Telecommunications: An Overview

Regulatory Landscape

The UK telecommunications sector is regulated by Ofcom, pursuant to the Communications Act 2003 (CA2003).

The CA2003 remains the cornerstone regulatory enactment governing the UK telecommunications sector. The CA2003 replaced the requirement for individual licences for the running of telecoms services and facilities with a class licence regime that does not require a licence or even a notification, except where a specific radio frequency spectrum is to be licensed. Communications providers are, however, required to comply with the Ofcom General Conditions of Entitlement (Ofcom GCs) which in effect are class licence terms. Over the last years, the Ofcom GCs have been updated to take into account the European Electronic Communications Code (EECC).Spectrum is licensed under the Wireless Telegraphy Act 2006 whereby communications providers are required to have an individual licence unless the spectrum in question is licence exempt or subject only to compliance with class licence conditions. 

Since the CA2003 came into force, the UK’s continued approach of generally not requiring licensing or notification for the provision of telecoms services remains a key factor in minimising regulatory burdens and controlling costs across the sector. This legal framework continues to be especially advantageous for the internet of things (IoT) market, where providers can launch innovative services without being encumbered by complex licensing requirements.

While there have been no major legislative overhauls, several significant regulatory and policy developments have indeed emerged in 2025 to shape the next years:

• Ofcom’s Telecoms Access Review 2026-31, launched in March 2025 and closed in June 2025, sets out the proposed regulatory framework for fixed telecoms markets from April 2026 to March 2031. The review aims to promote competition and investment in gigabit-capable broadband and address challenges such as legacy network migration, wholesale pricing, and business connectivity.
• HM Treasury’s 10-Year Infrastructure Strategy, published in June 2025, outlines a long-term plan to accelerate broadband and mobile roll-out. It emphasises planning reform, infrastructure co-ordination, and investment certainty to support national growth and digital inclusion.
• The Planning and Infrastructure Bill, introduced to Parliament in March 2025, proposes reforms to the National Significant Infrastructure Projects (NSIP) consenting process. These reforms aim to streamline approvals, reduce legal challenges, and fast-track critical infrastructure delivery, including telecoms projects.
• In July 2025, Ofcom published its Statement on the Review of Alternative Dispute Resolution (ADR) in the telecoms sector, confirming changes to improve consumer access to ADR. Key updates include reducing the waiting period before consumers can escalate complaints from eight to six weeks and strengthening performance monitoring of ADR schemes.
• Ofcom launched a consultation in March 2025 on authorising direct handset-to-satellite communication in mobile spectrum brands below 3 GHz. The proposed regulatory framework would enable satellite connectivity for mobile devices in areas lacking terrestrial coverage, with legislation pending.
• In May 2025, Ofcom confirmed the deployment of updated Wireless Telegraphy Register Regulations, effective from June 2025. These amendments expand spectrum trading capabilities, improve register transparency, and support more flexible licensing arrangements for Shared Access and Fixed Link licences.

Together, these developments reflect a regulatory environment that is evolving to support innovation, investment, and consumer protection, without imposing unnecessary burdens on providers.

Market Trends

AI and automation are becoming central to telecom operations. Ofcom published its Strategic Approach to Artificial Intelligence in June 2025, outlining how AI is being used to enhance network resilience, improve customer service, and support regulatory compliance. The strategy also emphasises the importance of transparency, accountability, and ethical deployment of AI technologies across the communications sector.

The Vodafone-Three UK merger was cleared by the CMA, subject to commitments including a multi-billion-pound investment in network infrastructure and assurances to protect consumer interests. This decision signals a shift in regulatory stance toward consolidation in the mobile market.

Environmental sustainability remains a growing priority. Telecom operators are increasingly adopting energy-efficient equipment and implementing carbon reduction initiatives. A marked increase in sustainability-focused telecoms investment has been observed.

In March 2025, the UK government announced GBP23 million in funding for research projects aimed at reducing the digital divide, including initiatives focused on 5G integration, rural connectivity, and advanced wireless technologies. This was followed by the June 2025 HM Treasury Spending Review, confirming GBP1.9 billion for Building Digital UK (BDUK) to accelerate the roll-out of Project Gigabit and the Shared Rural Network, aiming to deliver gigabit-capable broadband to 99% of UK premises and improve 4G coverage in underserved areas.

