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Proposals for implementiong Oftel’s Strategy: 2000/01 Management Plan |
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| April
2000
Foreword from the Director General of Telecommunications Chapter 1 Introduction Chapter 2 Implementing the Strategy – the 2000/01 management plan Chapter 3 Consultation process and responses Appendix 1 Project and programmes organised according to subject Appendix 2 Expenditure Plans 2000-01 Appendix 3 Effective competition reviews Appendix 4 Guidelines for assessing the costs and benefits of regulatory action Appendix 5 Responding to this Statement Foreword from the Director General of Telecommunications The 2000/1 Management Plan sets out the way in which Oftel intends to implement its Strategy which was published in January. Central to the strategy is a move to lighter-touch regulation as competition develops, while continuing to protect and inform consumers where the market cannot do so. The Plan summarises the Strategy and lists the projects and programmes by which the strategy will be implemented, together with the resources to be applied to this work. A draft of this Plan was issued as a consultative document seeking views from consumers, consumer groups, suppliers, and all others with an interest in getting the best deal for consumers. All responses were considered when the Plan was being finalised for publication. The Plan represents a substantial and challenging programme of work designed to deliver modern effective regulation. It is especially important for the interests of consumers that, at a time of huge change in the telecommunications sector, regulation is appropriate and forward looking. This is what Oftel aims to deliver.
DAVID EDMONDS DIRECTOR GENERAL OF TELECOMMUNICATIONS Introduction The Management Plan and the Strategy 1.1 In January 2000 Oftel published a statement of its strategy – Achieving the best deal for consumers (the Strategy). The statement set out the regulatory approach which Oftel is developing as a response to the growth of competition in the UK telecoms market. 1.2 This Management Plan shows how the Strategy will be implemented. It sets out Oftel’s projects and programmes and shows how they are organised and monitored. 1.3 An initial draft of this Management Plan was issued as a consultative document in February 2000. The consultative document was sent to consumer groups, telecoms companies, other regulators and interested parties and was posted on the Oftel web-site. E-mail notification was sent to the 10,000 who have registered with Oftel’s e-mail notification service (information on registration is given in paragraph A5.2 in Appendix 5). The responses which were received have been have been taken into account in preparing this final version of the Plan. A summary of the responses and Oftel’s consideration of them is set out in Chapter Three. The Strategy 1.4 The 'competition plus' Strategy published in January 2000 states Oftel's goal, the objectives it will pursue to achieve this goal and a set of regulatory principles which will help guide the implementation of its Strategy. These key Strategy elements are summarised in paragraphs 1.5 to 1.10 below. 1.5 The following four key factors were central to the development the Management Plan for 2000/1 in the context of Oftel’s Strategy (i) the consumer is central – Oftel’s overriding goal is to enable consumers to get the best deal in terms of quality, choice and value for money. Effective competition is the best way of ensuring this and, where it is secured, regulation can diminish; (ii) over-regulation, especially in a rapidly developing market, can stifle incentives to invest and innovate. Regulation should be imposed only where it is justified and should be appropriate and proportionate to the level of competition in the market; (iii) under-regulation where competition is not yet effective, or where competition, even if effective, does not provide sufficient protection for consumers, can prevent consumers from getting the best possible deal. In these cases Oftel will continue to regulate; and (iv) the process of moving to lighter regulation, where appropriate, is not an 'easy option'. It means fundamental changes to regulatory policies and greater involvement of stakeholders in co-regulatory and self-regulatory initiatives. More monitoring of consumer and market behaviour is needed in advance of decisions, coupled with the application of carefully researched, developed and targeted policy actions where these are needed. 1.6 Oftel’s goal of the best deal for consumers is supported by the four outcome-based objectives described below. These are underpinned by the ten principles of regulation set out in paragraph 1.11 below. 1.7 Effective competition - benefiting consumers The outcome is the benefit of effective competition (ie lower prices, higher quality, and more choice of services for consumers) rather than competition for its own sake. ‘Effective competition’ means that it is sustainable (ie does not depend on sector specific regulation to survive) and that consumers are able to exercise choice effectively. 1.8 Well informed consumers able to take advantage of choice Consumers must have adequate, reliable information so that they are in a position to choose the best combination of services and suppliers. Well informed consumers are a necessary element of an effectively competitive market. 1.9 Adequately protected consumers Where effective competition is not achieved consumers may need protection. Also there are circumstances where even if competition exists, some regulatory action is needed to protect consumers' interests, for example in the provision of universal telecommunications service. 1.10 Prevention of all significant anti-competitive practices Oftel will have a rigorous and vigilant policy of policing anti-competitive behaviour and will use wherever necessary its range of powers under the Competition Act and licence conditions. Principles of Regulation 1.11 A set of principles has been developed for each objective.
Methods for implementing the Strategy 1.12 All proposed policies which will result in additional regulation will have to be carefully considered to ensure that they are justified in terms of Oftel's goal, objectives and principles set out above. 1.13 Oftel will:
These initiatives are summarised below and explained in more detail in Appendices 3 and 4. Assessing Costs and Benefits of Policies 1.14 All proposed regulatory initiatives will be subject to an assessment of the key costs and benefits of the proposed policy to ensure that they are merited. Oftel held a stakeholder workshop in March 2000 which outlines Oftel’s intended approach to assessing costs and benefits. Guidelines on the approach which Oftel will take to Cost Benefit Analysis (CBA) are set out in Appendix 4. All relevant Oftel staff will receive training in applying CBA to their projects and programmes. 1.15 Oftel will use a CBA approach for assessing other existing policies where circumstances merit it. Market and other reviews 1.16 These reviews will focus on the extent of competition and the effectiveness of consumer protection in particular areas of the market. There will be two cycles of reviews – one cycle for markets and one cycle for consumer protection policies – to identify whether, and if so what, regulation is required and to take appropriate action as a result. 1.17 The market segment review process will involve:
1.18 A more detailed description of the steps involved in the effective competition review process is set out in Appendix 3. 1.19 A separate paper setting out the approach which Oftel will take to analysis of the results of market reviews will be issued by this summer. 1.20 Consumer protection policy reviews will be dealt with as part of the process of developing a procedure for identifying the most appropriate type of regulation, as set out in paragraph 1.24 below. Types of regulation 1.21 Oftel is committed to introducing light touch regulation into the telecoms sector and to increasing the involvement of its stakeholders in the regulatory process. The type of regulation that is appropriate different instances needs to be carefully considered in policy development and implementation. Types of regulation are:
1.22 Co-regulation is where the industry players work together with others, including consumer groups and the regulator, to address issues not readily addressed by competitive market forces. In these cases the regulator usually sets the framework for the industry to work within and usually, though not always, has some reserve powers which it could use if the industry initiative fails. 1.23 Self-regulation on the other hand places more responsibility directly with the industry to succeed. These voluntary approaches to regulation have the potential to be more responsive and relevant than more formal legislation based regulation. 1.24 Oftel will issue a consultation document in May 2000, setting out the framework for identifying the most appropriate type of regulation for different circumstances and integrating this process into Oftel’s cost-benefit approach. 1.25 Oftel’s Strategy included a proposal to establish a review process for consumer protection policies and other non-market issues. The review process will be considered as part of the forthcoming consultative document. Implementing the Strategy – the 2000/1 Management Plan 2.1 The 2000/1 Management Plan is the first step in implementing Oftel’s Strategy. Projects and programmes have been reviewed to align then with the outcome-based objectives of the Strategy. For example the projects and programmes dedicated to well informed customers have been increased and project and programme summaries now show exit strategies or market segment review dates. Major issues 2.2 Within the wide range of projects and programmes Oftel will undertake in 2000/1, there are a number of major issues which can usefully be highlighted.
