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A Consultation Document issued by the Director General of Telecommunications June 2000 Chapter 1 - The broad purpose and intent of this consultative process. Chapter 2 - Background to the Calls & Access Product and problems previously associated with Calls & Access. Chapter 3 - BT’s proposals to address Calls & Access quality of service issues. Chapter 4 - Reactions from existing and potential Calls & Access Service Providers to BT’s proposals. Chapter 5 - Oftel’s views on its legal powers to alter contracts Chapter 6 - Oftel's summary of requests for comments on Quality of service issues and details of consultation. S.1 This consultative document follows the Director General’s statement on 23 December 1999 in which he indicated that he would publicly consult on the setting of quality of service standards for BT’s Calls & Access product. The statement was made following the issue of two consecutive Provisional Orders against BT for its failure to provide its Calls & Access product to a standard that allowed a Service Provider of that product to effectively run its business. S.2 Since the lapse of the second Provisional Order, issued against BT on 26 October 1999, there has been extensive discussion between Calls & Access Service Providers and BT as to the terms of the contract for service between the parties and how quality of service issues can best be addressed within that framework. S.3 Oftel has been encouraged by the level of co-operation between BT and the Calls & Access Interest Group (CAIG) since December 1999. Many quality of service issues have been agreed and some are nearing agreement. However, there remain certain issues which Oftel believes are unlikely to be resolved between the parties. Oftel recognises the need to provide a fresh impetus to this process in order to resolve all outstanding areas of disagreement. It should be noted that the ongoing negotiations between BT CAIG may still result in an agreement being reached on any outstanding issues during the period of consultation. S.4 This document gives details on the following:
S.5 In Chapter 6 this document asks for comments on Oftel’s initial conclusions and the questions posed in Chapter 4. These are summarised in paragraph 6.1. In this way Oftel aims to:
The consultation process will last for four weeks until 12 July 2000, after which there will be a further two week period during which comments on the representations made during the first period are invited.
Purpose of the consultative process 1.1 Oftel's aim in undertaking this consultation is to ensure that the BT Calls & Access product is delivered with a high quality of service to End Users and Service Providers. To date Oftel has not felt it necessary to impose specific quality of service standards on any operator. However, bearing in mind the severity and duration of previous problems associated with the Calls & Access product (as set out in Chapter 2 of this document), Oftel believes that there may be a requirement for it to ensure that the Calls & Access contract BT has with Service Providers reflects specific quality of service standards. 1.2 Oftel's goal is to achieve the best deal for UK telecommunications consumers in terms of quality, choice and value for money. Oftel aims to achieve this primarily by promoting sustainable and effective competition. Oftel aims to move away from formal and intrusive regulation as competition becomes effective and has therefore invited BT and the Service Providers to discuss and agree quality of service standards for the product. However, in areas where they are unable to agree the implementation of quality of service standards Oftel intervention may help to restore Service Provider and End User customer confidence in the Calls & Access product and foster an environment in which competition can flourish.
