Ofcom has spelled out how it intends to use its powers under the Online Safety Act – and it plans to take a tougher stance with big tech.

The Online Safety Act applies to search firms and services that allow users to post content online or to interact with each other - everything from social media and consumer cloud storage and sharing sites to online forums and dating services.

It gives them new duties to put systems and processes in place to reduce the risk that their services are used for illegal activity, and to take down illegal content when it does appear.

Under the Act, Ofcom has the legal power to access information held by regulated companies and third parties, and said it will carefully scrutinize how effective tech firms’ safety measures are.

It will also demand data where it has specific concerns that the rules aren’t being followed.

This could include the power to remotely inspect how a platform’s algorithm works in real time, and the regulator said it will hold organizations to account over what they recommend to users, particularly children.

"As well as requesting information and data, we are also able to carry out an audit of a tech firm’s safety measures and features," said Ofcom.

"In exceptional cases, we can enter the UK premises of tech companies to access information they hold and examine their equipment."

It may do this in order to assess whether a provider is complying with the rules, or, if it isn't, to assess the nature and level of risk.

Ofcom eyes flexibility with new guidance

Ofcom said in the new guidance that it will try to be flexible, and that when deciding whether to disclose information it will carefully balance the need against any concerns or objections.

However, if tech firms fail to comply with a request for information in an accurate, complete, and timely way, there will be consequences - some very serious - Ofcom warned.

They could, for example, face fines of up to £18 million or 10% of their worldwide revenue, whichever is higher.

In the most extreme cases, there could be criminal liability for individual executives for breaches such as knowingly or recklessly providing false information, failing to provide information, or failing to take all reasonable steps to prevent other information offences.

Last year, Ofcom fined TikTok under separate rules governing video-sharing platforms, for failing to respond to a request for information about its parental controls.

Meanwhile it's currently investigating OnlyFans' compliance with the Act, through a request for information.

What to expect from the Ofcom rules

The new guidance is effective immediately. The act applies to sites and apps that publish user-made content to other users, as well as large search engines – covering more than 100,000 online services.

Under the act, firms will be required to nominate a senior executive to be accountable for compliance; have properly staffed and funded moderation teams that can swiftly remove illegal material, and implement robust testing of algorithms – which curate what users see on their feeds – to make it harder for illegal material to spread.

Similarly, organizations will be obligated to remove accounts operated by - or behalf of - terrorist groups.

Tech platforms are also expected to operate “easy to find” tools for making content complaints which acknowledge receiving a complaint and indicate when it will be dealt with.

The biggest platforms are expected to give users options to block and mute other accounts on the platform, along with the option to disable comments.

MORE FROM ITPRO

• Everything you need to know about Ofcom's cloud competition probe
• How the Online Safety Act affects end-to-end encryption
• Ofcom is being thrown under the bus with the Online Safety Act

UK businesses lost more than 50 million hours in internet downtime last year, resulting in over £3.7 billion in losses.

According to a report from specialist business ISP Beaming, there were 8.8 million internet failures over the year. And while that marks a decrease on the 60 million hours lost to downtime in 2018, costs have risen fourfold from £742 million.

"Greater use of faster, stronger, more resilient forms of connectivity has helped reduce downtime, whilst downtime has become much more costly," said Sonia Blizzard, managing director of Beaming.

"Good planning, higher capacity services and expert support are vital now to reduce the risk of internet failure and the associated financial fallout."

Businesses are more dependent on internet access than they were in 2018, and four-in-ten now say they'd lose money in an eight-hour internet outage, up from a third in 2018.

SMBs bore the brunt of internet disruptions in 2023, with an average of three to four failures and 19 hours of downtime each. Those working a standard eight-hour day and five-day week, Beaming said, lose more than two working days a year to downtime, equivalent to around 1% of their productive time.

The hospitality, IT, and manufacturing sectors experienced the highest levels of internet downtime, and also saw the biggest financial impact. On average, hospitality businesses lost 27 hours to downtime in 2023, while companies in the IT industry lost around £555 million to connectivity failures.

"The adoption of digital technologies has been a lifeline for business survival and a driver for increased prosperity in recent years, but this has come with a heightened dependence on connectivity," Blizzard said.

"Companies are demanding more of their connectivity than ever before, and those relying on e-commerce, automation and public cloud services then incur the highest costs due to internet downtime."

Recent research from Uswitch found that Southampton was hit the hardest by broadband outages between summer 2022 and summer 2023, with an average of 63.2 hours online lost over the year. Londoners, meanwhile, lost just 13.5 hours.

"Despite major price increases earlier in the year, if anything, the issue of broadband outages appears to be getting worse," said Uswitch broadband expert Ernest Doku.

In a survey last year, altnet provider Neos Networks found that one in every five UK businesses is receiving inadequate broadband speeds. More than one-in-ten said this was affecting their profitability, and almost all said it affected their productivity, staff retention, or client collaboration.

Last December, the government issued an update on its £5 billion Project Gigabit program to deliver high-speed broadband to the whole of the UK. It said that eight-in-ten UK premises can now access a gigabit-capable network, with Ofcom forecasting the figure to hit around 90% by May 2025.

UK regulator Ofcom has published its first draft codes of practice in the wake of the Online Safety Act gaining Royal Assent as the regulator looks to tackle harmful online content. 

The draft codes unveiled by Ofcom seek to crack down on illegal content distributed online. This includes terrorist or extremist content, as well as child abuse and fraudulent content. 

Technology secretary Michelle Donelan said the new rules will obligate online businesses, such as social media firms, to address long-standing issues around harmful materials online. 

"Before the Bill became law, we worked with Ofcom to make sure they could act swiftly to tackle the most harmful illegal content first," she said. 

"By working with companies to set out how they can comply with these duties, the first of their kind anywhere in the world, the process of implementation starts today."

Ofcom research shows that three-in-five children in secondary school have been contacted online in a way that made them feel uncomfortable. The new rules propose introducing measures to control friend requests on social media platforms, for example. 

'Larger and higher-risk services' should not present children with lists of suggested friends; children shouldn't appear as suggested friends; they shouldn't be visible in other users' connection lists; and their own connection lists shouldn't be visible.

Accounts outside a child’s connection list should not be able to send them direct messages, and their location information shouldn't be visible to anybody else.

Meanwhile, these larger platforms should use hash matching to check for child sexual abuse material (CSAM) against a database of illegal images, and use automated tools to detect URLs that have been identified as hosting CSAM. 

All services should block accounts run by banned terrorist organizations.

With regard to fraudulent content, services should use keyword detection to find and remove posts linked to the sale of stolen credentials, such as credit card details. 

Under the new guidelines, services that offer to verify accounts will also be forced to explain how they do it.

Ofcom’s move receives industry approval

Industry stakeholders such as Which? have given their seal of approval for the move. The consumer rights group said the new guidelines will force online businesses to adhere to more stringent rules and protect users. 

"The Online Safety Act becoming law is a vital moment in the fight back against fraud," said director of policy and advocacy Rocio Concha.

"It should force tech giants to take more responsibility for tackling fraudulent adverts on their platforms, and it is positive Ofcom is progressing with the regulatory codes so quickly to make this happen."

The codes also include a series of requirements already laid out in the Online Safety Act. All services will have to name somebody responsible for compliance with their duties on illegal content, reporting and complaints.

Content and search moderation teams must be well resourced and trained, performance targets must be set, and progress monitored, Ofcom said. 

In addition,  the regulator will require organizations to draft and implement policies on how content is reviewed to ensure transparency. 

Ofcom seeks user-led feedback

A key aspect of the new rules highlighted by Ofcom was the desire to ensure user-led feedback and reporting of harmful content. 

Users will be entitled to report harmful content to businesses in an easy manner, the regulator said. This includes making complaints, blocking other users on social media sites, and the ability to disable comments on posts. 

The new code of conduct is now up for consultation and expected to come into force at the end of 2024. Ofcom said it will propose guidance on how adult sites should make sure children can't access pornographic content later this year. 

In spring 2024, it will also launch a consultation on more protections for children from harmful content such as suicide, self-harm, eating disorders and cyber bullying. 

Ofcom has issued an update on net neutrality guidance giving network operators more flexibility to offer tiered services, but dismissing the idea that big tech should be contributing to network costs.

In a new report examining the current state of net neutrality rules in the UK, the telecoms regulation said current rules are working well but that updated guidance will provide telcos with greater clarity on the matter. 

"The net neutrality rules are designed to constrain the activities of broadband and mobile providers; however, they could also be restricting their ability to develop new services and manage their networks efficiently," said Selina Chadha, Ofcom’s director of connectivity.

"We want to make sure they can also innovate, alongside those developing new content and services, and protect their networks when traffic levels might push networks to their limits."

In line with this, Ofcom said broadband and mobile providers can offer premium quality retail broadband or mobile packages - for example, to support gaming applications that need low latency - and develop new specialized services for applications such as remote surgery and driverless cars

At present, they're allowed to use traffic management measures to avoid congestion over their networks at peak times. Similarly, in most circumstances, telcos can offer ‘zero-rating’ packages through which users aren't charged for accessing certain content or services, such as public health advice from the NHS.

Big tech won't be paying

However, resisting industry demands, Ofcom said it hasn't seen sufficient evidence that broadband and mobile providers should be able to charge content providers for carrying their traffic, pointing out that this would require a change in the law.

The move has been broadly welcomed by the industry, with Mobile UK, the trade association for the UK’s four mobile network operators, saying that it should improve the investment outlook for British telcos and the online market more generally.

Telcos, it said, would have greater freedom to create innovative packages and services.

However, Mobile UK did raise concerns over Ofcom's refusal to recommend big tech should be forced to contribute financially to network maintenance. 

"As Ofcom acknowledged during its consultation, they are constrained by the law and this was as far as they could go within existing rules," said chief executive Hamish MacLeod.

"We now ask the government to remove the regulations which are hindering investment and innovation, and replace them with a principles-based code which protects basic freedoms but promotes innovation."

BT described Ofcom's statement as a step in the right direction and welcomed the move. The telecoms giant said the decision will enable operators to manage congestion more effectively in the event of major events or disruptions. 

"At present, we build our network to accommodate these extraordinarily high peaks (despite them being occasional and often very short duration) to avoid a poor customer experience," it says in a statement. 

"But that’s akin to investing in an extra 10 motorway lanes only to see them used by bank holiday traffic just a few times a year." 

BT added that telcos should be allowed to negotiate with content providers in specific circumstances, however. Otherwise, it warned that the challenges of meeting growing demand will “remain reliant on telcos funding endless capacity upgrades”.

While the concept of net neutrality has slipped under the radar in the UK so far, the topic has been highly divisive in the US. 

There have been concerns that removing regulation allows providers to prioritize or demote traffic to different platforms, apps, and websites purely for their own commercial advantage. 

Donald Trump declared it an issue for the free market to resolve and abolished the rules - only for the Federal Communications Commission to announce earlier this month that they should be reinstated.

Experts have urged the UK government to rethink the "tremendous" financial burden placed on network operators in the current economic landscape.

Mobile network operators (MNOs) are currently facing steep costs from a number of different angles, including the data cost of big tech companies, regulatory fees, and national security mandates like the decision to remove Huawei from national 5G infrastructure.

Speaking at a Westminster eForum event, the panel of experts from throughout the sector identified a range of areas which the government could look to overhaul in order to improve business for UK telcos, and by extension boost services for businesses and consumers.

“This is probably a government position, maybe a security position, but there is a tremendous cost to the MNOs,” said Danny Preiskel, senior partner at Preiskel & Co

“It doesn’t seem right to me that MNOs should bear the full cost of this decision.”

The decision to ban Huawei came in 2020, a year after the first 5G networks opened in the UK, and was expected to delay rollout by up to two years.

At the time, a Mobile UK study indicated that the cost to the economy could be £7 billion, and MNOs were threatened with fines of £100,000 or 10% of turnover per day for failing to meet targets.

“The existing market structure is dysfunctional," said Stephen Lerner, general counsel and regulatory affairs director at Three UK. "The market should be allowed to restructure itself, it doesn’t deliver for customer or business ambitions. MNO returns are too low."

In recent months, MNOs have also argued that big tech companies account for a disproportionate share of network traffic to generate their profits, and that they should make set contributions to support infrastructure expansion. Social media firms such as Google and Meta have been particularly criticised.

The fair share argument has gained traction in the EU over the past few months, and the panellists acknowledged that the topic dominated Mobile World Congress in Barcelona.

Various European telcos have urged officials to ensure that big tech companies pay to support the traffic expansion on which they rely.

On 23 February, the European Commission opened an exploratory consultation on the potential for “all players benefitting from the digital transformation to fairly contribute to the required investments”.

“I think that whether it will happen or not, obviously very much remains to be seen," said James Robinson, senior analyst at Assembly Research. "At the moment, the commission has issued this exploratory consultation on the future of the industry.

“The telecoms industry needs to respond to the consultation with a compelling argument for how you would implement fair share and practice, whether it’s direct payments to telcos and then who is responsible for facilitating that? Or you could go down the route of a universal service obligation, with a fund set up as the primary mechanism to receive payments from tech firms.”

Wider financial issues

Annual licence fees (ALFs) were another government requirement that panellists singled out as unfairly limiting competition in the communications market.

First introduced in January 2022, ALFs replaced the fixed-term 2100MHz spectrum licences first agreed on in 2001 with the rollout of 3G. MNOs now enjoy indefinite access to their spectrum licences, but have to pay a yearly fee.

“ALFs serve no purpose other than to generate revenue for the government,” said Lerner.

Lerner argued that the market ensures efficiency on its own, without the need for prescriptive measures and fees on top of already high operating costs.

He cited Ofcom’s own ‘future approach to mobile markets and spectrum conclusions’ paper [PDF] to illustrate that Three and Vodafone earned returns below the cost of capital between 2019 and 2021.

Sophie James, head of telecoms and spectrum policy at techUK, described ALFs as “money that goes into a large pot”, and urged the government to allow MNOs to instead spend this money on national networks, network resilience, and supporting growth in the market.

Lerner also stated that the current level of investment in the market was billions of pounds short of what is needed and argued that its long-proposed merger with Vodafone is necessary to maintain the market.

The Competition and Markets Authority (CMA) will ultimately weigh in on this decision, with Ofcom acting as a source of information but not a decision-maker said Brian Potterill, director of mobile network strategy at Ofcom.

“When Three and O2 tried to merge, Ofcom took a very clear position against this," he added.

"There are two network sharing arrangements in the UK, and our concerns at the time were that the merger would have straddled the sharing arrangements. That was then, this is now. Every merger has to be judged on the merits of the merger at the time."

This article was amended to attribute comments to Stephen Lerner, which had been incorrectly attributed to James Robinson.

Ofcom is set to examine the position of Amazon, Microsoft, and Google in cloud services as part of an investigation into whether the digital communications markets are working well for people and businesses in the UK.

As part of this, Ofcom will launch a market study in the coming weeks under the Enterprise Act 2002 into the UK’s cloud sector. It underlined that the largest providers of cloud services, also known as hyperscalers, are Amazon Web Services (AWS), Microsoft, and Google. The three firms generate around 81% of revenues in the UK public cloud infrastructure services market.

The regulator’s study will assess how well the market is working and examine the strength of competition in cloud services generally, including the position the three hyperscalers hold in the market. It will also consider any market features that might limit innovation or growth in the sector by making it difficult for other companies to enter the market and expand their share.

