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Years of EU membership have created deeply intertwined laws and systems that will take time to disentangle. To provide continuity and avoid immediate legal confusion, the government plans to introduce the “Great Repeal Bill” to incorporate current EU legislation into UK law, while allowing selective changes that benefit consumers and businesses.
Several agencies have been tasked with assessing the best outcomes for the sectors they oversee. Sharon White, chief executive of telecoms regulator Ofcom, spoke at the Institute for Government about how to take advantage of the opportunities Brexit presents while minimising harmful disruption to the communications industry.
White opened her remarks by stating Ofcom’s neutral position on the referendum: “As the communications regulator—politically neutral, independent of government and of the companies we regulate—Ofcom takes no view on the means or merits of Brexit.”
She added: “But as the government seeks the best deal for the UK, it is vital for British consumers that communications feature at the heart of the negotiations.”
The sectors Ofcom regulates—telecoms, broadcasting, postal and wireless services—generate combined annual revenues of about £57 billion, making them a major contributor to the UK economy, just behind the country’s leading financial sector.
The single market and ease of doing business across the EU have encouraged many telecom and media businesses to establish operations throughout Europe, with many headquartered in the UK. “Our country is home to the largest number of pan‑European media companies, and some of the most respected creative and technical talents in the world,” White said.
Some UK-based companies do not serve only domestic audiences. For example, Viasat transmits from London to Nordic and Baltic regions rather than broadcasting solely to UK citizens. ITV is a leading independent TV producer in Europe, and Sky operates satellite services in Germany, Austria, Italy and Ireland. This sharing of content and services highlights why minimising disruption is in everyone’s interest.
Ofcom has helped shape safeguards that protect consumers across Europe under existing legal frameworks. Not every rule derived from EU law will best serve British citizens and businesses, so Ofcom views Brexit as an opportunity to review which rules should be retained, improved or removed as part of the Great Repeal Bill.
To determine which EU laws should continue to apply in the UK, Ofcom proposes a “triple test” that other regulators might sensibly adopt. The questions are:
- Does the rule prioritise the interests of UK consumers and the wider public?
- Does it promote competition and investment?
- Does it support UK companies’ ability to trade successfully in the EU and globally?
Ofcom intends to keep EU rules that work, fix those that are deficient, and ensure consumer and business protections are not weakened. The regulator wants to preserve the right for companies based in the UK to broadcast across Europe provided they comply with Ofcom’s requirements on impartial and accurate news, free expression, privacy rights and the protection of children.
“We license around 1,200 TV services, but almost a third are not broadcasting to UK viewers. Conversely, around 35 channels that can be received here are not licensed in the UK. We believe the country‑of‑origin principle should endure in the UK after Brexit so that media companies based here don’t face new hurdles or, worse, feel compelled to relocate to another European country,” White explained.
In practice, the remaining EU countries could decide to restrict UK‑based broadcasters from transmitting into their markets, which would harm consumers and cultural exchange. Likewise, without Ofcom’s input, European content could face barriers entering the UK if agreements on accepted standards are not reached.
One specific EU requirement Ofcom would like to move away from is the obligation for regulators to review their market practices every three years—a process that consumes considerable time and resources. “As a domestic regulator, we have argued for flexibility to examine markets when warranted, over longer cycles. That would give companies greater certainty and encourage investment. The Commission is now proposing five‑year reviews, but this illustrates the sort of change the UK might take direct responsibility for in future,” White said.
Future mergers and acquisitions between UK and EU firms will present new regulatory challenges and will require close cooperation, because deals will be scrutinised under both UK and EU rules. After Brexit, the UK will not be reliant on EU courts in the same way, giving Ofcom greater capacity to protect UK consumers without the risk of being overruled.
“If consolidation in the sector produced a small number of dominant players—an oligopoly—we have the chance to introduce stronger protections. If these markets become uncompetitive, Ofcom should be able to step in to protect UK consumers,” White added.
White noted that Ofcom and other regulators previously made these arguments to the European Commission without success. EU rules in some areas remain unclear, and the UK now has the opportunity to address those gaps in domestic law. “This is not regulatory creep or the pursuit of powers for their own sake. It is about ensuring that, in a rapidly evolving sector, UK laws protect UK consumers from new anti‑competitive threats.”
Progress such as eliminating or reducing roaming charges within Europe should be preserved; otherwise mobile operators could face additional costs that would be passed on to consumers and businesses.
Ofcom’s independence—its freedom from political or commercial influence—must also be safeguarded to ensure it acts in the national interest. The recent decision to separate Openreach from BT is an example of Ofcom exercising its authority to promote better outcomes for consumers.
“As the government seeks new trading opportunities outside the EU, we want a framework for TV and telecoms that protects the future needs of consumers, businesses, viewers and listeners,” White concluded. “Those are our goals. We will keep working with government, Brussels and fellow regulators to deliver them for the benefit of everyone in the UK.”
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