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Summary The annexes are only available in .pdf format:
SummaryS.1 The purpose of this consultation is to seek the views of industry and other interested parties on proposals to continue certain licence conditions after 24 July 2003 when telecommunications licensing is abolished in the UK and other member states of the EU. This is a result of the implementation of the new EU communications regime. S.2 Most licence conditions apply generally to Communications Providers and these will be replaced by the General Conditions made under the Communications Bill. S.3 However, there are a number of specific conditions included in some individual licences, some of which reflect the market power of those operators. Those conditions cannot be replaced by new conditions of entitlement until the relevant market reviews are completed and implemented. The conditions reflecting market power, and access related conditions (with the exception of conditional access conditions) are also subject to consultation procedures under the new regime. S.4 This cannot now occur by 25 July due to the European Commission’s decision that it cannot receive market review proposals before the requirements of the new Directives come into effect on that date. The European legislation requires the Commission and National Regulatory Authorities in other member states to be consulted before the market reviews are completed and before access related conditions are imposed. S.5 The power to continue the current licence conditions in the interim period is contained in Schedule 18 of the Communications Bill now before Parliament. S.6 The intention in continuing the specific licence conditions set out in this document is to maintain the status quo and avoid a regulatory gap. In a few cases, modifications have had to be made. This has only been done where this is necessary to enable these continued conditions to be effective and enforceable. S.7 Details of the proposals are set out in this consultation document. The text of the notices and the conditions are included as annexes. S.8 As the notices providing for the conditions to be continued must be completed before the licences are revoked, the consultation period is of necessity very short. Responses must be received by 9.00am 14 July 2003 at the very latest so that this exercise can be completed on time.
Chapter 1Introduction and background1.1 On 25 July 2003 the United Kingdom, together with other member states of the European Union, is required to implement the requirements of a number of European directives dealing with communications regulation. A consequence of this is that the individual licensing of telecommunications will cease and all existing Telecommunications Act 1984 licences will be revoked. 1.2 A new regime based on the general authorisation will take effect on 25 July. General conditions applying to all those providing electronic communications networks (ECN) and electronic communications services (ECS) are to be introduced to replace the conditions contained in existing telecommunications licences. 1.3 Under the new regulatory regime conditions which are directed specifically at individual communications providers can only be introduced in the circumstances set out in the Communications Bill [References to the Communications Bill throughout this document are references to the text published on 5 June 2003], that is to say, in most cases, following a review of the markets concerned. It is not possible therefore for the Director [References to the Director in this consultation document should be taken to include reference to Ofcom. The new regime will come into being on 25 July, although Ofcom is not expected to take responsibility for the implementation of the new regulatory regime until the end of 2003. Clause 401 of the Bill provides that any references to Ofcom in relation to networks and services functions exercised by the Director prior to the transfer of these functions to Ofcom will be deemed to include references to the Director.] to impose such conditions unless and until he has completed a review of these markets. 1.4 As the market review process cannot be completed by 25 July, the Government has decided to introduce interim measures in the form of continuation notices, which will have the effect of continuing a limited number of licence conditions after 25 July, notwithstanding the fact that the licences to which the conditions are attached will have ceased to exist. This will be achieved by legislation the details of which are set out below. 1.5 The purpose of this short consultation is to provide the industry and other interested parties with an opportunity to comment on the proposed continuation notices. 