Statement issued by the Director General of Telecommunications

May 1999

Foreword from Director General of Telecommunications

Oftel’s 1999 / 2000 Management Plan

This statement sets out Oftel’s strategy and work plan for 1999/2000 to promote the interests of all UK telecoms consumers through increased competition and effective, forward looking regulation in a changing market.

It is a challenging and exciting time for UK telecoms customers – both residential and business – to take advantage of the increasing range of services, suppliers and good ‘deals’ available.

Oftel’s management plan reflects this dynamic environment. It is based on a strategy with three core parts – promoting competition, protecting consumers and preventing anti-competitive practices.

As the telecoms market has developed, it has become clear these core parts of Oftel’s strategy involve a wider range of elements – reflecting, for example, the special characteristics of telecoms networks in regard to preserving the privacy of customer information and the need to manage access to certain scarce resources (see chapter 1, paras 20-23 of this statement for further details). In taking account of this wider range of factors the aim is to only regulate where necessary while at the same time ensuring that consumers’ interests are effectively protected. The strategy can therefore be summarised as ‘competition plus’.

In drawing up this plan Oftel sought the views of groups interested in the development and use of telecommunications services – residential and business consumers, consumer organisations, industry players, and Government agencies and departments.

The responses Oftel received – summarised in Appendix 1 of this document – indicate a significant degree of support for Oftel’s ‘competition plus’ strategy and the specific projects and programmes proposed for 1999/2000. As a result of the consultation specific elements of the plan have been amended and updated.

I am grateful to all those who responded for providing a useful and thought provoking comments both on Oftel’s overall direction and on individual areas of planned work. It was especially helpful that several respondents identified in their responses areas of particular interest to them where they would like to contribute to Oftel’s work in 1999/2000. I would encourage others to do likewise. This statement contains contact numbers and email addresses for each Oftel project and programme manager – if you have an interest in an individual area please contact the relevant manager to discuss how you could contribute to the work planned.

These comments have helped to build a strategy and plan that takes account of the experience, knowledge and vision of Oftel’s key stakeholders.

I look forward to working with all those who have an interest in achieving the objectives set out in this statement for the benefit of telecoms consumers.

DAVID EDMONDS

DIRECTOR GENERAL OF TELECOMMUNICATIONS

Contents

Chapter 1 Oftel's strategy – past, present and future

Telecommunications – fundamental to the UK's well being
Oftel’s goal and objectives – and its current strategy to achieve them
Underlying factors – the background to regulation in telecommunications markets

        Origin and evolution of UK telecommunications market
                    The type of industry – impact on suppliers

            – impact on customers

Development of Oftel's strategy over the next 18 months
        Policy principles used in current strategy
        Strategy development in the short term: ‘competition plus’

Developing a longer term strategy … in a changing market environment
Summary

Chapter 2 Projects and programmes for 1999/2000

Introduction
Summary of projects and programmes for 1999/2000 Table 1
Highlights of key dates for selected projects and programmes Table 2
Individual project and programme descriptions A1 – D12

Appendices

Consultation process and responses
Responses to the statement
Internal projects and programmes and Oftel resources summary

Glossary

Chapter 1

Oftel’s strategy – past, present and future

Telecommunications – fundamental to the UK’s well being

1. Telecommunications networks and services play a fundamental role in the functioning and growth of modern economies and societies. The role of telecommunications is critical across a very wide range of activities: from emergency services to social services, from small business to multi-national companies, from local authorities to central government, and for every individual in their social and employment contacts. Telecommunications underpins digital, electronic commerce based activities and new services bringing together broadcasting and IT and forming a key input to the knowledge driven economy. The telecommunications sector is also a major contributor to the UK economy in its own right – accounting for around 2% of GDP and over 200,000 jobs and with related and converging sectors it accounts for somewhere over twice these figures. The international competitiveness of the UK economy is enhanced where telecoms meets consumer needs in an efficient and effective way.

