Foreword

Summary

Chapter 1 - Summary of responses

Chapter 2 - Oftel’s comments on the responses and developments since the publication of the Directory Information Statement

Chapter 3 - What happens next

Annex A - Modification to BT’s Licence dated 1 January 1999

Annex B - List of respondents to Directory Information Statement

Glossary

Oftel has a free e-mail based mailing list to help people stay informed about the work that Oftel is doing. Each time an Oftel document is published and placed on Oftel's web site subscribers to the list receive an e-mail informing them about the document. If you would like to join please click here.

Copies of the full Responses Statement are available on disk.

The Summary is available in large print, braille, and tape formats.

Please contact the Oftel Research and Intelligence Unit on 0171 634 8761, or by e-mail, or call textphone 0171 634 8769 for more information.

On 25 September 1998 Oftel published the Directory Information Statement. This document is available on the Oftel web site at http://www.oftel.gov.uk or from the Oftel Research and Intelligence Unit (contact details at the front of this document). The Directory Information Statement invited:

• initial comments, by 6 November 1998; and
• comments on any submissions received during the initial consultation period, by 20 November 1998.

Oftel invited responses on:

1. Oftel’s conclusions
2. Modification to BT’s Licence

Oftel proposed a modification to BT’s Licence to enable persons without PTO licences to have:

• access to the contents of the directory information database used by BT to publish directories; and
• on-line access to the database used by BT to provide a directory information service.

Access would be given for the purposes of providing directories or a directory information service. BT would be entitled to refuse access if the person requesting this information would not give an undertaking to comply with data protection legislation and any relevant codes of practice issued by the Data Protection Registrar.

BT’s proposal to include BT’s retail blind and disabled service in the category (c) list of Network Services, as defined in Condition 18.3 of BT’s Licence.

Summary

1. Oftel’s conclusions

• Addressing the privacy concerns of individual subscribers about the way their directory information is used.

• Ensuring customers have access to more comprehensive directory information services and directories.

• Enabling competition to develop in the supply of directory information services and directories in a way that maximises the benefit to customers and subscribers.

    2.    Modification to BT’s Licence

BT’s Licence has been modified as set out in Annex A of this Statement. This licence modification took effect on 1 January 1999. The modification contains some minor amendments from that set out in Annex B of the Directory Information Statement.

    3.    Category (c) Network Services

Oftel received 22 responses during the initial consultation period, from industry, consumer groups and individuals. These respondents are listed at Annex C. There were no responses during the second "comments on comments" consultation period.

Data protection and privacy

• Respondents indicated general support for initiatives to protect the privacy of consumers and how their directory information is used. However, there was concern that these measures, such as the Code of Practice on the Use of Directory Information, will not offer sufficient protection.

• There is a need for adequate publicity informing consumers of what these initiatives offer.

• There was support for the passing of ex-directory names and addresses to organisations offering a directory enquiry service, to allow callers to be told why a number was unavailable.

• There is a need to limit an individual’s range of choices as to a partial address in a directory, under the TDPD Regulations.

• Respondents sought clarification as to who would be running the scheme allowing certain consumers to "opt out" of receiving telemarketing telephone calls and faxes, as required under the TDPD Direct Marketing Regulations.

• A respondent sought clarification as to what might constitute reverse searching – the use of a number to identify an individual.

People with disabilities

• Respondents emphasised that the interests of people with disabilities must be protected.

• The fact that directory enquiry services are free to people with visual impairments should not lead to the quality of that service being degraded.

• International directory enquiries should be free to those with visual impairments.

Collection of data to be inputted into OSIS

• Some respondents expressed concern about the current charging structure and mechanism for the input of directory information into OSIS.

• It was suggested that the costs of running OSIS might rise in the future as entry data becomes more complex. For example, through group entries where individual subscribers may have more than one telephone number against their name.

• Some operators wanted to know whether all numbers have to be provided to OSIS.

Management of OSIS

• Given the dominance of OSIS in this market, respondents considered that there is a need to ensure efficiency and low costs in the management of OSIS, through means other than market forces.

• There was support for accounting transparency or independence of OSIS from BT.

• There were diverging views on the viability of competition in the core database market.

Terms and conditions on which downloads of OSIS are made available

• Concern was expressed that the terms and conditions on which downloads of OSIS are made available should provide for data protection and privacy.

• There were various suggestions relating to the pricing models that might be used by BT.

• Criticisms were made of BT’s proposal to charge a sub-licensing fee for any OSIS material passed on in an unchanged form by the original recipients to third parties.

