Annex A
NOTIFICATION OF PROPOSALS UNDER REGULATION 6 OF THE ELECTRONIC COMMUNICATIONS (MARKET ANALYSIS) REGULATIONS 200

1. The Director General of Telecommunications (‘the Director’), in accordance with regulation 6 of the Electronic Communications (Market Analysis) Regulations 2003 (S.I. 2003/330) (‘the Regulations’), hereby makes the following proposals for identifying markets, making market power determinations and the setting of market power conditions.

2. The Director is proposing to identify the following markets for the purpose of making a market power determination:

(b) Fixed geographic call termination provided by Kingston Communications (Hull) plc, whose registered company number is 2150618, including any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989 (‘Kingston’); and

3. The Director is proposing to make market power determinations that the following persons have significant market power in relation to the markets referred to in paragraph 2 above:

(a) in relation to the market in sub-paragraph (a), BT;

(b)in relation to the market in sub-paragraph (b), Kingston; and

(c)in relation to each of the markets in sub-paragraph (c), the corresponding person set out at Annex 1 of Schedule 3 to this Notification which provides the public telephone network in question.

5. The effect of, and the Director’s reasons for making, the proposals to identify the markets set out in paragraph 2 above are contained in chapter 3 of the consultation document published with this Notification.

6. The effect of, and the Director’s reasons for making, the proposals to make the market power determinations set out in paragraph 3 above are contained in chapter 4 of the consultation document published with this Notification.

7. The effect of, and the Director’s reasons for making, the proposals to set the market power conditions set out in Schedules 1, 2 and 3 to this Notification are contained in chapter 5 for BT and chapter 6 for all other persons of the consultation document published with this Notification.

8 In identifying and analysing the markets referred to in paragraph 2 above, and in considering whether to make the proposals set out in this Notification, the Director has taken due account of all applicable guidelines and recommendations which have been issued or made by the European Commission in pursuance of a Community instrument, and relate to market identification and analysis or the determination of what constitutes significant market power, in accordance with Regulation 5 (2) of the regulations.

9. The Director considers that the proposed market power conditions referred to inparagraph 4 above comply with, and are necessary for satisfying requirements in, the provisions of the Directives, as appropriate and relevant to each of such market power conditions, referred to in regulation 6 (8) of the Regulations.

10. Representations may be made to the Director about any of the proposals set outin this Notification and the accompanying consultation document by 30 April 2003.

11. Copies of this Notification have been sent to the Secretary of State, the European Commission, and such of the regulatory authorities of other Member States as the Director thinks fit.

DAVID ALBERT EDMONDS

DIRECTOR GENERAL OF TELECOMMUNICATIONS

14 March 2003

SCHEDULE 1

The conditions proposed to be imposed on BT under regulation 6(4) of the Electronic Communications (Market Analysis) Regulations 2003 as a result of the analysis of the fixed geographic call termination market in which BT has been found to have significant market power

Part 1: Definitions and Interpretation of these conditions

1. These conditions shall apply to the market for fixed geographic call termination provided by the Dominant Provider ("the Market").

2. For the purpose of interpreting this Schedule the following definitions shall apply:

"Act" means the Communications Act 2003

"Access Charge Change Notice" has the meaning given to it in Condition BA6.2;

"Controlling Percentage" is to be determined in accordance with Condition BA4.3.

"Director" means the Director General of Telecommunications as appointed under section 1 of the Telecommunications Act 1984;

"Dominant Provider" means British Telecommunications Plc whose registered company number is 1800000, and any British Telecommunications plc subsidiary or holding company, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

‘Exchange Line’ means apparatus comprised in the Dominant Provider’s Electronic Communications Network and installed for the purpose of connecting a telephone exchange run by the Dominant Provider to a Network Termination Point comprised in Network Termination and Testing Apparatus installed by the Dominant Provider for the purpose of providing Electronic Communications Services at the premises at which the Network Termination and Testing Apparatus is located;

"Fixed Call Termination Wholesale Service" means an Electronic Communications Service provided by the Dominant Provider from (and over) the local exchange to (but not including the conveyance of Signals over) an Exchange Line;

"Network Component" means, to the extent they are used in the Market, the network components specified at Annex A to this Schedule and as amended from time to time by the Dominant Provider with the consent of the Director and/or as amended from time to time as the Director may direct.

"Network Termination Point" means the physical point at which a Subscriber is provided with access to a Public Electronic Communications Network and, where it concerns Electronic Communications Networks involving switching or routing, that physical point is identified by means of a specific network address, which may be linked to the Telephone Number or name of a Subscriber. Where a Network Termination Point is provided at a fixed position on Served Premises it shall be within an item of Network Termination and Testing Apparatus;

"Network Termination and Testing Apparatus" means an item of Apparatus comprised in an Electronic Communications Network installed in a fixed position on Served Premises which enables:

(a) Approved Apparatus to be readily connected to, and disconnected from, the Network;

(b) the conveyance of Signals between such Approved Apparatus and the Network;

(c) the due functioning of the Network to be tested,

but the only other functions of which, if any, are:

(i) to supply energy between such Approved Apparatus and the Network;

(ii) to protect the safety or security of the operation of the Network; or

(iii) to enable other operations exclusively related to the running of the Network to be performed or the due functioning of any system to which the Network is or is to be connected to be tested (separately or together with the Network);

