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Access Code Workshop to discuss the draft Cost Benefit Analysis (CBA) - 1st Meeting - 6 December 1999 Layout image
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Agenda

  1. Introduction
  2. Presentation by OVUM
  3. Question & answer session
  4. Next Step

Panel Members

Chairman                             Alan Bell                       Director of Strategy and Forecasting
Secretary to the meeting       Christine Thompson      Oftel Numbering Officer
OVUM Representative        David Lewin
OVUM Representative        Claire Milne


Minutes of meeting

  1. The Chairman welcomed the attendees who represented operators and service providers. He introduced the               OVUM representatives, Claire Milne (CM) and David Lewin (DL), and outlined the structure of the workshop. He explained that OVUM would present their findings from the CBA, and would be content to take questions or comments following the presentation.
  2. CM thanked the industry for providing OVUM with information required in undertaking the CBA.
  3. CM explained that access codes were scarce given their limited supply, and that the availability of new access codes, particularly Type B codes, was already nearing exhaustion. As a consequence, there was a need to consider ways of increasing the current supply of access codes. The CBA included three options for change, with each being measured against a theoretical ‘perfect solution’ in order to arrive at the least cost method of increasing the supply of access codes. [Click here to view the slides].
  4. DL explained that, of the three options considered, the CBA and sensitivity analysis indicated that Option 1 (which involved redesignating unused 3-digit type A codes and lightly used Type C codes as Type B codes) would offer the least cost option for the UK economy. However, he also indicated that consideration should be given as to whether Option 1 should be implemented in one go or on a phased basis. He argued that the Net Present Cost (NPC) of Option 1 indicated that a phased approach, in which only unused A codes would be initially converted to 5-digit B codes, would afford a better solution.   In discussion , the following main points were made:
    • consideration should be given to allocating numbers on a regional basis as is the case in a number of European countries. However, OVUM explained that this consideration was not within the terms of its reference. Moreover, they indicated that this option operators working on a national basis or with future aspirations of becoming a national operator may have reservations about using regionally restricted numbers. However, Type C codes were already regionally based;
    • whether the current division of access codes into three types was necessarily the best method of allocating access codes, or whether there was a case for considering a fourth Type (Type D);
    • concern was expressed that the NPC of Option 2 may have been distorted, both in terms of CPE changes (as affecting service providers) and dialling extra digits (as affecting users) being overstated. In particular, it was argued that the costs associated in issuing new smart boxes and reprogramming PBXs to autodial the new B codes appeared to be unrealistic. It was also argued that Option 2 had been overstated given that there was little indirect access utilisation at the moment;
    • It was argued that the CBA should be solely focussing on the interests of consumer alone, rather than the UK economy as a whole;
    • DL explained that while the primary objective of the CBA had been to consider ways of increasing Type B codes,OVUM had also been asked to consider whether there was an economic case for charging for access codes. However, he stated that that this was only an initial economic analysis, and would form part of the larger study on numbering issues currently being     undertaken by Oftel, including charging for numbers.
  5. DL indicated that the results of the CBA concluded that while there was an argument for charging for B codes, this was  not the case for A and C codes. In particular, it was argued, charging for B codes, would help deter frivolous or premature applications as well as encourage service providers with unused or little used B codes to return them for reissue.
  6. Those present expressed concern in relation to the status of the recommendations on charging in the CBA, and argued   that other methods of rationing Type B codes in addition to charging should be considered.
  7. Summing up, the Chairman thanked those present for attending. He explained that OVUM would be reviewing the CBA in the light of comments expressed at the workshop, and would be submitting a final version to Oftel in the near          future. The Chairman indicated that Oftel would be undertaking a consultation exercise on methods of increasing the supply of access codes early in the new year, with the objective of issuing a statement towards the end of 2000.

Background Document

Please click here for final draft of Access Code CBA.


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