As businesses that bridge the gap between technology providers and end-users, channel resellers face unique legal challenges that can significantly impact operations and growth. From intricate licensing requirements to stringent data protection laws, these complex requirements can feel like a headache to navigate. What’s more, non-compliance can come with major repercussions — including fines, reputational damage, and operational disruptions, to name a few.
So, which telecommunications laws and regulations should resellers have on their radar right now? And how should these translate into everyday business practices? In this blog, we uncover all the must-know insights, so you can stay compliant and competitive.
What is telecommunications law?
Telecommunications law is a complex and constantly evolving field governing the regulation and operation of telecommunications systems and services.This area encompasses a number of regulations affecting everything from the deployment of network infrastructure to the protection of user data and compliance with varying service standards.
When we refer to telecommunications law, UK resellers understand they have a number of obligations to adhere to. However, without a telecommunications law firm well versed in the intricacies of these regulations, it can be challenging to navigate the complexities of compliance on your own.
Adhering to telecommunications lawful business practice is about more than knowing the rules — it requires a deep understanding of how these practices apply to every aspect of your operations.This includes ensuring your master service agreements (MSAs), data protection measures, and network security protocols align with both domestic standards and international requirements. EU telecommunications law, for example, will differ significantly in some areas, having a knock-on impact on cross-border transactions.
Which telecommunications laws and regulations are the most important?
There are no loopholes or cut-throughs when it comes to telecommunications law — any registered business that trades in the sector must abide by various standards. Plus, as the landscape evolves, so does the number of practices business must comply with. However, there are a number of codes, practices, policies, and frameworks that are vital to prioritise:
General Data Protection Regulations (GDPR)
Under the General Data Protection Regulation (GDPR), technology service companies must ensure that data protection obligations are consistently enforced across their entire supply chain. Specifically, when a primary data processor (main contractor) uses a secondary data processor (sub-processor), the same stringent data protection standards must apply to the sub-processor.
This requirement, known as ‘flowing down’ terms, means that all relevant data protection, confidentiality, and information security obligations must be passed on through the supply chain. To remain compliant with this facet of telecommunications law, companies must carefully integrate these terms into their contracts, ensuring that GDPR standards are upheld at every level and safeguarding both themselves and their clients from potential breaches or legal issues.
It is important to note that this requirement applies across all contracts and relationships, not just those specific to telecommunications. GDPR compliance is required universally, meaning that data protection terms should be included in all agreements involving data processing, regardless of the sector.
Telecommunications Security Act (TSA)
The Telecommunications (Security) Act 2021 (TSA) introduces a comprehensive security framework for UK telecommunications providers, detailing regulations and a code of practice to strengthen the industry’s security. The act mandates different security measures and timelines based on whether the provider is classified as Tier 1, 2, or 3, making it essential for resellers to understand their obligations — not least those supplying public telecommunications providers, who must also navigate “flow down” terms that extend compliance requirements to their contracts, necessitating more thorough due diligence procedures.
Product Security and Telecommunications Infrastructure Act (PSTI)
The Product Security and Telecommunications Infrastructure Act 2022 focuses on enhancing the security of digital infrastructure and telecommunications products, introducing stringent requirements for the security of connected devices and telecommunications equipment. Manufacturers and suppliers must ensure that their products meet specified security standards to protect against cyber threats and vulnerabilities.
The Act also addresses the security of telecommunications infrastructure, requiring providers to implement risk assessment measures, report security incidents, and maintain robust security controls to safeguard critical infrastructure from growing threats. For resellers, complying with these requirements is essential for protecting their operations and meeting regulatory expectations related to product and infrastructure security.
Network and Information Systems (NIS) Regulations
The Network and Information Systems (NIS) Regulations 2018 establish crucial cybersecurity requirements for operators of essential services and digital service providers in the UK. These regulations mandate robust measures for protecting network and information systems from cyber threats, and require incident reporting to minimise disruptions.
Resellers need to be aware of NIS because it impacts how they manage and secure their own systems, particularly if they handle or support essential services — such as those within the public sector. Understanding NIS ensures that resellers can meet compliance obligations, protect their operations from cyber risks, and effectively support their clients in adhering to these standards.
Ofcom General Conditions
Ofcom’s General Conditions impose obligations on public electronic communications providers. They include transparency requirements for clear service information and pricing, non-discrimination to ensure fair treatment of all customers, and quality of service standards to guarantee reliability and performance — this includes maintaining service availability, managing outages effectively, and addressing customer complaints in a timely manner.
