Sky has submitted its response to Ofcom’s Strategic Review of Digital Communications.
In an executive summary of the response, the broadcaster says it welcomes the review and that Ofcom should approach it “with vision, imagination and an open mind”. The review’s purpose should not be to confirm the merits of the status quo, or to search for potential minor adjustments in course.
Sky adds that it sees the review as an “excellent opportunity” to step back from ‘business as usual’ and to find out what is and isn’t working in the sector.
It also identifies a growing list of concerns, shared by a wide range of communications providers, consumers and politicians. These include the increasing dominance of high-speed broadband services by BT; the inadequate quality of service delivered by Openreach; and the level and type of investment in the UK’s fixed line communications infrastructure.
In its view BT’s integration lies at the heart of these issues.
Sky also says that the fundamental question for Ofcom’s review is whether the problems that have been identified merit a reference to the Competition and Markets Authority (“CMA”) for a market investigation.
Above all, Ofcom should consult on making a market investigation reference (MIR).
Significantly, Sky adds that, “what Ofcom’s review should not become is a debate about whether or not BT should be structurally separated”.
At the same time, it “appreciates that Ofcom will wish to consider, at least at a high level, the issues associated with a potential structural separation of BT”.
Sky says that BT’s opposition to separation is without merit and that it is not necessary for Ofcom to reach a definitive view on the merits of a separation.
It also says there is a “clear and urgent need for a strengthening via regulation of the independence of Openreach from BT, in the interests of all its major customers.
Sky adds: “Similarly, regardless of what happens in relation to these major questions raised by the review, there will be a continuing need for effective regulation by Ofcom in a range of areas, particularly where BT retains significant market power”.
Sky also provides the following quote from Mai Fyfield, its chief strategy officer, from a recent blog. In it, she said: “The outcome of this review is incredibly important for everyone in the UK. It is a once in a decade opportunity to make sure that the UK benefits from a network that can meet the ever growing demands for better and faster broadband”.
