NOTICE UNDER SECTION 12(2) OF THE TELECOMMUNICATIONS ACT 1984

PROPOSED MODIFICATIONS OF THE LICENCE OF BRITISH TELECOMMUNICATIONS PLC

The Director General of Telecommunications (“the Director”) in accordance with section 12(2) of the Telecommunications Act 1984 (“the Act”) hereby gives notice that he proposes to make modifications to the licence granted to British Telecommunications plc (“BT”) on 22nd June 1984 (“the Licence”). The effect of the modifications which the Director proposes to make is set out in the Schedule below. The purpose of the modifications is to facilitate competition in the provision of higher bandwidth access and also make a necessary change to the wording of Condition 78, which concerns the Licensee’s accounting and reporting arrangements. A fuller description of the reasons for and the effect of the proposed modifications are set out in the statement issued by the Director on 30th November 1999 entitled Access to Bandwidth: Delivering Competition for the Information Age. The Director is required by section 12(2) of the Act to consider any representations or objections which are duly made and not withdrawn. The consultation procedure comprises two stages. In the first stage, representations on or objections to the proposed modifications may be made to: Gwen Morgan, OFTEL, 50 Ludgate Hill, London EC4M 7JJ (telephone 020 7634 8732, e-mail gwen.morgan@oftel.gov.uk) by no later than 7th April 2000. Any confidential information should be clearly marked as such and separated out into a confidential annex. All representations or objections received by OFTEL, with the exception of material marked confidential, will be made available for inspection in OFTEL’s Research and Intelligence Unit. In the second stage, interested parties are invited to send comments to Gwen Morgan, details as above, by no later than 25th April 2000, on representations or objections received in the first stage. Copies of the full text of the proposed modifications can be obtained from Julia Bradford at the above address (telephone 020 7634 8838, e-mail julia.bradford@oftel.gov.uk). Copies can also be obtained from OFTEL’s website at www.oftel.gov.uk. Schedule 1. It is proposed to modify the Licence to insert a new condition 83 (“the Condition”) which will require BT to provide other operators with unbundled access to its local loops and with co-location facilities. 2. In summary, the Condition will provide that: 2.1 BT must provide Operators with a Metallic Path Facility (as defined in the Condition) and other necessary services 2.2 BT must offer to provide Operators with Co-location (as defined in the Condition) and other necessary services 2.3 the Director will be able to set the price at which BT must provide its Metallic Path Facilities 2.4 the Director will be able to resolve disputes relating to all of the services offered under the Condition 2.5 there will be regular reviews of the provisions of the Condition 3. In addition, it is proposed to modify Condition 78.1 to clarify that that Condition will apply to Condition 83.