"Reference Offer" means the terms and conditions on which the Dominant Provider is willing to enter into an Access Contract;

"Relevant Year" means any of the two periods of 12 months beginning on 1^st October starting with 1^st October 2003 and ending on 30^th September 2005;

"Retail Prices Index" means the index of retail prices compiled by an agency or a public body on behalf of Her Majesty’s Government or a governmental department from time to time in respect of all items (which is the Office for National Statistics at the time of publication of this Notification);

"RPI" means the amount of the change in the Retail Prices Index in the period of 12 months ending on 30^th June immediately before the beginning of that Year, expressed as a percentage (rounded to two decimal places) of that Index as at the beginning of that period;

"Served Premises" means a single set of premises in single occupation where

Apparatus has been installed for the purpose of the provision of Electronic

Communications Services by means of an Electronic Communications Network at those premises;

"Third Party" means a person providing a Public Electronic Communications Network;

"Transfer Charge" means the charge or price that is applied, or deemed to be applied, by the Dominant Provider to itself for the use or provision of an activity or group of activities. For the avoidance of doubt such activities or group of activities include, amongst other things, products and services provided from, to or within the Market and the use of Network Components in that Market.

"Usage Factor" means the average usage by any Communications Provider (including the Dominant Provider itself) of each Network Component in using or providing a particular product or service or carrying out a particular activity.

"Wholesale Service" means any service provided by any Public Electronic Communications Network to any other provider of a Public Electronic Communications Network for the purpose of providing Public Electronic Communications Services;

3. Except insofar as the context otherwise requires, words or expressions shall have the meaning assigned to them and otherwise any word or expression shall have the same meaning as it has in the Act.

4. The Interpretation Act 1978 shall apply as if each of the conditions were an Act of Parliament.

5. Headings and titles shall be disregarded.

Condition BA1 – Requirement to provide network access on reasonable request

BA1.1 The Dominant Provider shall provide Network Access to every Third Party who reasonably requests in writing such Network Access and such Network Access as the Director may direct from time to time.

BA1.2 The provision of Network Access in accordance with paragraph BA1.1 shall occur as soon as reasonably practicable and shall be provided on fair and reasonable terms, conditions and charges and on such terms, conditions and charges as the Director may from time to time direct.

BA1.3 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

BA2.1 The Dominant Provider shall not unduly discriminate against particular persons or against a particular description of persons, in relation to matters connected with Network Access.

BA2.2 In this Condition, the Dominant Provider may be deemed to have shown undue discrimination if it unfairly favours to a material extent an activity carried on by it so as to place at a competitive disadvantage persons competing with the Dominant Provider.

Condition BA3 – Basis of charges

BA3.1 Unless the Director directs otherwise from time to time, the Dominant Provider shall secure, and shall be able to demonstrate to the satisfaction of the Director, that each and every charge offered, payable or proposed for Network Access covered by Condition BA1 are reasonably derived from the costs of provision based on a forward looking incremental cost approach and allowing an appropriate mark up for the recovery of common costs and an appropriate return on capital employed.

BA3.2 For the avoidance of any doubt, where the charge offered, payable or proposed for Network Access covered by Condition BA1.1 is for a service which is subject to a price control under Condition BA1, the Dominant Provider shall secure, and shall be able to demonstrate to the satisfaction of the Director, that such a charge is cost-oriented, that is to say, the level of the charge or group of charges shall not be below a limit calculated by the use of long-run incremental cost, nor shall it be above a limit set by the stand-alone cost, of providing the service or group of services in question.

BA3.3 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

BA4.1 Without prejudice to the generality of Condition BA3, and subject to paragraphs BA4.4 and BA4.5, the Dominant Provider shall take all reasonable steps to secure that, during any Relevant Year, the Percentage Change (determined in accordance with paragraph BA4.2) in the aggregate of charges for Fixed Call Termination Wholesale Services is not more than the Controlling Percentage (determined in accordance with paragraph BA4.3).

BA4.2 The Percentage Change shall be calculated by employing the following formula:

where:

C is the Percentage Change in charges for Fixed Call Termination Wholesale Service(s);

_n= the number of Fixed Call Termination Wholesale Service(s);

R_(t-1)j is the revenue from Fixed Call Termination Wholesale Service(s) in the year immediately preceding the Relevant Year where _j is a specific Fixed Call Termination Wholesale Service;

R_ti is the revenue from Fixed Call Termination Wholesale Service(s) in the Relevant Year where _j is a specific Fixed Call Termination Wholesale Service;

V_(t-1)i is the actual volume of Fixed Call Termination Wholesale Service(s) in the year immediately preceding the Relevant Year where _j is a specific Fixed Call Termination Wholesale Service;

V_ti is the volume of transactions of Fixed Call Termination Wholesale Service(s) in the Relevant Year where _j is a specific Fixed Call Termination Wholesale Service.

For the avoidance of doubt, where there is more than one charge for a Fixed Call Termination Service in any 24 hour period, such a difference in charge does not imply a distinct Service.

BA4.3 Subject to paragraphs BA4.4 and BA4.5, the Controlling Percentage in relation to any Relevant Year means RPI reduced by 10 percentage points.

