http://www.ofcom.org.uk/telecoms/groups/nts_focus/notes/nts_101209

NTS Focus Group – 10th December 2009 – 2.00 pm Ofcom

Agenda item (1) - Introductions

Attendance:
Justin Hornby      C&W
Geoff Brighton      Ofcom
Sean Hartley      BT
Catherine Gerosa      Invomo
Peter Farmer      Gamma
Kath Embleton      BT
Clive Hillier      Ofcom
Jeff Loan      Ofcom
Will Goodall      Flextel
Andy Martin      IV Response
Stephen Ornadel      T-Mobile
Laurent Pariat      C&W
Sandra Reid      VirginMedia

By telephone:
Lesa Green      Kcom
Warren Berdo      SkyCom

Agenda (1): Review of Actions.

Justin Hornby opened the meeting and confirming that no actions were outstanding following the last meeting.
Agenda (2): Update / progress report on the current 'live' NTS related consultations / investigations: (Ofcom/All)

    * PRS Scope Review

Geoff loan attended the meeting to provide the Focus Group with an update relating to the PRS Scope Review which was published six weeks ago. Ofcom is now concentrating on the service elements to PRS and a further consultation is expected mid-2010. This will seek to either withdraw regulation or justify where continuing regulation is required.

The issue of Retail Price Caps and Pre-Call Announcements are to be considered as part of the NTS Review which will also explore options for ensuring price transparency.

PhonepayPlus as a result of the Scope Review will be introducing a registration scheme enforced through the 12th Code of Practice. Registration will be seen as a condition for operating in the market. The database may also be used to aid Network Operators Due Diligence requirements.

Geoff reported that Ofcom is also considering whether call barring for short codes is to be mandated. This is likely to depend upon the costs associated with implementation.

Will Goodall asked whether Ofcom were to look at the 070 number range and also call price labelling. There was some disagreement as to the relevance of ITU guidance and Will also raised the Health and Safety risks posed by Pre Call Announcements, citing the use of 09 by a well known alarm firm. Many of the issues had previously been addressed in relation to the 070 range.

Will reiterated his support for call price labelling and urged the Focus Group to look at www.flextel.com/ofcom. This would offer consumers the choice as to whether they listened to a pricing announcement when making a call. Debate then moved on to the cost of such a solution.

Andy Martin queried whether the PRS Condition could be removed from on-portal services, commenting that so-called red button services were not currently regulated.

Jeff concluded that the Scope Review document was expected towards the middle of 2010, with the NTS review likely to take longer, with an initial consultation in early 2010. PhonepayPlus is also expected to consult on the 12th Code in March with the two being run in parallel to ensure a harmonized approach. The NTS Review will be run by Markham Sivak.

Action- Dec_09/01: Geoff to invite Markham to the next Focus Group

    *   PRS Bad Debt Surcharge:

Geoff Brighton confirmed the independent consultants looking into the PRS Bad Debt Surcharge (BDO) were currently at BT. They were hoping to report back before Christmas, although that was now looking to be unlikely due to delays clearing information within BT. This is now expected sometime between mid and late January with a consultation following sometime in February.

It is expected that this will be a joint document with a statement regarding the Retail Uplift and possible a further consultation in respect to the PRS Bad Debt.

Geoff noted that Ofcom was aware of the recent BT pricing change which seeks to implement the 9.7% PRS Bad Debt Surcharge.
Agenda Item (3) NCCN908, 958, 985 and 986 0800, 0845 and 0870 transit charging (All)

Will Goodall raised concerns that the NCCNs reflected problems with market competitiveness. Flextel supported BTs position regarding the introduction of wholesale ladder pricing based on the level of retail prices and cited the key issue as being the high retail prices charged by mobile operators.

Ofcom invited any complaint or dispute to be submitted at which point they be obliged to investigate further.

Will also raised competition concerns regarding the fact that BT had not made the facility available for other operators to also introduce a similar pricing mechanism. Geoff indicated that this was being looked at as part of the dispute investigation and Warren raised the current IVResponse SOR which could be fed referenced to feed operators requirements to BT. Kath reiterated that BT was willing to work with anyone who approached them.

Discussion continued on the competition implications of BT introducing a wholesale billing change for its own downstream business before making this available to other operators.

Will concluded that the key to driving consumer costs down was through pricing transparency.

...