PRICING OF TELECOMMUNICATIONS SERVICES FROM 1997

Oftel's Proposals for Price Control and Fair Trading


Contents

Preface

Consultation

Chapter 1: Introduction

Scope of this document. Previous Consultation. Consultation Process. Other Relevant Regulatory Developments. Oftel's Advisers

Chapter 2: Overview

The Market. Fair Trading. Price Control. De-regulatory Aspects of Price Control Proposals

Chapter 3: Fair Trading

Introduction. Deficiencies of Current Framework. The Way Forward. The Proposed Condition. BT's Views. An Appeal Mechanism. Constraints on Oftel's Discretion. Judicial Review. Conclusion

Chapter 4: Network Charge Controls

Introduction. Similarities to and Differences from the Current Regime. Competitive Services (no network controls). Prospectively Competitive Services (safeguard caps). Call Termination Services. Interconnection Services in the General Network Basket. The Treatment of Other Interconnection Services. The Starting Levels of the Network Baskets. Flexibility of BT's Charge Setting. Call Termination on Other Networks. Interaction of Network and Retail Caps. Licence Modifications

Chapter 5: Retail Price Control

Summary. Form of Control. Detailed Proposals - The Residential Cap; Small Business Safeguard; Distribution of Price Control Benefits; Discounts; Reference Prices and Price Control; Price Cap Timing Restraint - . Services Covered by Price Control

Chapter 6: Financial Modelling and the Calculation of X

Responses to the Second Consultative Document. Assumptions adopted in the Setting of the Price Controls. Market Growth. Market Share. Efficiency. Cost and Asset Volume Relationships. Cost of Capital. Asset Valuation and the Asset Base. Capital Expenditure. The Setting of X for the Residential Basket


Annexes

Annex A: Record of Public Hearings on Price Control

Annex B: Oftel's Advisers

The Consumer Panel. Experts on Economics, Finance, and Fair Trading

Annex C: Licence Modifications for Fair Trading: Draft for Statutory Consultation

Annex D: Licence Modifications to Implement the Proposed Network Charge Control: Draft for Second Informal Consultation

Annex E: Licence Modifications to Implement the Proposed Retail Price Control: Draft for Statutory Consultation

Annex F: Guidelines on the Operation of the Fair Trading Condition

Introduction. Legal Status of the Guidelines. Precedents and Jurisprudence. Enforcement of the Condition. Relationship with other Licence Conditions. Scope of the Condition. Application to Specific Issues. Unreasonable Delay in fulfilling Licence Obligations. Information Requirements.

Annex G: Consultation Draft: Guidelines to New Arrangements for Setting and Monitoring Interconnection Standard Service Charges

Background. Fair Trading. What Changes? Appendix 1: Floors and Ceilings. Appendix 2: Standard Interconnection Services

Annex H: The Discount Yield and Reference Tariffs

Background. The Discount Yield. Introduction of Reference Tariffs. Post 1997 and the New Price control Period

Annex I: Glossary of Terms



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