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Dispute between Hay Systems Limited and T-Mobile UK Limited about SMS termination via Signalling System 7

06 Tachwedd 2006

Dispute between: Hay Systems Limited (“HSL”) and T-Mobile UK Limited (“T-Mobile”)
Case opened: 7 July 2006
Case Closed: 3 November 2006
Issue: HSL requested that Ofcom resolve a dispute between HSL and T-Mobile over HSL's request for interconnection to T-Mobile's network for SMS termination via Signalling System 7 (“SS7”).
Relevant instrument: Ofcom resolved the dispute under Chapter 3 of Part 2 of the Communications Act 2003

On 3 November 2006 Ofcom issued a Determination under Sections 188 and 190 of the Communications Act 2003 resolving this dispute.

Please see link at bottom of page

Case Leader: Nick Morris  e-mail:nick.morris@ofcom.org.uk
Case reference: CW/00907/06/06

Text published when the case was opened

Dispute between: Hay Systems Limited (“HSL”) and T-Mobile UK Limited (“T-Mobile”)
Case opened: 7 July 2006
Issue: HSL has requested that Ofcom resolve a dispute between HSL and T-Mobile over HSL's request for interconnection to T-Mobile's network for SMS termination via Signalling System 7 (“SS7”).
Relevant instrument: Ofcom intends to resolve the dispute under Chapter 3 of Part 2 of the Communications Act 2003

Update note - 2 October 2006

Ofcom has issued a draft determination in relation to this dispute on 2 October 2006. Please see the related item.

Ofcom will be consulting on its proposals until 5pm on 16 October 2006. Please send responses to:

Nick Morris
Competition Group
Ofcom
Riverside House
2a Southwark Bridge Road
London
SE1 9HA

or by email to Nick.Morris@ofcom.org.uk

End of update note

HSL is an SMS aggregator, whose sole business activity is the provision of short messaging services (SMS). HSL has submitted a request to T-Mobile for direct interconnection to T-Mobile's network for the purposes of terminating SMS originated by HSL's customers. HSL has requested interconnect via SS7, rather than its current indirect interconnection arrangement.

T-Mobile has offered to negotiate a form of interconnect to its network via an internet protocol (“IP”) interface that would connect to T-Mobile's SMS Centres (“SMSCs”), instead of HSL's preferred method of SS7 interconnection, which would connect to HSL's SMSCs. HSL has declined to negotiate on this offer.

HSL believes that T-Mobile is in breach of Condition 1.1 and Condition 2.1 of the General Conditions of Entitlement.

Condition 1.1 requires Communications Providers to negotiate with other Communications Providers, to the extent requested by those Communications Providers, with a view to concluding an agreement for Interconnection within a reasonable period.

Condition 2.1 states that “The Communications Provider shall comply with any relevant compulsory standards and/or specifications as are listed in the Official Journal of the European Communities for the provision of services, technical interfaces and/or network functions pursuant to Article 17 of the Framework Directive. Where no compulsory standards or specifications have been so published, the Communications Provider shall take full account of any relevant voluntary standards and/or specifications adopted by the European Standards Organisations.”

Ofcom recognises that on the face of the referral, there appears to be a dispute between the parties that commercial negotiations have failed to resolve. Ofcom considers that the dispute relates to an interpretation of General Condition 2.1.

Scope of the dispute:
The scope of the dispute is to determine whether T-Mobile is required, under General Condition 2.1 of the General Conditions of Entitlement, to offer network access to HSL using SS7-based interconnection for the purpose of SMS termination.

Procedural matters:
Guidance on the resolution of the dispute can be found in Ofcom's Guidelines for the handling of competition complaints, and complaints and disputes about breaches of conditions imposed under the EU Directives.

All representations on the scope of the dispute should be submitted to Ofcom by 17 July 2006.

Stakeholders interested in the outcome of this dispute should notify Ofcom by 31 July 2006 , describing the relevance of the outcome of the dispute to their business. Stakeholders with relevant information and evidence in respect of this dispute should submit this to Ofcom by 31 July 2006. Stakeholders who wish Ofcom to join them as parties to the dispute must provide evidence, as set out in Ofcom's Guidelines, that they are in dispute with T-Mobile.

Case Leader: Nick Morris  e-mail: nick.morris@ofcom.org.uk
Case reference: CW/00907/06/06