INSIGHT Eli Katz - ITSPA
“The major concern is that small providers are squeezed out if the existing PSTN wholesale
market is not reflected in an IP environment.” Eli Katx, ITSPA Chair
COVID-19: Roadblocks and
requirements for the comms sector
Unsurprisingly, Covid-19 has consumed the discussions within ITSPA over recent weeks. The impact for
members began almost immediately, particularly for those focussed in certain sectors (travel, hospitality etc).
In this piece Eli Katz, ITSPA Chair, talks about some of the roadbloacks and requirements for the comms sector
going forwards
Communications providers
are often at the sharp end
when customers get into
nancial di culties. Bills
are not paid or requests to pause/
cancel contracts are made.
is was shown in our recent
member survey in April. 76%
of respondents indicated they
had seen a nancial impact on
their business, with 56% stating
they expect to see a more serious
negative nancial impact in the
coming months, as the economic
downturn hits the customers
they serve.
Nevertheless, providers have
been responding superbly to
the immediate challenges to
help customers adapt to the
“new normal” and maintain
their operations remotely.
is has shown the exibility
of our members’ services and
has certainly provided some
more positive signs as to where
future business opportunities
will lie. Equally there have
been numerous examples of the
sector showing its true colours
with voluntary support to
organisations who are helping in
the pandemic response.
ITSPA have been in regular
discussion with both Ofcom and
Government o cials to relay
the impact that members are
experiencing and feedback on
the economic support measures
that have been outlined. e key
points include:
Openreach could and should
be doing more to support the
entire market: Issues around
the cessation of contracts have
shone a light as to whether
Openreach fully understand
the rami cations of customers’
contract cancellations on the
supply chain. e support
through Openreach’s voice
and broadband reconnect o er
is welcome, however there are
various inconsistencies across
their product range, providing
a huge challenge for wholesalers
and resellers. For example,
charging for reconnection of
ethernet cables when this would
not require any physical action,
feels completely against the spirit
of industry collaboration in
these challenging times. Equally,
limiting the eligibility criteria for
the o er to SMEs, throws the
risk squarely on the supply chain
for larger businesses.
Maintaining a positive
commercial environment for the
business telecoms market: Before
the crisis unfurled, ITSPA had
been focused on defending the
interests of the business telecoms
market with regulatory and
technical changes looming that
have huge potential impact.
ere are two key developments
over the horizon;
e European Electronic
Communications Code (EECC)
is due to be implemented into
UK law by December. e
requirements incur residential
consumer style rules to the SME
environment (e.g contract terms),
which are disproportionate for
both the customer and provider.
ITSPA believes these rules need
to be reviewed and at the very
least delayed to help the sector
bounce back from Covid-19.
Signs are promising for a delay
in the implementation regime
but ITSPA will continue to
lobby heavily for a more exible
approach to these requirements.
At the same time, the industry
is preparing itself for the planned
PSTN switch o in 2025, which
will require huge amounts
of planning to get right. It
creates huge opportunity
for the IP community but
potential pitfalls for the
sector in terms of migration.
ITSPA are engaging with both
Ofcom and Openreach to
provide clear timeframes and
clarity on the future product
o erings to ensure the market
competitiveness is maintained.
e major concern is that small
providers are squeezed out if
the existing PSTN wholesale
market is not re ected in an IP
environment.
Ensuring the sector
has e ective access to
the Government support
schemes: e intentions of
Government to support the
whole economy is certainly
commendable. How that
works in practice is vital, with
speed to nance being the
main requirement. e various
schemes that have been set up
are starting to build momentum,
with the job retention scheme
being particularly successful.
However, there have naturally
been many stories of
frustration around the
process and eligibility
criteria for the likes
of CBILs, the Future
Fund and the Bounce
Back Loan Scheme.
Equal frustrations
around the variations
in delivery amongst
the lenders are causing concerns.
ese need to be ironed out
quickly to have e ect as speed
is of the essence. ITSPA will
continue to engage with its
members and Government to
ensure key problems are raised.
So, it is certainly seismic
times for the whole sector and
one where the industry needs
to shout loudly to ensure it can
help support the entire UK
economy in getting back on its
feet. We shall keep you updated
on developments in the coming
months!
34 | Comms Business Magazine | June 2020 www.commsbusiness.co.uk
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