The history of Calls & Access 2.1 BT’s Calls & Access product enables third party companies to purchase capacity and access to BT’s network at a price that excludes BT’s retail costs. These third party companies, know as Service Providers, can then re-sell directly to consumers, offering them a full telephony service under their own branded name. Although BT retains full ownership of the line, the consumer using that line will be billed for calls, line rental and other services directly by their Service Provider. The Service Provider will also take over all customer service aspects of the service, including fault reporting and can "bolt on" additional value-added services such as monthly billing, automatic routing of national and international calls via alternative operators to secure lower call costs. Some Service Providers also provide access to their own Internet service at low cost or on an unmetered basis. 2.2 The problem of competition in direct access services was recognised as part of a liberalisation review of BT’s operating licence in 1991. A condition of BT’s licence was amended as part of that review to require BT to supply Service Providers with any telecommunication service that BT offered to its customers generally, on terms which would not prohibit the reseller from selling on that service. The condition also provided for Oftel to determine any charge, term or condition for the supply of services to Service Providers. 2.3 The condition concerning supply of services to Service Providers was amended in 1997, removing the specific obligation to supply Service Providers and Oftel’s specific right to determine prices, terms and conditions as Oftel believed that other conditions could achieve the same results with more flexibility. The consultation process which preceded this licence amendment explored in detail issues to do with the pricing of BT products for Service Providers, and the most significant Service Provider product which emerged from this process was Calls & Access. Problems with the Calls & Access Product during 1999 2.4 Oftel investigated several complaints from Service Providers regarding the provisioning and pricing of the product. The Director General issued two consecutive Provisional Orders against BT, the first on 26 August 1999 the second on 26 October 1999. The Orders were made because Oftel considered that BT was providing the Calls & Access product to a standard that was not adequate to enable Service Providers to deliver an acceptable service to their End Users. Service Providers had experienced many problems with BT’s order processing system, the standard of billing information and information on calls made by Service Provider’s customers. Effects on Service Providers 2.5 The problems experienced by Service Providers made it difficult for them to run a viable business. Many of the problems that occurred arose because BT had not produced a service that was, in practice, fit for purpose. However, because the End User now "belonged" to the Service Provider the End Users perception was of deficiencies in the Service Provider’s performance, not BT’s. End Users who had little trouble with BT’s service before transfer were now experiencing disconnections, double or no billing and poor customer service. Details of the specific problems experienced by Service Providers can be found in the text of the two Provisional Orders issued on this matter. 2.6 Oftel believes that the effect of this dissatisfaction was to drive End Users from the Service Provider back to BT. The bad publicity for the Calls & Access product may have led to potential End Users deciding to stay with BT rather than try a new provider. The overall effect on competition and the impact on the quality of service afforded to End Users led Oftel to conclude that it had to act in August 1999, and again in October 1999, to ensure that BT provided a Calls & Access product that was fit for purpose. Oftel's statement of 23 December 1999 2.7 Oftel issued a statement on the Calls & Access service prior to the expiry of the Provisional Order issued on 26th October 1999. In this statement, the DG decided that BT had made significant improvements to the service provided to Service Providers and that it was now ‘fit for purpose’. Service Providers were able to run their business using the product and in these circumstances it was decided that it was not requisite for the DG to take further enforcement action on this matter. 2.8 While it was not deemed necessary to issue another provisional order, the severity and duration of the problems that had been encountered with the product up to December 1999 led Oftel to the following conclusions.
2.9 All of these circumstances mean that competition in this new sector has not been able to flourish. Oftel believes that BT and the Service Providers still need to take further action to ensure that satisfactory levels of service are maintained in the long term. Following further discussions between BT and the Service Providers, it was hoped that agreement on the specific quality of service issues would be agreed. 2.10 In January 2000 CAIG provided a list of requirements in the Quality of Service document that they wanted BT to consider. In February 2000 BT responded with a detailed pack addressing these issues and covering a number of areas previously the subject of dispute between Service Providers and BT. Individual Service Providers and CAIG have now had a chance to examine BT’s proposals and have offered a number of comments. 2.11 In order to encourage co-operation between BT and Service Providers evidenced in these meetings Oftel postponed its consultation. In line with its overall strategy Oftel believes that the best way forward on quality of service issues is to have them underpinned by a robust commercial arrangement between BT and the Service Providers rather than being set externally through sector specific regulation. Significant progress has been made within the group and many of the original issues have been resolved through discussions between both parties in the first half of this year. Some issues though remain under discussion and it is on these areas that this Consultation Document focuses.