BA4.4 Where the Percentage Change in any Relevant Year is less than the Controlling Percentage, then for the purposes of paragraph BA4.1 the Controlling Percentage for the following Relevant Year shall be determined in accordance with paragraph BA4.3, but increased by the amount of such deficiency.

BA4.5 Where the Percentage Change in any Relevant Year is more than the Controlling Percentage, then for the purposes of paragraph BA4.2 the Controlling Percentage for the following Relevant Year shall be determined in accordance with paragraph BA4.4, but decreased by the amount of such excess.

BA4.6 The Dominant Provider shall, as soon as practicable after the end of each Relevant Year, supply to the Director, in writing, the data necessary to perform the calculation of the Percentage Change.

BA4.7 The Dominant Provider shall not increase its charges for Fixed Call Termination Wholesale Services prior to 1 October 2003.

BA5.1 Except in so far as the Director may otherwise consent in writing, the Dominant Provider shall publish a Reference Offer and act in the manner set out below.

BA5.2 Subject to paragraph BA5.7 below, the Dominant Provider shall ensure that a Reference Offer in relation to the provision of Network Access includes at least the following:

a. a description of the Network Access to be provided, including technical characteristics (which shall include information on network configuration where necessary to make effective use of the network);

b. the locations of the points of Network Access;

c. the technical standards for Network Access (including any usage restrictions and other security issues);

d. the conditions for access to ancillary, supplementary and advanced services (including operational support systems, information systems or databases for pre-ordering, provisioning, ordering, maintenance and repair requests and billing);

e. any ordering and provisioning procedures;

f. relevant charges, terms of payment and billing procedures;

g. details of interoperability tests;

h. details of traffic and network management;

i. details of maintenance and quality as follows:

(i) specific time scales for the acceptance or refusal of a request for supply and for completion, testing and hand-over or delivery of services and facilities, for provision of support services (such as fault handling and repair);

(ii) service level commitments, namely the quality standards that each party must meet when performing its contractual obligations;

(iii) the amount of compensation payable by one party to another for failure to perform contractual commitments;

(iv) a definition and limitation of liability and indemnity; and

(v) procedures in the event of alterations being proposed to the service offerings, for example, launch of new services, changes to existing services or change to prices;

j. details of measures to ensure compliance with requirements for network integrity;

k. details of any relevant intellectual property rights;

l. a dispute resolution procedure to be used between the parties;

m. details of duration and renegotiation of agreements;

n. provisions regarding confidentiality of non-public parts of the agreements;

o. rules of allocation between the parties when supply is limited (for example, for the purpose of co-location or location of masts);

p. the standard terms and conditions for the provision of Network Access;

q. the amount applied to:

(i) each Network Component used in providing Network Access with the relevant Usage Factors;

(ii) the Transfer Charge for each Network Component or combination of Network Components described above,

reconciled in each case to the charge payable by a Third Party other than the Dominant Provider.

r. to the extent that the Dominant Provider provides to itself Network Access that:

(i) is the same, similar or equivalent to that provided to any other person; or

(ii) may be used for a purpose that is the same, similar or equivalent to that provided to any other person,

in a manner that differs from that detailed in a Reference Offer in relation to Network Access provided to any other person, the Dominant Provider shall ensure that it publishes a Reference Offer in relation to the Network Access that it provides to itself which includes, where relevant, at least those matters detailed in paragraphs BA5.2(a)-(q).

BA5.3 The Dominant Provider shall, by 25 August 2003, publish a Reference Offer in relation to any Network Access that it is providing as at 25 July 2003.

BA5.4 The Dominant Provider shall update the Reference Offer in relation to any amendments or in relation to any further Network Access provided after 25 July 2003.

BA5.5 Publication referred to in paragraphs BA5.2, BA5.3 and BA5.4 above shall be effected by:

a. placing a copy of the Reference Offer on any relevant website operated or controlled by the Dominant Provider; and

b. sending a copy of the Reference Offer to the Director.

BA5.6 The Dominant Provider shall send a copy of the current version of the Reference Offer to any person at that person’s written request (or such parts which have been requested).

BA5.7 The Dominant Provider shall make such modifications to the Reference Offer as the Director may direct from time to time.

BA5.8 The Dominant Provider shall provide Network Access at the charges, terms and conditions in the relevant Reference Offer and shall not depart therefrom either directly or indirectly.

BA5.9 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

Condition BA6 – Requirement to notify prices

BA6.1 Except in so far as the Director may otherwise consent in writing, the Dominant Provider shall publish charges and act in the manner set out below.

BA6.2 The Dominant Provider shall send to the Director and to every person with which it has entered into an Access Contract covered by Condition BA1 a written notice of any amendment to the charges on which it provides Network Access or in relation to any charges for new Network Access (an "Access Charge Change Notice") not less than 90 days before any such amendment comes into effect.

BA6.3 The Dominant Provider shall ensure that an Access Charge Change Notice includes:

a. description of the Network Access in question;

b. a reference to the location in the Dominant Provider’s current Reference Offer of the terms and conditions associated with the provision of that Network Access;

c. the date on which or the period for which any amendments to charges will take effect (the "effective date");

d. the current and proposed new charge and the relevant Usage Factors applied to each Network Component comprised in that Network Access, reconciled in each case with the current or proposed new charge;

e. the information specified in sub-paragraph (d) above with respect to that Network Access to which that paragraph applies; and

f. the relevant network tariff gradient.

