Telecommunications Act 1984

Kingston Communications (Hull) plc

Consent under condition 58

1. On 30 November 1987, the Secretary of State granted a licence (the "Licence") to Kingston Upon Hull City Council and Kingston Communications (Hull) plc ("Kingston") under Section 7 of the Telecommunications Act 1984 (the "Act") for the running of the telecommunications systems specified in Annex A to the Licence.

2. On 27 September 1999 Kingston Upon Hull City Council's interest in respect of the Licence was revoked.

3. Condition 58.1 of the Licence requires Kingston, except insofar as the Director General of Telecommunications (the "Director") may otherwise consent in writing, to publish prices and act in the manner set out in that Condition.

4. In particular, Condition 58.3 requires Kingston to provide the services referred to in paragraph 58.2 at the charges, terms and conditions published, and not to depart from those charges, terms and conditions except in the circumstances specified in paragraph 58.4.

5. Having considered the matters set out in the statement issued by the Director dated the 26^th day of March 2002, and entitled Competition in International Markets, the Director has decided to consent to the non publication and non notification of prices (and for Kingston to depart from published prices) in respect of business retail IDD in effectively competitive markets, in respect of any winning bids made by Kingston in electronic-auctions ("e-auctions"), where the period between the offer of a price and acceptance is less than 24 hours. This consent is conditional on the matters set out below.

NOW THEREFORE THE DIRECTOR CONSENTS AS FOLLOWS:

1. Pursuant to Condition 58.1 of the Licence, the Director hereby consents to Kingston, in an e-auction for the provision of IDD service on routes which have been determined to be effectively competitive, offering to provide service on the basis of prices, terms and conditions which depart from any which have previously been published.

2. In addition, the Director hereby consents to Kingston not notifying any prices, terms or conditions offered in such an e-auction to the Director General in advance of the offer being submitted.

3. This consent is conditional on the following:

a. if Kingston’s offer is accepted, the relevant prices terms and conditions must be published within 24 hours of receipt by Kingston of notification of acceptance; and

b. if Kingston’s offer is accepted, the relevant prices terms and conditions must be notified to the Director General at least 24 hours before service is provided.

4. Unless the context otherwise requires, words and phrases in this consent shall have the meanings ascribed to them in the Licence or the Act, as appropriate.

VINCENT AFFLECK
for and on behalf of the Director General of Telecommunications

A person authorised under Paragraph 8 of Schedule 1 to the Telecommunications Act 1984

20 May 2002