newspaper groups, television companies and 240 Social and cultural affairs 17 The media and communications radio stations, at both national and...

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establishing ‘public interest’ criteria by which
the regulatory authorities can assess and
Telephone services
approve (or disallow) mergers or acquisitions
Telephone calls from fixed links were 22 per cent
between newspapers and television and radio
higher in 2001, at 300 billion call minutes, than in
companies.
2000 (see Table 17.2). This mainly reflects a big
increase in Internet call volumes during the year,
The 1996 Act overturned the rule that no one
whereas voice call volumes were down. Oftel
company could own more than two of the ITV
(see page 242) estimates that Internet calls now
(Channel 3) licences; instead, a new limit was set
account for 44 per cent of fixed call volumes. A
whereby no company could control franchises
telephone is one of the most popular consumer
covering more than 15 per cent of the total
durable goods in the home. According to Oftel,
television audience. Local newspapers with more
around 95 per cent of households have a fixed
than a 50 per cent share of their market may now
telephone, while a further 4 per cent of
own a local radio station, providing at least one
households are thought to use a mobile phone
other independent local radio station is operating
instead. However, more existing customers are
in that area. An additional regulation is the Office
installing second lines in their home, often for
of Fair Trading’s limit of 25 per cent on any
Internet use, and 5 per cent of households have
company’s share of television advertising revenue.
more than one fixed line. There are 35.3 million
Newspaper transfers and mergers are subject to
fixed lines, but since October 2000 there have been
the consent of the Secretary of State for Trade and
more mobile subscribers than fixed lines.
Industry, usually after reference (where the total
paid-for daily circulation of newspapers owned by
BT, which became a private sector company in
the proprietors involved is 500,000 or more) to the
1984, remains the biggest fixed-line UK operator,
Competition Commission.
although competitors have increased their share
of the market, especially the business market.
Relaxing the media ownership rules
BT runs one of the world’s largest public
Proposals for changes in media ownership rules
telecommunications networks, including about 29
included in the draft Communications Bill are:
million exchange lines. Turnover from continuing
businesses in 2001/02 totalled £18.4 billion. In
■
scrapping those rules preventing single
2001 it demerged its BT Wireless operations,
ownership of ITV and more than one national
including its mobile phone operations, to form a
commercial radio licence;
separate company, MMO2.
■
not allowing any newspaper group with over
The two main cable operators are ntl and
20 per cent of the national market a significant
Telewest. By the end of April 2002 cable operators
stake in ITV;
had installed around 5.2 million telephone lines in
the UK.
■
the introduction of a parallel regional rule
preventing anyone owning all the newspapers
A variety of new telecommunications services has
and the regional ITV licence in any region or
emerged. For example, many companies offer
major city; and
their customers information services using 0845
and 0800 telephone numbers – over 100 operators
■
the introduction of a scheme to ensure that at
supply such services to companies. In September
least three commercial local or regional media
2001 Oftel gave the go-ahead for the expansion of
voices exist in addition to the BBC in almost
directory enquiry (DQ) services, currently
every local community.
provided mainly by BT through numbers such as
192. In May 2002 a lottery was held to assign new
six-digit DQ numbers among operators, and
Telecommunications
around 300 numbers were allocated. Services
using the new numbers are due to be launched in
Turnover of the UK telecommunications services
October 2002, with the existing numbers being
sector grew by 8 per cent in 2001 to £45.4 billion.
withdrawn by August 2003.
241
Social and cultural affairs
17 The media and communications
Internet, e-mail facilities, video conferencing and
Table 17.2 Telecommunications
access to a large number of information services.
statistics, UK
Five operators have licences in the UK: the four
Call minutes 2001
Percentage change
network operators, together with Hutchison 3G.
(million)
in call minutes
Services are expected to begin later in 2002 and to
between 2000
become widely available in 2003.
and 2001
Regulation
Fixed link
Oftel (the Office of Telecommunications), a non-
Local calls
75,945
–6