BA6.4 The Dominant Provider shall not apply any new charge identified in an Access Charge Change Notice before the effective date.

BA6.5 To the extent that the Dominant Provider provides to itself Network Access that:

(i) is the same, similar or equivalent to that provided to any other person; or

(ii) may be used for a purpose that is the same, similar or equivalent to that provided to any other person,

in a manner that differs from that detailed in an Access Charge Change Notice in relation to Network Access provided to any other person, the Dominant Provider shall ensure that it sends to the Director an Access Charge Change Notice in relation to the Network Access that it provides to itself which includes, where relevant, at least those matters detailed in paragraphs BA6.3(a)-(f).

Annex A to Schedule 1

1. Local exchange concentrator
2. Local exchange set up
3. Local exchange call duration
4. Main exchange set up
5. Main exchange call duration
6. Remote-local transmission link
7. Remote-local transmission length
8. Local-tandem transmission link
9. Local-tandem transmission length
10. Inter-tandem transmission link
11. Inter-tandem transmission length
12. Product management, policy & planning for narrowband call services
13. National operator assistance
14. International operator assistance
15. Emergency operator assistance
16. Outpayments: geographic calls
17. Outpayments: non geographic calls
18. Outpayments: calls to mobile
19. Outpayments: international
20. Outpayments: other
21. Public payphones operation
22. Public payphones line
23. International network
24. Copper access lines
25. Fibre access lines
26. Network terminating equipment (not elsewhere identified) for copper lines
27. CWSS network terminating equipment & serving exchange equipment
28. DWSS network terminating equipment & serving exchange equipment
29. PDH multiplexors at third party site
30. SDH multiplexors at third party site
31. SDH (MSH) multiplexors at third party site
32. PDH multiplexors
33. SDH mutliplexors
34. SDH cross connection/grooming equipment
35. Tributary card for SDH network by size
36. SDH (MSH) mutliplexors
37. SDH (MSH) cross connection/grooming equipment
38. Tributary card for SDH (MSH) network by size
39. Transmission links over fibre
40. Transmission links over radio
41. Inbuilding links
42. ATM switches
43. Third party facing ATM tributary cards by size
44. Network facing ATM tributary cards by size
45. Signalling links
46. Network research and development
47. Guarantee schemes
48. Infrastructure returns
49. PSTN (analogue) specific
50. Passive optical network
51. ISDN 2 specific
52. ISDN 30 specific
53. Phonebooks etc
54. Number Portability Data Amendments
55. Number Portability Set-up Costs
56. Carrier Pre Selection System Set-Up
57. Carrier Pre Selection Operator Set-Up
58. Carrier Pre Selection Customer Set-Up
59. Carrier Pre Selection in life management
60. ASU switches
61. DDSN switches
62. Universal card platform
63. IN platform - basic services
64. IN platform - advanced services
65. Copper loop line information & testing
66. Copper cabling within exchange buildings
67. Copper cabling from within exchange buildings to outside
68. Operational buildings- electricity
69. Operational buildings - space
70. Operational buildings - other
71. Operational buildings - modifications (including for co-location)
72. Bespoke network build - copper
73. Bespoke network rearrangement - copper
74. Product management, policy & planning for access services
75. Private circuit specific
76. Product management, policy & planning for partial private circuits
77. Shorthaul data/LAN extension specific
78. Flexible bandwidth specific
79. Frame Relay specific
80. SMDS specific
81. xDSL specific
82. Product management, policy & planning for xDSL interconnect services
83. Edge IP routers
84. Core IP routers
85. IP dial up specific
86. IP broadband platform specific
87. IP virtual private network specific
88. Voice over IP specific
89. IP international peering (outpayments)
90. Telex specific
91. Broadcast specific
92. Aeronautical & maritime specific
93. Satellite specific
94. DMS100 call centre

SCHEDULE 2

The conditions proposed to be imposed on Kingston under regulation 6(4) of the Electronic Communications (Market Analysis) Regulations 2003 as a result of the analysis of the fixed geographic call termination market in which Kingston has been found to have significant market power

Part 1: Definitions and Interpretation of these conditions

1. These conditions shall apply to the market for fixed geographic call termination provided by the Dominant Provider ("the Market").

2. For the purpose of interpreting this Schedule, the following definitions shall apply:

"Access Charge Change Notice" has the meaning given to it in Condition BB5.2;

"Act" means the Communications Act 2003;

"Director" means the Director General of Telecommunications appointed under section 1 of the Telecommunications Act 1984;

"Dominant Provider" means Kingston Communications Plc whose registered company number is 2150618, and any Kingston Communications plc subsidiary or holding company, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

"Network Component" means, to the extent they are used in the Market, the network components specified at Annex A to this schedule and as amended from time to time by the Dominant Provider with the consent of the Director and/or as amended from time to time as the Director may direct.

"Reference Offer" means the terms and conditions on which the Dominant Provider is willing to enter into an Access Contract;

"Third Party" means a person providing a Public Electronic Communications Network;

"Transfer Charge" means the charge or price that is applied, or deemed to be applied, by the Dominant Provider to itself for the use or provision of an activity or group of activities. For the avoidance of doubt such activities or group of activities include, amongst other things, products and services provided from, to or within the Market and the use of Network Components in that Market.

