Welsh Consumer Council Conference
Making it Happen: Consumer Policy in Wales
Cardiff City Hall | Thursday 7th July 2005 | 10.00am-4.30pm


Includes workshop session:

The Communications Agenda for Wales:
Delivering the Benefits for All

Workshop chair: John Wilson, Wales Broadband Stakeholder Group

Against a background of market and regulatory failure, post-devolution Wales is developing a proactive agenda for the new Digital Age. This workshop will explore the strategic agenda for the future. Our panel of experts will explore the key issues of technology, regulation and society, before the workshop focuses on what we need to do, how we can take it forward, and how we can deliver the benefits for all.

Panel:

• Michael Eaton, Director Broadband Wales, Welsh Assembly Government
• Rhodri Williams, Director, Ofcom Wales
• Charles Bass, Chair, Wales Broadband Stakeholder Group
• Dr Nich Pearson, Director, Welsh Consumer Council

See here for full conference programme and registration

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[In preparation for the above workshop, The Communications Agenda for Wales: Delivering the Benefits for All, I have put together the following notes]

LINKS: LOCATING A COMMUNICATIONS AGENDA FOR WALES

The following links highlight the engagements - vision, strategy, programme - of some key stakeholders in Wales. Followed by some recent Wales, UK and European policy developments. Together they provide a context for locating a communications agenda for Wales.

Will the traditional focus of consumer policy upon a user-centric view of the world find a fresh impetus in the digital world, with its promise of universal IP-based technologies, ubiquitous communications and user-centric products and services?

A critical challenge that emerges from this basic mapping of the policy landscape is the need for a convergence of policy agendas - across the government, industry and social spaces - to negotiate the ongoing convergence of digital technologies.

STAKEHOLDERS IN WALES

1 THE WELSH CONSUMER COUNCIL: COMMUNICATIONS POLICY
2 WELSH ASSEMBLY GOVERNMENT: BROADBAND WALES PROGRAMME
3 OFCOM WALES
4 WALES BROADBAND STAKEHOLDER GROUP

1 THE WELSH CONSUMER COUNCIL: COMMUNICATIONS POLICY

The Welsh Consumer Council has been monitoring the development and use
of the Internet in Wales since the late 1990s and remains an
enthusiastic supporter. The Internet can give the user more direct
access to information and services and has the potential to bring
services back to individuals and communities that have lost them.

We are currently working to ensure:
+ all consumers in Wales have access to ICT facilities that are
convenient and readily available, be it at home or elsewhere;
+ education campaigns focus more effectively on the features and
benefits of the Internet in order that those who are resistant to this
technology feel able to use publicly available services, when and if
they come to recognise a need;
+ the advantages of broadband Internet connections are widely promoted
to help encourage demand for such services and hence cheaper supply;
+ the growing number of services and facilities being provided via the
Internet does not ultimately result in those without access to this
technology becoming disadvantaged, both economically and socially.

More information here:

+ Welsh Consumer Council submission to the OFCOM Universal Service
Review 2005: here

2 WELSH ASSEMBLY GOVERNMENT: BROADBAND WALES PROGRAMME

+ Welsh Assembly website- Broadband Wales

+ Broadband Wales Programme Strategy 2005-2007 (January 2005): Full report here

Edited excerpts:

* Broadband Wales Programme Vision
An advanced and competitive broadband services infrastructure which supports and enables a Welsh knowledge economy to thrive and prosper.The Broadband Wales Programme will work with the private sector to provide affordable access to, and take up of, communications infrastructure for businesses, public sector, voluntary organisations, individuals and communities in Wales. Its goal is to ensure that Wales can compete effectively both on a National and International basis through the existence of advanced infrastructure, as well as being home to educated and aware people / businesses who take full advantage of what the new infrastructure enables.

* 2001-2004: Evolution of the Broadband Wales Programme:
The Broadband Wales Programmewas launched in July 2002 and was based on the 'Ubiquitous Broadband Infrastructure for Wales’ report (Prepared by Analysys for the Welsh Development Agency, July 2001) and a subsequent proposed Implementation Plan. The Programme was designed to address market failure and facilitate the roll out and take up of broadband throughout Wales – rural and urban areas. A Broadband Wales Unit was established within the Welsh Assembly Government (with joint working with the WDA broadband team) to deliver Programme targets by March 2007.

