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08|07|04

Ofcom complaints process reduces unnecessary regulatory intervention

Ofcom today published a report on its first six months of work in competition regulation in telecommunications. The report highlights the consequences of a new approach to complaints and disputes investigation derived from Ofcom's commitment to regulate with a bias against intervention.

That approach, first proposed in February 2004 with final guidelines published today, is intended to reduce unnecessary regulatory investigation and allow better targeting of resources at the critical bottlenecks inhibiting fair and effective competition in the communications sector.

The new complaints and disputes guidelines state that:

• Evidence and approval at senior level (CEO or Company Officer) is required before Ofcom will formally investigate a complaint or a dispute.
• The scope of an allegation must be clearly defined.
• Ofcom may decline to resolve the dispute if alternative dispute resolutions processes could be used instead.
• When it has accepted a complaint or dispute, Ofcom will resolve the issue as quickly as due process allows - typically within four to six months.

Withdrawal from unnecessary regulatory activity

As a result of this new approach, a significant number of trivial or unsubstantiated complaints have been rejected and the number of investigations by the regulator has been reduced.

Between January and June 2004, of 129 requests for investigation received:

• 32 were considered for preliminary investigation (25% of all requests received).
• Of these, only 10 were found to warrant full investigation by the regulator (8% of all requests received).

Ofcom's new approach represents a marked departure from the process used previously. By way of comparison, during the six months to December 2003, of the 98 requests for investigation received by Oftel:

• 85 were considered for preliminary investigation (87% of all requests received)
• Of these, 38 were found to warrant full investigation by the regulator (39% of all requests received).

The refusal to support requests for intervention which Ofcom believes to be unwarranted has released internal resource for those important areas where fair and effective competition is hindered and where the regulator can and should step in. Key areas of focus for Ofcom so far have been:

Broadband

• Completion of wholesale broadband access market review
• Reduction in IPStream to Datastream migration charges
• Setting of IPStream/Datastream margin to stimulate wholesale competition
• Local Loop Unbundling - reductions in BT's charges to wholesale operators
• Local Loop Unbundling - appointment of Telecoms Adjudicator to address operational process issues

Narrowband

• New local calls product for Carrier Pre-Select operators
• Resolution of BT's product management (PPP) charges to other operators
• Launch of new Wholesale Line Rental product for analogue lines

Leased Lines

• Completion of Leased Lines market review
• Setting charges for Partial Private Circuits (PPC)

Mobile

• Completion of market review and setting of call termination charges.

Ofcom Chief Executive Stephen Carter said: "Fewer, better and faster investigations helps industry and allows us to target those areas where intervention is both necessary and justified."

Ends.

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