According to the DTI, universal access to high quality services and deregulation to promote competitiveness and investment in the telecoms and media sector are the key principles of the legislation.
The Act's main provisions include the:
Transferral of functions to a single powerful regulator – the Office of Communications (OFCOM) - replacing the existing five regulators (the Independent Television Commission, Radio Authority, Office of Telecommunications, Broadcasting Standards Commission, Radiocommunications Agency).
Introduction of a new, more coherent structure for commercial broadcasting regulation in the digital age, allowing greater freedom to public service broadcasters to regulate themselves, and protecting the rights of both consumers and citizens.
Reform of the rules on media ownership. There will be significant deregulation to promote competition and investment, and a few core rules will be retained to protect diversity and plurality. In particular a "plurality" test for media mergers will further safeguard these public interests.
Removal of the requirement for licensing of telecommunications systems - removing about 400 licences, and replacing them with a new regulatory regime for electronic communications networks, services and associated facilities in line with EC Directives. These provisions will take effect on 25 July.
Making provision for OFCOM to introduce spectrum trading, leading to speedier access for new services and more efficient use.
Trade and Industry Secretary Patricia Hewitt commented,
"The Act delivers significant changes to the regulatory structure striking the right balance between protecting the interests of consumers and citizens and keeping burdens on industry to a minimum. It will help keep Britain at the forefront of communications."
The Department for Culture Media and Sport was jointly responsible with the DTI for the legislation.
Secretary of State Tessa Jowell welcomed the passing of the Act, but warned,
"this is only the first step in a far longer process. OFCOM must now deliver a new regulatory system that will be light touch and unobtrusive wherever possible, but decisive and robust wherever necessary. I have every confidence they have the people, tools and know-how to do this."
