Contents

Foreword

Chapter 1 Strategy update

Chapter 2 Strategy development

Chapter 3 Proposed projects and programmes 2002/3

Chapter 4 Oftel's proposed budget 2002/3

Chapter 5 Consultation process and questions

Annex 1 Oftel decisions – monitoring log for 2001

Annex 2 Impact of the EU Directives including Market Reviews

Annex 3 Non-market reviews timetable

Annex 4 Market research plans for 2002/3

  Foreword from the Director General of Telecommunications

This draft Management Plan for 2002/3 updates Oftel’s strategy to meet its objectives. It sets out Oftel's projects, programmes and budget for 2002/3. We are seeking views by 31 January 2002.

The plan is set against a background of change in demand for more sophisticated services such as broadband though basic telephony remains of fundamental importance. There have been major changes over the last year as a result of competition and because of the financial environment. Major change in 2002 will come from the new European framework, and related new UK legislation.

Oftel wants to receive views on its proposed work from all those with a stake in the UK electronic communications market – consumer groups, telecoms operators, service providers, other regulators and Government. We would also welcome views from other European regulatory authorities.

The draft plan includes:

• lessons drawn from the experience of the past two years;

• initiatives to promote competitive broadband markets and steps to prepare for OFCOM;

• work needed to start implementation of the new European Directives in 2002; and

• the appropriate focus of regulatory resources.

Oftel looks forward to hearing your views. These will be important to ensure that we tackle the important issues over the year ahead.

David Edmonds

Director General of Telecommunications

Chapter 1 Strategy update

Introduction

1.1 Oftel's aim to obtain the best deal for consumers in quality, choice and value for money is achieved primarily through promoting effectively competitive electronic communications markets. We intervene to protect consumers where competition is insufficiently established or where there are special features of networks that require intervention.

1.2 Our objectives are:

• effective competition – benefiting consumers;
• well informed consumers;
• adequately protected consumers; and
• prevention of anti-competitive practice.

1.3 Since January 2000, Oftel has adopted a 'competition plus' approach to achieve these objectives.

1.4 The 2002/3 draft plan takes account of experience, and looks ahead to the European framework and OFCOM.

Strategy achievements

1.5 Some telecoms markets are becoming increasingly competitive though effective competition has yet to be achieved in others. The pace of change of technology and consumers’ demands means constant need for investment in new networks and services. Regulatory action needs to be focused on its objectives and should not undermine investment and innovation. We should pursue the minimum regulation necessary to achieve the best deal for the consumer. Additional and existing regulation should be reviewed and justified.

1.6 We do this by:

• reviews of market segments to assess the degree of effective competition, and what level and type of regulation is appropriate;

• explicit assessments of the advantages and disadvantages of policy options;

• performance measures which focus on the extent of effective competition in markets within our scope; and

• transparent and robust decision making, with high quality evidence.

1.7 Regular market reviews to ensure appropriate regulation is reflected in the EU Framework Directive which will come into force in 2002.

1.8 In terms of performance measurement Oftel has:

• set service delivery agreement targets, agreed with the Treasury and published in November 2000. These are summarised in table 1 below, and performance against these targets will be published in Oftel's 2001 Annual Report;

• prepared a monitoring log of key decisions taken (see Appendix 1 for log for April-Nov 2001); and

• developed international benchmarking of prices paid for baskets of telecoms services in different countries (reports published six-monthly).

Table 1 – Service Delivery agreement targets

Lessons learnt

1.9 We have learned:

• as competition has intensified, and technology has increased opportunities for new services, there has been increased demand for regulatory action. For example, rival operators have requested Oftel to enable access, at regulated prices, to BT's networks. This goes beyond traditional PSTN interconnection to requests for access to, and interconnection with, eg ATM/IP networks as well;

• increased demand for faster decision making at the same time as demands for 'due process' to be maintained from other players;

• the difficulty of measuring the effectiveness of competition in different market segments, against a background of rapid change;

• many stakeholders are opposed to lightening or lifting regulation;

• self and co-regulation may be complex to implement; and

• use of Competition Act powers can be expanded to deal with anti-competitive practice.

External developments impacting on strategy

1.10 There have been some major changes in the external environment:

• large reductions in share prices, lower debt ratings, and market sentiment have reduced availability of funds for investment particularly for newer entrants which has impacted on the development of competition;

• increasing focus on, and demands for broadband services;

• a new EU framework will provide the basis of most of Oftel’s regulatory powers and functions from 2002 onwards, working closely with other European regulators on its implementation; and

• the Communications White Paper set out proposals for new converged regulation and the creation of OFCOM as the converged regulator.

1.11 Oftel’s strategy has been robust in the face of those changes; but we now need to update it. Strategy issues in relation to the new EU framework, broadband and OFCOM are considered in Chapter 2.

Improving the applicability of strategy principles

1.12 Oftel has identified regulatory principles to provide clarity and predictability. There need to be updated (see Table 2 below).

Table 2: Improving applicability of strategy principles

*due to be published January-March 2002 (see below).

Improving strategy implementation processes

1.13 Three key processes also need to be updated. These are set out in below.

1.14 First, in assessing policy options, Oftel will have an approach that meets Government's Regulatory Impact Assessment (RIA) and consumer groups' Customer Impact Assessment (CIA) requirements while recognising that we are an independent sectoral regulator with EU Directive requirements, and specific statutory duties.

1.15 Second, market analyses (incorporating existing effective competition review) will:

• incorporate lessons learnt
• meet the requirements of new EU legislation
• reconcile competition cases and market analyses timetables.

1.16 Third, Oftel will develop a non-market reviews (NMRs) methodology to

• better identify consumer interest criteria which can trigger regulatory involvement, and the principles which should shape proportionate intervention. These will include areas such as USO, data protection, ombudsman scheme, numbering. (see appendix 3)

Chapter 2

Strategy development

Introduction

2.1 Oftel's needs to ensure its direction is clear when addressing new challenges. Key among these will be:

• aligning Oftel's strategy with EU Directives;
• broadband regulatory strategy; and
• looking ahead to OFCOM.

Aligning Oftel's strategy with new EU Directives

2.2 The strategy needs to align with the framework in the five new EU Directives on regulation of electronic communications (Framework, Access and Interconnection, Authorisation, Universal Service and Communications Data Protection Directives) (see Appendix 2).