2.3 All of Oftel’s work for 2000/1 will take place against a background of an evolving legislative framework:
Structure of the Management Plan 2.4 The Management Plan sets out projects and programmes under their primary objective under the Strategy, with additional groupings of framework projects and business support programmes. 2.5 A – Effective competition – benefiting consumers These projects involve assessing whether competition is effective and taking appropriate action. The review process, including international benchmarking, will be resource intensive and include external sources. Where competition is not yet effective Oftel will promote competition in the relevant markets, will enable supplier access to networks and will address failures of the market to provide information to consumers. A number of areas require detailed evaluation and assessment (including external, expert input) to ensure policy decisions are appropriately targeted. 2.6 B – Well informed consumers These projects and programmes will provide information for consumers to ensure that they can make the best choices, and include projects which measure levels of customer awareness. 2.7 C – Adequately protected consumers These projects and programmes protect consumer interests. The nature of telecoms means that there are circumstances where regulatory action is needed to protect consumers' interests, for example, by preventing social exclusion which could result from certain groups being unable to get access to key telecoms services. Most consumers are increasingly demanding protection of their interests. 2.8 D – Prevention of significant anti-competitive practice These projects and programmes are to police potentially anti-competitive behaviour and to exercise Oftel’s powers under the Competition Act and licences. An increase in the extent and complexity of compliance investigations required is expected and this is reflected in the additional resources needed by Oftel 2.9 E – Framework projects These are projects to define and shape the overall framework within which regulation works. These include those dealing with the wider international context of regulation, potential changes due to domestic legislation, and the need to develop and publish thinking on strategy. 2.10 F – Business Support Directorate These projects and programmes are focussed on (i) providing the quality resource management, communications and support services necessary for the business objectives; and (ii) working in line with the Government’s overall programme of renewal and reform (the Modernising Government White Paper of March 1999). 2.11 The table below sets out the proposed organisation of the projects/programmes and is followed by project and programme summaries. 2.12 Completion dates are given for the work packages in accordance with the following: Q1: April – June 2000 Q2: July – September 2000 Q3: October – December 2000 Q4: January – March 2001 2.13 A list of projects/programmes organised according to subject is attached at Appendix 1. Oftel 2000/1 Management Plan – list of projects and programmes
Programme and project summaries A Effective competition – benefiting consumers A1 Competition in mobile markets Project Manager:
Elaine Axby (Tel. 020 7634 8915 e-mail: elaine.axby@oftel.gov.uk) Heather Clayton (Tel. 020 7634 8979 e-mail: heather.clayton@oftel.gov.uk) Objective: To ensure effective progress towards Oftel’s goal of securing choice, quality and value for money for the customer by developing appropriate policies to ensure that benefits are delivered through competition wherever possible.
A2 Local loop unbundling Project Manager:
Jim Niblett (Tel. 020 7634 8780 e-mail: jim.niblett@oftel.gov.uk) Objective: To promote competition in the means of delivery of high bandwidth services to consumers by implementing Oftel policy on local loop unbundling.
A3 Access to the Radio Spectrum Project Manager:
Heather Clayton (Tel. 020 7634 8979 e-mail: heather.clayton@oftel.gov.uk) Objective: To ensure that allocations of spectrum promote effective competition; reflect the needs of the telecommunications industry and users; and promote economically efficient use of spectrum through work with the Radiocommunications Agency (RA) and Department of Trade and Industry (DTI).
A4 Principles of access to communications networks Project Manager:
Jim Niblett (Tel. 020 7634 8780 e-mail: jim.niblett@oftel.gov.uk) Michael Richardson (Tel. 020 7634 8916 e-mail: michael.richardson@oftel.gov.uk) Objective: To develop Oftel policy on access to communications networks and to identify the circumstances under which it is appropriate to require operators of communications networks to grant a right of access to third party service providers.
A5 Carrier pre-selection (CPS) implementation Project Manager:
Caroline Wallace (Tel. 020 7634 8917 e-mail: caroline.wallace@oftel.gov.uk) Objective: To make it easier for consumers to use alternative service providers, and therefore to gain the benefits of competition by ensuring that CPS is implemented in the UK as required by the EU Numbering Directive. Implementation is to be in two stages – an interim procedure to be followed by a permanent solution.
A6 Directory Enquiries Project manager:
Nigel Humberston (Tel. 020 7634 8824 e-mail: nigel.humberston@oftel.gov.uk) Objective: to protect customers in the use of their directory information and to facilitate competition in the provision of directory services.
A7 Competition in broadcasting markets Project Manager:
Ian Moss (Tel. 020 7634 8861 e-mail: ian.moss@oftel.gov.uk) Objective: To promote coherent economic regulation of the broadcasting sector by working in co-operation with other members of the Group of Three (ITC, OFT and Oftel) to develop regulatory policy and ensure compliance with Oftel’s statutory responsibilities in respect of broadcasting and related markets.
A8 Internet and e-Commerce Project Manager:
David Simpson (Tel. 020 7634 8865 e-mail: dave.simpson@oftel.gov.uk) Objective: To ensure that the UK regulatory framework is appropriate to encourage the development of the Internet so that the UK can be a world leader in e-commerce.
A9 Network Interoperability Project Manager:
Malcolm Davies (Tel. 020 7634 8906 e-mail: malcolm.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 facilitate and support the harmonisation of UK interface and interconnection standards and to support the work of various focus groups including the Operators Policy Forum.
A10 Providing and facilitating the provision of better market information for stakeholders Project Manager: Kenny Osborne (Tel. 020 7634 8973 e-mail: kenny.osborne@oftel.gov.uk) Other contact: Nick Collins (Tel. 020 7634 8851 e-mail: nicholas.collins@oftel.gov.uk) Objective: To enhance Oftel’s and stakeholders’ knowledge of the telecoms market, and aid evidence-based policy development by managing the collection of accurate and timely information from telecoms operators and service providers on an agreed range of services.
