Ref:  32/00
Date: 02 May 2000

Oftel today invited comments on reducing regulation in the increasingly competitive international telecoms market.

In a consultation document published today, Oftel considers whether certain conditions in public telecoms operators licences relating to the international market are still appropriate given the level of competition.

The conditions were introduced to promote competition in international markets and to prevent dominant overseas operators taking advantage of the liberalised UK market to the detriment of UK operators and consumers.

David Edmonds, Director General of Telecommunications said today:

"Since the international market was fully liberalised in 1997, competition has grown considerably and other countries are now seeing the type of choice in telecoms suppliers that we have in the UK.

"Some of the conditions aimed at protecting against foreign monopoly operators may no longer be necessary and indeed may have the unintended effect of preventing consumers from getting the best deal.

"It is vital that regulation does not stifle markets where effective competition exists. Oftel’s strategy is that regulation should only be used when justified and that competition is the best way of achieving a good deal for consumers."

Notes for Editors

1. The consultation document: International controls in PTO licences is available on Oftel's website at www.oftel.gov.uk. Printed copies are available to the media from Oftel's Press Office on (020 7634 8991) and to the public from Oftel's Research and Intelligence Unit (tel: 020 7634 8761).

2.     The consultation period lasts until 28 June 2000. There will be a further period of two weeks for comments on responses. A final statement will be published later this year.

3. The licence conditions considered in the consultation document are as follows:

• Conditions 50 and 60 - Proportionate return. These conditions provide, in effect, that UK operators must send, proportionately, at least as much traffic to any given country as they receive from it. They aim to protect UK operators and consumers from anti-competitive practices by overseas operators on non-competitive routes.

• Condition 61 - Information about accounting rates. This condition requires, amongst other things, that operators must provide the Director General with details of their accounting rate arrangements with overseas operators on non-EEA routes. It is also aimed at protecting the UK from anti-competitive practices by overseas operators on non-liberalised routes.

• Condition 62 - Accounting separation. This condition provides that operators must maintain separate accounting records for their international business. Its purpose is to detect and prevent cross-subsidies which may distort competition.

• Condition 63 - Maintenance of effective competition. This Condition enables the Director General to prevent any activity which he considers is anti-competitive.

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