Home > Telecoms > Industry Groups > NTS Focus Group > Notes of meetings > NTS Focus Group

28|02|07

NTS Focus Group - 11th January 2007 - 2.00 pm Ofcom

Agenda item (1) - Introductions

Attendance:

Andrew Wileman	Ntl:Telewest (Chair)
Marcus Rudkin	Band-X
Rob Day	BT
Sean Hartley	BT
Justin Hornby	Cable & Wireless
Laurent Pariat	Cable & Wireless
Andrew Monk	Carphone Warehouse
Toby Higho	Easynet
Will Goodall	Flextel
David Happy	Flextel
Tom Cairns	Gamma
Simon Kelly	Gamma
Andy Martin	IV Response
Lesa Green	Kingston Communications
Geoff Brighton	Ofcom
Gareth Davies	Ofcom
Clive Hillier	Ofcom
Colin Scott	Thus
Michael Barford	Tiscali
Ann e McCardle	Verizon Business

Agenda Item (2): Review of minutes of previous meeting

No comments/concerns were raised. It was therefore agreed that the minutes could be published on the Ofcom website.

Agenda (3): Update/progress report on the current 'live' NTS related consultations/investigations: (Ofcom/All)

Sexual Entertainment Services consultation

Geoff Brighton advised that Ofcom intended to publish a Statement by the end of February 2007. Geoff added that six responses to the consultation had been received and had been posted on the Ofcom website in the usual way.

Review of Regulation of Premium Rate Services

Clive Hillier advised that the terms of reference for the PRS review had been published on the Ofcom website. The URL for the TOR had been communicated via the usual Ofcom channels, but Clive agreed to confirm it for members of the NTSFG. (Post meeting note: URL confirmed as: www.ofcom.org.uk/telecoms/ioi/nwbnd/prsindex/tor/

NCCN 500 investigation/NTS call termination market review

Gareth Davies apologised for the continued delay and added that Ofcom was intending to distribute a draft decision to the parties involved in the dispute by the end of February 2007. Colin Scott said that a number of CPs additional to the parties to the dispute would be interested in the outcome, and sought clarity around any confidentially obligations applying to the initial release of the draft decision. Gareth said that in initially publishing only to the parties to the dispute, Ofcom was simply respecting the confidence of those parties. He agreed to check whether the draft document could be shared with others at that stage.

Andrew Wileman asked what the duration between publication to the specific parties and public availability would be. Gareth said that this would typically be a few weeks – the specific parties would be given a reasonable time to comment on the draft decision before it was made public/published in its final form

The call termination market review remains on hold, pending the outcome of the NCCN 500 investigation.

ICSTIS progress re. Governance of 0871

Clive Hillier confirmed that the ICSTIS consultation document was due to be published in the spring of 2007, once ICSTIS had taken into account input to its pre-consultation activity.

General Condition 14 Enforcement Programme

Clive Hillier advised that the Ofcom investigation was continuing. The outcome/form of any conclusion will depend on Ofcom’s findings (it could for example be a statement, an enforcement notice etc…). Several attendees sought clarity around the scope of the investigation – in particular the question of whether Ofcom was considering just those CPs suspected of non-compliance, or if a general evaluation of all CPs was taking place. Clive explained that Ofcom had sought information from a selection of the larger fixed and all the mobile OCPs but not because any had been identified as potential offenders.

BT POLO Dispute ( 1 st October 2006 OCCNs)

Attendees were advised that BT’s dispute referral had been rejected by Ofcom. As such no formal regulatory dispute currently existed. BT had, however, submitted further information to Ofcom, which Ofcom was in the process of considering.

Agenda (4): Update on arrangements for call termination payments under new 0870 regime

Andrew Wileman provided an overview of the workshop that had taken place on 11 th January. To date, 5 proposals had been tabled (from Thus, BT, Flextel, Band-X and C&W). The proposals essentially fell in to two categories: those that challenged the reforms to 0870 and those that took the approach of working within he bounds of the reforms. Workshop attendees agreed that the former were outside of the scope of the working group at this point in time, but recognised that the issues could be pursued via separate channels or as a separate initiative. The group therefore worked on the assumption that the reforms will prevail.

Several attendees described their proposals in more detail. Rob Day provided some additional clarity on the BT suggestion. He said that BT was not proposing to meet the cost of circuits or any I.N. dip charges for CP-terminating traffic. The conveyance charging arrangements for BT-terminating 0870 traffic were not clear at this point in time.

