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2.1 Convergence has been long heralded by many in the communications sector. The changes we are witnessing now suggest that convergence really is upon us – changes are occurring to the communications sectors faster than anyone anticipated this time last year. This trend is likely to continue in the coming year.

2.2 The potential implications of these changes for citizens and consumers will be significant. We have now started the process of digital switchover in the UK. We have seen a range of new and innovative services on the market increasing in popularity faster than anyone expected: for example, social networking. We have also witnessed increasing pressures on traditional media and business models.

2.3 In light of these developments, we outlined in last year’s annual plan that Ofcom should seek to regulate for convergence. To achieve this, we detailed a three-year strategic framework around which we would focus our major activities. The framework focuses on five main areas:

• driving forward a market-based approach to spectrum;
• promoting competition and innovation;
• ensuring the delivery of public interest objectives;
• improving empowerment, protection and enforcement for citizens and consumers; and
• considering the legal and economic frameworks for communications regulation.

2.4 These five main areas are supported by two additional activities that cut across all areas of Ofcom’s work. These are: continuing to reduce regulation and minimise administrative burdens; and maximising our impact on international policy development to best represent the interests of UK citizens and consumers.

2.5 The past year has seen a number of key developments in the communications sectors. These include:

• acceleration of convergence, with an increasingly rapid take-up of bundled services by consumers;
• a growing number of new services and increasing use of these services by consumers;
• a changing mix of media consumption, and new ways of consuming media by different consumer groups;
• challenges to the business models of traditional media, which are emerging more quickly than anticipated, resulting in implications for the delivery of public interest objectives;
• new sources of competition in service delivery as the number of communications platforms used by consumers increases; and
• the continued risk of new competition issues emerging from new forms of market power.

2.6 We are now approaching year two of our three-year framework. Despite the developments we have seen in the market over the past year, we believe this framework continues to be relevant for our aim of regulating for convergence. However, we do need to ensure that the specific work programme within the framework remains appropriate for today’s communications sector. We have therefore reviewed and updated our proposed work programme for the coming year.

Figure 1: Major policy work areas in 2008/09

2.7 We are proposing a wide-ranging work programme for next year consisting of 21 major work areas. Our work programme consists of projects in an ongoing implementation stage, areas of current policy development and horizon-scanning activities that look further ahead.

2.8 Within this work programme, we have identified a number of top priorities for Ofcom. These are work areas where successful outcomes are vital in 2008/09 to ensure Ofcom fulfils its longer-term intent of maximising the benefits of convergence for citizens and consumers across the UK. Priority areas are those elements of our work that will: deliver the greatest potential benefits to citizens and consumers; address the greatest risks for citizens and consumers; or those that are most time-dependent.

2.9 Although we have identified these top priorities, this does not mean that other major areas of policy work identified for 2008/09 are not critically important. All of the major work areas identified will remain fundamental to Ofcom delivering on its duties for citizens and consumers. We will continue working to ensure that our plans in all areas of the work programme are fulfilled to the highest possible standard.

Figure 2: Highest priority areas for 2008/09

2.10 At the same time, the nature of the communications sectors means that there will often be unexpected issues that arise during the year, for example, Ofcom’s contribution to the Byron Review of internet content. To ensure that Ofcom has sufficient resource to carry out such unplanned tasks without compromising our ongoing work, we have reserved a share of capacity for unexpected tasks in 2008/09.

2.11 In addition to our policy work programme, one of Ofcom’s key roles is to deliver a range of services to stakeholders. These include: keeping spectrum free from interference; allocating number ranges; providing information services to the market, for example our annual Communications Market Reports. These are valuable services for stakeholders and we are looking at how we can continue to improve their delivery.

2.12 In delivering our policy work programme and services to stakeholders, we remain committed to maximising our efficiency. Our aim is to deliver the maximum value for money to our stakeholders. Ofcom will continue its focus on enhancing value for money though a variety of initiatives in the coming year.

2.13 It is important to us that all our stakeholders understand what we are proposing to focus on in the coming year. This is the purpose of this consultation on the draft annual plan. We welcome all views from stakeholders on the proposed top priorities and our wider work programme for the coming year. We will publish the results of this consultation within our final annual plan in April 2008.

This consultation started on 11th December 2007 and ended on 19th February 2008.

Here are the documents we were able to locate that relate to this consultation: