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Foreword

Our Annual Plan reflects the rapidly-evolving developments in the communications sector, and changing consumer attitudes and preferences. The nation is embracing digital in all its forms and with enthusiasm. There are now over ten million broadband connections, digital TV is in more than two-thirds of homes and sales of DAB digital radio sets are approaching the three-million mark. In mobile, 3G is taking off, with more than four million users; and there is a growing range of televisual content being delivered, on demand and streamed, over an increasing number of platforms and devices, fixed and mobile, creating new media opportunities for Britain’s creative community.

The transition by many telecommunications operators to next generation, IP-based, networks provides the opportunity for reduced costs and higher efficiency among British business more widely. The increasing roll-out of Local Loop Unbundling (LLU) offers higherspeed data transfer, voice over internet protocol (VoIP) and video downloading for small businesses and home professionals as well as the residential market.

In wireless, the potential of new technologies and standards, such as WiMax, Ultra Wideband and DVB-H, for new business and consumer services, creates a rising demand for more spectrum to be made available, more freely, in the market.

The year ahead will see significant international activity, with the European Union’s review of its framework for electronic communications, the draft directive on TV and other audio-visual content and, in spectrum, the most significant set of international negotiations in over 40 years.

For Ofcom, the big strategic reviews of each part of the communications sector are completed and a key challenge ahead is to ensure in the implementation that they deliver for competition, quality and the consumer. Against that backdrop, Ofcom’s 2006/7 Annual Plan has nine priorities which commanded broad support during the consultation. These are:

• spectrum release: auctions and liberalisation;
• implementation of the telecommunications strategic review;
• continued deregulation;
• next-generation network deployment in telecommunications;
• public service broadcasting: future developments;
• content delivery;
• protection of citizens and consumers;
• availability and access; and
• greater international engagement.

The Annual Plan is a full and ambitious work programme. But it has also been constructed to represent value for money for our stakeholders. We will continue to achieve cost savings; in addition to the 5 per cent real reduction in 2004/5, we anticipate achieving a reduction of around 8 per cent in real terms by the end of 2005/6. In 2006/7 our budget will be £129.5m, a further 5 per cent reduction in real terms. We will continue to improve our efficiency by investing in changes across our operating systems and therefore expect a further reduction in costs in 2007/8. By the end of this period we will have paid off entirely the loan made to fund the creation of Ofcom.

David Currie, Chairman

Stephen A Carter, Chief Executive

The full document is available below:

• Annual Plan 2006/7 [pdf]
  Full Print Version

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