Ofcom will examine how the market is working today as well as how it expects it to develop in the future, hoping to identify any potential competition concerns early to prevent them from becoming embedded as the market matures. The regulator is hoping to publish a final report, including its concerns or proposed recommendations, within twelve months.

If it finds a market is not working well, it said there can be negative impacts on businesses and ultimately consumers, through higher prices, lower service quality, and reduced innovation. If this happens, Ofcom can make several decisions including making recommendations to the government to change regulations or policy, taking competition or consumer enforcement action, or making a market investigation reference to the Competition and Markets Authority (CMA).

“As the sector regulator, and with our powers to explore potential competition issues under the Enterprise Act, Ofcom’s job is to make sure that communications markets are working well for consumers and businesses,” said the regulator. “That includes keeping pace with disruptive developments in our sectors – such as new and emerging technologies, or changes in commercial models and supply chains.”

Ofcom added that digital innovations also create a risk of new types of harm, so is taking a close look at the sector in line with its duty to promote competition for the benefit of communications consumers.

Ofcom added that over the next year, it will also start a broader programme of work to examine other digital markets, including online personal communication apps and devices for accessing audiovisual content.

“We are interested in how services such as WhatsApp, FaceTime and Zoom are affecting the role of traditional calling and messaging, and how competition and innovation in these markets may evolve over the coming years,” said Ofcom. “We also want to understand whether any limitations on their ability to interact with each other raises potential concerns.”

It will also look at the nature and intensity of competition among digital personal assistants and audiovisual “gateways”, including connected televisions and smart speakers, through which people access traditional TV and radio, as well as online content.

"Ofcom’s probe is welcome news for the UK tech sector. For far too long, the big three cloud providers have dominated the market without necessarily delivering for their users," said Mark Boost, CEO of Civo. "We have reached a point where IT teams view choosing AWS or Azure or Google Cloud as the only option for their organisation, hooked in by the scale and sheer amount of services on offer.”

“I hope that Ofcom’s work will be the start of a process to create a fairer and more competitive cloud market. This needs to be built on the core principles users want from the cloud: a reliable, fairly priced service that is low on complexity and offers the fast launch times essential for the modern developer," added Boost.

Ofcom has announced that it is finally launching the long-delayed UK 5G spectrum auction this week which it hopes will result in better mobile services and access to 5G technology.

The auction, which was originally due to kick off in 2017, will increase the total amount of spectrum available for mobile technology in the UK by approximately a fifth. Devices that communicate wirelessly need spectrum, including televisions, car key fobs and satellites.

The auction will involve companies bidding for spectrum in two different frequency bands, the 700MHz band and the 3.6-3.8GHz band. The latter is the primary band for 5G.

In the 700 MHz band, there will be 80 MHz available to bid on. In the 3.6-3.8 MHz band, there will be 120 MHz available.

Four companies will take part in the auction: EE Limited, Hutchison 3G UK Limited, Telefónica UK Limited and Vodafone Limited. IT Pro has contacted them all for comment.

The auction will be divided into two parts. The main one is called the principal stage and is where prices go up with bids and the bids determine how much spectrum each party acquires.

In the principal stage, each spectrum is available at a reserve, or minimum price. The reserve price for each 700MHz portion is £1 million and there are four lots of spectrum, each made up of 10 MHz. The reserve for each 700MHz paired frequency lot is £100m and there are six lots of spectrum (each of 2x5 MHz).

The reserve price for each 3.6 GHz lot is £20m and there are 24 lots of spectrum (each of 5 MHz) available.

The bidders will bid for a number of lots in each band at the given price, which is set by Ofcom. If the demand for the available lots is equal or larger than the amount available then the price for each frequency will go up in the next round and bidders can place their bids again. This continues until there are no new bids in a round.

The second stage is called the assignment stage and determines the precise frequencies of the airwaves won by each bidder. Interestingly, winners of the 3.6-3.8 GHz band are allowed to negotiate the specific frequencies among themselves if they want to join together the airwaves they have secured within the band.

The auction could go on for several weeks and the length will depend on the level of demand for the spectrum available. At the end of each bidding day during the principal stage, Ofcom will publish the prices for the lots in the last round and a measure of demand in each band.

In January, Ofcom announced the long-awaited 5G spectrum auction was to be delayed again until March. The auction has suffered from delays since at least 2017, where Three attempted to have a 30% cap placed on the auction which would have blocked the larger providers from bidding against smaller rivals.

The High Court ruled against Three in December 2017 and the case was then sent to the Court of Appeal. The decision was upheld in 2018.

It's official: the UK population is addicted to their smartphones and with 78% of us armed with a smartphone (95% for those between 16-24), it's not surprising we struggle to switch off.

Research by Ofcom has revealed people check their smartphones every 12 minutes on average and two-fifths of the adult population check their phone for notifications within five minutes of waking up. The under-35s are the most likely to check their devices as soon as they open their eyes with 65% admitting it's the first thing they do in the day. Similarly, smartphones are checked just before going to bed. 37% of those questioned in Ofcom's survey said they always check their phone five minutes before they switch their lights off.

The landscape has shifted exponentially over the last ten years and now the majority of the UK population expect to be constantly connected to the internet, whether that's via Wi-Fi or a mobile data connection. Being permanently online has its benefits. 41% said that always being connected means they can work more flexibly, which has advantages for both employees and employers and 35% think always being online means they can use their commute more effectively, getting on with business tasks.

However, it's not all positive news. Living in an always-on world means 15% of the population feel they're always at work and more than half say always being connected is disruptive when building relationships with family and friends.

"Over the last decade, people's lives have been transformed by the rise of the smartphone, together with better access to the internet and new services," Ian Macrae, Ofcom's director of market intelligence, said.

"Whether it's working flexibly, keeping up with current affairs or shopping online, we can do more on the move than ever before. But while people appreciate their smartphone as their constant companion, some are finding themselves feeling overloaded when online, or frustrated when they're not."

With all this talk about high-speed internet, it's easy to forget many UK citizens are still struggling to get broadband connections that are faster than the minimum speed needed to stream a Netflix show.

As Ofcom outlines in its Connected Nations Report 2018, some 925,000 households and businesses are still unable to even reach download speeds of 10Mbps, accounting for 3% of UK households and premises. While this number has gone down with each successive report, it hasn't gone down by a significant amount. In May 2016, the figure was at 1.6 million. It then went down to 1.1 million in 2017. With only an extra 150,000 households and premises able to get above the measly 10Mbps in 2018, the availability and uptake of adequate broadband speeds seems to be as sluggish as their download speeds.

"There have been further improvements in the availability of broadband services across the UK. However, more needs to be done to provide consumers with access to decent broadband," Ofcom wrote in the report. "There are still too many people in the UK who cannot get a decent broadband connection."

This figure is in stark contrast to Ofcom's report that 95% of UK premises have access to super-fast high-speed broadband, which it outlined as "providing a minimum 30Mbps download speed".

"It is imperative that, as well as deploying ultrafast broadband, we ensure that every home and business has a minimum level of fast internet broadband internet, especially in rural communities where lack of access can be a serious problem," Matt Powell, editor at Broadband Genie said.

While it's pretty awful so many people are still on such slow broadband speeds, most of them should be getting an upgrade fairly soon. Come 2020, the government will have to make sure every household and business has access to broadband speeds of at least 10Mbps, following legislation passed in March, albeit with one small caveat.

"Homes and businesses will be able to request a connection up to a cost threshold of 3,400," Ofcom wrote. "For the most expensive to reach properties where the costs of providing a USO (Universal Service Obligation) connection exceed this amount, consumers will need to

That said, a measly 10Mbps will be even more atrocious by the time 2020 comes around, considering that, according to the report, on the other side of the fence, 1.2 million UK premises have full fibre 1GB coverage.

"We're still a long way from having a full fibre network that is capable of handling future demand for high speed internet access, though a number of providers have announced plans to further invest in and develop full fibre networks," Powell added. "If the UK is to remain competitive especially given the uncertainty of Brexit we need to rapidly expand coverage of ultrafast broadband while still maintaining healthy competition to avoid a monopoly."

Ofcom will be put in charge of enforcing the Universal Service Obligation's rollout in 2020.

UK broadband providers will soon be required to guarantee minimum speeds to their customers before a contract is agreed, according to new Ofcom guidelines set to be enforced next year.

The regulatory body has confirmed proposals made last October that state ISPs should provide clearer information when selling their services, including a provision that allows customers to exit a contract without penalty should their speed drop below what's guaranteed.

If speeds later drop below the guarantee, providers will have 30 days to improve the service after which point customers must be allowed to walk away from the contract without penalty.

Under the new guidelines, providers must also give realistic peak time speeds at the point of sale, and made it clear that their broadband service won't be as fast during peak times, specifically 8-10pm for consumers and 12-2pm for businesses.

Customers are protected regardless of the type of broadband connection they currently use, whether it be copper, part or full fibre, or cable.

The exit clause will also apply to TV and landline packages for the first time, meaning customers won't be tied to their broadband service if it was bought as part of a media package, should speeds fall below the guaranteed minimum.

"Broadband customers must know what they're signing up to," said Lindsey Fussel, consumer group director for Ofcom. "These protections will close the gap between the broadband speeds people are sold, and what they actually receive. And to give people extra confidence, we are making it easier to walk away -- without penalty -- if companies fail to deliver."

Ofcom has given ISPs 12 months to make changes to their practices and modify the way speeds are assessed, including the creation of new testing methods and the training of staff, before the guidelines are enforced on 1 March 2019.

Any contracts taken out before that date will be subject to the current rules, which state that providers must adhere to minimum speeds, but give them an unlimited amount of time to fix the issue before letting a customer leave.

06/10/2017: Ofcom rules will require ISPs to guarantee minimum net speeds

Ofcom has proposed changes to its codes of practice governing the provision of broadband, which will enhance the rights of consumers and force internet companies to give clearer guidance over internet speeds.

The regulatory body argues that too many customers still fall foul of misleading estimated speeds provided by service providers, leading to a mismatch between the speeds they think they are buying and what they actually receive.

Under the proposals, which are expected to be reviewed over the coming months, ISPs will be required to guarantee a minimum speed before a sale, and provide detailed speed information, such as what a customer can expect at peak times.

Customers will also be able to exit a contract with an ISP at anytime, without charge, if they fail to receive the guaranteed minimum speed, although they will have a short window in which to try and improve the speeds a customer is getting.

This right to exit would also apply to contracts that include phone and pay-TV services bought as part of a broadband package, the first time such a clause has been applied, according to Ofcom.

"We want broadband shoppers to know what they're buying, and what speeds to expect," said Lindsey Fussell, Ofcom's consumer group director. "So we plan to close the gap between what's advertised and what's delivered, giving customers a fuller picture before they commit to a contract."

Gillian Guy, chief executive of Citizens Advice, added: "Many people seek our help each year because their slow and intermittent broadband service falls short of what their contract promised. For most people, a reliable broadband connection is a necessity - so when they don't get what they've paid for they should always have a quick and easy way out of their contract.

"These changes are an important step in giving consumers more power to hold their broadband provider to account for poor service."

The regulator added that customers often choose internet packages based on predicted speeds, but that the realities of day to day internet use mean these speeds can often fall far below what customers have been told to expect.

However, ISPs are technically doing nothing wrong currently, and Ofcom admits that the changes are a result of new policy direction, rather than an attempt to clamp down on rogue providers. Ofcom's code of practice, first introduced in 2008, has been updated frequently over the years, including in March this year when automatic compensation was introduced to handle slow repairs and missed appointments.

Dan Howdle, consumer telecoms analyst at Cable.co.uk, argues that the changes represent the "final frontier of protection" for UK broadband customers: "Broadband remains to this day, as far as I know, the only service you can still buy with no guarantees about what exactly it is you're going to get. By emphasising the slowest speed a customer is likely to get at peak times, speed numbers are likely to more closely match user experience. Whether or not this benefits the majority of consumers who are, by and large, unaware of how these numbers apply to day-to-day usage is questionable, however."

A final decision will be published early next year, as well as a new consumer guide to help raise awareness of what rights customers have when dealing with their ISPs.

More than a million British homes are losing out on acceptable broadband speeds as an Ofcom report has found that 4% of UK properties cannot get the bandwidth they need to meet their internet needs.

The watchdog's Connected Nations report noted that around 1.1 million UK properties, comprising homes and offices, are in areas that cannot get acceptably speedy broadband.

Ofcom defines 'decent' broadband speeds to be 10Mbps (megabits per second) for downloads and 1Mbps for uploads.

However, a swathe of UK properties cannot hit these speeds, particularly in rural areas where some buildings are a good distance from telephone exchanges or broadband street cabinets.

Some 17% of properties in rural areas have unacceptable broadband speed compared to 2% in urban areas.

This lack of decent broadband speeds could stymie people and businesses from accessing the services they need to carry out tasks such as working from home.

"Broadband coverage is improving, but our findings show there's still urgent work required before people and businesses get the services they need," said Ofcom's technology chief Steve Unger.

"Everyone should have good access to the internet, wherever they live and work. So we are supporting plans for universal broadband, and promoting investment in full-fibre technology that can provide ultrafast, reliable connections."

Interestingly, 90% of UK properties have access to 'superfast' broadband, but it is bought by less than four in ten properties meaning there is still plenty of scope for the broadband speeds across UK properties as a whole to improve.

And currently only 3% of properties have 'full fibre' access, whereby fibre optic cables are run all the way to a building not just a nearby cabinet and therefore offer better speeds.

Indoor 4G coverage is improving significantly, up 40% over last year, with six in ten properties receiving the speedy mobile broadband signal. There are still plenty of properties across Britain that don't have access to 4G signals; only 43% of UK properties have access to 4G coverage.

As such Unger stressed there's more work to be done to ensure the UK has the broadband coverage it needs.

"With all the technological advancements we've seen in recent years, people shouldn't have to second guess where they can and can't get decent mobile reception," he said.

"The public and our economy depend on mobile coverage that allows people to call, text or get online wherever they are. So we need to see mobile companies step up and prioritise improving coverage across the UK."

Given the UK is investing 645m into superfast broadband there are at least some efforts in place to improve the broadband speeds Britons have access to.

Customers who feel they've been ripped off by their broadband or landline provider will be able to get compensation automatically in Ofcom's new automatic payout scheme.

Ofcom has invited all the major broadband and landline providers to sign up for the initiative, which means customers receive credits on their bill when things don't go to plan, such as slow repairs to their service, missed appointments and delayed installations.

At present, BT, Sky, TalkTalk, Virgin Media and Zen Internet have all signed up to take part in the scheme, which means 90% of the population are covered by automatic compensation.

"Waiting too long for your landline or broadband to be fixed is frustrating enough, without having to fight for compensation," Lindsey Fussell, Ofcom's consumer group director, said. "So providers will have to pay money back automatically, whenever repairs or installations don't happen on time, or an engineer doesn't turn up. People will get the money they deserve, while providers will want to work harder to improve their service."

The new scheme will offer set amounts of money for each issue experienced. For example, if a repair is delayed after the service has stopped working and has not been fixed within two days, they will be entitled to 8 for every day that service is delayed. If an engineer misses a pre-agreed appointment, a customer will be able to take advantage of a 25 payment, while if the start of a customer's new service is delayed, they will receive 8 per day their service isn't switched on.

Ofcom said 142 million will be paid out in its new automatic compensation initiative, which is nine times the amount already being paid out to customers.

Consumer publication Which? has voiced its support for the campaign, saying it's vital providers sign up to the scheme to ensure their customers remainsatisfied with their customer service.

