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Telecommunications in Wales

Where we are and what we need

Mike TeddChairman

Welsh Advisory Committee on Telecommunications (WACT)

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WACT

WACT is one of six Advisory Committees set up in 1984, when OFTEL was created and BT was privatised

Our main role is to advise OFTEL on the needs and problems of Wales. We also try to influence the operators, and work with the National Assembly

We take a particular interest in the needs of rural Wales

Towards the end of this year, OFCOM will take over from OFTEL, and WACT will end

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Remember 1984?

BT was a monopoly

The network was very poor

Many calls failed or were unusable

Long waits for new lines

Most complaints reaching WACT and OFTEL were about the quality of service and billing disputes

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NowTelephones workPrices in real terms have more than halvedSome serious competition:

NTL competes with BT in South WalesIndirect retail operators, like OneTelFour mobile networks

All areas benefit from the pressure on BT due to competition in richer areas

Most complaints are about the quality of customer service

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The Good NewsAll exchanges in Wales are now digital, with fibre

links between themMobile telephony is widely available (but patchy)Most lines support dial-up Internet access, for

which there are fixed subscription servicesAdvanced services (such as BT’s Metro VPN)

are available throughout WalesFast leased lines are available everywhere and

have become much cheaperBroadband is available to over 40% of the users

in Wales

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The Realities of Rural WalesBT has a near-monopoly of fixed

telecommunications infrastructure

The terrain doesn’t help

Sparse populations and relative poverty make rural Wales unattractive for new entrants

At the wholesale level, BT will remain dominant. We need to work with them and find ways to encourage them to invest in the network

There can be fierce competition in retail services

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BroadbandBroadband is becoming more and more important

for economic and social development Soon, 53 of the 444 BT exchanges in Wales will

support ADSLThese cover about 40% of users in Wales (The UK

average was 63% late last year)Without intervention, perhaps another 30% would eventually have access to ADSL

Wireless and satellite have significant roles, but …The Broadband Wales programme is very

welcome!

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Mobile CoverageMobile telephones are now vital to most

companies – especially small onesRecent surveys (of 5 large towns and a few main

roads) show over 6% of calls failing in Wales. The UK average is 2.6%

Coverage in rural areas is very patchyFrance is reported to be deploying structural

funds to complete its 2G mobile networkWe know of no 3G rollout planned for Wales,

outside South Wales

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Moving to OFCOMBringing together the regulation of broadcasting,

telecommunications and spectrum planning is long overdue

There could be real benefits to Wales in addressing together problems like the availability of broadband and digital TV & radio

The bill prescribes much less representation for Wales than we have now and barely mentions the National Assembly

It is important that OFCOM establishes effective channels and bodies to fill these gaps

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In Summary

The telecommunications scene in Wales is better than many people expect

Current challenges include rollout of broadband and improving mobile coverage

OFCOM is welcomed – but we must articulate the needs of Wales in tele-communications as well as broadcasting