Requirement on all PTOs to make directory information available

• A number of respondents considered that the modification made to BT’s Licence should be made to the licences of all PTOs. These respondents want all PTOs to have an obligation to make directory information available to any organisation requesting it for the purposes of providing directories or a directory information service. Current PTO licences only require PTOs to make this information available to other PTOs.

Costs of access to DAS/Pathfinder

• Some respondents considered that the current safeguard cap on BT for the carriage of calls for directory enquiries should be removed to allow competition to develop in this market.

Cost of directory enquiry calls

• There was a general view that the cost of calls to directory enquiries is too high.

• Clarification was sought as to whether or not the requirement in the RVTD Regulations that directory enquiry calls be "affordable" also applies to directory enquiry services offered through premium rate service numbers.

• Some respondents wanted to know what was intended by requiring BT to pay the same for conveyance of directory enquiry calls as anyone else.

• It was asserted that Oftel should not allow BT to cross subsidise international directory enquiries as this prevents the development of competition.

• Concern was expressed about the costing of access to overseas directory information databases.

Access code review for directory enquiries

• There was support for a change to access codes for directory enquiries.

• Respondents emphasised that more codes need to be made available to allow competitors to operate and that it will be important to publicise the proposed changes.

• A number of respondents considered that any new codes should only be made available to those organisations offering an independent directory information service.

• Some respondents considered that longer codes will cause difficulties for people with disabilities and others.

Emergency service access to directory information

• There was general support for the view that emergency services need access to CLI and the address details of any caller.

Telephone books

• There were mixed responses as to whether or not BT and Kingston should unbundle phone book charges from line rental. Respondents were concerned that although this could allow competition to develop it might lead to a price rise for consumers.

Free directory enquiry calls from public payphones

• Some respondents consider that the provision of free directory enquiry calls from public payphones undermines the development of competition.

No respondents objected to the modification. There were very few comments on the proposed amendment to BT’s licence save for a couple of drafting suggestions.

There were only a limited number of comments on this issue. Those respondents who did comment supported the inclusion of BT’s retail blind and disabled service in the list of category (c) Network Services, as defined in Condition 18.3 of BT’s Licence.

Data protection and privacy

• Oftel believes that the measures set out in the Directory Information Statement adequately address data protection and privacy issues.

• Oftel has published a consumer guide outlining relevant data protection and privacy measures. This guide is widely available. These new rights will be further publicised during 1999.

• Oftel indicated in the Directory Information Statement that the passing of the names and addresses of ex-directory subscribers to organisations providing a directory enquiry service was acceptable. This is to enable a caller to be told why a number is unavailable. This was supported by consumers. For the avoidance of doubt, Oftel defines narrowly the directory enquiry service to which this information may be passed. It is restricted to the traditional "192 style" voice directory enquiry service. Ex-directory names and addresses are not passed on for any other purpose - for example, CD-ROM products that have the capability to provide a form of directory enquiry service.

• The right to a partial address entry in directories arises from the Telecommunications Data Protection Directive. There is no provision in the Telecommunications Data Protection Directive for restricting this right to a limited number of partial address options. There is therefore no such limitation in the TDPD Regulations.

• Under the TDPD Direct Marketing Regulations, Oftel (or its agent) is responsible for setting up the scheme that will enable certain consumers to "opt out" of receiving unsolicited telephone calls and faxes made or sent for the purposes of direct marketing. Oftel has tendered for and selected an organisation to set up and manage these schemes on its behalf – this organisation is the Direct Marketing Association. The TDPD Direct Marketing Regulations came into force on 1 May 1999.

• Individuals wishing to register their telephone number on the scheme (the telephone preference service) should call 0845-070 0707 and individuals and companies wishing to register their fax number on the scheme (the fax preference service) should call 0845-070 0702. Organisations engaging in direct marketing should call 01932-414161 for an information pack on the telephone preference service and 0171 766 4422 for an information pack on the fax preference service.

• Reverse searching is discussed in the Code of Practice on the Use of Directory Information.

• At the end of December 1998 the Data Protection Registrar finalised the Code of Practice on the Use of Directory Information. The original intention had been to formally issue the Code of Practice on the Use of Directory Information under section 51(3) of the Data Protection Act 1998. This would have required formal consultation with industry and consumer groups. As the Data Protection Act 1998 has not yet been brought into force, the Data Protection Registrar has decided to issue the Code of Practice on the Use of Directory Information, setting out her view of how the fair processing requirements of the Data Protection Act 1984 apply to directory information. The Code of Practice on the Use of Directory Information will not cease to be valid on repeal of the Data Protection Act 1984. Once the Data Protection Act 1998 is in force, the Data Protection Registrar reserves the right to review the content of the Code of Practice on the Use of Directory Information and consider whether or not to consult formally on it and issue it under Section 51(3)(b) of the Data Protection Act 1998.