* 2005- 2007: The future direction of the Broadband Wales Programme:
In April 2004 a strategic review of the Broadband Wales Programme was announced, and subsequently undertaken by independent consultants. The review took account of the developments that have taken place in technology alongside the changes in provision of broadband since July 2002. It also considered whether the priorities of the Programme continued to reflect market conditions and looked at a variety of options for ensuring that Wales has access to modern broadband infrastructure. The review concluded that:
• Supply side projects of the Programme should focus on the stimulation of the wholesale broadband market;
• The Programme should be pan Wales and that some actions should be specifically targeted;
• Emerging technologies potentially offer new ways to nomadically use broadband;
• The Programme itself should anticipate changes in the organisation and funding of its projects to ensure it remains extant and up to date.

Executive Summary:

The five year Broadband Wales Programme began in July 2002 with high aspirations and a clear vision on where Wales needed to go in order to fully exploit the benefits that broadband can offer. It had ambitious targets, some of which have been achieved over 2 years ahead of schedule.

Since the Programme launched many things have happened – a new regulator has been created and mass market broadband is now available on a widespread basis. The telecommunications market has had its ‘ups and downs’ but is largely on an ‘up’ at present due to increased investor confidence and the prospect of emerging and exciting technologies coupled with fast growing demand for broadband from both the business and consumer sectors in Wales, and indeed, the UK.

This Strategy seeks to set further challenging targets to 2007 on both an incremental and aspirational basis. These will need to be achieved against an increasingly clearer policy position from the European Commission on state aid as it applies to broadband, Ofcom’s Strategic Review of Telecommunications and the imminent approach of spectrum trading. These coupled with telecommunications market volatility make the broadband Wales Programme exciting and yet challenging. Nevertheless, the Programme is something which is clearly an important component of Wales’s national economic development strategy as well as its strategy for improving public service delivery in Wales.

+ Ubiquitous Broadband Infrastructure for Wales: Status Review and Policy Recommendations (Prepared by Analysys for the Welsh Develpment Agency, July 2001)

"Widespread access to ICT is becoming increasingly important in today’s society, as an essential enabler of economic growth, social inclusion and efficient public sector services. Higher bandwidth telecommunications is an ever more crucial aspect of ICT infrastructure as usage of connectivity increases and as a convergence of content and of delivery technologies blurs the boundaries between broadcasting, publishing, and the Internet".

"A key concern in Wales, however, is that competitive supply of higher bandwidth services has tended to concentrate in the dense urban areas of the south east coastal strip, leaving the disadvantaged areas of the Valleys and rural Wales relatively underserved. This raises the prospect of a developing ‘digital divide’, with a lack of affordable higher bandwidth services leading to these areas falling further behind in terms of relative economic prosperity".


Full report here
Also available here

3 OFCOM WALES

+ Wales and Ofcom: A Report by an Advisory Group to the Minister for
Culture, Sport and the Welsh Language, Welsh Assembly Government, 27th March 2003: here

+ Ofcom advsory Committee for Wales

+ Ofcom Annual Report 2003 - 04

4 WALES BROADBAND STAKEHOLDER GROUP

Responses to Ofcom reviews in 2005:

+ Spectrum Framework Review
WBSG response
All responses

+ Spectrum Framework Review- Implementation Plan
WBSG response
All responses

+ USO review
WBSG response
All responses
CMA response (cites WBSG reponse)

SOME RECENT POLICY: WALES, UK, EUROPE

5 Consumers and the communications market: where we are now (Ofcom, April 2005)
6 Connecting the UK: the Digital Strategy (Strategy Unit and DTI, March 2005)
7 Rethinking the European ICT Agenda (Price Waterhouse Coopers, September 2004)

5 Consumers and the communications market: where we are now (Ofcom, April 2005).

The Ofcom Consumer Panel research report 'Consumers and the communications market: where we are now' along with key findings, plus focus documents on national and consumer segments.

This report details the findings from the market research project commissioned by the Consumer Panel into the current residential consumer and SME experience of the communications market. This will be an annual survey to assess changing consumer concerns year on year, and will be used by the Consumer Panel to inform its work in a number of areas.

The research focused on the residential consumer and SME experience of telecommunications (fixed and mobile), the internet (including broadband) and (for consumers only) broadcasting – including digital switchover – and use of technology.

The two key objectives for the research are to establish:

* What is the level of consumer knowledge regarding what is going on in the communications market and the choices/ alternatives they have now and will have in the future?

* What is the current consumer experience in the communications market?