"Usage Factor" means the average usage by any Communications Provider (including the Dominant Provider itself) of each Network Component in using or providing a particular product or service or carrying out a particular activity.

"Wholesale Service" means any service provided by any Public Electronic Communications Network to any other provider of a Public Electronic Communications Network for the purpose of providing Public Electronic Communications Services;

3. Except insofar as the context otherwise requires, words or expressions shall have the meaning assigned to them and otherwise any word or expression shall have the same meaning as it has in the Act.

4. The Interpretation Act 1978 shall apply as if each of the conditions were an Act of Parliament.

5. Headings and titles shall be disregarded.

Condition BB1 – Requirement to provide network access on reasonable request

BB1.1 The Dominant Provider shall provide Network Access to every Third Party who reasonably requests in writing such Network Access and such Network Access as the Director may direct from time to time.

BB1.2 The provision of Network Access in accordance with paragraph BB1.1 shall occur as soon as reasonably practicable and shall be provided on fair and reasonable terms, conditions and charges and on such terms, conditions and charges as the Director may from time to time direct.

BB1.3 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

BB2.1 The Dominant Provider shall not unduly discriminate against particular persons or against a particular description of persons, in relation to matters connected with Network Access.

BB2.2 In this Condition, the Dominant Provider may be deemed to have shown undue discrimination if it unfairly favours to a material extent an activity carried on by it so as to place at a competitive disadvantage persons competing with the Dominant Provider.

Condition BB3 – Basis of charges

BB3.1 Unless the Director directs otherwise from time to time, the Dominant Provider shall secure, and shall be able to demonstrate to the satisfaction of the Director, that each and every charge offered, payable or proposed for Network Access covered by Condition BB1 are reasonably derived from the costs of provision based on a forward looking long run incremental cost approach and allowing an appropriate mark up for the recovery of common costs and an appropriate return on capital employed.

BB3.2 For the avoidance of any doubt, where the charge offered, payable or proposed for Network Access covered by Condition BB1 is for a service which is subject to a price control under Condition BB4, the Dominant Provider shall secure, and shall be able to demonstrate to the satisfaction of the Director, that such a charge is cost-oriented, that is to say, the level of the charge or group of charges shall not be below a limit calculated by the use of long-run incremental cost, nor shall it be above a limit set by the stand-alone cost, of providing the service or group of services in question.

BB3.3 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

Condition BB4 – Requirement to publish a reference offer

BB4.1 Except in so far as the Director may otherwise consent in writing, the Dominant Provider shall publish a Reference Offer and act in the manner set out below.

BB4.2 Subject to paragraph BB4.7 below, the Dominant Provider shall ensure that a Reference Offer in relation to the provision of Network Access includes at least the following:

a. a description of the Network Access to be provided, including technical characteristics (which shall include information on network configuration where necessary to make effective use of the network);

b. the locations of the points of Network Access;

c. the technical standards for Network Access (including any usage restrictions and other security issues);

d. the conditions for access to ancillary, supplementary and advanced services (including operational support systems, information systems or databases for pre-ordering, provisioning, ordering, maintenance and repair requests and billing);

e. any ordering and provisioning procedures;

f. relevant charges, terms of payment and billing procedures;

g. details of interoperability tests;

h. details of traffic and network management;

i details of maintenance and quality as follows:

(i) specific time scales for the acceptance or refusal of a request for supply and for completion, testing and hand-over or delivery of services and facilities, for provision of support services (such as fault handling and repair)

(ii) service level commitments, namely the quality standards that each party must meet when performing its contractual obligations;

(iii) the amount of compensation payable by one party to another for failure to perform contractual commitments;

(iv) a definition and limitation of liability and indemnity; and

(v) procedures in the event of alterations being proposed to the service offerings, for example, launch of new services, changes to existing services or change to prices;

j. details of measures to ensure compliance with requirements for network integrity;

k. details of any relevant intellectual property rights;

l. a dispute resolution procedure to be used between the parties;

m. details of duration and renegotiation of agreements;

n. provisions regarding confidentiality of non-public parts of the agreements;

o. rules of allocation between the parties when supply is limited (for example, for the purpose of co-location or location of masts);

p. the standard terms and conditions for the provision of Network Access;

q. the amount applied to:

(i) each Network Component used in providing Network Access with the relevant Usage Factors;

(ii) the Transfer Charge for each Network Component or combination of Network Components described above,

reconciled in each case to the charge payable by a Third Party other than the Dominant Provider.

r. to the extent that the Dominant Provider provides to itself Network Access that:

(i) is the same, similar or equivalent to that provided to any other person; or

(ii) may be used for a purpose that is the same, similar or equivalent to that provided to any other person,

in a manner that differs from that detailed in a Reference Offer in relation to Network Access provided to any other person, the Dominant Provider shall ensure that it publishes a Reference Offer in relation to the Network Access that it provides to itself which includes, where relevant, at least those matters detailed in paragraphs BB4.2(a)-(q).

BB4.3 The Dominant Provider shall, by 25 August 2003, publish a Reference Offer in relation to any Network Access that it is providing as at 25 July 2003.

BB4.4 The Dominant Provider shall update the Reference Offer in relation to any amendments or in relation to any further Network Access provided after 25 July 2003.

