1. Universal Service Obligation Consultation Document Alan Pridmore OPF 7th September 2000

2. Consultation Process Current Level of Service set in 1997 runs until September 2001 Consultation 1999 looked at existing Scheme, funding & scope Research into Unphoned and Low users Nov 1999 - Apr 2000 Consultation 7 Sept to 4 Dec

3. Existing Scheme: Proposals Main elements unchanged LUS and In Contact to remain In-Contact Plus (pre-pay) to roll out nationally Quota on new BT uneconomic payphones remains Further work needed Co-regulatory group on disconnections 100 man-hour rule to be revised

4. Funding USO No change to funding regime proposed BT and Kingston continue to fund New data on costs offered by BT and Kingston 2 tests before a USO Fund could be established: Is there a net cost? Is this cost an unfair burden?

5. Extending the scope of USO No USO for mobiles or ISDN Views invited on new minimum data speed No extension for USO to higher bandwidth services at this time keep under review ongoing research into take-up and demand by region and social class work with other Government Depts