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18|03|05

Speech at ITSPA reception

Andrew Heaney, 8 March 2005

Thank to ITSPA to inviting Ofcom this evening … I see this as the start of a potentially fruitful relationship for both parties.

Thank you also to Claire for her comments – the DTI and Ofcom are very much on the same page on this issue.

VoIP was one of the key policy issues that Ofcom tackled in our first year

Unlike some other countries VoIP has not yet entered the mainstream of the UK residential and smaller business telecoms markets. One of the barriers to that happening was regulation.

Thus our approach to VoIP was an early litmus test of Ofcom’s objectives to promote consumer benefits through supporting innovation … or put another way, not stifling it. VoIP has the potential through innovation and convergence to deliver new, better and cheaper services as well as more effective competition.

So last year we made a number of policy decisions to help allow that innovation to find its own course:

• Allowing use of geographic numbers (such as 020, 0151, 01252) and in certain cases the ability of customers to port their number from an existing phone service
• Consultation on specific regulation affecting VoIP services to withdraw unnecessary and unreasonable elements of regulation (the finalisation of this is pending Commission guidance)
• A clear focus to ensure that consumers are well-informed and protected through a code of practice which we see as the foundation of a successful UK VoIP market

What I have found particularly encouraging in the last few months has been the energy and commitment that the industry including ITSPA members have taken working alongside Ofcom in developing the principles and detail of a consumer protection approach.

The more formal establishment of ITSPA is another positive step. One key element of ITSPA is its own code of practice which we understand will be finalised shortly.

• Ofcom particularly welcomes the commitment to put consumer interests at the heart of the code and that ITSPA aspires to set the standard for consumer protection in the industry
• This code will run in parallel with the industry-wide code but we see it as an important complement and extension to the industry wide code. By promoting best practice in this way, consumers will be empowered to make informed decisions and will have confidence in new providers and services.

In time, these type of initiatives should allow industry to take a greater role in consumer protection rather than relying on unnecessary intervention by Ofcom.

We see a number of other key roles that we hope ITSPA can play in contributing to policy development and helping to develop an industry that delivers benefits for consumers. I don’t want to place to much onus on ITSPA but a few areas where ITSPA can play:

• Providing a single and strong voice for this nascent industry articulating its needs to the wide range of stakeholders including Ofcom
• Helping to ensure that Ofcom’s policy decisions are grounded in commercial reality and best practice from around the world
• Helping to foster and strengthen a collective responsibility from service providers and other players in the industry
• Exploring technology options to deliver improved services for consumers

ITSPA, I hope I have not made your role too daunting !

Lastly, I am also pleased to see the UK taking the lead in Europe in forming a group to represent this nascent but important sector.

Eli, Kim and everyone else at ITSPA … congratulations on what you have achieved and we look forward to working with you.

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