A consultation document issued by the Director General of Telecommunications on proposals to redesignate existing access codes used for directory enquiries.

Summary

S.1 In September 2001, Oftel published a statement, Access codes for directory enquiry services (the 'September 2001 statement') (see www.oftel.gov.uk/publications/numbering/denq0901.htm). In that statement, Oftel set out its decision to promote competition for directory enquiry (DQ) services by introducing new access codes for DQ services starting with ‘118’, and to make unavailable (after a period of parallel running) the existing DQ numbers such as ‘192’. The ‘195’ DQ service for customers unable to use a conventional paper directory will remain available.

S.2 In December 2002, DQ services using the new 118 numbers were launched on the UK network. The period of parallel running between the new 118 numbers and the existing DQ numbers such as 192 is scheduled to continue until August 2003.

S.3 There has been no change to Oftel’s policy as set out in the September 2001 Statement as regards liberalisation of the DQ market. However, the September 2001 Statement did not address in detail the precise arrangements that should apply to the legacy DQ numbers at the end of the parallel running period. Therefore this consultation seeks views on five different options for the handling of the legacy DQ numbers such as 192, when the parallel running period for the new 118 DQ numbers and the legacy DQ numbers comes to an end.

S.4 As the end of parallel running is scheduled for August 2003, Oftel has had to consider its powers and duties under the new European regulatory regime (due to be implemented by 25 July 2003) when assessing options for the future use of the legacy DQ numbers. Changes to the General Conditions of Entitlement and (where necessary) the National Telephone Numbering Plan are required to support the options developed by Oftel and these changes are set out in an annex to this document.

S.5 Oftel has proposed a set of criteria against which the various options can be evaluated. Oftel is seeking the comments of stakeholders both on the options themselves and the criteria for evaluating the options. Oftel has set out its initial assessment of each option against the proposed criteria, and on this basis has come to the preliminary view that Option B is likely to be the best of the options considered. Under Option B, the legacy DQ numbers are made available explicitly for network messages, advising that DQ numbers have changed to six digit 118 numbers, and advising callers where they can obtain further information. Under Option B, specific 118 numbers may not be given out on the legacy DQ numbers.

S.6 Following receipt and consideration of any comments from stakeholders by 21 April 2003, Oftel will publish a statement setting out Oftel’s final decision on the use of the legacy DQ numbers at the end of the parallel running period.

Chapter 1

Introduction

Scope of this consultation

1.1 This consultation covers the future arrangements for all Type A Access Codes used for DQ services, except for the 195 code for DQ services for consumers unable to use a conventional paper directory. These Type A Access Codes are ‘192’ (used for national DQ services) and ‘153’ (used for international DQ services).

1.2 All references to ‘legacy DQ codes’ or ‘legacy DQ numbers’ or the number ‘192’ or ‘153’ should be taken to include both 192 and 153.

1.3 Type C Access Codes used for DQ services are beyond the scope of this consultation.

1.4 The different types of Access Codes are explained in the glossary to this document.

Liberalisation of the directory enquiry market

1.5 Following public consultation, Oftel published a statement, Access codes for directory enquiry services in September 2001 (the 'September 2001 statement') (see www.oftel.gov.uk/publications/numbering/denq0901.htm). In that statement, Oftel set out its decision to introduce competition for directory enquiry (DQ) services by introducing new access codes for DQ services starting with ‘118’. The September 2001 Statement also set out Oftel’s intention to make the existing short codes that tie consumers to one DQ service provider (eg 192) unavailable, after a period of parallel running between the old and new numbers, thus achieving ‘numbering parity’ between all DQ service providers.

1.6 In October 2001, Oftel set up an Industry forum known as the DQ Implementation Working Group (DQ-IWG) to work on the detailed arrangements for the introduction of the new DQ service arrangements. This group is open to all public network operators and all potential providers of DQ services, and has held monthly meetings since October 2001. During this time, sub-groups of the DQ-IWG have been set up specifically to look at numbering, consumer-affecting, billing and interconnection issues.

1.7 In March 2002, Oftel published a statement, Allocating Access Codes for Directory Enquiry Services (the 'March 2002 statement') (see www.oftel.gov.uk/publications/numbering/2002/dqall0302.htm). In that statement, Oftel set out its detailed plans in relation to how the new 118 DQ codes would be structured and allocated. For example, Oftel decided that the 118 numbers used for DQ services would be six digits long and that popular 118 numbers requested by more than one service provider would be allocated by lottery. The March 2002 Statement also set out modifications to Oftel’s Numbering Conventions to provide for 118 DQ codes as Type B access codes as defined in the Numbering Conventions.

1.8 In May 2002, Oftel held a lottery to allocate the initial tranche of 118 DQ codes to DQ service providers. A full listing of which 118 DQ codes have been allocated (and the service providers to which they have been allocated) is available on Oftel’s web site as part of Oftel’s Specified Numbering Scheme (see www.oftel.gov.uk/ind_info/numbering/s10.xls). Eligible service providers can apply for unallocated 118 DQ codes via Oftel’s usual number allocation procedures.

1.9 On 10 December 2002, DQ services using the new 118 numbers were made available on the UK telephone network for the first time. Consumers are currently still able to dial the existing DQ numbers such as 192, and will be able to continue to do so until the end of the parallel running period, currently scheduled for August 2003.

1.10 The purpose of the parallel running period is to ensure a smooth transition to the new arrangements and to allow consumers to become aware of the 118 DQ numbers before the existing DQ services using numbers such as 192 become unavailable.

1.11 Oftel must now decide in detail how the legacy DQ codes should be treated at the end of parallel running. As set out in the September 2001 statement, Oftel has decided that these numbers should no longer connect to DQ services at the end of parallel running. This is because Oftel recognises that competition in the market for retail DQ services will not develop if the existing DQ codes such as 192 and 153 remain available. However, the September 2001 statement was largely silent on the issue of precisely what should happen to the legacy DQ numbers, merely noting:

1.12 The remainder of this consultation document discusses the options available for the treatment of the legacy DQ numbers and criteria for assessing the options. Views are sought on these options and criteria. The possible content of any messages received when dialling the legacy DQ numbers is examined, in particular which (if any) 118 numbers should be given out to consumers. Views are also sought on the consequential changes in the General Conditions of Entitlement and (where necessary) the National Telephone Numbering Plan (see chapter 2) required to support the options set out in the document. The option initially preferred by Oftel on the basis of information currently available is noted, but Oftel welcomes comments on all options to assist Oftel in coming to a final decision.

1.13 Chapter 2 describes the new regulatory regime that will be introduced in the UK on 25 July 2003 and the implications of this new regime for numbering generally, and Oftel’s powers in relation to the legacy DQ numbers in particular. Chapter 3 sets out six options for the legacy DQ numbers at the end of parallel running, and Oftel’s initial view of the advantages and disadvantages of each option. Chapter 3 also presents a set of criteria against which Oftel proposes to assess the options. Chapter 4 summarises the questions on which Oftel is seeking the views of stakeholders and Chapter 5 explains how stakeholders can respond to this consultation. The annexes to this document contain the proposed changes to the General Conditions of Entitlement and (where necessary) the National Telephone Numbering Plan that will be necessary to implement each of the options identified in Chapter 3. A glossary appears at the end of the document.

Evidence from other number changes

1.14 It is useful to examine the lessons that can be learned about the treatment of legacy numbers and consumer behaviour from other number changes.

1.15 Other European countries have opened DQ services up to competition over the last few years. For example, Germany, Norway, the Republic of Ireland, Austria, Sweden and Luxembourg have all liberalised DQ services and have attempted to achieve ‘numbering parity’. ‘Numbering parity’ means that all DQ providers use the same length of number, and any legacy DQ numbers used by the incumbent have been removed. Spain is currently in the process of doing so.

