Ofcom draws a blank with business

Just one in ten businesses can name the media and telecoms super-regulator

Two thirds don't know about Ofcom's pending Telecoms review, and its implications for broadband uptake

Voice of business overlooked in Ofcom's review

A new survey released today suggests that Ofcom, the new media and telecoms super-regulator, has struggled to engage with many of the businesses upon whose competitiveness its rulings could impact.

The survey findings will make alarming reading for Ofcom's policy-makers, as they look to publish this week the conclusions of their year long inquiry into the health of the UK fixed-line telecoms sector, the 'Strategic Review of the fixed-line telecoms sector, Phase Two'.

Just one in ten of 200 businesses with between 50 and 250 employees surveyed by Continental Research for Viatel, the pan-European business communications company, could name Ofcom as the UK telecoms regulator in a prompted survey.

Elsewhere...

    * 34% thought that Oftel, Ofcom's predecessor which ceased to exist in December 2003, was still the industry's regulator.

    * One in two simply didn't know.

    * 5% of businesses surveyed named BT, the former monopoly-state telecoms company and still the biggest provider of telecoms services to the UK business market, as the industry's regulator.

Moreover, two thirds of businesses surveyed had no idea of the existence of Ofcom's Strategic Review of Telecoms. This raises questions about how effective Ofcom has been at engaging with business.

Of the 79 submissions to Phase One of Ofcom's consultation on its Strategic Review, which closed in June, none were made by businesses using telecoms services. Larger businesses were represented by a submission from the Confederation of British Industry, and the interests of consumers were represented through Ofcom's own Consumer Panel. But the voice of small and mid-sized business, which often rely on telecoms services to boost productivity, was conspicuous by its absence.

This is a disconcerting disconnect, because better regulation of telecoms in the UK could prompt freer and fairer competition in the provision of services such as broadband internet connections. And this could ultimately impact the productivity and competitiveness of the businesses which rely upon these services.

Of the businesses surveyed for Viatel, 62% already have a broadband internet connection, and a further 21% had considered having one installed in the last 12 months. Better competition in the provision of such services would clearly benefit such businesses. But unless Ofcom can help shape the market to engage more businesses with broadband, Government targets for 'Broadband Britain' could suffer.

When prompted as to the existence of the Strategic Review, 43% of businesses surveyed said that they felt the outcome of such a review would have a day-to-day impact on the running of their business.

As it stands, Ofcom's consultation document does provide an accessible Plain English version. But many businesses have still not engaged with the potential significance of the review to their ultimate profitability.

Lucy Woods, CEO of Viatel, commented,

"Ofcom has spent, rightly, a deal of time talking to the larger telecoms companies upon whom its review could impact. But where is the voice of small and mid-sized businesses in this review?

"These businesses are the lifeblood of the UK economy- the wealth creators. And they all depend on telecoms services in some shape or form.

"For whatever reason, these businesses have failed to engage with a piece of regulation that could ultimately impact their bottom-line. It is not a question of blame - but clearly this communication gap needs to be made good."

Headed by former CEO of WorldCom EMEA, and BT Northern Ireland, Lucy Woods, Viatel was refinanced with $52m of funding earlier this year with a mission to champion the often-neglected needs of Europe's mid-sized businesses. It has built its brand on a jargon-free, 'No Bull' approach to business. At the same time, Viatel has launched a range of innovative services aimed at mid-sized businesses such as 'bonded broadband', a same-speed, half-cost replacement for leased-line technology and a market first - making high-speed broadband an affordable reality for mid-sized businesses in regional towns in particular.

18/11/2004

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Notes for editors

Ofcom's Strategic Review of the fixed-line telecoms sector is expected to report on its findings of Phase Two of its consultation in mid-November 2004.

About Viatel

Viatel is a pan-European business communications company operating across 6 European markets, including the UK, France and Germany. It has more than 10,000 business customers, providing them a range of business communication services that range from simple broadband connectivity to International Ethernet, from Hosting to more sophisticated IP network services Headed by Lucy Woods, formerly of WorldCom EMEA and BT, the company employs 200 people throughout Western Europe.

For further information on Viatel, please visit

www.viatel.com

For further information please call:

James Ralph or Chris Jones on +44 (0)20 7340 0430

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