Annex A

NOTIFICATION OF PROPOSALS UNDER REGULATION 6 OF THE ELECTRONIC COMMUNICATIONS (MARKET ANALYSIS) REGUALTIONS 2003

Proposal for identifying a market, making a market power determination and the setting of market power conditions

1. The Director General of Telecommunications (‘the Director’), in accordance with Regulation 6 of the Electronic Communications (Market Analysis) Regulations 2003 ("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 markets set out in Schedule 1 to this Notification for the purpose of making market power determinations.

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 markets set out in Schedule 1, Part 1 British Telecommunications plc, whose registered company number is 01800000, and any British Telecommunications plc subsidiary or holding company, or any subsidiary of that holding company, all as defined in section 736 of the Companies Act 1985 as amended by the Companies Act 1989;

(b) in relation to the markets set out in Schedule 1, Part 2 Cable and Wireless plc, whose registered company number is 00238525 and any Cable and Wireless plc subsidiary or holding company, or any subsidiary of that holding company, all as defined in section 736 of the Companies Act 1985 as amended by the Companies Act 1989; and

4. The Director is proposing to set market power conditions on the persons referred to in paragraph 3 above as set out in Schedules 2 and 3 to this Notification.

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 Two 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 Three 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 Schedule 2 and 3 to this Notification are contained in Chapter Four of the consultation document published with this Notification.

8. In considering whether to make the proposals set out in this Notification, and in analysing the markets referred to in paragraph 2 above, the Director has:

(a) had regard to 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; and

(b) complied with all relevant requirements set out in Regulation 6(8) of the Regulations.

9. The Director consider that the proposed market power conditions referred to in paragraph 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 out in 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

Part 1

Markets for which the Director proposes that BT has SMP

Part 2

Markets for which the Director proposes that C&W has SMP

Andorra
Ascension Island
Montserrat
Turks & Caicos

Schedule 2

The conditions imposed on British Telecommunications plc and its subsidiaries under regulation 6(4) of the Electronic Communications (Market Analysis) Regulations 2003 as a result of the analysis of the markets in Schedule 1, Part 1 in which British Telecommunications plc and its subsidiaries has been found to have significant market power

Part 1: Definitions and Interpretation of these conditions

1. These conditions shall apply to the markets set out in Schedule 1, Part 1.

2. For the purpose of interpreting the conditions imposed on the Dominant Provider following the review of the markets listed in paragraph 1 the following definitions shall apply:

"Act" means the Communications Act 2003;

"Access Charge Change Notice" has the meaning given to it by Condition KA4.2;

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

"Dominant Provider" means British Telecommunications plc, whose registered company number is 01800000 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;

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

"Third Party" means person"

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 KA1 – Requirement to provide network access on reasonable request

KA1.1 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.

KA1.2 The provision of Network Access in accordance with paragraph 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.

KA1.3 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

Condition KA2 – Requirement not to unduly discriminate

KA2.1 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 provided in accordance with Condition 1.1

KA2.2 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 KA3 – Requirement to publish a reference offer

KA3.1 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.

KA3.2 Subject to paragraph 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 Network Access);

(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) 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 KA3.2(a)-(p).

KA3.3 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.

KA3.4 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.

KA3.5 Publication referred to in paragraphs KA3.2, KA3.3 and KA3.4 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.

KA3.6 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).

KA3.7 The Dominant Provider shall make such modifications to the Reference Offer as the Director may direct from time to time.

KA3.8 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.

KA3.9 The Dominant Provider shall comply with any determination the Director may make from time under this condition

Condition KA4 – Requirement to notify prices

KA4.1 Except in so far as the Director may otherwise consent in writing, the Dominant Provider shall publish charges, terms and conditions and act in the manner set out below.

KA4.2 The Dominant Provider shall send to the Director and to every person with which it has entered into an Access Contract covered by to Condition KA1 a written notice of any amendment to the charges, terms and conditions on which it provides Network Access or in relation to any charges for new Network Access (an "Access Charge Change Notice") not less than 28 days before any such amendment comes into effect.