1.16 The approaches taken in these countries to the treatment of the legacy DQ numbers when they were no longer available for DQ services varied. In some countries (eg the Republic of Ireland), incumbents provided their own network messages on the legacy DQ numbers. In at least one country (Norway), a randomised network announcement of the new numbers was adopted.

1.17 Oftel is currently in the process of seeking more details from these countries about the policies adopted in relation to the legacy DQ numbers when they were no longer available for DQ services, and the impact of these policies on consumers and competition.

1.18 In the UK, the most recent significant number change was the National Code and Number Change (NCNC), also known as ‘The Big Number’. This number change was planned and implemented from 1997-2001, and affected area codes, mobile, pager, special-tariff and premium rate numbers. One key date was 22 April 2000 when local numbers in five cities and the whole of Northern Ireland changed overnight. Most telecoms companies joined together to manage the changes.

1.19 Oftel acknowledges that the NCNC is not completely comparable with the DQ number change for several reasons. With the NCNC, there was a large, centralised and jointly funded publicity campaign about the changes, which is an approach that has not been adopted with the DQ number change. Also, the NCNC covered numbers which millions of consumers could expect to dial on a daily basis (arguably leading to rapid changes in dialling behaviour), whereas Oftel’s own research shows that residential consumers may only dial a DQ service once every few months. However, Oftel considers that it is instructive to understand the key conclusions about consumer behaviour during number changes that may be drawn from the NCNC, and to have appropriate regard to these conclusions in deciding the pros and cons of the options available for the legacy DQ numbers. In particular:

• On the first day after switch-off in April 2000, 35 per cent of calls to the affected numbers were mis-dials to the legacy numbers (source: Ringing the Changes: report on the NCNC produced by ‘All the phone companies together’). On the first working day after the switch-off, 20 per cent of calls to the affected numbers were mis-dials to the legacy numbers.
• There was considerable reluctance amongst consumers to change dialling behaviour until the last possible minute. Advertising and PR campaigns were intensified during the last few weeks leading up to switchover.

1.20 There are approximately 700 million calls per annum to DQ services in the UK, which translates to a daily average of about 1.9 million calls. Given that awareness of the new 118 DQ numbers may be somewhat lower than awareness of the new area codes prior to the Big Number changes (because consumers dial DQ numbers less frequently and there are no plans for a centralised publicity campaign), it may not be unreasonable to expect up to one million mis-dials per day to the legacy DQ numbers during the first few days after the end of the parallel running period.

Chapter 2

The legal framework

2.1 As discussed in chapter 1, the parallel running period between the new 118 DQ numbers and the legacy DQ numbers such as 192 is scheduled to end no earlier than August 2003. On 25 July 2003, a new regulatory framework for electronic communications networks and services will enter into force in the UK. Therefore the changes proposed in this consultation document to the telephone numbers used for DQ services must be made in the context of the new, rather than the existing, regulatory regime.

The new European regulatory regime

2.2 The basis for the new regulatory framework is five new EU Communications Directives:

2.3 This new regulatory framework is designed to create harmonised regulation across Europe and aimed at reducing entry barriers and fostering prospects for effective competition to the benefit of consumers.

2.4 The Framework Directive provides the overall structure for the new regulatory regime and sets out fundamental rules and objectives which read across all the new directives. Article 8 of the Framework Directive sets out three key policy objectives which have been taken into account as relevant in the preparation of this consultation document, namely promotion of competition, development of the internal market and the promotion of the interests of citizens of the European Union. Article 10 of the Framework Directive requires that Member States ensure that National Regulatory Authorities (NRAs) control the allocation of numbering resources and the management of national numbering plans.

2.5 The Authorisation Directive establishes a new system whereby any person will be generally authorised to provide communications services and/or networks without prior approval. The general authorisation replaces the existing licensing regime.

2.6 The Universal Service Directive defines a basic set of services that must be provided to end-users.

2.7 The Access and Interconnection Directive sets out the terms on which providers may access each others’ networks and services with a view to providing publicly available electronic communications services.

2.8 These four Directives must be implemented in the UK and in other EU Member States on 25 July 2003.

2.9 The Privacy Directive establishes users’ rights with regard to the privacy of their communications. This Directive was adopted slightly later than the other four Directives and has an implementation date of 31 October 2003.

Implementation in the UK

2.10 In the United Kingdom, it is intended to implement the first four Directives through a new Communications Act. The Communications Bill was introduced into the House of Commons on 19 November 2002 and is available at http://www.communicationsbill.gov.uk. The latest version of the Communications Bill is that which was amended in Committee in the House of Commons on 6 February 2003. It can be found at that website. References to the Communications Bill in this document are references to that version of the Bill. The Bill may continue to be subject to change as it proceeds through Parliament.

2.11 It is intended that the Communications Bill will receive royal assent by 25 July 2003. However, in the event that the Communications Bill does not receive royal assent by 25 July 2003, the government has acknowledged that implementation will need to occur by Statutory Instruments made under the European Communities Act 1972 for an interim period until the Bill enters into force. Further, if the Communications Bill does receive royal assent by 25 July 2003, it is expected that Ofcom will not be ready by the summer to assume all of its duties foreseen by the Communications Bill. Should that be the case, the Communications Bill makes specific provision to enable Ofcom’s functions to be carried out by the Director or the Secretary of State for a transitional period. For these reasons, this document refers to the Director rather than Ofcom.

From licensing to general authorisation

2.12 One key change as a result of the new framework is that the telecommunications licensing regime will disappear – providers of electronic communications networks and services (‘Communications Providers’) will no longer be required to obtain a licence in advance of operating a system or providing services. The licensing regime will be replaced on 25 July 2003 by a general authorisation to provide electronic communications networks or services.

2.13 Under the new regime, while a licence is not required, Communications Providers may be subject to a number of General Conditions and, for some Communications Providers, specific conditions applicable only to an individual provider (eg obligations flowing from a designation as a provider of universal service or a finding of significant market power). The conditions are known as ‘Conditions of Entitlement’.

2.14 Oftel has already consulted on General Conditions that may apply to Communications Providers. These General Conditions have been published and consulted upon (see www.oftel.gov.uk/publications/licensing/2002/enti0502.htm). A public consultation will shortly be launched on the General Conditions that will be set under the Communications Act and also a corresponding set which would apply should an interim SI regime be necessary. The General Conditions will be finalised at a later date, and include a General Condition on the Allocation and Adoption of Telephone Numbers (the 'Numbering Condition of Entitlement') (see below). The appropriate modifications to the Annex to the General Conditions decided as a result of this consultation will be incorporated into the final version of the General Conditions. Oftel is consulting separately in a series of other documents about specific conditions that apply to individual providers.

Telephone numbers under the new regime

2.15 Clause 52 of the Communications Bill sets out the Director’s duty to publish the National Telephone Numbering Plan ('the Plan'). Clause 52 provides that the Plan shall set out such numbers that the Director has determined to be available for allocation as Telephone Numbers (which are specifically defined in the Bill) and such restrictions as the Director considers appropriate on the adoption and other use of such numbers. Oftel will shortly publish a draft Plan for consultation. The Plan will be finalised at a later date. If modifications to the Plan are required as a result of this consultation, these modifications will be incorporated into the final version of the Plan.

2.16 The Plan will cover 118 DQ numbers, as these numbers remain Type B Access Codes that are available for individual allocation under the new regime.

2.17 Numbers that Oftel does not allocate on an individual basis fall outside the structure of the Plan. There are many numbers that Oftel currently makes available for adoption on all networks without specific allocation, including the legacy DQ numbers such as 192. These numbers are made available for use through the Numbering Condition of Entitlement. That Condition only permits the adoption of numbers where there is an allocation by the Director or where there is a stated exception. Lists of numbers available for adoption without specific allocation are therefore appended as an Annex to the General Conditions of Entitlement (adoption is a term used for certain uses of telephone numbers by communications providers as set out in Clause 52(6) of the Communications Bill).

