Other noteworthy regulatory developments week ending 21 May 2021 from the Assembly Analyst team
In the EU, BEREC published its opinion on the review of the European Network and Information Security Directive (NIS). The EC’s proposal expands the scope of the Directive to include electronic communications services and networks. It also transfers the security provisions of the European Electronic Communications Code (EECC) to the NIS Directive. BEREC warns of a risk of fragmentation of the EECC, noting that the current approach to security in electronic communications has already proven its merit. BEREC also notes that the obligations for small providers may be disproportionate. The EC’s proposal will have to be discussed in the EU Council and Parliament, and it will take some time before a final text is agreed.
In the US, the Federal Trade Commission (FTC) and six states have sued the broadband provider Frontier Communications for providing misleading information about the speeds of its service. The FTC’s complaint highlights that, in practice, broadband speeds fell short of what was touted in the plans consumers purchased. The allegations relate to Frontier’s DSL service, which is provided to about 1.3m consumers across 25 states. The authority has received thousands of complaints since 2015, many of which state that the actual speeds do not support the online activities customers would have been able to perform at the speed that was sold to them.
In the UK, Openreach has published the first Draft Reference Offer for a regulated Dark Fibre Access (DFA) product, following Ofcom’s Wholesale Fixed Telecoms Market Review. This is the second time that Ofcom has required Openreach to introduce a regulated DFA product. Its previous effort in 2016 was thwarted by legal challenges, since Ofcom’s incorrect market definitions meant DFA would have been offered where market alternatives already existed. Openreach now has to provide DFA for the supply of leased lines/ethernet access in ‘area 3’ locations, i.e. non-competitive areas – currently about 30% of the country. Openreach plans to launch the service on 17 August 2021.
