Requirements of the Revised Voice Telephony Directive
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This Statement follows the DTI consultation paper published in April 1998 on the implementation of Directive 98/10/EC on the Application of Open Network Provision to Voice Telephony and on Universal Service for Telecommunications in a Competitive Environment (known as the Revised Voice Telephony Directive or RVTD).
The RVTD aims to ensure the availability of good quality fixed public telephone services and to define the set of services to which all users should have access at an affordable price. It also requires Member States to publish the rules and criteria for ensuring affordability.
The DTI paper set out a number of principles underlying the UK’s approach to affordability and, with one amendment, these are adopted in this Statement.
Requirements of the Revised Voice Telephony Directive
1.1 Article 3(1) of the RVTD addresses the issue of availability of a defined set of telecommunications services. Member States must ensure that all reasonable requests for connection to the fixed public network at a fixed location and access to fixed public telephone services are met and that telephone directories, directory enquiry services, public pay telephones and specific measures for disabled users and users with specific needs are provided.
1.2 Article 3(1) states:
“Member States shall ensure that the services set out in this Chapter [Chapter II] are made available to all users in their territory, independent of geographical location, and, in light of specific national conditions, at an affordable price.”
1.3 Article 3(1) also requires Member States to publish the rules and criteria for ensuring affordability at the national level and this Statement therefore sets out the principles underlying the UK’s approach to affordability.
2.1 The DTI consultation paper identified five principles which Oftel has considered further, receiving comments from one operator.
2.2 Oftel considers the principles of affordability in the UK to be:
(a) that competition is generally the best means to ensure efficiency and low prices;
(b) that prices of telecommunication services should reflect underlying costs;
(c) that where competition is not yet effective so that the level of costs do not reflect those of an efficient operator, licence conditions setting price controls encourage greater efficiency and reduce prices for customers;
(d) that where the general level of prices achieved through the effect of competition in the market, or through intervention by the regulator, nevertheless results in particular groups of consumers who are unable to afford basic telecommunications services, or could result in unfair price disparities between different parts of the country, specific action is taken; and,
(e) that technological and other developments may mean that this approach to affordability will need to be adjusted over time to reflect new and changing conditions.
3.1 These principles represent the hierarchy of criteria against which affordability should be gauged and the need for flexibility will be noted.
3.2 As this is a statement of principle, examples have not been given. For this reason we have not included in this Statement the reference in the DTI's consultation paper to geographic averaging as an example of the ‘specific action’ mentioned in the principle set out at 2.2(d) above. This refinement does not mean that Oftel’s policy towards geographic averaging has changed. Indeed, we recognise that Article 3(1) of the RVTD indicates this practice to be an acceptable means of maintaining affordability in rural or high cost areas.
3.3 It will be noted that the substance of the principles identified in the DTI consultation paper has not changed. However, we intend to undertake a full review in 1999 of the universal service requirements at which time the principles of affordability will be re-examined.
Geographic averaging – The practice by which BT charges customers the same price for a given service wherever they are in the country.
Operator – A body licensed to, and planning to, provide a network service.
Revised Voice Telephony Directive (RVTD) – the European Parliament and Council Directive of 26 February 1998 on the Application of Open Network Provision (ONP) to Voice Telephony and on Universal Service for Telecommunications in a competitive Environment (98/10/EC) implemented by the Telecommunications (Open Network Provision) (Voice Telephony) regulations, 1998 (1998, No. 1580). This Directive concerns the universal provision of voice telephony services. The Directive leads to a number of additional obligations on operators as well as setting out various rights for consumers.
Universal service – The basic level of telecommunications services which should be available to all customers.