2.18 Subject to the outcome of this consultation, the legacy DQ numbers remain (in the Annex to the Conditions of Entitlement) Type A Access Codes which are made available by Oftel for all Communications Providers, rather than being individually allocated. Type A Access Codes will continue to be used under the new regime to provide access to designated services across all Public Telephone Networks.

2.19 The options examined in this consultation document for the future use of the legacy DQ numbers entail to varying degrees changes to the annex to the Conditions of Entitlement and additionally, for one option, the Plan. The proposed changes are set out in annexes to this consultation document.

2.20 Clauses 43 and 56 of the Communications Bill set out the tests for modifying the General Conditions and the Plan, namely that changes must be objectively justifiable, non-discriminatory, proportionate and transparent. Changes to the Plan or the General Conditions are also subject to public consultation procedures as set out in the Communications Bill, in particular a statutory minimum of one month’s consultation. Oftel considers that this consultation fulfils the requirement for public consultation for the proposed modifications to the Conditions of Entitlement and (if necessary) the Plan, whichever option is chosen.

Chapter 3

Options available for legacy DQ numbers

Background

3.1 If Oftel takes no action, the legacy DQ numbers will remain available for DQ services, as they will remain designated as Type A Access Codes for directory enquiry services in the annex to the General Conditions of Entitlement. Such a designation would allow any communications provider to use these numbers (if it so wished) for DQ services. In such circumstances, Oftel considers that consumers would be highly likely to continue to dial the familiar three digit legacy DQ numbers (which are ‘tied’ to the DQ service provided by the access network operator) rather than the new six digit 118 numbers. Oftel therefore considers that this situation would undermine competition in the provision of DQ services.

3.2 If the legacy DQ numbers are to be used for some sort of network message about the new 118 arrangements, then the existing designation of the legacy DQ codes must change. This is because the existing designation refers to the legacy numbers being for directory enquiry services. A network message advising that DQ numbers have changed and providing an alternative DQ number cannot on its own be considered a DQ service (as required by the existing designation).

3.3 In the September 2001 statement, Oftel decided that the legacy DQ numbers should no longer connect to DQ services at the end of parallel running. This remains Oftel’s policy. Oftel is not consulting on the principle of making the legacy DQ numbers unavailable for DQ services in this document, as it has been subject to comprehensive public consultation previously. However, Oftel is seeking comments on the options available for the treatment of the legacy DQ numbers at the end of the parallel running period.

Regulatory option appraisal

3.4 In June 2002, Oftel published guidelines setting out how Oftel would approach the assessment of different options in the context of market reviews, casework, consumer protection policy reviews and policy analysis in general. These guidelines are available on Oftel’s website at

www.oftel.gov.uk/publications/about_oftel/2002/roa0602.htm. In this document, Oftel is carrying out a regulatory option appraisal for the future use of the legacy DQ numbers in accordance with these guidelines.

Timescales

3.5 A key date for all stakeholders is the date of the end of parallel running. Oftel, working with the DQ-IWG, has for some time been planning that this should happen on the England, Wales and Northern Ireland August bank holiday 2003. This is because call volumes are likely to be particularly low during this period. One of the criteria Oftel proposes to use to assess options for the future use of the legacy DQ numbers (see below) is whether the option is practicable in the time available before the August bank holiday. Oftel considers that the Industry is likely to have at most three months to implement Oftel’s chosen option. In spite of this, Oftel understands that most Industry stakeholders are very keen that there be no delay to the end of the parallel running period, as much operational and commercial planning has already been undertaken based on this date. Oftel would welcome comments on Oftel’s view that the end of the parallel running period should continue to be scheduled for the August bank holiday 2003, regardless of which option is chosen for the legacy DQ numbers.

3.6 As discussed elsewhere in this document, the new European regulatory regime for electronic communications networks and services must be implemented by 25 July 2003. Oftel has considered whether the end of parallel running could be brought forward to coincide with the introduction of the new European regime on 25 July 2003 to avoid administrative complexity. However Oftel considers that this would not be practical, as network operators and DQ service providers will not have planned operational and marketing activities around this date. Also, this would give the Industry even less time to implement some of the options for network messaging considered in this consultation document. Therefore Oftel considers that the end of the parallel running period should not be brought forward. However, in order to avoid the need for a complex re-consultation procedure, possibly under an interim SI regime, Oftel has decided to complete this consultation well before 25 July 2003, so that the final versions of the General Conditions of Entitlement and the Plan adopted in time for 25 July 2003 can include the necessary modifications to implement the network messaging option chosen as a result of this consultation.

3.7 Therefore, all modifications to the General Conditions and the Plan proposed in this consultation document will include text stating that the modification only applies from 12.01am on 24 August 2003.

3.8 Also, in order to avoid the need for a further consultation about the final removal of the network messages on the legacy DQ numbers, Oftel proposes to include text within the designations of these numbers stating that, after 12.01am on 22 February 2004, the numbers will be deleted from the annex to the General Conditions (and where necessary the Plan) and will no longer be available for any sort of message other than ‘number unobtainable’.

3.9 Oftel is proposing that the network messages be discontinued after a specified time (ie six months) rather than when a specified threshold for mis-dialling is achieved. This is because evidence from previous number changes such as The Big Number (see above) indicates that consumers continue to dial legacy numbers whilst they can still obtain services on those numbers, despite being aware of the new numbers to dial. It is therefore possible that any mis-dialling threshold specified in advance by Oftel would never be achieved regardless of high levels of marketing and consumer awareness. Oftel also considers that it is important that all stakeholders have certainty as early as possible about the duration of any period of network messages on the legacy DQ numbers, to enable efficient planning of consumer awareness raising activities. Providing this certainty is particularly important if an independent network messaging option is chosen, so that funders of the network message have some idea about the degree of financial outlay likely to be required. 12.01am on 22 February 2004 has been chosen rather than 12.01am on 24 February 2004 because 22 February 2004 is a Sunday. Oftel and the Industry prefer to implement number changes during the weekend when peak call volumes are likely to be lower.

Q1: Do stakeholders agree that the end of parallel running should remain as currently scheduled ie 12.01am on 24 August 2003, regardless of the option chosen for the future use of the legacy DQ numbers? Do stakeholders agree that any network message on the legacy DQ numbers should be removed six months after it is introduced?

Criteria for evaluating options

3.10 All the options considered in this document depend on changes to the Annex to the General Conditions of Entitlement and/or the National Telephone Numbering Plan. Therefore a pre-requisite for all options is that the tests for modifying the General Conditions and the National Telephone Numbering Plan as set out in Clause 43 and Clause 56 of the Communications Bill respectively are met ie the changes are objectively justifiable, non-discriminatory, proportionate and transparent. For each option, Oftel has explained why its initial view is that these tests are met.

3.11 Oftel has also developed a set of criteria for evaluating options for the future use of the legacy DQ numbers against each other. The European Community requirements as set out in Clause 4 of the Communications Bill are the starting point for these criteria (in so far as the requirements are relevant). To these Oftel has added several criteria relating to ease of implementation and cost recovery. For each option, Oftel has set out its initial assessment against these criteria.

3.12 The criteria (starting with the Community requirements in Clause 4) are:

• Promotion of competition (as required by Clause 4(3)) – does the proposed solution promote competition in the provision of telephone Directory Enquiry Facilities to end users?
• Encouragement of the provision of network access and service interoperability for the purpose of securing sustainable competition, efficiency and benefit to customers and those making available associated facilities (as required by Clause 4(7) and Clause 4(8)). As regards efficiency, Oftel will consider whether the proposed solution encourages best use of resources and good value for money. In particular, does the proposed solution mean that costs will be recovered in a manner that accords as closely as possible with Oftel’s six established principles of cost recovery (see Annex B)? Two of these principles are already included on this list of criteria, namely effective competition and practicability. However, Oftel will also be considering whether the method of cost recovery accords with the other principles as well, namely cost causation, cost minimisation, distribution of benefits, and reciprocity.
• Consumer interest, including the potential to minimise consumer confusion, rapidly raise consumer awareness of the new 118 DQ numbers and to speed changes in consumer dialling habits.
• Practicability – is the proposed solution technically and commercially feasible in the time available before the end of parallel running in August 2003?
• Certainty – does the proposed solution provide all stakeholders with clarity about what will happen and when, or is it possible that further changes or Oftel intervention will be necessary?