2.3 The Directives take effect early in 2002 and there is 15 months in which to transpose the directives into national law. Oftel will work with other regulators and the Commission to ensure consistency. There will be changes needed in our internal processes. Market analyses will be obligatory before regulatory rules are imposed under the new Directives, and our programme of analyses begins in 2002/3.

2.4 There are two related projects in relation to the EU Directives: to oversee the implementation programme of work; and to co-ordinate the market analyses.

2.5 The Framework Directive sets three objectives for regulatory authorities:

• promoting competition in networks and services;
• contributing to the development of the internal market; and
• promoting the interests of European Citizens.

2.6 For 2002/3, these objectives will be our guiding objectives, with the existing objectives being used at the operational level.

Table 3 – Alignment of Oftel objectives with overall EU objectives

2.7 Oftel currently supports the internal market by, for example, tackling barriers to entry. We will work most closely with NRAs and the Commission to ensure consistent application.

Broadband regulatory strategy

2.8 Our strategy needs to be able to provide a coherent basis for new areas of work. A key issue remains appropriate regulation of broadband networks and services to meet emerging consumer demands, and a number of Oftel's

projects and programmes for 2002/3 will relate to this as described in chapter 3. A fuller description of Oftel’s regulatory strategy for broadband can be found on Oftel’s website.

2.9 Oftel’s aim is to enable consumers’ demands for broadband to be met. Large businesses, SMEs and residential consumers all have different needs. Different supply routes and technologies are likely to be needed. Regulation sets the framework. The outcomes will be determined by the actions of commercial firms meeting the demands of their customers.

2.10 Our focus is to meet demands through effective competition at all levels in the provision of broadband services: in infrastructure (ie in access, the middle mile and backbone networks) and in services provided over networks.

2.11 It is vital in developing markets which require large investment that effective competition is promoted through appropriate regulation ie the minimum regulation required to deliver outputs. We must balance incentives to invest and innovate with prevention of excessive pricing.

2.12 For broadband, we will use the generic rules to assess the case for appropriate regulatory action:

1. appropriate market definition in accordance with competition law. Market definitions need to be consistent across all cases dealing with broadband, and reviewed from time to time in the light of market developments;
2. market power – analysing who has market power in the defined market(s), and only taking formal regulatory action if the operator has market power. Again, regular reviews are necessary;
3. regulation should only be applied to the extent necessary to deliver effective competition; and
4. appropriate terms and conditions – regulation should be proportionate to the problem identified so that terms and conditions, including wholesale prices, are set to encourage sustainable competition.

2.13 Oftel has:

• intervened to impose appropriate terms and conditions in areas such as local loop unbundling, wholesale DSL and partial private circuits where market power exists with the extent of regulation imposed tailored to the state of the market; and
• not intervened in other areas such as cable modems, 3G, broadband fixed wireless access where operators do not have market power.

2.14 The future course of consumer demand for broadband is unclear. Technologies to deliver broadband services are still developing. The future development of the broadband market(s) is uncertain. In such circumstances the regulator needs to be especially sensitive to the impact of intervention on market developments and investment. Our strategy provides a framework to ensure that the impact of regulatory decisions is taken fully into account. This applies equally to our work to prevent anti-competitive behaviour. This will ensure a coherent and predictable approach to regulatory action.

2.15 Oftel will also work with Government departments, to help increase consumer awareness of broadband services. We will work with the Small Business Task Force to provide information; publish bi-monthly briefings on availability and take-up of broadband.

2.16 The regulatory framework should be coherent and predictable. We will continue to monitor availability of broadband services. We will contribute delivering the recommendations of the Broadband Stakeholders Group.

2.17 We will support this work with an extensive programme of data gathering and market analysis.

Looking ahead to OFCOM: key policy issues

2.18 In 2002/3 we will contribute to developing thinking for OFCOM. The combined regulator will enable ‘joined up’ decision making. For example in spectrum trading or in the issue of access to networks for service providers, in particular the interaction between competitive converging markets and requirements for specific types of content to be available to all.

2.19 We shall develop ever closer joint working with our fellow regulators to help develop a consistent, consumer-focused basis for regulation under OFCOM.

Chapter 3

Proposed projects and programmes for 2002/03

Introduction

3.1 The projects and programmes for 2002/03 are described in this chapter. Table 4 lists the projects and programmes by quarter (beginning April-June).

3.2 Any organisation or consumer who wants to discuss a project or programmes should contact the named project or programme manager directly. This applies to

• suggestions as to the appropriate evidence base including market research;
• discussions of policy options; and
• suggestions on ways of conducting the project.

3.3 There are several projects looking at Broadband issues. The relevant projects have been identified below. They are:

• broadband regulatory strategy (A2);
• Partial Private Circuits (A7);
• access to broadband services (A9);
• wholesale market for umetered Internet access (via FRIACO) (A10); and
• Internet and e-commerce (A15).

Stages of work

3.4 The planned work against objectives and type of activity reflects our focus in each subject area in 200/03. Projects and programmes will contain elements that relate to other objectives and activities.

3.5 Projects are likely to have the sequence of review – implementation – monitoring. The timescale will depend on the scale and complexity of the issue.

3.6 Oftel is committed to monitoring and evaluating its policies to see whether they are achieving the policy objective initially set. This will be on the basis of both pro-active monitoring and response to specific complaints.

3.7 The review cycle for market segments fits with this approach, and the timetable for specific reviews is being revised as part of the work in implementing the new EU framework .

3.8 Where a review, concludes no specific regulatory intervention is necessary, then the cycle of review – implementation – monitoring will end.

Stakeholder involvement

3.9 The scope for stakeholder involvement will vary by subject area. Stakeholders can participate by providing evidence of competition, and comment on which forms of regulatory intervention may be appropriate. For implementation activities, stakeholders may comment on operational details of how a policy is to work in practice. For monitoring activities, stakeholders may be involved eg as an end user in assessing comparative information produced by telcos. For all three stages of review, implementation and monitoring, Oftel will continue to ensure that progress towards the deadlines and outcomes set is maintained at an acceptable pace.

