On 20 December 2002, Oftel published an updated payphones policy statement which confirms its commitment to ensure an adequate provision of public call boxes (PCBs) across the UK.

The statement followed a consultation, launched in November 2001, which reviewed the state of the payphones sector. It was carried out to ensure that the level of regulation in the payphone market provides a reasonable balance between protecting the needs of the public and avoiding unnecessary regulation.

The review found that, despite the rise in mobile phone ownership, there remains a social need for payphones. Research has shown that a wide range of consumers still rely on payphones, especially those on low incomes. It also shows that mobile phone users also use payphones for certain purposes - for example, if they run out of credit or if their battery is flat.

Oftel's statement, therefore, concluded that the current regime for payphones should continue for the time being. The statement sets out how BT and Kingston (in the Kingston-upon-Hull area), as the two designated universal service providers of PCBs, should approach their obligations of providing payphones throughout the UK.

It also contains amended guidelines on the removal and re-siting of payphones. The guidelines underline Oftel's commitment to ensure the availability of PCBs in areas where they might not be sited for commercial reasons alone, such as high density social housing areas or rural locations.

The guidelines are now clearer and the process that BT or Kingston must follow to remove or re-site a single payphone has been reinforced. A certain amount of thinning out of payphone provision in the next few years is inevitable, given declining usage, especially in urban and suburban areas. Therefore, the revised guidelines encourage an efficient use of payphones by allowing BT and Kingston to remove PCBs from sites where there is more than one, providing at least one remains.

The UK has more than 103,000 PCBs - those that are accessible by the public on a 24 hour basis. There are also 43,000 operator managed payphones which are situated on private land such as railway stations and motorway service stations.

Research shows that UK consumers get a good deal compared to other comparable European countries in terms of number of PCBs per head, boasting one of the highest ratios in Europe. Around 95 per cent of PCBs are in full working order and the UK has specific requirements concerning access for disabled people, which go further than European requirements.

In its statement, Oftel confirms its intention to ensure that both universal service providers comply with their obligations to provide access to PCBs for people with disabilities. Oftel is also proposing to liase with BT and Kingston regarding possible guidelines for barring incoming calls in limited circumstances.

Oftel proposes that, under the new regulatory regime which comes into force in July 2003, the guidelines should be replaced by directions from Ofcom to the designated universal service providers of payphones. Oftel will be consulting on the detail of the directions, so there will be a further chance later in the year for stakeholders to present their views to Oftel on the provision of payphones. The need to ensure that regulation remains proportionate is important, particularly as market conditions and consumer needs have been changing over the last few years.

For further information, contact Harriet James (tel: 020 7634 5374 / e-mail: harriet.james@oftel.gov.uk).