Implementing the new Directives 12 March 2002 Policy Focus Group

Agenda Introduction - Jim Niblett Overview - Heather Clayton Implementation –Transposition - John Arnott –Oftel’s work - Heather Clayton –Market reviews - Elaine Axby Discussion / Q&As

The new EU Directives Adopted by Council on 14th February 2002 Signed by Council and EP end February 2002 Published in Official Journal in March [?] 2002 Implementation in MS June 2003 Framework Access and interconnection Universal service Authorisation Data protection Not forgetting...

Entry into force Early 2002 Oftel carries out market reviews, prepares SMP designations and specific obligations ready for the “big bang” day Early summer 2003 Directives transposed into national law Consultation on the new general conditions Consultation on transposing the new Directives Spring 2002Early 2003 The new EU Directives

Implementation activities Transposition (DTI) Preparing the new general conditions Mapping the old regime to the new regime Adjusting Oftel’s processes Market reviews Training and communications

Transposition Main package of Directives (Framework, Authorisation, Access and Universal Service) will be implemented by the Communications Bill. Likely to be an interim implementation because of timing. Data Protection expected to be implemented by modifying existing UK legislation, probably by SIs under ECA.

Implementing the main package Communications Bill will implement mandatory aspects of the Directives. Will not contain more detail than needed to implement mandatory aspects and give OFCOM powers where Directives allow discretion. So far as detailed rules are necessary, will be the responsibility of OFCOM, not set out in the Bill. Oftel are working on drafts for consultation on most aspects of detailed rules. RA will consult as necessary on any changes required to their procedures.

Key features of the new regime No individual licences. Networks and services can be provided subject only to notification and compliance with the relevant rules. SMP obligations (price caps, etc.) can only be imposed where markets not effectively competitive – otherwise must be removed. Full appeal on the merits. Commission can veto proposals by NRA which are inconsistent with single market.

Mapping the old regime to the new regime Licence conditions USO Consents, orders, determinations General conditions Specific SMP conditions Interconnection obligations 5(1) Carry over USO

General conditions Oftel project: E2 General conditions of entitlement  Draft an initial set of general conditions (Q1)  Hold discussions with DTI and other interested stakeholders (Q2-Q3)  Prepare a final draft set of conditions for consultation  in conjunction with either the Communications Bill or SIs (Q2- Q4)

Adjusting Oftel’s processes Dispute resolution Access and interconnection Accounting separation Harmonisation and consultation with other NRAs and the Commission “Annex II” operators Publishing information EU Market reviews See the hand out

Harmonisation ERG –draft decision April 2002 –up and running May 2002 Oftel is planning its input: –defining what Oftel should try to achieve –issuing guidance for project managers

Training and communications Internal Team briefs - raise awarenessJanuary Structured workshops March Operations board Implementation project managers Lunchtime seminarsApril/May/June Overview Market reviews General conditions Dispute resolution etc etc

Stakeholder input Public consultations –Communications Bill/SI –General Conditions –Guidelines –Market reviews PFG –Propose to keep the PFG running as an opportunity for stakeholders to input Regular updates at the Oftel forum Individual Oftel projects –will hold stakeholder meetings as required

EU Market Review Programme Elaine Axby 12th March 2002

Agenda requirements of the new regime progress to date key issues next steps

Requirements of the new regime review current SMP designations, licence conditions, obligations define appropriate markets decide whether SMP exists specify appropriate obligations take “utmost account” of EU guidelines

Progress to date existing review debriefs listing existing obligations, licence conditions internal review of Oftel has defined markets mapping of EU SMP criteria to existing effective competition review guidelines EU finalising SMP guidelines and recommended list of markets

Feedback from reviews to date appreciation of a framework and criteria for measuring effective competition could be more clarity on weighting, changes in emphasis as reviews progress differences in approach between different reviews could be better understood workload in terms of data requirements and resource

Key issues change in definition of SMP –link between SMP and effective competition clearer –competition law approach –importance of consumer indicators how markets are defined –reconcile EU list with Oftel defined markets and existing obligations timing

Next steps EU publishes final SMP guidelines and draft list of recommended markets on coming into force of Directives –EU consultation on the list of markets Oftel response to EU consultation –firm up our own proposals further stakeholder workshop

Conclusion EU market review programme an evolution from current Oftel practice commitment to stakeholder consultation for each individual review as now –but may be some shorter timescales clearly a heavy workload for all