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

PROPOSED MODIFICATION OF THE LICENCE OF CONCERT COMMUNICATIONS COMPANY

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 licence granted to Concert Communications Company (“Concert”) on 18th December 1996 (“the Licence”). 2. The Director proposes to make the modifications described in the Schedule below (“the Schedule”), the effect of which is to insert additional conditions in the Licence. The reason for the proposed modifications is to maintain continuity in the regulatory regime applicable to certain international services which, it is proposed, Concert will take over from BT following the creation of an international joint venture between BT and AT&T. In particular, the Director wishes to ensure that interconnecting operators do not sustain a reduction in their legal rights under the current regime due to run until 1st October 2001, due to a change in the legal entity providing international services. The Director also wishes to ensure that he has access to sufficient information to enable him to carry out his statutory duties. A fuller description of the effect of the additional conditions is set out in the OFTEL Consultative Document entitled “BT/AT & T Proposed Joint Venture”, which is available from OFTEL’s Research & Intelligence Unit (at the same address given in paragraph 4 below). 3. The Director is required by section 12(2) of the Act to consider any representations or objections, which are duly made and not withdrawn. Subject to such considerations and the consent of the Licensee, the Director proposes to make the modifications as soon as practicable after the statutory consultation is completed, in the event that the proposed joint venture has by then acquired control of Concert. 4. The consultation procedure comprises two stages. In the first stage, representations on or objections to the proposed modifications may be made to Dilbinder Dhillon, OFTEL, 50 Ludgate Hill, London EC4M 7JJ (telephone 0171 634 8838, fax 0171 634 8847) by no later than 2nd July 1999. 5. Any confidential material should be clearly marked as such and separated out into a confidential annex. All representations and objections received by OFTEL, with the exception of material marked confidential, will be made available for inspection in OFTEL’s Research & Intelligence Unit. Comments on this document (if they are relatively short) can also be sent to OFTEL at the following e-mail address: press.office.oftel@gtnet.gov.uk. 6. In the second stage of consultation, interested parties will be invited to send comments to OFTEL no later than 16th July 1999 on the representations and objections received in the first stage. Schedule It is proposed to insert the following conditions: (i) Quality of Service (ii) Interconnection (iii) Accounting Separation, together with a number of additional definitions flowing from the inserting of these conditions. There will also be some minor and consequential amendments. The full text of these conditions is contained in the OFTEL Consultative Document referred to at paragraph 2 above.