Q2: What comments do stakeholders have on the criteria proposed by Oftel for evaluation of the options for the future use of the legacy DQ numbers? Are there any additional criteria that Oftel should take into account? What relative weight should Oftel place on each factor?

Option A

3.13 Under Option A, the legacy DQ codes are removed from the Annex to the General Conditions of Entitlement at the end of parallel running and do not appear in the Plan. The Numbering Condition of Entitlement only permits the adoption (ie use) of numbers where there is an allocation by the Director or where there is a stated exception in the Annex to the General Conditions. Therefore no Communications Provider can adopt the legacy DQ numbers for any purpose. A consumer dialling 192 or 153 would receive a ‘number unobtainable’ tone.

3.14 The current designation of the legacy DQ numbers (in the annex to the General Conditions of Entitlement):

"Access to (Inter)National Directory Enquiry Facilities (Type A Access Code)’"

would change to

"Access to (Inter)national Directory Enquiry Facilities until 12.01am 24 August 2003 (Type A Access Code). Deleted after 12.01am 24 August 2003.’"

3.15 Oftel’s initial view is that under this option, the tests for modifying the General Conditions as set out in Clause 43 are met. The modification to the Annex to the General Conditions can be objectively justified in that the change in the designation of the legacy DQ numbers is necessary to ensure that competition in DQ services develops effectively. The modification is non-discriminatory in that no undertaking will be able to use the legacy DQ numbers after 24 August 2003. The modification is proportionate in that it contributes to the goal of effective DQ service competition without appearing to place an undue burden on originating network operators (subject to responses to this consultation). The modification is transparent in that the precise nature of the modification and the intention of the modification are clear from the proposed modified text and this consultation document.

3.16 Oftel will consider this option in light of Oftel’s proposed evaluation criteria (which include the relevant Community requirements as set out in Clause 4 of the Communications Bill). Oftel’s initial view as to the assessment of this option in relation to the criteria is set out below.

Initial assessment of Option A against the proposed criteria

3.17 This option creates a level playing field between all DQ service providers, since no DQ service provider can announce their 118 number to consumers dialling the legacy DQ numbers, regardless of size, resources or links with originating network operators. All DQ service providers are encouraged to focus on marketing their 118 numbers, rather than relying on mis-dials to the legacy DQ numbers to drive calls to their call centre. This option therefore appears to promote competition.

3.18 It does not appear relevant to consider whether this option encourages the provision of network access and service interoperability, as no undertaking will be able to use the legacy DQ numbers after 24 August 2003. However, Oftel notes that since there is no network message on the legacy DQ numbers, direct costs to network operators are minimised. Any additional costs to network operators (eg to customer services numbers) can be off-set against the benefit of being able to promote their own numbers to consumers through these channels. However, the extent to which this benefit to network operators will outweigh the costs is not clear to Oftel at present. Oftel will review the extent to which this option encourages efficiency in light of the responses to this consultation.

3.19 Consumers dialling the legacy DQ numbers do not receive any information about why they have not received a DQ service, nor do they receive an alternative 118 number to dial. This will lead to significant consumer frustration and confusion. This is not in the consumer interest, at least in the short term. However, evidence from previous number changes demonstrates the consumers do not change their dialling behaviour until they are unable to obtain services by dialling the old numbers. Therefore this option may accelerate changes in consumer dialling habits since consumers will be unable to receive a 118 number by dialling one of the legacy DQ numbers. If a more ‘consumer friendly’ network message were adopted (which provided a specific 118 number), this message would itself have to be removed in the future (say after six months). Given that consumers do not change their dialling behaviour until they have to, then it is likely that when the message was removed, many consumers would still be dialling the legacy DQ numbers in order to hear the network message. This significant volume of customers would then be no better off than if this option had been adopted from the outset. This option could therefore be argued to be in the consumer interest in the medium-to-long term.

3.20 Oftel is not required to adjudicate further on appropriate arrangements for a network messaging solution (unlike some of the options explored below). There is therefore little scope for disputes, and all members of the industry have complete certainty about what will happen at the end of parallel running period, as soon as Oftel has issued its statement. Oftel is not aware of significant implementation issues with is option. This option therefore appears to offer certainty and practicability.

Q3: What comments do stakeholders have on the desirability of implementing Option A? Do stakeholders agree with Oftel’s initial assessment of Option A against the proposed criteria?

Option B

3.21 The legacy DQ codes remain Type A Access Codes. However, the designation of these numbers in the Annex to the General Conditions of Entitlement would change from:

"Access to (Inter)National Directory Enquiry Facilities (Type A Access Code)"

to:

"Access to (Inter)National Directory Enquiry Facilities until 12.01am 24 August 2003 (Type A Access Code). From 24 August 2003 until 12.01am 22 February 2004, access to a network message only, advising that Directory Enquiry Facility numbers have changed to six digit numbers starting with 118 and advising where the caller may obtain information about the new 118 (Inter)National Directory Enquiry Facility numbers. This advice may be [subject to the outcome of this consultation] one or more of (i) a website for an impartial listing of numbers; (ii) the customer services number of the network operator and/or (iii) a freephone number open to all 118 service providers where the caller is given at least one appropriate 118 number on a fair and impartial basis. A specific 118 number may not be provided. The network message must be free-to-caller. (Type A Access Code). Deleted after 12.01am 22 February 2004.."

3.22 This option would mean that the legacy DQ numbers would be available for adoption on any network without specific allocation. Communications Providers would be able to choose whether to adopt the legacy DQ numbers, although they would not be obliged to do so, and could give a ‘number unobtainable’ tone instead (see the discussion of access obligations in relation to the legacy DQ numbers below). If a Communications Provider did adopt the legacy DQ numbers, it would be obliged (by its Numbering General Condition of Entitlement) to use the numbers for network messages advising that DQ numbers had changed, and not for any other purpose. It would not be permitted to announce any specific 118 numbers at all.

3.23 The message should advise the caller where the caller can obtain information about the new 118 services. Oftel will decide in the light of responses to this consultation which of the following sources of information must be mentioned in the message. Oftel may decide that one or several of these sources of information must be mentioned:

3.24 Oftel’s initial view is that under this option, the tests for modifying the General Conditions as set out in Clause 43 are met. The modification to the annex to the General Conditions can be objectively justified in that a change in the designation of the legacy DQ numbers is necessary to ensure that competition in DQ services develops effectively, and it also ensures that consumers obtain some information about the new 118 DQ services. The modification is non-discriminatory in that all undertakings must use the legacy DQ numbers for the same network message after 24 August 2003. If impartial information is provided on a web site or via a freephone number, all DQ service providers have an equal opportunity to have their 118 DQ number announced. The modification is proportionate in that it contributes to the goals of effective DQ service competition and minimising consumer confusion without appearing to place an undue burden on originating network operators (subject to responses to this consultation). The modification is transparent in that the precise nature of the modification and the intention of the modification are clear from the proposed modified text and this consultation document.

3.25 Oftel will consider this option in light of Oftel’s proposed evaluation criteria (which include the relevant Community requirements as set out in Clause 4 of the Communications Bill). Oftel’s initial view as to the assessment of this option in relation to the criteria is set out below.

Initial assessment of Option B against the proposed criteria

3.26 This option promotes competition in 118 DQ services if the message on the legacy DQ numbers refers to an impartial website or freephone number. All DQ service providers have an equal opportunity to promote their own 118 services. All DQ service providers are encouraged to focus on marketing their 118 numbers, rather than relying on mis-dials to the legacy DQ numbers to drive calls to their call centre. Even if callers were also referred to the network operator’s customer service number, if this were combined with a reference to a web site or freephone number, then it is likely that competition would still be promoted to a significant extent.

