Oftel takes action to remove regulation

In line with its strategy to apply regulation only where necessary, Oftel recently took deregulatory action in three different sectors where changes in the market had meant that regulation was no longer appropriate.

Revocation of the Satellite Uplinking Order

In April Oftel revoked an Order relating to BT's satellite uplinking services and related backhaul circuits.

Satellite uplinking services and backhaul circuits provide a link between a TV studio and a satellite, via BT tower.

The Order, which was made in 1995, required BT to provide backhaul circuits to its competitors on the same terms and conditions as those provided to its own satellite uplinking business.

Oftel concluded that changes to BT's operating and internal compliance procedures meant that breaches similar to those that resulted in the Order were no longer likely, and removed the order.

Call Minder Order

Oftel has also revoked the Order that required BT to provide its Call Minder service on a wholesale basis to other operators.

BT’s Call Minder is a voice messaging service that allows people to receive messages via BT’s network instead of using an answering machine.

The Order was made in December 1997 and required BT to offer its Call Minder products to other operators and service providers on the same terms and conditions and at the same price as it provided them to its own business.

Changes have now been made to the way BT offers voice messaging services. Oftel was satisfied that the Order was no longer necessary and, in March, removed the Order.

Removal of the Telephone Equipment Direction

Finally, Oftel has proposed to remove the Telephone Equipment Direction, which prevented BT from subsidising its telephone equipment business.

The Direction was issued in 1995, and amended in 1997, to prevent BT from subsidising areas of its telephone equipment business such as the sale of telephones, answer machines and faxes.

While the direction played an important part in establishing a more competitive market, BT’s market share has decreased and high street retailers have emerged as major suppliers of telephone equipment.

Oftel therefore concluded that, as BT no longer has market power, any cross-subsidy would not have a material effect on competition in this market and that the Direction should be removed.

For further information

on the Call Minder revocation please contact David Blocksidge (tel: 020 7634 8995 / e-mail: david.blocksidge@oftel.gov.uk)
on the Satellite Uplinking Order revocation please contact Brian Malone (tel: 020 7634 5349 / e-mail brian.malone@oftel.gov.uk)
on the Telephone Equipment Direction please contact Paula Davy (tel: 020 7634 8976 / e-mail paula@davy@oftel.gov.uk).