Annex E: Telecoms Review

2G

Second generation of mobile telephony systems using digital encoding. 2G networks support voice, low speed data communications, and short messaging services.

2.5G

In mobile telephony, 2.5G protocols extend 2G systems to provide additional features such as packet-switched connections (GPRS) and enhanced data rate

3G

Third generation of mobile systems. Provide high-speed data transmission and supporting multimedia applications such as full-motion video, video-conferencing and Internet access.

Access Competition

Competing telecoms networks which reach all the way to the customer. For example, when a cable operator competes with BT, it does so by having a separate wire into a home or business.

ADSL

Asymmetric Digital Subscriber Line. A digital technology that allows the use of a copper line to send high bandwidths in one direction and a lesser bandwidth in the other.

Allocative efficiency

Achieved when prices are close to cost: this ensures that all consumers who value a product at more than its cost are able to purchase it.

Altnet(s)

Alternative fixed network operator

AT&T

The American Telephone and Telegraph Company.

ATM

Asynchronous Transfer Mode, a form of high speed data communications

Bluetooth

Wireless standard for short-range radio communications between a variety of devices such as PCs, headsets, printers, mobile phones, and PDAs.

British Telecommunications Act

The 1981 British Telecommunications Act, which separated British Telecommunications (BT) from the Post Office.

Broadband

An service or connection generally defined as being "always on", and providing a bandwidth greater than 128kbit/s.

BRT

British Rail Telecom

BSG

Broadband Stakeholders Group

BT

British Telecommunications plc.

Bundling

Linking the purchase of one product or service to another, either by selling only as a package, or through the use of discounts for joint purchasing.

CC

Competition Commission

Communications Act

Communications Act 2003, which came into force in July 2003.

Corporate network services

Data networking services provided to corporate customers, such as wide area networks

CPI

Comparative Performance Indicato

CPS

Carrier Pre-selection. The facility offered to customers which allows them to opt for certain defined classes of call to be carried by an operator selected in advance (and having a contract with the customer) without having to dial a routing prefix, use a dialler box, or follow any other different procedure to invoke such routing

Data Networks

A network established and operated for the specific purpose of providing data transmission services

DSL

Digital Subscriber Line. A family of technologies generally referred to as DSL, or xDSL, capable of transforming ordinary phone lines (also known as 'twisted copper pairs') into high-speed digital lines, capable of supporting advanced services such as fast Internet access and video-on-demand. ADSL, HDSL (High data rate Digital Subscriber Line) and VDSL (Very high data rate Digital Subscriber Line) are all variants of xDSL)

Duopoly Framework

The telecoms regulatory framework applying in the UK from 1984 to 1991, when fixed telecoms were provided by a duopoly of BT and Mercury

DVB

Digital Video Broadcasting

Dynamic efficiency

Achieved when firms have the correct incentives to invest (e.g. in new infrastructure) and to innovate (e.g. to generate new technologies or products).

EBITDA

Earnings Before Interest, Depreciation and Amortisatio

Enterprise Act

Enterprise Act 2002, which among other things, updates the current UK merger control framework with certain significant amendments

ETSI

European Telecommunications Standards Institute, which has the primary responsibility within Europe for the production of telecommunications standards for pan-European application

Ex ante

Before an event takes place

Ex post

After an event takes place

FCC

Federal Communications Commission. The US regulatory body that regulates all inter-state and foreign communications by wire, radio and television. Intra-state communications are regulated by state public utilities commissions.

Frame Relay Service

A packet switched data service providing for the interconnection of Local Area Networks (LANS) and access to host computers

GDP

Gross Domestic Product

GPRS

General Packet Radio Service, a packet data service provided over so-called 2.5G mobile networks

GSM

Global Standard for Mobile Telephony

Horizontal consolidation

Mergers of companies who provide services in the same product market or the same stage in the value chain.

ICT

Information and Communications Technology

IETF

Internet Engineering Task Force, consisting of over 80 working groups responsible for developing Internet standards.

Infrastructure based competition

Competition between alternative telecoms operators who use their own infrastructure to supply some or all of the call routing

Interconnection

The linking of one Public Electronic Communications Network to another for the purpose of enabling the persons using one of them to be able (a) to communicate with users of the other one; (b) to make use of services provided by means of the other one (whether by the provider of that network or by another person).

Interface

A set of technical characteristics describing the point of connection between two telecommunication entities.

Internet telephony

A specific type of VoIP service that uses the public Internet to carry the IP traffic (also referred to as Voice over the internet).

Internet

A global network of networks, using a common set of standards (e.g. the Internet Protocol), accessed by users with a computer via a service provider.

Interoperability

The technical features of a group of interconnected systems which ensure end-to-end provision of a given service in a consistent and predictable way.

IP

Internet Protocol. The packet data protocol used for routing and carriage of messages across the Internet and similar networks.

ISP

Internet Service Provider. A company that provides access to the Internet.