3.27 Network operators will incur costs in providing the network message that cannot be offset against the benefits obtained by promoting their own 118 services (unless the caller is referred to the network operator’s own customer service number). This may lead to network operators choosing not to adopt the legacy DQ numbers after the end of parallel running. However, whatever guidance is provided to the caller, network operators will have some incentive to provide a compliant network message on the legacy DQ numbers for the sake of optimum customer service. Additional interconnect capacity may be required depending on which network hosts the freephone service, however this interconnect capacity may only be required for a short period of time, whilst the call volumes to the legacy DQ numbers remain high. Oftel intends to review the extent to which this option encourages the provision of network access and service interoperability in light of the responses to this consultation.

3.28 Consumers are not directly given a specific 118 number to dial, which may lead to some consumer frustration. If the consumer is directed to a freephone number, consumers might be provided with a different 118 DQ number each time they dialled, which would not raise consumer awareness of a specific 118 number quickly. It may not necessarily be clear to consumers where responsibility lies for the quality, functionality and price of the 118 service being promoted, except in the situation where they are referred to the network operator’s customer service number. However, all these disadvantages will be common to any network message that does not simply direct the consumer to the network operator’s own 118 message. With this option, consumers will be guided to a source (or possibly several sources) of information about the new 118 numbers, and they will then be able to make up their own minds about which 118 service to use. Inability to obtain a 118 number directly may actually accelerate changes in consumer dialling habits. This option therefore appears to Oftel to be in the consumer interest.

3.29 With this option, Oftel is not required to adjudicate the appropriateness of an independent network messaging solution. If a freephone number is included in the network message, payments to originating network operators for calls to freephone numbers are well established under the current NTS arrangements (unlike calls to the legacy DQ numbers when used for the purposes of network messaging). There is therefore less scope for disputes, and all members of the Industry have certainty about what will happen at the end of parallel running period, as soon as Oftel has issued its statement. Oftel is aware of one significant implementation issue with this option if a freephone number is used. This is that sufficient interconnect capacity must be in place between originating operators and the terminating operator hosting the freephone number to cope with the expected volume of mis-dials to the legacy DQ numbers, particularly in the period immediately after the end of parallel running. However, Oftel believes that it is feasible to ensure that sufficient interconnect capacity is in place if planning starts now. This option therefore appears to Oftel to offer certainty and a reasonable degree of practicability.

Q4: What comments do stakeholders have on the desirability of implementing Option B? Do stakeholders have any preference as to which source or sources of information should be referred to in the network message (ie (i), (ii) and/or (iii))? Do stakeholders agree with Oftel’s initial assessment of Option B against the proposed criteria?

Option C

3.30 Under Option C, the legacy DQ codes remain Type A Access Codes. However, the designation of these numbers in the Annex to the General Conditions of Entitlement would change from:

"Access to (Inter)National Directory Enquiry Facilities (Type A Access Code)"

to:

"Access to (Inter)National Directory Enquiry Facilities until 12.01am 24 August 2003 (Type A Access Code). From 24 August 2003 until 12.01am 22 February 2004, access to a network message only, advising that Directory Enquiry Facility numbers have changed, advising of at least one appropriate 118 number for access to (Inter)National Directory Enquiry Facilities and advising that other 118 numbers are available. The network message must be free-to-caller. (Type A Access Code). Deleted after 12.01am 22 February 2004."

3.31 This option would mean that the legacy DQ numbers would be available for adoption on any network without specific allocation. Communications Providers would be able to choose whether to adopt the legacy DQ numbers, although they would not be obliged to do so. If a network operator did adopt the legacy DQ numbers, it would be obliged (by its Numbering General Condition of Entitlement) to use the numbers for network messages advising that DQ numbers had changed, and not for any other purpose.

3.32 It is likely that under this option, there would be strong commercial and customer service incentives on network operators to adopt the legacy DQ numbers and use them for network messages about the new 118 DQ numbers. It is likely that network operators would use the network message to announce their own new 118 DQ numbers, and not those belonging to any other DQ service providers. It is possible that some network operators might ‘sell’ network announcement opportunities to independent DQ service providers (for example by a bidding process) but there would be no obligation on network operators to do so.

3.33 Oftel’s initial view is that under this option, the tests for modifying the General Conditions as set out in Clause 43 are met. The modification to the Annex to the General Conditions can be objectively justified in that the change in the designation of the legacy DQ numbers is necessary to ensure that competition in DQ services develops effectively, and it also ensures that consumers obtain at least one new 118 DQ number without having to redial. The modification is non-discriminatory in that all undertakings must use the legacy DQ numbers for the same network message after 24 August 2003. The modification is proportionate in that it contributes to the goals of effective DQ service competition and minimising consumer confusion without appearing to place an undue burden on originating network operators (subject to responses to this consultation). The modification is transparent in that the precise nature of the modification and the intention of the modification are clear from the proposed modified text and this consultation document.

3.34 Oftel will consider this option in light of Oftel’s proposed evaluation criteria (which include the relevant Community requirements as set out in Clause 4 of the Communications Bill). Oftel’s initial view as to the assessment of this option in relation to the criteria is set out below.

Initial assessment of Option C against the proposed criteria

3.35 Although callers to the legacy DQ numbers will be advised that a range of 118 DQ services are available, this option does not promote competition in the provision of the new 118 services and would be likely to undermine Oftel’s decision to liberalise the DQ market. This is because it is likely that network operators would choose to play network announcements promoting their own new 118 DQ numbers to consumers dialling the legacy DQ numbers (or would sell this promotional space to the highest bidder and obtain an unmerited windfall). In spite of significant marketing spend, evidence from another UK number change (the National Code and Number Change in April 2000) indicates that many consumers do not change their dialling habits until services are no longer available without redialling. This means that many consumers will be exposed to the network message on the legacy DQ numbers. Evidence from other countries making similar changes indicates that the network message played on the legacy DQ numbers at the end of parallel running is one of the most important factors in determining which new DQ service consumers will use.

3.36 This option does appear to Oftel to encourage network access and service interoperability, because (as explained above), there would be strong commercial and customer service incentives on network operators to adopt the legacy DQ numbers. However, whilst such network access might bring benefits to consumers, it is not clear that it would secure sustainable competition (as discussed in the previous paragraph). The question of efficiency also needs to be considered. Network operators will incur costs in providing the network message, but these costs can be offset against the benefits obtained by promoting their own 118 services and reducing the number of calls to customer services. Network operators may choose to sell promotional space on their network announcements to other DQ service providers. This would encourage efficiency to a certain extent by allowing the market to place the correct value on network announcements as a promotional medium. However, in this event, network operators would receive an unmerited windfall due to the historical accident of the existence of the legacy DQ numbers. Oftel will review the extent to which this option encourages efficiency in light of the responses to this consultation.

3.37 Consumers on all networks would be guaranteed a simple network message when dialling one of the legacy DQ numbers, with very little risk that no network message would be given at all (due to the commercial and customer service incentives on network operators to adopt the legacy DQ numbers). It is likely that consumers on a given network would hear the same network message announcing the same new 118 DQ number each time they dialled one of the legacy DQ numbers on that network. This would raise consumer awareness of a specific 118 number quickly. It would be clear to consumers where responsibility lies for the quality, functionality and price of the 118 service being promoted. However, consumers may not change their dialling behaviour while they can still obtain a 118 number by dialling a legacy DQ number. This option therefore appears to Oftel to be in the consumer interest in the short term, but less so in the medium-to-long term.

3.38 With this option, Oftel is not required to adjudicate the appropriateness of an independent network messaging solution or any other arrangements for the network message after Oftel publishes its statement. There is little scope for disputes, and all members of the Industry have certainty about what will happen at the end of parallel running period, as soon as Oftel has issued the statement. Oftel is not aware of significant implementation issues with this option, in particular there do not appear to be any interconnection implications. This option therefore appears to offer certainty and practicability.

