Implementing the new Directives

12 March 2002

Policy Focus Group

Agenda

• Introduction - Jim Niblett

• Overview - Heather Clayton

• Implementation– Transposition - John Arnott– Oftel’s work - Heather Clayton– Market reviews - Elaine Axby

• Discussion / Q&As

The new EU Directives

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

Framework

Access andinterconnection

Universal service

Authorisation

Data protection

Not forgetting...

Entry into force

Early 2002

Oftel carries out market reviews, prepares SMP designationsand specific obligations ready for the “big bang” day

Early summer 2003

Directives transposedinto national law

Consultation on the new general conditions

Consultation on transposing the new Directives

Spring 2002 Early 2003

The new EU Directives

Implementation activities

Transposition (DTI)

Preparing the new general conditions

Mapping the old regime to the new regime

Adjusting Oftel’s processes

Market reviews

Training and communications

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.

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.

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.

Mapping the old regime to the new regime

Licenceconditions

USO

Consents, orders,determinations

Generalconditions

Specific SMPconditions

Interconnectionobligations 5(1)

Carry over

USO

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)

Adjusting Oftel’s 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

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

Training and communications

• Internal

Team briefs - raise awareness January

Structured workshops March Operations boardImplementation project managers

Lunchtime seminars April/May/June OverviewMarket reviewsGeneral conditionsDispute resolution etc etc

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

EU Market Review Programme

Elaine Axby

12th March 2002

Agenda

• requirements of the new regime

• progress to date

• key issues

• next steps

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

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

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

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

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

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