Ofcom consultation – future approach to mobile spectrum  

Ofcom is currently running a consultation on the ‘future approach to mobile spectrum’ and have issued two papers for reference. 

Ofcom’s future approach to mobile markets A discussion paper

https://www.ofcom.org.uk/__data/assets/pdf_file/0027/231876/mobile-strategydiscussion.pdf  

Mobile networks and spectrum Meeting future demand for mobile

data https://www.ofcom.org.uk/__data/assets/pdf_file/0017/232082/mobile-spectrumdemand-discussion-paper.pdf  

In recent years the mobile market has been driven by competition among four mobile network operators (MNOs). But increasingly, mobile networks are just part of the range of different wireless technologies people use to meet their needs at different times, whether that’s using Wi-Fi at home or work, or mobile networks when we are on the go. In future, Ofcom expect to see an increased role for other companies in providing networks, selling mobile internet access and providing online services and this consultation will assess how well the market might work for people and businesses, and consider whether and how to adapt the regulatory approach going forward. 

FCS has reviewed this consultation content and is keen to emphasise the following points in our response:

1. FCS feel it’s not just mobile to mobile MNO mergers that needs to be considered but mobile to fixed as well as we move towards an All-IP environment. IP connectivity will be key going forward and FCS believes infrastructure being separated out (from retail/wholesale business arms of the large providers) will aid competition and stimulate growth (as the Openreach/BT model for WLR has proven).
2. On network neutrality, FCS believes that no operator/service provider should be able to block or deprioritise service on fixed/mobile/wireless networks (as the FCS response to the separate Ofcom Network Neutrality consultation, makes clear).
3. FCS strongly feel that the Regulatory environment should require the separation of infrastructure and the retail/wholesale elements for the larger vertically integrated suppliers. When mergers/acquisitions/consolidations occur, customers tend to stay with their supplier, which has the potential to act as an advantage for monopoly activities. Going forward, infrastructure will carry All-IP, over fixed, mobile and wireless mediums, therefore FCS feels it is important that Ofcom carefully considers and establishes how competition will work in the new All-IP environment. Ofcom General Conditions can then be revised to promote and support the consolidated fixed/mobile/wireless infrastructure operation for the benefit of UKplc. Consideration should also be given to the consolidation system requirements, that will be required going forward to support an All-IP network I.e. One Touch Switching, Number Porting, Messaging, and Central Data Base linkage.
4. FCS feel that the Hyperscalers (such as Amazon, Google and Microsoft) should be recognised as common providers with revised GCs applied appropriately to these type of VoIP suppliers. ‘Over The Top’ services and Security could then be reviewed ensuring that appropriate overheads can be applied to these companies (at present CPs/our FCS members for example fund hyperscalers overheads).
5. Ofcom states that it is currently carrying out further research into small businesses’ experience with the communications market. FCS is pleased that Ofcom is carrying out this research and is keen to engage and provide any required input going forward.
6. FCS believe that private mobile networks (wireless connectivity) built by operators and then connected into the generic fixed/mobile networks should be included in the infrastructure separation from retail argument.
7. FCS believes that Fixed Wireless Access (FWA), which in future will only carry IP services, should be classified as infrastructure (one example of this is EE connecting to the BT network) and in future should be separated from Retail/Wholesale arms of larger providers.
8. In future, FCS is keen that any infrastructue/network is ‘open access’. Businesses (FCS members) use ‘open access’ infrastructure to provide services, increase productivity and to the benefit of UKplc. Historically opening access for WLR, drove competition, growth, more investment and benefitted UKplc, providing evidence that ‘open access’ is a successful model for the UKplc going forward.
9. Ofcom cover passive sharing of infrastructure in this consultation but FCS questions whether ‘active sharing’ should be considered, while accepting there will be commercial challenges. There are instances where active sharing could benefit UKplc i.e. roaming in the UK (sharing agreements) to avoid multiple suppliers wasting capital providing access to limited geographic areas where take up will potentially be low. As long as infrastructure arms are separate from retail arms (as per the current BT/Openreach model) this could potentially work effectively.
10. FCS feel that any consolidation of the mobile operators must force a proper Wholesale offer being made available without having to go down an MVNO route.
11. The changes in technology going forward will ultimately mean that mobile operators will be providing a data only network (5G, IP voice etc). On this basis illogical separation of assets like mobile and fixed numbers should be removed.
12. Mobile operators should be obligated to work with the emerging IP voice networks to provide full interoperability, enabling SMS to be used across all network and number types.
13. FCS supports a removal of the Mobile Phone levy which (currently) means that all non-mobile operators subsidise the discounts that the mobile operators give to their own users. The mobile networks should not be subsidised and should charge all of their users the correct price for their services. 

If members have any other thoughts or input they would like considered for inclusion in our proposed response, please let us know on fcs@fcs.org.uk.