1.6 The purpose of this continuation regime is intended to maintain the status quo until such time as the new regime can be implemented fully. Changes in regulatory policy, reflected in any changes to the texts of the licence conditions to be continued, are being introduced only where they are necessary to provide a coherent and effective regulatory regime. In particular they are intended to ensure that the continued obligations are compatible with those aspects of the new regime, which are being implemented on 25 July. 1.7 The Government’s intention is that the new EU regulatory framework will be implemented by the Communications Bill. However, in the event that the Bill has not completed its Parliamentary processes by the required date, the new directives will be implemented by statutory instruments made under section 2(2) of the European Communities Act. 1.8 The length of the period for the submission of responses is shorter than that which would be possible in normal circumstances. However, the time constraints to which both Oftel and Government are subject leave no alternative. This will be explained in more detail in the chapter dealing with the consultation process. New Directives A new regulatory regime 1.9 A new regulatory framework for electronic communications networks and services will enter into force in the UK on 25 July 2003. The basis for the new regulatory framework is five new EU Communications Directives as follows:
1.10 The new regulatory framework is designed to create harmonised regulation across Europe and aimed at reducing entry barriers and fostering prospects for effective competition to the benefit of consumers. 1.11 The Framework Directive provides the overall structure for the new regulatory regime and sets out fundamental rules and objectives which read across all the new directives. As its name suggests, it is the directive that establishes the new framework. Article 8 of the Framework Directive sets out three key policy objectives which have been taken into account in this document. The Authorisation Directive establishes a new system whereby any person will be generally authorised to provide electronic communications services and/or networks without prior approval. The general authorisation replaces the existing licensing regime. The Universal Service Directive defines a basic set of services that must be provided to end-users. The Access and Interconnection Directive sets out the terms on which providers may access each others’ networks and services with a view to providing publicly available electronic communications services. These four Directives must be implemented in the UK as well as in other EU Member States on 25 July 2003. The fifth Directive on Privacy establishes users’ rights with regard to the privacy of their communications. This Directive was adopted slightly later than the other four Directives and has an implementation date of 31 October 2003. The end of the individual licensing regime 1.12 Changes to the regulatory framework flow from the requirements of the new Directives. The principal change to the present arrangements in the UK will be the ending of the licensing regime under the Telecommunications Act 1984 (the TAct). This is to be replaced by a new authorisation regime. Under the requirements of the Authorisation Directive the obligations in licences will be replaced by a set of general and specific conditions of entitlement. 1.13 The general conditions will apply to all persons providing electronic communications networks and services. Additionally, individual operators may be subject to specific conditions, such as those imposed as a result of a finding of SMP, as defined in Article 14(2) of the Framework Directive, Access Related conditions or as a result of being designated to be a universal service provider. Oftel has already carried out a number of consultations in relation to such conditions. The new general conditions will apply from 25 July 2003. 1.14 The specific conditions (ie: those additional conditions that apply to particular providers) under the Directives will be implemented as SMP services conditions, Access Related conditions (both conditional access and other conditions) and Universal service conditions. Implementation of the EC Directives in the UK 1.15 In the UK, it is intended to implement the four main EC Communications Directives through a new Communications Act. The Communications Bill was introduced into the House of Commons on 19 November 2002 and is available at www.communicationsbill.gov.uk. The latest version of the Communications Bill is that which was introduced into the House of Lords on 5 June 2003. Save where otherwise stated references to the Communications Bill in this document are references to that version of the Bill. The Bill may continue to be subject to change as it proceeds through Parliament. 