March 1998

Contents

Foreword

Chapter 1 Introduction

Chapter 2 Consumer Protection

Chapter 3 Getting the Policy Framework Right

Chapter 4 Rule Changes

Chapter 5 Rule Enforcement

Chapter 6 Resources Please note that this chapter contains a diagram which can be viewed as a separate file.

Annex A Contact Details

Annex B Senior Oftel STAFF

Annex C Glossary

Foreword

Oftel is committed to open and transparent regulation. A key part of this commitment is the annual publication of Oftel’s work programme in a Management Plan. This is the fourth such document and the last before I leave my post of Director General. It is therefore in the form of a draft work programme, for my successor to review.

This is the first year that there has been public debate on the work programme contents prior to publication. All interested parties were invited to comment on the shape, content and focus of this year’s Management Plan. This process culminated in a well attended public meeting. The public discussion by a regulator of its intended work plan is unique but we have found it to be an extremely valuable process and one I would recommend to others. This draft has benefited significantly from the constructive input of both consumers and companies and thus will ensure that Oftel makes the best use of limited resources.

This draft is likely to change over the coming year reflecting the dynamic environment in which Oftel works, and likely differing emphasis of my successor. Any significant changes will be communicated through our web site and Oftel News. Any further comments you have on this draft would be welcomed and should be sent to Tim Kuypers, Oftel, 50 Ludgate Hill, London EC4M 7JJ or e-mail tkuypers@oftel.gov.uk.

DON CRUICKSHANK

Director General of Telecommunications

Chapter 1

Introduction

What is Oftel for?

Oftel’s goal is to provide the best possible deal for the customer in terms of quality, choice and value for money. Oftel believes that, wherever possible, the best way of securing lasting benefits for consumers is through effective competition. Thus Oftel has five high-level objectives aimed at promoting competition in the telecommunications industry, whilst also protecting consumers (particularly those who are vulnerable or disadvantaged) where competition has yet to develop. These objectives are:

• promoting fair, efficient and sustainable network competition;
• promoting fair, efficient and sustainable services competition;
• securing licence enforcement and fair trading;
• securing a fair distribution of the benefits of competition between different groups of customers;
• protecting consumer interests, especially where effective competition is not yet fully developed.

The context

The environment in which Oftel operates is constantly changing. Technology is advancing rapidly and new services are continually being developed. It is likely that technological change will accelerate with new products and services coming to market at an unprecedented rate. These changes are bringing about both technical and market convergence of the broadcasting, telecoms and IT sectors as it becomes possible to deliver similar services over what were previously distinct networks. The European Commission has recently published a Green Paper on convergence and the UK Government is committed to looking at the regulatory structure of these sectors. Oftel’s direct experience of regulating an increasingly converging marketplace will be relevant to those developing a policy framework for the new digital information age.

The telecoms market is becoming increasingly competitive, a process that is well developed in the UK but only beginning in most of Europe. The UK now has over 200 licensed operators which include 5 national carriers, 4 mobile operators and over 60 companies licensed to operate international facilities. There is also increasing competition in provision of the local loop with cable and radio fixed access providing alternatives to BT. Customers have benefited from this competition with prices falling and quality and choice increasing. Customers are empowered and many now have a real choice if the service they receive is unsatisfactory for any reason.

Oftel’s framework for dealing with competition issues will be strengthened by the welcome reform of UK competition law. The Competition Bill, currently before Parliament, proposes that Oftel will have concurrent powers alongside the Office of Fair Trading to enforce new prohibitions on anti-competitive behaviour in the telecommunications sector. European telecommunications liberalisation is another strong external influence on Oftel. The new Directives give Oftel significant implementation responsibilities. In 1999 the EU will review the overall regulatory framework and an increasing amount of Oftel’s work is likely to be related to European regulations.

This is an exciting time in the telecommunications industry. Technology is advancing at a fast pace, competition is increasing and the regulatory environment is changing. To realise the significant benefits available to customers, it is crucial that Oftel uses its limited resources to best effect.

Overall shape of Oftel’s work programme

In order to achieve Oftel’s main aim of delivering the best deal for customers and to meet the five objectives, four broad categories of work have been identified. These four categories are: Consumer Protection; Getting the Policy Framework Right; Rule Changes; and Rule Enforcement. Much of Oftel’s work does not fit neatly into an annual cycle and thus, although some of the detail has changed since the 1997/98 Management Plan, much of the underlying work is similar. Within each of the four broad work areas individual projects and programmes have been identified and are described in more detail in the following chapters.

Whilst all Oftel’s activities are designed to promote the interests of consumers, Consumer Protection groups together work which relates directly to this objective such as dealing with customer complaints and enquiries. Work under Getting the Policy Framework Right develops the correct policy which Rule Changes then implement through appropriate measures such as licence changes. Rule Enforcement ensures that once the rules have been set they are adhered to by all parties.