BT's proposals to address Calls & Access Quality of Service issues 3.1 In February this year BT provided detailed draft documentation proposing Quality of Service targets and commitments on a wide range of issues relating to Calls & Access provisioning. The draft document addressed the following areas. Calls & Access service targets 3.2 The quality of service targets for Calls & Access services are broadly equivalent to BT's telephone service for residential customers, whereby BT commits to provision lead times as follows:
3.3 BT also provided further detailed guidance on Calls & Access features such as credit management, pricing options, service processes, billing and payment, complaint handling procedures, service guarantee, use of the BT brand and BT contact with Service Provider customers. 3.4 On matters of confidentiality BT will only use any information given to it for the purpose for which it is intended. BT will only pass necessary information to those parts of BT involved in the development, delivery and support of the Calls & Access product. Disclosure within BT beyond these boundaries will only be with the prior consent of the Service Provider. Details of Service Provider and/or customers personal data will not be passed onto the retail arm of BT for marketing purposes. 3.5 In the event of a customer transferring to a Service Provider, BT may make contact twice with that customer. In the first instance, BT will send a standard letter to the customer confirming the requested transfer to the Service Provider and stating that BT intends to action that transfer unless otherwise advised by the customer. Secondly, the BT Customer Options Team (COTs) may call the customer to discuss their plans to leave BT during the transfer period. This is the only activity aimed at persuading the Customer not to leave BT. Dispute Resolution 3.6 BT defines its approach to dispute resolution with Service Providers through a process of mediation with a defined escalation path. BT believes that CAIG can form the basis for dispute resolution between BT and the Calls & Access Service Providers. Disputes which cannot be resolved through this path would normally be referred to Oftel for a ‘determination’ or, where appropriate, enforcement action. [ It is important to note that though BT refers to Oftel making a 'determination' on issues of dispute it is likely that the Director General's power to intervene in such matters would be in terms of making a 'decision' under the Telecommunications ( Open Network Provision) (Voice Telephony) REgulations 1998] Product Handbook 3.7 The Calls & Access product handbook provides practical guidance to Service Providers to help them understand the role and procedures required for the provision of the Calls & Access telephone service. Gateway 3.8 The Service Provider Gateway is BT's preferred interface with the Calls & Access Service Providers. The Gateway which provides an interface with BT across the public Internet, is to be used by Service Providers for all transfers, new provision, cease requests and adding /removing select services. BT provides a comprehensive user guide on the Gateway order handling system Future Developments 3.9 BT discusses the framework within which it commits to understand, develop and deliver new service provider products, ensuring that the product is equivalent to the BT retail offering and it is able to deliver enhanced functionality which may not be part of the existing retail product. The Contract 3.10 BT's draft contract sets out the terms and conditions by which Service Providers agree to use the Calls & Access product. The contract has sections covering:
The latest draft version of the contract is available on the BT website : http://btwebworld.com/BTSERVICEPROVIDER/ The contract also includes a number of annexed schedules: 3.11 Schedule 1 - Service schedule This details the exact service that Service Providers can expect from BT and BT’s requirements from Service Providers in providing the Calls & Access service. This schedule specifically covers matters such as provision, transfers, cancellation of service, service guarantees and compensation. It also gives detailed guidance on service assurance and problem management, provision of call data records and the extent to which BT will liase with the End Users. 3.12 Schedule 2 - Rollout Plan BT requires the Service Providers to provide a Rollout plan of individual forecasts for intended rollout of the service on a three month linear basis, to be agreed three months in advance. Implementation of any orders exceeding the Rollout plan must be agreed by the Service Providers and BT. The provisions of Schedule 1 relating to implementation will not apply to instances where orders are in excess of forecasts. 