KA4.3 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, terms and conditions will take effect (the "effective date").

KA4.4 The Dominant Provider shall not apply any new charge, term or condition identified in an Access Charge Change Notice before the effective date.

KA4.5 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 KA4.3(a)-(c).

Schedule 3

The conditions imposed on Cable and Wireless plc and its subsidiaries under regulation 6(4) of the Electronic Communications (Market Analysis) Regulations 2003 as a result of the analysis of the markets in Schedule 1, Part 2 in which Cable and Wireless plc and its subsidiaries has been found to have significant market power

Part 1: Definitions and Interpretation of these conditions

1. These conditions shall apply to the markets set out in Schedule 1, Part 1.

2. For the purpose of interpreting the conditions imposed on the Dominant Provider following the review of the markets listed in paragraph 1 the following definitions shall apply:

"Act" means the Communications Act 2003;

"Access Charge Change Notice" has the meaning given to it in Condition KB4.2;

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

"Dominant Provider" means Cable and Wireless plc, whose registered company number is 00238525, and any Cable and Wireless 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;

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

"Third Party" means person.

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 KB1 – Requirement to provide network access on reasonable request

KB1.1 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.

KB1.2 The provision of Network Access in accordance with paragraph 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.

KB1.3 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

Condition KB2 – Requirement not to unduly discriminate

KB2.1 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 provided in accordance with Condition 1.1

KB2.2 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 KB3 – Requirement to publish a reference offer

KB3.1 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.

KB3.2 Subject to paragraph 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 Network Access);

(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) to the extent that the Dominant Provider provides to itself Network Access that:

ii. is the same, similar or equivalent to that provided to any other person; or

iii. 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 KB3.2(a)-(p).

KB3.3 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.

KB3.4 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.

KB3.5 Publication referred to in paragraphs KB3.2, KB3.3 and KB3.4 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.

KB3.6 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).

KB3.7 The Dominant Provider shall make such modifications to the Reference Offer as the Director may direct from time to time.

KB3.8 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.

KB3.9 The Dominant Provider shall comply with any direction the Director may make from time to time under this Condition.

Condition KB4 – Requirement to notify prices

KB4.1 Except in so far as the Director may otherwise consent in writing, the Dominant Provider shall publish charges terms and conditions and act in the manner set out below.

KB4.2 The Dominant Provider shall send to the Director and to every person with which it has entered into an Access Contract covered by to Condition KB1 a written notice of any amendment to the charges, terms and conditions on which it provides Network Access or in relation to any charges for new Network Access (an "Access Charge Change Notice") not less than 28 days before any such amendment comes into effect.

KB4.3 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, terms and conditions will take effect (the "effective date").

KB4.4 The Dominant Provider shall not apply any new charge, term and condition identified in an Access Charge Change Notice before the effective date.

KB4.5 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 KB4.3(a)-(c).

Annex B

Draft Direction – Cable and Wireless plc

Draft Direction under proposed Conditions KB3 imposed on Cable and Wireless plc (C&W) as a result of the market power determinations proposed to be made by the Director that C&W has significant market power in certain wholesale international services markets (set out in the Schedule to this Direction)

WHEREAS:

(a) as a result of a market review carried out by the Director under regulation 6 of the Regulations, C&W was found to have significant market power in the certain wholesale international services markets (set out in the Schedule to this Direction);

(b) the Director having confirmed his proposals pursuant to regulation 8 of the Regulations to make market power determinations to the effect referred to in recital (A) above and to set certain SMP conditions on C&W to take effect on 25 July 2003, including Condition KB3 imposing obligations concerning the publication of a Reference Offer;

(c) this Direction concerns Condition KB3;

(d) Condition KB3.1 provides that except in so far as the Director may otherwise consent in writing, the Dominant Provider shall publish a Reference Offer;