The work programme as described does not reflect all the work that could be undertaken. If Oftel had more resources available it could bring forward the implementation of certain projects such as future interconnection issues or pricing issues. In addition Oftel could increase its work in other areas such as measuring the quality of telecoms services more widely or perhaps taking up more invitations from overseas regulators to provide briefing or advice. Chapter 6 outlines the resources available to Oftel and how these will be spent.

Table 1 illustrates all the projects and programmes that are included in the Draft Work Programme. A project involves work which has a defined beginning and end and involves change whilst a programme describes ongoing work. In the following chapters the work is set out in much more detail. For each area of work an overall objective is defined along with a summary of key tasks. Where these tasks have a defined end, a target completion date is given (target dates are in quarters with q1 98/99 referring to April to June 1998 etc).

Chapter 2

Consumer protection

All the work Oftel’s does is ultimately aimed at protecting the consumer by delivering the best deal for customers in terms of quality, choice and value for money. The group of projects and programmes discussed in this chapter deal directly with consumer protection. The work enables consumers to protect their own interests by exercising choice wherever possible and by preventing abuses of market power where effective competition is not yet available. This is achieved by:

• exploring the scope for greater protection of customers through widening their range of choice in the developing telecommunications market (eg Use of Customer Information project); and
• developing and monitoring consumer protection measures (eg Universal access)

The effectiveness of this work can be measured by the choice and satisfaction of consumers with their telecommunications services. The success of Oftel’s work is assessed in the Measuring Oftel's Achievement and External Client Satisfaction (A6).

A.1 Use of Customer Information

Manager: Vivienne Peters

Leader: Andrea Konrath (0171 634 8858)

Objectives: To examine customer protection and competition issues in the use of customer information; enable competition in the directory services market; and protect customers in the use of their directory information.

• Publish statement on new regulatory arrangements for the provision of directory information services and products (q1 98/99)
• Work via the NICC to analyse the need for standardised interfaces in support of creating a competitive directory information market (q2 98/99)
• Input into DTI implementation of the Telecoms Data Protection Directive including provisions to give effective consumer protection in relation to unsolicited fax marketing and telemarketing calls (q2 98/99)
• Oversee industry implementation of arrangements to address confidentiality concerns from calls to counselling helplines (q3 98/99)
• Review the competition aspects of the use of customer information to prevent it being used anti-competitively (q3 98/99)

A.2 Universal Access

Manager: Vivienne Peters

Leaders: Disabilities – Paul Campbell (0171 634 8890)

Payphones, affordable access and funding – Paul West (0171 634 8743)

Schools and other groups – Andrea Konrath (0171 634 8858)

Objective: To ensure the delivery of affordable basic telecoms service to all consumers including those with disabilities; review payphone regulatory policy; and facilitate affordable access to high speed services for schools and other special groups.

Telecoms services for people with disabilities

• Workshop on consultative document (q1 98/99)
• Formal proposal of licence modifications
• Licence modifications effective
• Code of practice implemented

Payphone Regulation

• Analyse responses to consultation document (q1 98/99)
• Publish statement on payphone regulation (q2 98/99)
• Implement licence changes as necessary (q3 98/99)
• Monitor implementation of new public call box policy and agree new criteria for public call box installation by BT

Affordable Access

• Monitor implementation and take up of BT “In -Contact” service
• Monitor implementation of new disconnection policies by BT and other companies
• Consider new “limited outgoing calls” package to supplement or replace Light User Scheme

Universal Service Funding

• Facilitate an industry working group to deliver a report to the DG setting out a blueprint for a universal service fund (q4 98/99)
• Review the level of universal services and the need to set up a universal service fund (q4 98/99)

Schools, colleges and public access points

• Advise Government departments on the telecoms aspects of the national grid for learning
• Encourage industry to offer schools and colleges affordable leased lines (q1 98/99)
• Facilitate industry response to further government initiatives where appropriate

A.3 Consumer Representations

Manager: Vivienne Peters

Leader: Bernie Head (0171 634 8710)

Objective: To ensure effective handling of all customer complaints.

• Summaries of complaints received will be published twice yearly in Oftel News
• Ensure effective handling of approx. 40,000 customer complaints and enquiries each year
• Feed back consumer views into Oftel policy development

A.4 Advisory Committee Support

Manager: Vivienne Peters

Leader: Terry Walker (0171 634 8774)

Objective: To provide administrative support and policy advice to six independent statutory Advisory Committees and to represent their views to Oftel, government, consumer organisations and telecoms companies.

• Consult with relevant organisations to identify and implement actions to improve awareness of telecoms services for the elderly and disabled
• Identify consumer concerns and establish contacts with mobile networks with regard to fixed mobile convergence and UMTS developments
• Complete research project on telecoms services in Wales
• Consult with OLOs on inclusive design for telephone equipment

A.5 General Consumer Protection

Manager: Vivienne Peters

Leader: Paul West (0171 634 8743)

Objective: To provide policy advice and manage various initiatives relating to service quality, price and availability.

