Standardising wholesale super‐fast broadband access: the public role

PurposeThis paper seeks to set out a framework for assessing whether and how to intervene in the standardisation of new technologies, based on the experience of Ofcom, the UK converged communications regulator.Design/methodology/approachAs part of its duties to promote the interests of consumers and citizens, Ofcom needed to decide whether or not to intervene in the standardisation of wholesale access to superfast broadband, in the context of the roll out of the next generation of telecommunications access networks.FindingsOfcom found that the case for intervention was finely balanced between, on the one hand, the risk to innovation and, on the other, the consumer welfare generated by the right combination of standardisation and network effects. Ofcom identified four basic models of intervention: take no formal action; require that infrastructure providers use open standards, without specifying which standards should be used; mandate a particular standard to be used; and specify the standard to be used. Ofcom developed a policy framework that assesses interventions in terms of prospects for innovation and network effects. This led it to choose an approach that initially involves no formal action. Instead, Ofcom facilitates industry leadership of standardisation whilst monitoring the emerging competitive environment and signalling both its desired outcomes and its determination to take action if competition does not develop.Practical implicationsIt is too early to say whether this approach will ultimately prove successful, however the framework allows for progressive strengthening of intervention if competition is not forthcoming.Originality/valueThe paper delivers value in conceptualising and clarifying the overall approach to standardisation.