Virgin Media 2009 Annual Report Download - page 23

Regulatory Matters
Overview
Legislative Framework
Our business activities are subject to the laws and regulations of the European Union and the
U.K. The descriptions which follow are summaries and should be read in conjunction with the texts of
the relevant directives, statutes and regulations.
The primary legislation relating to our sector is the U.K. Communications Act 2003, or the
Communications Act. The Communications Act regulates all forms of communications technology,
whether used for telecommunications or broadcasting, and implements a series of relevant European
Union, or EU, directives, as set out below:
• Directive 2002/21 on a common regulatory framework for electronic communications networks
and services;
• Directive 2002/20 on the authorization of electronic communications networks and services;
• Directive 2002/19 on access to and interconnection of electronic communications networks and
associated facilities; and
• Directive 2002/22 on universal service and users rights relating to electronic communications
networks and services.
These directives are supplemented by EU Directive 2002/58, concerning the processing of personal
data and the protection of privacy in the electronic communications sector, which was implemented in
the U.K. by the Privacy and Electronic Communications Regulations 2003. Collectively, the preceding
five EU directives are referred to as the European Framework.
In December 2009, the European Parliament amended the European Framework to provide for
enhanced consumer and business protection measures and adopted a new directive establishing an
EU-wide communications regulatory body. These reforms are required to be transposed into law in the
U.K. by June 2011.
We are also subject to regulation under the U.K. Broadcasting Acts 1990 and 1996 and other U.K.
statutes and subordinate legislation, including the Competition Act and the Enterprise Act.
U.K. Regulatory Authorities
The U.K. Office of Communications, or Ofcom, is the key regulatory authority for the
communications sector in which we operate. Additionally, the U.K. Office of Fair Trading has
concurrent jurisdiction with respect to competition matters relating to electronic communications.
Ofcom is responsible for furthering the interests of consumers by promoting competition. In particular,
Ofcom is responsible for regulating the behavior of providers of electronic communications networks or
services that have significant market power, or SMP, in identified markets, which may have a harmful
influence on competition and consumers. A provider is deemed to have SMP if it has a position of
economic strength affording it the power to act independently of competitors and customers within a
given market.
Development of the U.K. Digital Economy
In June 2009, the U.K. government published a report setting out its strategy for the further
development of the digital and communication sectors in the U.K., know as the Digital Britain Report.
The Digital Britain Report outlines proposals, addressed to both regulators, such as Ofcom, and
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