Oftel has today published its new approach to regulation designed to enable consumers get the best deal from the rapidly developing telecoms market.

At the heart of the strategy is a rolling back of formal regulation where competition is effective and already protects consumers. There will be more self-regulation by the industry and co-regulation where some control is still needed, with a stronger emphasis on preventing anti-competitive practices.

Oftel has also announced that it will carry out a cycle of major reviews of key sectors of the telecoms market over the next few years, to see if competition is effective in delivering benefits to consumers and, if so, whether regulation is still necessary.

Oftel's new regulatory approach and timetable of reviews are set out in the Oftel strategy statement 'Achieving the best deal for telecoms consumers' published today.

David Edmonds, Director General of Telecommunications said today:

"This is the most significant change in Oftel's approach to regulation since 1984.

"As telecoms markets become more competitive Oftel needs to review its approach to regulation.

"Up to now regulation has focussed on opening up a previously monopoly market, to promote competition and protect consumers. Oftel’s new approach is to focus on effective competition which gives the customer the best deal. Over-regulation distorts markets and disadvantages consumers. Regulation should be appropriate to the level of competition.

"Oftel’s new strategy is therefore one of ‘competition plus’. This means effective competition to protect consumers' interests wherever possible. But where there is not yet effective competition or where consumers need extra protection, then Oftel will regulate - with as light a touch as possible.

"Consumers will have the same protection but with less formal regulation. Oftel will no longer promote competition in competitive markets, but will continue to act to prevent anti-competitive practices and adequately protect consumers.

"The telecoms industry itself will have a key role to play to ensure that 'self regulatory' and ‘co-regulatory’ initiatives succeed.

"These include the industry making it easier for consumers to identify and compare price and quality and availability of services and suppliers, and working together to protect consumers interests in those areas where a cross-industry approach is called for."

David Edmonds said that Oftel will carry out a series of major reviews of the key telecoms markets.

"The reviews of key telecoms markets will be necessary to establish whether competition is delivering the best deal for consumers and whether there need to be

changes to regulation to ensure it remains appropriate.

"The reviews will include benchmarking against other countries to see if UK consumers are getting a deal at least as good as those abroad."

Notes to Editors

Oftel’s strategy statement ‘Achieving the best deal for telecoms consumers’ is available on the website. Hard copies are available to the media from Oftel’s Press Office (tel: 0171-634 8991) and to the public from Oftel’s Research and Intelligence Unit (tel: 0171-634 8761).