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| Oftel'S Management Plan for 1996/97 and Beyond (May 1996) | |
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CHAPTER 5: PROMOTING SERVICES COMPETITION INTRODUCTION This chapter sets out the projects Oftel is undertaking to promote fair, efficient and sustainable services competition. Oftel is concerned to promote competition in services over the network which may be provided by network operators or independent service providers with no network of their own. In 1996/97 Oftel will develop and implement new regulatory policies aimed at promoting the emergence and growth of services delivered over telecommunications networks, especially enhanced services, in a way that does not jeopardise the development of competing networks. The increasing digitalisation and convergence of broadcasting, telecommunications and IT and the development of new services being delivered over telecommunications networks means that Oftel will need to consider whether and to what extent its regulatory regime needs adapting to reflect these new developments. PRIORITY PROJECTS
Project objective: To develop and implement regulatory policies aimed at encouraging the growth of a sustainable competitive market in services delivered over telecommunications networks, especially enhanced services. Fit with Oftel's objectives: This project will promote fair, efficient and sustainable services competition, in a way that does not jeopardise investment in the development of competing networks. Publish draft licence modifications implementing new pricing arrangements, SB/SSB split and accounting separation requirements June 96 Statutory consultation to end June 96 Second stage of final consultation early July 96 Modify BT's licence, if BT agrees early August 96 Put forward proposals for dealing with technical and other issues (eg numbering) relevant to independent service providers to October 96 Provide input to relevant EU negotiations including Interconnection and Licensing directives Ongoing
Project objective: To equip Oftel to resolve issues arising from the convergence of telephony, broadcasting and IT and specific issues arising for Oftel from developments in broadcasting markets. Fit with Oftel's objectives: This project supports the objectives of promoting network and services competition aimed at maximising benefits to consumers. Review of NTL licence. Negotiation of licence amendments in the light of the price control review. To end May 96 Work with DTI on the implementation of the requirements of the EC Directive on Advanced Television Standards relating to the regulation of conditional access for digital TV services. To June 96 and beyond Oftel input to the OFT review of the pay TV market To September 96 Consider policy issues in relation to set top boxes and related standards To September 96 Preparation for the sale of the BBC transmission network including review of BBC Telecommunications Act licence, consideration of price control arrangements. Work with OFT to identify competition implications of the sale of the BBC transmission network. Ensure those implications are adequately addressed in the purchaser's licence. To April 97 and beyond Other work flowing from the Broadcasting Bill including licensing of multiplex operators and operators' conditional access/subscriber management systems. To April 97 and beyond Consider whether to advise the Government that the removal of the present restrictions on BT, other national PTOs and Kingston Communications from conveying entertainment services in their own right would be likely to promote more effective competition in telecommunications, in line with the commitment contained in the 1991 White Paper. 1997 PROJECTS
Project objective: To develop policy on a longer term regulatory framework aimed at encouraging innovative infrastructure investment (including the introduction of broadband systems) and services. Fit with Oftel objectives: This project supports the promotion of network and services competition linked to Oftel's overall goal of achieving the best possible deal for the customer. Prepare and publish a public statement on regulatory action following the "Beyond the Telephone" document September 96 Consideration of consumer issues arising from the development and introduction of innovative services. September 96 Monitoring of progress of industry's "video on demand" trials. Ongoing Provide input to Governmental groups on multi media developments. Ongoing Remain aware of, and participate as necessary, in discussions towards the development of a global information infrastructure. Ongoing Monitor, and as appropriate, seek to influence developments within Europe, especially DGs IV (Competition), X (Audiovisual Policy), XIII (Telecommunication Policy) and XV (Internal Market), that have an impact on the development of broadband networks and services in the UK. Ongoing
Project objective: To put in place appropriate controls on the PTO/customer interface following the 1995 Consultative Document. Fit with Oftel's objectives: To promote fair competition and trading in the manufacture and supply of customer premises equipment and to promote fair competition in networks and services over networks. Informal consultation on licence modifications June 96 Statutory consultation August 96
Project objectives: To ensure that, as a converged services market emerges, it is as fully open and competitive as possible and operates within an appropriate regulatory structure. Fit with Oftel's objectives: The project is designed to contribute to developing network and service competition, and increasing customer choice, and ensuring fair trading. Identify what principal market demands are likely to drive the development of converged services. June 96 Assess the competition implications of possible forms of integration among major networks. September 96 Review the results from relevant work packages in other projects to see what, if any, policy modulations are needed. Ongoing
Project objective: To ensure that the retail market for mobile telephony services is as fully open and competitive as possible, given that radio spectrum constraints set limits to the number of network operators. Fit with Oftel's objectives: This project fits Oftel's objectives of promoting fair, efficient and sustainable network and services competition and securing fair trading. Ensure submission of financial returns by tied service providers on continuing quarterly basis, analyse and assess these returns and take enforcement action as appropriate. Ongoing Issue a Consultative Document reviewing the effects of the above arrangements in the mobile market, assess the responses and make a decision on possible modifications to the regime Publication May 96 Consultation to end August 96 Assessment of responses and decision on modifications to the criteria and the monitoring regime end September 96 Ensure appropriate Oftel input to EU decision-making process regarding mobile service provision. Ongoing
Project objective: To transfer responsibility for live PRS regulation to ICSTIS. Fit with Oftel's objectives: Regulation of live PRS became an important customer protection issue in the late 1980s, when Oftel became formally involved. The increasing effectiveness of self regulation by the industry, however, means that Oftel can now withdraw from day to day regulatory involvement. Agree preferred option by May 96 Statement on the way forward/formal licence modifications June/July 96 Transfer complete by end August 96
Project objectives: To examine ways of introducing greater competition in the market for directory products and services, in particular through the removal of existing barriers to entry and the encouragement of new entrants. To protect the interests of consumers in respect of the use of their directory information, and the price and quality of directory services. Fit with Oftel's objectives: A more open and competitive market will promote fair, efficient and sustainable network and services competition. This needs to be balanced against ensuring that the quality of service is maintained - in particular by retaining public confidence in directories by ensuing that information is not misused and that records are accurate. Begin series of workshops/seminars with industry, service providers and customer groups to take forward issues relating to structure, regulation, specific issues governing liberalised DQ, and any unfair advantages possessed by existing DQ businesses. Take into account the conclusions of the MMC investigation into classified directory advertising. May 96 Issue a statement setting out the conclusions from the workshops, identifying a regulatory structure, and setting out any formal measures such as licence modifications necessary to implement it. July 96 Commence discussions with DTI on need for any new licences July 96 If necessary, establish a liaison group with industry to work through commercial and regulatory issues. July 96 If necessary, ask NICC to examine technical issues and specify interfaces July 96 Formal consultation on any required licence modifications October 96 NICC to complete examination of technical issues. Consider need for further regulatory action such as specification of Essential Interfaces October 96 Go to Chapter 6 | Return to this Document's Table of Contents
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