3.10 For the projects and programmes set out in Table 4 below, stakeholders are invited in to indicate where they would like to be involved.

Advisory Committees on Telecommunications and consumer experts

3.11 The Telecommunications Act 1984 establishes a number of committees (the ACTs) to give advice to the Director General, to represent the interests of consumers, and to give emphasis to especially those with least power. The Acts feed in suggestions to Oftel project managers to help Oftel focus on consumer concerns.

3.12 The ACTs respond to Oftel consultations, hold public meetings, meet the Director General and his senior staff, host seminars, participate in Oftel/industry working groups, liaise with other consumer organisations, and publish their views via an independent web site (www.acts.org.uk). They are supported by secretariats in Cardiff, Belfast and Edinburgh, and a small unit within Oftel (see project C8).

3.13 The ACTs are independent of Oftel. Their annual objectives and work plans are therefore not incorporated in Oftel’s Management Plan but are consulted on and published separately. For information please contact the ACT Secretariat on:

e-mail: flora.pieris@oftel.gov.uk tel: 020 7634 5301.

Table 4: Proposed projects and programmes for 2002/03 – summary table

Business support

F1) Human resources

F2) Learning and development programme

F3) Budget management programme

F4) Knowledge management (internal communications)

F5) Electronic records management system

F6) IS and IT

F7) Communicating Oftel's work to external audiences

F8) Research and information

List of proposed projects and programmes for 2002/03

Effective competition – benefiting consumers

Reviews

A1 EU market review programme Please see amendment below

Programme Manager:

Elaine Axby (tel: 020 7634 8915, e-mail: elaine.axby@oftel.gov.uk

Project Manager (strategy and markets):

Nic Green (tel: 020 7634 8891, e-mail: nic.green@oftel.gov.uk)

Project Managers for each individual review to be determined – see also E7

Objective: To ensure that Oftel plays its full part, achieves the right competitive environment for the development of broadband services; and to ensure that the effective competition reviews required by new EU Directives are carried to meet Oftel’s objectives and timetable.

• Finalise and publish Oftel’s market analysis review guidelines, once final EU Commission guidelines are available (Q1); and

• monitor and co-ordinate the markets to be reviewed against a prioritised list (Q1 to Q4)

Please note amendment 30 Jan 2002

Objective: To ensure that the effective competition reviews required when new EU Directives come into force are carried out in a timely and efficient manner. Provide on-going assistance to project managers to ensure that Oftel strategy is applied consistently across reviews and that individual reviews are carried out in an efficient manner, identifying synergies across reviews as appropriate

· work with project managers to identify resources and develop realistic workplans for the reviews
· ensure individual project managers are fully briefed on the approach and strategy
· track progress on individual reviews and work with project managers to resolve resource conflicts and gain benefit from synergies across projects
· work with project managers both formally and informally to ensure that strategy is applied consistently.

A2 Broadband regulatory strategy (see also projects A7, A9, A10, A15)

Programme Director: Jim Niblett (tel: 020 7634 8780 e-mail: jim.niblett@oftel.gov.uk)

Programme Manager:

Ilsa Godlovitch (tel: 020 7634 8721, e-mail: ilsa.godlovitch@oftel.gov.uk)

Other contacts:

Trevor Wood (tel: 020 7634 8854, e-mail: trevor.wood@oftel.gov.uk)

Neil Buckley (tel:020 7634, e-mail: neil.buckley@oftel.gov.uk)

Objective: to develop and communicate Oftel’s strategy for the promotion of competition in broadband access and services; and to ensure a joined-up approach across Oftel to broadband investigations and policy development.

• Ensure implementation of relevant recommendations from Broadband Stakeholder Group (Q1-Q3);

• monitor market and regulatory developments in the UK and elsewhere and assess their regulatory and compliance implications (Q1-Q4); and

• maintain contact with relevant devolved administrations and government departments in relation to their plans for roll-out of Internet access (Q1- Q4).

A3 Competition in mobile markets

Programme Manager:

Elaine Axby (tel: 020 7634 8915, e-mail: elaine.axby@oftel.gov.uk

Other contacts: TBA

Objective: To ensure effective progress towards the development of competition in mobile markets.

• Continue implementation of measures emerging from Oftel’s review of mobile market published in September 2001;

• monitor market developments, including pricing and profitability and the development of third party access to networks for new services on 2G and 3G networks;

• continue to work with stakeholders to improve quality of information available to consumers and to reduce barriers to switching; and

• review mobile market competitiveness, including calls to mobile phones in line with new EU Directives.

A4 Access to the radio spectrum

Project Manager:

Roberto Ercole (tel: 020 7634 8905, e-mail: roberto.ercole@oftel.gov.uk)

Other contact: Helen Hicks (tel: 020 7634 5316, e-mail: helen.hicks@oftel.gov.uk)

Objective: To work with the Radiocommunications Agency (RA) and the Department of Trade and Industry (DTI) policies to ensure that spectrum allocation policy and spectrum pricing promotes the efficient use of the radio spectrum; and to ensure spectrum is used to promote competition in the telecommunications market.

• Contribute to wider debate on the future of sprectrum management in the UK, in particular in relation to Government decisions in relation to the Cave Review of Spectrum policy, implementation of those decisions and the development of spectrum policy and legislation through the Communications Bill;

• participate with RA in consultation over the use of 40 GHz for potential broadband wireless services; and

• contribute to RA consultation and implementation on spectrum trading in the UK.

A5 Competition in broadcasting markets

Project Manager:

Ian Moss (tel: 020 7634 8861, e-mail: ian.moss@oftel.gov.uk)

Other contacts:

Jim Niblett (tel: 020 7634 8780, e-mail: jim.niblett@oftel.gov.uk)

Robert MacDougall (tel: 020 7634 8726 e-mail: robert.macdougall@oftel.gov.uk), Anil Patel (tel: 020 7634 8928, e-mail anil.patel@oftel.gov.uk).

Objective: To develop a policy framework for the promotion of competition in broadcasting markets and to promote understanding of Oftel’s regulatory role eg in regard to conditional access and access control, Electronic Programme Guides (EPGs) and terrestrial transmission. This project will have close links with the ITC and the OFT on the areas of overlapping responsibilities.

