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17 March 2000

New guidelines that set out how Oftel will determine whether a telecoms company has Market Influence have been published today.

Market Influence is the ability to raise and sustain prices above the competitive level, resulting in higher prices for consumers.

Factors that Oftel will take into account when making a determination include ease of access to markets, trends in market share and concentration, and pricing behaviour.

Having Market Influence will trigger a number of licence conditions that will oblige operators to:

• provide information to Oftel to allow it to monitor operators’ behaviour to ensure that there is no abuse of Market Influence;
• publish information on charges, terms and conditions if requested to do so by Oftel;
• refrain from unduly discriminating against other operators and from unduly preferring its own business; and
• in the case of mobile operators, supply service providers with airtime over their network.

Commenting on the new guidelines, David Edmonds, Director General Telecommunications said today:

"Additional safeguards on companies that have Market Influence are necessary to ensure that consumers are protected from anti-competitive behaviour.

"These safeguards will encourage investment by competing operators to provide innovative new products, resulting in greater choice and better deals for consumers.

"As EU and UK competition law develops, Oftel will move to greater use of general competition law to regulate all levels of market power in the telecoms sector instead of using Market Influence determinations.

"The guidelines will therefore be regularly reviewed to take into account developments in the telecommunications market and the legislative framework."

Notes for Editors

1. The document ‘Guidelines on Market Influence Determinations’ is available on Oftel’s website. Printed 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).

2. Market Influence is a trigger for additional licence conditions which has replaced Well Established Operator trigger in Public Telecommunication Operators (PTO) licences. A Market Influence determination contains fewer conditions than the existing Well Established Operator terms.

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