BT 2000 Annual Report Download - page 22

Annual report and Form 20-F 21
however, key issues are the same, such as regulatory
control over the incumbent and charges for interconnection
and international access.
BT has worked within each regulatory regime to
ensure market access for its international services and for
Concert. These are available in all key markets, such as
Japan, Australia, China, Hong Kong and India, with more
markets added each month.
Rest of the world
The World Trade Organisation's Agreement on Basic
Telecommunications signed in February 1997 created a
framework for the progressive opening of telecommunications
markets in accordance with world trade standards. The
agreement provides assurance that commitments made by the
69 participating nations can be legally enforced. However, the
commitments themselves provide only limited opportunities
in some markets. Detailed implementation schedules are
required in many of those countries in which BT has an
interest. A further round of World Trade Organisation
negotiations on services is due to start later in 2000, although
the timetable for its completion is unclear.
Other signi®cant changes and issues
Local loop unbundling
During 1999, Oftel issued two consultation documents to
assess the demand for and the potential for competitive
supply of broadband services. Oftel issued a policy
statement in November 1999. Oftel concluded that, in view
of the demand for broadband and BT's position in the local
access market, BT's copper local loops should be
unbundled. In April 2000, BT consented to a modi¢cation
to its Licence to require such unbundling, which involves
giving competing operators use of the lines connecting
BT's local exchanges to its customers.
The modi¢cation is due to take e¡ect in July 2001. The
policy will be subject to a comprehensive review in 2005
and at two-yearly intervals after that.
Carrier pre-selection
From 1 January 2000, the European Commission required
the availability of carrier pre-selection (CPS) from operators
with signi¢cant market power and number portability at a
¢xed location between all ¢xed-network operators. CPS
allows customers to opt for certain classes of calls to be
carried by an operator selected in advance without having
to dial additional access codes.
In order to comply with the European Commission
directive, BT was required to provide facilities for CPS
from 1 April 2000. Because software changes to BT's local
exchanges cannot be achieved before January 2001 (for
national and international calls) and January 2002 (for all
other calls), it will be provided in the interim by means of
auto-diallers on customers' premises. BT is appealing to
the courts against a determination by Oftel of the
contribution it must make towards the cost of auto-diallers.
HM Government's review of telecommunications and
broadcasting regulation
HM Government has initiated a review of
telecommunications and broadcasting regulation.
HM Government stated it would publish a White Paper
later in 2000 proposing regulatory reform concerning the
convergence of the communications industries. Measures
to change the telecommunications industry regulatory
framework, formerly the subject of the Utilities Bill, are
expected to fall within the scope of the White Paper. The
White Paper is also expected to cover areas such as future
regulation of broadcast content, media ownership rules and
the role of public service broadcasting.
Mobile services
BT Cellnet operates under its own Mobile Public
Telecommunications Operators licence that authorises
provision of a range of mobile telecommunications services.
The Director General has decided that BT Cellnet
and Vodafone AirTouch have ``market in£uence''. As
a result, BT Cellnet and Vodafone AirTouch have to
allow service providers to access their networks on
non-discriminatory terms.
As a pre-condition to eligibility for bidding in the
third generation (3G) licence auction, BT Cellnet and other
existing second generation (2G) mobile operators were
required to agree to amendments to their licences to
incorporate a `roaming condition'. This obliges 2G
operators to allow the one new 3G entrant to roam onto
their network. The condition will come into e¡ect once this
new entrant has rolled out its network in a geographic area
where at least 20 per cent of the UK population live.
Operators will be expected to negotiate a roaming
agreement. If they are unable to agree, the matter may
be referred to the Director General for resolution. The
condition will remain in force until 2009.
Universal service
During 1999, BT responded to Oftel's consultation on BT's
Universal Service Obligation (USO). BT endorses Oftel's
suggestion that at this point BT's USO should not be