+ Full report
+ Focus report on Wales: Ofcom Consumer Panel Research, Quantitative Research Findings, Focus on Wales (Saville Rositer-Base, April 2005)

Excerpts from Focus report on Wales: Ofcom Consumer Panel Research, Quantitative Research Findings, Focus on Wales (Saville Rositer-Base, April 2005)

Summary of key findings for consumers in Wales compared to UK

Understanding
•Less likely to have heard of broadband, digital radio and 3G
•Awareness and understanding of digital switchover does not differ from the UK as a whole

Keeping informed
•Less likely to keep informed of developments in communications technologies at all

Ownership, use and satisfaction
•Less likely to have mobile phone or internet at home
•More likely to have digital TV
•Less likely to access the internet at all
•Less likely overall to have ever switched suppliers for their home communications services
•Less likely to be dissatisfied with their home communications services
•More likely to have any difficulties using a TV, but no real difference regarding other technologies


6 Connecting the UK: the Digital Strategy (Strategy Unit and DTI, March 2005)

Government announcement on a Digital Strategy for the UK. From Prime Minister's Strategy Unit: The Strategy Unit led a cross departmental piece of work to establish a digital strategy for the UK.

Information and communication technology has become all pervasive in our working lives and increasingly in our homes as well. How we adopt and use this technology will be crucial for our future prosperity. But there is evidence of a digital divide with some groups largely excluded from benefiting from access to the internet.

This joint report with the Department of Trade and Industry sets out the digital strategy for the UK.

Source: Prime Minister's Strategy Unit

+ Read online here
+ Full report pdf download here
+ See press release by Intellect: Government and Industry Take Steps to Close the Digital Divide (1April 2005)

Report Contents:

Foreword by the Prime Minister and Secretary of State for Trade and Industry
Executive Summary
Chapter 1: A ‘digitally rich’ UK – progress to date
Chapter 2: The ‘digital divide’: problems with low take-up
Chapter 3: What is the rationale for Government intervention?
Chapter 4: How can we close the digital divide and become a world leader in digital excellence?

Raising our game: Making the UK a world leader in digital excellence
Action 1: Transform learning with ICT
Action 2: Set up a “Digital Challenge” for Local Authorities
Action 3: Making the UK the safest place to use the Internet
Action 4: Promote the creation of innovative broadband content
Constructing a robust strategy to achieve our vision
Action 5: Set out a strategy for transformation of delivery of key public services
Action 6: Ofcom sets out regulatory strategy
Tackling social exclusion & bridging the digital divide
Action 7: Improve accessibility to technology for the digitally excluded and ease of use for the disabled
Action 8: Review the digital divide in 2008
Annex A
Annex B

Executive Summary

1. In the last five years, we have made substantial progress towards our vision of a ‘digitally rich’ UK. Since 1999 there has been a transformation in the way the UK economy and civil society have embraced new technology and the UK has moved from bottom of the pack into the premiership of digital excellence. We have a world-leading position in digital TV. We have one of the most advanced and most competitive mobile phone markets in the world with 3G now starting to make a real impact. We implemented the EU telecoms framework rapidly and in full, and with the advent of Ofcom we remain the leader in regulatory – and deregulatory – innovation.

2. In broadband, we have gone from being a poor relation to having the most extensive – and one of the most competitive – broadband markets in the G7. By this summer, over 99% of the population will have broadband services available. Prices are falling and data speeds are increasing. In terms of competitiveness, the UK has maintained its third position overall, behind Japan and Canada.

3. However if the UK is to thrive in the future, to succeed in competitive markets and to enjoy better and better services, all of us need to be confident and comfortable, living and working in a digital world. Information and communication technology (ICT) has become all pervasive in our working lives and increasingly in our homes as well. How we adopt and use this technology will be crucial for our future prosperity.

4. We need therefore to create a country at ease in the digital world. Where all have the confidence to access the new and innovative services that are emerging, whether delivered by computer, mobile phone, digital television or any other device, and where we can do so in a safe and secure environment.

5. But there is still evidence of a digital divide with some groups largely excluded from benefiting from access to the Internet. But cost is not the only or even the main barrier to take-up. First, some individuals may not have the confidence or skills to use computers, even though they may actually want to get online. Others do not see the relevance of the Internet to their needs. They do not see how ICT and broadband particularly can transform their lives.