B Well informed consumers B1 Raising customer awareness Project manager: Chris Rowsell (Tel. 020 7634 8890 e-mail: christopher.rowsell@oftel.gov.uk) Other contact: Rosalind Stevens-Strohmann (Tel. 020 7634 8743 e-mail: rosalind.stevens-strohmann@oftel.gov.uk) Objective: To identify existing customer rights and opportunities, research customer awareness of these, and raise awareness using the media and other channels, so that consumers are better able to obtain the benefits of competition and, where necessary, to have recourse to consumer protection.
(Q1-Q4). Publicise issue of premium rate call-barring (Q1)
B2 Research into consumer views Project Manager: Karen Metcalfe (Tel. 020 7634 8918 e-mail: karen.metcalfe@oftel.gov.uk) Other contact: Melanie Smith (Tel. 020 7634 8741 e-mail: melanie.smith@oftel.gov.uk) Objective: To produce focused and relevant project decisions by providing regular and comprehensive information on residential and business consumer behaviour, opinion, and use of telecoms.
B3 Comparable Performance indicators (CPI’s) Project manager: Chris Rowsell (Tel. 020 7634 8890 e-mail: christopher.rowsell@oftel.gov.uk) Other contact: Geoff Delamere (Tel. 020 7634 8745 e-mail: geoffrey.delamere@oftel.gov.uk) Objective: To enable consumers to make better informed purchasing decisions and gain greater benefit from emerging competition by ensuring the improved availability, accessibility and visibility of comparable quality of service information to consumers for both the mobile and fixed telephony markets, by encouraging and facilitating its collection and dissemination by the industry.
B4 Price Comparisons Project Manager: Chris Rowsell (Tel. 020 7634 8890 e-mail: christopher.rowsell@oftel.gov.uk) Other Contact: Kenny Osborne (Tel. 020 7634 8973 e-mail: kenny.osborne@oftel.gov.uk) Objective: To enable consumers to make better informed purchasing decisions and gain greater benefit from emerging competition by improving the transparency of telecoms prices to consumers. To move from a co-regulatory approach towards a self-regulatory approach to achieving effective information for consumers to help them choose.
B5 Small Business Task force Project Manager: Geoff Delamere (Tel. 020 7634 8745 e-mail: geoffrey.delamere@oftel.gov.uk) Other contact: Caroline Lawson (Tel. 020 7634 8883 e-mail: caroline.lawson@oftel.gov.uk) Objective: To encourage well informed small business purchasers of telecoms services to obtain the benefits of competition in telecoms.
B6 Large Business User Panel Project Manager: Alan Pridmore (Tel. 020 7634 8910 e-mail: alan.pridmore@oftel.gov.uk) Other contact: Elizabeth Greenberg (Tel. 020 7634 8758 e-mail: elizabeth.greenberg@oftel.gov.uk) Objective: To enable large business consumers to make better informed purchasing decisions and gain greater benefit from emerging competition by promote awareness in large organisations of the opportunities now available in the competitive marketplace and to expose Oftel's policy makers and telecom companies to the concerns of large telecoms users.
B7 Welsh language scheme Project Manager:
Terry Walker (Tel. 020 7634 8774 e-mail: terence.walker@oftel.gov.uk) Objective: To ensure that Oftel meets its statutory obligation as a public body to provide services for Welsh language speakers.
C Adequately protected consumers C1 Price control review Project Manager:
Peter Culham (Tel. 020 7634 8935 e-mail: peter.culham@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 and network services from 2001.
C2 Universal service Project Manager:
Alan Pridmore (Tel. 020 7634 8910 e-mail: alan.pridmore@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 are made available to everybody upon reasonable request in an appropriate fashion and at an affordable price.
C3 Consumer representation section. Project Manager:
Bernice Head (Tel. 020 7634 8710 e-mail: bernice.head@oftel.gov.uk) Objective: To deal with consumers complaints about their telecoms supplier in a timely and efficient manner and to encourage the industry to deal satisfactorily with consumer complaints in the first instance, so that consumers do not have to have recourse to Oftel.
C4 Terms in Telecom Service Contracts Project Manager: Nicholas Good (Tel. 020 7634 8839 Email: nicholas.good@oftel.gov.uk) Other contact: Julia Bradford (Tel. 020 7634 8838 e-mail: julia.bradford@oftel.gov.uk) Objective: To ensure that consumers are offered fair and reasonable contracts by their telecoms supplier by implementing the Revised Voice Telephony and Unfair Contract Term Regulations and bringing to public’s attention Oftel’s new powers to amend/ remove certain undesirable terms in telecom service contracts.
C5 Metering and Billing Approval Scheme Project Manager:
Malcolm Davies (Tel. 020 7634 8906 e-mail: malcolm.davies@oftel.gov.uk) Objective: To enhance consumer confidence in the accuracy of telephone bills and to give wider consumer protection by extending the Oftel Meter Approval Scheme to all operators and service providers and by broadening the scope to include all major elements of bills as appropriate.
C6 Essential Requirements Project Manager:
Caroline Wallace (Tel. 020 7634 8917 e-mail: caroline.wallace@oftel.gov.uk) Objective: To ensure the provision and maintenance of essential requirements in the fields of security of network operations and maintenance of network integrity in accordance with the Revised Voice Telephony Directive (RVTD).
C7 Advisory Committees on Telecommunications (ACTs) programme Programme Manager:
Terry Walker (Tel. 020 7634 8774 e-mail: terence.walker@oftel.gov.uk) Objective: To better focus Oftel’s consumer protection policies by ensuring that the ACTs’ views are disseminated across Oftel and that Oftel receives effective advice from the ACTs.
C8 Learning society access issues Project Manager:
Neil Buckley (Tel. 020 7634 8880 e-mail: neil.buckley@oftel.gov.uk) Objective: In accordance with government policy to promote wide-spread Internet access, to encourage telecommunications companies to offer new and enhanced tariffs for Internet access for schools, public libraries, FE colleges, learning centres and citizens’ advice bureaux.
C9 Data protection in telecoms Project Manager:
Nigel Humberston (Tel. 020 7634 8824 e-mail: nigel.humberston@oftel.gov.uk) Objective: To ensure that telecoms consumers’ right to privacy is protected through compliance with the requirements of the Telecoms Data Protection Directive.
C10 Regulation of Premium Rate Services (PRS) through the Independent Committee for the Supervision and Standards of Telephone Services (ICSTIS) Project Manager: Warwick Izzard (Tel. 020 7634 8981 e-mail: warwick.izzard@oftel.gov.uk) Other contact: John Wimmer (Tel. 020 7634 8742 e-mail: john.wimmer@oftel.gov.uk) Objective: To ensure that consumers are adequately protected through co-regulation with ICSTIS and industry self-regulatory initiatives for Premium Rate Services.
C11 Calling line identification (CLI) Project Manager:
Frank Phillips (Tel. 020 7634 8871 e-mail: frank.phillips@oftel.gov.uk) Objective: To ensure that the regulatory framework applied to CLI services adequately maintains customers' privacy and data protection rights.
