Communications Daily is a service of Warren Communications News.

U.K. GOVT. MOVE TO END CONGESTION SAID TO HURT BROADBAND DEPLOYMENT

British telcos are keeping a wary eye on possible legislation the U.K. govt. says is needed to clear congestion on the country’s roads, but which the industry contends will severely hamper broadband deployment. The proposed Traffic Management Bill, which telcos say would make it harder for utilities to carry out street works, is being drafted by the Dept. for Transport (DfT). A DfT spokeswoman Tues. couldn’t confirm the measure would be part of a legislative package to be announced during the Queen’s Nov. 26 speech opening a new session of Parliament, but said it probably would be. DfT is looking for a legislative slot for the bill this year, the spokeswoman said.

Sign up for a free preview to unlock the rest of this article

Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!

Telcos and other utilities currently are regulated by the New Roads & Street Works Act (NRSWA) 1991. But we're told one of the proposed law’s major weaknesses was that it would control only 5% of the causes of congestion. Moreover, while the law already lets local authorities fine utility companies when street work lasts longer than agreed, many authorities want tougher regulations.

Telcos are said to agree with the finding of a parliamentary Select Transport Committee that the current regulatory regime doesn’t need overhaul and should be made to work properly. The govt. also agreed, the DfT spokeswoman said. However, she said, “we believe that several changes are needed to allow the regime, under existing regulation, to work effectively.”

The DfT isn’t making public details of the proposed changes but the DfT spokeswoman said that among other things it would enable local authorities to better manage when, where and for how long street works were carried out. One example might be extending protection for newly surfaced roads from the current 12 months to 2 years (so they couldn’t be dug up again), a change that couldn’t be made without new legislation, she said.

But telcos are said to be worried that DfT has other ideas in mind as well, including giving local authorities greater control over where and when utilities carry out street works. Besides adding more regulation and expense, such proposals would seriously hurt competition in the U.K. telecom market by slowing or stopping companies from connecting new customers, officials said. They also could run afoul of the Dept. of Trade & Industry (DTI) push for a “Broadband Britain.”

The Traffic Management Bill would be bad for business, a BT spokeswoman said. Under the current system, she said, companies that take too long to complete their street work can be fined. That’s a better approach, she said, because it encourages utilities to finish their installations on time while acknowledging the need to dig up roads to improve infrastructure. An additional issue for telcos, she said, is the pressure being put on them by the govt. to step up broadband deployment.

BT’s main infrastructure already is in place, so most of its street work involves either upgrading or linking new customers, the spokeswoman said. Moreover, she said, trying to tackle road congestion by hindering broadband rollout is counterproductive to encouraging telecommuting or flexible work hours. The “devil’s in the details” of the bill, the spokeswoman said, but “we could be talking significant impact here.”

DTI wants as much broadband access as possible across the country, a spokesman said. But he said he would wait to hear what was in the Queen’s speech. Until then, he said, “everyone’s guessing.”