• Take necessary implementation and/or monitoring action in the light of the conclusions Oftel reaches in relation to its current review of conditional access charging regime, due to report by March 2002 (Q1-4);

• conduct a market review into Access Control (Q2 to Q4); and

• conduct a review of price controls in Terrestrial Transmission for NTL (Q1 to Q4).

A6 Licence review programme

Project Manager:

Michael Richardson (tel:020 7634 8916, e-mail michael.richardson@oftel.gov.uk)

Other contacts:

Alan Bell (tel: 020 7634 8931, e-mail: alan.bell@oftel.gov.uk)

John Kemp (tel: 020 7634 8855, e-mail: john.kemp@oftel.gov.uk)

Objective: To maintain an overview of the need for, and effectiveness of, licence conditions and other regulatory obligations. While the focus is directed mainly at BT’s obligations, the project may also have implications for the regulation of other operators of fixed networks.

• Co-ordinate the planning and conduct of specific market reviews, including reviews of services which BT is obliged to provide under condition 43 of its licence, to ensure that best use is made of available resources;

• ensure that Oftel reviews the continued need for Orders and Directions and develops processes for reviewing the appropriateness of any further orders;

• review the scope for removing inappropriate regulation during the period leading to the replacement of existing licence conditions by general authorisations; and

• co-ordinate the receipt of deregulatory requests from BT and, potentially, other operators of fixed networks.

A 7 Partial Private Circuits

Project Manager: Maeve Gallagher: tel 020 7634 8777, e-mail maeve.gallagher@oftel.gov.uk)

Other contact:

David Black (tel: 020 7634 8822, e-mail: david.black@oftel.gov.uk)

Objective: To protect business consumers where there is a lack of effective competition in a key segment of the leased lines market.

• Consider position after responses to current consultation (Q1);

• address issues arising from direction(s) (Q1); and

• take the appropriate action through issuing a statement. (Q2)

(see also projects A2, A9, A10, A15).

Implementation

A8 Numbering programme

Programme Manager:

Ray Thornton (tel: 020 7634 8704, e-mail: ray.thornton@oftel.gov.uk)

Project Managers:

Numbering allocations:

Nicholas Good (tel: 020 7634 5333, e-mail: nicholas.good@oftel.gov.uk)

Numbering administration:

Alan Pridmore (tel: 020 7634 8910, e-mail: alan.pridmore@oftel.gov.uk)

Premium rate services:

Warwick Izzard (tel: 020 7634 8981, e-mail warwick.izzard@oftel.gov.uk)

Objective: To enable consumers to benefit from competition and new services by ensuring the provision of adequate numbers and numbering ranges. To promote customer choice in numbers through pre-allocation portability and other methods and the introduction of individual number allocations. To promote the efficient management of numbers by operators through number charging to allocate numbers to telecom companies within 28 days in accordance with agreed policy (Q1-Q4).

• Implementation of web-based approach to processing numbering applications;

• complete review of corporate numbering with the aim of determining demand for corporate numbers; (Q1-Q2);

• input on to industry work on Pre-Allocation Portability and/or to legislative changes for introducing number charging (Q1-Q4);

• appraise possible implementation methods for charging, including those for developing a selection process for identifying coveted numbers and for auctioning highly coveted numbers (Q1-Q4);

• maintaining and developing industry and consumer input into numbering policy via the Numbering Forum and other mechanisms (Q1-Q4);

• to monitor developments in PRS market in particular Higher Rate PRS and Pay-for-Product, monitor any trial re-introduction of Chatlines (Q1-Q4).

A9 Access to broadband services (including local loop unbundling)

(see also projects A2, A7, A10 & A15)

Programme Manager:

Jim Niblett: (tel: 020 7634 8780, e-mail: jim.niblett@oftel.gov.uk)

Other contacts:

LLU: Trevor Wood (tel: 020 7634 8850, e-mail: trevor.wood@oftel.gov.uk)

LLU: John Russell (tel: 020 7634 8830, e-mail: john.russell@oftel.gov.uk)

ADSL: Alistair Bridge (tel: 020 7634 8782, e-mail: alistair.bridge@oftel.gov.uk)

ADSL: Naaz Rashid (tel: 020 7634 8849, e-mail: naaz.rashid@oftel.gov.uk)

Objective: Ensure a coherent regulatory approach to the achievement of effective competition in broadband services. To ensure local loop unbundling (LLU) is implemented in accordance with the EC Regulation on LLU and BT’s licence. To ensure BT rolls out its own Digital Subscriber Line (DSL) products in accordance with its legal obligations.

• To monitor BT’s own ADSL rollout to ensure BT is fully compliant with its legal obligations (Q1 and Q4);

• to ensure that BT’s Operational Support System is used efficiently to order all LLU services (Q1); and

• to consider the prospects for effective competition in very high bandwidth services and formulate appropriate regulatory solutions. (Q2)

A10 Wholesale market for unmetered Internet access – Flat Rate Internet Access Call Origination (FRIACO)

(see also projects A2, A7, A9 & A15)

Project Manager:

John Kemp (tel: 020 7634 8885, e-mail: john.kemp@oftel.gov.uk)

Other contacts:

Brian Malone (tel: 020 7634 8925, e-mail: brian.malone@oftel.gov.uk)

Geoff Brighton (tel: 020 7634 5349, e-mail: geoff.brighton@oftel.gov.uk)

Justin Moore (tel: 020 7634 8859, e-mail: justin.moore@oftel.gov.uk)

Objective: To ensure that BT complies with Oftel’s Directions in relation to FRIACO at BT’s local and regional exchanges, and to ensure that future arrangements for Internet traffic are robust and avoid congestion problems, including by facilitating progress on Internet Protocol (IP) interconnection for calls to Internet services. Key aspects:

• Oftel to ensure arrangements are developed so BT can supply FRIACO to other operators without requiring rearrangement of other operators' traffic using enforcement action if necessary including resolution of pricing, ordering, delivery, ‘stranded assets’ and ‘overflow’ issues (Q1-Q3); and

• IP interconnection – Oftel to facilitate agreement for IP interconnection between operators and BT (on a formal basis if necessary) (Q1-Q2).

