The ticking bomb inside Ofcom

Eleven days before Christmas, Ofcom published its draft Annual Plan for 2006/7 and comments are requested on the consultation document by 10 February. I don’t imagine that many observers took time away from turkey and television to study the document but, buried away in the text, there is an issue that threatens to change the whole nature of communications regulation and with it the role of Ofcom itself.

Put simply, the issue is this: what happens when the heavily regulated world of broadcasting collides with the virtually unregulated world of the Internet? Of course, it is already happening under the buzz word ‘convergence’ and through developments like video on demand and IP television. It is already being discussed, especially in the context of the European Commission’s wish to extend the scope of the Television Without Frontiers Directive. But, so far it has not seriously changed the regulatory framework and we can still just about keep our heads down and think that this is still really a debate for the future.

Of course, colleagues at Ofcom are well aware of the challenge which is why, in the draft Annual Plan, we find the subject identified under the innocuous-sounding theme of “Analysing the evolution of digital multimedia platforms”. What does this mean?

The objectives of Ofcom’s work are specified as:

• Develop a framework to address the emerging regulatory and policy challenges resulting from developments in digital platforms and services
• Analyse content delivery across different platforms, business models, consumer demand and options for regulation
• Promote consumer awareness and understanding of rules surrounding different types of content through media literacy initiatives
• Enable consumers to take responsibility for what they view and listen to on different platforms
• Consider changes to the guidance on the Codes of Practice that public service broadcasters must use to negotiate terms of trade with independent producers

The desired outcomes of Ofcom’s thinking are set out as:

• Publish consultation paper to facilitate a wide-ranging public debate about future developments and regulatory implications, which will address:
  • Whether the current model of regulating broadcast content is sustainable
  • Whether a consistent or platform- neutral approach is desirable, or indeed practical
  • How consumer protection can be balanced against the need to protect the rights of others
  • The extent to which citizens and consumers will be able to control access to content themselves
  • What regulatory model might be adopted for content navigation and search tools, including labelling standards
  • The role of Ofcom vis-�-vis government and other regulatory bodies
• Ensure a media literacy element in all relevant content and technology publications

Now this is all splendid – but haven’t we been here before? The current Ofcom Annual Plan for 2005/6 has a section on a review of digital multimedia platforms. This states:

“The purpose of this review will be to ensure that Ofcom understands likely developments in digital platforms and services and produces a framework to address the emerging policy challenges, including content delivery across different platforms, business models and consumer demand.

We hope this review will facilitate a wide-ranging public debate about the future development of content and the implications for regulation, if any. It will also help inform our contribution to the EU�s review of the Television Without Frontiers Directive. The review will address important questions such as:
� whether the current model of regulating broadcasting content is sustainable;
� whether a consistent or platform-neutral approach to content regulation, looking beyond traditional broadcasting, is desirable or indeed practicable;
� how consumer protection can be balanced against the need to protect the rights of others;
� the extent to which citizens and consumers will be able to control access to content themselves using tools such as parental controls; and
� what is the role of Ofcom vis-�-vis Government and other regulatory bodies.”

Sound familiar? The trouble is that, unless I’ve missed it, I haven’t seen this work. Now Ofcom has had a fantastically busy 12 months and one can well understand why something as urgent as the agreement on BT undertakings will take precedence over a think piece on the future of convergence – but meanwhile technology and markets march on and companies and consumers are looking for some guidance.

I certainly don’t have the answers, but I will be outlining some suggested directions of travel when I give a presentation next Friday to a lunchtime meeting of Ofcom staff on the theme of “The Regulation Of The Internet”.