Draft direction of a dispute between BT and operators over BT's Transit Risk Review Supplemental Agreement

Draft direction under Regulation 6(6) of the Telecommunications (Interconnection) Regulations 1997 relating to a dispute between British Telecommunications plc ("BT") and the operators listed in the Schedule over BT's Transit Risk Review Supplemental Agreement - 31 October 2002

The draft direction

Schedule Operators in dispute with BT

Explanatory Memorandum

Chapter 1 Summary

Chapter 2 Background

Chapter 3 History of the dispute

Chapter 4 Submissions of the parties

Chapter 5 The Director General’s considerations

Chapter 6 Consultation and timetable for responses

Annex Operators which made submissions to the Director

DRAFT DIRECTION UNDER REGULATION 6(6) OF THE TELECOMMUNICATIONS INTERCONNECTION REGULATIONS 1997 RELATING TO A DISPUTE BETWEEN BRITISH TELECOMMUNICATIONS PLC ("BT") AND THE OPERATORS LISTED IN THE SCHEDULE OVER BT’S TRANSIT RISK REVIEW SUPPLEMENTAL AGREEMENT

Whereas:

(A) The Secretary of State granted to British Telecommunications on 22 June 1984 a licence (the "BT licence") under section 7 of the Telecommunications Act 1984 ("the Act") for the running of telecommunications systems specified in that licence;

(B) By virtue of section 109 of, and paragraph 20 to, Schedule 5 of the Act the BT licence has effect as if granted to British Telecommunications plc ("BT");

(C) The Secretary of State has granted to each of the operators listed in the Schedule a licence under section 7 of the Act for the running of telecommunications systems specified in that licence;

(D) The operators listed in the Schedule entered into a Standard Interconnect Agreement ("SIA") with BT on the dates set out in the Schedule;

(E) The SIA allows either party to seek to amend the SIA by serving on the other a review notice in certain circumstances. On service of a review notice, the SIA requires that the parties negotiate in good faith the matters to be resolved with a view to agreeing relevant amendments to the SIA. Where the parties fail to reach agreement on the subject matter of a review notice within a period set out in the SIA, either party may, within a period set out in the SIA, request the Director to determine the matters upon which the parties have failed to agree;

(F) On 18 December 2001, BT served a review notice ("the Review Notice") on the operators listed in the Schedule. The Review Notice sought amendments to the SIA to introduce reciprocal provisions covering certain bad debt risks in a transit situation;

(G) For the purposes of the Review Notice, the SIA allows for a three month period of negotiation, followed by a three month period within which either party may make a request to the Director to determine any matters upon which the parties have failed to agree;

(H) On 15 April 2002, and following negotiation between the parties which did not result in agreement on the Review Notice, BT sent a proposed supplemental agreement to the SIA signed by BT ("the Supplemental Agreement") to the operators listed in the Schedule. The Supplemental Agreement incorporated BT’s proposals as set out in the Review Notice. BT sought the return of a copy of the Supplemental Agreement, signed and dated by the operators listed in the Schedule, by 7 May 2002;

(I) On 13 May 2002, BT wrote to the operators listed in the Schedule seeking the return of a copy of the Supplemental Agreement, signed and dated by those operators, by 20 May 2002. In that letter, BT stated that any operator which had either

(i) indicated their intention not to sign the Supplemental Agreement, or

(ii) not returned a signed and dated copy of the Supplemental Agreement to BT by 20 May 2002,

would be assumed to be in dispute with BT in relation to the Supplemental Agreement;

(J) As at 20 May 2002, the operators listed in the Schedule had either:

(i) indicated their intention not to sign the Supplemental Agreement, or

(ii) not returned a signed and dated copy of the Supplemental Agreement to BT,

and therefore a dispute has arisen;

(K) On 24 May 2002, in accordance with the provisions of Regulation 6(6) of the Telecommunications (Interconnection) Regulations 1997 ("the Regulations"), BT referred the dispute to the Director for determination;

(L) Regulation 6(6) of the Regulations provides that where there is a dispute concerning interconnection between organisations, the Director General of Telecommunications ("the Director") shall, at the request of either party, take steps to resolve the dispute within six months of the date of the request. The direction which the Director makes to resolve the dispute must represent a fair balance between the legitimate interests of the parties, and must be notified to the parties in accordance with Regulation 8(3). The parties are entitled to a full statement of the reasons on which the direction is based;