• Facilitate industry initiative to develop a methodology for fixed operator residential customer tariff comparisons (q3 98/99)
• Ensure collection and publication of comparable performance indicators for fixed operators
• Ensure collection and publication of comparable performance indicators for mobile operators
• Monitor BT’s permanent offer to the vulnerable to install modern plug & sockets
• Keep BT’s network integrity under review
• Liaise with ICSTIS on premium rate services regulation

A.6 Measuring Oftel's Achievement and External Client Satisfaction

Manager: Vivienne Peters

Leader: Geoff Delamere (0171 634 8745)

Objectives: To facilitate and measure achievement of the best deal for all UK customers; to benchmark services within UK; and to measure external client satisfaction with Oftel.

• Use market research to measure extent to which different UK customer types are benefiting from competition in telecoms market and any barriers to the best deal that need to be addressed (q3 98/99)
• Publish report highlighting if and how telecoms needs of different types of customers were met in 1998/99 and opportunities available to them (q4 98/99)
• Facilitate a >task force’ of key players to address problems of small businesses in getting the best deal from telecoms (q3 98/99)
• Ensure concerns of Oftel’s panel of large business users, driving development of telecoms services, are effectively input into Oftel’s policy development
• Measure satisfaction of Oftel’s clients through a survey (q3 98/99)

A.7 Competition in the Mobile Market

Manager: Ann Taylor

Leader: Vince Affleck (0171 634 8819)

Objective: To input into the MMC inquiry into the cost of calling a mobile phone. In parallel to review the current level of competition in the provision of mobile telecommunication services and what changes to the current regulatory regime, if any, might be required to ensure the best deal for mobile consumers.

• Input into the MMC investigation into calls to mobile (report expected q3 98/99)
• Review of competition in the mobile market. Possible consultation document (depending on interaction with MMC inquiry)
• Review service provider obligations in Cellnet and Vodafone’s licences (q2 98/99)
• Consultation on indirect access from mobiles (q2 98/99)

Chapter 3

Getting the policy framework right

The projects and programmes in this chapter are all aimed at getting the policy framework right in order to ensure:

• the continued rapid development of the UK telecommunications market, through a stable investment climate, and an increasing level of competitiveness of telecommunications markets both in the UK and across the world;
• the rapid development of the information age where the world of telecommunications, IT and broadcasting converge; and
• UK consumers get maximum benefit from the information society.

The success of these objectives will be measured in the choice and availability of new and converged services in the UK in comparison with other countries.

B.1 Access to the Radio Spectrum

Manager: Ann Taylor

Leader: Val Jervis (0171 634 8979)

Objective: Work with DTI and RA to seek to ensure that spectrum allocation policy and spectrum pricing implementation encourage economically efficient use of spectrum and enhance telecoms competition.

• Decide approach to assignment of third generation mobile spectrum
• Review policy towards cordless applications such as DECT (q1 98/99)
• Consider issues surrounding auction of broadband access to spectrum (q3 98/99)
• Review the competitive situation in relation to radio fixed links (q4 98/99)

B.2 Fixed Mobile Integration

Manager: Ann Taylor

Leader: John Bean (0171 634 8821)

Objective: Develop framework for dealing with regulatory issues emerging from the integration of fixed and mobile services.

• Publish overview consultation document. The document will include: access issues for fixed mobile constituent services; use of spectrum; role of service providers (resale and enhanced); Intelligent Networks; and EU dimensions (q2 98/99)
• Publish statement (q4 1998)

B.3 Input to Government Review of Utility Regulation

Manager: Christine Farnish

Leader: Paul Campbell (0171 634 8890)

Objective: Respond in a timely and effective manner to new proposals from the Government concerning future arrangements for utility regulation.

• Respond to Green Paper (q1 98/99)
• Input to proposals as they develop further (q2-3 98/99)
• Plan for implementation (q4 98/99)

B.4 Developing Oftel’s Framework for Dealing with Competition Issues

Manager: Christopher Wright

Leader: Will Lea (0171 634 8983)

Objective: Ensuring Oftel influences and responds effectively to the developing framework for competition casework and competition policy issues.

• Seek to ensure the new Competition Act reflects Oftel’s and industry’s needs (q1 98/99)
• Help develop effective guidelines and statutory procedural rules under the new Competition Act (q3 98/99)
• Prepare for the staged implementation of new Act (q3 98/99 and q4 99/00)

B.5 Regulatory Framework for Convergence

Manager: Christine Farnish

Leader: Michelle Childs (0171 634 8748)

Objective: To contribute to policy thinking on the most appropriate regulatory framework at both European and UK levels for the converging telecoms, broadcasting and IT communications industries.

