The Universal Service Obligation (USO) is at the heart of Oftel's work on protecting consumers, ensuring that basic telephone services are available to all at an affordable price.

BT (and Kingston Communications in the Hull area) are designated universal service providers and have to provide consumers with a telephone line on reasonable request, as well as special tariff packages to help people on low incomes.

Oftel has reviewed the USO and published a statement Universal Service Obligation in August 2001 setting out its conclusions and a work programme to 2003.

The review found that 7% of homes in the UK do not have a fixed line phone. Most people without a phone have low incomes and for them cost and the ability to control expenditure are vital considerations. 85% of those without a fixed line phone own a mobile phone and are mainly satisfied with this alternative.

Most people consulted by Oftel felt that the current level and scope of the USO are effective, although some felt that Oftel should take more account of mobile telephony under the USO. Consumer groups urged Oftel to take further action on the number of disconnections and thought BT should introduce a more flexible test on 'reasonableness' when customers request a line.

As a result Oftel concluded that the USO should continue, meaning that BT and Kingston will still be obliged to provide:

• a basic connection to the fixed network, on reasonable demand;
• special tariff packages to help people on low incomes;
• proportionate and non-discriminatory disconnection procedures which are made publicly available.

Oftel will continue to monitor consumers' satisfaction with their primary means of telephony, including mobiles and call boxes. In addition, BT and Oftel will work together to draw up guidelines on determining 'reasonableness' of requests for service by residential and business customers.

In its statement Oftel looked in particular at the following issues:

Special schemes and mobile users

Mobile phone users are currently excluded from low-cost tariff schemes, and BT has been asked to review this policy to ensure that low-cost schemes remain available for all users on low incomes and with special needs. Oftel will review all schemes in 2003.

Disconnections
The number of disconnections is not falling significantly. All operators should ensure that their disconnection procedures are appropriate, fully implemented and adequately publicised. Oftel will bring together operators and consumer representatives to discuss disconnections and establish a 'good practice' guide, at a workshop for stakeholders taking place later this month.

Services for consumers who are disabled
Oftel will require fixed operators to report formally on their compliance with the conditions on services for disabled people to ensure that provision is being made for this group of consumers. Oftel will encourage mobile operators to introduce measures similar to those made by fixed operators.

Public call boxes
Oftel has opened a consultation on payphones which includes consideration of the current criteria for installing payphones on the grounds of social need as well as current guidance on the removal and resiting of public call boxes.

Cost of the USO
Oftel concluded that the costs of USO should continue to be met by BT and Kingston. Oftel will consider this issue again as part of its review of retail markets scheduled for completion in 2002.

Internet access under the USO
The consultation revealed concern that the minimum data speed set at European level might be too low for Internet access. Oftel proposes to review what level should be set in the UK from 2003 if, as expected, European requirements change and the USO is extended to cover some form of Internet access.

While the USO covers only basic telephony and data, Oftel supports the goal of having extensive higher bandwidth communications networks and is developing a regulatory environment to encourage this. High bandwidth services are not currently part of the USO, but Oftel will keep this statusunder close review, carrying out further research and working with Government, industry and consumers.

For further information contact Alan Pridmore (tel: 020 7634 8910/e-mail: alan.pridmore@oftel.gov.uk).