CHAPTER 3: THE WIDER CONTEXT

INTRODUCTION

This chapter sets out the work Oftel undertakes that is not focused immediately on any one of its five high level objectives but explores the wider context of what needs to happen in the longer term in the UK, and how in the rest of the world liberalisation may be promoted faster.

Three aspects of Oftel's work are covered in this chapter:

• market developments work - to inform Oftel's understanding of the market, and ensure that its work is rooted in reality.

• future regulatory changes that may be required to adapt to changing technology, customer demand and industry structures.

• international work - the promotion of competition in overseas markets, particularly the rapid liberalisation of infrastructure in the European Union on terms which underpin the competitive achievements made in the UK.

PRIORITY PROJECTS

1. Key market developments and future regulatory issues facing Oftel
- Project manager: Anna Walker
- Project leader: Andy Miller

Project objectives: To equip Oftel to better anticipate and respond to developments in its environment including developments arising from changes in the market, international initiatives and any proposals for regulatory reform.

Fit with Oftel's objectives: This project supports all of Oftel's five objectives and underpins many of its projects.

To continue monitoring of what are likely to be the most significant developments in telecommunications and related markets over the next 4-5 years, and to assess how these developments might affect the work of Oftel. Outcomes to be presented to Oftel senior staff through a series of presentations. Ongoing

To assess the Internet's potential impact on the telecommunications market, and its regulatory implications. To end June 96 and beyond

To work with other regulators to identify common issues across the regulatory bodies. To September 96 and beyond

2. Licensing policy - Project manager: Caroline Varley
Sarah Chambers (wef: 01.09.96)
- Project leader: Peter Davies

Project objectives: This project involves: negotiation and implementation of the Licensing Directive; consequent changes to the UK regulatory regime; and defining with DTI desirable policy changes which could be effected through the Directive.

Fit with Oftel's objectives: This supports Oftel's objectives of promoting network and services competition and protecting consumer interests. It will facilitate market entry by UK operators to other EU Member States. It also fits with Oftel's intention of withdrawing from detailed regulation and relying instead on more general conditions, such as the fair trading condition to deal with the abuse of market power.

Complete the negotiations on the Licensing Directive December 96

Work with DTI on new policy for issuing class licences to April 97

Work with DTI on new policy for individual licences based on scarce resources to April 97

Develop new fees strategy for telecommunications licences

Agree new policy October 96

Implement as part of new legislation June 97

3. Influencing EU thinking - Project manager: Caroline Varley
- Project leader: Andrew Tarrant

Project objective: To ensure that Oftel has a major influence and input in the development of telecommunications policy in Europe, in order to promote market opening in the EU and the interests of UK industry in Europe. To promote in particular the key UK themes of liberalisation, competition, effective enforcement and benefit to the customer.

Fit with Oftel's objectives: This supports Oftel's objectives of promoting fair, efficient and sustainable network competition; promoting fair, efficient and sustainable services competition; securing fair trading; and protecting consumer interests.

Input to negotiations on draft EU 1998 liberalisation legislative package including licensing, interconnect, ONP amendment and data protection in telecommunications directives, also universal service, numbering and standards issues Ongoing

Establish with DTI an industry forum to debate European issues. April 96

Develop policy views on strategic EU issues including convergence, services competition and European level regulation. July 96

Programme of meetings / visits with key Commission officials, MEPs and member states. July 96

4. EU Interconnection Directive - Project manager: Caroline Varley
- Project leader: Neil Feinson

Project objective: To secure the adoption by the EU of an Interconnection Directive which supports and promotes the UK's regulatory framework for interconnection between networks and which also facilitates market entry by UK industry to EU telecommunications markets.

Fit with Oftel's objectives: This project supports the promotion of network and services competition, and also promotes consumer interests.

To secure adoption with DTI of an acceptable Interconnection Directive End July 96

To ensure with DTI that the adopted Directive is translated into UK law as necessary from date that common position is adopted on Directive August 97 on

PROJECTS

5. Development of market information database - Project manager: Alan Bell
- Project leader: Martin Duckworth

Project objective: To collect accurate and timely information from operators and service providers on an agreed range of services, in order to meet the need for market information from within Oftel and from customers and suppliers of telecommunications services. To place as much relevant information in the public domain as appropriate.

Fit with Oftel's objectives: This project provides information which is used throughout Oftel for monitoring how well its five objectives are being met. The information is also published to enable users and those within the industry to make better informed decisions, thus promoting efficient network and services competition.

Publication of second quarter data including estimates of volume and possibly value of interconnect traffic. May 96

Expand coverage of the project to include enhanced services and data services, in the light of any decisions on changes to the regime for independent service providers. May 96

Review of efficiency of quarterly data collection with the aim of reducing lead times. September 96

6. Influencing international thinking - Project manager: Caroline Varley
- Project leader: Andrew Tarrant

Project objectives: To co-operate effectively with a focussed group of other regulatory bodies around the world; to learn from them and acquire international best practice; to present the lessons of the UK experience and to deliver up-to-date information to Oftel staff on international developments.

Fit with Oftel objectives: This supports Oftel's objectives of promoting fair, efficient and sustainable network competition; promoting fair, efficient and sustainable services competition; securing fair trading and protecting consumer interests.

Comparative study of regulatory regimes. End April 96

To plan and manage joint Oftel/FCC/Financial Times World Seminar on Regulation (Eastern Europe) October 96

Establish and consolidate relations with key foreign regulators, including the FCC. Ongoing

SERVICES AND FUNCTIONS

International work

Oftel undertakes the following international work, in addition to that already described above:-

Active participation in the international telecommunications policy community through representation at a range of international meetings, conferences and other fora eg EU Council Working Groups, ONP Committee, ECTRA, ACTS.

Liaison with other branches of Government on international matters, primarily DTI.

Overseas visits by senior Oftel officials.

Receiving overseas visitors from developed and developing countries. Programmes are arranged for nearly 100 overseas visitors a year.

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