C12 Dispute resolution procedure Project Manager: John Gallen (Tel. 020 7634 8836 e-mail: john.gallen@oftel.gov.uk) Other contact: Nicholas Good (Tel. 020 7634 8839 e-mail: nicholas.good@oftel.gov.uk) Objective: To ensure that consumers have access to dispute resolution procedures which are fair, transparent and easily accessible, by implementing the dispute resolution requirements of the Revised Voice Telephony Directive.
C13 New arrangements for numbering administration Project Manager: Alan Pridmore (Tel. 020 7634 8910 e-mail: alan.pridmore@oftel.gov.uk) Other contact: Mark Whitbread (Tel. 020 7634 5307 e-mail: mark.whitbread@oftel.gov.uk) Objective: To promote customer choice in numbers through the introduction of individual number allocations and to promote the efficient management of numbers by Operators through number charging
C14 Numbering programme Programme Manager: Ray Thornton (Tel. 020 7634 8704 e-mail: ray.thornton@oftel.gov.uk) Other contacts: Warwick Izzard (Tel. 020 7634 8981 e-mail: warwick.izzard@oftel.gov.uk), Geoff Morgan (Tel. 020 7634 8740 e-mail: geoff.morgan@oftel.gov.uk) Objective: To ensure that consumers can benefit from the continuing development of competition and new services by ensuring the provision of adequate numbers and numbering ranges for all publicly available telecommunications services.
D Prevention of anti-competitive practice D1 Compliance Casework Programme Programme manager: John Kemp (Tel. 020 7634 8885 e-mail: john.kemp@oftel.gov.uk) Other contacts: Don Wilson (Tel. 020 7634 8706 e-mail: don.wilson@oftel.gov.uk) Alistair Bridge (Tel. 020 7634 8782 e-mail: alistair.bridge@oftel.gov.uk) Maeve Gallagher (Tel. e-mail: maeve.gallagher@oftel.gov.uk) Objective: To prevent anti-competitive practice and to further the achievement of all of Oftel’s objectives by pro-actively managing all casework and to resolve all cases in the minimum possible time. Cases include, Investigations of complaints, Own initiative cases, Competition Act cases (including Notifications and Guidance cases), Interconnection disputes and Determinations. This programme includes complaints relating to the Internet, ADSL and broadband issues in general as well as cases under the Revised Voice Telephony Directive and the Unfair Terms in Consumer Contracts Regulations.
D2 Quality Assurance Programme Programme Manager: Mohinder Mahi (Tel. 020 7634 8872 e-mail: mohinder.mahi@oftel.gov.uk) Other Contact: Peter Silverman (Tel. 020 7634 8737 e-mail: peter.silverman@.oftel.gov.uk) Objective: To develop and operate a robust framework which enables compliance casework to be conducted and monitored in an open, transparent and consistent manner.
D3 Compliance Monitoring Unit Programme Programme Manager: Keith Loader (Tel. 020 7634 8793 e-mail: keith.loader@oftel.gov.uk) Other Contact: Martin Hill (Tel. 020 7634 8700 e-mail: martin.hill@oftel.gov.uk) Objective: To ensure that compliance issues (such as casework in compliance phase, obligations under licences etc) are effectively co-ordinated within Oftel and, in line with Oftel’s strategy for lighter touch regulation, to identify suitable issues for future self and co-regulation.
D4 Industry Compliance Programme Project Manager:
Maeve Gallagher (Tel. e-mail:maeve.gallagher@oftel.gov.uk) Objective: To encourage a culture of compliance and self-regulation within industry that will ultimately lead to lighter regulation. To encourage a move towards compliance with the Competition Act. The initial objective is to ensure that industry is fully aware of the Competition Act and can fully comply with it
D5 International Controls Programme Programme Manager: Vince Affleck (Tel. 020 7634 8819 e-mail:vincent.affleck@oftel.gov.uk) Other contacts: Beverley Blakeney (Tel. 020 7634 8828 e-mail:beverley.blackeney@oftel.gov.uk) Objective: To enable the full operation of market forces for the benefit of consumers by withdrawing from detailed regulation as the international market becomes progressively competitive.
D6 Mergers Programme Programme manager: Don Wilson (Tel. 020 7634 8706 e-mail: don.wilson@oftel.gov.uk) Other Contact: John Kemp (Tel. 020 7634 8885 e-mail: john.kemp@oftel.gov.uk) Objective: To encourage market structures consistent with effective and sustainable competition by identifying significant competition and regulatory issues arising from proposed mergers and joint ventures in telecoms and related sectors, and provide timely advice to the competent authorities (OFT &DTI) accordingly
D7 Price of calls to mobile phones 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 where competition is not yet effective or in prospect through the implementation, if appropriate, of price controls for calls terminating on mobile networks.
D8 Developments in Competition Legislation Project manager: Alistair Bridge (Tel. 020 7634 8782 e-mail: alistair.bridge@oftel.gov.uk) Other contact: Trevor Wood (Tel. 020 7634 9954 e-mail: trevor.wood@oftel.gov.uk) Objective: To achieve more effective prevention of anti-competitive practice by ensuring that Oftel contributes effectively to the development and implementation of competition policy in the UK and EC.
D9 Financial information systems programme Project Manager:
Gavin Greenfield (Tel.020 7634 8734 e-mail: gavin.greenfield@oftel.gov.uk) Objective: To facilitate Oftel in requesting relevant, accurate and timely information, derived from financial and management systems of operators designated as having significant market power, market influence or equivalent, of sufficient quality and quantity to address and deal effectively with competition and regulatory issues.
D10 ADSL Roll-out Project Project manager: Alistair Bridge (Tel. 020 7634 8782 e-mail: alistair.bridge@oftel.gov.uk) Other contact: John Russell (Tel. 020 7634 8830 e-mail: john.russell@oftel.gov.uk) Objective: To ensure that other operators and service providers can compete in the provision of Asymmetric Digital Subscriber Line (ADSL) products by ensuring that BT does not breach its legal obligations.
D11 Leased Lines Project Project Manager: Trevor Wood (Tel. 020 7634 8854 e-mail: trevor.wood@oftel.gov.uk) Other contact: Tim Cross (Tel. 020 7634 8798 e-mail: tim.cross@oftel.gov.uk) Objective: To assess the level of effective competition for leased lines by conducting an in depth investigation of the cost of leased lines and to examine whether BT's pricing of leased lines, particularly ‘last mile’ circuits is restricting competition in the supply of leased lines and associated products. In the light of this, to review Oftel's policies on leased line pricing and price control mechanisms.
D12 Licence condition Competition Act review project Project manager: Don Wilson (Tel. 020 7634 8706 e-mail: don.wilson@oftel.gov.uk) Other contact: Trevor Wood (Tel. 020 7634 8854 e-mail: trevor.wood@oftel.gov.uk) Objective: To review competition related licence conditions for overlap with the Competition Act and to recommend potential modifications to licences in light of the review.
