A consultation document issued by the Director General of Telecommunications

June 2001

Contents

Summary

Chapter 1 Introduction and background

Chapter 2 BT services

Chapter 3 Future regulation

Chapter 4 Guidance

Chapter 5 Consultation process

Annex A Draft licence condition

Annex B Draft generic consents

Annex C Draft individual consent

Glossary

Summary

S.1 The purpose of this consultation is to seek the views of industry and consumers regarding future regulation of the use of automatic calling equipment (ACE).

S.2 The use of ACE is currently regulated by the Use of Automatic Calling Equipment licence condition (the ACE Condition), which appears in all Public Telecommunications Operator (PTO) licences, the Self Provided Telecommunications Systems Licence (SPL), the Telecommunication Services Licence (TSL), and the International Simple Voice Resale (ISVR) Licence.

S.3 Oftel believes that consumers should be protected from the intrusion of unwanted automated calls, which can constitute an irritating invasion of privacy. The use of ACE has been specifically regulated because there is the potential for such abuse to take place on a very large scale. ACE enables a large number of calls to be made to a large number of recipients in a very short space of time and at relatively low cost.

S.4 Oftel is conducting this consultation following a request from BT that the Director General gives consent under the ACE Condition, for it to introduce the two services, Customer Initiated Line Testing (CILT) and Cleared not Closed (CNC), without first obtaining consent in writing from the recipients of the services. CILT is an automated service that tests a customer’s line following customers reporting a faulty line and requesting a line test. CNC is an automated service to obtain customer confirmation that a fault has been repaired. The nature of these services is such that it is not practicable for BT to obtain the written consent required by the ACE Condition and would otherwise be unable to offer these services to its customers without the Director General’s consent.

S.5 Having given consideration to the services that BT has requested consent for, Oftel considers that these represent services which offer clear consumer benefit and appear to have little potential for abuse of the kind that the ACE Condition was intended to prevent. As a result, Oftel has considered it appropriate to consult, not just specifically on the Director General’s consent requested by BT, but more widely on current regulation in this area.

S.6 The consultation addresses whether there remains a need for consent to be provided in writing, and, if not, whether a relaxation of this requirement would enable more products and services to be offered to consumers, including the two specific BT services, enabling them to receive the benefit of automated services should they wish to. Oftel is of the view that the retention of the requirement to obtain consent, albeit not in writing, means consumers would remain adequately protected. This approach would also follow the requirements regulating the use of ACE for direct marketing purposes as set out in the Telecommunications (Data Protection and Privacy) Regulations 1999, which are enforced by the Information Commissioner.

S.7 While there are three ways in which Oftel can remove the requirement for consent to be provided in writing (licence modification, generic consent, and individual consent), on balance, Oftel’s preferred option is a licence modification. For reasons of clarity and transparency, it is preferred that the removal of the requirement for consent to be in writing should apply to all services and be on the face of the licence.

S.8 Oftel invites comments by 30 September 2001.

Chapter 1

Introduction and background

Introduction

1.1 Oftel’s Achieving the best deal for telecoms consumers statement published in January 2000 sets out Oftel’s strategy to achieve its goal of the best deal for consumers in terms of choice, quality and value for money, with reference to a number of high level objectives and supporting principles. One of the underlying principles is for Oftel to ensure that regulation is kept to the minimum necessary to obtain the appropriate outcome and to ensure that it does not create disincentives for innovation in the provision of new services.

1.2 Oftel is carrying out this review following BT’s request that the Director General gives consent under the Use of Automatic Calling Equipment condition (the ACE Condition) in BT’s licence, for it to operate the two services, Customer Initiated Line Testing and Cleared not Closed, without first obtaining consent in writing from the recipients of the services. The nature of these services is such that BT is unable to obtain the written consent required by the ACE Condition and would therefore be unable to offer these services to its customers without the Director General’s consent.

1.3 Having given consideration to the services that BT has requested consent for, Oftel considers that these represent services which offer clear consumer benefit and appear to have little potential for abuse of the kind that the ACE Condition was intended to prevent. As a result, Oftel considers it appropriate to consult, not just specifically on the consent requested by BT, but more widely on current regulation in this area. The underlying consideration is whether, whilst ensuring that there remains adequate consumer protection against abuse, this condition may have the effect of unnecessarily inhibiting the development and launch of new products and services that could offer benefits to consumers.

Background

1.4 Automatic Calling Equipment (ACE) is telecommunications apparatus capable of automatically initiating a sequence of calls to more than one number.

1.5 Consumers should be protected from the intrusion of unwanted calls, which can constitute an irritating invasion of privacy. The use of ACE has been specifically regulated because there is the potential for such abuse to take place on a very large scale. ACE enables a large number of calls to be made to a large number of recipients in a very short space of time and at relatively low cost to the initiator of those calls.