"We are pleased that compensation for poor broadband is going to become automatic, as it is now such an essential part of all of our everyday lives," Alex Neill, Which? managing director of Home Services added.

It's the latest move by Ofcom in its attempt to reform the UK's broadband market, which currently offers some of the slowest speeds in Europe and has in the past been accused of having misleading advertising. In October Ofcom proposed changes to its current rules that would force ISPs to guarantee minimum speeds in their adverts, and allow customers to exit contracts at any time without penalty. A final decision on these proposals is expected to emerge early next year.

The UK government announced today that BT has offered to provide a universal high speed broadband of a minimum of 10 Mbps to homes and businesses from all parts of the UK by 2022.

As part of this initiative, BT offered to "voluntarily provide" the service across the country, mainly through Openreach. The proposal outlines that BT would fund the investment and recover its costs "through the charges for products providing access to its local access networks".

It's expecting to invest 450-600 million in the proposal, something the government is interested in as BT would proactively build the infrastructure instead of waiting for households and businesses to request it, which is what would normally happen under the Universal Service Obligation (USO).

Digital Minister Dan Hancock told The Telegraph that bills may rise as a result of the deal. He stated: "Nothing is going to be paid for by taxpayers here. We have already subsidised superfast broadband to the tune of 1.7bn."

"It's likely that it'll be paid for through every broadband bill" he added.

Culture secretary, Karen Bradley, said: "The government is taking action to ensure that people everywhere in the UK can get a decent broadband connection as soon as possible. We warmly welcome BT's offer and now will look at whether this or a regulatory approach works better for homes and businesses."

The government has to consider whether to take up BTs offer or revert back to its USO, which it has already committed to.

BT CEO Gavin Patterson said the company was pleased to make a voluntary offer to deliver the government's goal for universal broadband access.

He added: "This investment will reinforce the UK's status as the leading digital economy in the G20. We already expect 95% of homes and businesses to have access to superfast broadband speeds of 24Mbps or faster by the end of 2017. Our latest initiative aims to ensure that all UK premises can get faster broadband, even in the hardest to reach parts of the UK."

Quocirca analyst Clive Longbottom highlighted how the government has made numerous promises to raise internet speeds over the past 20 years.

"In 2013, the government promised superfast broadband to 95% of the population by December this year, with a universal 2Mb/s by the same date. This was abandoned in 2016. David Cameron promised a universal right to a minimum of 10Mb/s this seemed to die a very quick death, until being brought back up in the Digital Economy Act by Karen Brady this year," he told IT Pro.

Longbottom pointed out that, however good the intention, the 2022 deadline "pushes out the original commitment by 5 years hardly pushing the limits".

Longbottom underlined how the government's own figures show we are only at 93% broadband penetration so far. In order to meet the 99% promise, it will have to ensure 1.5 million homes have access to the new technology.

"Openreach reckons that it can introduce this mix of technologies at a cost of no more than 400 per home. If this is the case, why hasn't it been done before?" he said.

Ofcom states that around 1.4 million households cannot get speeds over 10Mbps. The figure is disputed by some MPs who claim there are a further 5.3 million who have not chosen to opt in for faster broadband services as well as some who may not be able to get 10Mbps speeds, according to the BBC.

Last week Openreach rival Hyperoptic raised 100 million to expand its network in the UK. Four European banks invested in the company: BNP Paribas, ING, RBS and Dutch investment bank NIBC. It is hoping to expand its full-fibre broadband and reach five million homes by 2025.

Ofcom is capping how much spectrum a mobile operator can own at 37% effectively banning the tie up between BT and EE from bidding at the next spectrum auction.

The telecoms regulator is set to auction licenses for 190MHz of spectrum later this year. One slice of 40MHz will be auctioned off in the 2.3GHz band, which Ofcom noted could be used immedately to boost capacity, offering faster downloads for mobile users. A second tranche, of 150MHz, will be sold off in the 3.4GHz band, to be used in the future for 5G.

The auction will have two limits, both of which will keep BT which bought EE back in 2015 from bidding and gobbling up more spectrum. The first cap was set in November, preventing anyone from holding more than 255MHz of the 2.3GHz band.

The second cap, announced today, limits operators from holding more than 37% of spectrum expected to be useable in 2020. That includes the 3.4GHz band on sale later this year, as well as existing holdings of the 700MHhz band.

"Taken together, the effect of the caps will be to reduce BT/EE's overall share of mobile spectrum; the company can win a maximum 85 MHz of new spectrum in the 3.4GHz band," Ofcom said in a statement. "The overall cap also means that Vodafone could gain a maximum 160 MHz of spectrum across both the 2.3GHz and 3.4GHz bands."

No other operators would be limited by the caps.

Philip Marnick, Ofcom's Spectrum Group Director, said in a statement that such spectrum is a vital resource for the economy. "We've designed this auction to ensure that people and businesses continue to benefit from strong competition for mobile services," he said.

Marnick added: "We want to see this spectrum in use as soon as possible. With smartphones and tablets using even more data, people need a choice of fast and reliable mobile networks. These new airwaves will support better services for mobile users, and allow operators to innovate and build for the future."

Marc Allera, CEO of EE, disagreed but said the company would still be bidding for what spectrum it could still buy. "While we don't agree that spectrum caps were necessary for this auction, our focus remains on investing in our network, using our existing and future spectrum to provide the best mobile experience for our customers across the UK," he said in a statement. "We look forward to bidding for additional spectrum in this auction."

The regulator's cap was welcomed by the Internet Telephony Services Providers' Association. "Overall, we are pleased that Ofcom has listened to some of the concerns of industry and adjusted their plans according to the changing communications landscape," said ITSPA Chair Eli Katz. "We believe this is a positive step to ensure that the UK mobile market remains competitive and open to innovation".

"Whilst we welcome the developments as a positive move, we still believe there is a need to review the current wholesale access remedies to support the mobile virtual network operator (MVNO) market," Katz added. "This is a fledgling sector that needs more support to ensure the wider mobile market is vibrant and open to disruption."

Mobile network operator Three has been hit with a 1.9 million fine after an investigation revealed that a call-routing weakness meant it could not always guarantee customers could access the emergency services.

The flaw was first discovered in October 2016, when Ofcom was alerted to a temporary loss of the Three service to customers in Kent, Hampshire and parts of London.

An investigation launched the following month found that emergency calls on the network were being routed through a specific data centre, and therefore vulnerable to a single point of failure.

Ofcom regulations stipulate that mobile operators much ensure that customers are able to contact the emergency services at all times. However, in the event of an outage, Three's network would have been unable to automatically divert emergency calls to back-up routes, as these were also being funnelled through a single data centre.

Ofcom's penalty of 1,890,000, due to the weakness in the network - rather than a specific outage - incorporates a 30% reduction as a result of Three's continued co-operation, the regulator said, as well as the improvements it has made to its routing configuration.

"Telephone access to the emergency services is extremely important, because failures can have serious consequences for people's safety and wellbeing," said Gaucho Rasmussen, enforcement and investigations director at Ofcom. "Today's fine serves as a clear warning to the wider telecoms industry. Providers must take all necessary steps to ensure uninterrupted access to emergency services."

Three has since made improvements to its network, which now uses multiple data centres to route calls to the mainline BT network.

"Three acknowledges Ofcom's decision today to fine Three for a single point of vulnerability on Three's network," the company said in a statement. "However, this vulnerability has not had any impact on our customers and only relates to a potential point of failure in Three's network.

"Ofcom recognises that the circumstances surrounding the October 2016 fibre break outage were exceptional and outside of Three's control. As a result, the incident itself was not a breach of Ofcom's rules."

Rival network operator EE was also fined 2.7 million in January after an Ofcom investigation found 40,000 customers had been overcharged, some of whom had not been reimbursed.

Image courtesy of Ofcom

Ofcom will be cutting the price that BT can charge rivals for use of its Openreach fibre network in order to promote competition, it has been announced.

Specifically, Ofcom will be placing restrictions on the amount it is allowed to charge for its superfast broadband services, which have a maximum speed of 40Mb/s. The watchdog expects this to lead to cheaper prices for end-users, as well as promoting competition within the marketplace.

The company would also be compelled to complete repairs and line installations more quickly, something the company was fined by the regulator for earlier this month. If BT fails to deliver, Ofcom will have the ability to impose further fines.

Our plans are designed to encourage long-term investment in future ultrafast, full-fibre networks, while promoting competition and protecting consumers from high prices," said Ofcom's competition group director, Jonathan Oxley. "People need reliable phone and broadband services more than ever. We're making sure the market is delivering the best possible services for homes and business across the UK."

Ofcom will not, however, be capping the company's higher-speed services. This is partly because it believes that the caps on superfast broadband (as opposed to ultrafast networks like BT's new G.Fast infrastructure) would be enough to ensure competition, but also because it believes this will incentivise rival companies to build their own fibre infrastructure to keep up with BT.

The telecoms industry has reacted positively to the news, predicting a better overall quality of service for users. "This move is recognition that superfast broadband is increasingly becoming the new normal when it comes to the speed consumers expect from their internet provider," said uSwitch's head of regulation Richard Neudegg. "This should help to reduce fears of broadband blackouts, that research shows puts some consumers off moving to better services."

Mark Collins, director of strategy and policy for CityFibre, was similarly pleased: "Ofcom is finally delivering its promise to support full fibre investment and competition that will help close the UK's embarrassing fibre gap."

"This review is a major step forward. It provides the incentives for investing in full fibre networks that compete with BT. In addition to the measures announced today, we urge Ofcom to follow through on its proposals to improve access to BT's ducts and poles, and if Ofcom gets that right it will give us the tools and incentive to continue our investment in full-fibre infrastructure across the UK, and deliver it further and faster."

BT has been hit with a 42 million fine for failing to install high-speed business lines fast enough, in what is being described as a "serious breach" of contract terms.

Following an investigation by Ofcom into BT's fibre rollout arm Openreach, it was found that BT had abused the terms of its contracts by cutting compensation payments for delayed Ethernet line installations.

These high-speed business lines are the most common type of leased lines used by businesses and public services, offering high-speed and high-capacity data transfer to both BT and other telecoms providers.

Regulator Ofcom found that between January 2013 and December 2014, BT "misused the terms of its contracts to reduce compensation payments owed to other telecoms providers for failing to deliver 'Ethernet' services on time". The fine represents the largest ever made against a telecoms company.

BT breached competition rules and exploited its position as a "significant market power", Ofcom ruled, as most telecoms companies rely on BT's infrastructure to host connections to customers for services such as broadband.

Gaucho Rasmussen, investigations director at Ofcom, said in a statement: "These high-speed lines are a vital part of this country's digital backbone. Millions of people rely on BT's network for the phone and broadband services they use every day."

"We found BT broke our rules by failing to pay other telecoms companies proper compensation when these services were not provided on time," added Rasmussen. "The size of our fine reflects how important these rules are to protect competition and, ultimately, consumers and businesses. Our message is clear - we will not tolerate this sort of behaviour."

As part of its obligation to Ofcom rules, BT is required to install Ethernet services for other providers, including Vodafone and TalkTalk, in accordance with contracts, and to provide compensation payments for delays past 30 days.

The investigation was opened after Vodafone alleged that BT had abused contractual terms by extending the delivery of Ethernet services without its consent, and had failed to provide any compensation.

BT has admitted its failings, and has agreed to compensate the companies affected. Clive Selley, CEO of Openreach said in a statement: "We appologise wholeheartedly for the mistakes Openreach made in the past when processing orders for a number of high-speed business connections. This shouldn't have happened and we fully accept Ofcom's findings."

BT's compliance knocked 30% (18 million) off the total fine, however the company is likely to pay as much as 300 million in compensation payments to other telecoms providers. A further 300,000 will also be paid to Ofcom for a failure to provide adequate information during the investigation.

The fine comes less than two weeks after the BT agreed to officially separate Openreach, complying with demands issued in November by Ofcom, which believed BT's monopoly over network infrastructure was anti-competitive.

Dan Howdle, consumer telecoms analyst at Cable.co.uk, said: "Today's ruling offers insight into just some of the factors contributing to Ofcom's decision to split BT and Openreach into two separate entities. Clearly, being the sole owner of shared infrastructure has given rise to precisely the sort of conflict of interest of which BT has long been accused."

Customers with poor internet service could get up to 185 million in compensation, according to new Ofcom plans.

The scheme is designed to improve customers' quality of service, and would involve reimbursing them for inconveniences such as cancelled appointments, service delays and outages.

Ofcom's proposal is now under consultation until 5 July, with a final decision expected to be published around the end of the year. As the country's three biggest providers, Virgin Media, BT and Sky have clubbed together to propose offering automatic compensation as past of an industry-standard voluntary code of practise.

This proposal has been rejected by Ofcom, however. "At this stage, we do not think that the industry proposal sufficiently meets our concerns when quality of service falls short, but we welcome the opportunity to continue this dialogue with industry in parallel to this consultation."

Ofcom said that the new proposals could leave up to 2.6 million people better off, and could result in a combined payout to customers of 185 million.

"Telecoms services are thought of by consumers as an increasingly essential part of their home and business life," the telecoms watchdog said. "Given the growing importance of telecoms services and the reliance consumers place on them, it is important that they should be able to obtain redress quickly and easily when they suffer problems with their service."

According to the regulator, a significant amount of people are affected by broadband and landline issues annually; almost a quarter of a million engineer appointments are missed, Ofcom said, and over one million installations are subject to delays, with more than five million customers experiencing a loss of service every year.

Under the proposed rules, customers would automatically either receive a cash payment or have money deducted from their bill under certain circumstances. This would include a 10 refund for every calendar day that a faulty service goes unfixed, 30 for every time an engineer appointment is cancelled within 24 hours or missed altogether, and 60 for every day that a company misses beyond the stated start date of a new service.

It's not just residential broadband users, either; SMBs are set to benefit from the new plans too. According to Ofcom, residential broadband services are used by around a third of SMBs, meaning they will automatically benefit from the proposed rules.

In addition to this, Ofcom is advising that the two-thirds who take out business-grade broadband contracts be provided with more information of what quality of service they can expect and what compensation they are entitled to when problems arise.

"This proposal reflects that SMEs can negotiate bespoke terms and there are already standard business contracts currently on offer that provide compensation for a number of different issues, which are not available for residential consumers," Ofcom said.

"Our approach should help enable SMEs to take advantage of these and secure compensation for the service problems they encounter."

BT will legally separate from its network division Openreach, after agreeing to comply with regulator Ofcom's demand.

Openreach will be run by its own board, though the legally separate company will still reside within BT Group, and 32,000 employees will transfer over to the fibre installation body after union consultations.

BT expects the process of making Openreach more independent to take some months, as these employees' pension arrangements are transferred across.

The agreement means that Ofcom has dropped its threat of an official notification to the European Commission that was intended to force BT to adopt the changes, after it launched its proposals last November.

Ofcom was concerned that BT's control of Openreach, which is responsible for most of the UK's fibre networks, was anti-competitive by giving it the capacity to be biased against its rivals, including Sky, TalkTalk and Vodafone.

Mark Shurmer, MD of regulatory affairs for Openreach, said in a press conference call this morning that reaching this agreement was beneficial for all parties.

"A massive shadow has been removed from our business, our staff, our investors and our customers going forward," he said. "We have avoided long lasting damage to our pensions scheme, which is very important.

"This is a tough but just solution. We have worked hard to arrive at this solution in a way that addresses Ofcom's competition concerns but in a way that doesn't mean huge costs for us."