D13 Interconnection Programme Manager: Vince Affleck (Tel. 020 7634 8819 e-mail:vincent.affleck@oftel.gov.uk) Programme Leader: Geoff Brighton (Tel. 020 7634 8925 e-mail: geoff.brighton@oftel.gov.uk) Objective: To ensure that effective network competition is supported by the effective operation of the UK interconnection regime.
D14 Retail Pricing Issues Programme Manager: Vince Affleck (Tel. 020 7634 8819 e-mail:vincent.affleck@oftel.gov.uk) Other contact: Keith Loader (Tel. 020 7634 8793 e-mail: keith.loader@oftel.gov.uk) Objective: To ensure that retail pricing issues (permanent price changes, special offers, third party promotions (affinity deals) and new service trials are in line with licence conditions and do not have an anti-competitive effect.
E Framework projects E1 Reform of the Telecommunications Act Project Manager:
Neil Buckley (Tel. 020 7634 8880 e-mail: neil.buckley@oftel.gov.uk) Objective: To enable the development of a competitive market for converging services with appropriate consumer protection by working with the Department of Trade and Industry and the Department for Culture Media and Sport, together with other stakeholders, on proposals to update and reform the Telecommunications Act 1984 and the Broadcasting Act.
E2 Encouraging self-regulation and co-regulation Project Manager: Geoff Delamere (Tel. 020 7634 8745 e-mail: geoffrey.delamere@oftel.gov.uk) Other contact: Orla Corrigan (Tel. 020 7634 8776 e-mail: orla.corrigan@oftel.gov.uk), Chris Rowsell (Tel. 020 7634 8890 e-mail: christopher.rowsell@oftel.gov.uk) Objective: To promote the development of self-regulation and co-regulation by encouraging telecoms stakeholders – consumer groups, industry players and other interested parties – to adopt suitable opportunities for self and co-regulatory initiatives.
E3 Stakeholder relationships Project Manager:
Michael Richardson (Tel. 020 7634 8916 e-mail: michael.richardson@oftel.gov.uk),
Objective: To increase stakeholder involvement in Oftel policy making and ensure that stakeholders understand Oftel’s regulatory strategy and Oftel understands the regulatory concerns of industry and consumers.
E4 Oftel Strategy development and implementation Project Manager:
Geoff Delamere (Tel. 020 7634 8745 e-mail: geoffrey.delamere@oftel.gov.uk) Sarah Evans (Tel. 020 7634 5320 e-mail: sarah.evans@oftel.gov.uk) Objective: To ensure Oftel works to its goal of the best deal for the consumer by implementing its Strategy through the 2000/1 Management Plan and to measure its success through international benchmarking and co-ordination of market segment reviews
E5 EU 1999 communications review Project manager: Jim Niblett (Tel. 020 7634 8780 e-mail: jim.niblett@oftel.gov.uk) Other contact: Matthew Conway (Tel. 020 7634 8867 e-mail: matthew.conway@oftel.gov.uk) Objective: To promote the interests of UK telecoms consumers and telecoms industry through the achievement of an appropriate European Union regulatory regime.
E6 Developing international relations Project Manager:
Matthew Conway (Tel. 020 7634 8867 e-mail: matthew.conway@oftel.gov.uk Objective: To promote the interests of UK telecoms consumers and telecoms industry by applying the experience gained from regulating the UK telecoms market to the developing international policy frameworks and to apply the lessons of those frameworks in the UK.
E7 Twinning with Poland Project Manager: Chris Woolford (Tel. 020 7634 8973 e-mail: chris.woolford@oftel.gov.uk) Other contact: Paul Lonsdale (Tel. 020 7634 8866 e-mail: paul.lonsdale@oftel.gov.uk) Objective: To bring Poland’s legislative framework and institutional arrangements into line with EU legislation so that Poland is ready to join the European Union from 1 January 2003. Oftel is working with the Radiocommunications Agency (RA) and PTS (the Swedish NRA) on this EU funded project.
E8 Licensing Project Manager:
Peter Davies (Tel. 020 7634 8923 e-mail: peter.davies@oftel.gov.uk) Objective: To enable the development of effective competition by facilitating the simplification of the licence granting and modification processes, in particular by the replacement of individual licences with class licences.
E9 Providing better information for use by Oftel in policy development and compliance Project Manager: Justin Silvertown (Tel. 020 7634 8748 e-mail: justin.silvertown@oftel.gov.uk) Other contact: Caroline Lawson (Tel. 020 7634 8883 e-mail: caroline.lawson@oftel.gov.uk) Objective: To enhance Oftel’s policy development and compliance activities by monitoring developments in telecoms and related markets and analysing their impact on Oftel’s work and disseminating these findings across Oftel.
E10 Compliance Policy Issues Programme Manager: Trevor Wood (Tel. 020 7634 8854 e-mail: trevor.wood@oftel.gov.uk) Other Contact: Alistair Bridge (Tel. 020 7634 8782 e-mail: alistair.bridge@oftel.gov.uk) Objective: To achieve ‘joined up thinking’ across Oftel by ensuring effective liaison improve between the Compliance and Regulatory Policy Directorates on policy issues and casework.
F. Internal projects and programmes – helping Oftel to operate efficiently and effectively F1 Personnel Policy and Civil Service Reform Programme Programme Manager: Ros Badger (Tel. 020 7634 8783 e-mail: ros.badger@oftel.gov.uk) Other contact: Gill Loader (Tel. 020 7634 8789 e-mail: gillian.loader@oftel.gov.uk) Objective: To create a more open, diverse and professional department by delivering an efficient and responsive HR service and ensuring that Oftel recruits, retains, develops and rewards high quality and able staff. The core work programme is aimed at providing a high quality service to Oftel staff each day.
F2 Training and Development Programme Programme Manager: Carol Coyne (Tel. 020 7634 8997 e-mail: carol.coyne@oftel.gov.uk) Other contact: Hugh Robertson (Tel. 020 7634 5302 e-mail: hugh.robertson@oftel.gov.uk) Claire Glover Objective: To ensure that Oftel continues to meet the Investors in People (IiP) standard by providing quality, business driven, customer focused training and development opportunities accessible to every member of Oftel staff.
F3 Budget Management Programme Programme Manager: Paul Heseltine (Tel. 020 7634 8791 e-mail: paul.heseltine@oftel.gov.uk) Other contact: Walton Edwards (Tel. 020 7634 8792 e-mail: walton.edwards@oftel.gov.uk) Objective: To provide an effective finance and accounting service to the department.
F4 Knowledge Management Project Manager: Duncan Stroud (Tel. 020 7634 8750 e-mail: duncan.stroud@oftel.gov.uk) Other contact: Anne Cameron (Tel. 020 7634 8958 e-mail: anne.cameron@oftel.gov.uk) Objective: To ensure that Oftel staff can access and share the information necessary for their day to day work across the whole organisation. Introduce a redesigned website that will allow easy access and navigation by industry and the public seeking information published by Oftel.