Within this, providers must also adhere to general commercial laws, including consumer protection rules that cover everything from fair billing to effective dispute resolution. Clear terms and conditions (Ts & Cs) play a crucial role here, ensuring these obligations are clearly communicated and enforced. Resellers need to comply with these conditions to align with the broader regulatory framework and maintain high service standards.
Communications Act
The Communications Act 2003 outlines the UK’s regulatory framework for telecommunications and broadcasting. It establishes Ofcom’s role and powers, sets regulatory objectives such as promoting competition, and regulates market entry and spectrum allocation. Understanding this Act helps resellers navigate regulations, so they can be confidently aligned with Ofcom’s goals and comply with the necessary requirements.
RM116 / Network Services 3 framework
While this is a framework, rather than a specific type of telecommunications law, it’s crucial resellers understand why it’s so important in a legal sense. Managed by the Crown Commercial Service (CCS), it represents a streamlined and structured procurement route for public sector organisations seeking network solutions.
However, due to the detailed contractual requirements, resellers must navigate complex legal obligations throughout the process. These include compliance with specific framework terms — such as those surrounding audit rights, indemnity and liability, and delivery schedules, to name a few — adherence to flow-down obligations for subcontractors, and alignment with broader regulations such as GDPR and the Telecoms Security Act. Understanding these aspects is essential for resellers to ensure compliance, manage risks, and uphold legal standards effectively.
Electronic Communications Code and Wireless Telegraphy Act
The Electronic Communications Code and Wireless Telegraphy Act 2006 govern the use of radio spectrum, as well as the operation of electronic communications networks and services. This is critical for managing spectrum allocation and ensuring that it is used efficiently and effectively.
Providers must obtain licences to operate within specific frequency bands and must comply with technical and operational requirements to avoid interference with other spectrum users. The Act also sets standards for network operation, including requirements for network security, reliability, and technical interoperability. Ensuring compliance with these regulations helps resellers manage their communications services within legal boundaries, maintain high service quality, and minimise potential interference issues.
What are the risks of not complying with telecommunications law?
If a business doesn’t comply with telecommunications law, the implications can be vast and far reaching — including, but not limited to:
- Financial penalties. Breaches of data protection regulations like GDPR can lead to hefty fines, while failure to adhere to network security requirements might incur penalties under laws like the Telecommunications Security Act (TSA). The severity of the fine imposed, and which regulatory body it is imposed by, will be determined by the specific act of non-compliance.
- Legal action and litigation. Regulatory breaches can lead to legal action from both regulators and affected parties. Businesses may face lawsuits for failing to protect user data adequately or for not adhering to contractual obligations, which can result in lengthy and costly legal battles.
- Reputational damage. A company found to be non-compliant may suffer considerable damage to its reputation — deterring current and potential clients, impacting relationships with partners and stakeholders, and harming the overall brand image, making it difficult to rebuild credibility.
- Operational disruption. Non-compliance can also lead to operational disruptions, including service outages or restrictions on business activities. Failing to meet security standards may result in enforced shutdowns or modifications to network operations, for example, impacting service delivery and customer satisfaction.
- Heightened scrutiny. If a business is found to be non-compliant with certain facets of telecommunications law, it may face increased scrutiny from regulators. This heightened oversight can lead to more frequent audits, additional compliance requirements, and an overall more challenging regulatory environment.
Against such a multifaceted range of repercussions in the world of telecommunications, lawful business practice is evidently crucial for resellers today. By leveraging the expertise of a seasoned telecommunications law firm, companies can proactively manage risks, safeguard operations, and focus on growth without the constant worry of legal pitfalls.
Cost-effective telecommunications law expertise
The disproportionate fees charged by many city law firms is a major barrier impacting this space. Whether you’re a startup with limited capital, or an established channel reseller with competing financial priorities, legal counsel can often feel out of reach.
That’s why, at Trenches Law, we’re proud to follow a more pragmatic approach, charging clients in a way that works for them – whether that’s done on the traditional accrual of time spent, or on a fixed-fee basis. Being clear and upfront from the very beginning is what helps us build authentic, long-term relationships. So, whichever payment approach they opt for, we’ll treat their budget as if it’s our own. Not many telecommunications law firms have the same focus on flexibility.
We understand that channel resellers are often caught between rapid technological advancements and evolving legal frameworks. We’re keen to help break down barriers to fuel progress. Our deep expertise in telecommunications law allows us to offer clear, actionable insights into the regulatory environment that governs your industry.
