Alternative telecoms operators in the United Kingdom believe they will become the "poor relation" to the broadcasting industry under the new converged regulator Office of Communications (Ofcom). And they believe that the advent of Ofcom will make structural separation of incumbent BT, deemed by them as critical for effective competition, even less likely.

"You can see the huge disproportionate focus on broadcast issues," said David McConnell, director of public policy and political liaison for Cable & Wireless plc, of London, speaking at a meeting of the Telecom Executive Network "There is a fear that regulation will become ineffective [under Ofcom]."

The U.K. television market was worth a total of [pounds sterling]7.9 billion in 2001, according to the Independent Tele vision Commission (ITC). The U.K. telecoms market was worth more than [pounds sterling]40 billion.

"It's important to note that our voices could be diminished," said Jonathan Watts, managing director of Colt Telecom, of London.

Ofcom will merge five U.K. regulatory bodies: the Broadcasting Standards Commission, the ITC, the Office of Telecommunications (Oftel), the Radiocommunications Agency and the Radio Authority. But telecoms operators believe the government is preoccupied with broadcast, threatening their competition with BT.

Furthermore, alternative operators are still saying that the only way to ensure competition is to separate BT's network from its service business, and they want this discussed by the government in a public forum, such as an investigation by the Competition Commission (see CWI, 21 May 2001, p. 1).

"I want the government to look at structural separation," said Colt's Watts. "I would like the government to refer BT to the Competition Commission. [Otherwise] BT has won. They have the market all to themselves,"

But the chances for separation are diminishing as the agenda for Ofcom is being dictated by broadcasters, say telecoms operators. Issues like local loop competition are in danger of being forgotten by U.K. policymakers. The operators cite news coverage of Ofcom, which has been dominated by the implications for broadcasters since the new regulator was proposed.

"It's extremely worrying what Ofcom's policy is going to be at the moment," said Collin Long, a partner in the law firm Olswaing, in London. "There is a great danger of an atrophy of policy...and a great deal of uncertainty while policy freezes in the transition [to Ofcom]."