The UK’s DSIT highlights the success of Open Banking as it looks to bolster consumer protection measures
Government seeks input on three key issues
On 18 September 2023, the UK Government’s Department for Science, Innovation and Technology (DSIT) launched a consultation on the potential introduction of a smart data scheme – referred to as 'Open Communications' – into the country’s telecoms market. If taken forward, Open Communications would require operators to provide their customers (on request) with data about their broadband or mobile service, for example the price they pay, their download speeds and their data usage. Through this consultation, DSIT wants to better understand the possible benefits and challenges of implementing such a scheme, and is inviting feedback on three core issues:
The organisations that should participate;
The data that should be made available; and
How data should be shared with consumers.
Concerns that the market has become difficult to navigate
In particular, DSIT is seeking evidence on the extent to which an Open Communications scheme may encourage consumer engagement in the market, the potential resource costs for telecoms providers and how it may impact competition more broadly. According to Michelle Donelan, Secretary of State, it is crucial that the sector remains competitive, accessible and that consumers can sign-up for the services they need at prices they can afford. However, she is concerned that the rapid pace of technological change in connectivity services, and the bundling of these products, may have made the telecoms market difficult to navigate for some people. DSIT is therefore exploring whether smart data would help ensure consumers are better informed, so they can identify the mobile and broadband plans that most closely suit their needs and budgets.
A mixed response so far from industry
DSIT considers that Open Communications could complement existing interventions, filling the gap between end-of-contract notifications (introduced by Ofcom in 2020), and the existing mobile and soon to be launched fixed broadband One Touch Switch process, expected in 2024. It points to Open Banking, another data portability initiative, as a successful example of how unlocking data can stimulate investment and innovation in new digital services. Nevertheless, the Government’s smart data proposal has not been universally well-received, with Mobile UK (the trade association for the country’s mobile network operators) already indicating at the Connected Britain conference that it would not be responding favourably. Open Communications could also be seen as adding to the regulatory burden for industry – something the current phase of Ofcom’s consumer protection work intended to avoid. The consultation closes on 13 November but may not be the only call for inputs published, with DSIT signposting that it may seek views on issues such as funding, administration and privacy and security standards.