1.16 It is intended that the Communications Bill will receive royal assent by 25 July 2003. However, in the event that the Communications Bill does not receive royal assent by 25 July 2003, the Government has acknowledged that implementation will need to occur by Statutory Instruments made under the European Communities Act 1972 for an interim period until the Bill enters into force. These interim measures have been subject to consultation by the Department of Trade and Industry in its Consultation on the implementation of the European Community Directives on electronic communications networks and services published on 19 March 2003, which can be found at www.communicationsbill.gov.uk/implementation_consultations.html. The Communications Bill makes specific provision to enable Ofcom’s functions to be carried out by the Director or the Secretary of State for a transitional period. For these reasons, this document and the proposed continuation notices refer to the Director rather than Ofcom. 1.17 This document for the most part refers to the clauses in the Communications Bill (rather than the draft statutory instruments) which propose to implement the new Directives. However, any references to the relevant clauses in the Communications Bill should also be seen as references to the relevant regulations proposed if there is implementation on 25 July 2003 by statutory instruments (as set out in the Department of Trade and Industry’s consultation referred to above). Transition from the old regime to the new regime 1.18 The new Directives seek to ensure that there is a coherent transition from the old regime to the new regime and to ensure that there is no regulatory gap. The Director has already carried out a number of consultations in relation to the new regime such as consultations on the general conditions, universal service conditions and conditional access conditions. He has also commenced a number of market reviews proposing the imposition of SMP service conditions along with consultations on the imposition of other access related conditions. 1.19 The Director intended originally to complete market reviews so that new SMP services conditions could be imposed on 25 July 2003. Before imposing SMP services conditions and Access Related conditions (other than conditional access conditions) the Director is required by the new regime to carry out a national consultation and to notify and consult with the European Commission and other national regulatory authorities for at least one month (Articles 6 and 7 of the Framework Directive). The European Commission can request an additional two months for consideration in certain specified circumstances. However, the Commission Recommendation identifying the relevant product and service markets was not published until 11 February 2003. Subsequently in April 2003 the European Commission advised national regulatory authorities that the notifications could not be made under Article 7 of the Framework Directive before 25 July 2003. Accordingly, it is no longer possible for the Director to have new SMP services and Access Related (other than conditional access) conditions in place on 25 July 2003. 1.20 In order to avoid a regulatory gap, the Directives permit and require the continuation of the old regime until such time as the Director can complete his assessment of the imposition of the new SMP services and Access Related (other than conditional access) conditions. This has been implemented into Schedule 18 of the Communications Bill. Schedule 18 permits the Director to issue continuation notices setting out those licence conditions and directions under the existing regime which will continue for a transitional period. It is expected that, if there is implementation via statutory instruments, those regulations will have an equivalent to Schedule 18 of the Communications Bill. Structure of this document 1.21 Chapter 2 of this document discusses further why a continuation regime is required and the detail of this regime. Chapter 3 discusses the details of the continuation notices which are proposed Chapter 4 discusses the details of the continuation notices for Interconnection Directions Chapter 5 discusses Revocation of continuation notices Chapter 6 discusses the consultation process and relevant timetable.
Chapter 2The continuation regime2.1 As set out in the previous chapter, if there is no continuation of existing provisions, there will, on 25 July 2003, be a regulatory gap because the market review process will not have been completed. The government has made provision in the Communications Bill to permit the continuation of certain provisions to avoid this regulatory gap. Continuation of certain licence conditions 2.2 The Communications Bill at Schedule 18, paragraph 7 allows the Director to issue notices to continue certain licence conditions pending full transition to the new regime. Under paragraph 7(3) of Schedule 18 the Director is permitted to continue licence conditions where: (a) a provision contained in the Bill that the Director has the power to include in SMP Conditions ("Paragraph 7(3)(a)"); (b) a provision authorised by section 70(2) or (4) of the Bill for inclusion in Access-Related Conditions ("Paragraph 7(3)(b)"); or (c) a provision relating to matters mentioned in Article 16 of the Universal Service Directive or Article 7 of the Access Directive ("Paragraph 7(3)(c)"). 2.3 The Communications Bill Schedule 18, paragraph 7(6) permits modifications to be made to the existing licence conditions in order to secure that they continue to have effect while the notice is in force. 2.4 The proposed continuation notices (including the proposed modifications to the continued licence conditions) under paragraph 7 of Schedule 18 are set out in the Annexes to this document as follows:
