Ref: 65/02

Date: 04 November 2002

New procedures to reduce the time it takes to resolve disputes between telecoms companies have been proposed today by Oftel and the Radiocommunications Agency.

The proposals build on significant internal management reform, put in place by Oftel in 2002 to improve its performance on dispute resolution.

The proposed new procedures put greater emphasis on companies to demonstrate that they have been unable to reach an agreement and are in genuine dispute - which they require Oftel to resolve.

Key proposals include:

• a clear set of criteria by which disputes will initially be assessed - cases that don't meet these criteria will not be considered;
• to ensure greater transparency in the dispute resolution process, Oftel will publish the Competition Bulletin as a live, web-based document, adding disputes as they are accepted rather than as a quarterly publication;
• once the scope of the dispute has been agreed, Oftel will not look at further issues in the course of the investigation except in special circumstances;
• Oftel will automatically use its formal powers to request information needed to resolve the dispute - this will be implemented with immediate effect.

The new procedures will ensure that Oftel can resolve disputes within four months - as required by the new EU directives.

Although the EU requirement only applies to disputes resolved under the Framework Directive, Oftel will also set tight targets for disputes considered under the Competition Act, own initiative investigations and consumer complaints on unfair contract terms.

David Edmonds, Director General of Telecommunications said today:

"It is important for everyone concerned that disputes are resolved quickly and effectively, after careful consideration of all the relevant information.

"Oftel has already taken steps to improve its dispute resolution process and last year resolved 82 per cent of disputes within the existing target of six months.

"But unnecessary time can be taken up considering disputes where parties have not made genuine attempts to negotiate or which could be more effectively resolved by other means.

"By setting out clear criteria by which a complaint will be considered the emphasis is on operators to consider any complaint carefully before submitting it to Oftel.

"Oftel will be able to reduce the time it takes to resolve a dispute by targeting its resources more effectively towards cases where providers are in genuine dispute.

"Meeting the EU targets is a big challenge for Oftel, but the success of improvements already introduced and this further streamlining of the dispute resolution process makes me confident that we can deliver."

David Edmonds also welcomed the fact that these proposals are published in conjunction with the Radiocommunications Agency - who may also need to consider disputes under the new EU regime:

"The fact that these proposals are published jointly with the Radiocommunications Agency is a good example of the current regulators working effectively together to build practices and procedures for an effective OFCOM in the future."

Notes to editors

1. The consultation document Dispute resolution under the new EU Directives is available on Oftel’s website at www.oftel.gov.uk/publications/eu_directives/2002/disp1102.htm. Hard copies are available to the media from Oftel’s Press Office on 020 7634 8991 and to the public from the Research and Information Unit on 020 7634 8761.

2. The DTI/DCMS have published the new dispute resolution clauses in the draft Communications Bill at www.communicationsbill.gov.uk.

3. The Radiocommunications Agency is an executive agency of the Department of Trade and Industry. Its main functions are: formulating policy on the planning and management of the UK radio spectrum, co-ordinating UK views and participating in international negotiations on the use of radio, authorising use of radio by licensing or exemption, enforcement of legislation on the use of radio equipment and investigation of radio interference. Press Contact: Julia Fraser. Tel: 020 7211 0500, email: julia.fraser@ra.gsi.gov.uk