3.13 Schedule 3 - Service Provider Gateway This schedule describes the functionality of the Gateway ordering mechanism, BT’s responsibilities in operating and maintaining the Gateway for example, providing valid passwords, User ID, help screens within the Gateway and copies of the user guide. The Service Provider responsibilities in using the Gateway include compliance with any instructions contained in the User Guide and safeguarding against the unauthorised use of the facilities provided for authorised users. 3.14 Schedule 4 - Instructions for the use of the BT name and Trade Marks Descriptions of how and when Service Providers are entitled to use the BT name and trade mark in relation to their own service. The Service Provider is permitted to state that it uses BT's network to provide the Calls & Access service. However, Service Providers cannot claim that they are in any manner part of the BT group, has any form of partnership with BT or has been appointed as a distributor by BT. 3.15 Schedule 5 - Service Level Agreement. This schedule contains the Service Level Agreement between BT and the Service Provider for the Calls & Access service. The schedule includes timescales for BT to provide updates to documentation relating to the Calls & Access service. The schedule details specific quality of service targets for BT to action transfers, provision new orders and set up select service orders. 3.16 The Service Guarantee within schedule 5 sets out BT's responsibilities for provisioning, repair, missed appointments, disconnections in error, and compensation payable. Service Providers will be entitled to claim compensation (maximum of £1000 per line) if BT fails to meet its service level agreements. The Service Guarantee will not cover faults other than within BTs network and instances where the Service Provider has not reported a failure of the service to BT. Compensation will not be payable when matters are beyond BTs reasonable control. 3.17 The Service Guarantee makes specific mention of the Gateway availability targets. BT will ensure that the gateway is available to all Service Providers by publishing measurable targets against which compensation will be payable if these are not met. 3.18 The Service Providers will be able to order maintenance service care options in the form of Standard, Prompt and Total care. The charges for Prompt and Total care will be made available in the BT Price List.
Reactions to BT's proposals from the Calls & Access Interest Group (CAIG) and particular areas of disagreement. 4.1 CAIG has provided reactions to BT's suggestions on how it intends to address quality of service issues on the Calls & Access product. Reactions have also been received in submissions to Oftel from current and potential Calls & Access Service providers. 4.2 Oftel currently believes that there are some issues being discussed which could be resolved through further discussion between the parties. However, there also appear to be some issues on which there is little likelihood of agreement. In this Chapter the issues which can hopefully be resolved through further discussion are set out in Part (a) while the issues on which there is significant disagreement are set out in Part (b). Oftel’s initial conclusions in relation to the issues identified in Part (a) and Part (b) are stated and questions are also posed on which comments are invited. Part (a) Service Provider concerns on the Calls & Access contract where potential resolution between the parties is likely 4.3 Service Providers cannot guarantee that they will be able to provide BT site engineers access to end-user sites at all 'reasonable times' as per the contract and recommend that this be changed to 'working hours' 4.4 In regards to a faulty service, Service Providers should not have to indemnify BT against a failure in service, especially if this failure has been the result of BT's actions. 4.5 With reference to confidentiality, although the BT contract states that parties will keep in confidence any information of a confidential nature, the Service Providers are concerned that information on End Users and promotional campaigns may be passed within BT and that the contract needs a clause explicitly forbidding this. 4.6 Termination of Contract. Under the terms of the draft contract BT is able to terminate the contract on three months notice. Service Providers believe the notice period is too short and that thirty six months may be a more appropriate time scale. 4.7 Contact with End-users. In the event that BT terminates or suspends a contract, BT will contact the end-users to inform them how this will affect their telecommunications service. BT will outline options available to the End-users to avoid disconnection. Service Providers believe it to be unacceptable that BT should contact their customers in the event of a suspension of service, which may be disputed and overturned. Service Providers have expressed their concern at the proposed level of BT contact with Service Provider End Users and insists on clear restrictions on any such contact. 