1. 1 OFTEL’s 2000/01 review of the dial-up Internet access market Oftel Internet Forum 29 September 2000 dave.simpson@oftel.gov.uk kenny.osborne@oftel.gov.uk

2. 2 OFTEL objectives “obtaining the best deal for telecoms consumers in terms of quality, choice and value for money” OFTEL strategy statement - Jan 2000 “Drive forward competition in Internet access markets” ecommerce@its,best.uk - Sept 1999, UK Online - Sept 2000

3. 3 Objectives Dial-up Internet access market review Assess if there is effective competition in dial-up Internet access in the UK Ascertain whether the current mix of regulation is working Identify and initiate necessary regulatory action only where appropriate

4. 4 Scope What’s the plan? Dial-up access to the Internet Residential and business Not broadband

5. 5 Timetable

6. 6 Measuring effective competition Internet call origination Internet call termination Internet services provision

7. 7 3 Sub-markets consumerISP call originator call terminator call originationcall termination

8. 8 OFTEL sources Quarterly market information from telecoms operators Market research programme International benchmarking study

9. 9 Improving existing estimates Meet with operators to improve quality of market information Use market research to ask specific questions ISPA/Oftel Internet Forum e-envoy/ONS work on e-commerce measures

10. 10 Call origination - Oftel market data and research BT has by far largest market share but smaller than for voice Approximately 30% of Internet households dial-up using somebody other than BT 7% of Internet households have BT has main supplier but use alternative supplier to access Internet

11. 11 Call termination - Oftel Market data Some data from Market Information - Energis, ntl, Worldcom, Colt, Thus all reporting large volumes BT’s own estimates around 20% Can use ISP subscriber data to reconcile estimates e.g. Freeserve/Energis

12. 12 ISP market share: Oftel estimates Source: Oftel Residential Consumer Survey, August 2000

13. 13 Unmetered access effects coming through Source: OFTEL, Residential Consumer Survey, May 2000

14. 14 UK prices compare well internationally Source: OFTEL, International Benchmarking, Feb 2000

15. 15 And improving for peak as well

16. 16 Policy initiatives Flat Rate Internet Access Call Origination (FRIACO) Price Control Review Universal Service Obligation (USO) Calls and Access Number Translation Service (NTS)

17. 17 Other inputs Compliance casework Consumer complaints to OFTEL Discussions with consumer groups External research

18. 18 Timetable lucy.rhodes@oftel.gov.uk

19. 19 ??? Are we looking at the right thing? Are there any other sources of information we should be considering? Are there any consumer protection issues we should consider?