While BT will retain ownership of Openreach's assets, including its physical access network, an Openreach board formed mostly of independent members will control its operating plans and the future development of its assets and determine what technologies underpin future broadband rollouts.

Openreach is also free to explore investment with BT's rivals, like Sky and TalkTalk, and won't feature BT's branding.

A Sky spokesperson said: "A more independent Openreach is a step towards delivering better service to customers and the investment that the UK needs. It's important that today's agreement is now implemented by BT in good faith and without delay."

TalkTalk CEO Dido Harding added: "We welcome the agreement to create a legally separate Openreach. The new company will be better placed to deliver the improved investment and service that consumers and businesses deserve.

"This deal will require robust Ofcom monitoring and enforcement to ensure it delivers the improvements the regulator expects. We hope this is the start of a new deal for Britain's broadband customers, who will be keen to see a clear timetable from Openreach setting out when their services will improve."

Openreach executives will be accountable to its board rather than to BT, and the body will be obliged to consult with Sky, TalkTalk and Vodafone on any large-scale investments.

This will include a confidential phase during which ideas discussed with rivals cannot be revealed to BT.

In future, there will be a 'confidential' phase during which customers can discuss ideas without this being disclosed to BT Group, as well as further protections for confidential customer information.

Ofcom CEO Sharon White said BT's decision to accept its proposals will mean they can be implemented much more quickly.

She added: "The new Openreach will be built to serve all its customers equally, working truly independently and taking investment decisions on behalf of the whole industry - not just BT.

"We will carefully monitor how the new Openreach performs, while continuing our work to improve the quality of service offered by all telecoms companies."

Saying the decision provides "welcome certainty" after a two-year saga over whether BT can retain control over Openreach or not, research firm CCS Insight added that it demonstrates the regulator's issues with weak competition among UK broadband providers.

Principal analyst for operators, Kester Mann, said: "The agreement reflects Ofcom's determination to improve BT's performance and clear concern that the UK broadband market has not been as competitive or operated as effectively as it would have liked. Its determination in negotiations with BT under the increasingly impressive stewardship of Sharon White should be applauded.

"BT's rivals, notably Sky and TalkTalk, will publically claim that the regulator should have gone further by enforcing a full structural separation. However, this option was always the most radical and controversial the regulator could have taken. In private they should be more than satisfied with the changes Ofcom has pushed through."

Ofcom has fined EE 2.7 million for overcharging tens of thousands of customers, then deciding not to reimburse some of them.

The mobile operator broke a billing rule when it charged 32,145 customers around 245,700 for calling its 150 customer service number while roaming in the EU between July 2014 and July 2015.

EE mistakenly instructed its billing records department to disregard the international dialling code in front of the customer service number, meaning the 1' of 150' was instead misread as the international dialling code for the US, leading to customers being charged 1.20 per minute, instead of 19p per minute, for an average overcharge of 9.42.

Rather than reimburse the affected customers, EE decided that it couldn't identify those it had overcharged, saying some had left EE, and so proposed to give customers' money to charity until Ofcom intervened.

Lindsey Fussell, Ofcom's consumer group director, said: "EE didn't take enough care to ensure that its customers were billed accurately. This ended up costing customers thousands of pounds, which is completely unacceptable.

"We monitor how phone companies bill their customers, and will not tolerate careless mistakes. Any company that breaks Ofcom's rules should expect similar consequences."

IT Pro understands that only 0.1% of EE's userbase was affected, and that it has put measures in place to stop this happening again, introducing new systems that subsequently allowed it to contact 26,000 customers to apologise and provide a full refund.

Ofcom's fine also covered a incident from November 2015 to January 2016, when EE had made it free to call or text the 150 number, but carried on billing 7,674 customers until 11 January, overcharging them 2,203.33.

EE has since managed to track and refund all affected customers. It now has 20 days to pay Ofcom the 2.7 million fine, which the regulator will pass on to the Treasury.

The penalty follows Ofcom's 4.6 million fine issued to Vodafone last October for billing issues.

An EE spokesman said in a statement: "We accept these findings and apologise unreservedly to those customers affected by these technical billing issues between 2014 and 2015. We have put measures in place to prevent this from happening again, and have contacted the majority of customers to apologise and provide a full refund. For those customers that we could not identify, we donated the remaining excess fees to charitable causes in line with Ofcom's guidelines.

"Providing the best network experience and best customer service for EE customers in store, online and over the phone through our UK and Ireland-based centres are our top priorities. Following Ofcom's findings, we have made a number of additional improvements to our systems and policies to allow us to better support our customers in the rare occasion that billing issues do occur."

Picture: Bigstock

Millions of UK homes are still unable to access "decent" enough broadband speeds necessary to meet digital needs, according to a recent study by Ofcom.

In the "Connected Nations 2016" report published today, revealed that 1.4 million UK homes and businesses, or 5% of all properties, are unable to sign up for broadband over 10 Mbit per second, speeds required to meet digital household needs in 2016.

The report also found that total 4G-network coverage supplied by four operators reached just 40% of the UK landmass, although this was substantially higher than the 8% found last year.

With targets for 1 Mbit/s upload speeds included, the number of UK properties receiving an inadequate service rises to 2.6 million, while only 2% of UK premises can access ultrafast full fibre services.

"Mobile and broadband coverage continued to grow this year, but too many people and businesses are still struggling for a good service," said Ofcom CTO Steve Unger.

"We think that is unacceptable. So we're challenging mobile operators to go beyond built-up areas, and provide coverage across the UK's countryside and transport networks. Today we've also provided technical advice to support the Government's plans for universal, decent broadband," added Unger.

Findings from the report revealed that almost 40% of all rural properties are unable to access superfast broadband, while a quarter, around 920,000 homes, cannot receive speeds over 10Mbit/s.

In response, Ofcom has released an advisory report to help the government implement plans for universal broadband, set out in 2015. Under this obligation, 100% of UK homes will have access to at least 10Mbit/s broadband by 2020.

The report highlighted that overall coverage and quality of UK broadband had increased since 2015, with a 28% rise in average speeds and over a third of new homes accessing superfast broadband over 30Mbit/s.

The availability of superfast broadband has increased, according to the report, but a "significant number" of UK premises, including homes and small businesses, remain at risk of "digital exclusion".

A survey released in November by ViaSat found that 72% of consumers were unhappy with UK broadband and felt the government isn't doing enough to meet future broadband needs.

Dan Howdle, consumer telecoms expert at comparison site Cable.co.uk, argues that while "honourable", there are no clear plans for delivering universal broadband in time for 2020.

"It's all very well pointing and saying 'this many homes have rubbish broadband and diabolical mobile reception', but the real question remains: how exactly, in each individual case, are we going to achieve that?" said Howdle.

"If you're living in a hillside cottage in the Highlands and the promise is you'll have 10Mbit/s by 2020, should a letter not have already dropped through your door carrying an explanation of exactly when and how this is going to happen?," added Howdle.

A report published on Wednesday by the National Infrastructure Commission found that 4G mobile broadband coverage in the UK was worse than 53 other countries around the world, including Albania and Peru.

Ofcom has stated it would closely monitor the progress of government plans to deliver universal broadband.

The UK has worse mobile coverage than 53 countries around the world, according to a report published today by the National Infrastructure Commission (NIC).

The UK's 4G network is said to be worse than that in countries such as Romania, Albania, Panama and Peru.

The NIC found the UK to be 54th in the world for 4G, with an average user only being able to access 4G connectivity 53% of the time. Spots where 4G does not reach appear to be common even within city centres.

NIC chairman Lord Adonis said: "Our roads and railways can feel like digital deserts and even our city centres are plagued by not spots where connectivity is impossible. That isn't just frustrating, it is increasingly holding British business back as more and more of our economy requires a connected workforce."

With 93% of adults in the UK owning a mobile phone, mobile connectivity has become increasingly important. NIC urged the government and broadband regulator Ofcom to ensure that basic services, such as talk, text and data, are available everywhere, to prepare the UK for 5G as quickly as possible.

Will Stewart, VP of the Institution of Engineering and Technology (IET), called for "urgent implementation" of the report's recommendations.

He added: "[The government must make] a quick decision on which government department will take ultimate responsibility for ensuring the UK has the broadband infrastructure required to put the UK in a stronger position to be global leader in the digital economy and associated innovation opportunities."

The report suggested the development of metrics that show the actual coverage accessible to mobile users, which should then be used to ensure essential services are accessible to mobile users by no later than 2025.

Lord Adonis said: "The existing system does not provide the level of coverage we will need in our connected future. We need a new universal service obligation which ensures that the mobile essentials - like text, talk and data - are available to us wherever we need them."

Ofcom agreed that the mobile coverage in the UK needs improvement. An Ofcom spokesperson said: "We're pleased the NIC shares our ambition for universal coverage. Our rules mean that virtually all UK premises must receive a 4G signal by the end of next year, and we're also making more airwaves available to boost mobile broadband. Last month, we challenged mobile operators to explore how to reach all remote areas and transport lines."

In order to be 5G ready, the Commission says motorways and key rail routes should improve in connectivity. Similarly, local authorities and network providers will need to collaborate to ensure that towns and cities have adequate 4G coverage.

"5G is the future - ultra-fast, and ultra-reliable it has the potential to change our lives and our economy in ways we cannot even imagine today. But the UK is currently languishing in the digital slow lane," added Lord Adonis. "From connected vehicles to the internet of things, 5G will support a whole new way of communicating and doing business. The UK must not be left behind."

BT chairman Michael Rake admitted the company needs to improve its customer service, in an interview with ITV's Peston on Sunday.

Rake also spoke about BT's Openreach broadband service, saying: "Just to point out that Ofcom and the OECD (Organisation for Economic Co-operation and Development) and every independent survey showed this is one of the fastest roll-outs of broadband ever in an OECD country with some of the lowest speeds, most competition and highest access. But it isn't enough and we'll get there."

Ofcom, the UK's telecommunications regulator, is preparing to force BT to separate its Openreach division, which is responsible for deploying the vast majority of the UK's broadband infrastructure.

Although Openreach is part of BT, other providers such as TalkTalk, Sky and Vodafone also use the network.

Ofcom believes Openreach should run as a separate company, saying BT is hindering competition.

Last week, the British regulator said it will go to the European Commission to try and make BT legally separate from Openreach.

A spokesperson for Ofcom said at the time: "We are disappointed that BT has not yet come forward with proposals that meet our competition concerns. Some progress has been made, but this has not been enough, and action is required now to deliver better outcomes for phone and broadband users."

Speaking with Robert Peston, Rake said: "Everyone is frustrated because they want superfast broadband today. We understand that and we're committing to deliver it."

He added: "The point that I think is something that we have to work on is customer service, which has not in the industry as a whole been good enough nor is it with us, and we are doing a lot to improve that."

A week after Ofcom announced its decision to ban BT from bidding on half the frequencies available at the next spectrum auction in 2017, Three is once again campaigning to reduce BT's over dominance in the UK mobile market.

Three has been asking its customers to send letters to Ofcom to push for limits on BT and Vodafone's overall spectrum ownership.

The campaign, called "Make The Air Fair", is backed by Three, TalkTalk, CityFibre, Gamma, Relish and the Federation of Communication Services.

As part of this campaign, new advertisements with a cartoon superhero image of Ofcom CEO Sharon White started appearing on buildings around London.

Three and other mobile operators have been campaigning for a 30% cap on spectrum for months. In October, they sent an open letter to Sharon White asking for this cap to be established.

At the present moment, BT owns around 45% of the UK's usable spectrum, followed by Vodafone (28%), Three (15%) and O2 (14%).

BT's acquisition of EE at the beginning of the year made the situation worse, increasing its dominance over the UK's mobile market even further.

Last week, Ofcom said it has decided to reduce the amount of spectrum BT can acquire in the next spectrum auction, allowing the mobile operator access to the 3.4GHz spectrum, but not to the 2.3GHz.

The 3.4GHz is not immediately usable, but should be once 5G-supporting technology becomes widespread.

This decision did not satify Three and other mobile operators who own smaller amounts of spectrum. In a statement, Three's CEO Dave Dyson said: "The mobile industry is failing customers and Ofcom has showed it has no interest in addressing that. A 30% cap on total spectrum ownership and a spectrum reservation for smaller operators are the only measures that will preserve competition for the benefit of UK mobile consumers."

Ofcom, the UK telecoms regulator, is preparing to formally require BT to spin off its network infrastructure arm, Openreach.

The oversight body has repeatedly raised concerns BT is acting in an anti-competitive manner and had already ruled in July that Openreach should be run as a separate company. However, at that time it wasn't recommended that the organisations should be split up completely.

The issue arises from the fact that, although Openreach is part of BT, it's responsible for providing the majority of telecoms network infrastructure to competitors like TalkTalk, Sky and Vodafone, as well as BT's retail arm.

"Ofcom is pressing ahead with its plans to improve broadband and telephone services for people across the country, pursuing better service quality and encouraging greater investment in networks. Creating a more independent Openreach which works in the interest of all providers, not just BT is an important part of achieving this," said Ofcom in a statement.

"We are disappointed that BT has not yet come forward with proposals that meet our competition concerns. Some progress has been made, but this has not been enough, and action is required now to deliver better outcomes for phone and broadband users," it added.

Consequently, Ofcom will be submitting an official notification to the European Commission to start the process of separation, as is required by law.

"We remain open to further voluntary proposals from BT that address these outstanding concerns. However, we are now preparing a notification to the European Commission to require the changes to increase Openreach's independence," Ofcom continued.

A public consultation with the EC is expected in early 2017. If Ofcom is given the go-ahead, the process of separating the companies will take place "as soon as possible".

In response to the ruling, a BT spokesman told IT Pro: "We note Ofcom's announcement this morning, updating on the next steps of the Digital Communications Review.

"We put forward proposals in July that we believe are fair and sustainable, and that meet Ofcom's objectives without disproportionate costs. We are implementing these proposals, and have just appointed Mike McTighe to be the first chairman of Openreach. We are in discussions with Ofcom on two outstanding issues, the reporting line of the Openreach CEO and the form of legal incorporation.

"We will continue to work with Ofcom to reach a voluntary settlement that is good for customers, shareholders, employees, pensioners and investment in the UK's digital future"

Dan Howdle, consumer telecoms expert at telecoms comparison provider Cable.co.uk said: "It's tough to read whether BT's heel-dragging is as a result of a tactic with the intention to deliberately delay and undermine the process, or whether, rather like Brexit, the process of separating Openreach is simply too vast and complex to be fully planned out in such a short period of time.

"That Ofcom has had to speak out of its 'frustration' suggests to me there is more to this delay than bureaucracy and red tape that unwillingness to comply is also playing some part."

Ofcom has set out rules for next year's spectrum auctions, which appear to prevent BT from bidding for half of the available frequencies on offer.

The 2017 auction should bid out 190MHz of spectrum in two bands, 2.3 GHz and 3.4GHz, increasing the overall spectrum available by 29%.

According to figures from Citi (cited by The Financial Times), after its acquisition of EE, BT owns around 42% of the UK's usable spectrum, while Vodafone owns about 28%, followed by Three (15%) and O2 (14%).

In order to prevent BT from becoming too dominant and favour competition between UK mobile operators, Ofcom said it would prevent BT/EE from bidding for 2.3 GHz band spectrum.

The 2.3GHz band is accessible by most current smartphones, and would hence be frequencies that would immediately boost a mobile provider's capacity.

As most mobile devices are not currently using it, spectrum in the 3.4Gz band, will not be capped. This spectrum is likely to become usable in the coming years.