• Input to response to EU Green Paper (q1 98/99)
• Respond to Government Green Paper (q1 98/99)
• Feed into EU 1999 review of telecoms regulation

B.6 Competition in Broadcasting and Interactive Services Market

Manager: Jim Niblett

Leaders: Digital TV B Andy Miller (0171 634 8820)

Electronic Programme Guides (EPGs) B Michelle Childs (0171 634 8748)

Interactive Services B Helen Terry (0171 634 8866)

Objectives: To develop Oftel’s policy framework for broadcasting, broadband and midband services and control of access to services. To enforce provisions of the Telecommunications Act licences in respect of access control.

• Publish guidelines on recovery of digital TV receiving equipment subsidy (q1 98/99)
• Develop working Group with ITC on electronic programme guide regulation
• Publish analysis of competition in markets for broadband domestic services (q3 98/99)
• Review consistency of broadband and narrowband service providers regulation (q3 98/99)
• Monitor/facilitate negotiations on access control and transcontrol and take enforcement action as appropriate
• Analyse how the Internet fits within existing regulatory structure (q2 98/99)
• Identify whether Internet development necessitates regulatory change and put forward proposals (q3 98/99)
• Assist the competent competition and regulatory authorities with their investigations into competition issues arising in broadcasting and interactive services market

B.7 Influencing EU and International Policy

Manager: Jim Niblett

Leader: Colin Church (0171 634 8867)

Objectives: To apply the experience gained from regulating the UK telecoms market to the developing international and European policy frameworks.

• In co-operation with relevant UK authorities contribute to EU policy making on the regulation of the developing telecoms markets
• Lead Oftel’s input to the EU review of telecoms regulation scheduled for 1999
• Participate actively, with DTI, in negotiations on relevant EU legislation
• Liaise with other regulatory bodies as appropriate

B.8 Key Market Developments & Future Regulatory Issues

Manager: Alan Bell

Leader: Tim Kuypers (0171 634 8918)

Objective: To equip Oftel to better understand, anticipate and respond to market developments in the UK and abroad.

• Understand how developments in the telecommunications market, including technological changes and company strategies affect Oftel’s work
• Assess how far current regulatory instruments meet the needs of the developing market and consider changes required
• Review the scope of Oftel’s regular market information collection (q3 98/99)

B.9 Regulatory Framework for Service Providers

Manager: Ann Taylor

Leader: Philip Sack (0171 634 8928)

Objective: Develop and implement policies aimed at encouraging (in a manner consistent with sustainable network competition) sustainable competition for services delivered over fixed and mobile telecoms networks.

• Publish consultation on Oftel’s approach to the pricing of any new retail services BT may develop for service providers (both independent service providers and network operators) (q1 98/99)
• Identify non-price barriers to fair competition between network operators and independent service providers and appropriate remedies (q2 98/99)
• Consult on regulatory approach to joint billing by BT of basic and other services (q1 98/99)
• Publish statement on joint billing (q2 98/99)
• Publish statement on pricing (q3 98/99)

B.10 Electronic Commerce

Manager: Peter Walker

Leader: Sophie Jackson (0171 634 8894)

Objective: To pursue Oftel’s interests and objectives with respect to the emerging markets in Electronic Commerce and its regulation.

• Analyse and recommend the appropriate role for Oftel in the supervision of the electronic commerce market (q4 98/99)
• Work with DTI on any government proposals that emerge on secure electronic commerce
• Work closely with DTI during the negotiation and subsequent implementation of the Digital Signatures Directive
• Brief others in Oftel and other government departments on wider issues flowing from the electronic commerce market (q2 98/99)

Chapter 4

Rule changes

Oftel believes that the promotion of competition at all levels in the supply chain of telecommunications services will ultimately give the customer the best deal. As competition develops it is necessary to adjust the level and detail of regulation to match it. Where effective competition exists Oftel will pull back from prescriptive rule making.

This chapter outlines the work that Oftel is carrying out to ensure that the regulatory rules reflect the extent of competition and provide the right climate to encourage further investment in the industry.

The success of these programmes and projects will be reflected in the continued entry and investment in UK telecoms market and the delivery of a wide range of innovatively prices and packaged services effectively marketed to, and taken up by, UK consumers.

C.1 Future Interconnection Issues

Manager: Ann Taylor

Leader: John Bean (0171 634 8821)

Objective: To anticipate and develop appropriate responses to future interconnection issues arising from new technology or market developments.

• Understand and respond to the new interconnect opportunities arising from technical advances (eg ATM, IN)
• Consider policy on whether the originating or terminating operator decides the appropriate retail price for a service (q2 98/99)
• Consult with the Interconnect Policy Forum and the Industry Interconnection Advisory Group

C.2 New Arrangements For Numbering Administration

Manager and leader: Alan Pridmore (0171 634 8910)

Objective: To develop, with HMT and DTI, proposals to ensure allocative efficiency in numbering administration, support competition, and enable number allocations to be made on a chargeable basis.