2. Oftel, as regulator of the UK telecommunications market, plays a key role in enabling achievement of a competitive telecommunications market. Oftel needs to set out clearly, so that key players – consumers, industry and investors and other parts of Government can understand and debate, the following:

• Oftel’s goal and objectives – and its current strategy to achieve them
• the background to regulation in telecommunications market
• the development of Oftel’s current strategy over the next 18 months; and
• the implications for Oftel’s longer term strategy of an increasingly competitive telecommunications market and convergence with other market sectors.

3. This paper sets out Oftel’s position in each of these areas. In doing so it needs to be recognised that the overall framework for telecommunications regulation is set by the Telecommunications Act 1984, EU Directives on Telecommunications and the Competition Act 1998. All place specific functions and duties on Oftel. The Government’s review of utility regulation and the prospect of legislation arising from this is a further emerging factor in the overall framework.

Oftel’s goal and objectives – and its current strategy to achieve them

4. Oftel has as its goal the achievement of the best deal for UK telecommunications customers in terms of quality, choice and value for money. This goal is derived from and summarises its various statutory responsibilities. To achieve its goal Oftel has five high level objectives:

• promoting sustainable and effective infrastructure competition
• promoting sustainable and effective services competition
• preventing anti-competitive practices
• fair distribution of benefits of competition
• consumer protection especially where markets are not competitive.

5. Oftel is trying to achieve its goal and objectives through a three-pronged strategy:

• by promoting consumer interests through protection measures where competition is not yet effective, ensuring social obligations to certain groups of disadvantaged consumers are met and that the nation’s dependence on telecommunications services is matched with commitments to service, continuity, network resilience and protection of customer information
• through promoting competitive markets for telecommunications services that serve all consumers interests – residential, business and others – at all levels in fixed and mobile networks and in services over networks. This involves establishing a climate which
• encourages investment by new entrants and existing players
• provides telecoms services which are internationally competitive to customers
• encourages the provision of customer focused information by suppliers
• overcomes barriers outside the control of individual suppliers and customers, such as the need for networks to interoperate with each other
• ensures the efficient management of scarce resources such as numbering
• by preventing suppliers with strong market positions from acting anti-competitively.

6. In the White Paper Our competitive future – Building the knowledge driven economy the Government confirmed its belief in competition in communications infrastructure and services to provide benefits to consumers and to promote innovation. The Government also announced its intention to reform telecommunications regulation to provide a more flexible approach appropriate for new and developing markets. Oftel fully shares the Government’s belief in competition and modern, flexible regulation. Both underpin Oftel’s approach. Oftel’s experience is that competition is the best "regulator" of the market in the interests of consumers. Competition is a spur to innovation and helps drive down prices, increase quality of service and provides an increasing choice of suppliers and services and enhances the international competitiveness of the UK economy.

7. As competition becomes effective Oftel is seeking to draw back from detailed prescriptive regulation whenever practical and where market developments allow. In these instances the constraints on market behaviour will come from

• the pressure of market forces operating between competitors
• Competition law where Oftel together with OFT will be responsible for using the powers of the new Competition Act to prevent anti competitive behaviour
• continuing, if reduced, sector specific regulation of the type set out in paragraph 5 above
• the influence of informed consumers
• industry self regulation eg through codes of practice and standard setting
• other government and quasi government bodies exercising statutory or regulatory powers eg the Data Protection Registrar in respect of telecommunications data protection regulations and the OFT re unfair contract terms in consumer contracts with telecommunications suppliers.

8. Figure 1  illustrates how regulatory roles become more widely spread as the telecommunications market develops. It is not intended to be a quantitative representation, but merely to show likely changes in roles as the market develops.

Underlying factors – the background to regulation in telecommunications markets

9. The key underlying factor to telecommunications regulation is that competition in telecommunications will not inevitably follow from allowing new suppliers into the market – for two main reasons:

• the origin and subsequent evolution of the UK telecommunications market
• the type of industry that telecommunications is.

Origin and evolution of UK telecommunications market

10. BT when privatised in 1984 inherited, from its former public sector status, a UK-wide monopoly of fixed link telecommunications services with significant implications for the introduction of competition.

11. Progress is being made to develop competition, particularly since 1992 when the BT/Mercury duopoly was ended, but it is not a short-term process. BT’s current share of the total UK telecommunications market of some £22 billion, (for fixed, mobile networks and telecommunications equipment) is around two thirds compared to an almost complete monopoly in 1984 and around three quarters in 1994.

