CHAPTER 2 : Oftel'S GOAL AND OBJECTIVES

The Director General and his Office, Oftel, operate under statute - the Telecommunications Act 1984, section 3 setting out their main duties which are shared with the Secretary of State. Sections 3(1) and (2) specify two primary duties and eight other ones. The section offers no guidance to the relative weight to be attached to each of the latter duties.

In the light of these duties, Oftel's primary focus is on customers. That focus translates into Oftel's goal:

"To provide the best possible deal for the customer in terms of quality, choice and value for money".

Oftel believes that a fully competitive market will deliver all elements of this goal - competition drives prices down, spurs innovation and automatically provides choice.

Five high-level objectives

Oftel delivers this goal through five highlevel objectives aimed at promoting effective competition in the telecommunications industry and, in parallel, protecting consumers where effective 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.

Oftel believes that its goal pursued through these five high-level objectives delivers its statutory duties in the most effective way.

Oftel's approach to achieving its goal

The UK telecommunications market is successful and fast growing. It behoves the regulator not to act as a brake on that market, particularly with the radical changes expected in the industry as a result of the increasing globalization of telecommunications and the convergence of the telecommunications, information technology and entertainment markets into a broader communications market. Oftel will therefore be seeking to improve its information base and level of expertise so as to improve its clarity of vision on future developments in the market; thus enabling it to respond to regulatory needs more effectively.

Oftel believes it is very important that its programme of work should be addressed with as much cooperation as possible from the industry. Oftel will seek to encourage cooperation by consulting all key stakeholders on new policy proposals and ensuring transparency in regulatory decisions through public hearings, workshops and the publication of consultative documents, statements and information explaining regulatory decisions for competing operators and consumers.

Oftel's work programme for 1996/7 and beyond

Chapters 3 to 10 summarise the work programme Oftel is undertaking in 1996/97 and beyond to deliver its goal. The following structure has been adopted for the presentation of Oftel's work programme in this Plan:

• Chapter 3 sets out Oftel's work on improving its understanding of the wider market context; identifying future changes that need to be made to the regulatory regime, and its involvement in the international arena;

• Chapters 4 to 8 set out Oftel's work to deliver its five high-level objectives. Although it is recognised that much of Oftel's work contributes to several objectives, for the purpose of this Plan work has been allocated on the basis of a prime objective.

• Chapter 9 describes Oftel's internal work and administrative structure which supports Oftel's work programme.

• Chapter 10 describes Oftel's work in measuring its performance.

• Chapter 11 summarises the resources available to Oftel to deliver its work programme.

Oftel has adopted a project based approach to much of its work. Most of its initiatives and policies feature as discrete but interrelated projects in its work programme. Each project has a manager and a project leader who are named in this Plan.

Oftel also carries out a variety of services and functions for consumers and the industry - for example, dealing with consumer complaints and enquiries, supporting the statutory advisory committees and standards work - which are described in Chapters 3, 4, 6 and 8.

Within each chapter, Oftel's work is divided into three categories:

• Priority projects - which are defined as those projects which make the greatest contribution to Oftel's objectives and those which have to be completed to a specific timescale.

• Projects - that are important for the achievement of Oftel's objectives.

• Services and functions - Oftel's work which is not project based. Substantial resources are, and will continue to be, devoted to these to ensure they are delivered to time and to the highest quality.

The table which follows shows how Oftel's work programme is organised in this Plan.

The wider Network Services Licence Distribution Consumer Internal Performance
context - competition - competition - enforcement & fair of protection projects and measures
Chapter 3 Chapter 4 Chapter 5 trading - benefits - - Chapter 8 services - Chapter 10
Chapter 6 Chapter 7 Chapter 9
Priority Key market Liberalisation Regulatory change Ensuring fair Universal Price Best deal for
developments of international for service trading service control the customer:
projects & future telecommunications providers review measuring
regulatory Competition achievement
issues Convergence & centred issues Promoting
facing Oftel Use of the radio broadcasting better
spectrum issues customer
Licensing information
policy Numbering on service
policy quality &
Influencing price
EU thinking Number
portability
EU
Interconnection Policy on
Directive interoperability
for network
operators

Projects Development Interconnection Regulation of Licence Geographic Removal of Personnel Measuring the
of market determinations broadband enforcement & fair de-averaging RPI + 2% policy satisfaction of
information switched networks trading implementation Oftel's
database Network and services Training external
Interoperability Residual barriers Education clients
Influencing Consultative Customer to competition superhighway Consumer Information
international Committee (NICC) interface services representation systems
thinking regulation Compliance project strategy
Development of
accounting Fixed/mobile Deregulation of Developing
separation convergence private networks industry
framework responsibility
Future of mobile
Alternatives to service providers
pence per minute Review of
charging Regulation of PRS standards work
in Oftel
Revision of Directory
Mercury's enquiries Core briefing
Licence statistics for
staff
Kingston


Services International Interconnection Enforcement Consumer Press office
& work Policy Forum casework complaints
functions & enquiries Library
Advice on
granting Advisory Legal services
licences Committees
Administrative
Cable & Price services
satellite control
licence issues compliance

Regulation of PTO meter
private networks approval
and
telecommunications
standards

Numbering
administration

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