6. Government has a clear role in helping to promote and increase public awareness about the Internet and harness the economic and social returns in a way that benefits all society. We aim to make the UK a world leader in digital excellence with public services that are even more responsive, personalised and efficient than the leading companies that have so successfully deployed the Internet to serve their customers. We will help protect consumers from the dangers of the “darker side” of the digital world. We will use ICT to minimise social exclusion and ensure that the UK is the first nation to succeed in closing the digital divide.

7. In order to achieve this vision we need to harness the transformative power of ICT and to make the rewards of that transformation available to all by overcoming the barriers to take-up. The Government is therefore committed to taking the following action:

* The Government will ensure that ICT is embedded in education to improve the quality of learning experience for all, re-engage those who have been disaffected and equip children with skills increasingly essential in the workplace. All learners will have their own virtual learning space where they can store and access their work. We will also aim to give secondary school pupils – including those from low-income backgrounds – the opportunity to access ICT at home and ensure schools can buy equipment at the lowest possible prices through a national procurement scheme. As part of this scheme, we will aim to have anti-virus software, firewalls and parental controls installed as standard.

* The Government will launch, in collaboration with industry a “Digital Challenge” awarded to a local authority and its partners – both public and private – to establish by 2008 universal local access to advanced public services delivered through and powered by information technology. The winner will have the opportunity to demonstrate the ability to transform service delivery through a holistic use of technology to deliver truly modern services for modern citizens.

* The Government will work with the ICT industries to create the safest possible online environment. Backed by the police, charities and the industry, the Home Office will set up a multi-agency national Internet safety centre to deter criminals targeting the UK for Internet crime and reassure parents. We will work with the banking industry to make that sector a market leader in terms of online authentication. The Department of Trade and Industry will explore with industry how best to deal with unsuitable material, including more effective use of parental controls, firewalls and web blocking technology and to raise awareness on best practice in operating safely online.


* The Government will work to create the right environment for the creation of innovative broadband content. We will set out guidance on broadband content procurement by the public sector, informed by an industry perspective. We are already a leader on mobile and wireless technologies. We want the UK to be a world leader in allowing people to use or reach any content, with any device, anywhere, anytime. Content, whether as a business tool, for entertainment, a community portal, e-learning or generated by consumers themselves is the main driver for increasing the effective use of ICT.

* The Government will draw up a vision of public service delivery transformed by modern technology and a strategy for achieving that vision. As part of that strategy, the Government will consider how it moves its business to a wholly digital environment where it is appropriate and cost-effective. Private-sector services transformed by modern technology to give more choice, greater personalization, convenience and flexibility have become enormously popular. There is a real opportunity to transform public service delivery if government seizes the opportunity offered by effective use of modern information technology in a strategic way.

* The Government will ask Ofcom to take account of the prospects for home broadband take up, with a particular focus on uptake amongst the more disadvantaged. We will also ask Ofcom to monitor take up across social groupings and age bands to give a clear picture of the development of the market and the prospects for widening access to broadband technologies.

* The Government is committed to improving accessibility to technology for the digitally excluded and ease of use for the disabled.

* We will take further steps towards closing the digital divide by building on the network of UK Online centres and other communal access points – giving adult learners the support, incentives and skills they need to make the most of ICT. We will also ensure that every adult who enrols on a basic skills course is given an email account.

* We will assess any changes necessary to the Home Computing Initiative to make it more attractive to lower earners and to businesses to implement.

* We will give a clear commitment to ensuring that all government websites and online services present no barriers to use for those with disabilities. We will also raise awareness both in private and public sectors about these barriers.

* These measures will make substantial inroads in creating a more digitally inclusive society. We also expect the market to drive take-up and use, through the creation of new and innovative services, falling prices and awareness-raising. So the Government will review the position in 2008 in order to explore whether further action is necessary to close any residual digital divide.

8. The issues raised above are truly cross-departmental. Taken as a whole they go beyond the scope of any one department or the new e-Government Unit and even beyond government into the private sector. It is therefore important to establish a process or structure that drives forward the implementation of the digital strategy and reports on progress. Under Ministerial ownership, OGC and eGU will support DTI in determining the right structure to drive forward a programme to implement the strategy. This will include appropriate representation from government departments, No10, and other key stakeholders, for example, the Broadband Stakeholder Group.


7 Rethinking the European ICT Agenda (Price Waterhouse Coopers, September 2004)

Price Waterhouse Cooperswas commissioned by the Dutch EU Presidency to produce a report on Rethinking the European ICT Agenda: Ten ICT-breakthroughs for reaching the Lisbon goals.

Edited excerpts:

Now is the time for breakthroughs!

