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Foreword

Convergence is the reason that Ofcom was created and it is now becoming a reality. It has the potential to provide widespread benefits for consumers, both businesses and individuals, and for citizens.

For consumers, convergence means increased choice and the lower prices that come from greater competition between platforms and providers. For citizens, it means the chance to use communications services to participate in society in new ways.

Convergence is the work of markets, but Ofcom has a role in influencing the speed at which it occurs and how widely the benefits are enjoyed. We believe that the interests of citizens and consumers are served by regulating for convergence. To this end, we have developed a strategic framework that will see us focusing on seven policy areas over the next three years:

• driving forward a market-based approach to spectrum by continuing to reduce the restrictions on how spectrum can be used, promoting spectrum trading and making more spectrum available;
• promoting competition and innovation in converging markets by ensuring that BT’s Undertakings are implemented effectively, encouraging efficient investment in next-generation networks and examining the potential for new sources of market power to emerge;
• ensuring that public outcomes continue to be delivered by reviewing our approach to content regulation, promoting access in all parts of the UK to the communications services needed to participate in society and ensuring that high-quality content is available on a range of platforms, including radio;
• improving compliance by the businesses we regulate by simplifying regulatory rules and examining our approach to enforcement, and empowering citizens and consumers by promoting media literacy and ensuring that consumers have the information to make informed choices;
• considering the extent to which it is desirable to move towards greater consistency between the legal and economic frameworks that govern communications platforms;
• continuing to reduce regulation and minimise administrative burdens; and
• maximising our impact on international policy development.

Our Annual Plan for 2007/8 sets out in detail the work we will be doing in the coming year:

• Section 2 describes the key changes that are happening in the communications sector and explains our three-year strategic framework in more detail.
• Section 3 sets out our 15 policy priorities for 2007/8 – organised under the policy areas identified in the strategic framework – and highlights the main projects that we will be undertaking. The table on our website provides information about all our projects and planned work: http://www.ofcom.org.uk/about/accoun/reports_plans/annual_plan0708/projects/.
• Section 4 describes the range of services that we deliver to stakeholders and explains what we will be doing to improve them. These services include responding to calls and emails from the public, licensing access to the radio spectrum, keeping the spectrum free from interference, publishing market research and allocating phone numbers to service providers.

The Annual Plan reflects the wide-ranging input that we have received from our stakeholders. We have held public events in Glasgow, Belfast, Cardiff, Caernarfon, Newcastle, Bristol and London. We have received input from our advisory bodies and considered all the written responses to the consultation on the Draft Plan.

There was broad support for our three-year strategic framework and for our proposed policy priorities for 2007/8, so we have not changed them following the consultation. We received other comments and suggestions that have helped us to refine and improve the Annual Plan. For example, in response to the comments of a number of stakeholders, we have added details of how we evaluate our performance to the end of Section 2. The main points made in the responses, and our reaction to them, are set out in the Annex, and we will take account of the responses in carrying out our planned programme of work.

We remain committed to providing stakeholders with value for money and will continue to make efficiency savings, building on the savings made so far.

As a result of recent discussions with HM Treasury, there has been a minor change to our funding arrangements. In the past, technology research was funded directly by HM Treasury under the Spectrum Efficiency Scheme. In the future, this research, which is expected to cost £3.5m in 2007/8, will be included in our budget. However, because the research will relate predominantly to the management of the radio spectrum, it will be funded by the Department of Trade and Industry (DTI). On a like-for-like basis, reflecting the fact that technology research was reported previously as a separate item, our budget for 2007/8 will be £126.7m, which is 5 per cent less in real terms than our budget for 2006/7.

In 2007/8, we will finish repaying the loan received from the Department of Trade and Industry (DTI) to set up Ofcom, meaning that in subsequent years stakeholders will no longer have to contribute to repayments. We will also benefit from disposing of properties that we inherited from the previous regulators; from implementing improvements to our information systems; and from renegotiating major contracts. More information about our budget and the fees that will be payable by stakeholders is available on our website: http://www.ofcom.org.uk/about/accoun/tarifftable0708/.

We thank you for contributing to the development of our Annual Plan for 2007/8 and look forward to discussing and debating with you the wide range of issues that we will be addressing over the next year.

David Currie - Chairman
Ed Richards - Chief Executive

• Ofcom Annual Plan 2007-08 [pdf]
  Full Print Version

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