British Telecommunications Plc

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

PROPOSED MODIFICATION TO PUBLIC TELECOMMUNICATIONS OPERATOR LICENCE FOR BRITISH TELECOMMUNICATIONS PLC

1. The Director General of Telecommunications (the “Director”) in accordance with section 12(2) of the Telecommunications Act 1984 (“the Act”), as amended by the Electronic Communications Act 2000, hereby gives notice that he proposes to make modifications to the licence granted on 22nd June 1984, under section 7 of the Act, to British Telecommunications Plc (BT). 2. The effect and reasons for the modifications, which the Director proposes to make, are set out in the Schedule below and the draft modification instrument. 3. Section 12A(7) of the Act provides that a modification is deregulatory if— (a) the effect of the conditions to be modified is to impose a burden affecting the holder of the licence in which those conditions are included; (b) the modification would remove or reduce the burden without removing any necessary protection; and (c) the modification is such that no person holding a licence granted under section 7 (of the Act) to a particular person would be unduly disadvantaged by the modification in competing with the holder of the licence in which those conditions are included. 4. In the opinion of the Director, the proposed modification of the PTO licences is deregulatory within the meaning of section 12A(7) for the reasons set out in the Schedule below. 5. The consultation procedure comprises two stages. In the first stage, representations on or objections to the proposed modification may be made to Michael Knowles, OFTEL, 50 Ludgate Hill, London EC4M 7JJ (telephone 020 7634 8706, e-mail michael.knowles@oftel.gov.uk by no later than 9th March 2001. 6. Any confidential information should be clearly marked as such and separated out into a confidential annex. All representations received by OFTEL, with the exception of material marked confidential, will be made available for inspection in OFTEL’s Research and Intelligence Unit and may be published. 7. In the second stage, interested parties are invited to send comments to Michael Knowles, details as above, by no later than 23rd March 2001, on representations or objections received in the first stage. Appointments to view written comments in, which must be made in advance, can be arranged by contacting OFTEL’s Research and Intelligence Unit on 020 7634 8761. 8. Copies of the proposed modification, can also be obtained from Michael Knowles, and OFTEL’s Statement (title and date) is also available on OFTEL’s website at www.oftel.gov.uk. Schedule 1. Conditions 76 and 77 would be removed from BT’s licence. 2. Conditions 76 and 77 place a burden on BT. 3.  Condition 76 . The financial position of the Systems Business and the Apparatus Business prepared under the terms of this Condition is less relevant for regulatory purposes than when originally implemented. Director believes that appropriate use of his general information gathering powers and Condition 78 are adequate to meet any shortfall of information previously provided by Condition 76. 4.  Condition 77.  BT will continue to be required to prepare Current Cost Accounts under Condition 78. However, the high level Current Cost Accounts prepared under Condition 77 are now less relevant and do not provide the level of granularity required for regulatory purposes. 5. The Director considers that the modifications would remove a burden from BT, without removing any necessary protection, which is covered by his information gathering powers and Condition 78. 6. The Director also considers that the modifications do not unduly disadvantage any other person holding a licence granted under section 7, in competing with BT. 7. The Director is of the opinion that these modifications are deregulatory within the meaning of section 12A(7) of the Act.