Q5: What comments do stakeholders have on the desirability of implementing Option C? Do stakeholders agree with Oftel’s initial assessment of Option C against the proposed criteria?

Option D

3.39 Consumers dialling a legacy DQ number obtain a message (provided by the network operator) that states that the number no longer connects to DQ services, provides one 118 number selected at random from a list approved by Oftel, and advises that other 118 numbers are also available. All appropriate 118 numbers available on that network (including the network operator’s own 118 number – if it has one – and all the competitive 118 numbers) would need to be on the list. In drawing up the list, account would need to be taken of service providers with multiple 118 numbers, in order to ensure fair play and prevent gaming. Oftel could update the list periodically to take account of new service providers entering the market after August 2003. Network operators could also be allowed to delete numbers from the list if those numbers no longer connected to a DQ service (for example because the service provider had gone out of business).

3.40 The designation of the legacy DQ numbers in the Annex to the General Conditions of Entitlement would change from:

"Access to (Inter)National Directory Enquiry Facilities (Type A Access Code)"

to:

"Access to (Inter)National Directory Enquiry Facilities until 12.01am 24 August 2003 (Type A Access Code). From 24 August 2003 until 12.01am 22 February 2004, access to a network message only, advising that Directory Enquiry Facility numbers have changed, advising of one appropriate 118 number for access to (Inter)National Directory Enquiry Facilities selected at random from a list approved by Oftel and advising that other 118 numbers are available. The network message must be free-to-caller. (Type A Access Code). Deleted after 12.01am 22 February 2004."

3.41 Oftel’s initial view is that under this option, the tests for modifying the General Conditions as set out in Clause 43 are met. The modification to the Annex to the General Conditions can be objectively justified in that the change to the designation of the legacy DQ numbers is necessary to ensure that competition in DQ services develops effectively, whilst ensuring that consumers obtain at least one new 118 DQ number without having to redial. The modification is non-discriminatory in that all undertakings must use the legacy DQ numbers for the same network message after 24 August 2003. All DQ service providers have an equal opportunity to have their 118 DQ number announced. The modification is proportionate in that it contributes to the goals of effective DQ service competition and minimising consumer confusion without appearing to place an undue burden on originating network operators (subject to responses to this consultation). The modification is transparent in that the precise nature of the modification and the intention of the modification are clear from the proposed modified text and this consultation document.

3.42 Oftel will consider this option in light of Oftel’s proposed evaluation criteria (which include the relevant Community requirements as set out in Clause 4 of the Communications Bill). Oftel’s initial view as to the assessment of this option in relation to the criteria is set out below.

Initial assessment of Option D against the proposed criteria

3.43 Competition is promoted as every DQ service provider with an active 118 number would have an opportunity to have their 118 services announced on the legacy numbers. However Oftel questions whether this would be sustainable competition, in light of the very real risk of DQ service providers free-riding on the network announcement with no intention of staying in the market long term (see below).

3.44 This option may not encourage the provision of network access and service interoperability, as network operators would be required to cover all the costs of the network message, without the ability to benefit by announcing their own 118 DQ numbers. The only benefit to network operators would be to minimise customer service issues. There would therefore be a risk that non-dominant Communications Providers may choose not to adopt the re-designated legacy DQ numbers, to avoid this expenditure (see the discussion of access obligations in relation to the legacy DQ numbers below). Customers of these Communications Providers may then receive a ‘number unobtainable’ tone when dialling the legacy DQ numbers. The beneficiaries of the network message (ie the DQ service providers) would not be required to contribute to the costs of the network message. This might promote free riding, especially on the BT network. Particular 118 DQ services would be made available for a brief period only, taking advantage of any ‘any to any’ obligation(s) that may exist and benefiting from a guaranteed call volume during the switchover period. There would be no intention of making the service available or promoting it in the long term. In practice it would be very difficult to distinguish between genuine DQ service providers and those free riding. Additional interconnect capacity might be necessary to implement this option but this capacity would only be needed for a short space of time, whilst call volumes to the legacy DQ numbers remain high. For these reasons, this option may also not be particularly efficient.

3.45 Consumers dialling the legacy DQ numbers more than once would probably obtain a different 118 number each time they called, which would not contribute as strongly to raising consumer awareness or achieving rapid changes in consumer dialling behaviour as hearing the same 118 number on each occasion. Responsibility for the provision of the 118 service would not necessarily be clear to consumers in the event of complaints. However, all these disadvantages will be common to any network message that does not simply direct the consumer to a single 118 number such as the network operator’s own. Consumers will at least obtain one appropriate 118 number to dial. This option therefore appears to Oftel to be in the consumer interest.

3.46 With this option, Oftel is not required to adjudicate the appropriateness of an independent network messaging solution. However, Oftel would have further work to do once the Statement is published in terms of providing and keeping up-to-date a list of appropriate DQ 118 numbers available on the different UK networks. Some 118 DQ SPs may not have sufficient capacity in place (in their call centres and/or on their interconnection links) to deal with the volume of calls directed to their services during the first few days of the network message, when mis-dial volumes can be expected to be the highest. Oftel has been informed that this problem was encountered in Norway, which adopted this sort of approach at the end of its parallel running period, and will be verifying this with the Norwegian regulator. This can lead to significant consumer frustration and confusion. Oftel could check call centre and interconnection capacities and take this into account in approving a list of 118 DQ numbers, but this would also require significant detailed work and intervention by Oftel. With this option it appears to Oftel that there is significant scope for disputes to arise. Additionally, Oftel is unsure whether existing high volume network messaging platforms can be easily configured to randomly announce numbers from a pre-set list in the manner envisaged by this option, and would welcome comments from the Industry on this matter. This option does not particularly appear to Oftel to offer certainty and practicability.

Q6: What comments do stakeholders have on the desirability of implementing Option D? Is it technically feasible to configure high-volume call announcement platforms such that an announcement is chosen at random from a pre-set list? Do stakeholders agree with Oftel’s initial assessment of Option D against the proposed criteria?

Option E

3.47 Under Option E the legacy DQ codes would change from Type A Access Codes to Type B Access Codes. This would mean that the legacy DQ codes would have to be removed from the Annex to the General Conditions of Entitlement (which contains numbers such as Type A Access Codes available for adoption without allocation), and added to the National Telephone Numbering Plan (which contains numbers such as Type B Access Codes available for allocation).

3.48 The current designation of the legacy DQ numbers (in the Annex to the General Conditions of Entitlement):

"Access to (Inter)National Directory Enquiry Facilities (Type A Access Code)"

would change to:

‘Access to (Inter)National Directory Enquiry Facilities until 12.01am 24 August 2003 (Type A Access Code). Deleted after 12.01am 24 August 2003."

3.49 In the Plan, each legacy DQ number would be designated as:

‘From 12.01am 24 August 2003 until 12.01am 22 February 2004, 3-digit code used for access to a particular person’s (Inter)National Directory Enquiry Facility network message only. This network message must be free-to-caller, it must advise that the Directory Enquiry Facility numbers have changed and give at least one appropriate 118 number for access to (Inter)National Directory Enquiry Facilities. All providers of (Inter)National Directory Enquiry Facilities on active 118 numbers must have the opportunity to promote their 118 numbers on this network message on reasonable, non-discriminatory and transparent terms. (Type B Access Code). Deleted after 12.01am 22 February 2004."

3.50 For Option E, the designation of the legacy DQ numbers in the Plan must be fully detailed, as under the new regime there are no powers to attach specific conditions to allocations. Therefore any requirements on the provider of the DQ network message need to be specified by means of the designation of the legacy DQ numbers in the Plan.

3.52 Each legacy DQ number would be allocated to a DQ network messaging provider by the Director in accordance with the provisions of General Conditions 20.8 and 20.9.