(M) The Director has considered, inter alia, the information provided by the parties and the matters set out in Regulation 6(8) of the Regulations. The principal points are summarised in the explanatory memorandum which accompanies, and is published with, this direction;

(N) The Regulations place upon the Director the general responsibility to encourage and secure adequate interconnection in the interests of all users;

(O) The Director issued a draft of this direction and the explanatory memorandum which contained the Director’s reasons on 31 October 2002 and responses were invited by 28 November 2002;

(P) Non-confidential comments were received from [xx] as detailed and discussed in Chapter [x] of the explanatory memorandum which accompanies and is published with this direction. The Director in making this direction has taken these comments into account;

THEREFORE:

Pursuant to Regulation 6(6) of the Regulations, and having considered, inter alia, the views of the parties and those matters set out in Regulation 6(8) of the Regulations, the Director makes the following direction to resolve the dispute between BT and the operators listed in the Schedule:

1. The operators listed in the Schedule shall not be required to sign the Supplemental Agreement nor agree to BT’s proposals for amendment to the SIA set out in the Review Notice.

2. Except as otherwise defined in this direction, words or expressions used shall have the same meaning as in the Act, the BT licence or BT’s Standard Interconnect Agreement as appropriate.

3. This direction shall take effect on the day it is published.

Heather Julie Clayton

Director of Investigations

A person authorised under Paragraph 8 of Schedule 1 to the Telecommunications Act 1984