1.6 The ACE Condition does not prohibit all calls using ACE, just those that result in a call not consisting of live speech, unless written consent has first been obtained from the recipient of the call. The ACE Condition does not prohibit the use of ACE where there is a live operator waiting to take the call dialled, as such practices are often used by organisations for reasons of efficiency. The ACE Condition is intended to protect consumers from being faced with a recorded message or a voice activated response, as being unable to enter into dialogue and obtain any additional information necessary can cause confusion and irritation.

1.7 The ACE Condition is intended to protect consumers from abuses, including:

• using ACE to deliver recorded messages;
• using ACE to initiate calls with insufficient operators available to take the calls when answered, resulting in customers receiving either a recorded message or just silence;
• using ACE to dial a series of numbers to identify fax machines, resulting in customers receiving fax tones or just silence; and
• using ACE to send unsolicited facsimile messages,

without obtaining the prior consent of the party called.

1.8 The ACE Condition appears as Condition 17 in all Public Telecommunications Operator (PTO) licences, as Condition 5 in the Self Provided Telecommunications Systems Licence (SPL), as Condition 9 in the Telecommunication Services Licence (TSL), and as Condition 9 in the International Simple Voice Resale (ISVR) Licence.

1.9 The Telecommunications (Data Protection and Privacy) Regulations 1999, regulate the use of ACE for direct marketing purposes and enforcement is the responsibility of the Information Commissioner. Therefore, where calls that would otherwise be caught by the ACE Condition are made for the purposes of direct marketing, they are no longer regulated by the ACE Condition. The ACE Condition explicitly states that it does not apply where the above regulations apply.

1.10 Oftel has dealt with very few cases concerning a breach of the ACE Condition by PTO licensees and has investigated more cases involving alleged breaches of the ACE Condition by organisations operating under the TSL and SPL.

1.11 In May 1998, Oftel issued a Final Order against the British Fax Directory (BFD) after finding that it had breached the ACE Condition in the TSL. The BFD had been making calls using ACE in order to identify fax numbers, without first obtaining the written consent of the recipient of the calls.

Chapter 2

BT Services

2.1 BT has approached Oftel about a number of new products and services to which the ACE Condition applies, but for which obtaining advance consent in writing is not possible. BT has sought the Director General’s consent, under the ACE Condition in its Licence, to waive the requirement to obtain consent in writing for the following services:

Customer Initiated Line Testing (CILT)

2.2 Customer Initiated Line Testing (CILT) is one of BT’s Automatic Customer Interface initiatives and is aimed at increasing the response rate to customer requests for a line test. Customers reporting a faulty line and requesting a line test will be asked a series of questions to identify them and the line that they are calling from. This will include a request for an alternative number in case the line fault precludes the customer being called back on the faulty line.

2.3 Customers will specifically be asked to consent to an automatic return call where a recorded message will provide details of whether there is a fault on the line and what action will be taken. If customers refuse consent, a BT advisor will call the customer back. Customers will provide the information requested and their consent by typing a number or speaking when prompted to do so by the recorded message. If the customer so consents, the return call to the customer will then be generated by ACE.

2.4 Certain types of faults will result in the caller automatically being transferred to an advisor. The caller will also be transferred to an advisor if they experience problems with providing details when prompted to do so by the automated message or refuse to accept the line test result. Only one call will be made and if there is no response to the call, it will not be repeated. In effect, the service replicates automatically the process that BT carries out manually at present.

2.5 It is unlikely that it was intended that the ACE Condition would prevent the introduction of such a service, which is aimed at benefiting the customer without raising the possibility of nuisance calls being made. The outgoing automated call will only be made to the customer who initiated the line test and has provided consent for such a call to be made. On the balance of consumer benefit and detriment, Oftel considers that CILT is an appropriate service to waive the requirement that consent be obtained in writing.

Cleared Not Closed (CNC) service

2.6 The Cleared not Closed (CNC) service is another of BT’s Automatic Customer Interface initiatives and is aimed at improving its repair handling programme by ensuring that customers are kept better informed. When customers report a fault on their line or with their telephone equipment to BT, the faults are logged onto a customer database and action is taken to rectify them. CNC is a status assigned to fault reports where BT believes that it has repaired the fault or has been unable to find a fault and the line tests clear, but BT has not received confirmation from the customer that they are satisfied that this is the case. Where no confirmation has been received, the fault report is kept on BT’s customer database for 10 days. If BT does not hear from the customer during this period, the fault report is closed.

2.7 BT is concerned that customers feel that they are not being kept adequately informed and is seeking to adopt a more pro-active approach to ensuring that customers are satisfied that reported faults have been repaired. The CNC service will attempt to do this by contacting consumers whose fault reports have been assigned the CNC status and confirming customer satisfaction.