Andrew reported that a number of members of the working group had raised some concerns with the NTS reference model used by Ofcom to reach its conclusions in the 0870 consultation. In particular, it was felt that the model was too simplistic and did not take account of the additional onward routing arrangements that many smaller CPs utilised. The group therefore agreed to put two key questions to Ofcom at the NTS focus group, as follows:

Who does Ofcom consider the parties to an NTS call to be?

To what extent has Ofcom taken into account the additional costs of doing business of certain NTS terminators (e.g. number translation, onward routing, I.N. dips etc.)?

Gareth Davies said that Ofom was fully aware of the routing arrangements that can take place and of the costs associated with them. He said that the model included within the consultation document was a simplified representation of the various scenarios that can occur and he believed that Ofcom had taken these into account in reaching its conclusion. David Happy said that this issue goes to the core of the matter.

Focus group attendees agreed that any CPs with remaining concerns in this area should address them bilaterally with Ofcom.

Returning to the summary of the 0870 charging workshop, Andrew Wileman said that working on the assumption that the reforms would prevail, the group had reached a consensus on a basic model, although there were a number of points of contention with the finer detail. The model would largely preserve existing contractual arrangements and would result in TCPs receiving a geographic Single Tandem outpayment from BT (although some CPs expressed reservations with this – as detailed below). The outpayment would be uplifted by the local to tandem conveyance factor where calls were delivered by BT at the DLE layer. Andrew said that these basic elements of the model had been agreed, however the remaining areas of diverging opinion were essentially historical differences between originating and terminating operators and were unlikely to be resolved without regulatory intervention. The points of contention are as follows:

Responsibility for payment of transit charges
Contribution towards and responsibility for payment of IN dip costs
Responsibility for payment of circuit charges
Distance element (concern among some CPs that by not incorporating a distance element above Single Tandem, the BT proposal potentially breached BT’s SMP condition/was potentially discriminatory against CPs that had invested in deeper BT interconnection).

It was widely believed that the same issues would arise when discussing arrangements for the 03 number range.

Workshop attendees had agreed that a regulatory dispute was not preferable, however many anticipated that this would occur, as CPs would likely reject the BT OCCNs once issued. In the interests of trying to avoid a dispute, attendees proposed that Ofcom be asked to offer a view and guidance on the four areas of contention prior to BT OCCNs being issued. Ofcom agreed to consider the points and respond back to the group.

New Action Jan07_01: Ofcom to consider the 4 key points of contention culminating from the 0870 charging workshop with a view to offering advice or guidance that could obviate the need for a dispute.

Agenda Item (5) – Implementation of the 03 Range (Ofcom/All)

Attendees sought clarity around the timescale for implementation. Clive Hillier said that Ofcom intended to publish a statement during the first week of February (including a Statutory Consult ation on General Condition 17, which would have a duration of 1 month). Guidance and information on the number application process would be published around the same time. Clive added that CPs could begin to apply for 03 numbers as soon as the Statement was published.

Several attendees said that there were a number of specific issues that they believed the number application/allocation guidance should address. Clive said that any such requests should be fed through the chair and would be taken into consideration by Ofcom.

New Action Jan07_02: Any requirements for specific issues to be addressed in the 03 application/allocation guidance to be communicated to Ofcom through the chair.

Andy Martin said that he believed the February 2008 date for implementation of the 0870 reforms was now totally inappropriate given the delays to the implementation of the 03 range and the ongoing uncertainty around regulation of 0871. Andy said that the 18 month lead time for the implementation of the 0870 reforms – triggered by the publication of the Statement relating to the 03 range - had assumed that the 03 range would be operational by now. He added that consumers would suffer if the originally anticipated timetable was to prevail and asked for an extension beyond February 2008. A number of attendees agreed with Andy’s position. Andy asked if Ofcom would consider such a request. Gareth Davies suggested that Andy document his concerns and pass them to Ofcom for consideration.

Andy added that he believed any delay to the implementation of the 0870 reforms should be accompanied by a reduction in retail rates.

New Action Jan07_03: Andy Martin to document his concerns with the 0870 implementation timetable and send to Ofcom for consideration. Document also to be passed to the chair for distribution to NTSFG attendees.

New Action Jan07_04: Ofcom to consider the request for an extension to the 0870 implementation timetable.