• Consult on proposed changes to current arrangements (q1 98/99)
• Input into legislative changes (q3 98/99 onwards)
• Develop implementation plans (q4 98/99)

C.3 Network Interoperability

Manager: Peter Walker

Leader: Tony Lavender (0171 634 8976)

Objectives: To implement policy on interoperability at network and customer interfaces, stimulate continuous improvement in the Network Interoperability Consultative Committee (NICC), progress policy developments in the use of Calling Line Identity (CLI) and assist the Home Office in the introduction of telephone based public warning systems.

• Publish Statement on interoperability policy (q1 98/99)
• Finalise statement on approach to interconnection of new services (q1 98/99)
• Consultation and subsequent licence changes to implement Art 11(2) of the AVTD (q4 98/99)
• Facilitate and encourage timely delivery of various NICC studies of regulatory importance, eg Carrier Pre-Selection (q3 98/99)
• Develop policy on CLI (q3 98/99)
• Liaise with industry, emergency organisations and the Home Office on telephone based public warning systems.

C.4 Licensing Policy Changes

Manager: Sarah Chambers

Leader: Peter Davies (0171 634 8923)

Objective: To make all licences more comprehensible while bringing them into line with existing and proposed European legislation and where possible removing over prescriptive regulatory conditions.

• Revoke and replace Schedule 1 in each licence
• Develop the industry’s understanding of the exercise through regular OLO group meetings
• Complete final drafts of schedules and begin public consultation (q2 98/99)
• Work with DTI on laying statutory instrument and changes to the licence (q3 98/99)

C.5 Kingston

Manager: Sarah Chambers

Leader: Neil Buckley (0171 634 8880)

Objective: Review Kingston Communications licences and Hull City Council’s licence to encourage the development of competition and be consistent with EU directives.

• Consult on the identification of operators with SMP for the purposes of the AVTD (q1 98/99)
• Publish statement analysing responses to the consultation document published in March and proposed licence modifications (q2 98/99)
• Implement modifications (q4 98/99)

C.6 Technical Regulation

Manager: Peter Walker

Leader: Tony Lavender (0171 634 8976)

Objectives: To inform and influence policy development about changes which might be driven by emerging standards and technology, so that regulatory policy remains effective and relevant as markets develop; promote the simplification of European apparatus approvals and ensure UK implementation; review the Meter Approval Scheme to consider its application to further operators and its scope; implement agreed changes; and ensure the effective assessment and implementation of regulatory rules falling within European “Essential Requirements”.

• Input into common position for EU Radio and Telecoms Terminal Equipment (RTTE) Directive (q1 98/99)
• Lobby on the development of European approvals pursuing Oftel's objectives to promote the interests of consumers, producers and operators and encourage a sustainable competitive market in Customer Premises Equipment (CPE)
• Implement agreed changes to Meter Approval Scheme (q3 98/99)
• Produce summary report on PTO preparations for Millennium date change (q2 98/99)
• Produce service description via NICC for new Government Telephone Preference Service (GTPS) and Reach agreement with Home Office on implementation of GTPS (q3 98/99)
• Analyse need for published criteria for Network Integrity and Security of Network Operations (q3 98/99)
• Provide support to the Telecommunications UK Fraud Forum and other fraud fora
• Liaise with Oftel Technical Experts Advisory Panel

C.7 Access Issues

Manager: Ann Taylor

Leader: Sally Trebble (0171 634 8899)

Objective: Review UK policies on access to local networks in the light of technological and market developments and emerging EU policies.

• Establish the way in which carrier pre-selection will be implemented in the UK in accordance with EU Numbering Directive (q1 98/99)
• Major review of policy on direct access to the copper loop and more broadly, use of broadband infrastructure (q2 98/99)
• Clarify Oftel’s approach to indirect access in the light of the Interconnection Directive and market developments (q3 98/99)

C.8 Network Charge Control Ongoing Work

Manager: Ann Taylor

Leader: John Bean (0171 634 8821)

Objective: To ensure the smooth working of the new interconnect charge controls.

• Monitor BT’s interconnection charge controls including dealing with interconnection disputes
• Review and republication of NCC guidelines in light of experience and developments (q1 98/99)
• Review design of models and data required for setting interconnect charge controls

Chapter 5

Rule enforcement

During the transition to a competitive market, there may be some anti-competitive behaviour by firms whose position in some, or all, aspects of that market makes such activity possible. Oftel is committed to taking quick and effective action against such behaviour to allow competition to flourish in a fair market.

The effectiveness of this work will be demonstrated through the increasingly widespread recognition and use of the guidelines by all parties, leading over time to less anti-competitive behaviour and a reduction in the number of competition cases

D.1 Competition Casework (Domestic and International)

Manager: Andreas Avgousti

Leader: Mohinder Mahi (0171 634 8872)

Objective: To ensure that competition cases are dealt with rapidly and effectively and that emerging policy issues are identified and responded to.