2.8 When reporting a fault, a customer’s call will be answered by an operator who will raise the fault on the BT fault recording system. The customer will specifically be asked to consent to receiving an automatic call from BT, where a recorded message and voice prompt will ask them to confirm that their fault has been repaired. BT will periodically trawl through its customer database for faults that have been assigned the CNC status. ACE will then initiate calls to customers, who will be played a recorded message asking whether they are able and willing to deal with the call.

2.9 If someone who is unwilling or unable to deal with the issue (for example a child) answers the call, the call will potentially be terminated. If the customer accepts the call, they will be asked to respond to a number of prompts, designed to assess whether the fault has been repaired properly, by typing a number on their keypad. Depending on the responses, the system will take action to close the fault report or transfer the customer to an advisor for further assistance. Such calls will only be made during particular hours of the day and not at all on Sundays.

2.10 Again, it is unlikely that the ACE Condition was ever intended to prevent the introduction of such a service, which has clear consumer benefit and raises little possibility of nuisance calls being made. The outgoing automated call will only be made to the customer who initiated the line test and has provided consent for such a call to be made. This service is different to CILT in that the call may be made some time after the customer originally reported the fault. As a result, someone other than the customer who reported the fault may answer the call, the customer may not immediately recall reporting the fault or the call may be made at an inconvenient time.

2.11 Oftel considers that the time restrictions and the fact that customers will first be asked whether they accept the call, are sufficient to ensure that these calls will not constitute a nuisance. On the balance of consumer benefit and detriment, Oftel considers that CNC is an appropriate service to waive the requirement that consent be obtained in writing.

Chapter 3

Future regulation

3.1 The nature of the two BT services suggest that there may be appropriate and legitimate services that the ACE Condition currently prevents operators from providing. Oftel is of the view that operators should be able to provide such services where they offer consumer benefit and have little potential for abuse. Oftel therefore considers that, at least in respect of the two BT services considered in Chapter 2, the regulation of ACE should be relaxed. The regulatory options available to Oftel are discussed below.

Removing the requirement to obtain consent altogether

3.2 Oftel has considered removing the requirement to obtain consent altogether and replacing it with an obligation in the ACE Condition that only requires the licensee to cease using ACE to send messages where the called party has requested it to do so. Alternatively, the ACE Condition could mandate an opt-out scheme similar to the Telephone Preference Service and Fax Preference Service, where operators would be prohibited from contacting those persons registered with the scheme. In both cases, the onus would be on the consumer to take action if they no longer wanted to receive such calls.

3.3 The absence of consent altogether increases the possibility that the call will be an unwanted call, and cause the confusion and nuisance that the ACE condition was intended to prevent, even though the called party could prevent such a call being made again. As the use of ACE enables a large number of calls to be made to a large number of recipients, although each recipient may only receive one unwanted call, the cumulative effect is significant.

3.4 Further, the Telecommunications (Data Protection and Privacy) Regulations 1999 (the Regulations), require that consent be obtained where ACE is used for the purposes of direct marketing. It would therefore be confusing to have marketing and non-marketing uses of ACE regulated differently.

3.5 For the reasons outlined above, Oftel does not consider it appropriate to remove the requirement to obtain consent altogether.

Q1 Do you agree that it is not appropriate to remove the requirement to obtain consent altogether?

Removing the requirement to obtain consent in writing

3.6 Oftel considers that the most appropriate way to deal with recent developments and current regulation is to remove the requirement for consent to be obtained in writing. This would enable more products and services to be offered, including CILT and CNC, enabling consumers to receive the benefit of automated services should they wish to. In Oftel’s view, there appears to be little difference in terms of potential consumer detriment on the basis of whether consent is provided orally or in writing, as long as it is actually provided. Although from an evidential point of view, should consent be disputed, written consent will provide more certainty. The retention of the requirement to obtain consent, albeit not in writing, means the calls are more likely to be wanted calls.

3.7 Further, as stated above, it is appropriate for Oftel’s regulation to follow the requirements regulating the use of ACE for direct marketing purposes as set out in the Regulations.

Q2 Do you agree that it is appropriate to remove the requirement that consent be provided in writing, on the basis that it would not increase the risk of abuse?

3.8 There are three ways in which Oftel can remove the requirement for consent to be obtained in writing:

• Licence modification;
• Generic consent; and
• Individual consent.

Licence modification

3.9 A licence modification would simply remove the words ‘in writing’ from Condition 17.2(a) in all PTO licences. A draft licence condition is attached at Annex A.

3.10 This would mean that operators would no longer have to obtain consent in writing for all uses of ACE to which the ACE Condition applies.