2.5 Further details of the content of the continuation notices (and the modifications to the licence conditions) is set out in Chapter 3. SMP apparatus conditions (Price controls for hard wired telephones) 2.6 This condition appears in the BT and Kingston Licences only and relates to the technology which these two incumbent operators still provide for some residential telephones. Paragraph 7(4) of the Bill requires continuation notices relating to SMP apparatus conditions to specify the market which will be the subject of the market review which will be necessary before an SMP apparatus condition is imposed. These two conditions are therefore the subject of separate continuation notices. Continuation of instruments made under licence conditions 2.7 Under the current licence conditions, the Director has made a number of other instruments (eg: directions, determinations and consents). Where a licence condition is continued pursuant to a continuation notice under paragraph 7(3) of Schedule 18 of the Communications Bill, any instruments made under that condition are automatically continued and remain in force for as long as the continuation notice under paragraph 7(3) of Schedule 18 is in place. This is provided for in 7(7)(b) and (c) of Schedule 18. Accordingly, continuation notices are not necessary for these other instruments. Continuation of Interconnection directions 2.8 However, the position in relation to Interconnection directions is different. Interconnection directions made under the Interconnection Regulations will not be carried forward automatically and will therefore need to be the subject of separate continuation notices. A list of these Interconnection Directions is at Annex 4. No changes are intended to be made to any of these Interconnection Directions. These Directions are not set out in this document. Electronic links have however been provided. Continuation of conditions relating to premium rate services 2.9 Under the Communications Bill there will be new provisions relating to conditions that may be set for premium rate services (PRS). Oftel issued a consultation on 12 June 2003 in relation to these new conditions which can be found at www.oftel.gov.uk/publications/numbering/2003/prs0603.htm. 2.10 If the new Communications Bill does not receive Royal Assent by 25 July 2003, as noted above, the Government will implement the Directives through statutory instruments. In this event, the provisions of the Communications Bill relating to the new PRS conditions will not be in place. Accordingly, if there is an interim SI regime, the government has proposed that the existing licence conditions relating to PRS should be continued until such time as the Communications Bill receives Royal Assent at a later date. 2.11 Accordingly, continuation notices will only be issued in relation to PRS licence conditions if there is to be implementation on 25 July 2003 by the interim SI regime rather than the Communications Bill. This document, does not therefore contain continuation notices in relation to existing PRS conditions. However, should they be required the Director will also make any necessary additional continuation notices. It is unlikely that there will be time to consult on such continuation notices. Accordingly, if respondents have any comments in relation to these possible continuation notices, they are requested to respond to this consultation. 2.12 The continuation notices have to be published by 23rd July at the very latest. Time is therefore of the essence. The normal consultation process which Oftel would have hoped to carry out has therefore had to be reduced. Unfortunately the time for responses for this consultation has had to be limited to 12 days and responses must be received by 14 July 2003. 2.13 It is intended that each operator subject to the continuation of licence conditions will be issued with a single continuation notice. However, BT and Kingston will receive an additional notice in respect of the Price Controls on Hard Wired Telephones Condition. The notice will set out the conditions in that operator’s licence which the Director has decided to continue. Any modifications made to the condition will be included in the text (the proposed texts of these notices and modifications are set out in the annexes).