12. Within this total its position in individual markets varies: it retains high market shares (80% or more) in major parts of the fixed link residential market segment such as local calls and access but significantly lower shares in segments of the fixed link business market such as international calls (less than 40%) and national calls (around 65%). Market shares are only one way, however of considering the extent of competition.

13. The extent of competition can be illustrated as follows:

• in the provision of fixed link infrastructure to the residential market. Cable networks now pass around 50% of all UK homes and serve some 16% of UK households
• Indirect access is now available across the UK to both residential and business customers from around 50 licence holders
• The mobile market is growing rapidly with over 14 million subscribers with falling prices and a range of new tariffs and services offered – such as pre-pay, and tariffs for low and high users – by the four mobile network operators which are beginning to challenge those provided by fixed operators
• Some 2 to 3 million UK Internet subscribers purchasing services from a wide range of service providers
• Satellite and cable TV have around 7 million subscribers in total with four main players.

14. In several key areas, eg fixed link residential and the mobile market – a small number of large suppliers are emerging to account for nearly all of the activity. Other markets such as Internet service provision are less obviously dominated by a small number of players.

The type of industry – impact on suppliers

15. The telecommunications industry itself has a number of features that have major implications for regulatory policy aimed at the development of competition and the advancement of consumers’ interests:

• the networked nature of the telecommunications sector requires co-operation between competitors in order to deliver services between customers who may each buy their service from different telecommunications suppliers. This co-operation need not necessarily happen even in relatively competitive networked markets and is unlikely to occur naturally where there are suppliers with market power
• The significant economies of scale in the provision of telecommunications networks, especially fixed link access networks, limit the likely extent of infrastructure competition
• Significant costs are involved in the provision of infrastructure and these costs cannot always be redeemed if companies exit the market
• Most telecommunications infrastructure operators are vertically integrated and where combined with market power, this has the potential for anti-competitive behaviour, especially in the face of new entry. Such behaviour may even work through the more competitive market segments of a supply chain to the disadvantage of customers.
• In the mobile market there is limited radio spectrum available which limits the number of competitors which can provide service.

Types of industry – impact on customers

16. The specific features of telecommunications also have implications for customers which in turn affects how competition is introduced and the prospects of achieving sustainable competition. Two features of telecommunications services in particular are relevant:

• the fundamental requirement for all individuals to be able to readily use telecommunications networks
• the exchange of information (voice, data, visual images) that takes place between customers.

17. Competition in telecommunications will not necessarily deliver access to a minimum level of service to all customers. Some customers may be uneconomic to serve due to location or their low level of spend or there may be specific costs involved in making services available to people with disabilities. The way in which competition is introduced needs to take account of and accommodate the need to deliver a universal service.

18. The confidence customers have in being able to exercise control over information sent and received and the charges made for their calls is an important feature of telecommunications in both competitive and non-competitive markets. Increasing customer awareness and concern over these issues is evident, for example in the high level of complaints about unsolicited faxes and the increasing proportion of UK telecommunications customers that have opted for ex-directory status.

Development of Oftel's strategy over the next 18 months

Policy principles used in current strategy

19. Oftel has adopted a set of principles in order to manage the process of change from monopoly to competition – these are set out below. There are tensions, however, between the different elements, which mean that the application of these principles is not a straightforward process and requires careful balancing. And there is a risk that regulation can distort the market where competition grows around the regulatory principles. The principles are as follows:

Promoting consumer interests, consumer protection and ensuring social access

• to have price controls on dominant operators where there is little prospect of effective competition to reduce prices
• to enable social objectives to be met, for example, by ensuring access to a minimum universal set of services, by encouraging the provision of services accessible to all irrespective of any physical disability, by facilitating the provision of low cost access by schools to the Internet
• to enable customers to exercise choice effectively with adequate information to enable choice
• to support customers’ right to privacy and redress in use of their data over and by telecommunications networks
• to ensure access to adequate redress for consumer complaints
• to ensure the nation’s dependence on telecommunications services is matched with commitments to service continuity and network resilience.

