Imposing access obligations under the new EU directives

BT's response to Oftel's consultative document of 05.07.02 - "Imposing access obligations under the new EU directives"

Download full response in PDF format.

Download Appendix 1 in PDF format.

Download Appendix 2 in PDF format.

Download Appendix 3 in PDF format.

Download appendix 4 in PDF format.

Preface

BT believes that access obligations associated with the Access & Interconnection Directive will be one of the most important issues in the implementation of the new EU regulatory regime.  In particular, the imperatives of encouraging investment, risk-taking and moving to the application of competition law will be critical for the future of electronic communications services in the UK. 

As OFTEL acknowledges, the UK is particularly well advanced in the development of infrastructure competition.  BT believes this policy must continue - competing networks offer real diversity of choice for consumers.

The industry is on the cusp of introducing new technologies which will greatly widen consumers' choice of services.  Those prepared to take significant risks making these investments should reasonably be able to make returns above their cost of capital; successful investments need to compensate where expectations do not materialise.  Pricing flexibility at all levels will be essential.

In our view, regulation needs to be focused on encouraging innovation and not be oriented to notions of idealised industrial structures.  A major study recently undertaken for the OFT/DTI/OFTEL by leading consultants  advocates a shift in direction for regulators to recognise the nature of the 'new economy'.  Regulation should primarily be focused on conduct and not on the elimination of temporary market power as an end in its own right.

BT has commissioned two studies prepared by leading UK experts in the field of business economics and competition law which are attached to our submission.  They have been written as self-standing Papers but are also drawn upon in our response.

We would strongly encourage OFTEL to facilitate an open industry dialogue on this subject over the coming months; there are many issues which will need resolution.  Such a forum can only assist all parties to appreciate the likely impact of the change in the EU-wide regulatory regime where a harmonised approach is very desirable.

BT welcomes comments on this submission which should be addressed to:

Paul Richards,
Regulatory Affairs Department,
Room 5.03
Dowgate Hill House,
14-16 Dowgate Hill
London EC4R 2SU.

Phone 020 7728 4107
email paul.2.richards@bt.com;