Peter Phillips, partner for strategy and market developments at Ofcom, told the Westminster eForum seminar on the Government's vision for Digital Britain that the ‘speed at which the market is changing means there are things outside our remit'. He said that creating consumer incentives for taking up broadband and improving access to digital services were ‘issues for Government'.
The seminar was held as the Government finalises its Digital Britain report on the development of digital media. The Minister for Communications, Technology and Broadcasting, Stephen Carter, described the digital communications sector as ‘a rare ray of light in a gloomy sky'. He said there was an ‘opportunity for a change' in the framework for digital services such as broadband, mobile and fixed line services, online video and digital radio as the communications sector is ‘at a turning point'.
Ofcom's Phillips said that there were certain issues such as rights protection and protection of children online which would be better agreed as voluntary codes of conduct. But he said Ofcom needed a ‘clear visionary framework from the Government' on its digital priorities.
He warned that take up of broadband by the 40% of people who don't have broadband would not be solved by a single thing, but consumers would need ‘relevant and comprehensive' information about contracts, bundling choices and their rights. ‘Consumers need to be encouraged to consider their options, not signed up by default'.
Speakers at the conference highlighted the need for regulators and industry to help consumers cope with more complex digital purchasing decisions.
But Carolyn McCall, chief executive of the Guardian Media Group, highlighted the challenges that content providers also face in the digital world. She called for incentives for commercial players to continue to invest in content when value was ‘flowing away' from creative companies towards Google, which takes half of the online ad revenues.
BBC director of policy and strategy John Tate said content owners had to ‘demand stimulation' for digital services rather than rely on the money coming in. He pointed to the BBC's plans to bring a broadcast standard IP service for the television - in a plan named Project Canvas, the BBC has teamed up with ITV to plan a Freeview broadband service. He claimed the BBC was taking ‘forward thinking approach' by taking on-demand content to the TV set.
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