4.8 Service Providers require much greater clarity on the services available under the Calls & Access product. The contract needs to define targets and time scales for processing Service Provider order forms. BT's commitment to provide services over the Gateway needs to be far more specific and response times for fault repair should be the same as those provided for BT's own retail service. 4.9 BT must give more explicit guarantees of appropriate co-ordination of transfers of End Users from one Service Provider to another. Service Providers believe that they should vet drafts of letters to be used by BT to explain respective roles and obligations of BT and Service Providers to End Users. 4.10 Roll out plan: Service Providers believe that it is very difficult to predict the take up of a service and that they should not have to commit to a linear rollout. The Rollout forecasts are deemed to be unnecessary and the requirements for a three month rolling forecast unfeasible. Service Providers also note that under the terms of the contract BT would be exempt from service schedule obligations if End Users orders exceed agreed forecasts. 4.11 Service Providers have expressed concerns in regard to BT distinguishing between ‘firm dates' which BT is contractually bound to and 'target dates' which do not have a contractual force but are shorter than the firm dates. Service Providers believe that BT's performance should be assessed in respect of their shorter target dates. Oftel’s initial conclusion and request for comments 4.12 Substantial progress been made in discussions between CAIG and BT and many areas of the draft quality of service documentation have been resolved or are close to resolution. This progress has been reported to Oftel following regular meetings between BT and CAIG in the first half of 2000. The issues identified in paragraphs 4.3 to 4.11 are illustrative of the areas of the draft contract where there is still disagreement but which Oftel believes can be resolved without formal intervention. It should be noted that the list contained in paragraphs 4.3 to 4.11 is not exhaustive and only represents some of the broad areas of disagreement between BT and Service Providers. However, Oftel is also aware that a clear impetus needs to be given to achieving final resolution on this matter. 4.13 In these circumstances Oftel’s initial conclusion is that it should set a specific deadline for BT and Service Providers to agree on the broad range of Quality of Service issues where resolution between the parties appears possible as illustrated in paragraphs 4.3 to 4.11. If this deadline is passed and resolution is not reached the Director General will consider issuing a Direction as detailed in Chapter 5 of this document, to set such quality of service standards in the Calls & Access contract BT has with Service Providers. Oftel proposes that this defined period for achieving resolution between BT and Service Providers should start one week after the closure of the two week period for comments on the representations received on this document. The period for achieving resolution would continue for 6 weeks with a deadline for agreement being set for 13 September 2000. 4.14 Oftel asks for comments on this initial conclusion addressing the following questions:
Part (b) Service Provider concerns where resolution between the parties does not appear possible. BT’s ‘Save’ and ‘Winback’ activities 4.15 Service Providers and CAIG have expressed concern at BT’s marketing activities directed to Calls & Access End User customers. Currently when a BT End User informs BT that he/she wishes to transfer service to a Calls & Access Service Provider, BT makes two attempts to persuade that End User not to move to the Service Provider before the transfer takes place. This is referred to as ‘save’ activity. After the End User has transferred to a Calls & Access Service Provider they may also be contacted by BT marketing in order to persuade them to return to BT. This is referred to as ‘winback’ activity. ‘Save’ and ‘winback’ activities are carried out by BT in relation to the End Users of competing network operators (e.g customers of cable operators) in the same way as with Calls & Access Service Provider End Users. CAIG’s view 4.16 CAIG believes that BT should not carry out ‘save’ and ‘winback’ activities against Calls & Access Service Providers because Service Providers are fundamentally different to competing network operators. CAIG believes that because network operators pay ‘cost based’ interconnection prices to BT and take call traffic revenue and line rental revenue away from BT they are clearly competitors of BT and it is legitimate for BT to undertake ‘save’ and ‘winback’ activities against them. In contrast CAIG