BB4.5 Publication referred to in paragraphs BB4.2, BB4.3 and BB4.4 above shall be effected by:

a. placing a copy of the Reference Offer on any relevant website operated or controlled by the Dominant Provider; and

b. sending a copy of the Reference Offer to the Director.

BB4.6 The Dominant Provider shall send a copy of the current version of the Reference Offer to any person at that person’s written request (or such parts which have been requested).

BB4.7 The Dominant Provider shall make such modifications to the Reference Offer as the Director may direct from time to time.

BB4.8 The Dominant Provider shall provide Network Access at the charges, terms and conditions in the relevant Reference Offer and shall not depart therefrom either directly or indirectly.

BB4.9 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

Condition BB5 – Requirement to notify prices

BB5.1 Except in so far as the Director may otherwise consent in writing, the Dominant Provider shall publish charges and act in the manner set out below.

BB5.2 The Dominant Provider shall send to the Director and to every person with which it has entered into an Access Contract covered by Condition BB1 a written notice of any amendment to the charges on which it provides Network Access (an "Access Charge Change Notice") not less than 90 days before any such amendment comes into effect.

BB5.3 The Dominant Provider shall ensure that an Access Charge Change Notice includes:

a. a description of the Network Access in question;

b. a reference to the location in the Dominant Provider’s current Reference Offer of the terms and conditions associated with the provision of that Network Access;

c. the date on which or the period for which any amendments to charges will take effect (the "effective date");

d. the current and proposed new charge and the relevant Usage Factors applied to each Network Component comprised in that Network Access, reconciled in each case with the current or proposed new charge;

e. the information specified in sub-paragraph (d) above with respect to that Network Access to which that paragraph applies; and

f. the relevant network tariff gradient.

BB5.4 The Dominant Provider shall not apply any new charge identified in an Access Charge Change Notice before the effective date.

BB5.5 To the extent that the Dominant Provider provides to itself Network Access that:

(ii) may be used for a purpose that is the same, similar or equivalent to that provided to any other person,

in a manner that differs from that detailed in an Access Charge Change Notice in relation to Network Access provided to any other person, the Dominant Provider shall ensure that it sends to the Director an Access Charge Change Notice in relation to the Network Access that it provides to itself which includes, where relevant, at least those matters detailed in paragraphs BB5.3(a)-(f).

Annex A to Schedule 2

1. Local exchange concentrator
2. Local exchange set up
3. Local exchange call duration
4. Main exchange set up
5. Main exchange call duration
6. Remote-local transmission link
7. Remote-local transmission length
8. Local-tandem transmission link
9. Local-tandem transmission length
10. Inter-tandem transmission link
11. Inter-tandem transmission length
12. Product management, policy & planning for narrowband call services
13. National operator assistance
14. International operator assistance
15. Emergency operator assistance
16. Outpayments: geographic calls
17. Outpayments: non geographic calls
18. Outpayments: calls to mobile
19. Outpayments: international
20. Outpayments: other
21. Public payphones operation
22. Public payphones line
23. International network
24. Copper access lines
25. Fibre access lines
26. Network terminating equipment (not elsewhere identified) for copper lines
27. CWSS network terminating equipment & serving exchange equipment
28. DWSS network terminating equipment & serving exchange equipment
29. PDH multiplexors at third party site
30. SDH multiplexors at third party site
31. SDH (MSH) multiplexors at third party site
32. PDH multiplexors
33. SDH mutliplexors
34. SDH cross connection/grooming equipment
35. Tributary card for SDH network by size
36. SDH (MSH) mutliplexors
37. SDH (MSH) cross connection/grooming equipment
38. Tributary card for SDH (MSH) network by size
39. Transmission links over fibre
40. Transmission links over radio
41. Inbuilding links
42. ATM switches
43. Third party facing ATM tributary cards by size
44. Network facing ATM tributary cards by size
45. Signalling links
46. Network research and development
47. Guarantee schemes
48. Infrastructure returns
49. PSTN (analogue) specific
50. Passive optical network
51. ISDN 2 specific
52. ISDN 30 specific
53. Phonebooks etc
54. Number Portability Data Amendments
55. Number Portability Set-up Costs
56. Carrier Pre Selection System Set-Up
57. Carrier Pre Selection Operator Set-Up
58. Carrier Pre Selection Customer Set-Up
59. Carrier Pre Selection in life management
60. ASU switches
61. DDSN switches
62. Universal card platform
63. IN platform - basic services
64. IN platform - advanced services
65. Copper loop line information & testing
66. Copper cabling within exchange buildings
67. Copper cabling from within exchange buildings to outside
68. Operational buildings- electricity
69. Operational buildings - space
70. Operational buildings - other
71. Operational buildings - modifications (including for co-location)
72. Bespoke network build - copper
73. Bespoke network rearrangement - copper
74. Product management, policy & planning for access services
75. Private circuit specific
76. Product management, policy & planning for partial private circuits
77. Shorthaul data/LAN extension specific
78. Flexible bandwidth specific
79. Frame Relay specific
80. SMDS specific
81. xDSL specific
82. Product management, policy & planning for xDSL interconnect services
83. Edge IP routers
84. Core IP routers
85. IP dial up specific
86. IP broadband platform specific
87. IP virtual private network specific
88. Voice over IP specific
89. IP international peering (outpayments)
90. Telex specific
91. Broadcast specific
92. Aeronautical & maritime specific
93. Satellite specific
94. DMS100 call centre

SCHEDULE 3

The conditions imposed on all persons listed at Annex 1 under regulation 6(4) of the Electronic Communications (Market Analysis) Regulations 2003 as a result of the analysis of the fixed geographic call termination markets in which all persons listed at Annex 1 been found to have significant market powe

1. These conditions shall apply to the markets for fixed geographic call termination provided by the Dominant Provider ("the Markets").

