13 September 2001

Initial findings of a review of the level of competition in the market for voice Number Translation Services (NTS) have been published today by Oftel.

NTS enable companies to provide callers with information or value-added services using non-geographic numbers such as 0800 and 0845. The services provided through NTS range from freephone charitable helplines to premium rate information services. Callers pay a variable charge depending on the type of service being called.

After an initial review, which included an analysis of information from stakeholders, Oftel considers that the market for voice NTS is effectively competitive.

The provisional conclusions and analysis are set out in the consultation document "Effective competition review of number translation services" published today.

David Edmonds, Director General of Telecommunications, said today

"The growing use of call centres means services using 0800 and 0845 numbers have increased dramatically. The number of NTS providers increased by 50 per cent between March 1999 and December 2000. NTS customers can now choose between more than a hundred different suppliers.

"If Oftel finds that the NTS market is effectively competitive, the current regulations on BT regarding the provision of these services will no longer be necessary and Oftel will remove them.

Oftel will consult closely with its stakeholders in coming months before making a final decision."

Oftel will seek detailed information from stakeholders, including NTS providers and customers, as part of the consultation process. A statement will be published later in the year.

Notes to editors

1. Oftel’s consultation document Effective competition review of number translation services issued by the Director General of Telecommunications is published on Oftel’s website at www.oftel.gov.uk. Copies are available to journalists from Oftel’s Press Office on 020 7634 8991 and to the general public from the Research and Intelligence Unit on 020 7634 8761.

2. The review process will follow procedures set out in the Oftel document Implementing Oftel’s strategy: effective competition review guidelines, available on Oftel’s website at www.oftel.gov.uk/publications/about_oftel/crev0800.htm. Oftel’s strategy is to withdraw from regulation when markets are effectively competitive. If competition in a market is not effective, then regulation may still be required.

3. Condition 43 of BT’s licence requires it to supply telecommunications services (including NTS services) to any person who reasonably requests them. Linked to this obligation is a requirement not to unduly prefer or unduly discriminate (Condition 57) and to publish prices (Condition 58). The review will consider if these conditions should still apply in relation to NTS.

4. This review covers:

• Freephone: Services typically use 0800/0808 number range. This is a toll-free service which enables customers (which means the organisation to which the calls are made) to be called free of charge from anywhere in the UK. The customer (the called party) pays the full cost of the call.
• Local rate: Services typically use 0845 number range. Customers can be called from anywhere in the UK at a local call rate. The caller pays the local rate and the customer pays the balance.
• National rate: Typically uses 0870 number range. Customers can be called from anywhere in the UK at the national rate. The caller pays the full national rate and the customer pays nothing.
• Premium Rate Service (PRS): Use 09XX number range. Callers pay for the cost of the call together with a variable charge for the content of the call. Customers earn revenue from the calls.

NTS data services, for example use of 0845 numbers for dial-up Internet access, are unaffected by this review.