• Ensure a comprehensive and consistent read across between policy developments and casework
• Anticipate and respond to UK/EU merger issues through effective influence on the relevant competent authorities
• Maintain pro-active discussions with consumers, industry and other competition authorities over competition issues and specific casework
• Continue development of office-wide casework management systems to improve complaint handling times and effective outcomes

D.2 Financial information systems

Manager Gavin Greenfield

Leader: Dave Robinson (0171 634 8933)

Objective: To improve the quality and speed of access to financial information vital for the investigation of competition cases.

• Monitor and where appropriate influence BT’s financial management accounting systems and methodologies for cost attribution, current cost accounting valuation, and Long Run Incremental Cost (LRIC) analysis systems
• Ensure BT deliver systems capable of supplying on demand LRIC for retail services (q4 98/99)

D.3 Pricing issues

Manager Will Lea

Leader: Keith Loader (0171 634 8793)

Objective: To ensure Oftel has a coherent and consistent approach to the introduction of new tariffs by BT and other telecoms companies.

• Ensure the application of the non-discrimination rules develops in a coherent way across the telecoms industry
• Monitor BT’s price reductions required under retail price cap
• Develop Oftel’s framework for analysing new tariffs with reference to the relationship between prices and costs and pricing in individual markets (q3 98/99)

D.4 Licensing Programme

Manager: Sarah Chambers

Leader: Peter Davies (0171 634 8923)

Objective: To advise on new licence applications and monitor and enforce licence conditions

not dealt with elsewhere.

• Advise DTI on new licence applications
• Monitor roll out and coverage obligations for cable PTOs and radio fixed access
• Collect annual licence fees

D.5 Numbering and Number Portability

Manager and leader: Ray Thornton (0171 634 8704)

Objective: To ensure the efficient and effective allocation of the numbering resource, in a pro-competitive manner.

• Maintain and develop the numbering databases
• Allocate numbers in a fair and consistent manner in accordance with published numbering conventions
• Publish changes to the national numbering scheme and annual auditing of allocations and number usage
• Influence EU and international numbering policy
• Effective implementation of the announced changes to the national numbering scheme, by overseeing industry arrangements to co-ordinate the consumer education and technical changes needed
• Deliver mobile number portability, by overseeing operators’ plans for implementation (q4 98/99)
• Monitor the implementation of geographic portability and develop policy to meet forthcoming EU requirements
• Develop and implement revised policy on Access Code Conventions (q2 98/99)
• Establish new arrangements for the allocation of numbers direct to Service Providers (q2 98/99)

Chapter 6

Resources

Oftel’s expected budget for 1998/1999 is £11,146,000 comprising £11,122,000 approved by Parliament and £24,000 from sales of publications. The table below shows the increase and later reduction in expenditure approved by Parliament over the period 1997/98–1999/2000.

The pie charts below indicate how this budget is expected to be spent amongst the four major work areas. These shares are difficult to predict as much of Oftel’s work is externally driven, especially in the rule enforcement area. Also shown is how the budget will be spent in term of types of resource (inputs). Oftel expects to have 190 staff for 1998/99 an increase of 13 on the previous year. In addition the use of expert advisors and consultants can provide cost effective expertise on specific issues as and when needed.

Click here to view pie charts

Annex A

Contact details

Oftel

50 Ludgate Hill, London, EC4M 7JJ

tel: 0171 634 8700 (between 0900–1700)

fax: 0171 634 8943

Advisory Committee Secretariat

tel: 0171 634 8773/4

text phone: 0171 634 8769

fax: 0171 634 8745

e-mail: actsec@compuserve.com.uk

web site: http://www.acts.org.uk (from May 98)

Competition & Fair Trading Hotline

tel:0171 634 8833

fax: 0171 634 8949

e-mail: fairtrade.oftel@gtnet.gov.uk

Consumer Complaints and Enquiries

tel: 0345 145000

fax: 0171 634 8745

e-mail: crs.oftel@gtnet.gov.uk

Licencing Issues

tel: 0171 634 8824

fax: 0171 634 8847

Numbering Unit

tel: 0171 634 8874

fax: 0171 634 8784

e-mail: numbers.oftel@gtnet.gov.uk

Press Office

tel: 0171 634 8754

fax: 0171 634 8842

e-mail: press.office.oftel@gtnet.gov.uk

Research and Intelligence Unit

tel: 0171 634 8761

fax: 0171 634 8946

e-mail: infocent.oftel@gtnet.gov.uk

Technical issues

tel: 0171 634 8900

fax: 0171 634 8945

e-mail: technof.oftel@gtnet.gov.uk

Annex B

Oftel’s Senior Staff

The team as at 26 March 1998:

