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

2. Overview of regulations Universal Service Directive 2002/22/EC Communications Bill Universal Service Order (Secretary of State) general and specific conditions (to be set by Ofcom)

3. US conditions general - apply to groups of communications providers, eg those providing publicly available telephone services (PATS) specific - can only be imposed on designated providers

4. General conditions Oftel consulted upon these in May 2002 US conditions include: –emergency call numbers –operator assistance –directories and directory enquiries –public pay telephones –special measures for end-users with disabilities other end-user interest conditions required by US Directive, eg non- payment of bills

5. Specific conditions designated providers only US Directive (and Comms Bill): efficient, objective, non-discriminatory, transparent process Ofcom will need to create such a process in due course but in the meantime...

6. Paving SI ensures continuity in provision of US allows DG to propose who should be designated DG must –consult –set out reasons for his proposals –allow other parties to express interest in being designated Oftel’s con doc on draft designation and specific conditions

7. Oftel’s forthcoming con doc will discuss: which communications providers should be designated for the purposes of US the specific conditions the DG proposes to impose functional Internet access funding of the text relay service currently provided by BT

8. Designation DG likely to base designation on factors such as: –number of served premises –relative size of business –relative capability to comply with any or all of the specific US conditions –likely net cost of complying –financial stability DG intends to propose that BT and Kingston are designated

9. The specific conditions requirement to provide telephony services on request –at data rates sufficient to permit functional internet access –single narrowband connection schemes for consumers with special social needs provision of call box services control of expenditure

10. The specific conditions (continued) itemised billing quality of service And for BT: provision of relay service for textphone users supply of directories and databases for provision of directory services

11. Functional Internet Access not defined in terms of speed by US Directive we don’t propose mandating a minimum speed either BUT con doc will include draft guidelines we are very keen to have feedback!

12. Timing dependent on Paving SI (and, to a lesser extent, DTI’s consultation on the Secretary’s of State’s US Order) we are aiming to publish by end of January 2003 ideally, a 3 month consultation period