Ref: 30/03
Date: 22 May 2003

Proposals to require BT and Kingston Communications to provide Oftel with high quality financial information on the regulated areas of their business have been published today by Oftel.

BT and Kingston Communications will be required to provide Oftel with detailed financial information in markets where they have been found to have significant market power.

Oftel will use the information to ensure the operators comply with their obligations under the new EC regulatory framework that comes into force later this year.

David Edmonds, Director General of Telecommunications, said today:

"Oftel regulatory decisions must be based on accurate and detailed financial information from BT and Kingston Communications.

"Under the new EC Directives on electronic communications, a number of obligations will be placed on BT and Kingston Communications to support competition and protect consumers.

"Oftel will need a range of detailed financial information to decide the appropriate regulatory measures and ensure that the operators comply with the obligations placed upon them.

Oftel has set out the range and type of information that the operators should provide, both on a regular basis and at short notice for the purpose of any investigation.

"Although BT and Kingston will be required to provide more detailed information, it will only relate to markets where they have been found to have significant market power, so overall the amount of information provided will be reduced."

Markets that Oftel proposes to designate BT and Kingston Communications as having significant market power include fixed geographic call termination, retail leased lines and wholesale exchange line services.

The proposals are set out in Financial reporting obligations in SMP markets – a consultation on accounting separation and cost accounting. The deadline for responses is 31 July 2003.

Note to Editors

1. Financial reporting obligations in SMP markets, a consultation on accounting separation and cost accounting is available on Oftel’s website at www.oftel.gov.uk/publications/eu_directives/2003/cost/index.htm.

2. Oftel is carrying out other market reviews as part of its work to implement the new EC Electronic Communications Directives. Oftel assesses the level of competition in the markets and decides on the appropriate level of regulation to promote competition and protect consumers. Oftel has published market reviews on narrowband wholesale services, broadband wholesale services, retail markets, fixed geographic call termination, wholesale international services, unmetered Internet call termination, leased lines, mobile call origination and mobile call termination markets.