(e) for the reasons set out in the statement accompanying this Direction, the Director is satisfied that, in accordance with section 45(2) of the Act, this Direction is:

i. objectively justifiable in relation to the networks, services, facilities, apparatus or directories to which it relates;

ii. not such as to discriminate unduly against particular persons or against a particular description of persons;

iii. proportionate to what it is intended to achieve; and

iv. in relation to what it is intended to achieve, transparent;

(f) for the reasons set out in the statement accompanying this Direction, the Director is satisfied that he has acted in accordance with the relevant Community requirements set out in section 4 of the Act;

(g) a notification of this Direction has been carried out in accordance with section 45 of the Act;

(h) the Director has considered every representation about this Direction made to him within the specified consultation period; and

NOW, therefore, pursuant to Conditions KB3 of Schedule 2 to the Notification the Director makes the following Direction:

1.For the purposes of complying with its obligations under paragraph KB3.1 of Condition KB3, the Director consents that until further notice C&W shall not be obliged to publish a Reference Offer in accordance with Condition KB3.1 of Condition KB3 and that Conditions KB3.2 to KB3.8 of Condition KB3 shall not apply. For the avoidance of doubt, Condition KB3.9 of Condition KB3 shall continue to apply.

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

(a) "Act" means the Communications Act 2003;

(b) "C&W" means Cable and Wireless plc, whose registered company number is 00238525, and any of its subsidiaries or holding companies, or any subsidiary of such holding companies, all as defined by section 736 of the Companies Act 1985, as amended by the Companies Act 1989;

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

(d) "Notification" means the notification of proposals under regulation 6 of the Regulations for identifying inter alia wholesale international services markets for the purpose of making proposed market power determinations that C&W has significant market power in relation to certain markets (set out in the Schedule to this Direction), as published on the same day as this Direction is published and as annexed to the consultation document accompanying this Direction;

(e) "Regulations" mean the Electronic Communications (Market Analysis) Regulations 2003 (S.I. 2003/330); and

(f) "significant market power" has the meaning given to it in regulation 5(3) to (7) of the Regulations.

3. Except insofar as the context otherwise requires, words or expressions shall have the meaning assigned to them in paragraph 2 above and otherwise any word or expression shall have the same meaning as it has in the Notification or, if the context so permits, in Schedule 2 thereto, as appropriate.

4. The Interpretation Act 1978 shall apply as if this Direction were an Act of Parliament.

5. For the purpose of interpreting this Direction, headings and titles shall be disregarded.

6. This Direction shall take effect on the day it is published.

7. The Schedule to this Direction shall form part of this Direction.

DAVID ALBERT EDMONDS

DIRECTOR GENERAL OF TELECOMMUNICATIONS

XX/XX/XX

Schedule

Andorra
Ascension Island
Montserrat
Turks & Caicos

Annex C

Wholesale IDD markets which the Director has determined to be effectively competitive in previous reviews (46 routes) (known as ‘Category A Routes’)

Australia
Austria
Belgium
Brazil
Canada
China
Croatia
Denmark
Dominican Republic
Egypt
El Salvador
Finland
France
Germany
Ghana
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Japan
Laos
Luxembourg
Malaysia
Mexico
Netherlands
New Zealand
Norway
Pakistan
Philippines
Poland
Portugal
Singapore
South Africa
Spain
Sweden
Switzerland
Thailand
Turkey
Ukraine
USA
Vietnam
Yugoslavia

Annex D

Wholesale IDD markets which the Director has determined to be prospectively competitive in previous reviews (193 routes) (known as ‘Category B routes’)