Promoting competition

• promoting competition at all levels in the market and encouraging infrastructure competition where possible and realistic
• promoting competition and choice in the provision of services over networks
• sustaining the incentives to invest in infrastructure and service provision by setting appropriate terms and conditions
• ensuring access rights for competitors to interconnect with networks of dominant operators at cost based prices
• ensuring the impacts of factors outside the influence of individual customer and suppliers (eg standards for interoperability) are recognised and addressed to achieve pro-competitive outcomes
• to facilitate the provision of information to increase market transparency
• the adoption of a neutral approach between technologies
• removing barriers to market entry
• managing access to certain scarce resources (for example numbering).

  Compliance

• intervention to ensure the prevention of anti-competitive practices by operators with market power
• ensuring compliance with licence conditions and agreed rules
• investigation of complaints about anti-competitive practices
• ensuring the effect of barriers to market entry are minimised
• addressing competition issues associated with management of bottlenecks (ie restricted customer access to services controlled by an individual supplier)

Strategy development in the short term: ‘competition plus’

20. As the extent and impact of competition increases Oftel’s strategy needs to develop to ensure the best deal for consumers is achieved in a new set of circumstances. The new circumstances, as set out previously, are that the key individual markets in the telecommunications sector increasingly comprise not monopolies or duopolies but a small number of large players who account for the great majority of market activity and market power.

21. To address these circumstances, Oftel’s strategy in the short term is to retain a three-pronged core strategy of promoting and protecting consumer interests, promoting competition and ensuring compliance plus greater emphasis on the following approaches and policy principles:

• ensuring developments in the overall framework of regulation (such as at an EU level) are recognised and influenced to reflect the interests of UK telecoms customers
• moving towards broad behavioural rules applying to a range of players and away from prescriptive, detailed rules on individual operators. The Competition Act in particular is both enabling and encouraging this approach and with its full implementation from March 2000 will highlight differences and tensions between Oftel’s powers and remedies as a regulator and as a competition authority that will need to be resolved in a transparent way that meets its goal and statutory responsibilities
• recognising that the increase in competitive pressures has identified a wider range of ‘externalities’ in the working of telecommunications markets that require particular attention where the market has not provided a satisfactory solution – for example call termination, interoperability standards, management of bottlenecks, and that the impact of regulatory rules themselves will have influenced the structure of the market with consequences for these market structures where rules are changed
• managing access to certain scarce resources in a way designed to maximise competition in areas such as numbering and encouraging facility sharing in certain circumstances
• identifying and developing a coherent approach to economic regulation across converging sectors
• raising awareness by consumers of both choice available and their rights (including rights over control of use of personal data)
• … and that this will involve greater interaction, identification and adoption of good practices by Oftel and other regulatory bodies – such as the Data Protection Registrar – in order to provide a more seamless service to consumers.

22. Figure 2 below summarises how Oftel’s ‘competition plus’ strategy is developing.

Click here to view figure 2

23. Examples of these developments of strategy in the short term can already be seen. As the market has developed, it has been possible to achieve changes in regulatory responsibilities away from more detailed prescriptive regulation. For example retail price control now focus on the lowest spending 80% of residential customers who account for 25% of BT’s revenues. Prior to 1997 it applied to nearly two thirds of its revenues.

Developing a longer-term strategy…in a changing market environment

24. In the longer term Oftel needs to identify how far it can move towards a position of relying on competition (and competition law) in the market to achieve its goal, how far it will still need to intervene to actively promote competition and protect consumers, and how far it can enable customers to exercise their rights themselves to protect their interests. Oftel’s current view is that it will need to retain a regulatory role where:

• there are limitations to market developments identified and these limitations are likely to disadvantage customers; and
• there are social objectives such as the need to be able to contact emergency services and for services to be accessible to people with special needs.

