Geoffrey Caesar, Solicitor

Telecommunications law is dynamic and fast-changing, affecting consumers, businesses and public authorities across the UK. This blog post will highlight some of the critical developments expected to occur in 2024 and how they may impact the telecoms sector and its stakeholders.

A new security framework

One of the most significant developments is introducing a new security framework for telecom providers. This framework, established by the Product Security and Telecommunications Infrastructure Act 2022 (PSTI) and the Product Security and Telecommunications Infrastructure (Security Requirements for Relevant Connectable Products) Regulations 2023, which come into force on 29 April 2024, mandates that manufacturers of consumer connectable products (such as smart TVs, cameras, speakers and toys) who sell to UK consumers comply with baseline security requirements. These requirements are based on the top three principles in the Code of Practice for Consumer Internet of Things (IoT) Security and align with key provisions of the leading global standard for cyber security for consumer IoT, ETSI EN 303 645. The Office for Product Safety and Standards (OPSS) enforces the regulations and has published guidance on how manufacturers, importers, and distributors can comply.

The new security framework aims to protect consumers from cyber threats and ensure they can trust that connectable products are designed and built with security in mind. It also supports the growth of wireless services across the economy by providing efficient spectrum use and reducing the risk of interference. The framework complements the security obligations for operators of essential services under the Network and Information Systems (NIS) Regulations, which Ofcom oversees. Ofcom will continue to monitor communications providers’ compliance with the new security framework, using its powers introduced by the PSTI Act, and will submit its first report on telecom security to the secretary of state by October 2024.

Ban on inflation-linked mid-contract price rises

Another significant development is Ofcom’s proposal to ban inflation-linked mid-contract price rises for telecom services. This proposal follows over 800 complaints about price rises between January and October 2023, which Ofcom concluded can cause substantial consumer harm by complicating shopping for a deal, limiting consumer engagement, and making competition less effective. Ofcom has found that consumers tend to be confused by the inflation-linked “CPI + 3.9%” messaging that providers tend to use. It wants to ensure that consumers can make more informed choices about the best deals for them, including bundle deals, without the need to forecast what their monthly price will be later.

As a result, Ofcom has proposed the introduction of a new rule requiring that telco providers tell customers upfront (at the point of sale) in pounds and pence about any price rises that they include in their contracts (the “£/p requirement”). Ofcom considers that where several services are taken together as a bundle (such as mobile, broadband, pay-tv), information about any changes to the core subscription price (being the sum that customers must pay at regular intervals for the services) should be presented as the price of the whole bundle. Providers are not expected to provide a breakdown of the price changes for each separate element of the bundle.

Ofcom expects that this new rule will reduce consumer confusion and frustration, increase transparency and comparability of prices, and encourage providers to offer more competitive deals. The regulator has asked for responses to its proposed rule by 5 pm on 13 February 2024. It will publish its final decision in March 2024.

Network resilience

A third notable development is Ofcom’s consultation on updating its resilience guidance for telecoms network operators. Ofcom is consulting to propose updates to its resilience guidance to help provide greater clarity on how UK telecom companies can reduce the risk of network outages. The regulator views resilient telecom networks as vitally important to consumers and businesses in the UK, especially in light of the increased reliance on digital services during the Covid-19 pandemic.

Ofcom’s resilience guidance sets out its expectations for how network operators should plan for, respond to and recover from network failures or disruptions caused by various factors such as natural disasters, cyber-attacks or human error. The guidance also explains how Ofcom monitors network performance and intervenes when necessary to protect consumers’ interests.

Ofcom has proposed several changes to its resilience guidance, including clarifying its definition of resilience, updating its list of potential causes of network failures or disruptions, providing more detail on how network operators should assess their resilience risks, outlining best practices for network design, testing, maintenance and incident management; and highlighting the importance of collaboration and information sharing among network operators and other stakeholders.

Ofcom has invited comments on its proposed updates to its resilience guidance by 5 pm on 1 March 2024. It will publish its final guidance in Summer 2024.

Conclusion

These critical developments in telecommunications law in the UK in 2024 are worth noting. Of course, other developments may arise throughout the year, such as new legislation, cases or policy initiatives, that could also impact the telecoms sector and its stakeholders. We will keep you updated on any significant changes as they happen. In the meantime, please contact me with any questions or comments on the topics discussed in this blog post.