A11 Directory enquiries implementation

Project Manager:

Caroline Wallace (tel: 020 7634 8917, e-mail: caroline.wallace@oftel.gov.uk)

Other contact:

Alex Campbell (tel: 020 7634 8970, e-mail: alex.campbell@oftel.gov.uk)

Objective: To assist the Industry in the implementation of the new arrangements for Directory Enquiries as set out in Oftel’s September 2001 Statement.

• To ensure that the Working Group addresses and resolves key issues relating to the new DQ arrangements (eg timetable for implementation, billing arrangements, number allocation processes, informing consumers) (Q1-Q4);

• where necessary and possible, to use Oftel’s powers to resolve any outstanding issues (Q1-Q4);

• to ensure that Oftel issues DQ numbers in accordance with the agreed processes (Q1-Q2); and

• to ensure successful launch of new DQ arrangements within industry-agreed time scales (Q4)

A12 Carrier pre-selection (CPS)

Project Manager:

Caroline Wallace (tel: 020 7634 8917 e-mail: caroline.wallace@oftel.gov.uk)

Other contact:

Alex Campbell (tel: 020 7634 8970, e-mail: alex.campbell@oftel.gov.uk)

Objective: To ensure that policy and compliance issues arising from the implementation of permanent CPS are resolved.

• To facilitate Industry agreement and implementation of improvements to inter-operator CPS processes (Q1-Q4);

• review charges previously determined if necessary, in the light of process changes, industry data or changes in market conditions (Q1-Q4);

• resolve (through Compliance Directorate) consumer and operator disputes arising from permanent CPS (Q1-Q4); and

• to ensure the views of consumer representatives are taken into account within the CPS Industry Groups (Q1-Q4).

Monitoring

A13 Number portability

Project Manager:

Warwick Izzard (tel: 020 7634 8981, e-mail warwick.izzard@oftel.gov.uk)

Other contact:

Steve Burniston (tel: 020 7634 5361, e-mail steve.burniston@oftel.gov.uk)

Objective: To promote effective and sustainable competition in the fixed and mobile markets by ensuring that customers can retain their number(s) (if they wish to do so) when switching between providers of fixed or mobile services.

• Monitor consumer experiences of number portability through periodic research. (Q1- Q4) – results published twice yearly as part of quarterly market research programme;

• to monitor technical developments in the routing of calls to ported numbers and consider related matters such as economic signals (Q1-Q4); and

• develop/implement European legislation concerning number portability within the context of the Communications Bill (Q1-Q4).

A14 Network interoperability programme

Project Manager:

Bill Hawkins(tel: 020 7634 8807, e-mail: bill.hawkins@oftel.gov.uk)
Other contact:

Roy Davies (tel: 020 7634 8906, e-mail: roy.davies@oftel.gov.uk)

Objective: To ensure that interoperability is effectively managed at network and customer interfaces, on the basis of co-regulation with the industry through the Network Interoperability Consultative Committee (NICC). To support the harmonisation of UK interface and interconnection standards. To support the work of various focus groups including the Operators Policy Forum.

• To provide support and regulatory advice to the industry to ensure the satisfactory resolution of interoperability issues (Q1-Q4);

• to hold quarterly meetings with the NICC and to ensure that their work programme outputs are consistent with Oftel’s policy framework and strategy (Q1-Q4); and

• to support on request from other Government departments the Government Telephone Priority Service initiative which ensures priority is given to the emergency services in case of network problems (Q1-Q4).

A15 Internet and e-commerce

(see also projects A2, A7, A9, A10)

Programme Manager:

Elaine Axby (tel: 020 7634 8915, e-mail: elaine.axby@oftel.gov.uk

Project Managers:

Lucy Rhodes (tel: 020 7634 8836, e-mail: lucy.rhodes@oftel.gov.uk)

Justin Moore (tel: 020 7634 8859, e-mail: justin.moore@oftel.gov.uk)

Objective: To ensure that the UK regulatory framework is appropriate to encourage the development of the Internet, thereby helping the UK become a world leader in e-commerce.

• Continue to monitor developments in Internet and e-commerce adoption and usage to ensure that the regulatory regime remains appropriate (Q1-Q4);

• contribute as appropriate to the development and implementation of Government’s Internet and e-commerce strategy and to action by national, regional and local authorities in relation to Internet access (Q1-Q4);

• review emerging services such as enhanced multi-media services, messaging and voice over IP to assess their impact on the market and whether they necessitate any changes to the regulatory regime (Q1); and

• assess the need for improved consumer information on access to the Internet and e-commerce and propose self and co-regulatory actions as appropriate (Q1).

Well informed consumers

Implementation

B1 Raising Consumer Awareness

Programme Manager:

Chris Rowsell (tel: 020 7634 8890, e-mail: chris.rowsell@oftel.gov.uk)

Other contacts:

Chris Smithers (tel: 020 7634 8876, e-mail: chris.smithers@oftel.gov.uk)

Objective: To co-ordinate and optimise Oftel’s work in areas of consumer information including direct Oftel outputs and the encouragement of information from other sources.

• To monitor the impact of existing consumer information initiatives to ensure that consumer demands for information are being met (Q1);

• to identify the information consumers need by researching their awareness of their rights and opportunities (Q3-4);

• to co-ordinate and optimise existing consumer information outputs to ensure their maximum effectiveness. To encourage the production – by Oftel or the industry – of consumer information if research identifies demand (Q1-4); and

• to continue media initiatives to raise consumers’ awareness of rights and opportunities (Q1-4).

B2 Informing consumers and their advisers

Project Manager:

Ritu Manhas (tel: 020 7634 5309, e-mail: ritu.manhas@oftel.gov.uk)

Other contacts:

Chris Smithers (tel: 020 7634 8876, e-mail: chris.smithers@oftel.gov.uk)

Objective: To improve the handling of consumer complaints and inquiries by providing consumers and advisory bodies such as Citizens Advice Bureaux, Trading Standards offices and charity organisations with accurate, timely information.

• Continue to feed into the DTI initiative on Consumer Support Networks;

• ensure relevance and timely updating of Oftel’s consumer guides, and continue to identify telecoms issues where new consumer guides would be useful (Q1); and

• monitor accreditation scheme for websites providing tariff information for residential consumers (Q1).