………. 2002

Schedule – Operators in dispute with BT

	Operator	Agreement Date
	186K Ltd	June 27, 2001
	4D Telecom Limited	July 20, 1998
	Allied Communications (UK) Ltd	August 18, 2000
	Alpha Telecom (UK) Ltd	August 11, 1999
	America First Ltd	October 19, 1998
	AUCS Communications Services (UK) Ltd	November 25, 1999
	Band-X Managed Services plc	September 12, 2001
	Bis Ltd	October 6, 2001
	Broadsystem Ventures Ltd	May 24, 1999
	BT Cellnet Ltd	May 24, 1996
	Cable & Wireless Communications (Mercury)	September 23, 1997
	Call Sciences Ltd	June 13, 1997
	Carrier 1 UK Ltd	August 17, 1998
	Cellcom Ltd	December 4, 1997
	Cheers International Telecom Ltd	October 3, 2001
	Colloquium Ltd	February 7, 2002
	COLT Telecommunications	July 24, 1996
	Communications 2000 Group plc	August 14, 2000
	Communications Networking Services (UK)	January 5, 2000
	Core Telecommunications Ltd	February 11, 1998
	Darose Ltd	December 21, 1999
	Dolphin Telecommunications Ltd	May 11, 1998
	Easynet Group PLC	December 18, 1997
	Ecosse Telecommunications Ltd	November 11, 1998
	Edinburgh Network Technologies Ltd	December 20, 1999
	EESCAPE Limited	August 16, 1999
	Eircom NI Limited	July 12, 1999
	Energis Carrier Services UK Ltd	December 4, 1997
	Energis Communications Ltd	June 20, 1997
	E-Tel Ventures plc	January 21, 2002
	Eurocall Ltd	September 27, 1996
	First Telecom PLC	April 22, 1998
	GKC Communications Ltd	April 23, 2001
	Global Crossing (UK) Telecommunications Ltd	August 31, 1995
	Global Crossing Communications International Ltd	June 27, 1997
	Global Electroteks Ltd	April 30, 2001
	Hutchison 3G UK Ltd	August 13, 2001
	IDT Global Limited	April 21, 1999
	IMS Telecom Ltd	March 9, 2001
	INMS UK LTD	December 23, 1999
	Intelnet Communications Limited	February 16, 1999
	International Telecom plc	July 31, 2000
	Interoute Telecommunications (UK) Ltd	July 10, 1997
	Interweb Design Limited	April 6, 2000
	Iomart Limited	March 29, 1999
	Ipsaris Ltd	May 8, 2001
	Isle of Wight Cable & Telephone Company Ltd	October 30, 2000
	iXnet UK Ltd	December 20, 1996
	Keycom plc	September 9, 2000
	Kingston Communications (Hull) PLC	December 17, 1998
	Level 3 Communications Limited	March 24, 2000
	Libertysurf Communications Ltd	July 6, 1998
	Long Distance International Ltd	September 10, 1997
	Manet Telecom Ltd	April 26, 2001
	MCI WorldCom Ltd	February 20, 1997
	MediaWays.UK Ltd	January 9, 2001
	NetKonect Communications Ltd	March 8, 1999
	Nevada Tele.Com Limited	January 24, 2000
	North American Gateway Ltd	July 22, 1999
	OMNE Communications Ltd	June 26, 2001
	One 2 One Personal Communications Limited	June 17, 1996
	Opal Telecommunications PLC	December 17, 1996
	Opera Telecom Ltd	February 16, 2000
	Orange Personal Communications Services Ltd	December 13, 1996
	Pacific Gateway Exchange (UK) Ltd	June 30, 1998
	PageOne Communications Ltd	January 26, 2000
	Patientline UK Limited	April 18, 2000
	PNC TELECOM plc	August 3, 2000
	Powernet Telecom plc	June 2, 1999
	Premier Communications International Ltd	April 26, 2001
	Primus Telecommunications Ltd	January 7, 1997
	Prodigy Internet Ltd	September 12, 2001
	Rateflame Limited	June 25, 1999
	Reach Europe Ltd	March 27, 1997
	Redstone Communications Ltd	May 22, 1996
	Skymaker Limited	December 9, 1998
	Star Telecommunications Inc	January 15, 1998
	Starcomm Limited	November 2, 1999
	Startec Global Communications UK Limited	September 15, 1999
	Storm Telecommunications Ltd	May 18, 1999
	Stratos Global Ltd	January 5, 2001
	Swiftnet Ltd	August 8, 2000
	Syntec UK Limited	February 5, 1999
	T3 Telecommunications Limited	June 25, 1999
	Telco Network Services Ltd	March 13, 1997
	Tele 2 Communications Services Limited	March 30, 1999
	Telecentric Solutions Ltd	February 29, 1996
	Telecom Art Limited	April 20, 1999
	Telecom GB Ltd	September 19, 2000
	Telecom One Ltd	May 12, 1998
	Teleglobe International (UK) Ltd	January 13, 1997
	Telegroup UK Ltd	December 4, 1997
	TGC UK Ltd.	July 18, 2000
	The Phone Company Ltd	June 30, 1997
	Thus plc	August 16, 1996
	Tiscali UK Ltd	January 13, 1997
	Torc Europe Ltd	May 17, 2000
	Torch Communications Ltd	February 26, 1997
	Totem Communications Ltd	October 5, 1998
	UKBELL plc	December 10, 2001
	Unica Communications Ltd	February 1, 2001
	Unitel Communications Limited	February 1, 1999
