1. Wholesale Line Rental Consumer Issues Task Group 5 August 2002

2. Objectives for Today To explain background to Wholesale Line Rental To explain the role of the Task Group To begin drafting comments on Marketing Code of Practice To identify a framework for a Consumer Guide

3. Conclusions of Oftel’s Retail Review BT required to provide Wholesale Line Rental product –cost based –non-discriminatory terms –available to all providers ‘Basic’ WLR from 1 September Enhanced WLR to be developed

4. Basic WLR Similar to access element of Calls and Access Prices: –quarterly rental: £28 (res) £29.87 (bus) –transfer of lines: £1.41 per line –new installations: £92.87 per line Subject to charge control of RPI-2% Prices for ancillary services to be reasonable

5. Enhanced WLR Basic WLR developed for mass-market – seamless interworking with CPS from customer’s perspective –optional IA barring –appropriate forecasting and ordering arrangements –Marketing CoP

6. Enhanced WLR: Implementation 1 Industry groups to develop Product Specification –Oftel to be proactively involved in Groups –Work to take place July- October –Oftel consults October –Finalised November Now stable to allow BT development

7. Enhanced WLR: Implementation 2 BT price controls to be modified from RPI- RPI to RPI+0% on implementation of ‘fit for purpose’ product –Nov 2002 Published Specification –Nov on BT development and testing –Date X BT implements –X + 3 months carries out assessment –X + 4 months Oftel consults on determination (if ‘fit-for-purpose’ product in place)

8. Enhanced WLR: Implementation 3 Shortest timescale for relaxation: date X+ 5 months Next market review 2004 –to consider full competitive impact of WLR (and CPS etc) –recommend on need for ongoing controls and additional competitive measures

9. WLR Implementation: Working Group Structure

10. Oftel Proposed Structure Steering Group Operations Group Adhoc Task Group

11. Group Structure Steering Group –small group of senior level industry reps to consider significant policy / process issues –? 1 Oftel, 1 BT Retail, 1 BT Wholesale, 4OLOs/SPs, 2 Consumer ? Operations Group –main area of specification development –open to all operators/SPs –consumer reps for specific issues –commission task groups

12. Wholesale Line Rental Consumer Protection Issues

13. Product Specification functional description process definition and manual ordering handling and maintenance service level agreement contract terms determination of any enhancements marketing guidelines consumer guide

14. Consumer Issues Marketing Code of Practice –marketing dialogue with customer –‘save’ activities during the transfer Consumer Guide –provide independent information for customers Other consumer protection measures –transfer verification –no debt blocking

15. CITG Work Plan Marketing Code of Practice –try to build on CPS processes Consumer guide –agree audience/ framework –work up drafts OG to establish other consumer measures –‘anti-slamming’ letter –no debt blocking

16. Code of Practice Voluntary Industry code until July 2003 from July 2003 a Code will be recognised by Oftel Comms Act due to give Ofcom powers to fine in the event of a breach