(...) Now is the time to think about the future. Now is the time for breakthroughs!

This report is tentative and provocative. It is meant to inspire you to re-think and revitalize the Lisbon agenda and especially the European ICT agenda (...)

Time is right to enter a new phase in the integration of ICT in our economy and society. From the period of roll out and installation of ICT-infrastructures and applications we are moving towards the phase of deployment. We have moved away from a technology-push approach and have emphasized the importance of now better reaping the benefits of ICT. Today, we are better connected than ever. But how can we use these connections to reach our goals? How should we transform the processes of production and distribution of goods and services to embed ICT in an effective way? How can we make a successful transition to a network economy and a knowledge-based society? Do we share a European culture as a foundation for a flowering EU content industry or for a fruitful exchange of knowledge, R&D and science? Can ICT provide us with the means to build a European community while retaining our national identities? (...)

ICT paradigm and global context

However, it is necessary to take account of the ICT paradigm of today and proven best practices in an international setting to achieve the best results in the future.

There are several countries that are very successful with their creation and implementation of ICT. The few that were investigated in this study: Korea, India, China, USA and Japan all outperform the EU in many respects. These countries have bold initiatives and dare to improve their position in the field of ICT with proactive industrial policies.

Europe too can be successful. Present policies are very useful but not instrumental enough to enable Europe to catch up with other economic powers.

10 potential breakthroughs

We have to reconsider the present policies to identify the issues that are obstructing further progress and consider further the breakthroughs that could be achieved. In this study we have identified ten of such potential breakthroughs.

Breakthrough 1: Shift the e-Business and e-Government policy from connectivity to taking up complex ICT applications
• A crucial condition for more economic growth is a broad deployment and use of ICT by enterprises and public institutions. Therefore the EU needs national strategies that focus on flanking investments in skills and organizational transformation. Special attention is needed for small and medium-sized enterprises.


Breakthrough 2: Standardize ICT environments in Europe to trigger and enable new business
• Standardization is a prerequisite for a broad deployment and use of ICT, and will trigger and enable new business. Pan-European interoperable solutions for electronic authentication and electronic payments are needed to boost innovation and economic growth significantly


Breakthrough 3: Accelerate the introduction of disruptive technologies
• The speed with which new technologies are accepted and put to work has a serious impact on economic growth. The EU needs to play a key role by accelerating the introduction of new (disruptive) technologies like smart tags and Voice-over IP.


Breakthrough 4: Realize the vision of "any content, any time, anywhere, any platform"
• Content is considered an important engine for future economic growth and employment. The EU needs to fuel this engine by realizing the vision of 'any content, anytime, anywhere, any platform' by e.g. introducting multiplatform access for content producers and new digital rights management regimes.


Breakthrough 5: Go for global platform leadership in the ICT industry
• An excellent and competitive European ICT industry is a crucial condition for economic growth and employment. The EU needs to define a strategy towards global leadership in specific areas, for example by stimulating a (new) European standards policy (in cooperation with the market) and making an explicit choice for e.g. the future of 3G mobile telecom in Europe.

Breakthrough 6: Develop a strategic response to job migration to low-wage countries
• Economic growth and employment can be seriously affected by the accelerated job migration to low-wage countries. The EU needs to develop a strategic response.

Breakthrough 7: Remove barriers for the development of an innovating European electronic communications sector
• The electronic communications sector is a proven source for economic growth and employment. The EU needs to anticipate in an early stage the barriers for investments in next generation networks.

Breakthrough 8: Move to a new and flexible model of spectrum innovation
• The spectrum is one of the major battlefields for innovation and new business. Modernization of spectrum policies will have a large economic impact. Therefore the EU urgently needs to make its rigid spectrum allocation model flexible.

Breakthrough 9: Enforce real solutions for consumer confidence and security
• A crucial condition for a broad deployment and use of ICT by business and consumers is user confidence. Therefore the EU needs to enforce structural solutions for viruses and spam by creating liabilities, give priority to cybercrime within law enforcement and ensure the availability of critical infrastructures.


Breakthrough 10: Shift e-inclusion policy from "access for all" to "skills for all"
• A crucial step for a broad deployment and use of ICT by consumers is that Europe's e-Inclusion policy does not only focus on broadband access, but also on the skills Europeans need to participate in the information society. Therefore the EU needs to redefine the current universal service obligation and adopt strategies for improving ICT skills.


Full Report Rethinking the European ICT Agenda (Price Waterhouse Coopers, September 2004)