	Vartec Telecom (U.K.) Limited	October 21, 1998
	VBCnet (GB) Ltd	August 15, 1999
	Ventelo UK Ltd	April 28, 1995
	Via-Fon Limited	April 23, 1999
	Viatel Global Communications Ltd	April 28, 1995
	Vodafone Ltd	May 10, 1996
	World-Link, Inc	May 4, 2000
	WXC London Limited	June 19, 1997
	Your Communications Ltd	February 28, 1997
	Zipcom Telecommunications Limited	October 10, 2000
	Barnsley Cable Communications Ltd	September 11, 1996
	Birmingham Cable Ltd	October 24, 1996
	Cable Camden Ltd	September 30, 1996
	Cable Enfield Ltd	September 30, 1996
	Cable Hackney & Islington Ltd	September 30, 1996
	Cable Haringey Ltd	September 30, 1996
	Doncaster Cable Communications Ltd	September 11, 1996
	Eurobell (South West) Ltd	June 28, 1996
	Eurobell (Sussex) Ltd	June 28, 1996
	Eurobell West Kent	July 21, 1997
	Halifax Cable Communications Ltd	September 11, 1996
	Imminus Ltd	October 2, 1996
	Middlesex Cable Ltd	September 11, 1996
	Sheffield Cable Communications Ltd	September 11, 1996
	Telewest Communications (Central Lancashire) Ltd	September 26, 1996
	Telewest Communications (Cotswolds) Ltd	September 26, 1996
	Telewest Communications (Cumbernauld) Ltd	September 26, 1996
	Telewest Communications (Dumbarton) Ltd	September 26, 1996
	Telewest Communications (Dundee and Perth) Ltd	September 26, 1996
	Telewest Communications (Dundee and Perth) Ltd	September 26, 1996
	Telewest Communications (Falkirk) Ltd	September 26, 1996
	Telewest Communications (Glenrothes) Ltd	September 26, 1996
	Telewest Communications (Liverpool) Ltd	September 26, 1996
	Telewest Communications (Liverpool) Ltd	September 26, 1996
	Telewest Communications (London South) Ltd	September 26, 1996
	Telewest Communications (London South) Ltd	September 26, 1996
	Telewest Communications (London South) Ltd	September 26, 1996
	Telewest Communications (Midlands) Ltd	September 26, 1996
	Telewest Communications (Motherwell) Ltd	September 26, 1996
	Telewest Communications (North East) Ltd	September 26, 1996
	Telewest Communications (Scotland) Ltd	September 26, 1996
	Telewest Communications (South East) Ltd	September 26, 1996
	Telewest Communications (South Thames Estuary) Ltd	September 26, 1996
	Telewest Communications (South West) Ltd	September 26, 1996
	Telewest Communications (St Helens and Knowsley) Ltd	September 26, 1996
	Telewest Communications (Telford) Ltd	September 26, 1996
	Telewest Communications (Wigan) Ltd	September 26, 1996
	Telewest Communications PLC	January 15, 1998
	Wakefield Cable Communications Ltd	September 11, 1996
	Windsor Television Ltd	September 11, 1996
	Windsor Television Ltd	September 11, 1996
	Yorkshire Cable Communications Ltd	September 11, 1996
	Andover Cablevision Ltd	May 30, 1996
	Anglia Cable Ltd	March 26, 1997
	Cable Television Ltd	August 19, 1996
	Cable Thames Valley Ltd	August 19, 1996
	CableTel Cardiff Ltd	December 13, 1996
	CableTel Central Hertfordshire Ltd	December 13, 1996
	CableTel Hertfordshire Ltd	December 13, 1996
	CableTel Herts and Beds Ltd	December 13, 1996
	CableTel Newport	December 13, 1996
	CableTel North Bedfordshire Ltd	December 13, 1996
	CableTel Northern Ireland Ltd	April 15, 1996
	CableTel Surrey and Hampshire Ltd	December 13, 1996
	CableTel West Glamorgan Ltd	December 13, 1996
	Comtel Coventry Ltd	September 29, 1997
	Diamond Cable (GrimClee) Ltd	July 12, 1996
	Diamond Cable (Leicester) Ltd	July 12, 1996
	Diamond Cable (Lincoln) Ltd	July 12, 1996
	Diamond Cable (Mansfield) Ltd	July 12, 1996
	East Coast Cable Ltd	March 26, 1997
	Heartland Cablevision UK Ltd	August 19, 1996
	Herts Cable Ltd	August 19, 1996
	Lichfield Cable Communications Ltd	March 25, 1997
	National Transcommunications Ltd	December 22, 1997
	NTL Cambridge Ltd	March 26, 1997
	NTL Darlington Ltd	October 30, 1996
	NTL Glasgow	December 13, 1996
	NTL Glasgow	December 13, 1996
	NTL Glasgow	December 13, 1996
	NTL Glasgow	December 13, 1996
	NTL Glasgow	December 13, 1996
	NTL Group Ltd	November 21, 2000
	NTL Kirklees	December 13, 1996
	NTL Midlands Ltd	July 12, 1996
	NTL Teesside Ltd	October 30, 1996
	NTL Telecom Services Ltd	September 10, 1997
	Oxford Cable Ltd	May 8, 1996
	Stafford Communications Ltd	May 8, 1996
	Swindon Cable Ltd	May 26, 1998
	Wessex Cable Ltd	May 30, 1996

Contents

Schedule – Operators in dispute with BT

Explanatory Memorandum

Chapter 1

Summary