Westminster eForum

Arqiva is a leading UK communications infrastructure company enabling a vibrant digital economy. We are behind the scenes and central to millions of vital connections. We are pioneers in an always on, always connected world.

Every day our infrastructure and associated services enable millions of people and machines to connect wherever they are through TV, radio, mobile and the Internet of Things (IoT).

We are an independent provider of telecom towers, with around 8,000 active licensed sites, and the only national provider of terrestrial television and radio broadcasting.

Our technology enables us to work with everyone from mobile network operators, such as BT-EE, Vodafone, O2 and Three to independent radio groups and major broadcasters, such as the BBC, ITV, Sky, Turner and CANAL+ to utility companies such as Thames Water.

We provide digital and satellite services and distribution for international clients in Europe, the U.S., the Far East and Australia, including Turner and Canal+ and the Al Jazeera Network.

At Arqiva, we are investing to ensure that the UK has the communications infrastructure it needs to thrive in an increasingly connected world. From carrying the BBC’s first television broadcast in 1936 to launching the UK’s national DAB radio and digital terrestrial television networks in the 2000s, we strive to continuously find ingenious and smarter ways to support our customers.

The BBC's mission has remained the same for almost 100 years; to enrich people’s lives with great programmes and services that inform, educate and entertain. Its vision is to be the most creative, trusted organisation in the world.

The BBC provides a wide range of distinctive programmes and services for everyone, free of commercial interests and political bias. They include television, radio, national, local, childrens’, educational, language and other services for key groups. The BBC also runs orchestras, actively develops new talent, and supports training and production skills for the British broadcasting, music, drama and film industries.

BBC services are used by 91% of UK adults each week and BBC News is the source people are most likely to turn to for news they trust and for impartial, accurate coverage.

The Corporation is funded through a television licence fee and 95% of it's controllable spend is focused on content and delivery with just 5% spent on running the organisation.

The current Royal Charter, which started on 1st January 2017 sets out five purposes for the BBC. They are:

• To provide impartial news and information to help people understand and engage with the world around them.
• To support learning for people of all ages.
• To show the most creative, highest quality and distinctive output and services.
• To reflect, represent and serve the diverse communities of all of the United Kingdom’s nations and regions and, in doing so, support the creative economy across the United Kingdom.
• - To reflect the United Kingdom, its culture and values to the world.

The BBC word mark and logo are trade marks of the British Broadcasting Corporation and are used under licence. BBC logo © BBC 1996

BT is one of the world’s leading communications companies. We provide the essential backbone for fixed telephone services, mobile network operators and much of the UK’s terrestrial TV distribution.

BT is organised into a number of separate businesses:-

• BT Retail – provides services to small and medium sized businesses and to residential customers. It also runs the UK’s largest internet business as well as BT Vision – BT’s on-demand internet television service. It provides around 19 million fixed and 5 million broadband lines.
• BT Wholesale - supports the UK’s fixed and mobile communications industry with a range of products and managed services including, for example, major network capacity to the UK’s mobile companies, the transmission capacity for much of the UK television network, and ‘white label’ broadband, fixed line and other services for some of the biggest names in the competitive UK market. It also manages other operators’ networks on their behalf on an outsource basis.
• BT Global Services – provides services to large businesses, to multi-site organisations in the UK and across the world, and operates in over 170 countries worldwide.
• Openreach - looks after the ‘first mile’ of network, from the exchange through to homes and businesses. Its customers are not end users but the companies who supply their telecommunications services to them. It treats all its customers on an equal basis and thus provides the essential ingredients for the vibrant, competitive retail market in the UK. Is also the engine for BT’s extensive fibre rollout programme.
• BT Innovate and Design - is responsible for BT's research and innovation – with BT being a top investor in R&D.

• The UK has the world’s most competitive communications market in the world, with unrivalled broadband availability, take-up and prices.
• BT invests billions of pounds each year in infrastructure to boost productivity, create jobs, bring communities together and enrich peoples’ lives.
• Telecoms prices in the UK are down in real terms by 54% since 1990.
• More than 60% of UK homes now have broadband – up from 12% in 2003 and a higher rate than Italy, Spain, Germany, France and the USA.
• We are investing £1.5bn in providing fibre-based services to up to 10m homes by 2012 (40% UK households). Assuming an acceptable environment for investment, we plan to add a further £1bn by 2015, taking coverage to around 66% of the UK.

• Competition is better than regulation for protecting the interests of customers.
• Where there is regulation, it should promote competition.
• Markets worldwide should be open, with state authorities acting to promote competition, encourage innovation and challenge vested interests.
• Financial and social stability will be underpinned by sustainable digital economies.
• Investment in the communications infrastructures of such economies requires regulatory stability, technological neutrality, and appropriate financial rewards.

CityFibre is the UK’s leading alternative provider of full fibre broadband infrastructure, with wholesale open-access full fibre networks in over 50 towns across the UK, delivering reliable, gigabit-capable full fibre connections to consumers in the public sector, business community, mobile operators and residential markets.

Full fibre connectivity is revered for its gigabit speeds, near unlimited bandwidth and consistent reliability. CityFibre is making significant investments in towns and cities across the UK as we look to rapidly expand the number of homes and businesses which have access to full fibre.

As part of our £2.5 billion investment programme, we are bringing full fibre to one million UK homes and businesses by 2021 and 5 million by 2025 - leading the drive to build the digital infrastructure needed to support the UK’s communities, businesses and wider economy.

KPMG LLP, a UK limited liability partnership operates from 22 offices across the UK with over 16,000 professionals led by 630 partners. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative.

Within KPMG’s Technology, Media and Telecommunications practice we focus on the most pressing issues faced by our sector clients in this period of unprecedented change. The mass-adoption of over-the-top (OTT) video platforms is sending shockwaves through the television and film business. Social media and online search continue to take revenues away from traditional ad-funded media. News and information publishers seek to diversify through digital subscriptions, e-commerce and live events. Mergers and acquisitions, joint ventures and strategic partnerships are becoming more prominent by the day as market participants seek to gain scale and acquire complementary capabilities.

The upcoming launch of 5G networks and accompanying gigabit wireless speeds and ultra-low latency promises further redefinition of the boundaries between linear, online and live entertainment. Cloud gaming and e-sports, IOT-enabled devices, AR/VR applications, HD mobile video are just some of the emerging services and use cases that will compete for consumers’ attention and share of wallet. Media executives are striving to develop sustainable business models balancing short term financial goals with long term ambitions.

KPMG has a 360-understanding of these hot issues and the specific threats faced by each of the media segments – television and radio broadcasting, advertising, music, film and news publishing. Our collaborative approach across key international hubs such as London, Silicon Valley, New York, Shanghai and Tel Aviv brings to our clients a powerful lens and repository of insights to help tackle the strategic and operational challenges ahead.

KPMG International’s Trademarks are the sole property of KPMG International and their use here does not imply auditing by or endorsement of KPMG International or any of its member firms