UK Telecoms Regulatory Priorities for 2025/2026

Ofcom’s key regulatory focus for 2025/26 includes enhancing online safety, improving telecoms security, and addressing scam calls and messages. Ofcom is also working on wholesale access markets, particularly broadband and fibre, to help ensure fair competition and consumer protection. These priorities are reinforced in Ofcom’s Three-Year Plan (2025-2028), which places sustained emphasis on modernising telecoms infrastructure, expanding spectrum availability, and supporting innovation to meet rising demand across sectors. Under its statutory Growth Duty, Ofcom is now required to give greater weight to economic growth and technological advancement when shaping regulation. Additionally, enforcement under the Online Safety Act 2023 is becoming more robust.

Developments Regarding the Provision of Communications Services to End Users – Modifications to Ofcom GCs

In alignment with the relatively new European Electronic Communications Code (EECC), since June 2022, the amended Ofcom GCs require communications providers to provide customers with a one-page summary of the details and key terms of their contract.

Ofcom GCs C1 and C2 require that consumers must now be told in clear terms about the technology that underpins their broadband service when signing up to a new deal.

Providers will no longer be able to use the term “fibre” on its own. Ofcom began active enforcement with compliance audits and public guidance aimed at reducing misleading advertising and improving consumer understanding of broadband performance.

One Touch Switch

Since 12 September 2024, almost 18 months late, the UK telecoms industry finally managed to implement One Touch Switch (OTS), making it easier for UK consumers to switch broadband providers.

Network security and resilience requirements

The Ofcom Network and Service Resilience Guidance continues to be relevant to all providers of public electronic communication networks and services (PECN/S). This guidance imposes increased security duties and obligations for networks and Ofcom is now expecting greater resilience at the “last mile”. 

Space Law

UK space law is primarily governed by the UK Space Industry Act 2018, though 2025 has seen significant momentum in regulatory reform.

In a major institutional shift, the UK Space Agency is set to merge into the Department for Science, Innovation and Technology by April 2026, creating a unified body to oversee spacy policy and delivery.

The EU Space Act, formally proposed in June 2025, introduces a harmonised framework for space activities across the Union. It focuses on space traffic management, cybersecurity, and sustainability to consolidate fragmented national regulations into a single market for space services. Although the UK has no plans to adopt the EU Space Act directly, it continues to remain committed to aligning with international standards.

While the EU Space Act is expected to take effect from January 2030, the UK’s own legislative updates are likely to emerge incrementally through regulatory guidance and sandbox initiatives.  UK space operators, satellite service providers, and industry bodies should accordingly anticipate further changes as the UK positions itself as a global leader in space sustainability and commercial innovation.

Satellite-to-Handset Connectivity

In a potentially exciting development, in September 2025, Ofcom published a statement and further consultation, setting out plans that Ofcom claims would, during 2026, make the UK the first country in Europe to enable direct-to-device (D2D) satellite services. These proposals would allow ordinary mobile phones to connect directly to satellites when no terrestrial coverage is available.

Conclusion

The telecommunications sectors in the UK and EU continue to undergo significant transformations driven by technological advancements, regulatory changes, and market trends. In the UK, 2025 marked a pivotal year for infrastructure and policy. Ofcom’s Telecoms Access Review 2026-31 laid the groundwork for long-term investment in gigabit-capable broadband, while the regulator advanced its oversight of AI through its Strategic Approach to Artificial Intelligence and launched consultations on direct handset-to-satellite communications. The government’s 10-Year Infrastructure Strategy, published in June 2025, reinforced national priorities around broadband and mobile expansion, supported by planning reforms and GBP1.9 billion in funding for Project Gigabit and the Shared Rural Network. Meanwhile, the Planning and Infrastructure Bill, progressing through Parliament, proposes streamlining the NSIP consenting process to accelerate critical infrastructure delivery, including telecoms.

Simultaneously, sustainability and market disruption are redefining operational priorities. ESG considerations are increasingly embedded in procurement and investment decisions, while new entrants like Revolut and Octopus are challenging traditional mobile operators through eSIM-enabled MVNO models. Telecoms companies must accordingly navigate evolving consumer protection standards, spectrum access arrangements, and AI governance frameworks. The UK’s approach continues to prioritise innovation, competition, and connectivity, setting the stage for a more resilient and legally complex communications future.