3.11 If responses to this consultation reveal a broad consensus to modify the ACE Condition as proposed, Oftel will proceed with modifications to the ACE Condition in all PTO licences, which will include a further period of formal, statutory consultation. Oftel anticipates that licence modifications would take effect by the end of the year. The Department of Trade and Industry will take the earliest opportunity to make similar changes to the ACE Condition in the SPL, TSL and ISVR licence.

Generic Consent

3.12 Whereas a licence modification would remove the requirement to obtain written consent for all uses of ACE, the issuing of a generic consent would relate only to a specifically defined class of product, service or use. The generic consent would remove the need for the licensee to seek a waiver of the requirement to obtain consent in writing on each and every occasion that it wished to introduce a product, service or use that met those specifications.

3.13 It would only be necessary to issue a generic consent in the event that there are strong objections to a licence modification. If this is the case, Oftel proposes to issue a generic consent covering services that have been provided following a request for such services from the customer. These services have been defined as Customer Initiated Services - where the customer having made a call, for example requesting a line test or reporting a fault, expects a return call to be made by means of ACE. It is envisaged that this would cover one-off services and not the ongoing provision of a service.

3.14 In addition, to ensure further consumer protection, it is proposed that the generic consent be conditional on operators providing Calling Line Identification (CLI) that enables identification of the number from which a call is being made and, where a message is recorded, the caller identifying itself and providing contact details. This would enable the recipient of the call to contact the caller should they wish to obtain any additional information about the call.

3.15 As an alternative to a licence modification, the Director proposes to issue the generic consents to SPL, TSL ISVR and PTO licensees found in Annex B to this document.

Individual Consent

3.16 If there are strong objections to the licence modification or the issuing of generic consent to remove the requirement to obtain consent in writing for specifically defined services, Oftel will consider each request for a waiver of this requirement on a case-by-case basis.

3.17 When deciding whether or not to issue a consent, the Director General will take into account a number of factors. These include the potential benefits and costs to consumers and the scope for abuse of the service. The Director General has assessed the services described in Chapter 2 against these criteria and proposes to waive the requirement for BT to obtain consent in writing for those services. Again, to ensure further consumer protection, it is proposed that the individual consent be conditional on BT providing CLI and, where a message is recorded, identifying itself and providing contact details.

3.18 The proposed consent can be found in Annex C.

Preferred option

3.19 On balance, Oftel’s preferred option is a licence modification. The removal of the requirement for consent to be in writing appears to provide little risk of consumer detriment and would bring the ACE Condition in line with similar provisions for the purposes of direct marketing contained in the Regulations. Operators would still be required to obtain consent from all parties called and the fact that consumers must give such consent should provide them with sufficient protection. For reasons of clarity and transparency, it is preferred that the removal of the requirement for consent to be in writing should apply to all services and be on the face of the licence.

Q3 Do you agree that the most appropriate option would be a licence modification to remove the need for consent to be in writing and that this would continue to provide sufficient consumer protection?

3.20 If the above licence modification is considered too wide and that it would open up this area to potential abuse, then the next preferred option would be to issue a generic consent limited to specifically defined services, where Oftel considers the risk of abuse to be virtually non-existent.

Q4 Do you consider a generic consent covering Customer Initiated Services to be a more appropriate method of allowing services to be offered while ensuring that there is no potential for abuse?

Q5 Do you agree that Customer Initiated Services is an appropriate group of services to limit a generic consent to?

Q6 Do you consider that a generic consent should be restricted to cover fewer types of services or expanded to cover more services than Customer Initiated Services?

3.21 Oftel would like to avoid the situation of having to issue individual consents each time a licensee wants to offer a new service which has little scope for abuse.

Q7 Do you consider that the issuing of an individual consent is a more appropriate method of allowing services to be offered while ensuring that there is no potential for abuse?

Q8 If so, do you consider that the Director General should specifically give consent to BT to provide CILT and CNC services?

Chapter 4

Guidance

The meaning of ‘consent’

4.1 The Office of the Information Commissioner’s Introduction to the 1998 Act provides the following guidance on ‘consent’ in relation to consent for the processing of data for Data Protection Act purposes:

• There must be some active communication between the parties. Consent cannot be inferred from non-response to a communication;
• The adequacy of any consent or purported consent must be evaluated; for example, consent which was later found to be given under duress or on the basis of misleading information would not be valid;
• When consent has been given it will not necessarily endure forever. Individuals may withdraw consent;
• Consent must be appropriate to the particular circumstances. In some cases implied consent may be sufficient, in others nothing less than clear written consent will suffice; and
• Consent must be both specific and informed.

4.2 Oftel considers the above guidance to be appropriate for the interpretation of ‘consent’ for the purposes of the ACE Condition. In the circumstances relating to the use of ACE to which the ACE condition applies, Oftel does not consider written consent to be necessary, however, implied consent is likely to be insufficient.

