Implementing the new Directives

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Implementing the new Directives

• 12 March 2002
• Policy Focus Group

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Agenda

• Introduction - Jim Niblett
• Overview - Heather Clayton
• Implementation
• Transposition - John Arnott
• Oftels work - Heather Clayton
• Market reviews - Elaine Axby
• Discussion / QAs

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The new EU Directives
Framework
Universal service
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
Access and interconnection
Authorisation
Not forgetting...
Data protection
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The new EU Directives
Spring 2002
Early 2003
Directives transposed into national law
Consultation on transposing the new Directives
Entry into force
Early summer 2003
Early 2002
Consultation on the new general conditions
Oftel carries out market reviews, prepares SMP
designations and specific obligations ready for
the big bang day
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Implementation activities
Transposition (DTI)
Mapping the old regime to the new regime
Preparing the new general conditions
Adjusting Oftels processes
Training and communications
Market reviews
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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.

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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.

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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.

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

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Adjusting Oftels 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
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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

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Training and communications

• Internal

Team briefs - raise awareness January
Structured workshops March Operations
board Implementation project managers
Lunchtime seminars April/May/June
Overview Market reviews General
conditions Dispute resolution etc etc
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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

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EU Market Review Programme

• Elaine Axby
• 12th March 2002

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Agenda

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

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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

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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

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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

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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

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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

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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