Policy background Access to digital services
The 2015 Conservative Party Manifesto committed to roll out universal broadband to ensure everyone is part of the digital economy. Improved connectivity is essential for any ambitious nation, driving economic growth, quality of life, education, and engagement with public services. The January 2014 UK Broadband Impact Study further sets out the benefits of fast broadband.
	"Superfast" broadband is a term used to describe broadband capable of delivering download speeds of at least 24 Mbps, which cannot be delivered through previous generation broadband technology. A range of technologies can deliver superfast broadband. The United Kingdom’s superfast broadband networks are largely provided through Virgin Media’s cable network and through BT Openreach’s "Fibre to the Cabinet" ("FTTC") solutions. FTTC is currently the main technology being used to extend superfast broadband coverage through publicly-funded projects but other technologies including "Fibre to the Premises" ("FTTP"), wireless, and satellite also have roles to play. In 2013 the government set an ambition that, by the end of 2017, 95 per cent of premises would be able to connect to superfast broadband. To ensure that coverage extends to areas where it would not be commercially viable for the private sector, the government, Local Authorities and devolved administrations are investing nearly £1.7 billion in improving broadband. There are also a number of projects trialling technologies to extend coverage to the final five per cent and in May 2016 it was announced that BT had confirmed more than £200 million would be available for reinvestment, because its contracts with government require it to return money to local authorities once certain take-up thresholds have been reached.
	As the world goes increasingly online, those without internet access risk social and economic exclusion. The government therefore wanted to ensure that, where superfast broadband remains unavailable, a good quality broadband service is nonetheless available. In December 2015 the government launched a scheme offering a subsidised satellite broadband connection (including the option of superfast speeds) to homes and businesses unable to obtain an affordable broadband service of at least 2 Mbps. This scheme formed part of the government’s commitment to make sure every home and business in the United Kingdom could access speeds of at least 2 Mbps by the end of 2015. This commitment is termed the "Universal Service Commitment" and currently acts as a non-statutory safety net.
	In November 2015 the then Prime Minister announced that government was planning to create a broadband Universal Service Obligation ("USO") with the ambition to give people the legal right to request a broadband connection with speeds of 10 Mbps by the end of the Parliament. Unlike the non-statutory Universal Service Commitment, a broadband USO would be a legal right to request a connection, similar to the way the existing USO operates to request a telephone line or equivalent arrangements for utilities. On 23 March 2016 the government published A new broadband Universal Service Obligation, consulting on the proposal. On 17 May 2016 the government published its response to the consultation confirming plans to legislate. On 11 October 2016 the government published a statement of intent setting out the principles that would guide the design of the broadband USO.
	The government expects the broadband USO to work in a similar way to the telephony USO that is enabled by section 65 of the Communications Act 2003 ("the 2003 Act") and implemented through the Electronic Communications (Universal Service) Order 2003 (SI 2003/1904). A provider or providers are designated to provide the service. In the case of BT, who is a designated provider under the telephony USO, a telephone connection is provided on request unless the cost of installing the connection exceeds £3,400 in which case the customer has the option of paying any additional costs. The government commissioned Ofcom to provide technical analysis and recommendations on the design of the broadband USO and on 7 April 2016 Ofcom published Designing the broadband universal service obligation, inviting views from industry and others on how the detailed operation of the broadband USO would work. On 16 August 2016 Ofcom published a summary of responses and on 16 December 2016 they published their advice to government, Achieving decent broadband connectivity for everyone. This Act amends section 65 of the 2003 Act to provide adequate vires for a broadband USO to be introduced following consultation.
	In addition to ensuring the availability of broadband connectivity, the government believes that consumers need to be well informed about services available to them, be able to easily switch provider and be compensated if things go wrong. Ofcom also shares this belief and set out a similar position in their recent strategic review of digital communications, Making communications work for everyone, published on 25 February 2016.
	The government believes that consumers should be able to more easily switch communications provider. In 2014 just 6 per cent of consumers switched their broadband or fixed line telephone provider, half the rate of switching of gas or electricity providers. For pay-TV the switching rate was just 2%. Since June 2015 Ofcom has successfully implemented gaining provider-led switching across the Openreach network. This means that customers wishing to change their fixed voice and/or broadband service provider only need to contact their new provider, and no longer need to contact their existing provider to obtain an authorisation code that they must then give their new provider. The government supports this model and on 25 May 2016 published Switching Principles Action Plan setting out how the government wishes to ensure switching continues to be made simpler.
	Ofcom has powers to require communications providers to adopt rules on switching under section 51 of the 2003 Act. The government is keen to see an extension of the 2015 switching reforms to the Openreach network extended to other electronic communication services, especially as many consumers now buy services in a bundle including mobile services and pay-TV. With the aim of ensuring that Ofcom is able to achieve these reforms in a timely manner, the Act clarifies that section 51 may be used to require communication providers to comply with switching conditions.
	Electronic communications, and in particular broadband, are increasingly essential services like utilities, without which it is difficult to operate. Delays in connection and re-connection can be inconvenient and unless the consumer actively complains there is little incentive for the provider to improve quality of service. Consumers who suffer a power cut are protected by Ofgem’s Quality of Service Guaranteed Standards, which are service levels that should be met by each distribution company. If they fail to meet the level of service required, then customers may be entitled to a payment. The government wishes to see a similar scheme set up for those who have their communication services disrupted. The Act clarifies that Ofcom is equipped with powers to achieve this.