F5 Electronic Records Management Project Manager: Duncan Stroud (Tel. 020 7634 8750 e-mail: duncan.stroud@oftel.gov.uk) Other Contact: Rachel Reeve (Tel. 020 7634 8762 e-mail: rachel.reeve@oftel.gov.uk) Objective: To assist Oftel in becoming an effective learning organisation by improving access to and organisation of information using available new technology and to improve public access to the Public Register.
F6 IS and IT Programme Programme Manager: Laura Dawson (Tel. 020 7634 8796 e-mail: laura.dawson@oftel.gov.uk) Other contact: David Burke (Tel. 020 7634 8797 e-mail: david.burke@oftel.gov.uk) Objective: To provide Information Systems which most effectively support Oftel's business needs and meet the wider objectives of the Modernising Government (Information Age Government) programme.
Consultation process and responses Basis of consultation 3.1 Oftel prepares and publishes a Management Plan every year. The 2000/1 Plan is the first which will implement Oftel’s new Strategy, ‘Achieving the best deal for consumers’, which was published in January, 2000. 3.2 An initial draft of the Management Plan was drawn up following consultation with stakeholders and internal meetings with all of Oftel’s staff. This was issued as a consultation document in February, 2000. The consultative document was sent to consumer groups, telecoms companies, other regulators and interested parties and was posted on the Oftel web-site. Respondents 3.3 Responses were received from the following organisations:
3.4 Appointments to view written comments in Oftel’s Research and Intelligence Unit, which must be made in advance, can be arranged by ringing: 020 7634 8761 or by fax on 020 7634 8946. Summary of consultation responses received 3.5 Most respondents supported the Strategy which underpins the Management Plan. The intention to move away from formal regulation to self and co-regulatory initiatives where possible was welcomed by a number of respondents – although some industry respondents felt that insufficient detail was given on the process of deregulating. The intention to increase stakeholder involvement was widely welcomed, particularly by consumer groups. 3.6 The main points raised in the responses are listed below, with Oftel’s comment. Responses commenting on individual projects and programmes have been passed to the relevant project/programme managers. Main points raised in the consultation 3.7 Stakeholder involvement A number of respondents felt that Oftel must ensure that all stakeholders are involved in designing self and co-regulatory initiatives. Oftel agrees with this – increasing stakeholder invlovement is central to Oftel’s Strategy and is essential if self and co-regulatory initiatives are to be a success. Oftel will issue a consultative document on self and co-regulation by May, 2000, to which all stakeholders will be invited to respond. Oftel also intends subsequently holding a stakeholders' workshop to develop self and co-regulatory policies. 3.8 Consumer protection A number of respondents expressed concerns that competition was being over-emphasised at the expense of consumer protection, and that disadvantaged groups could suffer in a deregulatory environment. Oftel recognises that even effective competition will not always ensure that consumers are adequately protected or informed. The Oftel Strategy is one of 'competition plus'. Competition is the key driver to obtain the best deal for the consumer. 'Competition plus' recognises that, given the nature of telecoms networks and the critical role of telecoms services for users, there are circumstances where some formal or informal regulatory action is needed to protect consumers' interests in addition to the achievement of effective competition, particularly for disadvantaged groups. Oftel welcomes input from all consumer groups and representatives of disadvantaged groups in its policy formulation. Universal Service 3.9 A suggestion was made that the Universal Service Obligation be extended to include high bandwidth services. Oftel and the DTI are currently reviewing USO. A joint consultation process was launched in winter, 1999. A further consultation document will be issued in spring, 2000, with a joint Statement expected in the autumn, 2000. Move to light touch regulation. 3.10 A number of respondents requested more information on how Oftel is to manage the process of deregulation. Other requested information on how Oftel would assess that regulation is no longer needed, and on the treatment of new or emerging services. Oftel is committed to moving to a lighter regulatory regime, with greater stakeholder invlovement. This will be done in a number of ways – by removing licence conditions which are made redundant by the introduction of the Competition Act (see project D12) and by identifying formal regulatory initiatives which can be replaced with self or co-regulation. Oftel is still developing, as part of its ongoing work on self and co-regulation, the process by which it will shift from formal regulation. This will be considered in the consultation which will be launched in May, 2000. With regard to how Oftel will assess when regulation is no longer needed, a list of effective competition tests, which were drawn up following the stakeholder workshop on effective competition in March is attached at Appendix 4. Oftel will not automatically regulate new or emerging services. Oftel recognises that unnecessary regulation puts an unnecessary burden on the industry. The starting point for new services is that they will not be regulated except where there is leverage of market power from existing adjacent markets. Regulation would only be introduced following a cost benefit analysis and any such regulation would be subject to regular reviews. Market reviews 3.11 A number of respondents felt that the market reviews were not frequent enough at 2 yearly intervals, particularly for the Internet and mobile sectors. Oftel intends to carry out thorough reviews of the market sectors and has estimated that each review will take approx. 36 weeks, as set out in Appendix 3. If reviews were carried out any more frequently than two years they could become a constant rolling process. This would cause difficulties as:
Project managers will of course continue to monitor developments in their sectors and to recommend policy changes if necessary. Projects and programmes organised according to subject. Access to infrastructure and other resources A2 Local loop unbundling A3 Access to Radio spectrum A4 Principles of access to communications networks Broadcasting A7 Broadcasting markets competition Competition casework D1 Compliance casework D3 Compliance monitoring unit D4 Industry compliance D5 International controls programme D6 Mergers programme D9 Financial information systems D10 ADSL roll-out D11 Leased lines project Consumer information B1 Raising customer awareness B2 Research into consumer views B3 Comparable Performance indicators B4 Price Comparisons B7 Welsh language scheme Consumer protection A6 Directory Enquiries C1 Price control review C2 Universal service C3 Consumer representation C4 Terms in telecoms contracts C5 Metering and billing D7 Price of calls to mobiles D14 Retail pricing issues International E5 EU 1999 Communications Review E6 Developing international relations E7 Twinning with Poland Internet and e-commerce A8 Internet and e-commerce C8 Learning society access Legislative framework – domestic and EU C9 Data Protection C12 Dispute resolution procedure D8 Developments in competition legislation D12 Licence conditions – Competition Act review E1 Telecoms Act reform E8 Licensing Market information A10 Better market info. for stakeholders E9 Better info. for Oftel Mobile A1 Competition in mobile markets Network issues A9 Network interoperability D13 Interconnection Numbering C13 New