Provision of CLI and contact details

4.3 Oftel would expect that operators provide CLI when making calls using ACE, and, where a message is recorded, identify themselves and provide contact details. This would enable the recipient of the call to contact the caller should they wish to obtain any information about the call.

Chapter 5

Consultation process

5.1 The initial consultation will run until 30 September 2001. A further two weeks will be allowed for the submission of comments on responses.

5.2 All comments should be made in writing and sent to:

Selina Chadha

Oftel
50 Ludgate Hill
London EC4M 7JJ

Fax: 020 7634 8784
e-mail: selina.chadha@oftel.gov.uk

5.3 Written comments will be made publicly available in Oftel’s Research and Intelligence Unit except where the respondents indicate that their response, or parts 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. 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

5.4 Oftel has a free e-mail based mailing list to help people stay informed about the work that Oftel is doing. Each time an Oftel document is published and placed on Oftel’s web site subscribers to the list received an e-mail informing them about the document.

Alternative formats

5.5 Copies of the full consultative document are available on disk. The Executive summary is available in large print, Braille and tape format. It is also available in Welsh.

5.6 Please contact the Oftel Research and Intelligence Unit on 020 7634 8761, or by e-mail at infocent@oftel.gov.uk or call textphone 020 7634 8769 for more information.

The consultation criteria

5.7 Oftel considers that this document meets the Cabinet Office code of practice on written consultation documents. The code is reproduced below for convenience. If you have any comments or complaints about this consultation process please contact:

Oftel Co-ordinator for the code of practice:

Robert Jex
Oftel
50 Ludgate Hill
London EC4M 7JJ
e-mail: rob.jex@oftel.gov.uk
tel: 020 7634 5340
Fax: 020 7634 8943

1. Timing of consultation should be built into the planning process for a policy (including legislation) or service from the start, so that it has the best prospect of improving the proposals concerned, and so that sufficient time is left for it at each stage.

2. It should be clear who is being consulted, about what questions, in what timescale and for what purpose.

3. A consultation document should be as simple and concise as possible. It should include a summary, in two main pages at most, of the main questions it seeks views on. It should make it as easy as possible for readers to respond, make contact or complain.

4. Documents should be made widely available, with the fullest use of electronic means (though not to the exclusion of others), and effectively drawn to the attention of all interested groups and individuals.

5. Sufficient time should be allowed for considered responses from all groups with an interest. Twelve weeks should be the standard minimum period for consultation.

6. Responses should be carefully and open-mindedly analysed, and the results made widely available, with an account of the views expressed, and reasons for decisions finally taken.

7. Departments should monitor and evaluate consultations, designating a consultation co-ordinator who will ensure that all the lessons are disseminated.

Annex A

The Use of Automatic Calling Equipment condition appears as Condition 17 in all Public Telecommunications Operator (PTO) Licences, Condition 5 in the Self Provided Telecommunications Systems Licence (SPL), Condition 9 in the Telecommunications Services Licence (TSL) and Condition 9 in the International Simple Voice Resale (ISVR) Licence.

Condition X

USE OF AUTOMATIC CALLING EQUIPMENT

X.1 This Condition applies if the Applicable Systems, or any telecommunication apparatus comprised in them:

X.2 The Licensee shall, except insofar as the Director consents otherwise:

[X.3 This Condition does not apply to any services which the Licensee supplies pursuant to Condition 19.]

X.4 Paragraph X.2(a) shall have no application where regulation 6 of the Telecommunications (Data Protection and Privacy) Regulations 1999 (S.I.

1999/2093)(use of automated calling systems for direct marketing purposes) applies.

Annex B

The Use of Automatic Calling Equipment condition can be found in four types of Licences, and separate generic consents will be required for each. The Licences, their respective condition numbers and where they can be found in this Annex are listed below.

Part I:

The Class Licence for the running of Self Provided Telecommunications Systems (SPL): Condition 5.

Part II:

The Class Licence to run branch systems to provide Telecommunication Services (TSL): Condition 9

Part III:

The Class Licence to run branch systems to provide International Simple Voice Resale (ISVR) Services: Condition 9

Part IV:

Public Telecommunications Operator (PTO) Licences: Condition 17

Part I

Telecommunications Act 1984

Consent under Condition 5 of the Self Provided Telecommunications Systems Licence

WHEREAS:

2 Condition 5.2 of Part 2 of Schedule 1 of the Licence requires the Licensee (except in so far as the Director General of Telecommunications (the "Director") otherwise consents), to secure that the Applicable Systems are used to initiate calls to transmit Messages of the description in Condition 5.1(b) only to telecommunications systems which are run by the Licensee or by persons who have consented in writing to receive such calls and which are identified by reference to Numbers which are used to make calls to those telecommunication systems;