Chapter 3Proposed continuation notices for licence conditions3.1 A single continuation notice will be issued to each operator. This notice will set out the conditions to be continued in a schedule attached to the notice. The notice will also include any modifications which it has been necessary to make to the condition(s) in order to render them effective and to enable the existing regulation to continue. Schedule 18 of the Bill confines the scope and extent of any such modifications to those for the purpose of securing that the provision to which they relate continues to have effect for so long as the notice is in force. 3.2 Most modifications are no more than technical changes. For example the inclusion of definitions which were previously set out at the beginning of Schedule 1 of the Licence. Although most of the Telecommunications Act 1984 will be repealed, where necessary some of the definitions contained in that Act have been incorporated into the continued condition by reference (as they were in the licence itself) using generic language in the body of the text of the condition in order to ensure that the continued licence condition continues to have effect. 3.3 Other changes have been made only in order to ensure that the conditions retain their effectiveness and enforceability for as long as they remain valid in the new regime. Some of the minor modifications that have been made include the following:
3.4 References to provisions of, and definitions in, the current legal regime (eg: references to the Interconnection Directive and the current Interconnection Regulations) have been maintained in the continued conditions. To avoid substantial modifications which would simply copy out large pieces of legal text, Oftel proposes to retain these references. This means that the substance of the obligation will need to be read together with those pieces of legislation. The same approach is proposed in relation to references to the Broadcasting and Wireless Telegraphy Acts. 3.5 There follows a brief description of each condition which it is intended to be the subject of a continuation notice, together with the rationale for its continuation. PTO licence conditions 3.6 Condition 43. Requirement to provide Telecommunication Services other than voice telephony services on request. (BT and Kingston). This condition encompasses services which may become the subject of an Access related or an SMP condition under the new regime. Accordingly, Schedule 18 of the Communications Bill permits its continuation. 3.7 Until the appropriate markets are reviewed and decisions taken on those obligations which may need to be imposed on BT and Kingston in the new regime, the condition needs to be continued. 3.8 Consideration has been given to whether or not it would be possible to reduce the scope of those services covered by the Condition 43 obligation. Some of the services encompassed within the generic text of the Condition are not necessarily intended to be the subject of market reviews. 3.9 During the interim period, Oftel will consider whether the application of this Condition should be disapplied from particular services. Individual applications will be considered on their merits. However, with the exception of the DSL service where the obligation must continue during the interim period, Oftel considers that there would be a strong argument to give consents on dis-application relating to the following services X25, Frame Stream, Cellstream retail services and Telex 3.10 Condition 45. Interconnection agreements with Annex II public operators including co-location and facility sharing. (BT, Kingston, Vodafone, O2)This condition must be carried over in order to comply with Article 7 of the Access Directive (AID). Condition 45.2 relates to directions made under the Interconnection Regulations. That procedure will cease to exist (save for any transitional arrangements in Schedule 18, paragraph 20 of the Communications Bill). Accordingly, the reference to the power to make interconnection directions under those regulations has been has been modified to remove this reference. Some further modification to this condition has been necessary to ensure that the rights of Schedule 2 Public Operators are maintained during this interim period. This list will be continued and can be added to in the event that further applications for interconnection status are made before the new regime is implemented. 3.11 Condition 46. Requirement to publish a reference interconnection offer. (BT and Kingston). This condition must be carried over in order to comply with Article 7 of the AID. The texts of the condition differ slightly as between BT and Kingston and minor modifications have been made. 3.12 Condition 47. Requirements relating to Schedule 2 Public Operators. (BT, Kingston, Vodafone and O2). Condition 47 must be carried over in order to comply with Article 7 of the AID. 3.13 Condition 48. Requirements to meet requests for access other than from Schedule 2 Public Operators. (BT, Kingston, Vodafone and O2). This Condition must be carried over in order to comply with Article 7 of the AID. Condition 48.5 deals with directions made under the Interconnection Regulations. That procedure will cease to exist (save for any transitional arrangements in Schedule 18, paragraph 20 of the Communications Bill). Accordingly, the reference to the power to make interconnection directions under those regulations has been modified to remove this reference. 