Changes to General Conditions and Universal Service Conditions

Summary

Executive Summary

Implementation of the revised EU Framework

1.1 We are consulting on the changes we need to make to certain General Conditions ('GCs') and Universal Service Conditions ('USCs') to implement the revised EU electronic communications framework in the UK. These changes need to be made by 25 May 2011 as this is the deadline for transposition into national law.

1.2 The Department for Business, Innovation and Skills (BIS) issued a consultation on 13 September 2010 setting out its approach to making legislative amendments to the UK Communications Act 2003 ('the Act'), the Wireless and Telegraphy Act (2006) and the Privacy and Electronic Communications Regulations (2003), in order to implement the new Framework . Some of the changes to the GCs set out in this document depend upon these anticipated alterations to the legal framework. We are working closely with the Government and will take into account any changes to the legal context, which follow its consultation.

The GCs and USCs

1.3 The GCs apply in the main to Communications Providers ('CPs'). There are currently 24 GCs and the applicability of particular conditions varies depending on the type of network or service a CP is providing.

1.4 The USCs apply only to BT and to Kingston Communications. They ensure that basic fixed line telecoms services are available at an affordable price to citizens across the UK.

Changes to the conditions

1.5 In all cases, the changes have to be transposed in accordance with the revised Directives. Many of the required modifications to the GCs and USCs are fairly minor, such as small changes to definitions in specific conditions. In these cases we set out the amendment we have to make and describe any likely impacts where we can.

1.6 In other cases, the changes are more significant and Ofcom may have discretion as to how the revised requirements in the revised Directives are implemented. Where this is the case, the changes are explained in more detail and, where appropriate, a detailed impact assessment is set out.

1.7 There are more substantive proposals relating to the following GCs:

• GC9 Requirement to offer contracts with minimum terms - requirements relating to the provision of additional information, the length of contracts and the conditions for termination;
• GC15 Special Measures for End-Users with disabilities - to help promote equivalent access to emergency services we propose a requirement to provide emergency SMS; and
• GC18 Number portability - requirement to port numbers within one working day and to put in place a porting compensation scheme.

Number portability

1.8 The amended Universal Service Directive requires that, where subscribers have concluded an agreement to port a number to a new undertaking, they shall have their number activated within one working day (Article 30 (4)).

1.9 For fixed numbers, we propose that port activation should take place within one working day from when a subscriber's 'new' provider requests activation from the subscriber's existing provider. This is in effect when porting can actually take place - in that the necessary consumer protection measures and any physical line provisioning have been completed. This is likely to require limited changes to the current fixed porting arrangements.

1.10 We already set out a one working day requirement on the porting of non-bulk mobile numbers in a statement last year. This change will come into effect on 11 April 2011. We now propose that the same requirement apply to bulk mobile ports. This will mean the 'one working day' timetable for bulk mobile ports will start when a subscriber gives their PAC to their new provider .

1.11 Also, CPs must have compensation schemes in place by 25 May which provide reasonable compensation to subscribers following any porting delay or abuse. We propose that CPs are able to design the details of the scheme themselves taking on board the guidance we have set out in this document. Any compensation disputes will be considered either by the ADR Schemes (where it involves consumer and small business ports) or the courts.

Equivalent access to emergency services - emergency SMS

1.12 The new Framework requires access to emergency services via 112 (and in the UK, 999 as the national emergency call number) for disabled people to be "equivalent to that enjoyed by other end-users". We believe the provision of an emergency SMS service to 112/999 is appropriate to help promote such equivalence for disabled end-users. Access to emergency SMS is provided currently on a voluntary basis and we propose requiring CPs to provide access to the service to ensure that the service is maintained and that the requirement for equivalence continues to be met.

Contract terms

1.13 The key changes to GC9, relating to contracts are:

• CPs will have to provide additional information to consumers and also make this information available to other end-users on request;
• the maximum duration of initial consumer contracts will be 2 years; and users generally must be offered an option to contract for the provision of public electronic communication services for a maximum duration of 12 months;
• subscribers must be able to withdraw from contracts penalty-free following a notice of contract modifications; and
• contract termination conditions and procedures for termination must not act as a disincentive to end-users from switching their providers.

Next steps

1.14 Our consultation will last for six weeks given that many of our proposals to revise the GCs and USCs involve minor changes and also because in many cases we have little discretion in terms of implementing the Framework requirements.

1.15 Following consideration of stakeholder responses, we will issue our statement ahead of the 25 May 2011 deadline for transposition.