3.53 Oftel has been informed that a group open to all DQ service providers has been set up under a memorandum of understanding (the MoU Group) to develop and cost proposals for an impartial network messaging solution that would give all DQ providers the opportunity to promote their 118 DQ services on the legacy DQ numbers (both national and international). This is the only such group of which Oftel is aware. Therefore if Option E is chosen, Oftel proposes that both legacy DQ numbers (192 and 153) be allocated to the MoU Group. Oftel seeks stakeholders view on this proposal, and Oftel would of course consider any other proposals brought to it as well. Before choosing Option E, Oftel would need to be completely persuaded of the technical and commercial viability of the proposed network messaging solution. The network messaging provider would also need to demonstrate to Oftel that it was subject to a legally binding commitment to fully fund the network messaging service in accordance with the timescales and objectives set out by Oftel.

3.54 As Type B Access Codes designated for access to a DQ network message and allocated to a specific network messaging provider, each legacy DQ number could only be used by Communications Providers to access that specific messaging provider’s announcement, and nothing else.

3.55 However, Communications Providers in general have no obligations to adopt Type B Access Codes allocated to others, unless they have an ‘any to any’ obligation.

3.56 If the legacy DQ numbers were re-designated as Type B Access Codes and allocated to a DQ network messaging provider, Communications Providers in general might choose (in the interests of customer service) to connect consumers to the DQ network messaging service. However, in the absence of the ability to exclusively promote their own 118 DQ numbers, Communications Providers (other than those with an ‘any to any’ obligation) may also choose not to adopt the legacy DQ numbers at all and to give consumers dialling these numbers a ‘number unobtainable’ tone.

3.57 Oftel’s initial view is that under this option, the tests for modifying the General Conditions and the Plan as set out in Clause 43 and Clause 56 are met. The modifications to the General Conditions and the Plan can be objectively justified in that the change to the designation of the legacy DQ numbers is necessary to ensure that competition in DQ services develops effectively, whilst ensuring that consumers obtain at least one new 118 DQ number without having to redial. The modification is non-discriminatory in that all undertakings must use the legacy DQ numbers for the same network message after 24 August 2003. All DQ service providers have an equal opportunity to have their 118 DQ number announced. The modification is proportionate in that it contributes to the goals of effective DQ service competition and minimising consumer confusion without appearing to place an undue burden on originating network operators (subject to responses to this consultation). The modification is transparent in that the precise nature of the modification and the intention of the modification are clear from the proposed modified text and this consultation document.

3.58 Oftel will consider this option in light of Oftel’s proposed evaluation criteria (which include the relevant Community requirements as set out in Clause 4 of the Communications Bill). Oftel’s initial view as to the assessment of this option in relation to the criteria is set out below.

Initial assessment of Option E against the proposed criteria

3.59 Under this option, the network message on the legacy DQ numbers would be available to all DQ service providers wishing to participate and contribute an appropriate proportion of the costs of the service. This would promote competition in the provision of 118 DQ services by ensuring that the significant number of consumers dialling the legacy DQ numbers after the end of parallel running hears a variety of 118 DQ numbers, rather than just the 118 number belonging to their network operator. All DQ service providers would have an equal opportunity to win market share via this promotion channel.

3.60 This option may not fully encourage the provision of network access and service interoperability. Although network operators’ costs would be met by DQ service providers wishing to promote their services on the legacy DQ numbers, there would still be a risk that Communications Providers without any-to-any obligations may choose not to adopt the re-designated legacy DQ numbers (see the discussion of access obligations in relation to the legacy DQ numbers below). However, it appears to Oftel that it is less likely than with other options that network operators would choose not to adopt these numbers, because of the scope for cost recovery.

3.61 Consumers dialling the legacy DQ numbers more than once would probably obtain a different 118 number each time they called, which would not contribute as strongly to raising consumer awareness or achieving rapid changes in consumer dialling behaviour as hearing the same 118 number on each occasion. Responsibility for the provision of the 118 service would not necessarily be clear to consumers in the event of complaints. However, all these disadvantages will be common to any network message that does not simply direct the consumer to a single 118 number such as the network operator’s own. Consumers will at least obtain one appropriate 118 number to dial. This option therefore appears to Oftel to be in the consumer interest.

3.62 This option does not appear to Oftel to be particularly practicable for the following reasons:

• In the absence of the ability to exclusively promote their own 118 DQ numbers, there is a risk that non-dominant Communications Providers may choose not to adopt the re-designated legacy DQ numbers. This may particularly be the case if these Providers cannot come to acceptable commercial arrangements with the network messaging provider to cover the costs of originating calls to the independent DQ network messaging service. Customers of these Communications Providers may then receive a ‘number unobtainable’ tone when dialling the legacy DQ numbers.
  
• The range of 118 DQ services available is likely to vary from network to network. In order to ensure that the consumer is given an appropriate 118 DQ number that the consumer can actually dial from their network, the network from which the consumer is calling will need to be identified. An appropriate message can then be played to the consumer. Oftel is aware that there are possible technical solutions to allow the consumer’s originating network to be identified (such as translation of the legacy DQ number to a unique geographic number on a network-by-network basis). However, such solutions are likely to add to the costs and complexity of the network messaging system.
• International DQ services present a particular problem. Any impartial network messaging system will need to provide an appropriate international 118 DQ number to consumers dialling the legacy international DQ numbers such as 153. However, in Oftel’s March 2002 statement Allocating Access Codes for Directory Enquiry Services, Oftel defined international DQ services as:

3.63 This option does not appear to offer stakeholders certainty. Under this option, Oftel will be required to assess and monitor in detail the appropriateness of allocating the legacy DQ numbers to a specific network messaging provider or providers. Oftel has seen an outline proposal for an impartial network messaging solution from the MoU Group. Oftel has significant unresolved concerns about the commercial feasibility of such a proposal. For several reasons, there are major uncertainties about the costs of implementing an impartial network message and how these costs would be recovered. This in turn creates a risk that implementing Option E would not be viable, or at least that a delay in the end of parallel running would be necessary to resolve these issues, with consequential financial implications for new entrant 118 DQ service providers. Some examples of uncertainties about cost and cost recovery are:

• The number of 118 DQ service providers willing to fund the network message is not clear, nor is the price-elasticity of demand (ie if the costs of participating increase, will the number of DQ service providers willing to participate decrease to the point where the arrangements collapse?).
• Appropriate payments to network operators for the origination of calls to the network message have not yet been agreed with network operators. Some network operators’ costs for call origination may be higher than others eg mobile operators. Oftel may have the power to intervene to set charges these charges but the legal tests required to use this power would have to be met, in particular that of proportionality. Further consultation on any such intervention would be required, which is unlikely to be possible in the time available before the end of parallel running.
• The likely volumes of calls to the legacy DQ numbers at the end of parallel running also cannot be predicted with complete accuracy in advance, nor how quickly these call volumes will decline as use of the new 118 numbers increases. As described above, sufficient interconnection capacity will need to be in place between originating network operators and the network operating hosting the DQ messaging platform. It is unclear to Oftel whether there is sufficient time to put this capacity in place. It is also unclear to Oftel how much funding DQ service providers might be willing to supply for an impartial network messaging solution, and whether or not they are prepared to enter into a potentially ‘open-ended’ funding commitment.

Q7: What comments do stakeholders have on the desirability of implementing Option E? Do stakeholders agree that if Option E is chosen, then the legacy DQ numbers should be allocated to the MoU Group? If not, do stakeholders have any other proposals as regards to whom the legacy DQ number should be allocated? Do stakeholders agree with Oftel’s initial assessment of Option E against the proposed criteria?

Oftel’s initial view as to the preferred option

3.64 Oftel’s initial view is that Option B is likely to be the best of the options set out in this consultation document for the legacy DQ numbers. Under Option B, the legacy DQ codes remain Type A Access Codes specifically for network messages. The network message must advise that the DQ numbers have changed to six digit 118 numbers. The message must also advise the caller where further information about the 118 numbers may be obtained, which may include (subject to the results of this consultation) one or more of the following: the network operator’s customer service number, a web site and/or a freephone number. A specific 118 number must not be given in the network message.