3.14 Condition 49. Requirement to send interconnection agreements to the Director. (BT, Kingston, Vodafone and O2). This must be carried over in order to comply with Article 7 of the AID. 3.15 Condition 50. Requirement to have cost accounting systems and accounting separation for interconnection purposes. (Kingston and BT). This must be carried over in order to comply with Article 7 of the AID. 3.16 Condition 50A. Carrier pre-selection. (BT and Kingston). This condition implements Article 12(5) of the ICD. This must be carried over in order to comply with Article 7 of the AID. 3.17 Condition 53. Special network access. (BT). This condition implements Article 16 of the RVTD. It must be carried over in order to implement Article 7 of the AID. 3.18 This Condition needs to be retained in the interim period. These provisions would be used where a Service Provider without Annex 2 status, requests access to BT's network in ways which are different from normal retail services and interfaces. Such requests for access are a part of the new framework (Article 12 of the Access Directive) and there is a need for such provisions during the interim period. 3.19 Condition 54. Tariffs, cost accounting principles and discount schemes. (BT and Kingston). This condition implements Article 17 of the existing Revised Voice Telephony Directive and therefore must be carried over in order to implement Article 7 of the AID. Oftel will also be considering during the consultation period the relationship and potential overlap between this condition and the new universal service conditions. 3.20 Condition 55. Leased Line Directive conditions. (BT and Kingston). This condition implements Articles 3,4,6,7,8,10 of the Leased Lines Directive and must be carried over in order to implement Article 7 of the AID. 3.21 Condition 57. Prohibition on undue preference/discrimination and (BT, Kingston, Vodafone, O2 and Cable & Wireless). The obligation is triggered for BT, Kingston, O2 and Vodafone because of SMP designations made under the existing regime. It therefore implements Article 6(a) of the Interconnection Directive and must be carried over in order to implement Article 7 of the AID. Condition 57 applies for Parts A (USO), B (C43), C (C45, 46, 47, 48, 49, 50 & 50A), D(53 & 54) and E (C55) as appropriate. In the new regime Part A will be replaced by new USO conditions and this is not being continued. 3.22 Cable and Wireless has been determined as having market influence under the existing regime. Accordingly, Condition 57 is triggered to apply in accordance with that determination. In the case of the Cable &Wireless, this condition is considered to correspond to a condition which might be set as an SMP conidition under the new regime after the relevant market review has been completed. Accordingly, the condition is retained. 3.23 Condition 58. Publication charges, terms and conditions. (BT, Kingston, Vodafone, O2 and Cable & Wireless). This condition corresponds to a condition which may be set under the new regime as an SMP condition and is therefore retained until the appropriate market reviews are completed. Additional provisions in BT licence 3.24 Condition 65. Quality of Service for products on the quality schedule. (BT). This corresponds to an SMP services condition which may be set under the new regime and is therefore retained until the appropriate market reviews are completed. 3.25 Condition 69. Charge control for standard services. (BT). This implements the Interconnection Directive and therefore must be continued under Article 7 of the AID. 3.26 Condition 69A. Charge control for portability standard. (BT). This condition corresponds to either an access-related or SMP condition and can therefore be retained. 3.27 Condition 69B. Requirement to provide, and control of charges for access services. (BT). This Condition corresponds to an access-related or SMP condition and can therefore be retained. However, in this case the associated dispute resolution procedure has not been retained as any disputes which may arise during the interim period will be dealt with under the new dispute procedure. 3.28 Condition 70 and 71. Control of general prices. (BT). These conditions correspond to SMP conditions and can be retained. Under clause 88 of the Bill similar conditions controlling retail prices can be set following completion of the market review. 3.29 Condition 73. Control of private leased circuit prices. (BT). This Condition corresponds to an SMP condition and can be retained until the market review is completed. 3.30 Condition 78. Separate accounts. (BT). This Condition was amended and extended as part of the implementation of Article 7 of the Interconnection Directive and must be carried over in order to implement the AID. It is a more detailed condition than Condition 50 which it displaces insofar as it applies. 