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| Oftel'S Management Plan for 1996/97 and Beyond (May 1996) | |
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CHAPTER 6: SECURING LICENCE ENFORCEMENT AND FAIR TRADING INTRODUCTION This chapter sets out work Oftel will undertake to secure licence enforcement and fair trading. Competition can only flourish if the market is fair. Oftel's fair trading activity has grown significantly over the last three years as a result of the growing number of new operators; BT becoming more competitive and innovative; and technological and administrative developments which enable operators to provide more discriminating services. Oftel will strengthen its ability to police fair trading in the market more effectively through:
PRIORITY PROJECTS
Project objective: To pursue the implementation of the proposed fair trading condition and to publish associated guidelines, to begin to simplify licences by deleting unnecessary conditions. Fit with Oftel's objectives: This project is directly related to three of Oftel's high level objectives. It is designed to directly secure more efficient and timely action against behaviour that would threaten fair, efficient and sustainable network and services competition. It is also designed to make licence enforcement more effective, in so far as the proposed condition should deter licensees from unfair trading. Thus it should lead to more self regulation and less need for intrusive regulation. The proposals will also improve Oftel's internal decision making to ensure due process for all concerned. Oftel also believes that its proposals will enable it to deregulate in markets which are competitive. Statement and/or further proposals in response to the informal consultation. April 96 Statutory consultation on final text of proposed condition and proposed deletions/simplification of BT's Licence, to begin. Publication of first edition of Guidelines June 96 Second stage period for review commences July 96 Consultation ends, modifications to BT's licence agreed or MMC reference July/August 96 Introduction into other major licences. Timetable dependent on timing of insertion into BT's Licence rolling programme over 18 months
Project objective: To create a structured pro-active programme for identifying and investigating parts of the telecommunications market or aspects of behaviour likely to have a significant adverse effect on competition. Fit with Oftel's objectives: This project will assist in achieving the promotion of fair, efficient and sustainable network and services competition and securing effective licence enforcement and fair trading. 1. Trials Following analysis of responses to Trials Consultation Document issue draft licence modifications for formal consultation July 96 Finalise trial guidelines July 96 Put new condition into BT's licence (or MMC reference) September 96 2. Duct and pole sharing Produce summary of responses to consultation document June 96 Recommend way forward July 96 3. Merger policy Establish principles for assessment of proposed mergers and joint ventures May 96 4. Effective licence enforcement Review the cost structure and pricing of ISDN2 service May 96 Implement criteria for assessing BT special offers, particularly those involving third parties May 96 Recommend criteria for analysis of business cases for new PTO services June 96 Recommend rules for dealing with customer information within a PTO's organisation. July 96 Examine cases where connection and interconnection related problems arose and identify areas that need to be addressed. August 96 4. Next phase of the programme Identify new areas for investigation. Prepare and plan timetable for investigations. Ongoing PROJECTS
Project objective: To improve procedures for investigating complaints, being more transparent in the way Oftel explains its enforcement activity, and being more proactive. Fit with Oftel's objectives: This project will help to give the industry confidence in Oftel's ability to perform effectively as a competition authority and its ability to enforce the proposed fair trading condition in a transparent way. Transparency of enforcement casework Publish Quarterly Enforcement Bulletin - first publication May 96 Publish guide describing procedures for Oftel's investigation of complaints, and reaching conclusions, as well as explaining what Oftel expects from complainants. May 96 Case Record Sheets - review the complaint information reports and case closure sheets currently in use and propose a suitable format for implementation by the casework team. May 96 Improved procedures Case codification and definitions - develop system for complaint classification and include in the internal casework procedures guide. Complete proposals by April 96 Casework performance targets - identify internal performance targets and include in internal procedures guide May 96 Internal procedures guide - develop an internal procedures guide for handling enforcement casework. July 96 Management information system - ensure that a suitable system is implemented to track performance against target times December 96 EU Establish links and keep up-to-date with the enforcement work of the EU May 96 onwards
Project objective: To examine the remaining perceived barriers to network competition in the UK with a view to: distinguishing barriers which can be removed through regulatory action and taking appropriate action to do so; identifying those barriers which cannot be addressed within the existing regulatory framework. The project will look in particular at barriers to provision of indirectly-connected services. Fit with Oftel's objectives: The project supports Oftel's objective of promoting fair, efficient and sustainable network competition and the promotion of fair trading in telecommunications. Circulate a paper to industry on implications of joint billing/marketing etc May 96 Issue statement setting out Oftel's policy on indirect access issues, highlighting further action May 96 Circulate a paper to industry on data amendment charges and linked 'shared benefit' issues June 96 Publish a progress report setting out action to date and any proposals for future action December 96
Project objective: To identify how far the internal compliance arrangements of BT and other PTOs possessing market power can be relied upon to meet Oftel's fair trading objectives. Fit with Oftel's objectives: This project will contribute towards promoting fair, efficient and sustainable competition in networks and services. It will also assist in the development of Oftel as a fair trading and competition authority and may support its withdrawal from detailed and intrusive regulation. Identify operators requiring assessment and key aspects of a compliance programme. May 96 Review main elements of the relevant PTOs' existing compliance programmes against the chosen criteria. October 96 Identify possible areas for development/improvement of existing compliance programmes and discuss with operators. Ongoing
Project objective : To remove unnecessary obligations relating to the approval, maintenance and installation of Private Networks and ensure that private payphones and hotel phones display adequate charging information to customers. Fit with Oftel's objectives: This project supports Oftel's objectives of securing fair trading and protecting consumer interests. Carry out a review of the Designated Maintainer regime April 96 Devolve public enquiries where appropriate to industry telecommunications bodies and obtain their collaboration in the production of an Information Sheet indicating non-Oftel sources of information August 96 Devolve the maintenance of Quality Assurance Guides, Wiring Code and Private Network Code of Practice (NCOP) to independent public fora as appropriate October 96 Discuss with DTI introduction of legislation requiring display of adequate charging information for private payphones and hotel phones June 96 SERVICES AND FUNCTIONS Enforcement casework Oftel has a responsibility to monitor and investigate complaints about anti-competitive practices, abuse of monopoly power or licence breaches by fixed link and mobile telephony operators. Enforcement casework has not only intensified - with several important investigations coming to conclusion - but also increased considerably in volume and variety over the last 18 months with the number of licensed operators and developing competition. Based on the current work-flow trends, there are 35-45 live cases at any one time: 4 or 5 very big cases, 10-15 complex cases and 20-25 more straightforward cases. A dedicated team has been established with increased commitment to expeditious complaint handling, systematic investigation and effective compliance action. Go to Chapter 7 | Return to this Document's Table of Contents |
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