Don Cruickshank, Director General

Christine Farnish, Deputy Director General

Fod Barnes, Policy Adviser

Ann Taylor

Director of Network and Services Competition

Vincent Affleck Interconnection Manager

John Bean Interconnection Development Adviser

Philip Sack Policy Adviser, Service Providers

Val Jervis Radio Spectrum Adviser

Sally Trebble Access & Interconnection Policy Adviser

Vivienne Peters

Consumer Director

Paul Campbell Consumer Policy Adviser

Geoff Delamere Consumer Policy Adviser

Bernice Head Consumer Complaints & Enquiries Manager

Andrea Konrath Consumer Policy Adviser

Alan Pridmore Numbering Policy Adviser

Ray Thornton Numbering Scheme Manager

Terry Walker Advisory Committees Secretariat

Paul West Consumer Policy Adviser

Sarah Chambers

Director of Licensing Policy

Neil Buckley Licensing Policy Adviser

Peter Davies Licensing Policy Adviser

Lucy Miller International Licensing Policy Adviser

Christopher Wright

Director of Competition & Fair Trading

Andreas Avgousti Deputy Director

Nina Barakzai Fair Trading Adviser

Will Lea UK/EU Competition Manager

Keith Loader Policy Adviser

Mohinder Mahi Competition Casework Manager

James Tickel EU/UK Competition Adviser

Don Wilson Fair Trading Manager

Peter Walker

Technical Director

Bob Baty Technical Adviser

John Burns Technical Adviser

Tony Lavender Deputy Director

Frank Phillips Team Leader, Licensing & Approvals

Alan Bell

Economic Director

Peter Culham Economic Adviser

Chris Durnell Economic Adviser

Gavin Greenfield Head of Accounting

Tim Kuypers Market Analyst

Geoffrey Myers Economic Adviser

Jonathan Porter Economic Adviser

Dave Robinson Accountant

Alan Sewell Economic Adviser

Tony Wickes Economic Adviser

Chris Woolford Statistician

David Ingham

Legal Director

Sebastian Farr Legal Adviser

Victoria Keates Legal Adviser

Jane Kron Legal Adviser

Lillian Nnonyelu Legal Adviser

Elizabeth Walsh Legal Adviser

David Smith

Director of Administration

Ros Badger Personnel Manager

Jo Peel Training Manager

Ros Saper Pay & Grading Manager

Nick Gammage

Director of Communications

Kevin Mochrie Deputy Director of Communications

Karen Peart Head of Research & Intelligence

Jim Niblett

Director, Convergence and International Affairs

Michelle Childs Broadcasting & Convergence Policy Adviser

Colin Church EU & International Affairs Adviser

Andrew Miller Policy Adviser, Broadcasting & Convergence

Helen Terry Policy Adviser, Broadcasting & Convergence

Annex C

Glossary

Access Code – short numbers beginning with 1 which enable callers to reach services provided on telecoms networks (eg 192 for directory enquiries) or to select a choice of carrier.

Access Control Services – are required by service providers in order to be able to offer services through conditional access systems operated by third parties.

Accounting Separation – The preparation of separate accounts for different businesses and parts of businesses run by the same company or group of companies, so that the costs and revenues associated with each business and part of a business (and transfers between them) can be separately identified and properly allocated.

ATM – Asynchronous Transfer Mode. The internationally agreed basis for broadband ISDN. A technology that enables all types of information (data, voice and video in any combination) to be transported by a single network infrastructure.

Amending Voice Telephony directive (AVTD) is due to be implemented in June 1998 and concerns the universal provision of voice telephony services. The directive will lead to a number of additional obligations on operators as well as setting out various rights for consumers.

Broadband – A service or connection allowing a considerable amount of information to be conveyed, such as television pictures.

Calling Line Identity (CLI) – A facility that enables identification of the number from which a call is being made.

Common Costs – Costs that are incurred in the supply of all or a group of products or services provided by the company and cannot be directly attributed to any one product or service.

Comparable Performance Indicators – quality of service measures on a like for like basis.

Conditional access (CA) – An arrangement enabling access to a broadcast service or services, being otherwise restricted, which is enabled for customers who have satisfied a pre-condition (eg payment) for receiving such service or services.

Cost Attribution allocation and apportionment of costs to relevant businesses and activities.

Current Cost Accounting (CCA) – An accounting convention, where assets are valued and depreciated according to their current replacement cost whilst maintaining the operating or financial capital of the business entity.

Customer interface – The interface between a public network and customer premises equipment.

Customer premises equipment (CPE) – Sometimes referred to as customer apparatus or consumer equipment, being equipment on consumers’ premises which is not part of the public telecommunications network and which is directly or indirectly attached to it.

DECT – Digital European Cordless Telecommunications – a Europe wide standard for digital mobile telephony covering cordless PBXs, telepoints and home cordless telephony.

DG – Director General of Telecommunications

Digital – The coded representation of a waveform by, for example, binary digits in the form of pulses of light, as opposed to analogue which is the direct representation of a waveform.

