A Look Forward to 2016 in Telecoms

There’s no doubt that it’s going to be a fascinating year for the telecoms industry further into 2016 and beyond. With the UK’s communications regulators, Ofcom, poised to make some dramatic decisions that will force an impact on businesses for a long time into the future.

Regulating fixed line telecoms and mobiles, as well as the airwaves in which wireless devices are operated, Ofcom are facing a barrage of opposition from some of the world’s leading telecom suppliers in respect of the changes they want to implement across the telecoms industry.

In short, Ofcom have been reviewing whether BT and Openreach should be run as separate entities. Having already put this in place over in New Zealand, other telecoms operators have reported that this move has completely changed the market around.

Head of BT, Gavin Patterson, has made threats to take legal action against Ofcom should it make a final decision to pull Openreach away from BT, while the government is said to be unconvinced that such a measure will aid the industry, despite the obvious success overseas.

Looking in from the outside, there’s really only four options that Ofcom can pursuit in this matter, and while Sharon White, head of Ofcom, has indicated that keeping things just as they are is unlikely, the vigorous resistance from BT is perhaps leading the regulators looking for an alternative solution.

Other than maintaining the status quo or breaking the ties between BT and Openreach, Ofcom are making serious considerations into adjusting the existing system, making way for better services to the end customer, with repairs being carried out as well as the laying down of new and superfast lines. Alternatively, Ofcom are suggesting that more deregulation could be the answer. However, as a consumer, I know which decision I’d be more inclined to side with.

A second, and quite dramatic change to the telecoms industry that is due to take place this year, comes in the shape of mergers and acquisitions; BT will take possession of EE at some point in the year, while there are talks of a feasible merger between the telecom giants that are O2 and 3. Of course, Ofcom’s established stance on the matter says there need to be four suppliers, however, if these transactions take place, the telecoms market will only have three, and with other virtual network suppliers such as Sainsbury’s opting to ditch the telecoms market entirely, the choice for the end user is quickly dwindling.

The telecoms industry, as a whole, will have no choice but to respond accordingly to the changes that are going to take place this year, and these points outlined above are just the tip of the iceberg. With Ofcom wanting to bring an end to sharp practises in the UK this year, a positive clamp down for the consumer is on its way.

Looking further ahead, the EU has also administered an end to roaming charges as of 2017, which is great news for the consumer.

On balance, the telecoms industry is set for some major changes over the coming months, changes that could, potentially, mean better services for business and individuals across the UK. Time will tell.