• BT has produced a licence under which it is providing downloads of OSIS, in accordance with the modification to BT’s Licence. This licence aims to ensure that any organisation taking downloads must ensure that any product they develop has adequate data protection and privacy safeguards.

People with disabilities

• Oftel is committed to protecting the interests of people with disabilities.

• Oftel will continue to support the provision of a free directory enquiry service to people with visual impairments. The provision of this service is part of the package of measures to assist people with disabilities, proposed by Oftel to the Secretary of State under the RVTD Regulations.

• A free inland directory enquiry service is offered to people with visual impairments as other directory products do not enable them to find telephone numbers. International directory enquiries is only available as a directory enquiry service and as such it would be discriminatory to offer it as a free service to one particular group of consumers.

Collection of data to be inputted into OSIS

• The mechanism and charges for making directory information available to OSIS should be resolved between BT and organisations providing directory information.

• The mechanism for collecting directory information may change as the nature of directory information develops. It is reasonable to expect there to be a standard industry format for the delivery of this information. This format should be decided by the industry – Oftel would consider it reasonable if the chosen format minimised the costs involved in the transfer of the directory information. BT is currently consulting on this issue.

• In any event, the costs of running OSIS will be recovered through charges for making OSIS downloads available. The level of charges are a matter for commercial negotiation between BT and interested parties. However, these costs must be fair, cost orientated and non-discriminatory. Oftel will only intervene to resolve disputes. The principles that Oftel would follow in such a dispute are set out in the Directory Information Statement.

• BT has recently published proposals changing the charging structure for the inputting of directory information into OSIS. The proposals are as follows:

• January 1999 – BT stops charging for the inputting of directory information into OSIS, except for data provided on paper;

• April 1999 – BT begins paying suppliers other than BT for the directory information to be inputted into OSIS;

• Late 1999 / 2000 – BT begins paying BT’s retail arm for the directory information to be inputted into OSIS. Oftel has made clear to BT that there would be regulatory concern if the transition to equivalent payments to OLOs and BT retail does not happen as soon as possible.

• Under the RVTD Regulations all PTO licensees who have been allocated numbers by the Director General must supply directory information about their subscribers (and about the end users of any person to whom they have sub-allocated numbers) to PTOs, such as BT, on request. There are corresponding obligations on other licensees and Systemless Service Providers, who have received sub-allocations of numbers, to supply directory information on their subscribers to the person/organisation from whom they received the number sub-allocation or to the licensee who was allocated numbers by the Director General. Information on all allocated numbers should be supplied.

Management of OSIS

• Charges for OSIS downloads may be recovered as indicated under Collection of directory information to be inputted into OSIS above. The provision of directory information from OSIS is a new standard service and so is presumed to be competitive. However, under the NCC regime, if complaints about excessive charging are upheld by Oftel, the price for the service can be determined and brought under a price cap.

• Following the establishment of a working group, BT has presented proposals for greater transparency of accounting and some form of independence for OSIS. This process is ongoing and follows on from BT’s changes to the charging structure for the inputting of directory information into OSIS, set out under Collection of directory information to be inputted into OSIS above.

• The changes set out under Collection of directory information to be inputted into OSIS above will provide the transparency of charges and confidence which industry needs where OSIS is the only core database. This does not however preclude the development of competing databases. If competition does emerge in this market this will be because of developments and growth in the markets of Product Databases and downstream directory services and products.

Terms and conditions on which downloads of OSIS are made available

• Oftel’s view on the terms and conditions on which downloads are made available is indicated under Collection of directory information to be inputted into OSIS above. No organisation may take a download unless they have given an undertaking to comply with the Code of Practice on the Use of Directory Information and data protection legislation.

• BT has consulted Oftel and the directory information industry on the development of a pricing model. BT’s final pricing structure is usage based. Organisations pay for the amount of use that they make of the directory information. Charges are calculated on a real or indicative "per hit" basis.

• Oftel considers that the principle of BT charging a sub-licensing fee where OSIS directory information is passed from BT to BT’s licensee and then by the licensee to third parties in an unchanged form, is fair. Where the licensee adds value to such directory information, a sub-licensing fee would not be reasonable. If organisations receiving OSIS downloads were free to sell the OSIS directory information on in unchanged form they could undermine the cost recovery capability of OSIS and the workings of this market.

