Oftel has published proposals to ensure that telecoms companies meet the cost of removing or making safe redundant telecoms apparatus from public land if a telecoms company ceases to trade or has its licence revoked.

Under the terms of their licences, telecoms operators which have the benefit of the Telecommunications Code (the Code grants a number of rights and obligations concerning access to private and public land) must ensure that funds are available for highway authorities to remove or make safe apparatus such as public payphones and street cabinets from public land if the apparatus becomes redundant. This provision is known as Funds for Liabilities.

As competition in telecommunications continues to develop and operators are offering more and more new and innovative services, Oftel recognises that operators continue to need access to public land in order to build out infrastructure.

However, highway authorities and other public bodies need to know that sufficient funds are available to meet the costs of removing or making safe apparatus that is no longer in use.

Currently, individual operators make their own funding arrangements, which must be approved by Oftel. As there are now many more telecoms operators, Oftel believes that more formal measures are now needed which comply with European legislation, particularly in relation to transparency.

In a consultation document published in June, Oftel invited views, particularly from the industry and highway authorities, to help Oftel update its policy on funds for liabilities.

Oftel arranged meetings with the industry and highway authorities in order to help them focus their responses to the important issues raised by the consultation document. The meetings were followed by a joint workshop. Both were very productive and there was a full and frank exchange of ideas.

The consultation has now closed and Oftel expects to publish a statement later in the autumn.

For further information contact Neil Paterson (tel: 020 7634 8732/e-mail neil.paterson@oftel.gov.uk).