25. As part of its work on a longer term strategy Oftel will consider further the circumstances where telecoms specific regulation will be appropriate, within the framework set by UK and EU legislation. This work would also consider the basis on which to resolve tensions between policy principles and how these will be applied in the light of market developments such as

• rapidly developing technologies including the spread of networks built to Internet Protocol (IP) standards rather than primarily for carrying voice calls
• international liberalisation of telecommunications with impact both on UK customers making international calls and on the UK telecommunications market itself
• globalisation of reach of telecommunications suppliers serving multinational companies
• integration between fixed and mobile markets
• convergence of IT, telecommunications and broadcasting
• new methods of pricing new services
• increased demand for access to local loops by competitors seeking to provide new services
• the effective completion of the majority of the cable infrastructure network
• new developments in technologies and markets bringing pressure on the current model of the vertically integrated telecommunications network operator (see glossary for definition of vertical integration).

Summary

26. This chapter has set out Oftel’s view of

• the importance of telecommunications to the UK and the consequent importance of achieving the regulatory goal of best deal for UK telecommunications customers
• how Oftel is seeking to achieve its goal, primarily through the promotion and protection of consumer interests, the promotion of competition and preventing anti-competitive practice
• the special features of telecommunications that make the achievement of effective, sustainable competition a challenge
• what elements comprise Oftel’s current strategy and how the strategy is being developed in the short term to reflect developments in competition re Oftel’s ‘competition plus’ strategy
• what issues need to be addressed to develop a longer-term strategy in a technologically converging world.

27. This chapter therefore provides the context for Oftel’s plan of individual project and programme areas in 1999/2000 as described in Chapter 2 below.

Chapter 2

Projects & programmes for 1999/2000

Introduction

1. This chapter sets out Oftel’s work in term of projects and programmes for 1999/2000 and beyond.

2. Table 1 below lists the individual projects & programmes, Table 2 highlights key dates in the year and is followed, in the remainder of the Chapter, by a brief description of each project/programme with contact details given for each project or programme. Where quarter dates are shown as to when key stages are due to be completed they refer to:

• Q1 is April – June 1999
• Q2 is July – September 1999
• Q3 is October – December 1999
• Q4 is January – March 2000

3. A list of internal projects and programmes carried out by Oftel’s Business Support Directorate is given in Appendix 3 together with a note of Oftel’s resources for 1999/2000

Table 1

Oftel 1999/2000 management plan - Summary of projects and programmes

Table 2 - Oftel Management Plan 1999/2000 - Highlights of key dates for selected projects and programmes

(NB. Not all projects/programmes nor actions are included below. For full list of projects, programmes and actions see table 1 and text below this table)

A. Overall Framework of Regulation

Projects in this section help to define and shape the overall framework within which regulation works. The projects recognise the importance of European Union and wider developments, potential changes to relevant UK legislation and licensing, the impact of convergence, the need to develop and state thinking on strategy and plans in a stakeholder inclusive way, and to evaluate how consumers have benefited from the development of the UK telecoms market.

A1 1999 EU review of telecommunications regulation

Project Manager: Jim Niblett (tel: 0171-634 8780, email: jniblett@oftel.gov.uk)
Other contact: Matthew Conway (tel: 0171-634 8867, email: mconway@oftel.gov.uk)

Objective: In conjunction with government departments and other authorities, to promote acceptance of the most suitable regulatory regime for the UK market as it develops.

• To help to stimulate the widest possible informed debate in the UK about appropriate objectives and regulatory provisions, by close liaison with interested parties, public presentations and otherwise, so as to assist Oftel in formulating its own views. (Publish summary of report by Q3 1999/2000).

• To liaise closely with the European Commission, key Members of the European Parliament and other leaders of opinion throughout the progress of the Review, submitting proposals and comments on the proposals of others as appropriate (Q1 to Q3 1999/2000).

• To exchange views with European regulatory authorities, so as to reinforce mutual understanding of each other’s positions and to co-ordinate those positions as far as possible
  (Q4 1999/2000).

A2 Influencing international thinking

Project Manager: Matthew Conway (tel: 0171-634 8733, email: mconway@oftel.gov.uk)
Other contact: Joanna Wifalk (tel: 0171-634 8808, email: jwifalk@oftel.gov.uk)

Objective: To apply the experience gained from regulating the UK telecoms market to the developing international and European policy frameworks.

• Continue to develop relations with other administrations, the Independent Regulators’ Group (meetings Q3 and Q4 1999/2000) and European Committee for Telecoms Regulatory Affairs (ECTRA) (meeting Q3 1999/2000) to help improve mutual understanding and to exchange best practice on implementation of current policy.

