Ref: 53/00
Date: 25 July 2000

Mobile network operators will not be required to establish  free standing data bases for pre-pay customers, Oftel has announced today.

Each network uses a database to record the amount of credit on customers’ prepay phones and the rate at which it is used up through making calls.

Oftel consulted with the industry over whether there were any advantages of setting up a  database system that all operators and independent service providers could use on an equal basis.

Oftel has concluded that a regulatory obligation to separate pre-pay databases from the mobile networks is unlikely to lead to any greater consumer choice at this time.

David Edmonds, Director General of Telecommunications, said today:

"Oftel's strategy is one of regulatory intervention only when necessary. After consulting with the mobile industry, we have concluded that there is no advantage for databases to be separated from each network.

"We believe that that telecoms operators and service providers can work together to ensure consumers obtain the best deal possible in terms of innovative tariffs and services from a range of providers."

Pre-pay services are reliant on databases that record credits purchased by customers. Oftel sought the views of the Industry about whether pre-pay databases should be separated from the mobile networks.

However, this would have required significant redesign of the systems currently operated by BTCellnet and Vodafone. The alternative chosen allows service providers more flexible use of the networks’ own databases and/or access to connect their own systems.

Oftel will be undertaking a full review of competition in the mobile market later this

year as part of its long term strategy.

Notes to Editors

1. The Statement 'Wholesale pre-paid mobile services' is available on Oftel's website at http://www.oftel.gov.uk/competition/ppay0700.htm Copies are also available to the media from Oftel Press Office on (020) 7634 8991 or to the public from Oftel’s Research and Intelligence Unit on (020) 7634 8761.

2. Oftel has concluded that the consultation exercise failed to identify consumer

benefits which would flow from the interventionist approach which could not be

achieved, with less disruption, by one of the alternative options.

3. The statement warns BTCellnet and Vodafone that they are expected to be responsive to the reasonable technical requirements of independent service providers which want to offer innovative new services. Oftel has powers to take action against BTCellnet and Vodafone if competition fails to deliver a satisfactory outcome

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