Will Goodall asked if any attendees would object to a delay. Rob Day said that BT was working towards the February 2008 implementation deadline and did not support a delay. It was suggested that CPs consider Andy Martin ’s submission and indicate their support or otherwise to the chair.

New Action Jan07_05: Attendees to consider Andy Martin ’s request for an extension to the implementation timetable for the 0870 reforms and indicate their support or otherwise to the chair. Chair to then forward a summary to Ofcom.

Andy Martin expressed concern at the lack of attendance of the NTSFG by mobile CPs. Geoff Brighton suggested that the chair of the Mobile Broadband Group be contacted with a view to establishing representation from the mobile community.

New Action Jan07_06: Andrew Wileman to contact the chair of the Mobile Broadband Group with a view to seeking representation from the mobile community at the NTSFG.

Agenda item (6) - Amended Retail Uplift and PRS Bad Debt Surcharge Effective 1 st April 2007

Rob Day said that BT had identified an issue with ACCN 762 ( PRS Bad Debt Surcharge) and as such would be withdrawing it in the near future (Post meeting note: The ACCN was withdrawn on 18 th January 2007). Rob said that despite the fact that the ACCN was to be withdrawn, bad debt had increased. Colin Scott asked if a replacement ACCN incorporating a new bad debt figure would be issued. Rob said that he was not currently able to confirm this.

Agenda item (6) – Review of remaining outstanding actions

Action Aug06_09 : Porting differential issue to be added to the agenda of the first NTSFG meeting of 2007. Ongoing – Andrew Wileman said that the issue had not been added to the January agenda due to the breadth of topics already included and the potential linkage with the NCCN 500 investigation. The issue would remain on the outstanding actions list and would be included as an agenda item at a future date.

Action Aug06_10 : Andrew Wileman to confirm the position of the NTSFG in respect of SNEN discussions to the chair of the Telecom Advisory Group. Ongoing – Position to be confirmed. Attendees were informed that subsequent roll-out of the SNEN had been delayed.

Action Nov06_01 : Andrew Wileman to arrange a further 0870 charging workshop. Discharged – Further workshop took place on 11 th January.

Action Nov06_02 : BT to issue an updated proposal on 0870 charging. Discharged – Updated proposal was distributed on 5 th December 2006 .

Action Nov06_03 : Ofcom to confirm if the use of 0871 as a presentation number will be prohibited once covered by ICSTIS’ jurisdiction. Ongoing.

Agenda item (7) – Any Other Business

Lesa Green asked if BT would be changing the classification of 0871 once it was included within ICSTIS’ jurisdiction (for example, would BT apply PRS call barring treatment to it?). Rob Day agreed to confirm.

New Action Jan07_07: Rob Day to confirm any new treatment of 0871 in respect of BT barring levels.

Date of Next Meeting:

Thursday 22nd February 2007– 2 :15pm Ofcom – Riverside House, London

Please note new date for the March 07 NTSFG meeting:

Wednesday 28 th March, 2:00 @ Ofcom. (Was Thursday 29 th March).

Summary of New and Outstanding Actions:

Aug06_09	Porting differential issue to be added to the agenda of the first NTSFG meeting of 2007
Aug06_10	Andrew Wileman to confirm the position of the NTSFG in respect of SNEN discussions to the chair of the Telecom Advisory Group
Nov06_03	Ofcom to confirm if the use of 0871 as a presentation number will be prohibited once covered by ICSTIS’ jurisdiction
Jan07_01	Ofcom to consider the 4 points of contention culminating from the 0870 charging workshop with a view to offering advice or guidance that could obviate the need for a dispute
Jan07_02	Any requirements for specific issues to be addressed in the 03 application/allocation guidance to be communicated to Ofcom through the chair
Jan07_03	Andy Martin to document his concerns with the 0870 implementation timetable and send to Ofcom for consideration. Document also to be passed to the chair for distribution to NTSFG attendees
Jan07_04	Ofcom to consider the request for an extension to the 0870 implementation timetable
Jan07_05	Attendees to consider Andy Martin ’s request for an extension to the implementation timetable for the 0870 reforms and indicate their support or otherwise to the chair. Chair to then forward a summary to Ofcom
Jan07_06	Andrew Wileman to contact the chair of the Mobile Broadband Group with a view to seeking representation from the mobile community at the NTSFG
Jan07_07	Rob Day to confirm any new treatment of 0871 in respect of BT barring levels