This should allow a greater possibility for expansion in currently utilisable spectrum by smaller mobile operators such as Three and O2.

In October, Three, TalkTalk and the Federation of Communication Services (FCS) had sent an open letter to Ofcom CEO Sharon White, asking for a 30% cap on the total amount of spectrum companies can own, to prevent BT/EE and Vodafone from monopolising the market.

Among other things, the letter said that the uneven spectrum distribution between UK mobile operators could result in "higher prices for a poorer service at a time when mobile's importance to the digital economy has never been greater".

At the time, a BT/EE spokesperson had told IT Pro: "We use our spectrum to deliver the very best network experience for customers. We pioneered 4G and we are a leader in network speeds, developing technologies to provide some of the highest mobile download speeds in the world."

Ofcom's decision suggests it also wants to prevent BT from dominating the mobile operator market, particularly seeing as this auction will be of crucial importance, as no further spectrum should be released before 2020.

Some mobile operators, such as Three, were not entirely satisfied by OfCom's decision. Three's CEO, Dave Dyson, released a statement saying: "Ofcom exists to promote competition and protect consumers but it has once again shown it is not willing to make the big decisions needed to deliver the best outcome for the UK."

Dyson added: "The mobile industry is failing customers and Ofcom has showed it has no interest in addressing that. A 30% cap on total spectrum ownership and a spectrum reservation for smaller operators are the only measures that will preserve competition for the benefit of UK mobile consumers."

This article was originally published on 21/11/2016 at 12:00, but was updated on 22/11/2016 at 15:27 to include a statement by Three.

Ofcom has stung Vodafone with a 4.6 million fine for a "serious and sustained breaches of consumer protection rules".

More than 10,000 pay-as-you-go customers lost out when Vodafone systems failed to transfer account credit during 'top-up' requests. Customers collectively lost 150,000 over a 17-month period.

The regulator also criticised Vodafone for failing to act quickly enough to address errors caused by switching to a new billing system. A second Ofcom investigation found the company failed to comply with customer complaint rules, as many Vodafone service agents were not briefed on what constituted a complaint.

The system for handling complaints, including prioritisation and responding in a timely manner, was also severely inefficient, according to Ofcom.

It levied a penalty of 3.7 million for failing to credit pay-as-you-go customer accounts, and an additional 925,000 fine for its poor customer service.

Vodafone has already reimbursed affected customers, and must pay the fines within 20 days.

"We have refunded or re-credited 10,442 customers out of the 10,452 affected. The average refund per customer was 14.35," said Vodafone in a press statement.

The company acknowledged the incidient was a "serious error" and teams "failed to appreciate its significance" once it was discovered. Vodafone has assured customers that it has implemented "system wide changes" to its management system, and has overhauled its escalation procedures in response to the investigation.

"This isn't the first time Ofcom have levied a fine for this type of thing, but it is certainly the largest," said Matthew Howett, regulatory analyst at research firm Ovum.

"Vodafone would have been expecting a fine, particularly given the length and breadth of the investigation. Their conciliatory tone this morning suggests they are now trying to move on from the damage and repair reputations with customers," added Howett.

Following rule changes in 2015, Ofcom has since taken a more aggressive approach to sanctions, particularly against telecommunication companies. Since the changes, the severity of the fine would be determined by the seriousness of the breach, which Howett believes is reflected in today's announcement.

"While the number of affected customers is minimal compared to the total 20 million Vodafone users in the UK, the investigation has been an unwanted headache," said David Cheetham, market analyst at XTB.

"Investors will hope that the firm can move on and look to build on a solid if not spectacular year so far which has seen the stock rise around 10%. The telecommunications company will likely be pleased to have drawn a line under the whole incident and take their medicine in the form of a sizeable fine."

The 4.6 million fine against Vodafone stands as the largest ever penalty issued by the regulator. Last year Ofcom issued a 1 million fine against mobile network EE for similarly failing to handle customer complaints, while TalkTalk and Tiscali were hit with a 3 million penalty in 2011 for breaching billing rules.

Ofcom has launched an initiative to crowdsource mobile coverage maps, helping consumers make a decision about which network they should choose.

The regulator is inviting Android mobile users to download the Ofcom Mobile Research Android app, which will automatically log app use, voice call reliability, signal strength, location and data speeds.

The data will then be used to perform a detailed comparison of mobile phone providers, which will be launched in 2017. This data will then be used to create more detailed coverage maps than Ofcom already offers consumers.

"Our research aims to build an independent benchmark for both consumers and industry," said an Ofcom representative. "It will help mobile customers make purchasing and switching decision, and will be used to enhance Ofcom's mobile coverage maps and consumer research."

The application won't be available for iPhones or other iOS devices because Ofcom says there are too many other apps that will interfere with the data it needs to collect.

Any data collected is anonymised, so Ofcom won't be able to track you down, nether will it be used by other companies to target you with marketing or be available for authorities to use against you.

However, when launching the app, you will be asked your age group, gender, occupation, postcode and home broadband availability.

"Ofcom takes data protection very seriously. Therefore, all users' data will be completely anonymised. Ofcom is working with a technical partner on the project - P3 Communications," Ofcom wrote in the announcement.

"P3 has experience of collecting anonymised data for public companies - such as the Germany railway network, Deutsche Bahn, for which it helped develop a mobile coverage app. Data will be anonymised and P3 and Ofcom will ensure the data collected is not attributable to any individuals. Participants can opt out of the research at any time by simply uninstalling the app."

Three will push ahead with plans to introduce ad-blocking on its network, despite EU opposition.

The mobile operator plans to roll out ad-blocking in 2017, claiming mobile ads are intrusive and appear in front of users without their agreement.

However, the EU's Body of European Regulators for Electronic Communications (Berec) has now released guidance saying that network providers cannot meddle with any internet services or apps their customers use.

The guidance reads: "Providers of internet access services shall not block, slow down, alter, restrict, interfere with, degrade or discriminate between specific content, applications or services."

The guidance is for national regulators though, rather than being directly applicable to network providers, and it's telecoms regulator Ofcom's job to interpret Berec's guidance and choose how it enforces the guidance in the UK.

An Ofcom spokesman told IT Pro: "Ofcom will monitor compliance with the new rules, and look into any complaints received. We will consider any potential breaches as they arise in accordance with our interpretation of the Regulation, and drawing upon the Berec Guidelines to inform our approach."

As its statement suggests, Ofcom will wait and see whether network providers' plans represent a breach of the Berec guidance.

As a result, IT Pro understands that Three will press on with ad-blocking plans it first trialled in June, when it stated its intention to "revolutionise the mobile advertising experience" of its users.

If its plans remain unchanged, they would involve making the advertiser pay for data charges related to ads, not the user, ensuring customers' security and privacy, and ensuring that the advertising received by customers is relevant and interesting to them.

When Three announced its plans, CMO for the UK, Tom Malleschitz, said: "This is the next step in our journey to make mobile ads better for our customers.

"The current ad model is broken. It frustrates customers, eats up their data allowance and can jeopardise their privacy. Something needs to change."

Three declined to comment on the story, and it is not known when in 2017 it will enable network-level ad-blocking, although IT Pro understands the service would be opt-in for all users.

The Internet Advertising Bureau (IAB) said in February that ad-blockers could force users to pay for content they currently receive for free.

Ad-blocking services are predicted to cost publishers 19 billion by 2020, according to a study by Juniper Research in May, with the number of ad-block users rising 41 per cent year-on-year in 2015.

Openreach should be run as a separate company from BT, industry regulator Ofcom recommended today.

BT's fibre rollout division would not be fully separated from BT under the watchdog's proposed model, but would be run as a distinct company with its own board and employees.

It would also own the physical network it operates, allowing the board to make decisions around investing in the UK's broadband network and other Openreach assets.

Ofcom stopped just shy of recommending full separation between BT and Openreach, but said: "This model would provide Openreach with the greatest degree of independence from BT Group that is possible without incurring the costs and disruption - to industry and consumers - associated with separating the companies entirely."

Part of BT Group, Openreach comprises the UK's main broadband network whose lines are used by BT rivals like Sky and TalkTalk, and Ofcom has expressed concerns that BT's ownership of the network can lead to competition problems.

The latest proposals, which would come under the Communications (Access to Infrastructure) Regulations 2016, seek to make Openreach more independent from its owner.

Ofcom did not rule out separation if the proposed model does not work, however, saying: "If it cannot achieve this, Ofcom will reconsider whether BT and Openreach should be split into two entirely separate companies, under different ownership."

Research house CCS Insight's director of media, Paolo Pescatore, told IT Pro: "Fundamentally, BT will always be under pressure to perform and, ultimately, the threat of functional separation will remain. Therefore, we suspect the topic of separation will likely return in the future should this proposed new model not work."

Ofcom's recommendations build on its 10-year review of the digital communications market in February, when it ruled out separation but demanded BT open up more access to its ducts and poles to competitors, which BT has since started to do.

The regulator also recommended letting Openreach take its own decisions on budgets, investment and strategy, something today's proposals are designed to effect.

BT has responded by giving its rivals more access to the fibre network. Yesterday, it made a series of concessions ahead of Ofcom's proposals, including appointing an independent chairman, a majority of independent directors, and giving Openreach more autonomy over investment.

A spokeswoman for the telco today said: ""We welcome Ofcom's recognition that structural separation would be a disproportionate move. Our proposals provide Ofcom with every benefit they're seeking but without any of the substantial and unavoidable costs associated with legal incorporation. We will continue to engage with them over the coming months."

The proposals are subject to a public consultation, and people can have their say on the plans until 4 October.

Rivals' reactions

However, the measures outlined by Ofcom do not go far enough for BT's competitors.

"BT has gone the extra mile to appease Ofcom but rivals will still not be happy," said CCS Insight's Pescatore. "We firmly believe that it is now time for all parties to work together to ensure an efficient and speedy outcome in the interests of consumers. And more importantly regulatory certainty."

Sky's group CEO, Jeremy Darroch, said the proposal of a legally separate Openreach "falls short of the full change that would have guaranteed the world-class broadband network customers expect and the UK will need".

He added: "In particular, leaving Openreach's budget in the hands of BT Group raises significant questions as to whether this will really lead to the fibre investment Britain requires.

"At the end of the day, Ofcom's changes will only work if they deliver better outcomes for customers. It's now important that the changes Ofcom have mandated today are implemented rapidly, fully and without dilution. We are encouraged by Ofcom's stated commitment and willingness to use its powers to hold BT's feet to the fire."

Dido Harding, CEO of TalkTalk Group, said a legally separate Openreach "is a step in the right direction".

But she added: "The intention ten years ago was to create a functionally separate division that served all customers equally, but that is far from what happened. The lack of clear rules and responsibilities meant that BT was (according to Ofcom) able to make 4 billion in excess returns in a decade, and I fear we're repeating the mistakes of the past.

"Legal separation still means that a highly complex web of regulation, and BT has proven itself expert at gaming this system. There is nothing to suggest they will not continue to do so in the new system. Structural separation is cleaner, with less red tape - and removes BT's ability to exploit loopholes in the regulation. In taking one cautious step forward, I fear Ofcom may in practice have taken five steps back."

However, Dan Howdle, editor-in-chief of broadband comparison site Cable.co.uk, told IT Pro separation is inevitable.

"In terms of full amputation of Openreach from BT, the leg is now half off," he said. "A separate board, staff becoming Openreach employees, separate and more transparent budgets and strategies - these are the things you would do when preparing for a full split."

He added: "With pressure applied by government, consumers and competitors unlikely to let up any time soon, I can't read this any other way: Separation is now is case of when, not if."

What's next?

Today's recommendations regarding Openreach form just part of Ofcom's proposals resulting from its 10-year review, with the plans open to public consultation until early October.

The regulator plans to build on the review by setting out stricter minimum requirements on Openreach to repair problems and install new lines more quickly later this year.

Performance tables will also chart communication providers' quality of service on a number of metrics from next year, and interactive maps will show broadband coverage for individual addresses.

CEO of Ofcom, Sharon White, said: "We're pressing ahead with the biggest shake-up of telecoms in a decade, to make sure the market is delivering the best possible services for people and business across the UK."

Plans to make it easier to switch providers, and for telcos to automatically compensate customers for poor service, are also underway.

Openreach, BT's network implementation division, is trialling a new, simpler duct and pole sharing process across the UK, which could launch a country-wide rollout of new fibre broadband networks.

The process would see companies carry out more work themselves as well as more efficiently, without asking Openreach for permission. It is currently being tried by five communications providers including Callflow, NextGenAccess and WarwickNet.

The streamlined process was developed by an industry working group launched in November 2015, and its announcement comes after Ofcom fell just short of separating BT and its network arm, instead demanding it open up its network more to rivals.

BT responded by saying it would open up its ducts and poles to competitors "if they are genuinely keen to invest very large sums as we have done".

Clive Selley, CEO of Openreach, said of the trial: "This is an important step which gives greater access to our network and encourages other companies to join Openreach in building better, broader and faster communications services for the whole UK.

"We have already built an open wholesale fibre network which is available to more than 25 million homes and businesses, and we're continuing to bring fibre to more than 25,000 premises each week.

"We have also outlined ambitious plans to move the UK from superfast to ultrafast speeds, and we support other companies building their own networks using our underlying infrastructure."

Communications providers will be able to clear blockages they find without consent from Openreach, and install new distribution joints inside junction boxes in order to make deployments more cost effective and faster.

"Our ducts and poles have been open to these companies for several years, and Ofcom has been clear that the price to access them is in line with international comparisons, but they haven't been used on a large scale to date," Selley continued. "We hope that these new, simpler processes which have been designed and developed in partnership with the industry will encourage more companies to invest, particularly in parts of the UK that aren't already served by high-speed networks."

Three has asked Ofcom to stop Vodafone and BT buying too much spectrum when the auction happens later this year.

The company's smallest mobile provider thinks it would be unfair if the two companies bought more than their fair share. After all, BT and EE together (now just one massive BT network) own almost half of the available spectrum, Vodafone owns around a third more, while Three and O2 own comparably less. Three feels it would put the company in a bad position if Ofcom allows both operators to buy up more.

"The combination of BT and EE is incredibly strong financially. It has got the financial ability to outcompete everyone in the market in how much they are willing to pay," Three chief David Dyson told the Financial Times.

"Potentially, given how much spectrum they are already sitting on, BT is incentivised to strategically bid in the next auction to restrict the other operators in the market from increasing their spectrum portfolio...That could make life difficult."

The European Commission didn't allow Three and O2 to complete its merger earlier in the year, so it could be that Three has a bee in its bonnet about that and the impact it will have on its market share.

"Three and O2 are important and effective competitors in the UK, helping to deliver innovation, investment and competitive prices over many years," the European Commission wrote in its decision.

"Competition must be sustainable, and regulation should support it. We will aim to do so through tools such as market reviews or auctions of mobile airwaves."

Ofcom has said it will free up airwaves to help speed up Wi-Fi connections for millions of homes and businesses across the UK.

The regulator has revealed it will introduce a sub-band within the 5GHz band, meaning wireless internet users are not limited to using the currently congested 2.4GHz or 5GHz band to run their wireless internet connections.

However, it said it will ensure protection for others who currently run satellite services on the frequency, meaning there will not be any knock-on effects of adding a new bandwidth for Wi-Fi users.

This extra sub-band means the number of 80 MHz channels available to use for Wi-Fi has increased from four to six, allowing for more data-hungry applications to run concurrently.