• Maintain and enhance the awareness within Oftel of the international agenda, and continue to improve Oftel’s effectiveness in influencing it (on going).

A3 Input to government review of utility regulation

Project Manager: Paul Campbell (tel: 0171-634 8890, email: pcampbell@oftel.gov.uk)
Other contact: Nigel Humberston (tel: 0171-634 8824, email: nhumberston@oftel.gov.uk)

Objective: To respond in a timely and effective manner to new proposals from the Government concerning future arrangements for utility regulation.

• Contribute to the debate on the content of the future legislation (Q2 1999/2000).
• Improve Oftel’s preparedness for implementation of the future measures (Q3 1999/2000).

A4 Preparations for Telecoms Consumer Council (TCC)

Project Manager: Neil Buckley (tel: 0171-634 8880, email: nbuckley@oftel.gov.uk)
Other contact: Terry Walker (tel: 0171-634 8734, email: twalker@oftel.gov.uk)

Objective: To ensure consumer interests are promoted and enhanced through preparations for the proposed transfer of consumer functions from Oftel to a TCC.

• Review nature and scope of functions to be transferred (Q2 1999/2000).
• Review of Oftel complaint handling powers (Q3 1999/2000).
• Develop initial draft of memorandum of understanding between prospective TCC and Oftel (Q4 1999/2000).

A5 Oftel short term and performance monitoring strategy development

Project Manager: Geoff Delamere (tel: 0171-634 8745, email: delamere@oftel.gov.uk)
Other contact: Sylvia Smith (tel: 0171-634 8742, email: ssmith@oftel.gov.uk)

Objective: To ensure Oftel identifies and publishes its strategy and management plan on an annual basis and monitors performance.

• Review responses and reaction to publication of 1999/2000 strategy and management plan document (Q1 1999/2000).
• Monitor key indicators of customers’ choice of services and suppliers, quality of service obtained and value for money achieved for 1999 including international benchmarking results and performance monitoring (prepare review document Q4 1999/2000).
• Prepare draft management plan and strategy document for 2001/2002 (Q3 & Q4 1999/2000).

A6 Oftel long term strategy development

Project Manager: Alan Bell (tel: 0171-634 8931, email: abell@oftel.gov.uk)
Other contact: Geoffrey Delamere (tel: 0171-634 8745, email: delamere@oftel.gov.uk)

Objective: To assess Oftel's role against likely market developments and to set out the approach and, where necessary, the rules required to enable it to perform its role.

• Identify the implications for regulation of key market changes (Q1 1999/2000).
• Develop guidelines on the application of Oftel’s high level objectives (Q2 1999/2000).
• Develop detailed rules to implement these guidelines for use internally, and discussion externally, to ensure coherent and consistent regulation.( Q3 1999/2000)
• Issue statement on longer term strategy (Q3 1999/2000).

A7 Licensing policy

Project Manager: Peter Davies (tel: 0171-634 8923, email: pdavies@oftel.gov.uk)
Other contact: Ritu Manhas (tel: 0171-634 5309, email: rmanhas@oftel.gov.uk)

Objective: To improve the efficiency of the licence granting and modification processes.

• Carry out a review of all outstanding licensing issues and policy changes (Q1 1999/2000).
• Work with DTI on changes to the licence modification process (Q3 1999/2000).
• Produce new licence templates for the use of the academic community and a data only individual licence (Q3 1999/2000).

A8 Implementation of the Licensing Directive

Project Manager: Peter Davies (tel: 0171-634 8923, email: pdavies@oftel.gov.uk)
Other contact: Ritu Manhas (tel: 0171-634 5309, email: rmanhas@oftel.gov.uk)

Objective: Working with DTI to ensure that all the necessary changes are made to telecommunications licences to implement the Licensing Directive.

• Complete consultation with industry and settle outstanding policy issues (Q1 1999/2000).
• Assist with the drafting of statutory instrument to give effect to licence changes (Q1 1999/2000).
• Complete statutory process and issue texts of all revised licences to licensees (Q2 1999/2000).

