| Fixed Networks
Competition between the fixed telecoms suppliers has developed
rapidly since the early 1990s.
Although BT's share of telephone lines is static at around
84%, its overall share of total fixed telephony revenues is now
only 71%. Roughly 50% of UK households - some 12 million
homes - can now choose their direct-to-the-house fixed link telephone
provider. This compares
to virtually no choice some 10 years ago.
Business users in metropolitan areas now have an extremely
wide choice as competition has driven prices down and quality
up.
In the year to end December 2003:
-
customers spent over £13 billion on fixed line
telephony;
-
the number of fixed exchange lines stands at
34.6 million;
An increasing number of indirect access services are now available,
offering consumers very low prices for calls. There are now over 15million homes connected
to the Internet. The current
number of broadband users has risen sharply to over 6 million. This
represents an increase from just over 3million at the end of 2003
to over 6 million at the end of 2004. The Fixed Networks Team within
the DTI are responsible for the following: -
- ensuring the framework of telecommunications in the UK encourages
the development of a competitive market for communications services,
- the development of new networks,
- business relationship management and the sponsorship of international,
national and local fixed link operators.
- monitoring of the telecommunications sector with particular
reference to fixed telecommunications operators;
The DTI was previously responsible for establishing the statutory
framework for regulating fixed-line operators. On 25 July 2003 a package of EU Directives
on Communications came into force changing the regulatory regime
under which the whole of the telecommunications sector would operate
in future.
One of the principal changes was the ending of the current individual
licensing regime. A new
licensing framework has now been introduced in which companies
operate under "general conditions of entitlement". These general conditions are a set of rules that an operator is
obliged to comply with. The
aim is to encourage further competition between the fixed line
operators.
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