"People are placing greater demands on their broadband, so we need to ensure they aren't let down by their wireless connection," Philip Marnick, group director of spectrum at Ofcom said.

"We also want to close the gap between advertised speeds and the wireless performance that people and businesses actually receive. So we're exploring ways to open up more airwaves for Wi-Fi. In the meantime, people can check their router is up to date, and use our W-Fi Checker app to test if it's working properly."

Ofcom added it is keen to work with businesses to find out how adding extra airwaves in the 5GHz range might help growing demand, including the indicators it needs to recognise when new capacity is needed.

Ofcom explained these new channels - which are already available for US internet users - will become available for UK citizens within the next few years. However, it is likely some developments will need to be made by equipment manufacturers to ensure devices support the new band.

Ofcom has had the biggest security breach in its history after an ex-employee was caught offering confidential data on TV companies to his new employee, a major broadcaster.

The incident forced the media watchdog to send out dozens of letters explaining the breach to TV companies holding an Ofcom licence. It is believed the former employee managed to download as much as six years' worth of data, according to the Guardian.

In a statement, an Ofcom spokeswoman said: "On 26 February we became aware of an incident involving the misuse of third-party data by a former Ofcom employee. This was a breach of the former employee's statutory duty under the Communications Act and a breach of the contract with Ofcom.

"Ofcom takes the protection of data extremely seriously, and we are very disappointed that a former employee has chosen to act in this manner. The extent of the disclosure was limited and has been contained, and we have taken urgent steps to inform all parties."

It is believed that Ofcom was informed of the breach by senior executives at the unnamed broadcaster. The broadcaster is not thought to have exploited the data, which would have been quite useful from a competitive standpoint.

As no personal data was involved, it is not compulsory for the Information Commissioner's Office (ICO) to be notified, although it is understood that Ofcom informed the watchdog of the incident anyway.

Mark Bower, global director of product management at HPE Security - Data Security, said the event illustrates that even with a strong network perimeter in place, it just is not enough.

"Perimeter security is similar to a fence around a house. However, what if someone inside the house is the thief? Today it's imperative that organisations adopt a data-centric security approach that defends the data itself, typically by encryption or tokenisation.

"This ensures that no matter where the data resides if a hacker gets it, or in this case, an employee who is granted legitimate access, the data is protected and isn't useful. This ability to render data useless if lost or stolen is an essential benefit to ensure data remains secure."

David Gibson, VP of strategy and market development at Varonis, said that low-level workers can access and make off with highly sensitive information, often without anyone knowing.

"To make matters worse, outsider attackers often hijack employee or contractor credentials and then have the same free access as insiders. Organisations have to start doing a better job of tracking and analysing how users use data, profiling their roles and behaviours, mapping and reducing unwanted access, discovering sensitive data and locking it down or moving it out of harm's way," he said.

BT has played down its control of Openreach amid calls for the subsidiary, responsible for rolling out fibre network across the UK, to be broken off from its parent company.

The telecoms firm said the fibre delivery company is "heavily regulated" and operates at "arm's length from the rest of BT", as industry regulator Ofcom seeks views on whether Openreach should be fully split from BT.

Its cables are used by BT but also leased to competitors to provide broadband and phone services, and Ofcom is considering fully separating the firms to ensure BT cannot discriminate against competitors.

However, in a company reshuffle following the acquisition of mobile provider EE, BT said Openreach would carry on as it is.

"Openreach will be unaffected by the re-organisation," BT said. "It provides all companies with equal access to BT's local access network in Great Britain and is heavily regulated with more than 90 per cent of its revenues coming from price regulated services."

Competitor TalkTalk and the Labour party supported a separation, and Ofcom is expected to make a decision next month.

If it does not instruct BT to drop its local access network, then it will likely impose tougher regulations on its dominance of the consumer broadband market.

Excluding Openreach, BT has split its business into five other branches to serve consumers, enterprise, the public sector and other industry players. Specifically, Openreach and its new Global Services division will provide wholesale services to other industry players.

Commenting on the restructure, Gavin Patterson, chief executive of BT Group, said: "The acquisition [of EE] provides us with a chance to refresh our structure and we have done that by creating a major new division that will focus on businesses and the public sector in the UK and Ireland.We want to support those sectors by offering customers the very best services whether that be dedicated private lines, network products such as fibre broadband, mobile solutions, IT services or cyber expertise to keep them safe.

"We will continue to offer many of these services to multinational companies and major overseas customers via our Global Services division. It is an important part of the company and this new structure will enable it to sharpen its focus on its key areas of strength."

BT's restructure will take effect from April.

BT also posted its results for the three months to December 31, which showed revenue rose three per cent to 4.6 billion.

25/01/2016: BT CEO opposes Openreach spinoff

BT's CEO Gavin Patterson has hit out at suggestions Openreach should be sold off, claiming it would create uncertainty in the market.

However, he admitted on the Today Programme on Radio 4 that Openreach, BT's arm responsible for rolling out fibre networks, needs to do more to provide broadband in rural areas and improve its business performance, following the publication of a damning report by British Infrastructure Group (BIG).

"Over 90 per cent of the UK can get super fast broadband today - which means that 10 per cent today cannot. Within the next 18 months that will only be 5 per cent and we are working with the Government to find ways to address the last five per cent," Patterson said.

"But even Department for Culture, Media and Sport and Ofcom have pointed out that we will get to 95 per cent of the UK by the end of next year."

The BIG report said that unless BT and Openreach are separated, they will "continue to paper over gaping cracks."

It added: "Whilst rural SMEs (small and medium-sized enterprises) and consumers are left with dire speeds, or even no service at all, Openreach makes vast profits and finds little reason to invest in the network, install new lines or even fix faults in a properly timely manner."

BT's operations have come under scrutiny over the last year, as part of Ofcom's Strategic Review of Digital Communications that is investigating into how the communications market is operating in the UK.

The regulator is considering splitting BT and Openreach to remove any incentive for the provider to discriminate against rivals, who rely on Openreach's fibre network that spans the UK to offer their own services to consumers.

Splitting BT and Openreach is not the only option Ofcom is considering other possibilities include allowing rivals to build their own networks, strengthening the existing model of functional separation', or making no changes at all.

The assessment also includes aspects such as pay TV regulation and broadband in rural areas, which has caused a great amount of controversy as BT, Virgin and Sky compete to become the leading broadband provider in the country.

19/11/2015: Ofcom lifts pay TV regulation as Sky-BT war continues

Ofcom has decided to remove the regulation requiring Sky to offer Sky Sports 1 and 2 on a wholesale basis, because the channels are available on other pay TV services on commerical terms.

Sky Sports is now available via commercial wholesale deals with various pay TV competitors, including BT, TalkTalk, and Virgin Media, as well as Sky's own NOW TV service, meaning the regulator deemed the stipuation to no longer be appropriate.

Ofcom has been looking at the pay TV market in the UK as part of the Strategic Review of Digital Communications, the first formal assessment of the sector for 10 years.

18/09/2015: Sky and BT have come to blows over the future of Openreach as Ofcom holds a 10-year review of the communications market in the UK.

In an opinion piece in the Telegraph, Mai Fyfield, Sky's chief strategy officer, accused BT of holding back the broadband market in the UK.

"BT's case for the status quo is built on unfounded or exaggerated claims about the benefits of vertical integration and the risks of separation," she said.

"Underinvestment by BT has led to unacceptable levels of faults and service problems that continue to affect consumers and businesses."

She added that creating Openreach as a separate division would be the only practical way of making sure the UK had proper investment in its broadband network.

"An independent Openreach would be a new, highly investable, FTSE 100 company that could catalyse the transformation of Britain's broadband infrastructure," she said.

"BT constantly emphasises that Openreach is entirely functionally separate, with its own assets, employees and accounts. So it is contradictory to argue that the next step of full separation is impracticable."

Her op-ed came hot on the heels of Openreach chief executive Joe Garner's article in the Telegraph, dated 13 September, in which he said that hiving off Openreach would be a "hugh mistake".

"Britain has gained, and will continue to gain, from Openreach as a part of BT benefiting from more investment, more coverage and more speed," he said.

"On investment, BT provides us with ready access to capital. BT's capital allowed us to meet the rapidly rising demand for internet services by rolling out superfast broadband which is, incidentally, 20 times faster than in 2005 and half the price."

24/08/2015: Labour has called for Ofcom to fully split BT from its fibre arm, Openreach, claiming the telecom giant is failing in its duty to bring high-quality broadband to UK homes.

The telecoms regulator is currently reviewing the state of the market amid concerns raised by BT's rivals that their access to the telco giant's vast fibre network suffers from poor service.

As a consequence, the watchdog is considering splitting BT from its fibre roll-out arm, Openreach, to remove the ability for BT to discriminate against competitors.

Writing today in the Telegraph, shadow culture secretary Chris Bryant urged Ofcom to pursue this option, claiming that under BT the UK's broadband rollout has been "too slow, too late".

He wrote: "The situation is now so bad that Ofcom's review should work on the presumption that Openreach should be split from the rest of BT unless their review produces conclusive evidence to the contrary."

Bryant's article comes after Ofcom launched a Strategic Review of Digital Communications, its first formal assessment of the sector for 10 years, which criticised Openreach for delays in providing superfast broadband to homes.

Under a government scheme called Broadband Delivery UK (BDUK), BT is aiming to deliver superfast broadband to 95 per cent of the UK by 2017.

But Bryant claimed the telco giant fears it won't reach the target until 2018 and also criticised the quality of broadband it is providing.

"What are Openreach and the Government delivering? Broadband that is too slow, too late," he said.

BT became the sole contractor for the BDUK project after Fujitsu dropped out and Bryant claimed this monopoly is not helped by BT owning Openreach, the arm responsible for delivering new fibre to homes and workplaces across the country.

Splitting BT and Openreach is not the only option Ofcom is considering other possibilities include allowing rivals to build their own networks, strengthening the existing model of functional separation', or making no changes at all.

However, Bryant said separating the telco giant from its division is the only one that would deliver benefits, while Ofcom believes it could lead to more focus on network investment and performance issues.

Bryant wrote: "It is right that Ofcom is now considering whether this provides an unfair advantage to BT and whether it should be split off in the interests of transparency and fair competition."

Ofcom itself needs to be "brought into focus", he argued, saying its ability to make big decisions is undermined by an "overly burdensome appeals process" that leaves its rulings vulnerable to companies with lots of money to spend on lawsuits.

BT has declined to comment on the matter and IT Pro was still waiting to hear from Ofcom at the time of publication.

A consultation period in which people can respond to the proposals put forward in Ofcom's review continues until 8 October.

Ofcom won't be intimidated by BT, says CEO

The news comes after Ofcom's CEO Sharon White told the House of Commons Culture, Media and Sport Committee in July that she has not come to a decision regarding whether BT should hive off Openreach.

She also said she would not be intimidated by any opposition by the provider or threats of litigation should Ofcom decide to separate the core BT operations and its Openreach internet offshoot.

"I can't say I'm easily intimidated, our drive is what's going to be the best possible deal for the consumer?" she said. "We don't start with a position that the Openreach separation is broken because if you look at how the market over the last ten years in which regulation has been a part of it, although most if it has been through the companies themselves, it's not a broken position."

She said she is happy to consider leaving the situation as is, splitting the company up into two and deregulating the current model.

"I would like to have an evidence-based conversation with BT and the other players about how we, for the next ten years, work towards a settlement that's best for the consumer," White added.

The fact BT owns Openreach means "it still has the incentive to discriminate against competing providers", according to the regulator.

It is now considering four different proposals under the Strategic Review of Digital Communications, one of which is to split BT and Openreach apart.

"This has the potential to deliver benefits, since it would address BT's underlying incentive to discriminate against competitors, and enable a simplified regulatory framework," said Ofcom in the report published in July.

"It may also increase Openreach's management focus on, and control over, network investment decisions and performance issues."

But such a decision would also be an intrusive and complex step for the industry as a whole, Ofcom admitted, with "substantial implementation challenges".

Other moves mooted include making no changes to the current regulations, strengthening the existing model of "functional separation", or allowing rivals to build their own networks.

Some operators, like Virgin Media, already do this, but Ofcom warned it would result in duplicated infrastructure.

White said in a statement: "This review is about ensuring people get the best possible communications services, wherever they live and work.

"Our priorities are clear. We want to promote competition, investment and innovation, so that everyone benefits from even better coverage, choice, price and quality of service in years to come."

BT believes Openreach separation would harm broadband investment

This is the first strategic review since 2005, which resulted in BT creating Openreach to separate itself from its network access division, and BT has warned that further separation would harm broadband investment in the UK.

However, Sky has called for Ofcom to pursue greater separation, with chief strategy officer Mai Fyfield today repeating a call for a full competition enquiry.

She said: "For too long, consumers and businesses have been suffering because the existing structure does not deliver the innovation, competition and quality of service that they need. We believe Ofcom should now move quickly to ask the Competition and Markets Authority (CMA) to undertake a full competition inquiry."

However, analysts do not believe the regulator will separate BT and Openreach, with such a move not necessarily the best one to deliver competition benefits to consumers.

Analyst Paolo Pescatore, director of multiplay and video at CCS Insight, said: "The big news here is the proposed break-up of BT. Many of its rivals have been lobbying hard for this for some time and they've clearly mounted enough pressure to raise concerns.

"The major focus of the latest strategic review of the digital communications market is all about how well competition is delivering benefits to consumers and businesses. With this in mind, it seems that a full separation is unlikely as stated by Ofcom."

Ovum's regulation analyst, Matthew Howlett, added that additional separation wouldn't necessarily solve competition issues.

"While Ofcom recognises there are challenges with Openreach, in particular in relation to service quality, it heavily suggests that further separation will not address these, and could ultimately be disproportionate," he said. "That's not to say that tweaks to the Openreach model aren't likely."

Pay TV

The review is taking place as the CMA considers BT's proposed 12.5 billion takeover of mobile operator EE, with BT set to offer landline, mobile, broadband and pay TV services if it is passed.

While rivals are trying to separate BT and Openreach, BT has responded by calling for a detailed review of the pay TV market.

Ofcom then announced in November 2015 that the regulation requiring Sky to offer Sky Sports 1 and 2 on a wholesale basis will be removed, due to the channels being available on other pay TV services on commerical terms.

Sky Sports is available through various pay TV competitors, including BT, TalkTalk and Virgin Media, as well as Sky's own NOW TV service, and the regulation was thus deemed to no longer be appropriate.

The pay TV market as a whole is being reviewed by Ofcom, with BT claiming the UK pays half a billion pounds more a year than the European average for such services.

However, Ofcom conducted an inquiry into pay TV just five years ago, when it forced Sky to provide certain channels to rivals, and is currently investigating its agreement with BT on this sharing set-up.

Still, a BT spokesman told IT Pro pay TV remains its focus, adding that Ofcom would find the broadband market to be "vibrant and healthy".

He also said: "There has been huge progress this past ten years with an explosion in competition and broadband usage. Consumers are getting more for less and the UK has outpaced its European peers in terms of superfast broadband.

"Much of that progress is down to BT investing billions of pounds in fibre at the height of the recession. That investment wouldn't have occurred had BT been split in two a decade ago and our ambitious plans for ultrafast broadband also depend on BT remaining intact.

"Ofcom have overseen a regime that has balanced investment with competition and we hope they will once again put the needs of the UK and its consumers ahead of those who have tried to keep the UK in the digital dark ages."

The watchdog's consultation is open to comments until 8 October 2015, before it publishes its initial findings in January next year.

