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10|01|05

Ofcom Review of Universal Service requirements

Ofcom today published its Review of the Universal Service Obligation. Universal Service regulation ensures that basic fixed line telecoms services are available to all UK consumers at an affordable price.

Under sections 66 and 67 of the Communications Act 2003, Ofcom requires BT and Kingston Communications to provide a range of universal services including:

• Public call boxes;
• Low cost schemes to help those on low incomes;
• Telephone lines capable of delivering dial up internet access;
• Special services for people with disabilities.

Ofcom's consultation seeks views on proposals which are designed to ensure that existing universal services requirements keep pace with developments in technology and with changes to consumers' needs.

Public Call Boxes

Public call boxes deliver an important service for people who do not use mobile phones, and in areas where mobile coverage cannot be relied upon.

However call boxes can be expensive to maintain and, as such, BT is seeking reduced obligations in this area.

Ofcom believes that decisions on whether to retain or remove public call boxes should only be taken in consultation with local people and organisations. Currently BT and Kingston have to publish plans to remove the last remaining call box from a particular local area, then consult on those plans for 42 days. During this period local public bodies can veto a proposed removal.

Ofcom is proposing that this local veto system should remain , with an extended 90 day consultation period and an appeals process to help with disputes. Ofcom is also consulting on the need for new guidelines to make the system clear and consistent. These guidelines would take account of the:

• Number of households in the area;
• Distance from nearest alternative public call box;
• Number of calls made from a call box and its profitability;
• Status of mobile phone coverage in the area.

Low cost schemes

BT and Kingston have to offer low cost services which target customers with low incomes. Eligibility for these schemes is currently assessed on the basis of customer usage habits. Ofcom is seeking views on the current schemes and on alternative ways to target low income customers in the most appropriate manner including an option suggested by BT.

Ofcom is also calling on BT to promote its schemes more effectively to help customers who are having difficulty paying their phone bills.

Telephone line provision

BT and Kingston must respond to all reasonable requests to install a telephone line, offering the same prices irrespective of location. This obligation upon BT and Kingston is particularly important for those who live in remote areas.

BT's standard charge for installing a new line is £74.99. If an installation costs BT more than £3,400, then the customer must pay the difference above this figure.

Ofcom is consulting on whether this £3,400 level remains appropriate and on proposals for new guidelines to help BT and customers understand what constitutes a reasonable request.

Services for customers with disabilities

BT and Kingston are required to offer special services to customers with disabilities including text relay for people who are deaf or hard-of-hearing, special format telephone bills for people who are blind or who are partially sighted, and a priority fault repair service.

The Typetalk text relay service translates a person's voice into text and gives people who are deaf or hard-of-hearing a vital way of communicating. Ofcom is urging telephone companies to work to make Typetalk available via the internet, and proposing a study to investigate the potential of new video relay services capable of translating voice into British Sign Language.

Funding Universal Service

Universal Service provisions are funded by BT and by Kingston. Ofcom may review funding in the future, consistent with Ofcom's Strategic Review of Telecommunications which identified that the nature of universal service requirements may change over time. However Ofcom has not identified a current need to change the existing funding arrangements.

The full consultation document is available via Related Items to the right of this page and the deadline for responses is 21 March 2005.

Ends.

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