A9 Stakeholder relationships

Project Manager: Chris Taylor (tel: 0171-634 8850, email: ctaylor@oftel.gov.uk)
Other contact: Mike Galvin (tel: 0171-634 8869, email: mgalvin@oftel.gov.uk)

Objective: To evaluate existing lines of communication between Oftel and its stakeholders (ie consumers, key investors, operators & service providers). To make recommendations on how to manage relationships and interfaces with stakeholders going forward.

• Internal review of current relationships and existing interfaces between Oftel and its stakeholders. (Q1 and Q2 1999/2000).
• External survey of stakeholders – issue questionnaire (Q1 and Q2 1999/2000).
• Publish results (Q3 1999/2000).

A10 Co-operation between ITC, OFT And Oftel – Coherent economic regulation in the communications sector

Oftel Project Manager: Jim Niblett (tel: 0171-634 8780, email: jniblett@oftel.gov.uk)
Other contact: David O’Neil (tel: 0171-634 8861, email: djo’neil@oftel.gov.uk)

Objective: Working through the "Group of 3" (ITC/OFT/Oftel), to promote coherent economic regulation within the Communications sector.

• To complete a feasibility study into a common regulatory philosophy and approaches for dealing with problems of unfair competition in communications markets (Q1 1999/2000).

A11 Reform of the Telecommunications Act

Project Manager: Neil Buckley (tel: 0171-634 8880, email: nbuckley@oftel.gov.uk)
Other contact: Andrew Gorton (tel: 0171-634 8720, email: agorton@oftel.gov.uk)

Objective: To work with the Department of Trade and Industry on proposals to update and reform the Telecommunications Act 1984

• input to DTI’s initial statement Q1 1999/2000
• Input to detailed proposals Q3 and Q4 1999/2000.

B. Promoting and protecting consumer interests

Projects in this section are focussed on promoting and protecting consumer interests - recognising the special nature of telecoms for customers especially in terms of privacy and security, preventing social exclusion which could result from certain groups being unable to get access to key telecoms services and preventing suppliers abusing positions of market power.

Promoting and protecting consumer interests: Special nature of telecoms

B1 Data protection in telecoms

Project Manager: Paul Campbell (tel: 0171-634 8890, email: pcampbell@oftel.gov.uk)
Other contact: Nigel Humberston (tel: 0171-634 8824, email: nhumberston@oftel.gov.uk)

Objective: To co-ordinate the Oftel contribution to the implementation of the Telecoms Data Protection Directive and establish schemes to enable customers to opt out of receiving direct marketing calls.

• Work with DTI on the implementation of the Directive (Q1 1999/2000).
• Establish an opt-out scheme run by an approved body (Q1 1999/2000).
• Monitor effectiveness and assess awareness of opt out scheme for customers (Q2 – Q4 1999/2000).

B2 Regulation of premium rate services (PRS) through the Independent Committee for the Supervision and Standards of Telephone Information Services (ICSTIS)

Project Manager: Paul Campbell (tel: 0171-634 8890, email: pcampbell@oftel.gov.uk)
Other contact: Sylvia Smith (tel: 0171-634 8742, email: ssmith@oftel.gov.uk)

Objective: To co-ordinate Oftel policy relating to customer concerns over premium rate services and to liaise with ICSTIS.

• Widen the range of services that fall within ICSTIS regulation by modification of the relevant licence condition (Q2 1999/2000).
• Achieve a reduction in the number of complaints relating to PRS numbers (Q3 1999/2000).
• Work with ICSTIS to ensure compliance with the ICSTIS Codes (Q1 1999/2000).

B3 Use of customer information (Directory Enquiries)

Project manager: Roland Sinker (tel: 0171-634 8894, email: rsinker@oftel.gov.uk)
Other contact: Nigel Humberston (tel: 0171-634 8824, email: nhumberston@oftel.gov.uk)

Objective: To facilitate competition in the directory services market and to protect customers in the use of their directory information.

• Publish a Statement on the responses to the October Statement Provision of Directory Information Services and Products (Q2 1999/2000).
• Review directory enquiry access codes (Q2 1999/2000).
• Implement changes to BT’s 19989/1999 accounts, financial statements and related documentation (Q2 1999/2000).

