Ref: 64/00
Date: 23 August 2000

Oftel today published Implementing Oftel’s strategy: effective competition review guidelines. The guidelines set out the process for conducting reviews of telecoms market segments to establish whether or not they are effectively competitive.

Oftel announced in its Management Plan earlier this year that it would be conducting regular reviews to assess the extent of competition. These reviews will enable Oftel to meet its objective of regulation appropriate to the level of competition. Where competition is effective, Oftel’s aim is to withdraw regulation to promote competition. Equally if competition is not effective, then regulation may still be needed.

David Edmonds, Director General of Telecommunications, said:

"Effective competition leads to tangible benefits for consumers such as lower prices, higher quality and greater choice of services.

"These guidelines show how Oftel will review competition in different markets, starting later this year with the mobile market and Internet access market, both dynamic markets which are evolving rapidly.

"A key feature of the reviews is the involvement of interested parties outside Oftel in the consultation process. These guidelines are designed to make the review process transparent and enable as broad a range of stakeholders as possible to input their views."

The guidelines set out timescales for the reviews, which will take around 36 weeks to complete.

Oftel will identify the market segments to be reviewed and look at the different indicators of effective competition that are set out in the document. Oftel will then assess the level of regulation appropriate to the extent of competition. Different policy options will be put forward for consultation.

Note to editors
Implementing Oftel’s strategy: effective competition review guidelines is available on the Oftel website at www.oftel.gov.uk/about/crev0800.htm Hard copies are available to the media from the Press Office on 020 7634 8991 and to the public from the Research and Intelligence Unit on 020 7634 8761.

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