Ref: 42/01
Date: 18 June 2001

Proposals to ensure that telecoms companies have access to funds to cover the costs incurred by highway authorities to remove redundant telecoms apparatus have been published today by Oftel.

Under the Telecommunications Act 1984, operators must have access to funds available, so that highway authorities can remove items such as phone boxes and street cabinets in the event that a telecoms company ceases to trade or has its licence revoked.

The proposals include:

• a continuation of the current informal measures where individual operators make their own funding arrangements which must be approved by Oftel;
  
  
• the introduction of formal individual company insurance or performance bonds;
  
  
• the establishment of an industry-wide scheme in which all operators would be required to participate.

Announcing the proposals, David Edmonds, Director General of Telecommunications, said today:

"Telecoms operators have a licence obligation to ensure they have access to sufficient funds to cover the removal of redundant apparatus on streets and roads owned by highway authorities.

"If a company ceased to trade and no other operator took over the equipment, redundant items such as phone boxes and street cabinets would need to be removed by highway authorities.

"Although informal arrangements currently exist, as there are now many more telecoms operators Oftel believes that more formal measures are now needed.

"Oftel has suggested a number of possible funding arrangements, and we want to have the views of industry, highway authorities and other interested parties as to how a new scheme might work.

"Any new scheme must be consistent with Oftel's strategy of moving away from regulation where appropriate and encouraging the industry to take greater responsibility."

Any new scheme will apply to mobile phone operators who have masts on public land, although most masts are situated on private land.

Notes to Editors

1. The consultation document is available from Oftel's website at www.oftel.gov.uk/publications/licensing/2001/funds0601.htm . Hard copies are available to the press from Oftel's press office on 020 7634 8991 and to the public from Oftel's research and intelligence unit on 020 7634 8761.

2. Oftel's strategy is one of 'appropriate regulation'. Appropriate regulation means regulation adjusted to the level of competition in the market and focused on the area of concern. Too much regulation, as well as too little regulation, can work against consumers' interests by deterring investment and innovation.