B3 Comparable Performance Indicators (CPIs)

Programme Manager:

Chris Rowsell (tel: 020 7634 8890, e-mail: chris.rowsell@oftel.gov.uk)

Other contacts:

Chris Smithers (tel: 020 7634 8876, e-mail: chris.smithers@oftel.gov.uk)

Objective: To help customers to make well-informed buying decisions by ensuring the availability of information on the quality of service of fixed and mobile telephony companies. To improve the availability, visibility and accessibility of this information by working with the industry and consumer groups on a self-regulatory basis.

• To support the industry in its assessment of customer demands for information and its presentation. To encourage the establishment of an interactive website for the fixed CPI initiative. (Q1-2);

• encourage the regular publication of comparable mobile quality of service surveys. Encourage the expansion of these surveys to cover issues such as mobile text messages and customer service (Q1 and Q3); and

• to increase customers’ awareness of both the fixed and mobile quality of service information (Q1 and Q3).

Monitoring

B4 Tariff Transparency

Programme Manager:

Chris Rowsell (tel: 020 7634 8890, e-mail: chris.rowsell@oftel.gov.uk)

Other contacts:

Chris Smithers (tel: 020 7634 8876, e-mail: chris.smithers@oftel.gov.uk)

Objective: To ensure customers have access to clear information on tariffs via a range of services, such as price comparison websites. To ensure that providers of price comparison services are able to access the necessary information.

• To raise awareness of the availability of price comparison services and increase consumer confidence in such services (Q1-4);

• encourage the development by commercial third parties of telecoms price comparison services by encouraging access to the relevant tariff information (Q1-4); and

• to review the future requirements for itemised billing in the light of developments such as unmetered services and to produce guidelines for the industry (Q1).

Adequately protected consumers

Reviews

C1 Retail price control

Project Manager:

Peter Culham (tel: 020 7634 8935, e-mail: peter.culham@oftel.gov.uk)

Other contact:

Alan Pridmore (tel: 020 7634 8910, e-mail: alan.pridmore@oftel.gov.uk)

Objective: To protect consumers where competition is not yet effective or in prospect through the implementation, where appropriate, of revised price controls for retail services from 2003, ensuring consistency with outcomes of the price control market review.

• Publish Statement setting out conclusions (Q1);

• make licence modifications if appropriate (Q2); and

• ensure implementation of other policy conclusions from Statement as appropriate (Q2-3).

C2 Consumer Codes of Practice

Programme Manager:

Chris Rowsell (tel: 020 7634 8890, e-mail: chris.rowsell@oftel.gov.uk)

Other contacts:

Chris Smithers (tel: 020 7634 8876, e-mail: chris.smithers@oftel.gov.uk)

Objective: To ensure the production of consumer codes of practice on service delivery issues in line with the government’s proposals in the White Paper on Communications.

• Through discussion with consumer groups and the industry to establish the areas in which codes of practice are needed. (Q1);

• to facilitate the production of the codes on a self- or co-regulatory basis by encouraging industry and consumer working groups. (Q1-3); and

• to establish a procedure for approving the codes and monitoring their implementation (Q4).

C3 Mobile termination charges

Project Manager:

Vince Affleck (tel:020 7634 8819, e-mail: vincent.affleck@oftel.gov.uk)

Other contact

Selena Bevis (tel:020 7634 8844, e-mail: selena.bevis@oftel.gov.uk

Objective : To protect consumers through the implementation of regulatory controls on the charges for terminating calls on mobile networks.

• To place the necessary evidence before the Competition Commission in relation to the inquiry referred by Oftel into mobile termination charges (Q1);

• to implement the findings of the Competition Commission as appropriate (Q2 and ongoing); and

• to ensure compliance with obligations which are imposed for mobile termination charges (Q1-4).

Implementation

C4 Universal service obligation (USO)

Project Manager:

Alan Pridmore (tel: 020 7634 8910, e-mail: alan.pridmore@oftel.gov.uk)

Other contact:

Rosalind Stevens-Strohmann (tel: 020 7634 8743, e-mail: rosalind.stevens-strohmann@oftel.gov.uk)

Public payphones:

Nigel Humberston (tel: 020 7634 8824, e-mail: nigel.humberston@oftel.gov.uk)

Objective: To ensure all consumers have access to those telecoms services which are: used by the majority and which are essential to full social and economic inclusion; made available to everybody upon reasonable request in an appropriate fashion and at an affordable price.

• Monitor effectiveness of BT's USO Schemes especially monitoring the impact of In contact Plus and ensuring BT take any necessary action to ensure its success (Q 1-4);

• review costs/benefits as appropriate in the light of conclusions from Retail Market Review (Q2-4);

• review, and consult on as appropriate, USO policy in the light of European Directive on Universal Service and User Rights (Q1-3);

• public payphones: to implement the proposals in the consultation following publication of the Statement and monitor public payphone operator compliance with the Disability Regulations (Q1-Q4); and

• to commission further consumer research into patterns of payphone usage (Q2-Q3).

C5 Consumer Representations

Project Manager:

Bernice Head (tel: 020 7634 8710, e-mail: bernice.head@oftel.gov.uk)

Other contacts:

Alistair Cox (tel: 020 7634 8733, e-mail: alistair.cox@oftel.gov.uk)

Michelle Champion (tel: 020 7634 8712, e-mail: michelle.champion@oftel gov.uk)

.

Objective: To deal effectively with consumer complaints and to encourage the industry to deal satisfactorily with consumer complaints in the first instance.

• Encourage the removal by telecoms companies of the root causes of frequently experienced consumer problems (Q1-Q4);

• to develop the Oftel Internet site to give information useful to consumers to allow them to be more effective purchasers. Ensure that frequently asked questions are fully updated so the site can be promoted as the first step for complaints. (Q1-Q4);

• publish summaries of complaints received every six months (Q1 and Q3); and

• conduct a consumer satisfaction survey on the handling of complaints (Q3).

C6 Metering and billing approval scheme

Project Manager:

Bill Hawkins (tel: 020 7634 8807, e-mail: bill.hawkins@oftel.gov.uk)
Other contact:

Roy Davies (tel: 020 7634 8906, e-mail: roy.davies@oftel.gov.uk)

Objective: To enhance consumer confidence in the accuracy of telephone bills and to give wider consumer protection by an effective Oftel Metering and Billing Systems Approval Scheme. This scheme has been extended to all significant operators, made available to major service providers and broadened in scope to include all material elements of bills as appropriate.

