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Introduction and summary

1.1 In our final statement on the Strategic Review of Telecommunications (Telecoms Review) on 22 September 2005 (see Related Items), we indicated that we would issue a statement outlining our approach for evaluating the impact of BT’s Enterprise Act Undertakings (the Undertakings) and the Telecoms Review as a whole.

1.2 A number of responses to our consultation on the Undertakings emphasised the need for Ofcom to define a set of measures by which we could assess whether the Undertakings were being complied with, both in the letter and the spirit. Such measures will allow Ofcom to demonstrate where parts of the Undertakings are succeeding, and also to establish where further attention should be focused to remedy any problems.

1.3 More widely than this, and again as suggested by respondents to our consultation on the Undertakings, there is a need to determine whether the Undertakings and Ofcom’s broader regulatory approach are delivering the outcomes they set out to deliver:

• As an intermediate step, effective, sustainable competition and incentives for timely and efficient investment; and
• As the ultimate goal, a communications market that delivers all the characteristics that business and residential consumers require, such as lower prices, choice and innovation.

1.4 We have engaged widely with stakeholders in assembling this statement. We held a workshop in November, to which a wide range of stakeholders, including both industry and consumer bodies, were invited. We have subsequently discussed key elements of the statement with a smaller group of stakeholders. In addition, we have engaged on an ongoing basis with both the Ofcom Consumer Panel and UKCTA.

1.5 This document describes the approach we will take to evaluating the outcomes of the Telecoms Review, including the anticipated timing of relevant publications. It lays out the framework for evaluation, a description of specific measures that will be used, the sources of data, and the timing of relevant publications.

1.6 We intend, in addition to the quarterly implementation reports on the Undertakings, which contain some elements of evaluation, to produce an annual report containing a broad set of metrics evaluating the impact of the Telecoms Review. This will be in parallel to the annual review of consumer outcomes proposed in our consultation on consumer policy (see Related Items).

1.7 In our final statement on the Telecoms Review, we said that we would conduct a review in a year’s time as to the efficacy and delivery of the Undertakings. The first annual report evaluating the impact of the Telecoms Review will also fulfil this purpose.

1.8 We may make changes to the evaluation approach in the future, particularly if relevant changes are proposed by stakeholders. If you would like to provide any comments, please contact William Hayter on william.hayter@ofcom.org.uk, or 020 7783 4197.

1.9 It should be noted that whilst the annual report evaluating the impact of the Undertakings and the Telecoms Review will examine whether or not BT has complied with the letter of the Undertakings, any statements will not be definitive. This is because Ofcom can only reach a definitive view of compliance by undertaking the full process of enforcement action. Any statements made by Ofcom will be based on the information currently before it and will not, and can not, prejudice the outcome of any enforcement action should a complaint be received or further information come to light.

The full document is available below:

• Evaluating the impact of the Strategic Review of Telecommunications [pdf]
  Full print version

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