This article was originally published on 16 July 2015 but has since been updated to reflect developments in the story, most recently on 25 January 2016.

TalkTalk claims BT will be more powerful than ever after its 12.5 billion takeover of EE was formally approved by the Competition and Markets Authority (CMA) today.

Go-ahead for the merger means BT can now develop a quad-play strategy, bundling up landline, mobile, pay-TV and broadband services for customers.

The CMA's seal of approval follows its preliminary decision to clear the merger in October last year, and it claimed today that the move would not kill telecoms competition in Britain.

Its inquiry chair, John Wotton, said: "The evidence does not show that this merger is likely to cause significant harm to competition or the interests of consumers.

"The retail mobile services market in the UK is competitive, with four main mobile providers and a substantial number of smaller operators. As BT is a smaller operator in mobile, it is unlikely that the merger will have a significant effect. Similarly, EE is only a minor player in retail broadband."

However, BT rival TalkTalk has hit out at the decision, claiming the move could lead to price rises of 25 per cent, if a similar proposed Three-O2 merger gets approval.

"We are disappointed, although not surprised," the company said in a statement. "It is dangerous that the regulator has looked at this merger in isolation, given the unprecedented levels of consolidation taking place in the wider telecoms industry.

"The UK has long been one of the most competitive markets in Europe, but if the Three/O2 merger also goes through, this would end. Moving from four to three mobile providers will lead to price increases of 25% or more."

The firm added: "Given BT Group's increased size and scale, the need to ensure that the UK's broadband infrastructure is not neglected is more important than ever, and we have every confidence that Ofcom will take this into account when considering the future structure of Openreach."

ITSPA, the trade association for "next generation" communication services, also expressed major fears for the future of the communications sector after the announcement.

Chair Eli Katz said: "The competitiveness of the UK mobile sector is a genuine concern for our industry, and threatens to harm consumers and inhibit UK growth.

"ITSPA already had serious competition concerns around the market and we had hoped the CMA would have considered potential wholesale mobile remedies in its final report, when approving the proposed BT/EE merger."

It claimed the CMA panel's opinions had been split over the merger's effect on the mobile market, lamenting that this was not reflected in the ruling.

Editor-in-chief of Cable.co.uk, Dan Howdle, pointed this out too, before adding: "The CMA believes the new merged company is, by default, financially incentivised to continue to supply wholesale services to other providers (Virgin Mobile, for example runs on the EE Network), which will prevent it from closing its doors to third-party operators in an attempt to monopolise its own network infrastructure.

"The greatest concern for its competitors, then, is that, though unlikely as the CMA points out no firm measure has been put in place to actively prevent it.

Regulator Ofcom, which did not see any issues with the deal prior to the CMA's approval, simply said:"Ofcom has worked with the CMA on its review. We provided evidence and analysis about the effects of the deal, which the CMA has taken into account in its final decision."

BT now faces integration challenges

BT's CEO, Gavin Patterson, welcomed the announcement, saying: "The combined BT and EE will be a digital champion for the UK, providing high levels of investment and driving innovation in a highly competitive market. I have no doubt that consumers, businesses and communities will benefit as we combine the power of fibre broadband with the convenience of leading edge mobile services. I look forward to welcoming EE into the BT family".

While it plans to close the deal on 29 January, analysts have warned the firm faces several of its own difficulties now the agreement has official endorsement.

Saying it is inevitable that BT will rebrand EE, CCS Insight analyst Kester Mann added: "A greater priority for BT will be the complex task of reworking back-end and billing systems as it merges the UK's largest fixed-line and mobile operators, and only then should it start to articulate changes to consumers.

"BT's legacy association with fixed-line services could be a challenge for the company's mobile ambitions in the consumer market."

NIIT Technologies has won a 23 million, four-year contract to supply communications regulator Ofcom with IT services and support.

NIIT will help the watchdog manage its infrastructure and application systems as well as offer a customer-focused service to improve user experience.

Ofcom's new IT partner has also been tasked with implementing a dedicated service that is tailored to the needs of the regulator, which operates as a watchdog for print, radio, television and digital media.

To begin with, NIIT will provide Ofcom with key services including a service desk, datacentre services, application management and product management.

The 23 million value of the contract is to be awarded over a six-year period, and includes an initial term of four years, plus extensions.

Satya Samal, head of Europe at NIIT Technologies, said: "We are confident that we will be able to deliver value to Ofcom through our strong understanding and proven capabilities in the application and infrastructure management services domain."

David Doherty, ICT Director at Ofcom, added: "We set out to select a partner who will align well with our organisational culture, manage transition smoothly, provide a robust technical solution and focus on innovation.

"NIIT's solution for Ofcom fits well to these needs and we look forward to working with the company over the coming years."

A new report has revealed that around half of the UK's rural areas are still receiving broadband speeds of less than 10Mbps.

The figures, which come from communications watchdog OFCOM, show that 1.5 million consumers in remote areas are still stuck with sub-par connectivity.

48 per cent of rural consumers receives less than 10Mbps, while one in five has less than 5Mbps.

The problem is particularly pronounced in Scotland, where the report states that 57 per cent of these premises with poor broadband are located.

The government is aiming to address these concerns, with a 530 million scheme targeted at achieving 90 per cent superfast broadband coverage in rural areas as part of the Broadband Delivery UK initiative.

"Expanding superfast broadband to 95 per cent of the UK and beyond, and ensuring a minimum Universal Service Obligation, will be key to the Government's stated aims to expand the UK economy beyond major cities," said Neil Fraser, Satellite Programme Lead at ViaSat UK.

"Continuing to invest in the right mix of technologies to provide truly superfast internet access to everyone who might want it, and at a cost the nation can afford, it is a vital part of that," he stated. "Otherwise, the UK will face a sharp divide between the broadband haves and have-nots."

OFCOM calls speedy internet one of the "essential enablers of our working and social lives", and says that "a download speed of at least 10Mbps is necessary to deliver an acceptable user experience".

The report also shows that British consumers' average monthly data use has risen 41 per cent in the last year, and is now around 82GB per month.

However, the quality of service from internet providers is only part of the picture. OFCOM says that in over 75 per cent of households with poorly-rated broadband connections, part of the problem lies with the quality (or lack thereof) of their networking equipment.

In order to help address this, the organisation has produced an app, to help users determine whether their WiFi problems are being caused by their router rather than slow broadband speeds.

Mobile users may end up paying more for calls to certain premium rate numbers after mobile phone operators increased access charges to these numbers.

The call increases have come after Ofcom moved to make call prices more transparent by separating service and access charges in July this year. While the move was supposed to make things clearer for mobile users, it has had the consequence of mobile operators raising charges.

These service numbers are used by organisations for business purposes, especially for popular TV shows, such as Strictly and X Factor.

While businesses set the service charge, mobile operators set the access charge. This November sees mobile operator Three increase access charges by as much as 80 per cent with an access charge of 45p per minute for each call to a service number. This figure was previously 25p per minute.

Calls to Strictly Come Dancing currently cost 40p but will rise to 80p in November.

In August, O2 and Vodafone increased their access charges following Ofcom's new policy. At the time, the regulator said the separation of charges would benefit consumers.

An Ofcom spokeswoman said that as some prices have changed, people should "shop around for a tariff that's right for them."

"Phone providers are now offering a range of pricing options for these numbers, including per-minute access charges as low as 1p per minute," she said.

"Ofcom actively encourages organisations to use 03 numbers, which we set up to cost no more than a normal 01 or 02 number. They must also be included in a customer's inclusive minutes and discount schemes in the same way."

Ernest Doku, telecoms expert at uSwitch.com, said that since the new system was introduced by Ofcom in July, some charges have increased by 96 per cent.

"Ofcom's new system relies on people keeping an eagle eye on what they will be charged before they pick up the phone.

"The charges are meant to be more transparent than before, but with significant price hikes since the new system was introduced, consumers need to be savvy to make sure they are not left out of pocket."

Ofcom has released details of its complaints data for broadband, landline and mobile network services in Q2 2015.

The report has revealed EE's performance was the least impressive, with Ofcom receiving the most complaints about its broadband and landline services.

The company failed to make the landline switching process as easy as it should be, according to the data, while other customers complained there were too many faults and their complaints were not handled effectively, further infuriating them.

EE's broadband services also had too many faults according to 40 per cent of its customer complaints, while billing, pricing and charging generated 20 per cent of its issues.

In the mobile network stakes, Vodafone topped the table, having the most complaints out of any UK mobile carrier for the third year in a row. Customers were unhappy about the company's billing, prices and charges policies (34 per cent), complaints handling (27 per cent) and concerns about faults, service and provision (17 per cent).

O2, Tesco Mobile and Three UK all received fewer complaints than the industry average, but it wasn't such good news for Virgin Media, which saw its Ofcom complaints increase year-on-year.

"Our complaints data allow consumers to make meaningful comparisons that can be useful when looking for a new provider," Claudio Pollack, Director of Ofcom's Content and Consumer Group, said.

"While it's encouraging to see a continued decrease in the total number of complaints, there is still room for improvement. We expect providers to make customer service and complaints handling top priorities."

Ofcom has launched its own mobile coverage checker, allowing you to find out where you have signal, whether you are indoors or outdoors.

The online tool enables anyone, whatever network they use, to find out the quality of the phone signal where they live, in their place of work or areas they may be visiting in order to choose the best network for them.

Ofcom's mobile coverage checker allows users to add information about data speeds where they use their phones in addition to the mapping data provided by EE, O2, Three and Vodafone.

"Access to reliable mobile phone coverage used to be a 'nice to have'. Now it's essential to many people's lives," Steve Unger, Ofcom's Chief Technology Officer, said. "We believe our map is the most comprehensive tool available to consumers and businesses to check mobile coverage. We're encouraging people to feed back after using the map, so we can continue to improve its accuracy."

Ofcom said its tool is a response to demands from consumers who want to make their choice of mobile provider based on the service they will receive at home and at work. Consumers expect a reliable service, it said and as people increasingly move to using less-effective smartphones with internal aerials, it is important Ofcom ensures they can make an educated decision about which network to go with.

Each area on the map is ranked according to how strong the signal is and is colour coded to make the difference in strength clear to see.

The map shows information including voice and data services, coverage in buildings and topographical information where there may be natural obstructions such as valleys or hills.

Smartphones are now more popular than laptops as a way to get online, according to Ofcom.

One-third of UK internet users view their mobiles as the most important way to surf the web, compared to 30 per cent sticking with their laptops, research from the telecoms regulator published today showed.

And two-thirds of people now own smartphones, using the devices to browse the net for nearly two hours everyday, compared to just over an hour for laptop and PC users, according to the 2015 Communications Market Report.

Ofcom claimed its latest survey marks a momentous change in device popularity in the UK, when in 2014 just 22 per cent used their phone as their primary means of getting online, and 40 per cent chose their laptops.

"This is a landmark shift," said Jane Rumble, Ofcom's director of market intelligence.

"You can see these devices are becoming more and more an important vital hub of information and communication throughout the day, with smartphone owners spending almost two hours (on them) each day, almost double the amount of time that those people are spending on their laptop or desktop," she added.

Ofcom's figures suggest that 16 to 24-year-olds are the catalyst for this rise, with 90 per cent owning smartphones, but 55 to 64-year-olds are fuelling the increase as well, with 50 per cent now owning smartphones, compared to just 19 per cent in 2012.

However, Rumble said: "Those aged 16 to 24 are much more likely, as well as 25 to 34, to say their smartphone is the most important device to get online, whereas for the older age groups, they are much more likely to be sticking with their laptop."

4G

Ofcom credited the growing UK coverage of 4G for the boost in popularity of smartphone connectivity, saying 4G tariffs rose from 2.7 million to 23.6 million over 2014.

Now, nearly 90 per cent of UK premises have at least one 4G mobile broadband service available to them, while four in 10 consumers can choose between offers from EE, O2, Three and Vodafone.

Ofcom rules mean that 98 per cent of premises will have an indoor 4G signal from at least one operator by 2017, and the regulator will publish maps in the coming months to allow people to check their area's 4G coverage.

Sharon White, Ofcom chief executive, said: "Today's report shows just how important reliable, fast internet access is to millions of consumers and businesses. Improving the coverage and quality of all communications services across the UK is a priority for Ofcom, for people at work, home or on the move."

Those with 4G tend to do more with their smartphones online than those without, according to the watchdog.

For instance, 55 per cent of 4G users shop online compared to 35 per cent without 4G, and 55 per cent of 4G users use mobile banking, compared to 33 per cent of non-4G subscribers.

But they even watch more TV and video clips online (57 per cent compared to 40 per cent) and make more video calls and voice calls over the internet (28 per cent compared to 20 per cent).

They also send more photos and videos via text (49 per cent versus 36 per cent) and instant messages via services like WhatsApp (63 per cent compared to 50 per cent).

James Thickett, Ofcom's director of research, said: "4G has supercharged our smartphones, helping people do everything from the weekly shop to catching up with friends with a face-to-face video call."

Overall, people told Ofcom their time online is a good thing, with 64 per cent of adults going online saying it helps them keep up with current issues, while 60 per cent say it is a way to stay in touch with friends and family.

Ofcom's plans to make it easier to switch between mobile operators would benefit new and loyal existing customers, it is claimed.

The regulator wants to tackle problems users face in changing their mobile network provider by simplifying the process, and today released a consultation document on the issue.

Currently users changing their network who wish to keep their current number must obtain something called a PAC code from their previous provider and pass it over to their new provider to switch their number across.

Under Ofcom's proposed update, however, the customer's new provider would be responsible for shifting their number across themselves.

Dan Howdle, editor-in-chief of mobile comparison service Cable.co.uk, said such a change would shake up the entire mobile operator industry, changing the way companies reward customers.

"Since switching currently involves contact with the provider they're leaving, customers often face a barrage of questions from providers trying to find an in' with which to change their mind," he said.

"Frictionless switching will even the odds among UK mobile providers, creating a better, fairer marketplace and allowing customers to take advantage of the best deals.

"That, in turn, will shift the focus of special offers and limited deals from being primarily aimed at new customers to being equally shared among those who remain loyal."

Ofcom's consultation document said that fewer people are switching providers, with fewer even bothering comparing providers, either.

Just six per cent of customers switched their mobile operator in 2014, down from nine per cent in 2013, according to the watchdog's statistics, and half have reported problems during the process.

The report added: "We believe that the current switching arrangements are likely to generate unnecessary harm for customers. This is true whether or not they choose to port their number."

Those issues include the length of time switching can take, confusion over multiple ways to switch providers, overlapping contracts, and slamming' when a customer is switched to a new provider without their consent.

While another proposed option could see users simply text their old provider for their PAC code, Richard Neudegg, regulation expert at uSwitch.com, said making a new operator responsible for switching is the best way to overhaul an "archaic process", a step that could also revolutionise other industries.

"It is frustrating that it remains unnecessarily difficult and time consuming to swap mobile providers when 93% of us now own mobile phones," he said.

"Mobile has been left with an archaic switching process. With some providers, you even have to ask them to unlock your handset first. However, mobile is just one part of the bigger picture. Ofcom made changes to switching broadband in June, which improved the experience for some customers.

"However, these didn't apply to mobile, pay TV or Virgin Media's broadband network, so there is still plenty of room to shake things up there too."

What happens next

The watchdog will follow up its consultation document with a consumer survey, the results of which it will publish in spring 2016 if the survey suggests there are problems with the current process, another consultation will take place on how to address the issues.

For now, Ofcom wants feedback on its current document outlining its proposals, and people can find out how to submit their opinions here.