Numbering Administration C14 Numbering programme Oftel internal admin. D2 Quality assurance F1 Personnel Policy and Civil Service Reform F2 Training and Development F3 Budget Management F4 Knowledge Management F5 Electronic Records Management F6 IS and IT Provision of specific services A5 Carrier pre-selection implementation C6 Essential requirements C10 Premium rate services C11 Calling Line Identification Stakeholders – (consumers, industry and other regulators) B5 Small Business Task force B6 Large Business User Panel C7 Advisory Committees on Telecommunications (ACTs) E2 Self and co-regulation E3 Stakeholder relationships E4 Strategy Expenditure Plans 2000-01 A2.1 Oftel’s funding is provided by Parliament and is subject to strict public expenditure controls. However most of its costs are recouped from licence fees paid by the telecommunications operators and from other miscellaneous income. A2.2 Oftel’s total expenditure in 1998-99 was £11.5 million, which included running costs of £10.5 million. The total forecast expenditure for 1999-2000 is £14 million including £11.7 million running costs. This expenditure included significant restructuring costs. A2.3 Oftel’s planned running costs expenditure for 2000-2001, as published in March 1999 in the Government Expenditure Plans (CM 4211), were set at £11.3 million. A2.4 However Oftel’s work programme has increased substantially since these expenditure plans were agreed, and to carry out the full programme of work outlined in this draft Management Plan additional resources will be required. In particular, market developments, the rapid growth of Internet use and services and the coming of new broadband services require increased Oftel effort in policy development in these areas. These new telecoms services are vital to the development of e-commerce and the information society. The importance of Oftel increasing its work and focus in these areas has been recognised by both the Trade and Industry Committee (in its July 1999 report on Electronic Commerce) and by the Cabinet Office PIU report of September 1999 on E-commerce. A2.5 Subject to the necessary approval by Parliament and the Treasury for the revised spending proposals, Oftel intends to allocate resources in 2000-2001 as follows:
* £0.9m of this is directly recoverable from the EU for project E7 Twinning with Poland A 2.6 'Under the EC Telecommunications Licensing Directive (97/13/EC) the costs of certain areas of Oftel's activities cannot be recovered from licence fees. Discussions are therefore continuing within Government on how to meet the estimated £2.4 million cost of 'non-recoverable' areas of Oftel's work.' Staffing A2.7 Subject to the above spending proposals being approved, the average number of staff employed in Oftel should increase to some 209 in 2000-01. A total of 194.5 staff (including part-time staff) were employed in Oftel in January 2000 Effective competition reviews A3.1 These reviews will focus on the extent and effectiveness of competition in particular areas of the market. There will be two cycles of reviews – one cycle for markets and one cycle for consumer protection policies – to identify whether, and if so what, regulation is required and to take appropriate action as a result. A3.2 For each review cycle consumers will be taken to be the final consumers of telecommunications services, which includes both residential and business consumers, but excludes service providers and resellers. A3.3 The most appropriate framework for reviewing non-market issues is by assessing the scope for self and co-regulation. Therefore this point will be further considered as part of the consultation on self and co-regulation. A3.4The market review process has been developed in conjunction with stakeholders at a workshop held in March, and is set out below in A3.6. A summary of the stages involved is attached as a timetable – Table A3(I). A3.5 The review will comprise a single consultation period of 3 months to capture views/inputs on both the assessment of effective competition in a broad market segment and cost/benefit assessment of policy options flowing from the assessment. A3.6 The reviews will take 36 weeks to carry through. Any longer, on a two year review cycle, would risk reviews merging into each other. A3.7 The following are the guidelines for project and programme managers for carrying out a review. 1. Internal – start of process Oftel’s project team for relevant market segment to meet to decide: a) stakeholders (both appropriate consumer groups – residential and/or business – and industry players) with whom to hold exploratory, scoping discussions; b) timescale for review and stages; c) resources required; d) coverage of document ie indicators and weighting; e) clarify how deal with emerging policy issues or competition complaints in relation to review process; f) focus of internal and external data collection; j) where industry/consumers can input – data and timescales; k) co-ordination of the review with international benchmarking work and Oftel market research processes.
2. Formal, external start of process Oftel will issue document (not a formal condoc) which will be the formal trigger for the commencement of the review. The document will include a) definition of the market segment under review (recognising relevant ‘economic market’ subsets based on geographic, customer group, and other relevant distinctions); b) reflection on current regulatory interest in the segment; c) an initial assessment of effective competition indicators likely to be most significant for the segment as a whole; d) the stages of the review process; e) the proposed time taken and Oftel’s data collection plans; and f) identifying where information is sought from stakeholders (separate out data to be required under licence conditions and voluntary submissions to be requested from both licence and non licence holders) – emphasis placed on this distinction will depend on: (i) how critical to the review specific data sets are (ii) likely availability of data (iii) existence of alternative data sources. 3. Initial assessment phase This is a key stage of the review process – Oftel will carry out an analysis of the data against effective competition indicators, taking account of weighting factors set out in initial document (under (2) above). Data collected during the period will be posted on Oftel website, once its validity is checked. Data supplied by stakeholders will be attributed to them. 4. Condoc Oftel will issue a condoc which will set out: a) Oftel’s initial assessment of status of market segment in relation to effective competition (ie one of three outcomes – effective competition exists, is in prospect or is not in prospect); b) the evidence on which assessment is based c) existing policies relevant to the segment
The questions posed in the consultation to stakeholders will focus on the following:
5. Responses to the condoc Stakeholders will be given 3 months to respond to the condoc. Oftel will: a) monitor key indicators for any changes during this period b) review condoc responses and pro-actively maximise number that are accessible via Oftel website 6. Preparation of a statement Oftel will prepare a statement and update the assessment of costs and benefits: a) updating the assessment using current market/consumer data/intelligence b) preparing a statement of results of effective competition review and c) setting out the selected option for changing policy approach following cost/benefit assessment 7. Publication of the statement setting out the effective competition view. 8. Implementation of proposed actions. A3.8 A timetable for the review process is shown in Table A3(I) below. A3.9 The Strategy statement included a timetable for the reviews for some of the main market segments – this is reproduced below as Table A3(II).
