Tiscali 2008 Annual Report Download - page 27

Broadband and voice
•OFCOM launched the Openreach Pricing Review (a review
of the Openreach prices) so as to assess the maximum
spending limits existing with reference to cost and efficiency
factors. The consultations were published in May and
December and the proposals concerned the potential
alignment between expenditure, costs and expected returns
over a period of control of the four-yearly costs, as well as
the correction of an imbalance between WLR and MPF (LLU).
OFCOM intends to implement the proposals by April 2009.
•A code of voluntary practice for the communication of data
on broadband speeds was launched in June and signed
by the leading ISPs in December. The code also includes
the norms which discipline the methods by means of which
the ISPs guarantee that the consumers understand which
speeds can be expected from the broadband. OFCOM also
continued research activities into the effective download
performances with the aim of publishing the figures
acquired in Spring 2009.
•The legislative declaration on the review of the wholesale
broadband access market was published in May, deregulating
the wholesale broadband in the LLU areas and eliminating
the existing legislative provisions concerning Bitstream access.
•During the year, the Government launched consultations
on the subject of illegal downloading, arranging for ISPs
and representatives of the contents sector to take part. The
search for implementable solutions remains difficult,
essentially because of the underlying disagreement regarding
the party to whom responsibility for the action and application
of the norms should be assigned and on the parties to whom
the costs should be allocated. Following a number of
changes within the Government, the matter is currently the
responsibility of the Digital Britain review project.
Consumer protection
•OFCOM launched a series of consultations on the additional
costs imposed by the communication providers (CPs) on
consumers in February and published a series of guidelines
in December. The matters dealt with were, among other things,
costs for early termination and costs for billing and payment
changes. The guidelines are compatible with the rights of the
consumers and provide useful recommendations to the CPs
on how to calculate the costs, avoiding unequal treatment.
•OFCOM announced consultations on possible new norms
regarding the settlement of disputes and the handling of
complaints in July. Work continued in 2009.
•The OFCOM application programme on the migration of
consumers continued throughout the year.
•OFCOM renewed efforts directed at avoiding undue sales of
products and services to consumers during the year and
applied pertinent conditions and obligations. The norms
should be reviewed and finalized at the start of 2009, together
with the continuation of the consultations on general policies
concerning migration.
New generation access
•OFCOM launched a series of consultations on the norms
relating to the installation of the fibre in new structures in
April and published a declaration in September, clarifying
the methods for applying the existing regulations and the
obligations of the network owners concerned.
•OFCOM published the second consultation document on
new generation access in September with the aim of
publishing a declaration at the beginning of 2009. OFCOM
intends to encourage development without neglecting
the envisaged obligations, awaiting effective legislative
changes after the market reviews and the data on
significant market powers.
Television
•In September, OFCOM published the consultations on the
pay TV market and on pay TV on the digital land-based
platform. The next phase is envisaged in May 2009, and
should take on the form of a legislative declaration or a
further consultation.
•OFCOM has proposed that Sky be obliged to wholesale the
premium channels dedicated to films and sport to other
market players due to the significant market power held
and so as to benefit consumers on the UK market.
•During the year, the Office of Fair Trading and the
Competition Commission examined the project presented
by the BBC, Channel 4 and ITV to group together their
contents in a sole video on demand proposal (“Kangaroo”
project). The project was rejected by the Commission for
competitive reasons in February 2009.
Other
•In 2008, OFCOM carried out the Business Connectivity Market
Review (review of the market providing connectivity services
to businesses) which in December led to a declaration. The
review introduced a number of deregulation procedures and
clarified some significant market positions in the connectivity
sector for businesses (leased lines, Ethernet, etc). A further
consultation on the controls of the costs relating to specific
BT products was also published in December.
REPORT ON OPERATIONS
26