B4 Calling line identification (CLI)

Project Manager: Frank Phillips (tel: 0171-634 8871, email: fphillips@oftel.gov.uk)
Other contact: Phil Cobb (tel: 0171-634 8913, email: pcobb@oftel.gov.uk)

Objective: To ensure that the regulatory arrangements applying to Calling Line Identification (CLI) sustain the continuing commercial development of the service while robustly protecting consumers’ privacy and data protection rights.

• Produce Consultative Document making the case for a more flexible use of Presentation Numbers enabling customers who meet certain criteria to supply numbers for CLI display to network operators, subject to appropriate safeguards (Q1 1999/2000), statement (Q2 1999/2000)
• Promote the development of a Code of Practice by Service Providers setting out the framework within which they might have access to "raw" CLI for service management purposes (Q2 1999/2000).
• Work closely with the Data Protection Registrar on the national implementation of the CLI articles of the Telecoms Data Protection Directive (97/66/EC) (Q2 1999/2000)

B5 Electronic commerce

Project Manager: Helen Terry (tel: 0171-634 8866, email: hterry@oftel.gov.uk)
Other contact: Ilsa Godlovitch (tel: 0171-634 8721, email: igodlovitch@oftel.gov.uk)

Objective: To identify Oftel’s role with respect to the emerging markets in electronic commerce and its regulation.

• Work with DTI on electronic commerce bill as it goes through Parliament to prepare for Oftel’s regulatory role in relation to electronic signature services (Q3 1999/2000).
• Work with DTI to influence the EU in the formulation and negotiation of legislation relating to electronic commerce with a view to ensuring the development of a coherent framework
  (by Q4 1999/2000).
• Analyse the wider impact of the growth of electronic commerce and promote recognition of key issues within Oftel and in other Government departments (Q1 1999/2000).

B6 Implementation of the Revised Voice Telephony Directive

Project Manager: Francisca Mendia-Lara (tel: 0171-634 8836, email: fmendialara@oftel.gov.uk)
Other contact: Nicholas Good (tel: 0171-634 8839, email: ngood@oftel.gov.uk)

Objective: To ensure compliance with the duties placed upon the Director General and the obligations imposed upon telecommunications companies by the implementing regulations.

• Initial consultation on a procedure to resolve disputes between consumers and operators (Quarter 2 1999/2000).
• Open competition to become the arbitrator or mediator (Quarter 2 1999/2000).
• Final statement on the dispute resolution procedure that is to be adopted (Quarter 3 1999/2000).

B7 Essential requirements

Project Manager: Malcolm Davies (tel: 0171-634 8906, email: mdavies@oftel.gov.uk)
Other contact: Keith Bowman (tel: 0171-634 8914, email: kbowman@oftel.gov.uk)

Objectives: To publish guidelines relating to requirements placed on public telecommunications operators (PTOs) by the Revised Voice Telephony Directive and it’s implementation in UK law (Statutory Instrument 1580) in relation to the provision and maintenance of essential requirements in the fields of security of network operations and maintenance of network integrity (including network resilience).

• To establish those aspects of network design which govern the provision of operational security and network integrity (Q1 1999/2000).
• To establish examples of best practice for the maintenance and ongoing provision of operational security and network integrity (Q1 1999/2000).
• To publish guidelines which properly advise and interpret how PTO’s may satisfy the statutory requirements in relation to the above. (Q1 1999/2000).

B8 Metering and billing approval scheme

Project Manager: Malcolm Davies (tel: 0171-634 8906, email: mdavies@oftel.gov.uk)
Other contact: Phil Cobb (tel: 0171-634 8913, email: pcobb@oftel.gov.uk)

Objectives: To extend the meter approval scheme in relation to all licensed telecommunications operators and service providers through, where appropriate, licence changes to ensure customer confidence in billing accuracy and for the protection of consumer interests.

• Formulation of firm policy proposals based on earlier consultation (Q1 1999/2000).
• Publication of policy statement (Q2 1999/2000).
• Extension of scheme where appropriate to two remaining mobile operators and principal cable companies (Q3–Q4 1999/2000)

Promoting and protecting consumer interests: preventing social exclusion

B9 Universal service