Universal service: designation and specific conditions

1. Universal service: designation and specific conditions Ritu Manhas Policy Adviser

2. 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

3. 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

4. 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

5. 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

6. 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)

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

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

9. 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

10. 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

11. 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!)

12. 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

13. 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