• Systematically roll out the scheme to operators and service providers (Q1-Q4);

• monitor the work of the appointed Approval Bodies, establish Approval Body Forum and hold quarterly meetings to review and moderate activities (Q1-Q4);

• publish scheme information as required (Q1-Q4); and

• hold an annual Forum for all parties to review experience (Q4).

C7 Essential requirements

Project Manager:

Caroline Wallace (tel: 020 7634 8917, e-mail: caroline.wallace@oftel.gov.uk)

Other contact:

Keith Bowman (tel: 020 7634 5348, e-mail: keith.bowman@oftel.gov.uk)

Objective: To strengthen the Director General’s ability to meet his obligations in respect of continuation of supply by completing the publication of (a) guidelines on network security and integrity and (b) criteria for restriction of access to the network on the basis of network security and integrity.

• To consider comments received in response to Oftel’s 2001 Consultation on Guidelines on the Essential Requirements for Network Security and Integrity, and on Criteria for Restriction of Access to the Network (Q1); and

• to publish a statement on Oftel’s conclusions in the light of the above consultation, and to thereby formally adopt Guidelines on the Essential Requirements for Network Security and Integrity and Criteria for Restriction of Access to the Network (Q1).

C8 Supporting the Advisory Committees on Telecommunications

Project Manager:

Terry Walker (tel:020 7634 8774, e-mail: terry.walker@oftel.gov.uk)

Other contacts:

David Edwards: (tel:020 7634 8773, e-mail:david.edwards@oftel.gov.uk)

Flora Pieris: (tel:020 7634 5301, e-mail: flora.pieris@oftel.gov.uk)

Objective: To assist the Director General in his duty to promote the consumer interest, by ensuring that the Advisory Committees on Telecommunications (ACTs) are able to provide him with informed advice in accordance with their statutory duty.

• Ensure efficient administrative support for the committees, co-ordination of work programmes, and effective communications between the committees and Oftel (Q1-Q4);

• ensure the committees give high quality advice to Oftel by providing them with effective advice, briefings, and training (Q1-Q4);

• ensure the committees' advice reflects consumer interests by commissioning consumer research, managing the ACT web site and publications, and ensuring the committees consult and liaise with other consumer organisations (Q1-Q4); and

• provide the Director General with annual reports on ACTs' activities (Q4).

C9 Implementation of Independent Telecommunications Ombudsman Scheme

Project Manager:

Rosalind Stevens-Strohmann (tel: 020 7634 8743, e-mail: rosalind.stevens-strohmann@oftel.gov.uk)

Other contacts:

Chris Rowsell (tel: 020 7634 8890, e-mail: chris.rowsell@oftel.gov.uk);

Chris Handley (tel: 020 7634 8863, e-mail chris.handley@oftel.gov.uk)

Objective: To ensure that the UK complies with obligations under the RVTD and future European legislation on dispute resolution, in particular by continuing to provide assistance to the Implementation Working Group. The aim is to ensure the successful implementation of an independent industry-funded Ombudsman scheme, free of charge to consumers, which satisfies the criteria of independence, effectiveness, fairness, and public accountability.

• Ombudsman appoints staff; finalises Terms of Reference and Memoranda of Understanding with relevant organisations (Q1);

• Ombudsman premises, fixtures and fittings in place and staff training completed (Q1);

• launch of Scheme (Q1);

• liaison with independent industry Ombudsman as appropriate (Q2-Q4); and

• continue to work with the DTI on development of appropriate legislation in the Communications Bill (Q1-4).

Monitoring

C10 Input to other consumer protection legislation

contacts:

NI Equality scheme:

Nigel Humberston (tel:020 7634 8824, e-mail: nigel.humberston@oftel.gov.uk)

Welsh language scheme:

Terry Walker (tel:020 7634 8774, e-mail: terry.walker@oftel.gov.uk)

Objective: To ensure Oftel meets its statutory obligations in relation to non telecoms specific legislation concerning consumer protection. Specifically to ensure that Oftel’s Equality Scheme is approved by the Northern Ireland Equality Commission and that Oftel meets its statutory obligations under the Welsh language scheme.

• Consult on screening processes and consider responses for Northern Ireland equality scheme (Q1-Q2);

• monitor ongoing compliance with requirements (Q2-Q4) & submit annual equality report to the NI Equality Commission (Q4); and

• to ensure effective implementation and monitoring of the Welsh Language Scheme (Q1 to Q4) & to produce a year-end report on the implementation of the Scheme (Q4).

C11 Data protection in telecoms

Project Manager:

Nigel Humberston (tel:020 7634 8824, e-mail: nigel.humberston@oftel.gov.uk)

Other contacts:

Frank Phillips (tel: 020 7634 8871, e-mail: frank.phillips@oftel.gov.uk)

Objective: To ensure compliance with the requirements of relevant data protection legislation and to input in to the EC review of the Communications Data Protection Directive. To consider with the Information Commissioner the wider implications of the revised Directive on broadcasting.

• Ongoing monitoring of the performance of the Telephone and Fax Preference services. (Q1-Q4);

• ongoing Provision of technical advice to Information Commissioner. (Q1-Q4); and

• input into implementation of revised Communications Data Protection Directive including preparation for any structural changes required to current regime. (Q1-Q4).

C12 Calling line identification

Project Manager:

Frank Phillips (tel: 020 7634 8871, e-mail: frank.phillips@oftel.gov.uk)

Other contact:

Philip Cobb (tel: 020 7634 8913, e-mail: philip.cobb@oftel.gov.uk)

Objective: To develop and maintain regulatory arrangements for CLI services across differing technologies that (i) achieve a balance between the benefits they offer to business and residential users and the protection of those users’ privacy rights; and (ii) are sufficiently flexible not to stifle the service’s continuing commercial development.

• Adoption of generic Code of Practice and development of technology-specific annexes to the Code (Q1);

• revisit regulatory arrangements to take account of revised EU framework (eg erosion of boundary between network operators and service providers, new (CDPD) Communication Data Protection Directive legislation) (Q2-3); and

• consider the possibility of developing a consistent policy on the treatment of CLI information for calls that break out of the public network in the course of their transmission before being delivered (Q1-2).