Afghanistan
Albania
Algeria
Andorra
Angola
Anguilla
Antarctica Australian Territory
Antigua and Barbuda
Argentina
Armenia
Aruba
Ascension Island
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belize
Benin
Bermuda
Bhutan
Bolivia
Bosnia and Herzegovina
Botswana
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Cape Verde
Cayman Islands
Central African Republic
Chad
Chile
Christmas Islands
Cocos Islands
Colombia
Comoros
Congo
Congo, DR
Cook Islands
Costa Rica
Côte d'Ivoire
Cuba
Cyprus
Cyprus (North)
Czech Republic
Diego Garcia
Djibouti
Dominica
East Timor
Ecuador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Falkland Islands
Faeroe Islands
Fiji
French Guyana
French Polynesia
Gabon
Gambia
Georgia
Gibraltar
Greenland
Grenada
Guadeloupe
Guam
Guatemala
Guinea
Guinea Bissau
Guyana
Haiti
Honduras
Iceland
Iran
Iraq
Jamaica
Jordan
Kazakhstan
Kenya
Khabarovsk
Kiribati
Korea (South)Korea, PDR
Kuwait
Latvia
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Macao
Macedonia
Madagascar
Madeira
Malawi
Maldives
Mali
Malta
Marshall Islands
Martinique
Mauritania
Mauritius
Mayotte
Micronesia
Midway Islands
Moldova
Monaco
Mongolia
Montserrat
Morocco
Mozambique
Myanmar
Nakhodka
Namibia
Nauru
Nepal
Netherlands Antilles
New Caledonia
Nicaragua
Niger
Nigeria
Niue
Norfolk Island
Northern Marianas
Oman
Palau
Panama
Papua New Guinea
Paraguay
Peru
Puerto Rico
Qatar
Reunion
Rodriguez Islands
Romania
Ross Island
Russian Federation
Rwanda
Saint Helena
Saint Kitts & Nevis
Saint Lucia
Saint Pierre & Miquelon
Saint Vincent & the Grenadines
Samoa
San Marino
Saudi Arabia
Senegal
Seychelles
Sierra Leone
Slovak Republic
Slovenia
Solomon Islands
Somalia
Sri Lanka
Sudan
Suriname
Swaziland
Syria
Taiwan
Tajikistan
Tanzania
Tatarstan
Thuraya
Togo
TokelauTonga
Trinidad & Tobago
Tunisia
Turkmenistan
Turks & Caicos
Tuvalu
Uganda
United Arab Emirates
Uruguay
Uzbekistan
Vanuatu
Vatican City
Venezuela
Virgin Islands (UK)
Virgin Islands (US)
Wake Island
Wallis & Futuna
Yemen
Zambia
Zimbabwe

Annex E

Wholesale IDD routes for which the Director has determined that C&W has market influence (37 routes)

Andorra
Ascension
Bahrain
Barbados
Belarus
Botswana
Brunei
Bulgaria
Cayman
Colombia
Cyprus
Czech Republic
Dominica
Egypt
Grenada
Hungary
Indonesia
Jamaica
Kuwait
Latvia
Macao
Oman
Russia
St Helena
St Kitts
St Lucia
St Vincent
Seychelles
Slovak Republic
Slovenia
Sri Lanka
Thailand
Trinidad & Tobago
Turks & Caicos
UAE
Ukraine
Virgin Islands
Yemen

Annex F

Composite list of the Director’s proposals in relation to wholesale international services markets (242 routes)

Annex G

Questions

Annex H

Glossary

This glossary contains definitions of terms used in this consultation document. These definitions are for guidance only and have no legal standing. For precise definitions please refer to the relevant licence or legislation.

Accounting rate: the rates at which international operators account to each other for the calls they originate and terminate. The rates are divided into shares (which are frequently the same) for the originating and terminating operator.

Backhaul: is a high capacity inland circuit. It represents the connection between a cable landing station and an operator’s existing domestic infrastructure (usually the operator’s international switching centre).

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.

BT: British Telecommunications plc.

Cable capacity: the capacity an international cable has for carrying calls. Cable capacity can be expressed in terms of design capacity (the amount of capacity a cable is technically designed to carry) and notional capacity (the amount of capacity that has been subscribed for by cable consortia members).

Cable consortium: a consortium of facilities operators, usually including operators from countries at both ends of a cable, who own and operate international cables.

Cable station/cable landing station: the point at which international submarine cables arrive and terminate. The point where the submarine cable is connected to the backhaul circuit.