2. For the purpose of interpreting this Schedule, the following definitions shall apply:

3. Except insofar as the context otherwise requires, words or expressions shall have the meaning assigned to them and otherwise any word or expression shall have the same meaning as it has in the Act.

4. The Interpretation Act 1978 shall apply as if each of the conditions were an Act of Parliament.

5. Headings and titles shall be disregarded.

Part 2: The conditions

Condition BC1 – Requirement to provide network access on reasonable request

BC1.1 The Dominant Provider shall provide Network Access to every Third Party who reasonably requests in writing such Network Access and such Network Access as the Director may direct from time to time.

BC1.2 The provision of Network Access in accordance with paragraph BC1.1 shall occur as soon as reasonably practicable and shall be provided on fair and reasonable terms, conditions and charges and on such terms, conditions and charges as the Director may from time to time direct.

BC1.3 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

Annex 1 to Schedule 3: List of Dominant Providers for the purpose of Schedule 3

1. 186K Ltd whose registered company number is 3751494, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

2. 4D Telecom Ltd whose registered company number is 2676756, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

3. Aggregated Telecom Ltd whose registered company number is 3882936, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

4. Band-X Managed Services plc whose registered company number is 3899869, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

5. Cable and Wireless plc whose registered company number is 1541957, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

6. Call UK Ltd whose registered company number is 3375033, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

7. Centrica Telecommunications Ltd whose registered company number is 4226697, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

8. Cheers International Telecom Ltd whose registered company number is 3866455, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

9. COLT Telecommunications Ltd whose registered company number is 2452736, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

10. Communications Networking Services whose registered company number is 2840475, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

11. Core Telecommunications Ltd whose registered company number is 3274623, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

12. Easynet Group plc whose registered company number is 3137522, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

13. Edinburgh Network Technologies Ltd whose registered company number is SC160949, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

14. Eescape Ltd whose registered company number is 3798888, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

15. Eircom UK Ltd whose registered company number is 3478971, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

16. Energis Communications Ltd whose registered company number is 2630471, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

17. Gamma Telecommunications Limited whose registered company number is 4287779, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

18. Global Crossing UK Telecommunications Limited whose registered company number is 2495998, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

19. Global One Communications Holding Ltd whose registered company number is 2082327, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

20. Global Telesystems Limited whose registered company number is 3312722, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

21. IBSC Limited whose registered company number is 3746301, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

22. IDT Global whose registered company number is 3322447, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

23. Inclarity plc whose registered company number is 2673204, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

24. Intelnet Communications Ltd whose registered company number is 3268671, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

25. Interweb Design Ltd whose registered company number is 3101247, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

26. Ixnet UK Ltd whose registered company number is 2874554, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

27. Jupiter Modes Ltd whose registered company number is 3801478, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

28. KDD Europe Ltd whose registered company number is 2407242, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

29. Leaf Telecom Ltd whose registered company number is 3926712, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

30. London Digital Ltd whose registered company number is 3109134, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

31. MCI WorldCom Ltd whose registered company number is 2776038, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

32. Medius Networks Ltd whose registered company number is 4157875, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

33. Nevada tele.com whose registered company number is NI036608, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

34. ntl Group Ltd whose registered company number is 2591237, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

35. OMNE Communications Ltd whose registered company number is 3775645, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

36. Opera Telecom Ltd whose registered company number is 3383285, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

37. Orange plc whose registered company number is 3110666, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

38. Pipemedia Communications Limited whose registered company number is 3427755, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

39. PNC Telecom plc whose registered company number is 2709891, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

40. Premier Communications International whose registered company number is 3774299, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

41. Premier Voicemail Limited whose registered company number is 3172426, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

42. Primus Telecommunications Ltd whose registered company number is 2937312, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

43. Rateflame Ltd whose registered company number is 3033408, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

44. Reach Europe Limited whose registered company number is 2822455, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

45. Redstone Communications Ltd whose registered company number is 3021292, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

46. Ringmaster Ltd whose registered company number is 3450577, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

47. Sala Trading Limited whose registered company number is 3617973, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

48. SingTel (Europe) Ltd whose registered company number is 3426947, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

49. Spacetel UK Ltd whose registered company number is 3036383, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

50. Spitfire Network Services Ltd whose registered company number is 2657590, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

51. Startec Global Communications UK Ltd whose registered company number is 3555992, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

52. Syntec UK Ltd whose registered company number is 3529985, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

53. Telco Network Services Ltd whose registered company number is 04214792, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

54. Tele 2 Communications Services Limited whose registered company number is 3565220, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

55. Telecentric Solutions Ltd whose registered company number is 3779638, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

