In this issue of Oftel News we continue our look at regulatory milestones in the history of telecommunications in the UK. We chart the progress of regulation from 1900 to the present day, and reveal some interesting parallels with today’s market. 

1901 Government indicates that the National Telephone Company's (NTC) licence will not be renewed after its 31-year term ends in 1912. The Post Office (PO) and NTC sign a ‘no competition’ agreement.

1904 Wireless Telegraphy Act means that radio spectrum is licensed by the Postmaster General (PMG) for the first time. Both transmitters and receivers require licences and the fees from the latter will later help pay for the BBC.

1907 Metered telephone service is finally permitted by government as an alternative to the fixed annual subscription, thereby bringing telephone service to a wider residential market.

1912 PO takes over the NTC system. The only remaining systems are in Hull, Portsmouth (closed 1913) and Guernsey

1918 Wireless Telegraphy Board is created to help avoid radio interference.

1923 The British Broadcasting Company is set up by a consortium of six radio manufacturers.

1927 1^st BBC Royal Charter

1929 In order to prevent the commercial collapse of the Eastern Telegraph Company by the competitive threat from the new Short Wave Beam Radio telegraphs, the government creates a ‘Public-Private Partnership’ of all the private and state interests in international telegraph cables and radio systems, called the Imperial and International Communications Limited, renamed Cable & Wireless Ltd in 1934.

1932 The International Telecommunication Union (ITU) is established from the International Telegraph Union and the International Radio Telegraph Union

1933 The Post Office sets up the ‘Bulk Supplies Agreement’ with its five main suppliers, encouraging standardisation of equipment, sharing of contracts and the limitation of competition.

1936 Television broadcasts begin from Alexandra Palace.

1947 The ITU becomes a specialised agency of the United Nations.

1949 Cable & Wireless is nationalised and its UK assets absorbed into the Post Office.

1949 Wireless Telegraphy Act, revises spectrum regulation after 45 years, although the 1904 Act has stood the test of time and most changes are to tighten up definitions and increase flexibility for changes to classes of licences.

1951 First Telephone Act, allows the PMG to regulate telephone prices.

1954 Television Act sets up commercial TV and removes BBC’s monopoly.

1969 The GPO leaves government’s direct control and becomes The Post Office, a public corporation. The PMG’s spectrum responsibilities pass to the Ministry of Post and Telecommunications.

1973 The Channel Isles take over their telephone service from the PO.

1974 The Ministry of Posts and Telecommunications is dissolved and spectrum responsibility passes to the Home Office.

1980 Broadcasting Act sets up Channel 4 and S4C.

1981 British Telecommunications Act, separates BT from PO, liberalises terminal apparatus and some Value Added Services.

1981 Pay TV on cable starts

1981 Cable & Wireless is privatised.

1982 Mercury, C&W’s new UK telephone company, is licensed.

1983 Distribution of TV across Europe by satellite begins.

1983 Spectrum regulation passes from the Home Office to the DTI.

1984 Telecommunications Act privatises BT, removes BT’s monopoly over telecom services and establishes Oftel.

1984 Cable and Broadcasting Act sets up the Cable Authority to promote and regulate cable TV

1987 Isle of Man telecom system is franchised to BT.

1987 Hull Corporation system transferred to a private company, Kingston Communications plc.

1989 Direct to Home satellite TV launched by Sky Broadcasting.

1990 First European Directive on Open Network Provision creates single market in value added telecoms services. Many more liberalising Directives follow during 1990s.

1990 Broadcasting Act transfers responsibilities of the IBA and the Cable Authority to the Independent Television Commission. IBA’s transmitter network taken over by National Transcommunications Ltd (NTL).

1990 Spectrum regulation transfers to the Radiocommunications Agency, a ‘next steps’ Agency under the DTI.

1991 Duopoly Review White Paper opens inland telecoms services to full competition. Cable companies can provide telephony in their own right.

1996 International duopoly of telecoms services ceases.

1996 Broadcasting Act paves the way for digital terrestrial TV and amends ownership rules.

1998 European Directives create new framework for competitive telecoms across Europe, ending monopolies in telephone services across the EU.

1998 Wireless Telegraphy Act allows for pricing of radio spectrum to incentivise efficiency, thereby allowing auctioning for 3G mobile licences.

2003 New European Directives remove need for licensing of telecoms companies and simplifies regulation. New Communications Bill establishes Ofcom to take over the roles of the five existing regulators of broadcasting, telecommunications and radio spectrum.

It is interesting to note that the 2003 Communications Bill still uses the term ‘Wireless Telegraphy’ which derives from the definition of telegraphy in the 1863 Telegraph Act.