believes that because the pricing of the Calls & Access product to Service Providers is on a ‘retail minus’ basis, which allows BT to make the same level of profit as with its own retail services, Service Providers are not competitors with BT and are instead growing traffic over its network. Therefore CAIG thinks that it does not make economic sense for BT to market against Service Providers and that to do so is discriminatory and anti-competitive. BT’s view 4.17 BT believes that Service Providers are clearly competitors to BT which it is legitimate for it to undertake ‘save’ and ‘winback’ activities against. BT maintains that though Service Providers use the BT network, BT loses its direct customer relationship with the End User which prevents it from potentially selling a range of services to them. In addition many Service Providers route a certain amount of their call traffic away from the BT network through indirect access arrangements. Therefore BT believes that it does lose out when an End User customer moves to an Service Provider and so it is sensible for it to attempt to ‘save’ or ‘winback’ that End User. Oftel’s initial conclusion and request for comments 4.18 Oftel believes that BT is entitled to carry out ‘save’ and ‘winback’ activities against Service Providers as long as in carrying out those activities it does not place itself in breach of the terms of its licence and/or the Competition Act 1998. At the current time there are no specific restrictions on BT’s ‘save’ or ‘winback’ activities on the basis of who those activities are targeted against. Oftel does not agree with CAIG’s view that Service Providers are not competitors of BT as it is clear that BT Retail loses its customer relationship with End Users when they transfer to a Service Provider thereby restricting its potential to generate revenue by selling additional services and products (e.g. Internet Service Provision) to that End User. BT may also lose call revenue when an End User customer switches to a Service Provider who routes some of its calls via Indirect Access. 4.19 Oftel’s initial view is that BT is currently not in breach of its licence obligations or the Competition Act 1998 in relation to its ‘save’ and ‘winback’ activities against Calls & Access Service Providers. 4.20 Oftel also believes that it would not be beneficial to the interests of consumers or the promotion of effective competition if Service Provider End User customers were prevented from receiving marketing information on BT’s products and services. 4.21 In these circumstances Oftel’s initial conclusion is that BT should not be prevented from undertaking ‘save’ and ‘winback’ activities against Calls & Access Service Providers within the framework of its existing regulatory obligations. 4.22 Oftel asks for comments on this initial conclusion addressing the following questions:
BT’s right to unilaterally change the terms of the Calls & Access contract under the terms of Clause 20.2 4.23 Clause 20.2 of the draft Calls & Access contract which BT wishes to implement states that:
4.24 Clause 20.3 of the draft contract states that certain elements of BT’s Service Level agreements with Service Providers (which are included as a schedule to the contract) can only be amended by written agreement of BT and the Service Provider. Excluded from this requirement for agreement in relation to Service Level Agreements are any changes needed to comply with legal or statutory obligations, the conditions of BT’s licence and any order made by Oftel. CAIG’s view 4.25 CAIG believes that clause 20.2 of the draft contract is unenforceable under the Unfair Contract Terms Act 1977. CAIG also believes that 20.2 creates uncertainty in the contractual relationship between Service Providers and BT which will make it difficult to ensure that there are high quality of service standards. In addition CAIG believes that such uncertainty in the contractual relationship will increase an Service Provider’s cost of raising capital therefore hampering the development of competition in this sector. CAIG accepts that BT has specific legal and regulatory obligations and that it should have the right to unilaterally vary the Calls & Access contract to comply with those obligations. BT’s view 4.26 BT believes that Calls & Access is a new service which BT has significant commercial risks in providing. This risk is increased by BT’s regulatory obligations which make it extremely difficult for it to withdraw the service, even if it is not commercially viable. In these circumstances BT believes that it needs to retain the right to alter the contract unilaterally to manage its risk in such a new and uncertain commercial environment. BT also points to its need in regulatory terms to have a stated set of terms for the Calls & Access product which can be applied consistently to all Service Providers. BT