DTI – The Department of Trade and Industry.

EPGs – Electronic Programme Guides.

EU – European Union

Fixed/mobile Integration – The merging of fixed and mobile services into an integrated service whereby the customer will be offered both fixed and mobile services and will receive one bill and/or receive and make calls using one terminal.

Fully allocated cost – An accounting approach under which all the costs of the company are distributed between its various products and services. The fully allocated cost of a product or service may therefore include some common costs that are not directly attributable to the service.

Historic Cost Accounting (HCA) – A universally recognised accounting convention. Costs, turnover, assets and liabilities are generally recorded at the value when the transaction was incurred and where assets are valued and depreciated according to their cost at the time of purchase.

HMT – Her Majesty’s Treasury.

ICSTIS – Independent Committee for the Supervision of Standards of Telephone Information Services.

IN – Intelligent Network. A telecommunications network in which the network intelligence is centralised and separated from the switching function.

Incremental costs – The costs that arise as a result of the provision of the “increment”. In contrast to fully allocated costs, the incremental costs include only those costs that are caused by the provision of the increment. So long as revenue exceeds incremental costs, the company increases its value by providing the increment.

Independent Service Provider (ISP) – An entity that sells telecommunication services or services with a telecommunication service component to third parties but is not a network operator or owned by a network operator.

Industry Interconnection Advisory Group – A forward looking industry forum for discussion of interconnect and interoperability issues on which cooperation is required.

Integrated Services Digital Network (ISDN) – A network providing end-to-end digital connection, supporting a wider range of services than available across the PSTN.

Interconnection – The connection of separate telecommunications networks.

Interconnect Policy Forum (IPF) – A forum consisting of industry representatives and chaired by Oftel which meets periodically to discuss commercial and regulatory aspects of interconnection which are of interest to the industry generally.

Interoperability – The ability of different distribution networks and/or apparatus to work together to provide a seamless service for users.

ITC – The Independent Television Commission.

Kingston – Kingston Communications Limited.

Local Loop – connection between the customers premises and the local PSTN exchange.

LRIC – Long run incremental costs. Those costs include only those capital and operating costs caused by providing a defined increment of output, typically a service.

MMC – Monopolies and Mergers Commission.

Mobile portability – Where a customer taking a service from a mobile operator (eg Vodafone, Orange) or Service Provider (eg People’s Phone) can retain their telephone number when they change to a different mobile operator or service provider.

Narrowband – A service or connection allowing only a limited amount of information to be conveyed, such as for telephony. This compares with broadband which allows a considerable amount of information to be conveyed.

Network Charge Control (NCC) – regulation of BT’s interconnection regime.

Network Interoperability Consultative Committee (NICC) – A committee set up to advise the Director General on interoperability issues and for the industry to provide guidance to standards bodies on such issues.

Non-Geographic portability – Where a customer who has had allocated to him a non-geographic number associated with a particular type of service, such as 0800 freephone, an 07 personal number, or an 0891 premium rate number, can retain that number when they change to a different operator or service provider offering a service of the same or similar type.

Number portability – Number portability between operators enables a customer to transfer from one operator to a second operator and retain the same number provided the customer remains at the same address.

OFT – The Office of Fair Trading.

OLO – Other licensed operators.

Public Switched Telephone Network (PSTN) – The telecommunications networks of the major operators, on which calls can be made to all customers of the PSTN.

Public Telecommunications Operator (PTO) – Network operators with powers granted by the Secretary of State for Trade and Industry under the Telecommunications Act 1984 to enable them to install their systems on public and private land, property etc.

RA – The Radiocommunications Agency.

Radio Spectrum – The range of wavelengths used, for example, for broadcasting radio, terrestrial television and satellite television. Usable wavelength ranges from about 100 KHz to about 400 GHz although there are as yet no broadcasts above about 12 GHz.

Service provider – Provider of telecommunication services, or services with a telecommunication service component, to third parties whether over its own network or otherwise.

SMP – The Significant Market Power test is set out in various European Directives, notably the Interconnection directives. It is used by the National Regulatory Authorities (NRA) such as Oftel to identify those operators who must meet additional obligations under the relevant directive. It is not an economic test, rather it requires a consideration of the factors set out in the test within a specified market – much is left to the NRA’s discretion.

Transcontrol – the process of converting digital television services from the format provided by on broadcaster into a format such that it can be re-transmitted by another broadcaster.

UMTS – Universal Mobile Telecommunications System – so called 3^rd generation mobile communications system which will provide enhanced range of multimedia services (eg video, high speed internet access).

Universal Service (US) – A provision in some Telecommunications Act licences requiring the licensee to provide certain services to all specified persons. For example, BT is currently required to provide basic voice telephony and certain other established telecommunications services to anyone who may reasonably request them.

Wideband – An intermediate bandwidth without the fuller capacity of broadband.