No significant change in policy direction, but instead a commitment to enhanced monitoring and enforcement
Acknowledging challenges on the horizon: Following publication of two discussion papers back in February 2022, Ofcom has published its conclusions on its future approach to mobile markets and the role of spectrum in their development. As demands for data and bandwidth-hungry services continue to rise, Ofcom will be seeking to develop better information on network quality to help consumers make informed decisions. The regulator will also move to a new phase of its consumer protection work centred on delivering and enforcing fairness, with its recently announced review into in-contract price rises a representation of that. Without proposing any specific interventions at this stage (nor a significant change in policy direction), Ofcom intends to closely monitor how well mobile markets operate as they evolve (and with tech firms and towercos both presenting potential challenges for operators and competition), stepping in to correct failures where necessary.
Spectrum may not always be awarded nationally: Ofcom expects that technology upgrades and (costly) site densification, including the use of mmWave spectrum and small cells, could represent a step change in how operators manage their networks and help to provide additional capacity. To support industry investment and meet customer needs, Ofcom will determine where and when additional spectrum may be needed, while taking other competing uses into account. It will remain open minded about allocating further spectrum for mobile use, stating that any option it considers may not mean assigning nationwide licences. The regulator notes that future use of the upper 6GHz band is seeing “intense and competing industry interest” ahead of its discussion at WRC-23. Ofcom sees benefits in the band’s application to either mobile or Wi-Fi, and its ‘no change’ position at the conference means that it will have the flexibility to make an assignment either way depending on how the market develops.
Ofcom remains tight-lipped on consolidation: It’s Ofcom’s view that the essential nature of connectivity means the commercial incentives exist for operators to continue investing in their networks, particularly where data usage is high. While Ofcom acknowledges that the uncertainty presented by the current economic climate could risk slowing 5G deployments, it said nothing that might be seen as supportive of consolidation – something some operators consider vital to sustaining ongoing capex programmes. The regulator does, however, highlight the wider societal benefits that 5G might deliver (something DCMS is also considering in parallel as part of its Wireless Infrastructure Strategy), such as lower greenhouse gas emissions or greater inclusion among certain vulnerable groups. It remains to be seen the extent to which such outcomes would be considered should two mobile operators announce their proposal to merge.