Prevention of anti competitive practice

Reviews

D1 Developments in competition policy programme

Programme Manager:

John Kemp (tel: 020 7634 8885, e-mail: john.kemp@oftel.gov.uk)

Other contacts:

Alistair Bridge (tel: 020 7634 8782, e-mail: alistair.bridge@oftel.gov.uk)

David Blocksidge (tel: 020 7634 8995, e-mail: david blocksidge@oftel.gov.uk)

Objective: To achieve more effective prevention of anti-competitive practices by ensuring that Oftel contributes effectively to the development and implementation of competition policy in the UK and EC.

• Consider any policy issues arising from the operation of the Competition Act (Q1-Q4);

• contribute to the objectives of the Concurrency Working Party, a body consisting of representatives of the OFT and the regulators with concurrent powers under the Competition Act (Q1-Q4); and

• contribute to the implementation of the EC Directives in line with Competition rules (Q3-Q4).

D2 Financial information systems programme

Project Manager:

Gavin Greenfield (tel: 020 7634 8734, e-mail: gavin.greenfield@oftel.gov.uk)

Other contact:

Dave Robinson (tel: 020 7634 8933, e-mail: dave.robinson@oftel.gov.uk)

Objective: To ensure that Oftel has access to relevant, accurate and timely financial and other information from operators designated as having significant market power, market influence or equivalent, to deal effectively with competition and regulatory issues.

• Propose and implement changes to regulatory financial reporting arrangements necessary to comply with regulatory obligations eg local loop unbundling, partial private circuits, carrier pre-selection (Q1-Q4);

• monitor and evaluate compliance with regulatory financial reporting requirements as set out in operators’ licences (Q1-Q4);

• assess and examine the processes, systems and procedures used by operators in preparing and delivering financial information requested by Oftel as part of regulatory requirements or competition investigations (Q1-Q4);

• promote and review developments and enhancements to the accounting methodologies used by operators in the above context (Q1- Q4); and

• review regulatory accounting regime in light of new EC Directives (Q1-Q3).

Implementation

D3 Compliance Casework Programme

Programme Manager:

John Kemp (tel: 020 7634 8885, e-mail: john.kemp@oftel.gov.uk)

Other contacts:

Maeve Gallagher (tel: 020 7634 8777, e-mail: maeve.gallagher@oftel.gov.uk)

Tim Cross (tel: 020 7634 5359, e-mail: tim.cross@oftel.gov.uk)

Alistair Bridge (tel:020 7634 8782, e-mail: alistair.bridge@oftel.gov.uk)

Mergers programme:

Michael Knowles (tel: 020 7634 8706, e-mail: michael.knowles@oftel.gov.uk)

Objective: To prevent anti-competitive practice. To manage casework and to resolve all cases in the minimum possible time. To use the Competition Act wherever appropriate. Cases include: investigation of complaints and own initiative investigations under the Telecommunications Act, Competition Act, and other UK and EU legislation under which the Director General has powers and duties. The programme includes complaints concerning the Internet, broadband, and unfair contract terms; also interconnection disputes and determinations. Mergers programme: Identify significant competition and regulatory issues arising from possible mergers and joint ventures in telecoms and related sectors, and provide timely advice to the competent authorities (OFT, DTI) accordingly.

• To improve performance against casework processing targets, via quality monitoring of case progress and handling (Q1 –Q4);

• to reduce the number of complaints being pursued as a licence breach by considering them under the Competition Act where appropriate (Q1-Q4);

• to provide advice to OFT on request within the framework prescribed by the Fair Trading Act 1973 and the European Merger Control Regulation (ECMR) respectively (Q1-Q4); and

• develop process for meeting the new 4 month deadline coming from the Directives for completion of cases (Q1-Q4).

D4 International controls

Programme Manager :

Vince Affleck (tel :020 7634 8819, e-mail: vincent.affleck@oftel.gov.uk)

Other contact : tba

Objective: To enable the full benefit of market forces for the benefit of consumers by withdrawing from detailed regulation as the international market becomes progressively competitive.

• Monitor accounting rate developments to put pressure on international operators and overseas administrations to reduce accounting rates to cost (Q1-Q4);

• monitor developments in international markets and to seek to reduce obstacles to market entry and facilitate competition (Q1-Q4); and

• represent UK interests in ITU Study Group 3 and other international fora as appropriate. (Q1-4).

D5 Interconnection

Programme Manager:

Vince Affleck (tel: 020 7634 8819, e-mail: vincent.affleck@oftel.gov.uk)

Other contact:

Andrew Walker (tel: 020 7634 8909, e-mail: andrew.walker@oftel.gov.uk)

Objective: To ensure that effective network competition is supported by the effective operation of the UK interconnection regime.

• Monitor compliance by operators with Significant Market Power (SMP) under the Interconnection Directive with their SMP obligations (Q1-Q4);

• deal with requests to resolve interconnection disputes in light of enhanced timetable published by Oftel in November 2001 (Q1-Q4);

• revise procedures to cope with shorter EC timescale for dispute resolution under the proposed Framework Directive (Q1-Q2); and

• maintaining the Annex II list of telcos entitled to cost based interconnection (Q1-Q4).

D6 Retail pricing issues

Programme Manager:

Andrew Walker (tel: 020 7634 8909, e-mail: andrew.walker@oftel.gov.uk)

Other contact:

Keith Loader (tel: 020 7634 8793, e-mail: keith.loader@oftel.gov.uk)

Objective: To analyse competition effects of BT’s pricing proposals (including requests for reduced price publication notification periods and below cost pricing)

• To assess affinity deals and new service trials against licence conditions and Oftel guidelines (Q1-Q4); and

• to scrutinise PTO retail price change notifications and identify changes to be investigated by Oftel (Q1-Q4).

Monitoring

D7 Competition Act strategy project

Project Manager:

Alistair Bridge (tel: 020 7634 8782, e-mail: alistair.bridge@oftel.gov.uk)

Other contact:

Trevor Wood (tel: 020 7634 8850, e-mail: trevor.wood@oftel.gov.uk)

Objective: To achieve effective