Guidelines for assessing the costs and benefits of regulatory action. Assessing the costs and benefits of policy options. A4.1 Oftel in its Strategy statement sets out its intention to move, where possible, to lighter touch regulation. In most cases light touch regulation will be implemented by various policy instruments. Oftel will need to identify the various options open to it and to weigh up the pros and cons of each one. A4.2 Oftel will asses the costs and benefits of the policy options open to it through a process of cost benefit analysis. Cost benefit analyses (CBA’s) are usually undertaken in situations where the costs and benefits of particular events fall on different parties: the aim of such studies is to identify and measure the likely costs and benefits to assess whether the benefits of taking action outweigh the expected costs. A positive benefit indicates action might be taken and vice versa. A4.3 Oftel will use CBA’s to decide whether regulatory action is required and if so what form it should take based as far as possible on objective information. Use of CBA’s A4.4 CBA’s will be carried out as part of the preparations for the effective competition reviews which are explained in Appendix Three. The project team will carry out a CBA in their initial consideration of the market segment or policy which is to be reviewed. The results of the CBA will be included in the consultative document which will be issued to stakeholders. Stakeholder inputs will be requested on: the methodology used; provision of additional data to that included by Oftel; and analysis of the results. A4.5 Use of CBA’s will not be limited to sectors which are to undergo effective competition reviews. CBA’s will also be carried out as part of whatever new regulatory initiatives are proposed, or regulation extended to new service or product areas. CBA’s may also be carried out on an ad-hoc basis by project and programme managers in response to significant developments in a sector. Guidelines for carrying out CBA’s A4.6 The Guidelines below set out the process which Oftel will follow in carrying out CBA’s, and the criteria which will be considered. All Oftel project and programme managers will receive training in applying this process to ensure consistency of analysis across the organisation. A4.7 The process to be followed by Oftel
A4.8 Underlying principles
The Costs and Benefits A4.9 The following are the costs and benefits which will be considered – within the timescale envisaged (a maximum of one week for issues of moderate importance) it is clearly not always possible to come up with definitive numbers in which case plausible assessments of costs and benefits may be sufficient. A4.10 Costs
Direct costs eg buying new equipment; Recurring costs eg dealing with regulatory requests; Lower profits
A4.11 Benefits
Assessment against a benchmark A4.12 The assessment of costs and benefits needs to take place against a clear benchmark: the benchmark for any CBA is usually a ‘do-nothing’ base case, ie what would happen if no new action was taken. This leads to an important practical point in undertaking the CBA: the costs and benefits are incremental to what would have occurred without any "further" intervention. Oftel will measure the costs and benefits resulting from a particular regulatory action. For example if prices are generally falling even without a proposed piece of action, the benefit would be the anticipated additional fall due to the action proposed. Establishing the likely events under the base case is therefore a fundamental starting point for cost benefit assessment. Examples of CBA’s A4.13 The following examples show how costs and benefits may initially be weighted as part of a CBA. In carrying out a CBA Oftel would seek to quantify or at least scale the monetary value of the costs and benefits (an exercise which is too resource intensive for this paper). Geographic Number portability
BT price control
Responding to this Statement A5.1 Oftel issued a draft of this 2000/1 Management Plan as a consultation document in February 2000. This statement has been drawn up following consideration of responses to the consultation document and represents the basis on which Oftel intends to carry out its work in the coming year subject, of course, to any major changes in circumstances. A5.2 Any further comments on this statement should be made in writing and sent to: Orla Corrigan Tel: 020 7634 8776 A5.3 Written comments will be made publicly available in Oftel’s Research and Intelligence Unit except where respondents indicate that their response, or parts of it, are confidential. Respondents are therefore asked to separate out any confidential material into a confidential annex which is clearly identified as containing confidential material. In the interests of transparency, respondents are requested to avoid confidentiality markings wherever possible. Appointments to view written comments in Oftel’s Research and Intelligence Unit, which must be made in advance, can be arranged by ringing: 020 7634 8761 (fax: 020 7634 8946). Internet Access A5.4 Oftel would like to set up a link between this statement and any responses placed on respondents own Internet pages. Please contact Jo Hamilton at Oftel on 020 7634 8755 or by e-mail: to arrange this. Confidential responses should not be sent via the Internet. A5.5 Oftel has a free e-mail based mailing list to help people stay informed about the work that Oftel is doing. Each time an Oftel document is published and placed on Oftel's web site web.oftel@gtnet.gov.uk subscribers to the list receive an e-mail informing them about the document. If you would like to join please use the electronic form on the web site to add yourself to the list. There is a link to the form from the What's new section of the site. A5.6 Alternative Formats
A5.7 Please contact the Oftel Research and Intelligence Unit on 020 7634 8761, or by e-mail infocent.oftel@gtnet.gov.uk, or call textphone 020 7634 8769 for more information. ACTs – Advisory Committees on Telecommunications. ADSL – Asymmetric digital subscriber loop (ADSL) is a technology that allows the use of a copper line to send a large quantity of data (eg a television picture) in one direction and a small quantity (eg a control channel and a telephone call) in the other. ATM – Asynchronous Transfer Mode – the internationally agreed basis for broadband ISDN. A technology that enables all types of information (data, voice and video in any combination) to be transported by a single network infrastructure. Broadband – A service or connection allowing a considerable amount of information to be conveyed, such as television pictures. Generally described as a bandwidth of more than 2Mbit/s. Calling Line Identity (CLI) – A facility that enables identification of the number from which a call is being made. Customer premises equipment (CPE) – Sometimes referred to as customer apparatus or consumer equipment, being equipment on consumers premises which is not part of the public telecommunications network and which is directly or indirectly attached to it. DfEE – The Department for Education and Employment. DTI – The Department of Trade and Industry. ECTRA – European Committee for Telecommunications Regulatory Affairs. ECTRA is the main European forum for the discussion of regulatory issues, set up within the framework of the European Conference of Postal and Telecommunications Administrations (CEPT). Electronic Programme Guide (EPG) – software in the receiver which takes data on programmes and displays these in the form of an on-screen guide. The guide displays information about what is on now and next on each channel as well as future programmes. Viewers may also be able to use the on-screen menus to order pay per-vie services or to access interactive services. ICSTIS – Independent Committee for the Supervision and Standards of Telephone Information Services IP – Internet Protocol – packet data protocol used for routing and carriage of messages across the Internet. Interoperability – the technical features of a group of interconnected systems (systems includes equipment owned and operated by the customer which is attached to the public telecommunication network) which ensure end-to-end provision of a given service in a consistent and predictable way. ITC – Independent Television Commission Narrowband – A service or connection allowing only a limited amount of information to be conveyed, such as for telephony. This compares with broadband, which allows a considerable amount of information to be conveyed. NTS – Number Translation Services – describes a range of specially tariffed services, primarily used for telemarketing, which include 0500/0800 Freephone, 0345/0645/0845 local call fee access, 0870/0990 national call fee access and 08xx/09xx Premium Rate Services. These services are offered at specific price points in order that customers calling from any fixed network will know that the quoted retail price is the maximum they will be charged for calls to a particular number range. OFT – Office of Fair Trading Premium Rate Service (PRS) – Services, including recorded information and live conversation, run by independent service providers. All calls to these companies are charged at a higher rate than ordinary calls to cover the companies' costs in providing the content of the call and the operator's cost for the special network facilities needed. Public Switched Telephone Network (PSTN) – The telecommunications networks of the major operators, on which calls can be made to all customers of the PSTN. Public Telecommunications Operator (PTO) – Network operators with powers granted by the Secretary of State for Trade and Industry under the Telecommunications Act 1984 to enable them to install their systems on public and private land, property etc. RA – The Radiocommunications Agency Radio Spectrum – The range of wavelengths used, for example, for broadcasting radio, terrestrial television and satellite television. Usable wavelength ranges from about 100 KHz to about 400 GHz although there are as yet no broadcasts above about 12 GHz. Universal Service (US) – A provision in some Telecommunications Act licences requiring the licensee to provide certain services to all specified persons. For example, BT is currently required to provide basic voice telephony and certain other established telecommunications services to anyone who may reasonably request them. Vertical integration – where a single company is active in more than one stage in the production and supply of a good or service eg where a network operator also provides enhanced services which are carried over the network or supplies the consumer equipment needed to access services it provides.
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