believes that Service Providers do not need to be concerned with the rights given to BT by Clause 20.2 as BT will continue to have various regulatory and legal obligations which prevent it from acting in an arbitrary or disproportionate manner and which Service Providers can rely on to challenge BT’s actions if they are unhappy with them. BT also assures Service Providers that it is a reputable company and would not intentionally seek to introduce terms which are unreasonable and to Service Providers’ material detriment. BT believes that the draft Calls & Access contract, which is the result of much discussion between itself, Service Providers and the Regulator, already, "provides a good degree of protection for Service Providers in enhancing the provision of service and ensuring consistency and fairness between all the Service Providers". Oftel’s initial conclusion and request for comments 4.27 Oftel’s believes that the terms of 20.2 of the Calls & Access contract may, as currently drafted, be too restrictive on Service Providers and gives BT too wide a remit to arbitrarily change areas of the contract potentially to the significant detriment of the quality of the Calls & Access service and therefore Service Providers and their End User customers. Oftel believes that in an on-going commercial relationship between BT and Service Providers the contract should be specific as to those circumstances in which BT can exercise a unilateral right to amend the Calls & Access contract. In this way Service Providers and their End Users can have continued assurance and clarity on quality of service issues. Oftel does agree that, in certain circumstances relating to BT’s legal, statutory and regulatory obligations, it is reasonable for BT to retain the right to unilaterally change the Calls & Access contract. However any further circumstances where BT requires the right to amend the contract unilaterally should be specifically stated in the contract, leaving any other changes to be subject to agreement between the Service Providers and BT. 4.28 In these circumstances Oftel’s initial conclusion is that the Director General use his powers as described in Chapter 5 of this document to amend Section 20.2 of the Calls & Access contract to state specifically all the circumstances in which BT retains the right to unilaterally amend that contract. 4.29 Oftel asks for comments on this initial conclusion addressing the following questions:
Oftel's legal position DG’s powers to alter contracts for public operators 5.1 In order to successfully resolve the differences between BT and the Service Providers, Oftel has considered what are the most suitable powers available to the Director General to intervene in the content of certain contracts for the provision of the telecommunications services under the Telecommunications Act 1984 and a number of statutory instruments. 5.2 In the context of the Calls & Access product, it appears to the Director General that the most suitable powers for him to use are those contained in the "Telecommunications (Open Network Provision) (Voice Telephony) Regulations 1998" ("the RVTD Regulations"). Regulation 15(4) contained within the RVTD regulations would appear to apply. Regulation 15(4) states: "The Director may direct, on his own initiative or following a request by an organisation representing user or consumer interests, that the conditions of contracts and of compensation or refund schemes or both which have been provided by public operators providing access to a fixed public telephone system or a mobile public telephone network or both, insofar as they concern matters subject to the provisions of these Regulations, shall be altered in order to protect the rights of users or subscribers or both. Any person who is a party to such contract shall be under a duty to comply with any such direction." Where the Director General makes a Direction under Regulation 15(4) the terms of that Direction become binding upon the parties to the contract. 5.3 In general the Calls & Access Contract relates to commercial arrangements between BT and Service Providers, and Oftel would not normally expect to intervene in such areas except to the extent that End Users were being disadvantaged. The RVTD Regulations allow the Director General to set quality of service standards to ensure that End Users are provided with a satisfactory level of service. The DG's overall aim is to promote a mutually acceptable quality of service commitment which when undertaken by both BT and Service Providers will ultimately benefit End Users. 5.4 Therefore, bearing in mind the questions posed in Chapter 4, if the Director General was minded to formally intervene in setting the terms of the Calls & Access contract in order to address quality of service standard issues, he proposes to do so using his powers under the RVTD Regulations.
