Universal service: designation and specific conditions Ritu Manhas Policy Adviser

The regulatory regime is changing... Universal Service Directive and Comms Bill General and specific conditions will together ensure universal service (US) SoS sets out extent of US by means of US Order DG/Ofcom ensures compliance with US Order by means of conditions

DG’s Notification Published 12/03/03 Proposed that BT and Kingston be designated as US providers Set out proposed conditions Invited expressions of interest in being designated/other comments Consultation period closed 2/05/03

Not a review of US... Proposed changes are more procedural than substantive (but some significant differences) Oftel will be recommending that Ofcom conduct a full review in 2004, including funding DTI has now consulted on the extent of US in the UK (US Order) - ended 30/04/03

Designation Notification proposed BT and Kingston should be designated Objective reasons, eg relative size, likely net cost No other party expressed an interest in being designated

Specific conditions Provision of telephony services on request Schemes for consumers with special social needs (low incomes) Provision of call box services Provision of relay service for textphone users (BT only)

Specific conditions (cont.) Tariffs for universal services Itemised billing Maintenance and supply of DQ database and directories (BT only) Quality of service

Consultation period now closed We have had over 20 responses Key issues include: –functional Internet access –public call boxes –tariffs for universal services

Functional Internet access Oftel’s draft guidelines: –28.8 kbit/s seems reasonable (not mandatory) –line-sharing to be used as last resort BT’s response: –no need for guidelines –about 3% of lines won’t support 28.8kbit/s –estimated cost of resolving complaints is £121m

FIA (cont.) Other responses are varied: –on the whole, support for 28.8 kbit/s –some concern whether guidelines are sufficient Oftel believes guidelines are best approach: allow flexibility but will be key in Oftel’s interpretation of whether US provider is in breach of obligation to provide telephony services on request

Public call boxes Consultation raises question of how a ‘site’ should defined Draft condition allows DG to issue a direction Oftel is consulting separately on the detail, dealing mainly with removal process, but also with installation (closes today!)

Tariffs for universal services Draft condition followed wording of Clause 65 of the Comms Bill BT and Kingston believe the Bill goes beyond what Directive intended Amendment to Bill proposed in House of Lords: any change will mean specific condition needs to be changed

Designation and specific conditions: next steps Currently considering responses Amend specific conditions where appropriate Issue Notification and Statement - new regime in place by 25 July 2003 Statement will address issues raised in consultation