56. Telecom One Ltd whose registered company number is 3396559, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

57. Telewest Communications plc whose registered number is 02983307, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

58. Telia International Carrier UK Limited whose registered number is 2796345, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

59. Telstra Europe Limited whose registered number is 3830643, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

60. The Airtime Group Ltd whose registered company number is 3841911, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

61. Thus plc whose registered company number is SC192666, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

62. Tiscali UK Limited whose registered company number is 3408171, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

63. Torch Communications Ltd whose registered company number is 2817039, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

64. Totem Communications Ltd whose registered company number is 2933669, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

65. United Networks Ltd whose registered company number is 2356964, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

66. Ventelo (UK) Ltd whose registered company number is 2671859, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

67. Wavecrest (UK) Limited whose registered company number is 3042254, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

68. Wightcable Limited whose registered company number is 4392360, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

69. Your Communications Ltd whose registered company number is 3842309, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

70. Zip Com Telecommunications plc whose registered company number is 3137499, and any subsidiary or holding company of it, or any subsidiary of that holding company, all as defined by Section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

      Annex B

Criteria to assess effective competition

                                                        Annex C

Cost-benefit analysis of the proposed price control regulation on BT

This annex is available as a pdf only - please click here to download

Annex D

List of questions for consultation

Annex E

Glossary

Barriers to entry: an additional cost which must be borne by entrants but not by firms already in the industry; or other factors, which enable an incumbent to maintain prices above the competitive level without inducing entry.

Broadband: a service or connection allowing a considerable amount of information to be conveyed. Generally defined as a bandwidth greater than 128kbit/s

BT: British Telecommunications plc.

Communications provider: a person who provides an Electronic Communications Network or provides an Electronic Communications Service.

Digital: the binary coded representation of a waveform, as opposed to analogue, which is the direct representation of a waveform.

Digital Local Exchange (DLE) and Local exchange: the telephone exchange to which customers are directly connected, often via a remote concentrator unit.

Direct Access: the situation where a customer is directly connected to a telecommunications operator’s network by a fixed link.

DMSU (Digital Main Switching Unit): a tandem exchange primarily used for connecting calls between DLEs.

Exchange line: the telephone line that connects the customers’ network terminating point to the local exchange.

Fully Allocated Costs (FAC): an accounting approach for attributing all the costs of the company to defined activities such as products and services. Typically this method would follow the principle of cost causality.

Hull Area: the area defined as the 'Licensed Area' in the licence granted on 30 November 1987 by the Secretary of State under section 7 of the Telecommunications Act 1984 to Kingston upon Hull City Council and Kingston Communications (Hull) plc.

Indirect access: where a customer establishes a connection with a particular operator’s network by dialling a short code to switch through the network on which his exchange line terminates. Such calls are usually billed by the Indirect Access operator.

Integrated Services Digital Network (ISDN): a network evolved from the digital PSTN which provides digital exchange lines to customers and 64kbps end to end digital connectivity between them. Two or more 64kbps connections can be combined to provide a higher speed connection, eg 128kbps.

Interconnection: the linking (whether directly or indirectly by physical or logical means, or by a combination of physical or logical means) of one Public Electronic Communications Network to another for the purpose of enabling the persons using one of them to be able:

(a) to communicate with users of the other one; or

(b) to make use of services provided by means of the other one (whether by the provider of that Network or by another person);

Kingston: Kingston Communications (Hull) plc – telephone company which operates in the Hull area.

Long Run Incremental Costs (LRIC): The costs caused by the provision of a defined increment of output, taking a long run perspective, assuming that some output is already produced. The ‘long run’ means the time horizon over which all costs (including capital investment) are variable.

Narrowband: a service or connection allowing only a limited amount of information to be conveyed, such as for telephony. This compares with broadband which allows a considerable amount of information to be conveyed.

NRAs: the body or bodies, legally distinct and functionally independent of the telecommunications organisations, charged by a Member State with the elaboration of, and supervision of compliance with, telecoms authorisations.

Number Translation Services (NTS): telephone services using non-geographic numbers, where that number is translated to a geographic or mobile number for final delivery to the called party.

Originating operator: the operator on whose network the call originates

PSTN: Public Switched Telephone Network

Remote concentrator unit: the part of the local exchange on which customers’ exchange lines terminate. It is sometimes colocated with the main local exchange and sometimes located remotely from it.

Return on Capital Employed (ROCE): the ratio of accounting profit to capital employed. The measure of capital employed can be either Historic Cost Accounting (HCA) or Current Cost Accounting (CCA).

RPI: Retail Price Index

Service provider: a provider of electronic communications services to third parties whether over its own network or otherwise.

SMP: The Significant Market Power test is set out in European Directives. It is used by the National Regulatory Authorities (NRA) such as Oftel to identify those operators who must meet additional obligations under the relevant Directive.

Substitutability: whether an increase in the price of one product would lead consumers to switch to other competing products or services (demand-side substitutability) or lead producers to switch rapidly into the supply of the good in question (supply-side substitutability).

Terminating operator: the operator on whose network

Usage factors: expressions of network usage for the main conveyance components and show how often a component is used on average in the provision of services. The 24-hour charge is calculated by multiplying the routing factors by the amount applied to the relevant components. The time of day charges are then calculated by multiplying the network tariff gradient by the 24-hour charge.