Requirement on all PTOs to make directory information available

• Oftel does not consider, at the present moment, that it is necessary to modify the licences of all PTOs. Oftel will, however, consider whether there is a need for a review of this matter at a future date.

Costs of access to DAS/Pathfinder

• The position of the safeguard cap on BT for the carriage of calls for directory enquiries, under the NCC regime, is as follows. There is currently a safeguard cap placed on access to DAS. This charge is on a per terminal basis. The introduction of Pathfinder will make this safeguard cap invalid because Pathfinder will charge on a per "look-up" basis. So the charge for Pathfinder will be a new service. The treatment for a new standard service is for it to be presumed competitive and so there will be no control of the charge. As with OSIS, if complaints about excessive charging are upheld by Oftel the price for the service can be determined and brought under a price cap.

Cost of directory enquiry calls

• Oftel will continue to monitor the cost of calls to directory enquiries. The issue of affordability is complex and needs to take account of the ability to obtain a free directory enquiry service from BT’s public call boxes. The fact that BT offers free calls to directory enquiries from payphones means that these calls are subsidised. However, it should be noted that the payphone business pays the full wholesale rate for such calls to the directory enquiries business and so it is the payphone business that bears the subsidy. In other words, the price of a normal directory enquiries call is not affected by free calls from payphones.

• The requirement set out in the RVTD Regulations is that directory services must be available to all users at an affordable price. Oftel is of the opinion that this requirement is currently met. A PRS directory enquiry service is free to set the level of its own charges but will clearly have regard to current market rates.

• As indicated in the Directory Information Statement, Oftel intends to level the playing field for all competing directory enquiry service providers. This means that, amongst other things, PTOs must purchase conveyance for directory enquiries calls at the same rates as those without a PTO licence – that is, at retail or service provider prices rather than interconnection rates.

• For the reasons set out in the Directory Information Statement, Oftel has no plans at the moment to intervene in the price of international directory enquiries.

• Oftel is monitoring the development of costing and charges for access to overseas databases.

Access code review for directory enquiries

• Oftel will be consulting on possible changes to access codes, including directory enquiries.

• This will include a cost benefit analysis.

Emergency service access to directory information

• The current ability of the emergency services to have access to CLI and the address details of any caller will not be impaired by any of the proposals set out in the Directory Information Statement.

Telephone books

• Oftel does not intend to require BT and Kingston to unbundle phone book charges from line rental charges. Oftel maintains its view that bundling does not have an anti-competitive effect. It is also the case that unbundling could result in possible price increases which might impact upon low-income consumers.

Free directory enquiry calls from public payphones

• Free directory enquiry calls from public payphones are an important service for low-income users. Should the payphone operators seek to discontinue this service, Oftel would have to consider regulatory action to ensure its continuance.

Two amendments were made to the proposed licence modification in response to drafting suggestions.

The words "other than a public telecommunications operator subject to the obligations under paragraphs RVTD2.7 and RVTD2.10" have been inserted after "any person" in paragraph 3A.1 of the modification to BT’s Licence set out in Annex A of this Responses Statement.

This change has been made to avoid unnecessary duplication of the pre-existing RVTD licence condition requirement that all PTO’s, including BT, make this information available to other PTO’s.

The words "for the purpose of enabling him to provide directories or a directory information service" have been replaced with "for the purpose of enabling the provision of directories or a directory information service".

This alteration has broadened the applicability of the modification to BT’s licence so as to allow access to this information provided that it is for the purpose of providing directories or a directory information service, regardless of who actually offers such products or services.

These two amendments were not considered to be material changes. Oftel modified BT’s licence on 1 January 1999. The final version of the modification is attached at Annex A to this Responses Statement.

BT’s retail blind and disabled service will be included in the list of category (c) Network Services, under Condition 18.3 of BT’s licence.

What happens next

1. Consultation on changes to access codes for directory enquiries. This consultation will take place as part of the general consultation on changes to access codes and will include a cost benefit analysis.
2. BT’s proposals for the management of OSIS will be discussed with the directory information industry.
3. Oftel will continue to monitor developments in the markets for directory information services and products.

3A.1 The Licensee shall in accordance with paragraph 3A.2 below on request by any person other than a public telecommunications operator subject to the obligations under paragraphs RVTD 2.7 and RVTD 2.10 make available to him for the purpose of enabling the provision of directories or a directory information service:

1. the contents of the database, in machine readable form, which the Licensee uses to compile directories for the purpose of complying with its obligation under paragraph RVTD 2.7; and
2. on-line access (including a search facility) to the database which the Licensee uses to provide a Directory Information Service for the purpose of complying with its obligation under paragraph RVTD 2.10.