3.31 Condition 83 – Requirement to provide network access facilities (BT) The obligations in this condition correspond to obligations which may be imposed following the relevant market review if SMP is found. It is therefore continued until the relevant market review is completed. Additional provisions in CNS licence 3.32 Conditions 66, 66A and 67 These conditions exist in the CNS licence and mirror the SMP conditions in the PTO licence. These conditions therefore correspond to SMP conditions that may be set under the new regime and are retained until the relevant market review is completed. Additional provisions in mobile licences 3.33 Condition 69A. National Roaming. (Vodafone and O2). This Condition corresponds to an access-related condition and can be retained under the provisions in Schedule 18 of the Bill. 3.34 Conditions 70A and 70B (T-Mobile and Orange). Conditions 70B and 70C (Vodafone and O2). Calls to Mobiles. These conditions correspond to SMP conditions that may be set under the new regime. Pending the outcome of the relevant review, these conditions need to be retained. It will be necessary however to make modifications to the conditions to maintain the price reductions introduced by the licence modification following the review by the Competition Commission. 3.35 Oftel is not proposing to continue the provisions in the 4 April 2003 licence modifications which required the mobile operators to make an offer by 2 May 2003 to certain other operators to amend their interconnect agreements. (Existing licence conditions 70B.4 and 70C.4, for Vodafone and O2, and conditions 70A.4 and 70B.4, for T-Mobile and Orange, will therefore be deleted.) Those provisions do not need to be continued after 24 July 2003 because they are time expired in the sense that Oftel is simply requiring the 15 per cent cap on the existing level of charges to be maintained. 3.36 In this context, Oftel wrote to the mobile operators on 13 May 2003 to explain that it considered any offers made under the above-mentioned provisions that lasted for a day only would be inconsistent with the conclusions of the Competition Commission in its report on mobile termination charges. Oftel expects the mobile operators to make appropriate contractual arrangements to ensure that the average level of charge which applies as at 24 July continues to apply for at least the period so long as the continued provisions remain in force. Access control class licence 3.37 Conditions in the Access Control Class licence. This is a class licence and the conditions which it is proposed to retain, apply only to providers who have been determined by the Director to be Regulated Suppliers. Satellite Subscriber Services Limited is the only provider so determined. It is intended that six regulated supplier conditions will be continued as set out below. 3.38 Some modification to the conditions has been necessary, simply to ensure that the form of the condition which is being continued is compatible with other parts of the new regime. 3.39 Condition 10. Obligation to supply. This condition together with conditions 11-15 correspond to access-related conditions as defined in the Communications Bill. Following the outcome of the appropriate review, similar conditions could be imposed in accordance with clause 70 of the Bill. During the interim regime, these conditions will continue to be relevant only to providers who have been determined already as Regulated Suppliers. 3.40 Condition 11. Intellectual property. As above. 3.41 Condition 12. Requirement to keep separate financial accounts. As above. 3.42 Condition 13. Confidentiality of customer information. As above. 3.43 Condition 14. Prohibition on undue preference/discrimination. As above. 3.44 Condition 15. Publication of charges, terms and conditions. As above. Conditional Access class licence 3.45 Conditions in the Conditional Access Class Licence. (Retained in respect of electronic programme guides only). 3.46 Condition 1. Access supply obligation. This condition corresponds to an access-related condition which may be set under clause 70(5) and 72(2) of the Bill. As new conditions will be in place in relation to conditional access, these conditions are only continued in relation to EPGs. Modifications have been made in this respect. 3.47 Condition 5. Separate accounts. As above. 3.48 Condition 7. Intellectual property As above. 3.49 Condition 11. Undue preference/discrimination. As above. 3.50 Condition 14. Publication of charges, terms and conditions. As above. Ntl and Crown Castle licences 3.51 Requirement to share sites. (Condition 7 National Transcommunications and Condition 8 Crown Castle). These correspond to either access-related or SMP conditions that could be imposed under the Communications Bill. They are therefore retained. 3.52 Restriction of prices for certain services. (Condition 8 National Transcommunications and Condition 9 Crown Castle). These correspond to either access-related or SMP conditions that could be imposed under the Communications Bill. They are therefore retained. 3.53 Apparatus – Control of hard wired telephones. (Condition 66 Kingston and Condition 67 BT). This is the equivalent of an SMP apparatus condition and is intended to be continued.