3 Condition 5.1 of Part 2 of Schedule 1 of the Licence applies if the Applicable Systems, or any telecommunications apparatus comprised in them:

	a) are capable of automatically initiating a sequence of calls to each of more than one destination in accordance with instructions stored in the Applicable Systems or telecommunication apparatus comprised in them; and
	b) are capable of transmitting, for reception by persons at some or all of the destinations so called:

	i) sounds which are not live speech; or
	ii) sounds which are for the purpose of the transmission or reception of facsimile messages

and where one or more of the calls referred to in paragraph 3(a) above:

	A) constitutes Messages comprising matter that has been recorded;
	B) is intended or reasonably expected by the Licensee to be one which does not result in any Message consisting of live speech being delivered to the recipient of the call; or
	C) is intended or reasonably expected by the Licensee to identify whether apparatus addressed by the Number so called is capable of the transmission or reception of facsimile messages.

4 On 7 February 2001 BT requested that the Director provide his consent, under Condition 17.2 of BT’s licence, to the introduction of a service of the sort defined as Customer Initiated Services in Schedule 2 to this Consent, without first obtaining the written consent of all persons who will receive such calls;

5 In response to BT’s request, the Director has conducted a consultation on the need to obtain the written consent of all persons who will receive calls made using automatic calling equipment and the need for consent under the Use of automatic calling equipment condition contained in all relevant licences. As a result of this consultation, the Director has concluded that the introduction of Customer Initiated Services offers benefits to customers and that the potential for abuse of such services is minor. The Drector considers it appropriate and proportionate to apply this Consent in a non-discriminatory manner and therefore it will apply to all relevant licensees. The Director has concluded that although licensees must obtain the consent of persons who will receive Customer Initiated Services, that consent need not be in writing.

NOW THE DIRECTOR CONSENTS AS FOLLOWS:

(1) Subject to paragraph (2) of this Consent, where the Licensee provides a Customer Initiated Service which falls under Condition 5 of the Licence, the Licensee must obtain the consent of persons who will receive a call made using automatic calling equipment, but that consent need not be in writing.

(2) This Consent is conditional on any Customer Initiated Service including a Message which identifies the Licensee, a contact number for the Licensee and calling line identification services.

(3) This Consent applies unless the Director determines otherwise.

(4) Unless the context otherwise requires, the terms used in this Consent have the same meanings as in the Licence.

DAVID EDMONDS

Director General of Telecommunications

[ ] 2001

Schedule 1

The Licence for the running of Self-Provided Telecommunication Systems is granted to all persons except any person in respect of whom the Secretary of State or the Director has revoked the Licence in accordance with Schedule 2 (of the Licence) and whose names and particulars are for the time being included in a list kept for the purpose by the Director and made available by him for inspection by the general public.

The Licence came into force on 9 April 2001 and is of 25 years’ duration, unless previously revoked in accordance with Schedule 2 to the Licence.

Schedule II

Customer Initiated Service

For the purposes of this Consent, a Customer Initiated Service is a service that is requested by a customer and which results in a call being made to that customer by means of automatic calling equipment.

Part II

Telecommunications Act 1984

Consent under Condition 9 of the Telecommunications Services Licence

WHEREAS:

1 On 9 April 2001 the Secretary of State granted a class licence (the "Licence") under section 7 of the Telecommunications Act 1984 (the "Act") to all persons described in Schedule I to this Consent (the "Licensee") to run branch systems to provide telecommunications services for the running of the telecommunications systems authorised by the Licence (the "Applicable Systems");

2 Condition 9.2 of Part 2 of Schedule 1 of the Licence requires the Licensee (except in so far as the Director General of Telecommunications (the "Director") otherwise consents), to secure that the Applicable Systems are used to initiate calls to transmit Messages of the description in Condition 9.1(b) only to telecommunications systems which are run by the Licensee or by persons who have consented in writing to receive such calls and which are identified by reference to Numbers which are used to make calls to those telecommunication systems;

3 Condition 9.1 of Part 2 of Schedule 1 of the Licence applies if the Applicable Systems, or any telecommunications apparatus comprised in them:

4 On 7 February 2001 BT requested that the Director provide his consent, under Condition 17.2 of BT’s licence, to the introduction of a service of the sort defined as Customer Initiated Services in Schedule 2 to this Consent, without first obtaining the written consent of all persons who will receive such calls;

5 In response to BT’s request, the Director has conducted a consultation on the need to obtain the written consent of all persons who will receive calls made using automatic calling equipment and the need for consent under the Use of automatic calling equipment condition contained in all relevant licences. As a result of this consultation, the Director has concluded that the introduction of Customer Initiated Services offers benefits to customers and that the potential for abuse of such services is minor. The Director considers it appropriate and proportionate to apply this Consent in a non-discriminatory manner and therefore it will apply to all relevant licensees. The Director has concluded that although licensees must obtain the consent of persons who will receive Customer Initiated Services, that consent need not be in writing.