3A.2 Paragraphs RVTD 2.20, 2.21, 2.22 and 2.23 shall apply in respect of any of the items in sub-paragraph (a) or (b) above as they apply to any of the items in sub-paragraph (a), (b) or (c) in paragraph RVTD 2.19 but in such application the words "directory information service" in paragraph 2.22 shall be substituted for the words "Directory Information Service" as they appear in that paragraph."

Plymouth & District TAC

Purbeck & East Dorset TAC

Scarborough & District TAC

Shropshire TAC

CCE (formerly ENACT)(Moira Black – see Terry)

Royal National Institute for the Blind

Association of Chief Police Officers in Scotland

David Curran

Kenneth Hamilton

I.R. MacCullum

Peter Roberts

Bob Twitchin

Brian Whittaker

confidential respondent

BT

Cable & Wireless

Orange plc

Scottish Telecom

Conduit Enterprises Ltd

Direct Select

Rebus Directory Services

Thomson Directories

BT – British Telecommunications plc.

BT’s Licence – the licence granted to BT on 22 June 1984.

CLI – calling line identification.

Code of Practice on the Use of Directory Information – the code of practice on the use of directory information, produced by the Data Protection Registrar. Copies are available on the Data Protection Registrar’s website.

DAS/Pathfinder – DAS (Directory Assistance Service) is BT’s database which is used to provide operator assisted directory enquiry services. It comprises a database and search software. Pathfinder is the database and system which will replace DAS and be used to provide a directory enquiry service.

Director General – the Director General of Telecommunications

Directory Information Forum – the industry group made up of users of directory information.

Directory Enquiry Service – an operator assisted voice directory information service. It is distinguishable from an on-line Directory Information Service where no operator is involved.

Directory Information Service – defined in the Telecommunications Act 1984 and may refer to both a directory enquiry service and an on-line directory information service.

Directory Information Statement – the Oftel Statement on the Provision of Directory Information Services and Products, published on 25 September 1999.

Data Protection Registrar – an independent officer who is appointed by Her Majesty the Queen and reports directly to Parliament. Will be known as the Data Protection Commissioner when the Data Protection Act 1998 comes into force.

NCC – (Network Charge Control) – regulation of BT’s interconnection regime.

OLOs – licensed operators other than BT.

OSIS – (Operator Services Information System) – a core database run by BT which holds directory information on all BT’s subscribers and subscribers of other companies. OSIS provides information to Product Databases such as DAS/Pathfinder and to produce other directory information services and products.

Product Database – term used to describe databases which are produced by downloading directory information from core databases and manipulating that information so that it is suitable for various types of interrogation. DAS/Pathfinder is an example of a product database.

PRS – Premium rate service – services using a special dialling code which are charged at a rate higher than the normal cost of making a call to cover their value-added information or entertainment content. The content provider charges the caller by means of the telephone bill which the telephone company sends to their subscriber. The content provider has a contract with the telecoms company under which the telecoms company pays the content provider a specified amount of the revenue collected from PRS calls.

PTO – Public Telecommunications Operator – network operators with powers granted by the Secretary of State for Trade and Industry under the Telecommunications Act 1984 to enable them to install their systems on public and private land, property etc.

Responses Statement – this statement, setting out responses on the Directory Information Statement.

RVTD Regulations and Licence Conditions – the Telecommunications (Open Network Provision)(Voice Telephony) Regulations, 1998 (1998, No. 1580), implementing 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).

Systemless Service Providers – as defined in the RVTD Regulations to mean a person who provides publicly available telephone services but who does not run a telecommunications system within the meaning of Section 4 of the Telecommunications Act 1984 by means of which such services are provided.

Supplemental Services Business – defined in Condition 18.3 of BT’s Licence.

TDPD Regulations – the proposed Telecommunications (Data Protection and Privacy) Regulations 1999 which will implement the Telecommunications Data Protection Directive.

TDPD Direct Marketing Regulations – the Telecommunications (Data Protection and Privacy)(Direct Marketing) Regulations 1998 which implement the direct marketing provisions of the Telecommunications Data Protection Directive.

Telecommunications Data Protection Directive – the European Parliament and Council Directive of 15 December 1997 concerning the Processing of Personal Data and the Protection of Privacy in the Telecommunications Sector (97/66/EC)