Chapter 4Continuation Notices for Interconnection Directions4.1 Schedule 18, paragraph 20, of the Communications Bill contains provision for the continuation of directions made under the Telecommunications (Interconnection) Regulations 1997. These directions must be the subject of separate notices which will be issued and served on the persons to whom the direction applies. A table of interconnection directions made under paragraph 20 of schedule 18 is at annex 4. 4.2 This procedure applies only to directions made under the Interconnection Regulations. Paragraph 7 of Schedule 18 of the Communications Bill provides for other subsidiary instruments made under licence conditions (see para 2.17 above). 4.3 As no modifications are to be made to interconnection directions, this consultation only sets out a list of the interconnection directions which are currently proposed to be continued.
Revoking the continuation notices 5.1 Once a continuation notice has been issued it will continue in force until the Director issues another notice bringing the continuation of the licence condition to an end. This will be done once the relevant market reviews have been completed and either a condition within the categories defined in the Bill has been imposed on the operator concerned as the regulatory obligation is to be removed. 5.2 As soon as reasonably practicable after giving the continuation notice, the Director must take all steps necessary to enable him to decide whether or not to set a condition for the purpose of replacing the continued provision. He must then decide as soon as reasonably practicable whether or not to exercise his power to set a condition within the categories set out in the Communications Bill. There is therefore a need to serve the corresponding notice to discontinue the licence condition as soon as possible after decisions have been reached under the new regime. 5.3 Certain conditions involve the review of a number of markets and there will be circumstances where some of the reviews have been completed and others have not been finished. The condition will be dis-applied with respect to the services referable to the completed market review. However, to the extent that there are other regulated services considered in reviews that have yet to be completed the condition will continue in force until the final applicable review has been completed. The alternative would be to have a situation where there were regulatory gaps left by the revocation of the condition.
Consultation process and timetable How to make comments on the proposals set out in this consultation document 6.1 Oftel is publishing this consultation document so that interested parties may comment on the issues which it addresses. Oftel is programming a 12 day consultation period. The closing date for submitting comments is 9.00am 14 July 2003. 6.2 Oftel recognises that the period for responses is very short. Unfortunately on this occasion the deadline for the issuing of the continuation notices does not allow for a longer period of consultation. The continuation notices must be issued while the licences and the conditions attached to them are still existent. The licensing regime must come to an end at midnight on 24 July 2003. If the Director is to be able to take account of the responses before the continuation notices are finalised, Oftel will need to have the responses available by the closing date. 6.3 Comments should be made in writing and sent by e-mail if at all possible to Oliver Holland at oliver.holland@oftel.gov.uk. However, copies may also be posted or faxed to the address below. Oliver Holland tel: 020 7634 5375 e-mail: oliver.holland@oftel.gov.uk Further copies of this document 6.4 This document can be viewed in the Publications section of Oftel’s web site (insert link) Paper copies and more accessible formats such as large print, Braille, disc and audio cassette can be made available on request. Please contact Oftel’s Research and Information Unit by phoning 020 7634 8761 or by sending an e-mail to infocent@oftel.gov.uk. Publication of comments 6.5 In the interests of transparency, comments will be published, except where respondents indicate that a response, or part of it, is confidential. Respondents are therefore asked to separate out any confidential material into a confidential annex which is clearly identified as containing confidential material. Oftel will take steps to protect the confidentiality of all such material from the moment that it is received at Oftel’s offices. However, in the interests of transparency, respondents should avoid applying confidential markings wherever possible. 6.6 Non-confidential responses can be viewed on Oftel’s web site in the Publications section under Responses to Oftel consultations. Comments can also be viewed at Oftel’s Research and Information Unit. Appointments must be made in advance by phoning 020 7634 8761 or sending an e-mail to infocent@oftel.gov.uk. e-mail notifications 6.7 Oftel has a free e-mail based mailing list to help people stay informed about the work that Oftel is doing. Each time an Oftel document is published and placed on Oftel’s web site at www.oftel.gov.uk, subscribers to the list receive an e-mail alert. To register, please go to the What’s New section of the web site and access the electronic form.
Annexes -available in pdf format - please click here
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