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