ITU

International Telecommunications Union. A group of representatives from 161 countries headquartered in Geneva, Switzerland. The ITU publishes recommendations that influence telecom engineers, designers, manufacturers, and service providers around the world. These have the status of an international treaty and are binding on member states.

LAN

Local area network. A network allowing the interconnection and intercommunication of a group of computers on a single site, primarily for the sharing of resources and exchange of information (e.g. email).

LLU

Local Loop Unbundling. A process by which BT's exchange lines are physically disconnected from BT's network and connected to other operators' networks. This enables operators other than BT to use the BT local loop to provide services to customers.

Local access

Connection between the customer's premises and the local PSTN exchange.

Local Loop

The access network connection between the customer's premises and the local PSTN exchange, usually a loop comprised of two copper wire

Long distance network competition

Competitors use their own networks for the long distance portion of the call, but use the established operator's network for the local access part of the call.

LRIC

Long Run Incremental Cost. The costs caused by the provision of a defined increment of output, taking a long run perspective, assuming that some output is already produced. The 'long run' means the time horizon over which all costs (including capital investment) are variable.

Market power

The ability to raise prices above the competitive level for a non-transitory period.

Mercury

Mercury Communications Limited, the only fixed telecoms competitor to BT from 1984 to 1991.

Messaging service

A service enabling customers to exchange messages with each other through 'mailboxes' embedded in network equipment. Both voice and text messaging services are available.

MMC

Monopolies and Mergers Commission

MPLS

Multi Protocol Label Switching, an IP technology used in many virtual private network (VPN) services

Narrowband

A service or connection providing data speeds up to 128kbps, such as via an analogue telephone line, or via ISD

National Rate

The tariff for calls within the national call are

NRA

National Regulatory Authority

NTS

Number Translation Services. Telephone services using non-geographic, where that number is translated to a geographic or mobile number for final delivery to the called party.

OECD

Organisation for Economic Cooperation and Development.

OEE

Office of the E-Envoy

Ofcom

Office of Communications. The regulator for the communications industries, created by the Communications Act

Oftel

Office of Telecommunications, whose functions transferred to Ofcom on 29th December 2003.

ONS

Office for National Statistics

PDA

Personal Digital Assistant

Productive efficiency

Achieved when the costs of production are minimised.

PSTN

Public Switched Telephony Network.

ROCE

Return on Capital Employed.

RPI

Retail Price Index

Satellite DTH

Satellite Direct to Home television services, such as that provided by BSKyB in the UK

SDSL

Symmetric Digital Subscriber Line. Unlike ADSL, it offers the same fast data rate speeds in both directions.

Service provider competition

Competitors who do not own all their own infrastructure, but provide services that are conveyed over others' networks

Service provider

A provider of electronic communication services to third parties whether over its own network or otherwise.

SME

Small or Medium sized Enterprise.

SMP

Significant Market Power. This test is set out in the EU Framework Directive, and is aligned with the competition law definition of "dominance". It is used by Ofcom to identify those operators who may be required to meet additional regulatory obligations.

Spam

Unsolicited commercial email of other unsolicited communications.

Telecommunications Act

Telecommunications Act 1984

Telecommunications, or 'Telecoms'

Conveyance over distance of speech, music and other sounds, visual images or signals by electric, magnetic or electro-magnetic means.

Tetherless

Devices connected to a network which have limited mobility,using short range radio-based systems, such as DECT, Bluetooth and Wireless LAN

Universal Service Provider

Telecoms operators who are designated by Ofcom as Universal Service Providers. Currently BT and Kingston Communications in the city of Hull

Universal Service

Under the Communications Act, the set of telecoms services set out by the Secretary of State which define a certain minimum set of services that should be provided to all citizens, or to those with special needs.

USO

Universal Service Obligations. The set of Universal Services that Universal Service Providers are required to supply

Value chain

The sequential stages in production of a product or service

VANS

Value Added Network Services

Vertical integration

Mergers , or co-ownership between, producers that are active in different stages in the value chain for a particular good or service

VoIP

Voice over Internet Protocol. A technology that allows users to send calls using Internet Protocol, using either the public Internet or private IP networks.

VPN

Virtual Private Network. A technology allowing users to make inter-site connections over a public telecommunications network that is software-partitioned to emulate the service offered by a physically distinct private network.

WAN

Wide area network. A network allowing the interconnection and intercommunication of a group of computers over a long distance.

WAP

Wireless Application Protocol.

Wireless LAN or WiFi (Wireless Fidelity)

Short range wireless technologies using any type of 802.11 standard such as 802.11b or 802.11a. These technologies allow an over-the-air connection between a wireless client and a base station, or between two wireless clients.

WiMax

802.16, a fixed wireless access technology

WLR

Wholesale Line Rental. A regulatory instrument requiring the operator of local access lines to make this service available to competing providers at a wholesale price.