3.65 A preliminary assessment of Option B demonstrates that this option rates reasonably well against almost all the criteria proposed by Oftel ie promotion of competition, consumer interest, practicability and certainty. Oftel will take a view on whether this option encourages the provision of network access and service interoperability in the light of responses to this consultation, although Oftel notes that Oftel’s initial assessment does not show particular problems in this area in comparison with the other options considered. In contrast to Option B, each of the other options considered in this document rates very poorly against at least one of the proposed criteria. Option A is particularly unfriendly for consumers. Option C does not promote competition. Option D does not appear to encourage the provision of network access and service interoperability. It provides an opportunity for free riding, and is likely to have some practical implementation difficulties as well. Option E rates poorly, in Oftel’s initial view, against the practicability and certainty criteria.

Q8: Do stakeholders agree with Oftel’s initial view that Option B is likely to be the best option for the future use of the legacy DQ numbers? If not, which option do stakeholders consider to be the best option and why?

Q9: Are there any other options that Oftel should consider and how do these options rate against the proposed criteria?

Q10: Do stakeholders have any comments on the text of the proposed modifications to the annex to the General Conditions and the Plan as set out in Annex A?

An access obligation for the legacy DQ numbers

3.66 Options B, D and E all carry the risk that non-dominant network operators may choose not to adopt the legacy DQ numbers at the end of parallel running, as network operators other than those with an ‘any to any’ obligation will have no obligation to do so (as explained in Chapter 2, if the numbers are adopted, then they must be adopted in accordance with the annex to the General Conditions and/or the Plan, as appropriate). The extent of the non-adoption risk will depend on the strength of the commercial incentives on network operators. Network operators will have a certain incentive to adopt the legacy DQ numbers in order to reduce customer confusion and minimise the number of calls to their own customer service numbers. Network operators will also have an incentive to adopt the legacy DQ numbers if their costs in doing so are covered by the beneficiaries of any network message, or they can offset the costs by promoting their own 118 services on the legacy numbers. However, Oftel cannot predict in advance whether these incentives will be sufficient to ensure that network operators choose to adopt the legacy DQ numbers at the end of parallel running.

3.67 Oftel considers that under the new regime it will have the power to impose a requirement to adopt the legacy DQ numbers via an access-related condition under Clause 69 of the Communications Bill. However, Oftel’s use of this power would be subject to the legal tests set out in the Communications Bill, in particular any resulting condition must be proportionate. Consultation with interested parties would also be necessary before Oftel could implement any such measure (with a statutory requirement of at least one month’s consultation). Respondents to this consultation should therefore not rely on the existence of any requirements on network operators (other than those with ‘any to any’ obligations) to adopt the legacy DQ numbers at the end of parallel running when replying to the questions set out in this consultation.

Chapter 4

Summary of consultation questions

Q.1: Do stakeholders agree that the end of parallel running should remain as currently scheduled ie 12.01am on 24 August 2003, regardless of the option chosen for the future use of the legacy DQ numbers? Do stakeholders agree that any network message on the legacy DQ numbers should be removed six months after it is introduced?

Q.2: What comments do stakeholders have on the criteria proposed by Oftel for evaluation of the options for the future use of the legacy DQ numbers? Are there any additional criteria that Oftel should take into account? What relative weight should Oftel place on each factor?

Q.3: What comments do stakeholders have on the desirability of implementing Option A? Do stakeholders agree with Oftel’s initial assessment of Option A against the proposed criteria?

Q.4: What comments do stakeholders have on the desirability of implementing Option B? Do stakeholders have any preference as to which source or sources of information should be referred to in the network message (ie (i), (ii) and/or (iii))? Do stakeholders agree with Oftel’s initial assessment of Option B against the proposed criteria?

Q.5: What comments do stakeholders have on the desirability of implementing Option C? Do stakeholders agree with Oftel’s initial assessment of Option C against the proposed criteria?

Q.6: What comments do stakeholders have on the desirability of implementing Option D? Is it technically feasible to configure high-volume call announcement platforms such that an announcement is chosen at random from a pre-set list? Do stakeholders agree with Oftel’s initial assessment of Option D against the proposed criteria?

Q.7: What comments do stakeholders have on the desirability of implementing Option E? Do stakeholders agree that if Option E is chosen, then the legacy DQ numbers should be allocated to the MoU Group? If not, do stakeholders have any other proposals as regards to whom the legacy DQ number should be allocated? Do stakeholders agree with Oftel’s initial assessment of Option E against the proposed criteria?

Q.8: Do stakeholders agree with Oftel’s initial view that Option B is likely to be the best option for the future use of the legacy DQ numbers? If not, which option do stakeholders consider to be the best option and why?

Q.9: Are there any other options that Oftel should consider and how do these options rate against the proposed criteria?

Q.10: Do stakeholders have any comments on the text of the proposed modifications to the Annex to the General Conditions and the Plan as set out in Annex A?

Chapter 5

Consultation procedure

5.1 Oftel is seeking the views of stakeholders on the questions set out in this consultation document. The closing date for submission of comments is six weeks from the date of publication of this document, by close 21 April 2003. Following receipt and consideration of any comments, Oftel will publish a statement setting out its final decision on the future use of the legacy DQ numbers.

5.2 Although Oftel would normally expect to consult on significant policy issues such as the ones set out in this document for three months, Oftel is aware that there are exceptional circumstances in this particular case. There have already been significant discussions of the issues covered in this document at the appropriate Industry Groups (eg the Directory Enquiry Implementation Working Group) and with consumer representatives (at the Directory Enquiry Consumer Issues Sub-Group). Additionally, Oftel has been advised that implementation of some of the options set out in this document in time for the end of parallel running in August 2003 will require Oftel to publish its final decision as soon as possible, so that the Industry can begin putting the chosen solution in place promptly.

5.3 Clauses 44 and 56 of the Communications Bill require that the period within which representations may be made to the Director about any proposals to modify the General Conditions or the Plan respectively should be no less than one month after the day of publication of the notification of the proposal.

5.4 Therefore Oftel considers that a six week consultation period gives all stakeholders a reasonable opportunity to provide comments, whilst also maximising the time available to implement the chosen option and meeting the consultation requirements set out in the Communications Bill.

5.5 Responses are sought on both the generality of the issues set out in this document, and to the specific questions asked. Comments should be made in writing and sent to:

David Parsons
Oftel
50 Ludgate Hill
London EC4M 7JJ

fax: 020 7634 8893
e-mail: david.parsons@oftel.gov.uk

Further copies of this document

5.6 Paper copies of this document and more accessible formats such as large print, Braille, disc and audio cassette can be made available on request. Please contact Oftel’s Research and Information Unit by phoning 020 7634 8761 or by sending an e-mail to infocent@oftel.gov.uk.

Publication of representations made by stakeholders

5.7 In the interests of transparency, all representations will be published, except where respondents indicate that a response, or part of it, is confidential. Respondents are therefore asked to separate out any confidential material into a confidential annex which is clearly identified as containing confidential material. Oftel will take steps to protect the confidentiality of all such material from the moment that it is received at Oftel’s offices. However, in the interests of transparency, respondents should avoid applying confidential markings wherever possible.

5.8 Non confidential representations will be able to be viewed on Oftel’s website in the Publications section under Responses to Oftel consultations (see www.oftel.gov.uk/publications/responses/index.htm). They will also be able to be viewed at Oftel’s Research and Information Unit. Appointments must be made in advance by phoning 020 7634 8761 or sending an e-mail to infocent@oftel.gov.uk.

Cabinet Office code of practice on written consultation

5.9 Oftel considers that this document meets the Cabinet Office code of practice on written consultation documents with one exception. The code states that the standard minimum period for consultat