NOW THE DIRECTOR CONSENTS AS FOLLOWS:

(1) Subject to paragraph (2) of this Consent, where the Licensee provides a Customer Initiated Service which falls under Condition 9 of the Licence, the Licensee must obtain the consent of persons who will receive a call made using automatic calling equipment, but that consent need not be in writing.

(2) This Consent is conditional on any Customer Initiated Service including a Message which identifies the Licensee, a contact number for the Licensee and calling line identification services.

(3) This Consent applies unless the Director determines otherwise.

(4) Unless the context otherwise requires, the terms used in this Consent have the same meanings as in the Licence.

David Edmonds

Director General of Telecommunications

[ ] 2001

Schedule I

The Licence to run branch systems to provide telecommunications services is granted to all persons except:

The Licence came into force on 9 April 2001 and is of 25 years’ duration unless previously revoked in accordance with Schedule 2 to the Licence.

Schedule II

Customer Initiated Service

For the purposes of this Consent, a Customer Initiated Service is a service that is requested by a customer and which results in a call being made to that customer by means of automatic calling equipment.

Part III

Telecommunications Act 1984

Consent under Condition 9 of the International Simple Voice Resale Licence

WHEREAS:

1 On 1 November 2000 the Secretary of State granted a class licence (the "Licence") under section 7 of the Telecommunications Act 1984 (the "Act") to all persons described in Schedule I to this Consent (the "Licensee") to run branch systems to provide International Simple Voice Resale Services for the running of the telecommunications systems authorised by the Licence (the "Applicable Systems");

3 Condition 9.1 of Part 2 of Schedule 1 of the Licence applies if the Applicable Systems, or any telecommunications apparatus comprised in them:

4 On 7 February 2001 BT requested that the Director provide his consent, under Condition 17.2 of BT’s licence, to the introduction of a service of the sort defined as Customer Initiated Services in Schedule 2 to this Consent, without first obtaining the written consent of all persons who will receive such calls;

5 In response to BT’s request, the Director has conducted a consultation on the need to obtain the written consent of all persons who will receive calls made using automatic calling equipment and the need for consent under the Use of automatic calling equipment condition contained in all relevant licences. As a result of this consultation, the Director has concluded that the introduction of Customer Initiated Services offers benefits to customers and that the potential for abuse of such services is minor. The Director considers it appropriate and proportionate to apply this Consent in a non-discriminatory manner and therefore it will apply to all relevant licensees. The Director has concluded that although licensees must obtain the consent of persons who will receive Customer Initiated Services, that consent need not be in writing.

NOW THE DIRECTOR CONSENTS AS FOLLOWS:

(1) Subject to paragraph (2) of this Consent, where the Licensee provides a Customer Initiated Service which falls under Condition 9 of the Licence, the Licensee must obtain the consent of persons who will receive a call made using automatic calling equipment, but that consent need not be in writing.

(2) This Consent is conditional on any Customer Initiated Service including a Message which identifies the Licensee, a contact number for the Licensee and calling line identification services.

(3) This Consent applies unless the Director determines otherwise.

(4) Unless the context otherwise requires, the terms used in this Consent have the same meanings as in the Licence.

DAVID EDMONDS

Director General of Telecommunications

[ ] 2001

Schedule I

The class of persons to whom the Licence to run branch systems to provide International Simple Voice Resale Services is granted is any person who has provided to the Secretary of State details of their name and particulars as required by the Licence and whose names and particulars are for the time being entered upon a list kept for the purpose by the Director and made available by him for inspection by the general public.

The Licence is not granted to any Specified Telecommunications Operator in respect of the geographical area in which that Operator is authorised to run a public telecommunications system.

The Licence came into force on 1 November 2000 and is of 25 years’ duration unless previously revoked in accordance with Schedule 2 to the Licence.

Schedule II

Customer Initiated Service

For the purposes of this Consent, a Customer Initiated Service is a service that is requested by a customer and which results in a call being made to that customer by means of automatic calling equipment.

Part IV

Telecommunications Act 1984

Consent under Condition 17 of the Public Telecommunications Operator Licence

WHEREAS:

1 The Secretary of State has granted a licence (the "Licence") to all those listed in Schedule I to this Consent (the "Licensee") under section 7 of the Telecommunications Act 1984 (the "Act") for the running of the telecommunications systems specified in Annex A to the Licence (the "Applicable Systems");

2 Condition 17.2 of the Licence requires the Licensee (except in so far as the Director General of Telecommunications (the "Director") otherwise consents), to secure that the Applicable Systems are used to initiate calls to transmit Messages of the description in Condition 17.1(b) only to telecommunications systems which are run by the Licensee or by persons who have consented in writing to receive such calls and which are identified by reference to Numbers which are used to make calls to those telecommunication systems;