Summary of initial conclusions and requests for comments and consultation 6.1 In summary, the initial Oftel conclusions and questions on which responses are requested in Chapter 4 of this document are as follows: In relation to Service Provider concerns on the Calls & Access contract where potential resolution between the parties is possible (Paragraphs 4.3 to 4.14 ) Oftel should set a specific deadline for BT and Service Providers to agree on the broad range of Quality of Service issues where resolution between the parties appears possible as illustrated in paragraphs 4.3 to 4.11. If this deadline is passed and resolution is not reached the Director General will consider issuing a Direction, using powers detailed in Chapter 5 of this document, to set such quality of service standards in the Calls & Access contract BT has with Service Providers. Oftel proposes that this defined period for achieving resolution between BT and Service Providers should start one week after the closure of the two week period for comments on the representations received on this document. The period for achieving resolution would continue for 6 weeks with a deadline for agreement being set for 13 September 2000. Oftel asks for comments on this initial conclusion addressing the following questions:
In relation to Service Provider concerns where resolution between the parties does not appear possible. BT’s ‘Save’ and ‘Winback’ activities (Paragraphs 4.15 to 4.22) BT should not be prevented from undertaking ‘save’ and ‘winback’ activities against Calls & Access Service Providers within the framework of its existing regulatory obligations. Oftel asks for comments on this initial conclusion addressing the following questions:
BT’s right to unilaterally change the terms of the Calls & Access contract under the terms of Clause 20.2 (Paragraphs 4.23 to 4.29) The Director General should use his powers as described in Chapter 5 of this document to amend Section 20.2 of the Calls & Access contract to state specifically all the circumstances in which BT retains the right to unilaterally amend that contract. Oftel asks for comments on this initial conclusion addressing the following questions:
6.2 Oftel seeks the views of consumers and industry on the questions posed in this consultation document by12 July 2000. There will then be a 2-week further period, as usual, during which comments on the representations made during the first period of this consultation are invited; this will end on 26 July 2000. Views and comments should be made in writing and should be sent to: John Russell Tel: (020) 7634
- 8830 6.3 Written comments will be made publicly available in Oftel’s Research and Intelligence Unit except where respondents indicate that their response, or parts of it, are confidential. Respondents are therefore asked to separate out any confidential material into a confidential annex which is clearly identified as containing confidential material. In the interests of transparency, respondents are requested to avoid confidentiality markings wherever possible. Appointments to view written comments in Oftel’s Research and Intelligence Unit, which must be made in advance, can be arranged by ringing: (020) 7634 8761 [fax: (020) 7634 8946] .Internet Access 6.4 Oftel would like to set up a link between this Consultation Document on Oftel's web site and any responses placed on respondents own Internet pages. Please contact Jo Hamilton at Oftel on (020) 7634 8755 or by e-mail to arrange this. Confidential responses should not be sent via the Internet. Oftel has a free e-mail based mailing list to help people stay informed about the work that Oftel is doing. Each time an Oftel document is published and placed on Oftel’s web site subscribers to the list receive e-mail informing them about the document. If you would like to join please click here. Alternative Formats 6.5 Oftel documents are available in the following formats:
Please contact the Oftel Research and Intelligence Unit on (020) 7634 8761, or by e-mail, or call textphone (020) 7634 8769 for more information. Both Provisional orders issued by the Director General against BT in relation to Calls & Access can be viewed at The Oftel Website: Oftel acts against BT Calls & Access problems August 1999 Oftel acts against BT Calls & Access problems October 1999
Calls & Access: A wholesale product available from BT which allows Service Providers to rent a BT Telephone line and then supply it and calls over it to the Service Providers own customers. CAIG: Calls & Access Interest Group, consisting of Current and Future Service Providers CDR: Call Data Records; Raw Call data gathered by BT relating to individual exchange lines COTs: Customer Options Team, BT's telesales team which gives specific advice on BT's and competitors telecommunications services. DG: Director General of Telecommunications End User: The Customer who contracts with the Service Provider for the Calls & Access Telephone service Gateway: Facility which enables the Service Provider to manage and place orders electronically. Access to the Gateway is via the Internet One-Bill: Monthly Call Bill from BT to Service providers derived from BT’s Computer Service Systems and recommended to be used by the Service Providers to bill End Users. OLOs: Other Licenced Operators - companies other than BT, which operate telecom systems. Provisioning: Supply and enable an End User to use the calls and access product Public Switched Telephone Network (PSTN): The Telecommunications networks of the major Operators, on which calls can be made to all Customers of all PSTNs. RVTD Regulations: The Telecommunications (Open Network Provision)(Voice Telephony) Regulations 1998 Service Providers: Businesses which provide telecommunications services to End Users without owning their own networks.
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