Best providers

The news comes on the same day as a RootMetrics survey found EE to be the top UK mobile operator for the first half of 2015, offering the best combination of speed and reliability.

The provider, which now has 10.9 million 4G customers, ranked top in the network performance analysis organisation's research, being the only operator to hit the 20Mbps threshold for median download speeds.

EE came top in 21 out of 24 awards, and tied the remaining ones with rival Three, tying on network reliability in Scotland and Wales.

Vodafone improved its overall ranking to come second, ahead of Three, in the network speed category, while O2 finished last overall in the UK, though RootMetrics predicted it will improve as its 4G network expands.

"EE is continuing to come out on top for mobile performance, but there is a heated and often close battle with the other operators," said Chris Smith, RootMetrics's general manager for Europe.

"We want consumers and network operators to look at this report and use it to inform purchasing decisions and understand the areas where improvements can be made."

Ofcom has fined EE 1 million for failing to give customers adequate or accurate information regarding its customer complaints process.

The fine is one of the biggest Ofcom has issued over poor customer service.

The regulator found that between July 2011 and April 2014, the mobile firm misled customers making complaints, by failing to send out written notifications to that referenced customers' rights to take their complaint to an alternative dispute resolution (ADR) eight weeks after they first raised their complaint.

Ofcom added that EE also "failed to state in its Customer Complaints Code that, where relevant, customers could access its ADR scheme by requesting a deadlock letter'".

"A number of customers who had requested a deadlock letter' during this time were not sent them as required, and in some cases customers were told by EE that letters of this type were not issued," Ofcom said in a statement.

The firm also neglected to tell customers that they could use its ADR scheme for free.

Claudio Pollack, Ofcom's consumer and content group director, said: "It's vital that customers can access all the information they need when they're pursuing a complaint.

"Ofcom imposes strict rules on how providers must handle complaints and treats any breach of these rules very seriously. The fine imposed against EE takes account of the serious failings that occurred in the company's complaints handling, and the extended period over which these took place."

In a statement, EE said that while it made no excuses, it has "identified issues" in its complaints handling in 2013. "We have made considerable improvements since then," it said.

"Ofcom's current figures highlight that complaints into Ofcom about EE have fallen by 50% in the past year alone and, while even one complaint is one too many, we're working tirelessly not only to improve the handling of complaints but also to identify root causes, and fix problems customers have with us, to ultimately achieve our goal of offering the best service in the market.," the mobile operator added.

Richard Neudegg, regulations expert at uSwitch.com, said that the size of the fine showed how seriously Ofcom was taking failure to follow rules on complaints.

"If telecoms companies don't resolve consumers' issues internally, people have a right to contact one of two free-to-use resolution schemes to get things sorted," he said.

"Access to an Ombudsman is of huge importance. It gives people who feel they've been let down by a service provider another route to resolution."

"Part of the problem is the telecoms market's complaints procedure is more confusing than other sectors. There isn't one single Ombudsman, there are two that companies may direct customers to. So it's extremely important information on how to access these is completely clear."

BT is in the process of buying EE for 12.5 billion, but the merging of the firms may create the worst customer service department in telecoms, according to an Ofcom customer satisfaction survey released in May.

EE was the mobile network with the most complaints for two of the past three quarters in 2014, while BT suffered the most complaints as a TV provider.

For many businesses, communication is the lifeblood of the organisation. Without a means to connect with colleagues, things can quickly grind to a halt.

Mobile communication is key, especially when needed to contact salespeople on the road. Two of the main mobile network operators, EE and O2, have services geared up for business. We breakdown what's on offer.

4G coverage

One of the key focuses of EE is its 4G service. It had a head start on rivals when Ofcom allowed it to use 2G spectrum for 4G services. EE covers 81 per cent of the UK with its LTE service, compared with 66 per cent for O2. (Source: Ofcom)

Data Speeds

EE, like its rivals has undergone a series of tests to determine the average speed of its 4G service. According to this Ofcom report, EE managed average speeds of 18.6Mbps while O2 managed 13.9Mbps. For 3G the tables are turned with EE managing 4Mbps for 3G downloads compared with 6.6Mbps for O2.

Data Allowances

Both EE and O2 offer data allowances of up to 20GB. Neither offer unlimited data plans. The lowest allowance between the two comes from O2 with a plan that offers a paltry 100MB, EE offers 250MB at its minimum.

Reach

EE covers around 200 towns and cities in the UK with its 4G network since its launch in the UK in October 2012. O2 launched its 4G network in the summer of 2013 and now covers 191 towns. Despite this near parity in the number of urban areas covered, O2 clearly covers a low proportion of the British population than EE at 66 per cent of the UK versus 81 per cent respectively.

Plans

If you want a new phone from EE, you will have to commit to a 24-month contract, while SIM-only deals can be bagged for 12-months or a 30-day rolling contract.

O2 also stipulates 24-month contracts for those wanting new phones. However, its O2 Refresh gimmick allows users to upgrade early by splitting the tariff into an Airtime Plan and a Phone Plan. To upgrade, you pay off what's left of the Phone Plan and select a new mobile with a new Phone Plan. O2 also offers SIM-only plans on a 12-month or 30-day rolling basis.

Customer Service

According to Ofcom's Customer Satisfaction Survey, EE achieved an overall score of 69 per cent, while O2 managed a score of 78 per cent. The average mark was 73 per cent.

Other features

EE has a Film Store that offers movies available to watch on demand. It offers customers the chance to buy tickets for England football matches and live music events before the rest of the general public.

O2 has Priority Moments that features exclusive deals for its customers. These include discounts for shops and restaurants. The app also offers access to popular Channel 4 shows 48 hours before they air on TV. It also offers tickets to gigs 48 hours before the general public.

Verdict

While EE arguably has the most extensive 4G network in terms of speed and coverage, O2 has more budget-friendly deals.

A watchdog today agreed to fast-track its antritrust probe into BT's proposed 12.5 billion takeover of EE, warning it could harm competition in the UK.

The Competition and Markets Authority (CMA) said there is a "real risk" of the acquisition damaging the rivalry between mobile operators in the UK, and that of fibre operators.

Its decision to move to phase two of its investigation follows BT's original request for the case to be fast-tracked last month, and the CMA admitted third parties have raised "significant competition concerns" with it over the deal.

If BT's acquisition of EE is approved, it will offer a quad-play service comprising pay-TV, landline, mobile and broadband.

Andrea Coscelli, the CMA's executive director of markets and mergers, said: "Together [BT and EE] will have a strong presence in many telecommunications markets.

"They also supply important inputs at the wholesale level, which enable other communications providers to compete at the retail level in the provision of mobile services.

"We have found that there is a real risk that the merger could reduce their incentives to supply these inputs and that this could have a detrimental impact on the retail mobile market."

The CMA added in a statement: "It gives rise to a realistic prospect of a substantial lessening of competition in relation to the supply of wholesale access and call origination services to mobile virtual network operators and fibre mobile backhaul services to mobile network operators in the UK."

Third parties are invited to comment on the takeover during the more in-depth phase two of the investigation, now set to begin following an initial request for comment during phase one.

The next stage will be overseen by a group of independent panel members, said the CMA, and will examine a wide range of issues.

While common in some European countries, BT's quad-play offering would be the first of its kind in the UK.

However, other telcos are following suit, with Three owner, Hutchison, proposing to buy O2 from Telefonica for 10.25 billion.

Vodafone is also understood to be in discussions with Liberty Global over a possible merger, according to The Telegraph.

The CMA's decision to fast-track the proposed acquisition comes after Ofcom decided last month that BT should open up its dark fibre network to rivals.

Such a move would see smaller fibre providers be able to rent leased broadband lines from BT, but use their own equipment, instead of buying compatible hardware from BT, to light' the cables.

This would enable companies renting the lines to create their own tailored, high-capacity data services to compete with BT's.

BT presented its case to the CMA earlier this month, after rumours of the takeover had been circulating for several months. Issues raised by rivals such as Sky, TalkTalk and Vodafone, however, point to the possibility that BT and EE combined would exceed the radio spectrum limit imposed by Ofcom.

To avoid this becoming a barrier, it is expected that BT will give up a portion of its spectrum in order to ensure the deal goes through. More 800MHz frequency could then be bought to improve 4G coverage.

Gavin Patterson, chief executive at BT, told The Guardian: "BT's acquisition of EE will be good for consumers, businesses and UK plc, as well as for BT shareholder, so we are keen to regulatory clearance. A larger BT will be able to invest and innovate even more than now, something that's good for jobs and good for customers."

The fast-tracked approval process has been used before when Thomas Cook and the Co-operative Group merged in 2011, and now BT is hoping that it can push things through in the same way.

This article was originally written on 19/05/15 but has been subsequently updated (most recently on 09/06/15) to reflect the latest developments in the story

More than half of UK households now use tablets, up from just two per cent in 2011.

This is according to Ofcom, which hailed the influence of Apple's iPad since its launch five years ago in changing the way we connect to the web, saying two-thirds of people aged 35-54 now own tablets.

Meanwhile, almost three-quarters (71 per cent) of children aged five to 15-years-old had access to a tablet at home by the end of 2014, compared to just over half (51 per cent) at the end of 2013, the regulator's research found.

Kate Reeve, director of consumer research at Ofcom, said: "In just five years, tablets have become a must-have device for millions of UK households.

"We're using them to catch up with the news, watch our favourite soaps and keep the kids entertained."

In fact, around one in three five to 15-year-olds have their very own tablet, as do 11 per cent of toddlers, according to the study, which was conducted in February but which was only released this week.

But security expert Marta Janus, from Kaspersky Lab, warned that parents must educate children about the risks of cyber bullying as they use tablets more and more.

"The problem is that many parents assume that cyber-bullying only becomes a problem when children start using social media platforms like Facebook and Twitter," said Janus.

"However, the reality is that children as young as five are in fact using platforms where they can receive messages and interact with others, such as shared school platforms, social games, and even photo-sharing sites such as Instagram."

Apps and games

While smartphones remain the dominant device for gaming, with 26 per cent playing games at least one a week, tablets aren't far behind.

A total 15 per cent of adults play games like Angry Birds, Halo and Candy Crush on their tablets, compared to 17 per cent who still use dedicated gaming consoles.

Almost one in four 16-24-year-olds regularly play games on their tablets.

Apps are the most popular interface on tablets, with 86 per cent using them, according to Ofcom.

Of these, 48 per cent use news apps, compared to 37 per cent who access news sites via their browsers.

But 61 per cent browse the web for general information enquiries, as opposed to 25 per cent who use apps.

More than one in three adults use their tablets at home, and just 15 per cent take their tablet when they're not at home, work or a place of study.

By 2016, Ofcom predicts 74 per cent of 16-54-year-olds will use tablets, as well as 44 per cent of those aged over 55.

This is a huge rise on 2011, the second year of tablet computing, when just two per cent of 16-54-year-olds and one per cent of those aged over 55 used the devices.

BT has warned it could scale back its roll out of superfast broadband if Ofcom compels it to sell off its network arm, Openreach.

The telco giant's CEO, Gavin Patterson, told the Financial Times that without Openreach, its department in charge of broadband, it would be less inclined to expand its coverage.

He said: "It would be difficult to convince the board of BT to invest."

Industry watchdog Ofcom is considering BT's proposed 12.5 billion takeover of mobile operator EE, as BT pushes to become a quad-play provider of broadband, pay-TV, landline and mobile services.

But it's invited rivals like Sky and Talk Talk to comment on the acquisition, as it decides whether or not it's anti-competitive, and they are likely to ask for greater access to BT's UK-wide network, and possibly a break-up of BT's assets.

At the same time, Ofcom is performing an "overarching review" of Britain's communications landscape, focusing on competition, investment and innovation.

The regulator wrote in a report about the review: "In light of market developments and outcomes, might it be necessary to vary the existing model of functional separation for Openreach?"

BT is currently expanding superfast broadband coverage to 95 per cent of the population by 2017 under the government's Broadband Delivery UK project.

The rural rollout has come under scrutiny from MPs over an alleged lack of competition, after Fujitsu dropped out of the running to leave BT to sign all 26 contracts up to June 2013.

Guest editor's view

TechUK CEO Julian David says: Private investment and a competitive market have been crucial to developing the level of connectivity the UK benefits from today. However, there is still work to be done to improve access and speeds in rural and urban areas. Industry needs a supportive regulatory environment if we are to deliver the ultrafast speeds the Conservatives committed to in the budget in March. A review is timely but it must focus on what is practical and will work to get the highest level of investment in digital infrastructure.

Internet usage has doubled in the last decade, an Ofcom study has revealed.

People aged over 16 now spend an average of 20 and a half hours online every single week, compared to nine hours and 54 minutes a week in 2005, the regulator said.

Those aged between 16 and 24 spend the most time online, clocking in at 27 hours and 36 minutes at the end of 2014. This compares to 10 hours and 24 minutes a week ten years ago.

The reason for this huge jump is the growing popularity of smartphones and tablets, meaning almost anyone can get online from anywhere.

According to the watchdog, only 30 per cent of adults owned a smartphone in 2010, yet 66 per cent of us now have one.

Similarly, only five per cent of adults used a tablet ten years ago, but 14 years later 39 per cent use a tablet to surf the internet.

The most popular internet activities include watching videos, playing games, IM and social media. In fact, now mobiles are the most popular way to pass time by playing a game, replacing the console

Double the number of people are watching videos on their mobile device too. The number of people using a mobile to watch video content has increased from 21 per cent to 39 per cent of internet users.

Free messaging platforms such as Facebook Messenger, WhatsApp and Viber has driven an increase in the number of people using social networks on their mobile, with usage tripling since 2007.

The research would go some way to justifying a digital single market to build regulatory framework that aims to give everyone the same access to online services, wherever they reside in Europe.

Guest editor's view

TechUK CEO Julian David says: This huge increase in internet usage demonstrates just how crucial the digital economy is to all our lives, but this is just looking at people interacting with the internet. Over the next 10 years there will be an equal or even greater explosion of internet usage by things - cars, trains, buildings, bridges, you name it - as the UK becomes a smarter country. So we need a step change in Infrastructure Investment to support this and keep the UK as the leading internet economy.

Data volumes created by the Internet of Things (IoT) means businesses must invest in datacentres as a priority, analyst firm IDC has warned.

The research firm thinks workloads will increase by 750 per cent in the next four years and this will put immense strain on existing infrastructure.

Rick Villars, vice president, datacentre and cloud at IDC, said: "Equal, or even greater, investments in the IoT platform services residing in the datacenter will be instrumental in delivering the IoT promise of anytime, anywhere, anyhow connectivity and context.

"Given the number of devices connected and the amount of data generated, businesses must focus on their IoT service platform requirements at the level of the datacenter itself, not just the individual servers or storage devices."

Additionally, IDC said in its Impact of Internet of Things on Datacentre Demand and Operations study that all this extra data will need to be analysed, placing analytics at the heart of hyperscale datacentres.

As the IoT emerges as the leading driver of new compute/storage deployments, enterprises and service providers are most are likely to feel the burden of establishing new ways of managing devices and the data the IoT will generate.

However, IDC thinks service providers will adopt IoT technologies and services to better monitor and manage their own datacentre assets, providing a great opportunity for the sector.

In January, Ofcom and the government announced they would develop guidelines to regulate the IoT. The two think the number of devices classed as IoT will carry out more than a billion transactions every day by 2022.

Working together, they are attempting to address other concerns caused by this influx of new devices, including freeing up spectrum on which they can operate.