http://www.ofcom.org.uk/telecoms/groups/nts_focus/notes/nts_260608

NTS Focus Group - 26th June 2008 - 2.00 pm Ofcom

Agenda item (1) - Introductions

Attendance:
Mike Barford Tiscali
Geoff Brighton Ofcom
Rob Day BT
Catherine Gerosa Invomo
Will Goodall  Flextel
Sean Hartley BT
Justin Hornby C&W (Chair)
John Lockyer Teamphone
Andy Martin  IV Response


By telephone
Andrew Monk CPW
Frank Foley J2Global
Colin Scott Thus


Apologies:
Laurent Pariat C&W
Clive Hillier  Ofcom
Andrew Wileman Virginmedia


Agenda (2): Update / progress report on the current 'live' NTS related consultations / investigations: (Ofcom/All)

Review of Regulation of Premium Rate Services
Ofcom hoped to publish this in June, but the timing was delayed due to resource issues. They hope to now publish the document in July. If this is not possible the August embargo is likely to mean further delay until after the holiday period.

NCCN 500 investigation / NTS call termination market review
Ofcom is in the process of formulating the decision, but a clear date for when this will be published is not yet possible. The continued delay is caused by the tricky nature of the issues in the case.

General Condition 14 Enforcement Programme

The recommendations from this enforcement programme are currently undergoing internal review. This will include whether any action needs to be taken under Section 91 of the Communications Act.

Catherine Gerosa highlighted the unhelpful nature of some of the guidance available to operators: Otelo on their website refer enquiries to Ofcom whilst Ofcom recommends that companies seek legal advice.

Andy Martin raised the issue of recent mobile price increases following the decision by some operators to remove certain NTS number ranges from inclusive minutes. Geoff Brighton said Ofcom decried the increase, but pointed out that the mobile arena was a competitive market.

Agenda Item (3 & 4): 0870 & 0871 Consultations

Geoff apologised for the delay in publishing all of the responses on the Ofcom website which had been caused by an internal Ofcom problem. The 0870 proposals were due to go are due to go before an internal Ofcom approval board on 8th July. The hope is to publish in July, failing that it is likely not to be until September.

Discussion moved to the implications of the CAT decision and whether the fact that one of the mobiles was appealing the decision would have any impact. Geoff acknowledged that this was unclear and that a new methodology may need to be considered for resolving the dispute.

Will Goodall questioned the consumer benefit of Ofcom’s preferred Option B. Geoff responded that GC14 to date had not been enforced and that Ofcom’s legal advice was that they could not take measures to implement price controls until transparency enforcement had been undertaken. If this process was not followed any attempt to introduce a price control would fail. Will challenged this view on the basis of changes made on May 26th to the Consumer Protection Act which gives Ofcom and the OFT greater powers to demand transparency. In addition the Unfair Commercial Practices Directive (UCPD) Will believed would allow Ofcom to manipulate the market to ensure the prices charged reflected those that were advertised. Geoff doubted this was possible as Ofcom have duties as a regulator to promote competition.

Will requested to see evidence that it was not feasible to introduce price labelling. He pointed to BT’s 7 Jan 2005 submission to NTS Options for the Future, and requested to see the redacted annex. Geoff agreed to consider the request.

June08_01 Ofcom to consider whether redacted information can be made available.

Andrew Monk asked how much longer Ofcom were going to wait before implementing their 0870 policy. Geoff indicated that Ofcom’s lawyers were of the opinion that the policy could go ahead, but in practical terms this was dependent on rates having been set.

Will called for a review of TWIX ahead of the 0870 implementation. Geoff rejected this on the grounds that the Network Charge Controls were up for review in the near future and that it was unlikely that a market review would take place ahead of this. The current Network Charge Controls remain in place until October 2009.

Catherine Gerosa asked if the 0871 changes were still intended to be implemented in parallel with 0870. Geoff responded that this was the current intention.

Andrew Monk raised concerns about arbitrage activity on 0872 numbers.

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