafone Group has mobile operations in 25 countries, partners with mobile networks in 46 more, and has fixed broadband operations in 18 markets. As of 31 March 2018, Vodafone Group had 535.8 million mobile customers and 19.7 million fixed broadband customers, including India and all of the customers in Vodafone’s joint ventures and associates. For more information about Vodafone UK, please visit: www.vodafone.co.uk

Vodafone UK partners with businesses of all sizes – from start-ups and small businesses to the largest corporates and the public sector. The company has worked with UK businesses for over 30 years, starting out as a mobile provider and becoming one of the UK’s leading total communications partners. It provides a range of voice and data services, secure communications infrastructure, fixed and contact centre capability, and unified communications, and was the first mobile phone operator to offer a truly converged service for fixed and mobile.

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Vodafone UK Media Relations

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