3 Condition 17.1 applies if the Applicable Systems, or any telecommunications apparatus comprised in them:

4 On 7 February 2001 BT requested that the Director provide his consent, under Condition 17.2 of BT’s licence, to the introduction of a service of the sort defined as Customer Initiated Services in Schedule 2 to this Consent, without first obtaining the written consent of all persons who will receive such calls;

5 In response to BT’s request, the Director has conducted a consultation on the need to obtain the written consent of all persons who will receive calls made using automatic calling equipment and the need for consent under the Use of automatic calling equipment condition contained in all relevant licences. As a result of this consultation, the Director has concluded that the introduction of Customer Initiated Services offers benefits to customers and that the potential for abuse of such services is minor. The Director considers it appropriate and proportionate to apply this Consent in a non-discriminatory manner and therefore it will apply to all relevant licensees. The Director has concluded that although licensees must obtain the consent of persons who will receive Customer Initiated Services, that consent need not be in writing.

NOW THE DIRECTOR CONSENTS AS FOLLOWS:

(1) Subject to paragraph (2) of this Consent, where the Licensee provides a Customer Initiated Service which falls under Condition 17 of the Licence, the Licensee must obtain the consent of persons who will receive a call made using automatic calling equipment, but that consent need not be in writing.

(2) This Consent is conditional on any Customer Initiated Service including a Message which identifies the Licensee, a contact number for the Licensee and calling line identification services.

(3) This Consent applies unless the Director determines otherwise.

(4) Unless the context otherwise requires, the terms used in this Consent have the same meanings as in the Licence.

DAVID EDMONDS

Director General of Telecommunications

[ ] 2001

Schedule I

[List of all PTO Licence holders (please see the Oftel public register for current list)]

Schedule II

Customer Initiated Service

For the purposes of this Consent, a Customer Initiated Service is a service that is requested by a customer and which results in a call being made to that customer by means of automatic calling equipment.

Annex C

LICENCE OF BRITISH TELECOMMUNICATIONS PLC

CONDITION 17: CONSENT

WHEREAS:

1 On 22 June 1984 the Secretary of State granted a licence ("the Licence") under Section 7 of the Telecommunications Act 1984 ("the Act") to British Telecommunications. By virtue of Section 109 of, and paragraph 20 of Schedule 5 to, the Act, the Licence has effect as if granted to British Telecommunications PLC ("the Licensee");

2 Condition 17.2 of the Licence requires the Licensee (except in so far as the Director General of Telecommunications (the "Director") otherwise consents), to secure that the Applicable Systems are used to initiate calls to transmit Messages of the description in Condition 17.1(b) only to telecommunications systems which are run by the Licensee or by persons who have consented in writing to receive such calls and which are identified by reference to Numbers which are used to make calls to those telecommunication systems;

3 Condition 17.1 applies if the Applicable Systems, or any telecommunications apparatus comprised in them:

4 On 7 February 2001, BT requested that the Director provide his consent under Condition 17.2 of its Licence, to the introduction of the Customer Initiated Line Testing service, without first obtaining the written consent of all persons who will receive such calls. On 4 May 2001, BT also sought the same consent for the Cleared Not Closed service;

5 In response to BT’s request, the Director has conducted a consultation on the need to obtain the written consent of all persons who will receive calls made using automatic calling equipment and the need for consent under the Use of automatic calling equipment condition contained in all relevant licences. As a result of this consultation, the Director has concluded that the introduction of the Customer Initiated Line Testing service and the Cleared not Closed service offers benefits to customers and that the potential for abuse of such services is minor. The Director has concluded that although BT must obtain the consent of persons who will receive Customer Initiated Line Testing service and the Cleared not Closed service, that consent need not be in writing.

NOW THE DIRECTOR CONSENTS AS FOLLOWS:

(1) Subject to paragraph (2) of this Consent, where the Licensee provides the Customer Initiated Line Testing service or the Cleared Not Closed service, the Licensee must obtain the consent of persons who will receive the call made using automatic calling equipment but that consent need not be in writing.

(2) This Consent is conditional on the services referred to in (1) above including a Message which identifies the Licensee, a contact number for the Licensee and calling line identification services.

(3) This Consent applies unless the Director determines otherwise.

(4) Unless the context otherwise requires, the terms used in this Consent have the same meanings as in the Licence.

DAVID EDMONDS

Director General of Telecommunications

DATE 2001

Glossary

ACE Automatic calling equipment: Equipment or apparatus capable of automatically initiating a sequence of calls to more than one destination and are capable of transmitting sounds which are not live speech or facsimile messages.

CLI (Calling Line Identification): A facility that enables identification of the number from which a call is being made.

CILT: Customer Initiated Line Testing

CNC: Cleared not Closed