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

Correspondent agreements: an agreement with a far end operator, for that operator to receive and terminate international calls originating on the near end operator's facilities.

Digital International Switching Centre (DISC): the last inland exchange for outgoing international calls and first inland exchange for incoming international calls. Calls are switched at the DISC for onward conveyance internationally or nationally.

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

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 method 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.

Hubbing: is the routing of international traffic via an intermediate third country.

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.

Indefeasible Right of Use (IRU): an IRU gives the IRU owner the right to use capacity for the life of a cable and liability to pay maintenance charges. IRU owners do not have voting rights in cable consortium.

Indirect access (IA): 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, e.g. 128kbps.

Interconnection Directive (ICD): is Directive 97/33/EC of 30 June 1997 on interconnection in telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP).

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);

International Direct Dial (IDD): are calls made by end-users dialling direct to subscribers in other countries via the PSTN or ISDN.

International facilities: is infrastructure owned and operated by a licensed operator for conveying traffic between countries. In the United Kingdom the international facilities licensees are licensed to own and operate international facilities at the UK end on all international routes.

International Facilities Licence (IFL): is a licence granted under the Telecommunications Act 1984 authorising the connection of a UK telecommunications system to a telecommunication system outside the UK and the provision of telecommunication services over the system to countries outside the UK.

International Private Leased Circuits (IPLCs): International circuits leased from facilities operators in order to provide international services which cross one or more international boundary.

International simple voice resale (ISVR): is an international service provided by an operator to consumers using the international facilities owned by other operators. In the case of an outgoing call, the operator collects traffic from the public telecommunications network, transfers it to a line leased from a facilities operator, and then hands it over to a PTO in an overseas country who will deliver the call to its destination. It therefore involves ‘breakout’ onto the public telecommunications network at both ends, but with the international leg of the call being carried on leased circuits. ISVR traffic bypasses the accounting rate system.

Internet Service Provider (ISP): a company that provides individuals and other companies access to the Internet and other related services.

IP (Internet Protocol): the packet data protocol used for routing and carriage of messages across the Internet and similar networks.

IP network: a network that uses IP; for example the Internet is a public IP network.

ISVR licence: a UK licence authorising an operator to receive incoming and offer outgoing calls conveyed via ISVR.

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

Leased lines (also known as private circuits): a permanently connected communications link between two premises dedicated to the customers’ exclusive use.

Local loop: the access network connection between the customer’s premises and the local PSTN exchange, usually a loop comprised of two copper wires.

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.

Market influence (MI): means the ability to raise prices above the competitive level for a non-transitory period without losing sales to such a degree to make this unprofitable.

Modem: a device which converts digital signals into a voiceband form capable of being conveyed over an analogue connection, such as the public telephone network, and vice-versa.

Network Charge Control (NCC): is the interconnection charging regime set out in condition 13 of BT’s licence and condition 66 of CNS’ licence. CNS is free to set charge for competitive and new interconnection services. Charges for interconnection services that are not yet competitive are subject to charge controls.

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, telecommunications authorisations.

Originating operator: the operator on whose network the call originates

PPCs (Partial Private Circuits): a generic term used to describe a category of private circuits that terminate at a point of connection between two operators’ networks. It is therefore the provision of transparent transmission capacity between a customer’s premises and a point of connection between the two operators’ networks. It may also be termed a part leased line. It includes terminating segments.

PSTN: Public Switched Telephone Network

Public Telecommunications Operator (PTO): is a network operators providing services to the public with powers granted by the Secretary of State for Trade and Industry, under the Telecommunications Act 1984, to enable them to install their systems on public and private land, property etc.

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).

Route: means a unique "country-pair" for which international traffic is carried where the UK is one country and the destination country is another, e.g. UK to USA, UK to Jamaica or UK to Uganda. For the purposes of this definition a "destination country" may include cities or territories which are not as such countries or which are satellite services, but which have their own wholesale international services markets (such as: Khabarovsk in the Russian Federation, Hong Kong in the People’s Republic of China and Inmarsat respectively).