Notice under Section 12(2) of the Telecommunications Act 1984

PROPOSED MODIFICATION OF CONDITION 15 IN THE LICENCES OF AT&T GLOBAL NETWORK SERVICES (UK) B.V, COMPANHIA PORTUGUESA RADIO MARCONI S.A, EUROCALL LIMITED, FIBERNET U.K. LIMITED AND T-SYSTEMS LIMITED.

1. The Director General of Telecommunications (the “Director”) in accordance with section 12 (2) of the Telecommunications Act 1984 as amended by the Electronic Communications Act 2000 (the “Act”) hereby gives notice that he proposes to make modifications to the telecommunications licences granted by the Secretary of State for Trade and Industry (the “Secretary of State”) under section 7 of the Act to AT&T Global Network Services (U.K.) B.V. on 15th March 2002, to Companhia Portuguesa Radio Marconi S.A. on 8th April 2002, to Eurocall Limited on 12th March 2002, to Fibernet U.K. Limited on 12th March 2002 and to T- Systems Limited on 8th April 2002, which the Secretary of State has designated by order under section 9 of the Act as having public telecommunications systems, collectively referred to hereinafter as the “Licences”.

2. The Licences which the Director proposes to modify were granted by the Secretary of State for Trade and Industry on dates after the statutory public consultation to modify Condition 15 of all Public Telecommunications Operator (PTO) licences had commenced on 15th February 2002, but before those modifications were made by the Director and therefore could not be included in the previous modifications exercise.

3. The effect of the modifications, which the Director proposes to make, is set out in the Schedule below.

4. The main reason for the proposed modifications is to reduce from 12 months to 90 days the period that has to elapse after the publication of an interface specification before an operator may make services available through that interface. In addition, there are three modifications the reasons for which are to clarify the application of Condition 15 or its equivalent in the Licences and to ensure consistency with the other Licence conditions. The reasons are more particularly set out in the Explanatory Memorandum entitled “Explanatory Memorandum for Section 12 Modification to Licence Condition 15 or its equivalent”.

5. 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.

6. In the opinion of the Director, the proposed modifications to the Licenses are deregulatory within the meaning of section 12A (7) of the Act for the reasons set out in the Explanatory Memorandum.

7. The consultation procedure comprises two stages. In the first stage, representations on or objections to the proposed modifications may be made to: Frank Phillips , OFTEL, 50 Ludgate Hill, London, EC4M 7JJ (telephone 020 7634 8871, e-mail frank.phillips@oftel.gov.uk) by no later than 30th of September 2002.

8. 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.

9. In the second stage, interested parties are invited to send comments to Frank Phillips, details as above, by no later than 14th of October 2002, on representations or objections received in the first stage.

10. Any representations against the proposed modifications must be accompanied by a written statement that they are to be taken as objections to the modifications.

11. Copies of the full text of the proposed modifications and the Explanatory Memorandum, and a full list of licences affected, can be obtained from Gabrielle Dakhama at the above address (telephone 020 7634 8735, e-mail gabrielle.dakhama@oftel.gov.uk ). Copies can also be obtained from Oftel’s website.