When it emerged that no individual political party would have an overall parliamentary majority, it became clear that the structure and future landscape of the British telecommunications industry would be subject to the balance of power at number ten. But now that the Con-Lib coalition has been established, what impact will the new administration have on business telecommunications?

As the new Government begins to establish and implement a cohesive economic strategy, the telecommunications industry is likely to face a prolonged period of uncertainty. However, it is extremely likely that any form of re-shaping the telecommunications landscape will start with a revision of the ‘Digital Economy Act’. Therefore, if we take a look at both the Liberal Democrat and Conservative parties position on the act, prior to the general election, some overall trends emerge.

The Digital Economy Act
The controversial act gave increased power to Ofcom, the UK regulator of telecoms; the act also re-asserted Labour’s commitment to providing increased broadband access across the country. However, one of its most important elements – in terms of its impact on business telecommunications – is the fact that employers will now be held responsible for the digital actions of their employees and anyone using their network.

While the Liberal Democrat party pledged to revoke the Digital Economy Act if it came into power, the bill actually received the reluctant support of the Conservative shadow culture secretary at the time, Jeremy Hunt. Though, he did say that if the Tories made it into office, they would repeal any ‘flawed’ legislation.

In conclusion, it seems that both political parties understand that the Digital Economy Act could have major implications on the telecommunications industry and its ability to provide the jobs so critical to economic recovery. However, revising the act may remain a low priority as the coalition attempts to tackle broader economic issues, against the backdrop of conflicting political ideologies and economic objectives.

This entry was posted on Thursday, June 3rd, 2010 at 6:00 am and is filed under Telecommunications News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.