Ref: 15/02
Date: 27 March 2002

Costs should fall for businesses providing services over telephone numbers such as 0800 and 0845 as result of measures announced today by Oftel.

David Edmonds, Director General of Telecommunications said:

"More and more companies offer their customers information services using 0845 and 0800 telephone numbers.

"Regulation was originally needed to require BT's prices to be transparent and non-discriminatory, and to ensure consumers' demands for the services were met as competition was not fully effective.

"But prices for these services have now fallen substantially and there are over a hundred potential suppliers to choose from.

BT’s market share has declined in recent years, whilst the market shares of its competitors have risen. So I no longer see a need to have a special regime for BT.

"Oftel now intends, therefore, to remove these restrictions on BT. As a result, BT will have total freedom to compete in the market on price and service with the potential for better deals for businesses.

"Today’s announcement follows on from Oftel’s recent announcement to reduce regulation in the international calls market and on BT’s price notification process.

"It shows that regulation may well be needed to stimulate competition in telecoms markets - but when that competition is established, regulation can be put to one side.

Notes to editors

1.Effective competition review of number translation services is published on Oftel’s website at http://www.oftel.gov.uk/publications/numbering/2002/nts0302.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 Information Unit on 020 7634 8761.

2.Companies using 0800 and 0870 numbers need to contract with a telecoms operator service provider so that calls made on such "national" numbers are properly routed to the particular geographic location at which the call is answered. This is a specialised telephony market known as Number Translation Services or NTS. It is particularly relevant for call centres.

3. In order to ensure demands for the services were met, and in the absence of effective competition, BT has been required by Oftel to provide voice Number Translation Services on a non-discriminatory basis and to publish the prices at which it provides the service.

4.Oftel has recently reviewed the market and concluded that the market is now effectively competitive, allowing the removal of these restrictions on BT. It issued a consultation document to that effect, Effective competition review of number translation services, which is available on Oftel’s website at www.oftel.gov.uk/publications/numbering/index.htm. (Copies are also available to journalists from Oftel’s Press Office on 020 7634 8991 and to the general public from Oftel’s Research and Information Unit on 020 7634 8761.)

5. Following the consultation, Oftel had decided to proceed with its proposals. They will be given effect by a determination under Condition 43 of BT’s licence removing the requirement to supply voice 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).

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