Oftel Proposes Regulatory Changes To The UK Telecoms Market

by Robin Pilgrim, LawAndTax-News.com, London

20 March 2003

UK telecoms watchdog, Oftel this week outlined new proposals designed to replace existing regulation with new measures under the recent EC directives on electronic communications, and increase the emphasis on competition in the UK market.

Among the changes proposed by Oftel were:

- Plans to reduce regulation covering the unmetered internet termination market due to the level of competition created by FRIACO (flat rate internet access call origination);

- Plans to reduce regulation on a number of international call routes to reflect the growth in competition in the UK;

- Plans to reduce regulation covering services for business customers in order to allow BT to offer more bundled services and discounts (although BT will be obliged to offer wholseale versions of retail bundled services offered to businesses);

- Plans to maintain regulation to allow other operators to compete in the retail calls market through carrier pre-selection, indirect access, and a new wholesale line rental project;

- The introduction of new regulations requiring BT to provide a wholesale ISDN service for other operators wanting to compete in the business market.

Speaking on Monday, OFTEL's director general of telecommunications, Dave Edmonds explained that:

'Oftel is carrying out reviews across the telecoms market, and where competition is increasing, unnecessary regulation will be withdrawn. But where competition has not yet taken off, Oftel will put in place firm regulation to support competition and protect consumers.'

He went on to add that the UK watchdog's approach is in line with new EU directives on the subject passed in April 2002 and due for implementation by EU member states in July 2003.

'The new EU directives bring a consistent approach to regulation across Europe, emphasising the need to promote competition and roll back unnecessary regulation,' he observed.

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